In this episode of Truth About FX, Walter digs into testing trading strategies and just how important it is to carefully manage your exits. He shares his three basic process on how to crack the confidence shell and be able to trust your system when you choose to go live.

Hugh also shares some useful tips on how he was able to overcome his trading barriers.

Download (Duration: 08:10 / 9.35 MB)

In This Episode:

01:25 – buying a house or a horse

02:25 – a bit quirky

04:03 – a little boring

05:12 – fruitful avenue

07:05 – split it

Tweetables:

Focus on the goal of trading confidently. [Click To Tweet].

What really matters is the management of the exit.  [Click To Tweet].

Use your system in a forex tester  [Click To Tweet].

Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.

Hugh: Hi, Walter. We’ve got a question here. It’s a little bit broad but I know both of us get this question a lot. I’d like to see what you’re going to say about it. He basically just says, “I need help testing my strategy to go live.”

Walter: It sounds like the question is “I need help testing my strategy.” So, the assumption is “I have a strategy. I have a strategy and I want to test it and go live.” First of all, congratulations because you’ve identified one of the main issues which is you’re lacking confidence.

How do you build confidence? I read this question as “I do not have confidence in my system. I want to trade live. How do I get from where I am now to where I want to be, which is trading this confidently live?

Great question. This is what you do. You do a complete… It’s sort of like when you buy a house or, I guess if you are going to buy race horse or a dog or something like a greyhound race dog. What you’ll do is before you buy the house — or you buy the horse — you’d have someone come in and say look at it.

You’ll say, “Okay, this is a pretty good horse” or, “This horse has a gimpy leg”. Like, if you are going to play in the NFL, you’ll play in the NFL in the National Football League and what they are going to do? They poke and prod you, they’ll x-ray you, give you an MRIs and make sure that you haven’t been completely beaten up before you’ve got to NFL.

They want to know what is wrong with that knee or that shoulder or whatever. The same thing with the house, they want to make sure there weren’t any termites or foundation is cracked or the plumbing is a bit off or whatever.

So, that is what you do with your trading system. You do the same exact thing. The way that I recommend doing this is to simply go through basically like a 3 or 4 steps process depending on how you see it.

Number one is you use this system in forex tester. The link in the shownotes — you can get forex tester, you can get the course on how to use the forex tester for free — I’ll link that in the shownotes to...