Trading Systems

Forex trading systems are the set of algorithms and actions on the basis of technical analysis. Trading systems define the exact time of opening and closing positions, time intervals and risk management. They aim to reduce the factor of emotions when making trading decisions and make trading more systematic.

Classification of Trading Systems

Forex trading systems can be classified according to the following principles:


  • Short term or intraday (carried out during the trading day), when the positions are closed during the trading day or even several seconds (scalping).
  • Medium term: Positions can be hold for several days
  • Long term: The lifetime of positions is from a week to several months.

Level of risk:

  • Conservative (minimum risk)
  • Moderate
  • Aggressive

There are other factors for classifying trading systems, but these are the main ones.

Advantages of Trading Systems

Trading systems have two very important advantages that should be considered when thinking about adopting or not any trading system. First of all, it is a good tool for eliminating emotions that are a problem for the most traders. Emotions do not let make rational trading decisions and sometimes traders end up losing money because of them. Another important advantage is the the time management – trading systems make trading much automated and require no more actions by traders.

To summarize, surely trading systems cannot guarantee profitable trading. However, it makes trading more systematic and creats more favorable trading conditions especially for those traders who are highly sensative towards risks.

IFC Markets is a leading innovative financial company, offering private and corporate investors wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Windows Mobile. The company also offers MetaTrader 4 and MetaTrader 5 trading platforms available on PC, Mac OS, iOS and Android. You may compare the advantages of each platform.

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