If we take a scalping system that makes a median of 20 pips on a profitable trade and loses an average thirty pips on a losing trade, with 80% of its trades being profitable and only 20% losses, this is the edge for this system:
Edge = (80% x 20 pips) – (20% x 30 pips) = 10 pips
That’d be a lucrative system and a very good one to use if you had an interest in turning into a scalper. However, you might find a totally different sort of system that had results that were just as good. For this system,
Edge = (40% x 40) – (60% x 10) = 10 pips
So these two totally different systems have precisely the same results, and the decision on which was the best forex trading system for you’d be totally conditional upon your trading style. A good way to check this out would be to operate both systems in a demo account, say for one month each. At the end of the month you might investigate the theoretical results from a back test over the month to see how your own results varied from the back tests. This would give you an idea of how successful you’d be operating that system in reality. This could be a handy comparison when choosing the best currency trading system from numerous systems that are rewarding in theory..