I’m a new trader. And I want to know what things or criteria to initiate a trade should be included in a trading strategy?
Although I don’t know others choice; but I think, having a chart reading skill is very important in Forex! So, my answer is Price Action.
Everything should be included write everything g down so it’s solid in your mind and reject what doesn’t work
Must be the support/resistant levels; even, S/R levels play the key role on determining the market trend!
Each strategy should contain two sets of rules.
First of all, strategy rules should specify trading setup and situation you are looking for, citeria to open and close position, methods to define potential levels to set stop order to take profit.
Another important part of the strategy`s rules defines risk-reward ratio, win rate, average profit/loss, maximum possible drawdown and number of losing trades in a row. These elements are necessary for the general idea to be profitable.