What is a trading system?And it is - a set of rules used for transactions that (rules) you are strictly enforced, resulting in a passed on to them the lion's share of the responsibility for the result achieved.On the basis of these rules and the decisions will be made on the opening or closing of positions.The presence of only one set of rules is not enough, we must also, to the rules were quite clearly stated that they do not leave open the possibility of alternative interpretations, and for this they have to be simple.Ideally, the rules should be so simple that they can be formulated in the form of the algorithm, so that you can not hesitate to act on them.It should however bear in mind that the accumulation of experience and new knowledge, the system will undergo changes in the end - nothing is immutable.When changes are made to the trading system should be followed one simple rule: at the time the changes should not be opened positions.
trading system - a product of your personal preferences and the need to create it on their own and for themselves.If you just keep it simple, then create your own trading system need to answer the two questions:
1.Chego I want?
2. What to do to get it?
In fact, there are more questions, but they are all special cases of the two.We'll have to take into account many factors:
What currency pair used to trade?You can of course choose any exotic currencies, but in my opinion, the answer to this question should be based on the value of the spread.The smaller, the better.And the smaller the spread as a rule, most running currency pairs: EUR-USD, USD-JPY and so on. E., In different dealing centers spreads on the value of the same currency pairs may vary.Choice currency pair, as the choice of dealing center is a matter of personal preference, and it is solved individually.
What data are used for trading - fundamental analysis or technical.Some people believe that these fundamental analysis are more suitable for long-term transactions and data of technical analysis - for the short term.Basically this is the case, but there may be exceptions.If you manage to get the indicators that they gave a fairly accurate forecast for six months or a year, there is no reason not to use them in a trade.Another question is how to achieve such results and at what cost.In general, the answer as to the previous field stored in the personal preference.As long as you try, you do not know.
Which slots work?It all depends on the temperament of the trader.Someone comfortable to think slowly, weigh everything and decide, and someone can not sit still, he had to act and act quickly.
How will the system - and the trend in the channel?There is another way - against the trend (pullbacks), but in order to successfully use this method, you need not just a great and vast experience.Start better with the first two methods, and for this you need to learn how to detect the presence and direction of the trend.Criteria and methods for determining the trend are many and it is - a topic for another conversation.
What indicators used to analyze the market?Universal indicators do not happen.By and large, all the indicators can be divided into two groups - the "trend" that is used during severe market movements and "channel", which is used when the market is quiet."Trend" indicator will lie if the lull in the market, and the "channel" to leave you without a deposit, if the market has moved up or down, and you have not noticed.Thus, it can be argued that the choice of indicators depends on the market situation.In addition there are candles, and combinations thereof.Rules for working with candles is also a topic for another conversation.
What will be the size of the trading lot?Here, the main criterion should be the size of the deposit.
What are the conditions for opening and closing positions?News, indicators, figures of technical analysis or a combination of candles?
What is the value put stop-loss?On the one hand the stop loss to protect the deposit from the sink, the other in early fires - will deprive you of profits.
list of circumstances which must be considered when creating a trading system, you can continue, but it should be noted that the main criterion for determining its right to exist, is the practical applicability.This means that the system must be checked in practice.Only practice will reveal its strengths and weaknesses and show what it is really.It
people build trading systems, so this win-win strategy of forex was also built on the basis of my personal experience.
