2Bull Forex Blog

If you want to buy a mechanical forex trading system there are plenty on the net that you can buy but 99% of them don’t work as they have never been traded and come with simulated track records. On the other hand, you can use this free one which is simple and profitable.

The trading system we are going to look at is incredibly simple but don’t assume that just because it’s simple it doesn’t work - it does. You can make big profits with it by incorporating it in to your forex trading strategy.

This system was developed by trading legend Richard Donchian in the late seventies for trading commodities and many traders have used over the years. While it was developed to trade commodities it works well in currency markets because they trend.

The system is called “The four week rule” and it does exactly what its name implies.

Here are the rules:

1. Close short positions and reverse to a long position when a price exceeds the highs of the previous 4 weeks.
2. Close long positions and reverse to a short position when a price falls below the lows of the previous 4 weeks.

That is the system and you couldn’t get simpler than that.

The above will work very well in trending markets but in sideways and consolidating markets it will get chopped, so you can consider using a filter. Enter trades on the 4 week rule - but exit the position on a shorter time period and go flat.

1 or 2 week cycles are ones to consider. You would then simply re enter on the next 4 week signal.

I have used this currency trading system as part of my strategy for years and it works -most traders won’t use it though, despite the fact its proven and it works - Why?

1. It’s too simple.

Most people discount it purely on this, although simple systems always tend to beat complicated ones as they are more robust.

2. It takes discipline to follow, as it is not fussy about exact market timing.

Most traders are obsessed with buying low and selling high (even though it doesn’t work!) so can’t follow it and most traders lack discipline anyway.

3. Its not trendy.

Most forex traders like trendy or mystical systems Fibonacci, Elliot Wave, Neural networks, artificial intelligence etc which are all a bit more glamorous than a system from the seventies, with one parameter.

Make no mistake though, this system beats most on the net that are sold and it’s free!

While it may be simple, keep in mind many famous traders have used it such as, Richard Dennis, the turtles and many more - if it’s good enough for them, it’s good enough for you.

You can of course just use the general principle in your forex trading strategy as a currency trading system it is based on the 4 week cycle of price and you will be surprised at how important it is.

To get diversification you can trade currencies with other markets as well and diversify. For example -the energies and interest rate markets are good trending markets to combine with currencies.

The 4 week rule is free and if you are serious about your forex education, take a look at it and it will help you enjoy forex trading success.

ACM is the most competitive online foreign exchange broker who is accessible from anywhere in the world, no matter whether you are a professional trader or an amateur. They are based in Geneva, Switzerland. Their network is excellent and trustworthy.

ACM Advanced Currency Market is considered as one of the favorite trading platform for forex trading. Traders all over the world find it easy to use, and transparent. ACM provides excellent performance. It is a trader friendly platform and is secure. ACM is built on strong ethics. There is no secrecy in trading and they are very transparent in their action. What ever you say will be taken in a straight forward manner and never reciprocate.

ACM has a dedicated workforce who is willing to help you out at any point in time of your transactions. ACM makes it easy to do forex trading by offering the best, transparent, and uncomplicated execution.
They are very easily accessible to the customers all over the world. They provide you with accurate information about themselves and whatever trade doubts you have. Their method of execution is crystal clear and very efficient.

Forex trading is like any other trading which is meant to create more profit for the dealers. But in ACM, they keep their margin at a lower rate by a larger participation of traders through their excellent net work and user friendly methods.

This is the era of severe marketing strategies by telemarking or conducting seminars to increase the customers to the point of driving them mad. You will never get a call from an ACM executive convincing you to trade with them. ACM executive will call you only if you are asked to be called. They value their customer’s intelligence and their right to privacy.

The foreign exchange market keeps on changing to suit the changing world economy and financial situations. Currency market is no longer the domain of a few high profile bankers or few wealthy individuals. Reforms and globalization make it necessary for a wider participation of even small traders. This makes every forex trading company to be more competitive in every aspect they handle.

ACM fully realizes their responsibility and handles people’s money with the full respect it deserves and makes it a pleasant experience to trade with them. They are the most competitive online forex broker in the world always improves themselves for the betterment of their customers.

The rapport amongst stock exchanges like New York, London, Singapore, Hong Kong, Malaysia and over lapping of trading at all the stock exchanges all around the world has made investors aware of the importance of listings. The internet technology has made stock broker listing an essentialist which cannot be overlooked.

Stock brokers are an indispensable lot for those who have their hands on both the purse and the pulse of the stock market. They represent the parent investor and deal with the changes taking place in stock markets in such a way that investor is safe and sound as far as returns on investments is concerned. They maintain and sustain steady relationship with the investor family.

With the spread of stock market business, investors need to identify brokers in other parts of the world who would represent their clients as if operating from their native country. Also, the local and the resident stock broker could deal with affairs stock exchanges elsewhere in the world at par with local or national conditions.

Listings are essential for investors because it provides choice and independence. Internet has come truly handy with the appropriate stock broker and stock market search box becoming available. It is a “custom search engine” by Google and covers the very best of stock market websites.

The investors can have access to highly customized stock market search results. There would be no need to go through millions of unrelated pages. Stock brokerage listing serves as a tallow page in the directory the investor is free from unwanted hassles and is more organized.

Brokers have their individual skill sets and knack for controlling the stock market. Just as a person has different cooks, tailors, hair dressers, etc to suit individual requirements, an investor also need to seek advice of different stock brokers who have wisdom and experience in guiding investors.

But beware, usually it is not feasible to hire too many brokers to maintain diverse portfolio in different sectors. Thus it is a good idea to look up good stock broking firms from the broker listings available in the local yellow pages or on the internet.

Any stock broker listings and the information provided under it can be created, updated and retained till nine years. It can be refreshed and updated while confining it to a central source. This usually goes well with investors who might have stored brokers information at various sources. Thus keeping information in this manner becomes much unorganized. Moreover, it also poses a risk that the information could be stolen, tampered or affected adversely by any unknown or unexpected circumstances.
Stock broker listings at a centralized place are much safer and efficient manner. The centralized storage data centers are usually equipped with state-of-art technology.

In conclusion, these listings are constantly updated and new entrants are also constantly updated. Thus, if you look up stock brokers for any local area under these listings, you would find more update information rather than digging into your old databases.