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2. show proof for two trading patterns: past and present. If a system doesn't work on past data, it will probably fail on present data. Furthermore, a system may work for past patterns, but it does not work any more because of different market conditions or regulation. Good systems must be up-to-date. #2 - Reason All Forex systems need a reason. Although the Forex market is made of over 95% speculation, there are some recognizable trends that can be used to create profits from trading. The "reason" part of the system can be a bit obscure because of different interpretations to the same indicator or pattern, but as long as the system seems reasonable, it has a good chance of working. #3 - Ability to work under all (or most) market conditions The currency market, like any other financial market, changes very rapidly. Prices of currencies change every second, and a new trend may develop in a matter of minutes. A good system needs to be able to determine the different market conditions and give the right action to perform - buying, selling, or taking another currency pair. A system that works on only one market direction may become completely useless when the trend changes. #4 - Good technical support The best sign of a good Forex trading system is a good technical support behind it. Most scam trading systems have no technical support - the creator just sells the system and runs away. If a currency trading system has a good technical support behind it, it's a sign that the creator of the system is willing to stand behind his work and that he is serious.