Revealing the Forex H-system
January 31, 2007 by Trader Rich
I've contemplated introducing everyone to my trading system because it's just so easy but I never do because I don't want to be responsible for losing trader's money. It's also a system that has definitely been used by others in either its current incarnation or some modified version of it. As I close out the month of January with another H-system win; the system produced 10 wins and only 2 loses this month; I wonder if my success with this system has my thinking skewed. Is it really as easy as this? Since I've started tracking this system's individual performance, I've had the following success:
- September 2006 +294 pips
- October 2006 +279 pips
- November 2006 -28 pips
- December 2006 +61 pips
- January 2006 +467 pips
These results are produced with a trading system that produces a 1:1 reward/risk most of the time. Most people would reject this system on this fact alone. Believe me, I've tried to get more reward out of it but most of the time this trades during the European session (I'm asleep) and I can't squeeze more out of it because I'm not there to do it.
I think that having a very simple system where I follow a simple set a rules is the way to go. I do truly believe this but I should also note that I haven't been able to find another simple system in addition to the h-system. So is it really that simple? The system is simple but finding out if it was viable was not. It took a lot of time and effort. Everyday, I learn a little more about it that may assist in making the system more successful. I do think that profiting from trading can be this easy as long as you keep certain things in check like fear and greed. Emotional or impulsive trading can really knock you off track and can ruin your entire plan in an instant. I really don't know what more there is to trading than this. I have a simple strategy, I follow the strategy taking my gains and losses sometimes consecutively, I try not to let fear or greed enter my mind, and in the end I'm profitable. Is it wrong for me to think that people over complicate trading? I haven't been doing this long enough to come to this conclusion just yet. I could have 3 consecutive losing months with this system and my entire way of thinking could change.
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I’d be interested in seeing your system. I don’t think you would be responsible for others losing money if they began to use your system. Ultimately, trading always come down to an individuals choice. If they choose to trade using a certain system, they bear the responsibility of that decision, not you.
You’re right in that people probably over complicate trading. MA cross systems can be quite profitable and that’s about as simple as it gets. I’m convinced that making forecasts is probably the easiest part of trading. The hard parts are discipline and position management.