I think that should come under your trading plan. But only if you are going to permanently use it as a long term strategy.
There is a difference between trade strategy and plan. A strategy will constitute what needs to be done while a plan is a set goal which is to be executed. A strategy could be long term while a plan can be short term ideas. Similarly, a system is a way of doing something while an idea is something that might or might not be formed into a plan. Hope this helps.
You are correct. After reading this conversation, I want to give myself some more time to actually read and enhance my knowledge.
Just posting back here to say that I came across this lesson:
Kind of answers the question too.
- A trading system describes how you will enter and exit trades.
- A trading system is PART of your trading plan but is just one of several important parts, i.e., analysis, executions, risk management, etc.
Since market conditions are always changing, a good trader will usually have two or more trading systems in his or her trading plan.
Trading systems will be covered more in-depth later on in the lesson, but we thought that it was important to point out the difference between the two upfront to avoid any confusion.