How to set up trading plans and trading system the right way

Trading Systems
1

guys as written in the title am finding it difficult to build my own trading plan and system and yes I have a strategy I use I guess it works for me cause it is the only strategy I understand

so mates I need y’all helps on building trading plan and system.

thanks.

2

Can you elaborate more on your trading strategy?

i) How well do you know about your strategy?
ii) What’s your entry and exit condition of your system?
iii) In what market condition your strategy works well?
iv) How’s your money management and risk reward strategy be like?
v) In what time of the day do you trade?

3

i) 50/100
ii) firstly I check my 3time frames (15m, 1h, 4h) to see if it correspond (if all is in an uptrend or downtrend) if it an uptrend and i want to buy I go back to 15m chart to set my entry and exit but, if one of the time frame fails to correspond with the other two I just wait for it to correspond b4 entries

iii) in a downtrend it works well (that a sell trade)

iv) well risk management since am still using a cent account with a capital of 1000cent i risk not less than 0.01 or 0.05 but if the market is bullish in all my Time frame or bearish I risk 0.50 so as to make more profit

v) 10am to 4pm cause am currently in Nigeria

cc: @SingularityFx820

4

First of all, you should describe your strategy in details: each important point, one by one. You need to have your rules written down to be able to look them through at any time. Pay attention to each even smallest detail - it could be very important for future performance. There should be no uncertain points.
Then, you will be able to write down the whole process, from the preparations to the trading itself. Create a list of actions you need to perform to execute your strategy.
Final point is the trading plan. You need to apply it each time opening the position. It means that each time placing entrance order you should know exactly where you would close your position if the price will go against you and how long would you hold it in favorable surcumstances. It is not about pre-defined risks. The idea is to outline the signals prescribing you to close the position

5

@J_C_Anderson first of all, you should describe your strategy

how i don’t really get here…

rules? what kind of rules please throw more light

6

Have you worked your way thru the free school here?
It gives guidance on how to develop a strategy

7

@eddieb yes I have, I already have a strategy am following

but I can’t build a trading plan and system am finding it difficult

8
  1. Check 4hr for overbought or oversold signal using oscillator : stochastic or rsi
  2. Check 1 hour for double confirmation must be same as 4hr confirmation ( overbought or oversold)
  3. Enter on 15 mins chart by using candle stick reversal pattern. Stop loss set below or on top of the reversal pattern depends on buy or sell or at the recent high and lows (candlestick pattern like hammer, shooting star, bullish engulfing pattern , dark cloud cover and etc)
  4. Place the trade with the target of 3:1 risk reward at least . For example : 50 pips stop loss , aim for 150 pips profit or you could exit when the 4hour chart oscillator shows the opposite.
  5. Do not risk more than 1% of your account even if everything lines up.
9

i don understand there when you say you risk 0.5 do you mean lot size?

10

@SingularityFx820 thanks mate I tried the reversal pattern before it my first strategy I came across I used it for a week seems it doesn’t work for me find it hard to make profit I loose

11

Buy low sell high on the 1-day charts, don’t take losses unduly.

12

@000zamani
This means that you need to write down the exact rules of our stragety. It should be so detailed that someone else could understand your idea. It is important to describe each small detail to be able to find something causing underperformance.
For example, the closing position rule could be the following:

  • if the price crosses previous local low on 15 min chart and stays there for 5 minutes, or
  • the volume spike takes place with the highest volume for the whole day.