Trading strategy - Page 22
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Thread: Trading strategy

  1. #211
    A successful trade process is come with the time and through the power of hard work and through the better understanding we can make a any working system very accurate for winning so through the power of learning and having the skills of managing will ensure us to tackle the market and chase it in the better forms .

  2. #212
    Trading strategy is very important and there are many of them available for us to make but not every strategy is strong and reliable to trade with.If we have good knowledge and experience to choose the right strategy.A good trading system will surely give us the possible mean to earn well and we can achieve better result at the right point in the time.

  3. #213
    It is necessary for each trader to have his own strategy to be able to generate profit consistently. For sure, there are many strategies available for free within the web, but most of them are not efficient enough to be profitable for several reasons. First of all, some of the free strategies are too old. Markets incur changes, so something that worked fine 5 or 10 years age may underperform now, and the trader using such strategy would have to implement changes to keep it up-to-day.
    Another important point is that some strategies stop working when too many traders start to use them. Sometimes if the strategy is very popular, large institutional players could even use high frequency trading algorithms (or the HFTs) to act against traders with tight stops making them to get off the position. So, in most of the cases it would be better to avoid strategies everybody knows.
    Of course, it could be quite difficult for the trader to create his own profitable strategy. The process starts with the idea, that should be transformed to the strategy with the detailed rules describing the whole procedure of opening the position, placing stop orded and holding the position and closing it with profit. It could be based on indicators, chart or candlestick patterns or just on price action. One of the most difficult parts of whole this process is to test it properly. Most of the traders perform it manually using demo account, but this could be very time consuming and the results are not always reliable enough. The optimal solution could be to use special backtesting software like Forex Tester to speed up testing process and make the resluts more accurate. The idea of backtesting in general is to use historical data provided by the broker to test the strategy executing numerous trades and summarizing thier results to get average values of risk-reward ratio, win rate, loss and profit per trade and other important criteria. Having this important information the trader would be able to improve his trading performance substantially.
    Then, after the trader ensures that the strategy itself is profitable, it is possible to move towards the next step - trading using demo account to get familiar with the strategy. Only after being consistently profitable on demo trader should move to the trading on real account.

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