In our quest to find the most profitable and at the same time for a
"small" trader feasible forex trading system we have tested and
analyzed many different forex trading strategies. The strategies that
we have tested were ranging from simple combinations of TA indicators
to more complex trading systems that were utilizing sup****t/resistance
levels, pivot points, chart patterns etc... However in order to reduce
the number of systems that were later scrutinized more closely, we
have developed our own system selection criteria. Basically the system
that we were after had to have following properties: Simplicity,
Efficiency and Consistency.
As we all know forex trading strategies are becoming more and more
complex and sophisticated. What does it mean for our average
independent forex trader? It means that our simplicity factor when
developing a trading strategy gains in im****tance.
What usage could an average person make from a forex strategy that
requires or presumes a profound knowledge in mathematics at a PhD
level and a computing power beyond that of the newest personal home
computer? A type of highly complex strategies commonly used by
investment companies are neural networks. A neural network is, in
short, a model of interconnected neurons (also known as nodes) that
was inspired by the logical neurons in human nerve system. Like the
human brain a neural network can acquire, store and utilize
experiential knowledge in order to improve its performance day by day.
Regrettably, to consistently use a forex strategy based on neural
networks one requires the complex knowledge of how to feed a neural
network with history data as well as excessively high computing power
not affordable to our average forex trader.
Therefore we have set ourselves with a goal of finding a forex
strategy that is comparable in its profit potential to the most
complex professional trading system and at the same time is feasible
and understandable to our average trader.
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