Forex Trading System

Creating a Trading System

Creating a Trading System http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Creating a trading system in 8 steps.
Step 1: What kind of trader are you. Do you prefer day trading, swing trading or position trading? You need to feel comfortable and be able to achieve your goals.
Step 2: Choose your timeframe. If you are going to day trade you could look at 15 minute charts and hourly charts. If you are going to swing trade you could trade 4 hour charts and daily charts.
Step 3: Identify a trend using price action and moving averages.
Step 4: Confirm the existence of the trend using indicators and maybe a second set of moving averages
Step 5: Define the entry. You need to have a clear set of rules that will determine if you open a position to follow the trend. You can follow trends using dynamic support and resistance, waiting for a pullback, trading fibonacci levels, you can wait for a pinbar, morning start or evening star, trade the break of a high of an uptrend..etc
Step 6: Define the exit (take profit), perhaps a moving average cross, an indicator or a combination of these things.
Step 7: Define your risk using position sizing and a stop loss.
Step 8: Keep records. Make sure to record trading results.

Leave a Reply

Your email address will not be published. Required fields are marked *