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How do i formulate a trade strategy?
I've been paper trading for about 6 months now. The thing is that the reason i enter/exit trades varies from trade to trade. Thus, it's been difficult for me to come up with a set parameter in my strategies, therefore, making me FEEL that i have no strategy. A discretionary trader if you will.... this seems a little chaotic and difficult to track the effectiveness of my style since it varies depending on market conditions.
How can i trade this way without feeling like i'm swinging a sword blindfolded. As I've said, i've been paper trading for 6 months and i will be starting for real pretty soon. As far as paper profit, i'm back at even after a loss yesterday. How do I build a strategy and it's parameters? And lastly, i know this will seem like a very immature question and i know it depends but, what is the average win to loss ratio? I'd appreciate an elaborate answer! Thnx alot fellow traders! .....May the force be with you...
over 2 years ago
Best Answer - Chosen by Voters
To make a forex trading strategy you need to know the indicators, the time frame and the currency which it works better. You need to know how to use the indicators and the ones they work better together. They are lot of information about how to do that. But you don´t have to discover the strategy they are many strategies that had been prove to work, and they tell you exactly what to. So maybe you will like to check that out. Also be sure you test your strategy in a demo account, and write down the results, remember to use a time frame and don´t change it so you will really see if the strategy work. Good luck.
over 2 years ago
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Hey there! I suggest heading on over to meetpips. Com. It is a online community of forex traders who share their trading strategies and trade ideas. You may be able to get some ideas there on how to form your own strategy. Also, there's nothing wrong with discretionary trading. Take a look at babypips. Com. Huck, pipcrawler, happy pip and cyclopip all post their discretionary trading ideas. The important thing is to always stick to your trading plan and risk management rules. Doing this will help you become a better trader.
over 2 years ago
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If your back to breakeven after 6 months, i wouldnt recommend live trading yet. You do need to come up with a solid set of rules, best thing is to utilise the strategies that have provided the most profit. Its ok to have a couple of systems running at the same time, just have set rules to trigger each system. Read the school of pips at babypips. Com this, i managed to adapt the pipsurfer cowabunga system to my needs, and im doing great. Paulaelli is my profile on meetpips. Com if you wanna look
over 2 years ago
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It might help to keep a journal of your trades so that you could track which strategy works best for you. For instance, you could record the kinds of trades you took (such as range-based, retracement, breakout) and the number of pips you won or lost in each trade. That way, you'd be able to note which ones are giving a higher win ratio. Good luck!
over 2 years ago
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I put a link that has a collection of many strategies that you can take a look at. You will see how a strategy is built up. You need entry/exit signals, stop losses etc written down and on what time frames? Are you going to stand aside if the trend becomes ranged or will you have a strategy ready for that? Write down what indicators you use and how you use them and what you do with the results they give. Basically a check list that you go through every time you are going to open a position and remember, standing aside is also a position. You don't have to be long/short always. Ps, don't start live trading before you got a system you feel comfortable with.
over 2 years ago
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Open Questions in Trading Strategies
Resolved Questions in Trading Strategies
- What is intraday position? And how does it differ with overnight position?
- What is scalping? How profitable is it?
- Which indicator are you using? I know there are tons of indicators out there.
- Before you begin trading, do you set a certain goal to reach? If yes, is it important?
- How can I decrease the gap between entry and stop loss?
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