Many forex traders want to use forex trading robots and buy them off the net but there is a free one we are going to look at here which, makes big profits and will beat most of the sold ones and it won't cost you a cent.
The 4 Week Rule was originally devised to trade commodities by the Richard Donchian who is considered the grandfather of modern trend following. This forex trading robot is simplicity itself just one rule:
Cover any short positions and go long when a price exceeds the highs of the previous 4 calendar weeks. Cover any long positions and go short when a price falls below the lows of the previous 4 calendar weeks.
How simple is that?
Very, but don't think because its simple it doesn't work – run it across any currency and look at a forex chart and you will see it does.
It's really a simple breakout system and will get you on the side of every major trend.
There is a downside though – if the market doesn't trend, it can get whipped in and out in these situations however, you can combat this by adjusting the exit rule.
A very simple way to cut drawdown is to exit on a shorter time scale – say a 1 or 2 week low or high and you can also consider exiting with a moving average.
Long term, this system works and will continue to work, as currencies always trend and are unlikely to stop trending.
Most traders though won't consider using this system for the following reasons:
– Its to simple – traders seem anti simplicity even though it works!
– There are not many trading signals, so it doesn't suit the action man trader.
– Its not trendy – it doesn't quite have the ring about it, of a system based on expert or artificial intelligence technology.
– It's not fussy about pinpoint timing. Most traders are obsessed with trying to predict market price (even though you cant) while this one simply reacts.
It makes money and that's the real test of any forex robot. Some of the top traders in the world have used it, such as Richard Dennis so, if it's good enough for him, it's certainly good enough for you and me.
If you use the 4 Week Rule and follow it with discipline, you can add an extra dimension to your forex trading strategy. If you are thinking of buying a robot then this one is more than likely to beat it and it's free.
Most of the forex trading robots sold online come with simulated, made up track records all done in hindsight only and no real trading; the 4 Week rule however comes with a pedigree.
So there you have it, a free forex robot that actually works and you can use to make forex profits. As the song goes “the best things in life are free” and in terms of forex robots the song is very apt.