How do you guys develop your own trading strategy? What guidelines should we look for when creating one?
When you say develop a trading strategy I’m assuming you’re wanting to develop one that’s based on an indicator you have to pick the indicator that you’re going to use or if you’re going to use more than one indicator which indicators will that be?
You won’t like what I say about the basic indicators let’s just say I don’t have a lot of confidence in them so you make your own decision about that.
You can either use one of the off-the-shelf indicators which as I said I don’t have much confidence in them or you could develop your own indicator which is no small undertaking.
Selecting your indicator or indicators is the very first step to developing a strategy.
Traders either trade using indicators or they trade with no indicators which is commonly referred to as naked trading which simply means that there are no indicators on the chart.
There really is no strategy no predefined strategy when you’re trading naked charts because there’s no indicator to look at you’re trading is entirely based on your own personal intuition.
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I guess my question is do you actually want to do this because you want it to be your own thing? Or because you don’t have anything and don’t know where to start.
I’ve tried to put something together, but why not use something someone else has already used and has had success with it?
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I connect indicators and price in different way, then simulate market conditions I called “stress tests”. If strategies pass all tests I assume that strategies has chance to be profitable in the future, then I verify this strategy on demo account
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I usually develop a trading strategy through research by determining the goals and risk tolerance, choosing a trading approach, and setting trading rules.
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This lesson focuses on strategy.
https://www.babypips.com/learn/forex/undergraduate-junior
Perhaps you should complete Pipsology.
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This is where I am right now in the academy :)!
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I apply different indicators on the market changing their settings and check whether they work better or not.
It depends on number of transaction, but I would say even months,
1.try strategies from others ,and keep some of the trading ideas/ indicators that’s legit
2.combineand back test them until you found the best combination.
3.after some fails , further filter stuff you don’t need ,and repeat all process again.
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Developing strategy is quintessential for traders. It may take some time but it will certainly help you reap gain on the market. Try to develop such a strategy that will help you identify the market trend.
what do you understand by " the best combination"? do you mean the best combination of indicators and periods these indicators which get the highest profit? Regards Greg
yes,anything range from trading idea , indicators ,etc ,but not profit ,im looking for the combination with minimum loss.as for me ,i believe profit is unpredictable ,so i focus 100% only on stop loss
I agree with this. When first starting trading, experimenting is risky. I personally start with identifying how much time I can spend trading because it affects what type of strategy to implement. I also try to master a few indicators/methods first and look up references from other people to maximize it. Don’t forget to backtest and forward-test your trading strategy to test its effectiveness, also, practice first in a demo account.
Anything specifically that sticks?
First off, you have to ask yourself how long you are planing to hold your trades. 10 minutes? Few hours? Few days? The answer should determine your starting timeframe, when holding trades for a few hours it doesn’t make sense to watch W1 or M1.
Let’s assume you want to hold your trades for a few hours then your first look should be H1. This is yout timeframe where you could choose where to place your stop loss. Then switch to the next higher timeframe (h4/d1) and look if your idea matches the (higher) trend. Then you can return to h1 or even lower (m30/m15) for futher details, confirmation or even indicators.
Then your second question should be “what kind of trades do you want to trade?” trends? Reverseal? You could use a moving average crossover of 2 or 3 MAs (long period, middle and short) for a trend following strategy or leading indicators like stochastik for ranging markets.
You could also ask yourself which pairs / session you want to trade and depending on your answers you could design a strategy fitting your style.
Of course this is only the top of the iceberg…
Make sure to don’t just copy a strategy because this won’t work.
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Guess I will say from little chart patterns 
and little indicators such as MA with different numbers.