How do people create their own strategy? I have seen people on Baby pips saying they trade and only believe in their own strategy, but how do you create one?
Why is a broker asking a question like this?
It’s very fully answered in the Babypips School
There are also many other threads already discussing the identical question
Basically, people create their own strategy by learning the basics, testing stuff out, and seeing what clicks for them. It takes time, practice, and tweaking until they find something that feels right and works consistently. Everyone’s got their own style.
I have created many strategies and some worked very well (but at first only) and some not very well (ever). None of them were highly original (tradng is an old game) and I have posted all of them on the internet, and maybe for some traders they have worked better, maybe with a few of their own development ideas. But all the trades I have ever done had better outcomes when the position was in line with the underlying long-term trend - the trend has always been more important than the strategy, and definitely more of an indication of outcome than the entry methodology.
So I spend very little time at all now creating strategies.
I gradually found this, also.
For me the trend is the most important, some momentum is also important (my charts are faster than yours @tommor ), the entry method and timing are really not so important at all.
I never though a broker would be asking this tbh
Some people just want to “get posts on the board” because they’re here for promotional purposes and want people to look at their profile and click on their link. This OP is freshly back (earlier today) from being suspended for a while. Let’s assume he won’t be bumping antique threads any more, just to repeat things already said in them, long ago. And that the ones he starts, now, might actually contribute some value to Babypips and not just be pasted in from Reddit.
I believe sometimes it is better to not come between a man and his meal
Probably by watching how the market moves, borrowing ideas that make sense, and then mixing them up to fit their vibe. It’s less about perfection and more about what actually works for them in real trades.
Creating your own strategy? Start simple. Pick one pair, one setup, and test it like crazy. See what fits you, not just the charts. Tweak as you go, keep a journal, and don’t chase perfection. The best strategy is the one you actually stick with.
its more like somthing you stumble upon based on the situation you are in, and depending on the condistion surrounding your trading assets, it just happens as you learn more and more about the markets and certain assets. some of it are good most of them are a pain. but thats how it goes, striving to grab on to something that can work consistently.
Find an existing strategy made by someone else, trade it like crazy, keep what you like, get rid of what you don’t, make it your own.
No reason to reinvent the wheel when you’re getting started.
You’d want to backtest it pretty extensively yourself, first? Otherwise how would you know whether it’s worthwhile?
You would indeed, exactly right.
But in reality very few “beginning traders” would have the knowledge, skills, techniques (and maybe software) to know how to do that reliably. Which is exactly how so many of them go so wrong.
Because they can’t or won’t do that, and/or don’t understand why it’s essential, they end up “taking someone else’s word for it”, and the people whose words they end up taking are called “marketers”. They’re not actually people making a living by trading at all.
But that’s really hard for beginners to judge.
And some of those people with marketing skills have real marketing skills (just like some people who post here, often rather flamboyantly and apparently with great self-confidence!).
What they don’t usually have, sadly, is trading skills (those are of course much, much harder to acquire!). But they don’t actually need those, to get subscribers to the various “services” they’re ever-so-discreetly selling through their “forum marketing”.
pick a trading style, choose a couple of indicators, set clear entry n exit set ups, and test it on past data (pine script in TW and backtest in mt4/5). Try it on demo first, then tweak as you go. Keep it simple and make it fit you.
Why start from the assumption that you’ll need indicators?
And why choose them before even deciding what sort of strategy you want?!?!
I trade with a couple of indicators. But anyone imagining that just “choose a couple of indicators” is part of a sensible approach to coming up with their own strategy can only be helped by reading this thread. Including you, @Lizarus !
- I think of ideas.
- Code an EA that implement these ideas.
- Back test the EA to see if my ideas work.
No other way, unless you want to back test manually, which is too hard, time consuming and probably won’t be statistically representative.
You will have to perform hundreds, if not thousands back tests, including all the optimization, fine tuning etc.
Creating your own strategy?? It’s like saying to invent something in real life that is going to be useful and helpful for humanity. I don’t know if there are geniuses that can make new strategies out there, but for me i would stick to learning proven strategies in the market. They are proven by many years of real trading, whereas new trading strategy will be a hypothetical and who knows how it is.
Not if it backtests and forward-tests better then the existing ones, maybe?
The people with the skills, knowledge and software to reliably and accurately backtest and forward-test it, maybe?