I have added a new category to the right menu called "Forex Trading Systems."  I'm going to post trading systems as I read about them in books, online, or any other publication.

The definition of a "trading system" is simply a group of specific rules, or parameters, that determine a point of entry or exit.

The purpose of posting trading systems aren't so that you can use this particular system  to make trades but to learn from them and develop a trading system of your own. 

Please feel free to send me any trading systems you know of or comment on trading systems that are posted. 

What are the advantages of a trading system? (Source: Investopedia)

• It takes all emotion out of trading - Emotion is often cited as one of the biggest flaws of individual investors. Investors who are unable to cope with losses second guess their decisions and end up losing money. By strictly following a pre-developed system, system traders can forgo the need to make any decisions: after the system is developed and established, trading by means of the system is not empirical since it is automated. By cutting down on these human inefficiencies, system traders can increase profits.
  
  
• It can save a lot of time - Once an effective system is developed and optimized, there is little to no effort necessary on the part of the trader. Computers are often used to automate not only the signal generation, but also the actual trading, so the trader is freed from spending time on analysis and making trades.
  
  
• It’s easy if you let others do it for you - Need all of the work done for you? Some companies sell trading systems that they have developed. Other companies will give you the signals generated by their internal trading systems for a monthly fee. Be careful, though--many of these companies are fraudulent. Take a close look at when the results they boast about were taken. After all, it’s easy to win in the past. Look for companies that offer a trial, which lets you test out the system in real-time.