How to build trading system or setup

Trading Systems
1

I’m learning about forex trading through books, videos on YouTube, and here at BabyPips. I never trade with real money, so I’m interested in the advice you guys have for developing trading setups and techniques??

I m gonna be swing trader
15m 1h 4h gonna be my chart

Thank you

2

Swing traders usually trade the Daily chart, which is taking a long term view. Your 1h & 4h chart times are suitable for daily traders, and the 15m chart suitable for scalping traders.

Every trader is different, and it’s what suits you and your lifestyle best. I would suggest your learning must involve aiming to find strong probabilities of being on the right side of a trade, and when in play being able to manage your emotional control, to quickly close losing trades, not ever nurse them in the hope they will move back in your favour, but find ways to nurse winning trades instead.

It’s that simple but not easy. That’s why it could take years to become successful.

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3

thank you @steve369 for suggestion.

4

Some years back a trader developed a simple and objective way for identifying when to take a swing trade.

For example -

  • All buy entries take place only in uptrends: all sell entries take place only in downtrends - use a moving average or two to confirm the trend if that makes it easier.
  • In an uptrend, look for a series of bearish days - these are days with lower daily high and lower daily low than the previous day.
  • When you see a series of 3 consecutive bearish days, after the close of the third bearish day set a buy order just above its high, and a stop-loss just below its low.
  • If the buy order is not triggered and the 4th day is another bearish day, just drag the buy order and the stop-loss order down to the new levels indicated by the 4th day, as long as the trend is still upwards.
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5

Thank You @tommor definitely try on backtest i want more like this to play around until i build my confidence to go on live real account. Thank you. :v:

6

If you think you are experienced enough in forex trading, then you can develop your own trading system that suits your trading knowledge, trading style and risk tolerance. Here are 6 vital steps that you will have to follow to build a good trading setup for yourself:

  1. Defining your time frame.
  2. Identifying the market’s position
  3. Finding support & resistance levels
  4. Finding entry and exit points
  5. Using multiple time-frame analysis

Developing a trade setup is half the job done, make sure you strictly follow it to get consistent results.

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7

@emitwisdom Thank you for your advice. Since I lack experience and have never traded with real money, I would like to learn more about developing trading setups and strategies before entering the real world. If you could elaborate on these points or recommend any books or techniques, that would be greatly appreciated. Thank you very much.