Developing a simple trading strategy

Beginner Questions
1

Hi everyone, I’m looking to develop a simple trading strategy. What steps or key factors should I consider when creating one? Any resources or personal tips would be greatly appreciated !

1 Like
2

Hi @KentBrix and welcome.

First, as a beginner, you will not be able to develop a strategy which is both original and consistently profitable.

More realistic to become competent, maybe even expert, using a strategy which experienced professional participants have developed in use over decades.

Maybe you have already seen some such strategies?

1 Like
3

Sell options. Statistically it’s the best way of you making some kind of return. Unless you know something that 90% of other people don’t, you (or anyone else) won’t survive ‘trading’ forex or anything similar. If anyone mentions technical analysis run as fast as you can.

4

start here

2 Likes
5

I think these three links may help you (they’ve certainly helped other people) -

2 Likes
6

Thank you for your advice. I understand that developing a strategy that is both original and consistently profitable might be a challenge at the beginning. My aim is to build a strong foundation by learning from tried-and-tested strategies used by professionals. I’m definitely open to exploring these established strategies and understanding their nuances. If you have any recommendations or resources to help me get started, I would appreciate it.

7

Try DCA (dollar cost averaging). Basically you sell or buy wherever you want. You have a plan to add to your trade as it goes against you. You do so by looking at market structure and where you think price is more likely to bounce.

Nick Shawn teaches it and it’s beautiful. However, you have to size small enough to be able to add to your trades. Otherwise you’ll blown the account.

2 Likes
9

Not sure I would use DCA but adding to winning trades is the secret weapon in trading.

All traders should see e what the Turtle Traders did for proof of this tactic’s potency.

1 Like
10

First 3 words are “Simple trading strategy”

EurUsd Trading Price Levels

11

It is awesome to develop a strategy! A few things to keep in mind:

  • Pick your market – Are you trading forex, stocks, or something else? Narrowing it down helps you focus.

  • Decide your timeframe – Are you into quick trades like scalping, or do you prefer holding for a few days (swing trading)? This will guide your approach.

  • Risk management – Can’t stress this enough! Set a risk limit (like 1-2% per trade) and always use stop losses to protect your cash.

  • Learn some basics – Get comfortable with things like support/resistance, simple indicators (RSI, moving averages), and price action.

  • Test it out – Before you go live, backtest your strategy on past charts. See how it would’ve done historically.

  • Keep it simple – Don’t overcomplicate things at the start. A straightforward strategy works just fine and you can always tweak it later.

BabyPips School is a great resource if you need some extra help. Good luck, and don’t be afraid to experiment till you find what works!