While there has been a huge rise in the number of cheap FX trading robots sold online, the one enclosed will beat them all and best of all its a free trading system anyone can use and apply. Let's take a look at this profitable Forex trading system in more detail.

The problem with most of the automatic FX trading systems sold online is - they have never made any money in real time and have no audit of results. You will see hundreds of them for sale, all telling you that you can make huge gains with low draw down and they cost around $200 or less and they all lose money..

Why Most FX Trading Systems Don't Work

These systems never have audited track records and are based on simulations going backwards knowing all the closing prices! This is so easy a child could do it. Some vendors publish what they say are live results but there is never any audit of gains. The fact is these systems are so cheap because they don't make any money!

The system we are going to look at now, has been making gains since the 1970s and its as profitable as it ever was – so lets look at this free FX trading system in more detail

Designed By a True Trading Legend

The system we are going to look at is called the 4 Week Rule by Richard Donchian who is considered the grandfather of modern trend following and this system, his trading rules and his channel analysis, are essential trading education for all traders.

Based on Timeless Logic

The system is based on breakout trading which is a timeless way to make money, as all big trends start and continue there trends from breakouts. In addition, the system trades the long term big trends rather than trading the noise of the market which means, you send less time on your trading signals and pay less commission.

The System Rule

The System only has one rule and here it is:

Buy a currency when it breaks to a 4 week high and hold onto the position – wait for a 4 week low to be hit and reverse the long position to a short one. Simply then, keep reversing, as new 4 week highs and lows are hit and that's the system! A simple system?

Yes it's very simple but all the best trading systems are, make a system to complex and it will have to many elements to break. This system is simple and robust and makes a lot of money if you trade it long term.

Stop Filters

Some traders like to use a filter once in the market and use stops at 1 or 2 week moving averages and then go flat, until the next 4 week high or low is made to smooth the equity curve. Which ever way you use the system, it has been profitable for over 30 years and will never go out of date as long as currencies trend it will make money.

Final Words

Its not often you get something for free which makes money but this system does and savvy traders have been using it for decades to help them enjoy Forex trading success. While Richard Donchian is now sadly deceased, he has left us a great free FX trading system to enjoy. Check out the 4 Week rule in more detail and make it part of your FX trading strategy for bigger profits.