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A trader doesn't have a specific trading system - what to do

A trader doesn't have a specific trading system - what to do

A trading system is a trading algorithm that is predetermined by a trader. If a trader does not have a specific trading system, then he cannot be a trader. What is included in the trading system?


1) The first thing that traders should remember is what movements they plan to take: on the trend or against it. Why is it important? Human perception has some limitations. If we follow the trend, then all our entries will be in the main movement. But if we work against the trend, then our movements will be short, against the crowd. But if we simultaneously catch movements in both directions, then we will not be able to realize ourselves in both situations. I remember the folk wisdom: “you will chase two hares, only an elk (stop) and you will catch!”. If you, like Julius Caesar, can do three things at once, then please take both directions: both the trend and the trend. But if you do not have much talent, decide strictly in which direction your trading system will be. You cannot go beyond the scope of this decision. But if you have a trading community, then this is another matter. You are working in a trend, but your colleagues are against it. Team discussion enhances overall results.


2) What indicators and tools will you use. A comfort zone is formed here. There are tools that annoy and if you don't like it, exclude them or replace them with alternative ones. For example, you catch convergence and divergence on the Stochastic indicator - a very popular indicator, but it can annoy you personally. You can replace it with MACD or AO. If the trend line annoys you, you can replace it with a moving average, choosing a range that is convenient for you.


3) There are arguments for entry in any trade system, i.e. confirmation signals. Decide for yourself when you enter the deal. After breaking through the levels or the signal of the adviser. Our entry must always have validity. Therefore, what will be our launch for opening a deal. For some, this is a break through the “zig-zag” indicator. For someone, a deep correction to level 38. For example, “stochastic” shows that a reversal is nearing and it is in zone 80. Based on only these data, it is impossible to draw conclusions and enter into a deal. Therefore, someone uses a “zig-zag,” a reversal advisor. From the foregoing, I want to summarize - any entry into the transaction should be based on 3 or more signals.


4) When we formed a trading algorithm with, we need to run it on a demo account. If everything works for us, we can open a cent account. And if there was success, then switch to real momentum.


All traders have a trading strategy. It is a network of memorized rules and tools that you cannot go beyond. If we decide to change something in our already profitable trading strategy, you cannot change the algorithm on real money. Switch to a cent account and experiment for months. But never experiment with real accounts. Real accounts are not for games, and some of our new best practices should be tested. There is no room for experimentation on the market! The market does not forgive mistakes!















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