How to create a Forex trading strategy to win the market
Creating a Forex trading strategy does not happen in one day for sure, because creating a strategy that suits you depends on many factors such as time, market, tool, time, but not too difficult because If we study many components in an understanding, develop our knowledge continuously with experience, we will definitely find a strategy or plan that is right for us.
Let’s start creating our own strategy.
The beginning of creating a Forex trading strategy is to create trading concepts. Strategic thinking is about studying the opportunity-separating charts that already exist, asking questions about how we can benefit.When we have created enough concepts, we can go through a more in-depth testing process. The testing process involves customizing and refining the strategy based on the information provided by the trading strategy in the sample account. After a profitable strategy That means we have an effective plan. Then how do we create it to prevent the risk? Many people have heard of the word DEMO. That is what we ourselves will start creating a good strategy department. Because once the plan has been successfully implemented, we can start to get into real money. But beware, if not certain There are many accounts to choose from. For example, Micro or Cent are accounts that we spread the risk well.
Create step by step plans.
The movement of the graph in Forex is always profitable for us. If we have good plans and most importantly, most of the traders will look at the graph in the picture that has a wide movement and many pairs of money. So let’s ask ourselves The following list, have we done it yet?
- Moving graph Or the type of graph that matches with the tools we use or not, such as trend lines, support, resistance Or a sideway running? Therefore, you have to find what you use to be effective and create the right map.
- Which indicator type do we specialize in and can be used to fully understand the market conditions that we like in Bo 1 because the market conditions and the ability of the Indicator will make our strategy to make a profit in that market condition?
- Opening-closing orders when making profits as planned This can be considered as heart. When our strategy works, look at the market, when we make a profit, are we satisfied with our profit? When losing, are we happy with that loss? Things to understand Is enough to profit from our plan
Manage the risk
This is the most important thing when creating a Forex trading strategy. We can have a list and the best solution. But in the end, every strategy loses trading. If we do not manage risks and funds appropriately, traders without risk management can also wipe out the portfolio.
- Must be in the strategy that we have specified. What size of orders can we use for trading? And how much capital do we ourselves have?
2 From the answers to the above questions, how are we at risk in each transaction? Try not to risk more than 5% of our funds at any time and keep in mind that if trading is too risky, the strategy is not worth it.
- Is profit worth the risk? Losses should generally be less than profits. If not, it means that we need to re-evaluate your strategy. For better results
Always test strategies
When having a plan and making ideas about how to access and control risks Now take a look at our graph to find more input signals. How will our Forex trading strategy be effective? If it seems likely to test the strategy in order to adjust the strategy, we should always use a DEMO account to develop our strategy. When the results are satisfactory, then gradually apply to existing accounts.
Can we use Forex trading strategies with other Time Farame or other currency pairs and can it also be used with smaller or larger Time Farame? Look to see if the strategy is performing well over time or on specific days. If there is a poorly performing day or time of day, do not trade during that time.
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Thank you that I am now rich.