How can I develop a good strategy?
Most books I read recommend developing my own strategy, but I’ve found this to be a little difficult.
It’s one thing to develop a strategy, the harder part is sticking to it. I find myself doing things I didn’t list on the strategy I managed to develop.
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IMO every trader needs to learn about his or herself when confronted by Mount Everest wearing a 50 kilo backpack.
That’s how athletes become olympians by focusing on process day in and day out.
Developing a trading strategy will be the result of how you manage yourself. Keep it simple.
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develop a trading strategy is not a minor deal , need a very long time issue with great patience.
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Don’t beat yourself up ,it’s all natural experience/emotions. At least you have the insight to know that you making mistakes
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It’s very common to do things not in your strategy when you are searching for a consistent one.
But if you think about it… Most of the stuff you are doing is revenge trading… gambling or FOMO trades…
Once you realize this and loose enough money… you will stick to your plan…
What you need to do is describe your entry and exit rules… and your trade management rules… also you need to keep track of the stats of your strategy… Win rate… risk reward… etc… in order to know if your plan is profitable or not.
Dude… do not FOMO trade… the market is not going anywhere… it will be here tomorrow… if price runs… it runs… no matter 100 or 10 thousand pips… you just stick to your plan… if the market doesn’t give you what you want … just wait
You see… the market is like a hot girl… the more you want her… the more she runs…
You need to seduce her… slowly… calmly… take her to your own game… and when she is ready… yo go for the kiss
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It is very difficult for an experienced trader to think up a unique strategy which is inherently practicable and profitable, and which has never been thought of before and published. For a new trader, its virtually impossible - don’t waste your time.
In any case, there is no need. Grab a well known highly conventional strategy which is as objective as possible and run it in demo. The first strategy you trial only teaches you how to trial strategies. After that you can add your own refinements and tactics as you develop as a trader, but make sure you are running a consistently profitable strategy in demo before you go live.
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Developing your own strategy is an essential component to your success as a trader. It involves a lot of backtesting to be cork sure that the strategy can stand the test of time. Numerous professional traders advice that one need to test the strategy a minimum of 100 times for both long and short positions. A strategy need to be at least 50% effective and this work hand in hand with good risk management skills.
Coupled with backtesting is your trading journal to measure your progression. I advise that one should do manual backtesting in order to fully understand the market as well as better predict its movements. The use of automated backtesting tools may work but that will not teach you to be a professional trader in the long run. Otherwise stay hungry, humble and continuously learn; the forex market is tough but it doesn’t mean you can’t or won’t master it.
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Hey Bossgee01
Developing a good strategy that “fits” with you and your personality is what is going to bring you success - but lets just step back a little and think about what is a strategy to you and what that means.
- most people look at it as a way to trade what they are seeing or a ‘set up’ or trading support and resistance for example or pivot points etc - I think you get the jist.
However in my 14 years experience as a retail Forex Trader I have come to a “style” of how I trade - this is what fits my personality my psycology, my rules etc - this is what I belive is paramount in developing into a good trader. It is taking and learning the fundamentals taking in these different stategies that you find and see if they work for you.
I know many traders that dont trade the way I do - and thats fine what ever you are comfortable with and have conviction with the rules that you set becomes your “style” or the way you trade.
This is developed with experinece , like any vocation you need to learn, practice and implement and if I can give one bit of advice its have a daily journal - I don’t mean a trading journal this is different its a daily log of your journey when you do this you start to see what is making sense what you are seeing what you are embracing.These nuggets are then translated into “your” trading style - your rules of engagment. This how you develop your own "strategy based on your experinece during this process.
Hope this helps and I wish you the best in your trading journey.
Trade safe.
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Hi
I’m a new trader and I’m having challenges when it comes to back testing how can I get it right ?
this is really a fine answer with good information
Hello noname user 
did you make any own search about this topic? Regards Greg
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Depends how you trade - are you a scalper, swing trader, intra day trader?
Do a lot of back testing and see what works for you - lots of content online these days, especially YouTube which is free.
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The first step is to choose a Forex pair or commodity and only test on this.
The next is to investigate a strategy through a mentor such as transparent trader on youtube or similar.
The simpler the strategy, the better. Avoid many indicators and try to utilise naked trading techniques.
Dave Galea
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let me tell you about mine…
technically speaking its partially mine since i didn’t develop it from scratch but modified it. So when i first came across this strategy it had 8 indicators, i tested it as it is and didn’t like the results. Long story short, after trial and error (of about 4 months) i now have a stretegy that suits me perfectly and it only consists of 5 indicators with 2 that i’ve added for myself.
The original strategy had 8 indicators, i removed 5 and was left with 3, then added 2 of my own to have a total of 5 indicators.
So the question is, did i develop this strategy…Yes and No, yes because i’ve made changes to it to suit me personally, and no because it’s not something i came up with from scratch but only made a few changes.
i hope that can help you.
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Thanks for sharing
Thanks for your tips
Wow, thanks for sharing
Sticking to a strategy is cool only when you have a good strategy, otherwise it’s valuable. Besides strategy-based trading, traders must obtain knowledge on market conditions. Proper evaluation of thyself is needed because it’s helps traders determine his or her ability towards trading.
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