Constructing a good trading system
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    Constructing a good trading system

    We all know a trading system is essential for traders. A good trading system greatly facilitates success in Forex trading.

    Whats a trading system
    I would define a trading system as a set of rules and factors which can help a trader to determine when to open and when to close a trade. This is in the form of signals marked on a chart in real time basis.

    Constructing a trading system
    For constructing a trading system a trader usually uses the following tools

    1. Chart patters to study the market movement
    2. Moving averages
    3. Relative Strength Index
    4. Oscillators
    5 Bollinger bands

    A traders uses a combination of two or more of the above indicators to set the rules and factors that can give him the best signal to buy or sell a currency or commodity and also to close an existing open trade.


    a trading system can help us trade without emotions
    When we trade using a trading system we open and close trades depending on the signals provided.Trading using a trading system can help us to avoid emotions which are big culprits for big losses in trading. Of couse discipline is always essential.

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    Last edited by PROPENSITY100; 03-02-2015 at 09:55 AM.

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    Registered user Hukam's Avatar
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    Good thread mate, yeah discipline is very important in our trading, as I said many time in this forum that we need a good trading system to avoid emotion, a good trading passion, confidence, and good experience can help us to win all our trades in average every month or week in forex. As a naked trader I like Support and resistance use

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    Many forex trader might say one or two things they want in the market, that is how they would plan and work with good building of trading system they want to be using. Also, all the indicators above are good if the trader could pick just two out of them that would be validating one another trading signals in the market. but the issue of the emotional part as to do with trader himself, no indicator would fight it for you.

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    Registered user techboy's Avatar
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    Constructing or having a good trading system is one of the most important pillar or foundation in trading, but the key to have it comes from having a very good understanding about the basics of trading plus experience, we may have a very good strategy but if we cannot implement it consistently then all efforts will be in vain.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    Good attempt. Could you be more specific and provide any examples concernning every mentioned point? (1-5)

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    Quote Originally Posted by Value trader View Post
    Good attempt. Could you be more specific and provide any examples concernning every mentioned point? (1-5)
    Thanks for the advice friend. I am not as knowledgeable as you are but still I will try to explain what I know and what experience I have. First of all I would pick the bollinger bands that I like and use often.

    - - - Updated - - -

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    Last edited by PROPENSITY100; 03-07-2015 at 10:27 AM.

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    I will like to create new threads for each of my above points because they are good and useful tools to discuss. First of all I would open a thread for bollinger bands and they ways we can use it in our trading to earn some good amount of pips. Next I will discuss the Rsi which also I use in my trading.

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    Last edited by PROPENSITY100; 03-07-2015 at 02:24 PM.

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    Registered user techboy's Avatar
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    Constructing a good trading system is important, but we need to have experience and a thorough knowledge about the market in order for us to create an effective trading system, another thing beside from the technical aspect in trading, a trader must first fully understand the importance of having good psychology in trading for him to implement properly a good trading system.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    I use moving averages, this is my mainstay indicator. I used to analyze trends, analysis of market entry and exit. strategy is simple and profitable. I fit in with the strategy to follow the trend, and the moving average is suitable for trending market conditions

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    Quote Originally Posted by ngalapreceh View Post
    I use moving averages, this is my mainstay indicator. I used to analyze trends, analysis of market entry and exit. strategy is simple and profitable. I fit in with the strategy to follow the trend, and the moving average is suitable for trending market conditions
    Moving average is very commonly used by trade when trading. whether we use moving averages or bollinger bands we can benefit and earn pips on our expertise in these tools. So everything depends upon how well we learn and how well we can apply what we learned in our trading.

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    Last edited by PROPENSITY100; 03-07-2015 at 02:39 PM.

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