I don’t think so! Then tell me, what’s the different between trading strategy and system! According to me, there is no difference between them.
I earned about 5% by 1sat trading, but it’s possible to trade this way maybe during several days, after that I came to more conservative strategies when I have just 1-2 trades a day
As for me trading strategy and system is the same
It’s similar to the distinction between “strategy” and “tactics” in military operations, business operations, or a game of chess.
In trading, “strategy” refers to the overall aims, objectives and style of trading, but a “system” described the details whereby the objectives are achieved,
“Strategy” is a broad description of one’s aims, and “system” provides the detail - for example, details of entry set-ups, trade-management, stop-loss adjustments, targets and so on.
For example, a strategy might be “To trade increases in momentum within already-existing trends”, and one of the systems for doing that might be “Entering long trades when the MACD-line crosses above both its signal-line and its midline, with a stop-loss of twice the ATR and a target of twice the stop-loss distance”.
In the past, when I’ve encountered people who don’t quite appreciate the difference between “strategy” and “system”, it’s often been because they’ve learned to trade largely or entirely from online sources (forums, Youtube and websites) which tend to use language very loosely and inaccurately, without first ever having carefully studied any established textbooks for trading beginners.
A “trading plan”, of course, is something completely different again (similar to a “business plan” for running a company).
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It’s a long time process buddy, till now I am learning from my live trading mistakes! Besides, I use support/resistant levels in my chart.
Strictly speaking…
it comes down to how you define them
on one hand it is correct to say there is no difference
by Dictionary definition
SYSTEM
a set of principles or procedures according to which something is done; an organized scheme or method.
STRATEGY
a plan of action designed to achieve a long-term or overall aim.
on the other hand you can say that TECHNICALLY a system is not a strategy
and… that’s correct
but, IN THE GENERAL CONTEXT OF HOW PEOPLE USE THE WORD IN FOREX
there really isn’t a difference
they are basically saying THEY HAVE A SET OF RULES that if you follow them precisely, you will be profitable
so whether the STRATEGY is to FOLLOW THE SYSTEM
or you just FOLLOW A SYSTEM
its’ essentially the same thing
Not so at all, according to your own dictionary - which clearly distinguishes between the two in exactly the same way Charlie explained it, just above.
Such discussions always do, to some extent. The important thing, though, is to distinguish clearly between them. The words we all use, and the ways in which we use them, are what informs and educates our own thought-processes about these matters.
True… but the problem is
we as humans, are not walking dictionaries.
and “We” do not define then in the same way.
if we did, this question wouldn’t exist
so, to simplify the answer so it caters for the majority of people
we need to look at how the majority define it and what they are really meaning
at the end of the day
if someone is talking about a FOREX STRATEGY vs A FOREX SYSTEM
They are basically talking about a set of steps or an idea to follow that leads them to profitablity
beyond this, why would you overcomplicate the issue
the meaning of the question is simple
and the answer is simple as well
we don’t need to pull out the worlds largest and most concise dictionary to figure this out
besides
it’s not really even about the definition
it’s really about WHAT PEOPLE MEAN when they say Strategy and System in forex
and given that most of these are newbies
the truth is they really don’t have much idea and they use the words interchangeably
in the same sense that a 16 year old kid might say
"I’m going to put my shoes on"
vs
"I’m going to put my sneakers on"
we can define Sneakers vs Shoes… of course
but at the end of the day, the kid is talking about Sneakers in both respects and using both words interchangeably
just like in forex
when someone says
i have a system
i have a method
i have a strategy
i have a plan
to trade and consistantly profitable
it’s clearly understood that the lamen newbie is talking about the same thing in all cases.
And that’s why, in a beginners’ forum, of all places, it should be explained that they’re entirely separate and distinct things, so that the people making that mistake can learn something and improve their “thinking about trading”.
Which is why it’s so frustrating and counterproductive when people who spend a lot of time talking about “how experienced they are” and all the rest of the self-congratulatory stuff endorse those beginners’ entirely mistaken views and claim (even while themselves quoting dictionary definitions which clearly show the opposite!) that “strategy” and “system” are the same thing!! 
But Charlie
i did say they were different things (Technically speaking)
i included a dictionary definition for the benefit of everyone to make up their own mind
what’s so hard here anyway?
I mean… RE this comment
why is this a question of my experience ?
as per our previosu discussions… Just to be clear
i have absolutely no problem with you disagreeing … ok
but honesty, i see this as really simple
there is the COMMON VIEW
and there is the CORRECT VIEW
The Correct point of view is… THEY ARE TWO DIFFERENT THINGS
The common point of view is They are very similar
Now maybe the original question needs to be clarified so we can ascertain what the poster actually wanted to find out
but, BY MY INTERPRETATION OF THE QUESTION
The common person was asking if there is is a difference between the two.
and obviously we are not before a court of law where every word needs to be scrutiinized
and the question needs to be tailored to a lamen so that the lamen understands (When formulating a Strategy or System for success) will there be a difference
the answer is NO
let’s not use the words SYSTEM or STRATEGY
let’s use the word PATH
so… When a lamen formulates a PATH to success
that is what they are doing… Right
essentially someone said they are 2 different things
and another person disagreed
The Person disagreeing is correct
however there is a clear misunderstanding between the two people , hence the confusion and debate
different people have different views mate
and let’s assume for a second that YOU define what is the global and universal definition and let’s that i agree with you on that definition
do you really think the average newbie is going to fall i line as well as the rest of the world
ANSWER : No, they won’t
it comes down to the person
I’m and Engineer by trade
i like to be specific
but… What i like is not always compatible with others like (and i understand that)
some people are the type of people that "close enough is good enough"
these are the people that don’t give two craps between the definitions
so… to be clear
i agree that they are two different things
i just don’t think the newbies care
but, IN CASE I’M WRONG
i did put up the definitions … ok
and also, Please mate,
i’m not self congratulatory… ok
things can come across in different ways ok
when i say i’m experienced at forex in this forum it’s because i am and because i’m trying to tell someone that what i’m saying is reliable to a large degree
it’s not showing off
i understand how that could be interpreted like that
but, You’re just gonna have to trust me that i’m not showing off
ok
so… again, i think this is simple
the newbies should have enough information here between our debate to ascertain for themselves what they want to believe
DO YOU AGREE ?
also…
Apologies for frustrating you.
its’ not my intention to do so… ok
Martin, what the people who are asking, and who need the help here saw in your posts was doubtless exceprts like this one:-
And probably this one:-
And Charlie’s quite right to point out how deeply mistaken those statements are.
The reason I think that’s what people see, in your posts, is partly the fact that you seem to be unable to write in complete sentences, or to use grammar or punctuation.
I don’t want that to sound like a criticism, and I’m aware that English isn’t everyone’s first language, and I’m aware that some people are dyslexic, and all the rest of it, too. You’re entitled to present your posts however you want, but the way you’re choosing to do so makes the content REALLY difficult for people to plow through and decipher; and when on top of all that you apparently contradict yourself as well, that makes it even harder for them.
I appreciate that your intention in posting is to try to help others. Nobody’s complaining about your intention. But in many threads, you really do seem to be achieving exactly the opposite!
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The biggest problem with multiple strategies is that they are typically built on the same foundation even if they use differing indicators or price action. That is, all strategies are looking for a reason to get into a trade. What ends up happening though is when you use multiple strategies the two strats will start to converge. This isn’t a bad thing but the result is perhaps not what you are looking for.
You are looking for one strategy that maybe gives 10 trades a month and another that gives 12 trades a month for a total of 22 trades. The problem is that I think you will find that of those 22 trades, both strategies would have indicated the same or similar entry points in about half of those. So you may actually end up with only 15 total trades. This is not a problem, but something to be aware of when developing the total trading plan.
Also, you are likely to find conflicting signals. One filter tells you to stay out of a trade while the other tells you to get in. Unless you have nerves of steel, this can really produce conflict and cause you to question your strategies.
Perhaps the best advice would be to incorporate the multiple strategies together in some way to produce an overall trading plan.
ok Luke
I’ll tell you what
I’ll go through all that stuff again… ok
I’ll have another look at it and i’ll pay attention to it in the future ok
I have no problem with criticism (As i’ve stated before), you don’t even need to apologize for that.
feel free to criticize if you see something wrong, i like to improve myself and i would like to come across as clear.
clearly that has not happened
so… I’ll pay attention to it and go back and review my posts ok
thanks mate, i appreciate you point this stuff out
English is my first language but, Re the grammar…
i don’t know, i guess sometimes i just sit here and have a cup of coffee and want to help others and relax and i don’t pay too much attention to it
i know i should
leave it with me and i’ll rectify this
thank you for the input and feedback
be assured i have not taken it personally but in the nicest way possible
thanks mate
i just want to say something also about those two comments
this comment was alongside another
so when you quote it like this OUT OF CONTEXT it is really saying a different thing
Now,i’m not arguing of course, i’m just saying
when i give a bunch of information
blah blah blah
and then say so… There really isn’t a difference
it’s supposed to mean that a person is supposed to consider the background information
but again…
i’ll go back and look at the posts and try to be clearer in the future… ok
THANKS MATE
BE COOL
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Have you practiced already one good approach with various trading plans? It worked ?
Very good going. Keep it up. Don’t take too much risk that you cannot effort.
in case of medium-term trading, risk is known in advance
Strategy is an action plan that you will use achieve some specified goal. For me there can be many strategies in the forex market, but at one point of time you need to craft one appropriate strategy and you need to trade as per this plan. For example, I am a student, so I am crafting scalping as my strategy right now and I am trading with major pairs in order to earn moderate profit by each trade.
So, ,is not possible to trade with multiple trading plans but same strategy?
You’ve misunderstood what “trading plan” means.
These links may help you:-
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