Designing a Trading System

Here are some of the key factors to keep in mind when designing a trading system in the
FOREX:

1. The liquidity and the volume in the Forex market is huge, therefore making trading
systems more accurate and effective.

2. Most brokers do not charge commissions in this market, only spreads Therefore, it's
much easier to make many transactions without increasing costs. Some brokers offer a
very low pip spread.

3. Compared to the amount of equities or commodities available, the number of
currencies to trade is limited. But because of the availability of 'exotic currency
pairs'--that is, currencies from smaller countries--the range is not limited.

4. The main trading systems used in FOREX are those that follow trends (a popular
saying in the market is "the trend is your friend"), or systems that buy or sell on
breakouts. This is because economic indicators often cause large price movements at one
time.

5. A good quality charting package, I use the eSignal and would highly recommend this
package to any readers.