FOREX. Creating your own trading strategy
Still in the learning process, you should not just think about your own trading strategies, but also to collect all the necessary information, which later will help to orient and to avoid unnecessary mistakes and miscalculations. Correctly composed trading strategy - the key to successful traders by 50%.
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money management rules
Trader novice or a professional to create your own strategy is to set yourself a strict money management rules. You can resort to a common standard - used in the turnover of not more than 50% of the deposit amount, and in one trading instrument a maximum limit of 25% (that is 25% of the balance on the market EURUSD, EURJPY, EURCAD, etc.), the level of stop- loss exhibited by the trader is 2-3 times smaller than the take profit. Of course, these rules can be modified, depending on the conditions of the strategy. An important condition, the rules should be strict and binding on, it is a guarantee of the trader profits in the long run. Do not confuse long-term trade and long-term prospects. In the first case, long-term trade - there are types of orders, and in the second - the results for a long period of time.
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The nature of trade
To stand firmly on their feet in the unrest and fluctuations in the forex market you need to consider the choice of the degree of aggressiveness of trade. In fact, this fact is very important, but not taken into account by many traders. The nature of trade must fully comply with the nature of the trader. If you save every penny, expect spending a month in advance and was very upset by unexpected expenses - do not count on superaggressive game with an increase in orders for progression. This strategy will bring only frustration from every loss, and even, uncontrollable actions in a fit of anger, joy or melancholy. You more conservative approach the game with a small deposit and small volumes and the number of orders. If you're a gambler, in a good sense, and risking love to win, boldly follow an aggressive approach to increasing capacity. Conservative game will waft you bored and tired quickly.
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Indicator, entry and exit points
The third item you need to choose the right light. Indicators are needed to determine the points of entry and exit from the market. Many leadership put the choice of the indicator in the first place as the longest and the main point in creating a strategy. This is not entirely true, because you can select the indicator for a few tricks on the criterion of "like do not like." All standard indicators duplicate and modify some basic models and can be successfully replaced or optimized at any time without major difficulties. However, the main indicator and filter casting a false signals during lateral movement, should be chosen carefully and thoroughly, so you do not have to wander in search of a suitable replacement.
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Under the first three steps, it is understood that the currency pair and trade already selected, and it remains only to choose the best options to match the characteristics of the chosen trading platform.
You can use ready-made strategy, freely distributed on the network. All these strategies are working well, but the results can be influenced by each trader. One can make a very good, others - lose everything when trading on the same strategy. Therefore, do not neglect the opportunity to do everything for themselves, and not to use the options "for his uncle."
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in any case it is necessary to test the pre-history strategy of price fluctuations in the different currencies with different parameters. It is easier to correct errors before the launch than to search for them in the course of trade.
When all steps have been completed, all that remains to do - pick a currency pair and test strategy for monetary history, and if the results are unsatisfactory, to revise certain points. Testing strategy, try to be as "detached", to eliminate the human factor. Spend as much as possible of transactions on different currency pairs to choose the best trading tool and see the prospects and opportunities of such trade. The main criterion of efficiency strategy is the drawdown (maximum number of consecutive losing trades). If the strategy involves a rapid build-up of trade, a large drawdown - this is unacceptable to the nature of trade.
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finishing touch, choose the time of trade. Learn all trading sessions and their characteristics, correlate them with your work schedule and the biological clock. Immediately discard the idea to trade around the clock or spontaneously - it will only interfere with the obtained results.