There are two main criteria for which you should program rules and they are: entry to the market and exit from the market or its stop. You can use a large number of indicators to time your trades, but in an automatic trading system, you should use as few as possible and here I will show you how to build a 1-rule system simply based on the volatility of trades.

A very simple system would be one based on the standard deviation (volatility) of the price. The Bollinger Band, for example, shows a mean average band and the two outer lines are one standard deviation from the norm or average, as volatility increases, the bands widen beyond the average. You can easily build a simple volatility system with your own setup, so here’s what to do.

You would have to decide on a midline moving average to start. This is where prices will find support in a bull market and resistance in a bear market. A buy signal would be generated (and held) in a bull market when the average is reached, the outer lower band would provide the stop level.

What you need to do is try various moving averages and standard deviation settings for the outer bands, but this is easy to do with current software. So you would need to decide on a currency spread to trade and test it over time to see how successful it is; because it only has one rule, it will show a realistic performance test.

The logic of the above system is easy to understand and below you will find out how to generate a buy signal and stop in a bull market.

In a strong uptrend, prices can move away from an average price, but will usually find support against the average. If volatility drives prices through the middle band to the lower outer band, the supply and demand situation is probably turning from bullish to bearish and a stop can be placed.

You have to do a bit of research and you can add additional filters if you want, but a volatility-based system if trading on a margin of uncorrelated contracts will work (they very rarely work on a single contract).

I’ve seen people make huge profits with simple automated systems and you can too. Sure you have to spend some time researching and testing and also as with any long-term trading system, but if you work a bit you can easily build your own automatic Forex trading system and make big profits in less than 30 minutes. per day.