It can be very difficult trying to find a forex trading system that is able to generate consistent profits on a long-term basis. However an important point to make is that you don’t necessarily need to find a system that trades lots of positions every day in order to become a highly profitable forex trader.
You will often find that a system that identifies high probability trades just once or twice a week can be equally as profitable as a system that produces tens or even hundreds of trading positions every week. This is what I mean when I say that sometimes less is more.
It’s so much easier to become a consistent trader if you filter out all the trades to only include those that have the highest chance of success. Often this will involve trading the longer time frames because it’s hard to be confident about set-ups on the 1 or 5 minute charts, for example. You will often find that technical analysis works so much better trading the longer time frames such as the 1 hour and 4 hour charts, for instance, because they filter out a lot of the smaller random price moves that take place throughout the day.
I used to spend hours and hours testing different strategies on the 5 minute charts, but over the years I’ve come to realise that it’s so much easier just to focus on the 4 hour charts and daily charts because the trends are so much more clearer and easier to trade. Now I mainly trade my own unique system which generally tends to identify between 1 and 3 good set-ups every week, but these set-ups, when they do occur, are usually extremely profitable.
This is my preferred way of trading because it’s relatively stress-free. I know from experience that my system should remain profitable in the long-run and so I just need to sit back and wait for good set-ups to occur. This style of trading isn’t for everyone because you can go a few days without entering a single position, so boredom becomes a factor, but it tends to work well for me.
Anyway the point I want to get across is that you shouldn’t necessarily spend hours and hours focusing on finding a system that generates lots of short-term winning trades. If you expand your time frames and concentrate on the longer term charts, then you will often increase your success rate and generate bigger profits when you do find winning trades because you obviously get larger price moves on the longer time frames.