ik there is already a section on babypips dedicated to creating a system but i just find it so hard to do so there are so amny tools and as many ways of thinking as there are trader. how can i create my own forex sytem from scratch or base it on an existing system so that it fits my personnality?
You will make the picture clearer of what you need if you run a few systems in a demo account. Pick strategies which from their descriptions and rules are very different to each other. See which suits you, your attitude to risk and losses, as well as your life-style.
There are a hundred strategies scattered across this site and thousands more on the web but recognise that you will not be able to invent a completely original strategy. Almnost all strategies are variations of simple principles - either
1 - buy because price has been rising and you think it will continue or
2 - sell because price has been rising but you think that you will make more money when it falls than if it continues rising.
2 Likes
thank you so much for the answer! i get what you are saying ig i just need to try a few strategies, how can i facilitate the backtesting process?
Backtesting a common strategy is of little value - you don’t need to prove someone else’s strategy works or doesn’t.
Might be more productive to take the strategy’s set-up from a chart and then walk though from there, following the strategy’s rules 100%, so that you understand what you would do in the real life situation. Then walk through demo trades in real time, using the strategy. The idea isn’t to make a lot of demo dollars, it’s to ensure you understand the importance of planning and following the plan. The plan will tell you what to do.
but then if it isnt profitable in the testing why continue using it?
You just select a well known widely used strategy. All the backtesting you or I could do won’t improve it, all that research has already been done.
fair enough
Hi @joeyclass, let me share a bit about how to build a trading method.
By saying develop a system, you should have been able to analyze market properly. For example you already know how an instrument work, pattern and structured.
Once you have identified them, next is you need to find out how good a methodology works. You need to design money management and trading method that workable and also in within your risk.
Real example: when I look at EURUSD, I can see a good pattern at H4 or D1. Using H4 and D1, I will breakdown it by using price action. For instance, I find out I can trade a breakout, then I will target breakout only.
Since price action need time to confirm, I will find out which indicator work based to EURUSD breakout. For example I can refers to OSMA + TEMA as basis to find a breakout, then my trading methodology will be by using these indicators. Remember, we need to back test before jump into conclusion.
For me, trading is a very practical thing. If we can’t define thing in layman terms, we just don’t simply understand it. 
Think of your trading system as a reflection of your personality. Start by figuring out what kind of trader you are—do you like quick trades or more relaxed ones? Consider your goals and how much time you can commit.
Once you have that down, look at existing systems and see what resonates with you. Maybe there’s a strategy that feels right, but you want to tweak it to match your style. Don’t hesitate to mix and match ideas until you find something that clicks! It’s all about making it your own. Just take it step by step, and remember, it’s okay to experiment and adjust as you go.