Phase 1: Basic version OFS Trading System

You’ve taken the first step by downloading the free e-book of the OFS Trading System, but what will be your next step? What can you expect and how will you be able to obtain the optimum result practicing the OFS Trading System? In this article I’m going to explain to you what realistic expectations you may anticipate when you’re going to start employing the basic version of the OFS Trading System and how you could further develop yourself during this initial phase.

The basis version of the OFS Trading System has been particularly composed for the benefit of beginning forex traders. That doesn’t mean however that more advanced forex traders should straightforward jump into the deep end and should be able to unleash all kinds of variations as well as putting into practice all kinds of applications. As it happens this basic version serves as a foundation for all additions which will be added and when the foundation isn’t sound, it’s no use to keep on building.

Give a man a fish; feed him for a day. Teach a man to fish; feed him for a lifetime

The first logical step consists of reading the free e-book of the OFS Trading System very intensively and accurately. I haven’t just extensively explained the rules, including examples, of the OFS Trading System, but I also considered at length the reasoning behind these rules. The main reason why I used this method is for you to teach yourself being able to judge when a trend is healthy etc. instead of you uncritically following all the rules without really being aware of what you’re engaged in.

“Give a man a fish; feed him for a day. Teach a man to fish; feed him for a lifetime”

Just give this proverb a well-considered thought. Whether you’re getting started with the OFS Trading System or with another forex trading system; it’s quite important that you yourself realize what you’re up to. Following rules made by someone else without you really understanding them, is like walking along a path towards a destiny which sooner or later will be turning out to be a total failure.

So read the e-book thoroughly and see to it that you’ll fully understand how a trend is being assessed, when and why this trend is or isn’t suitable for trading setups, how and why you could effectively use the SMA lines and previous swing highs and lows etc. etc.

The right mindset is the key towards success while practicing forex trading

I cannot emphasize this sufficiently, but the right mindset while practicing forex trading is the key to your success on the long run. For that reason I wrote an extensive series of articles about this subject matters and before you’re going to start to go deeply into the OFS Trading System, it’s even much more important that you thoroughly understand the subject matters as described in the articles on “Online Forex Trading is simple“.

After having read these articles you’ll even better understand the foundation of the OFS Trading System and how you could approach forex trading from the right perspective. Don’t underestimate the importance of this!

Examine the forex trends from the past

After having gone through the basic version of the OFS Trading System and the series of articles on “Online Forex Trading is simple”, it’s important for you to take ample time to thoroughly study the trends from the past. While doing so I advise you to start with examining only the 4 (and higher) hours chart of various currency pairs.

Examine when the setups of the OFS Trading System were successful, but just as well it’s important to examine them when they were not successful. In this case consult the rules of OFS Trading System and try to recognize the patterns.

If you have a clever mind en consequently you’re not going to skip this step, in that case you’ll notice that you’ll rapidly start to gain an insight in the development of a trend. This will not only effect your win ratio, but it’s also an important basis for you to gain more in-depth knowledge of the OFS Trading System.

Indication Win Ratio of the basic version of the OFS Trading System

It’s quite difficult to give an accurate indication about the win ratio of the basic version of the OFS Trading System, as this ratio is dependent on a number of factors. However, if I should have to make an estimation, I would conclude that this ratio should be located between 50% en 60% with a risk/reward ratio which mostly will be lying between the 1:1 and the 1:2, because in this phase you’ll usually using one take profit level.

See to it that your expectations in this phase are not too high for actually the result in the beginning isn’t that important. In this phase you happen to be busy constructing a foundation, during which most of the time should be spent on studying instead of the actual trading itself.

The number of trading setups

As the rules of the basic version of the OFS Trading System are very strict and you’re only trading on the higher timeframes as from the 4 hours chart, you’ll not be often in the market. The number of trade setups depends on the extent of the availability of trends, nevertheless this could differ tremendously from one month to another.

Occasionally there are months during which you’ll have more than 10 trade setups, but on the other hand there are months in between, during which you’ll only be able to find no more than 3 trade setups or even none at all. However I repeat: most of the time during this phase will be filled up by studying instead of actually trading. Those trade setups will surely follow later on.

Conclusion:

See to it that you extensively take your time to be able to pass through all the steps in this phase in the proper way, before you’re going to start gaining more in-depth knowledge about the basic version of the OFS Trading System. If you don’t meet this condition, I guarantee you that you’re either going to give up sooner or later or that at the very best you’ll have to set back a few steps in order to still get the required foundation the way it should be.

In the next article I’ll discuss the way by means of which you’re going to be able to perfect the basic version of the OFS Trading System by looking at the big picture, the market sentiment and the various ways to manage your trades.

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