Trading is summarized by 2 methods, the subjective method and the rule-based method. Both methods have their merits, however, if you are not a seasoned and successful trader, you should strictly use the rule-based method.
The subjective trading method combines multiple pieces of information to make a trading decision which can’t be precisely defined in rule form. Subjective traders trade based on guidelines and not rules. With an established set of guidelines an expert trader has the flexibility to change a trade when new information is available. In some instances, where a rule-based system may pass on a trade, a subjective based trader may take a trade based on the “feel” for the market. A rule-based system doesn’t have such flexibility.
Unlike the subjective trading method, the rule trading method is simple and, because the rules are specifically predefined, it is mostly stress-free. The predefined rules account for your entry, stop loss, and take profit values among others. All new traders as well as those traders struggling to become profitable should use a rule-based method to refine their trading before ever considering a subjective method.
A rule-based system is designed to “set and forget.” Once your orders are placed, they continue to progress until one of the following happen: you are either stopped out or your target price hits. As a trader, once a trade is placed, you never interfere with it until one of the actions previously mentioned happen. Since all entries are done following a specific predetermined set of rules, these rules must be followed until you exit the trade.
With a system like 1000 Pips Climber, the highly advanced and rigorously tested Forex trading algorithm is already developed and predefined for you. This system will provide you easy-to-follow signals that are very precise and clear. Since the system is ruled based, whenever a signal is produced you enter a trade. This takes away all the guess work and uncertainties of trading. The system does all the analytics for you and gives you clear entry, stop loss, and take profit values. All you need to do is follow the signals that the system produce. You remain fully in control of your trading account and can have the confidence in knowing you are following professional signals generated by a strictly predefined set of rules.
With a rule-based system, there is not guessing of what a trade will look like. Your entry and exit are precisely defined by the predetermined rule and, for that reason, the system can be easily tested for profitability.