How you create a good trading strategy in 10 steps:
- Think about the idea and premise of your setup (trend following, breakout, reversal, day trading, swing trading, etc.)
Write down some basic rules for entry, stop, targetFind 10 - 20 screenshots of the perfect trades based on the previous rules and premisesAnalyze the collected screenshots and write down what they have in commonUpdate your rules from step 2 and get more precise based on steps 3 and 4Now do a backtest and find at least 30-50 trades in the backtestAnalyze the backtest results and adjust rules if neededDo another backtest and start experimenting with different exit, stop, and target strategiesFind the optimal set of parameters and write out all final rulesIf backtest shows profits, then take it on a demo accountDo you want to get more trading tips and insights from me?
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Disclaimer: The experience reports and comments constitute the personal experiences of our users. These are individual results that do not permit conclusions to be drawn about future developments. In particular, we make no claim that these are typical results that can be achieved by our users on a regular basis. Tradeciety can neither predict nor guarantee the occurrence of certain developments or the achievement of profits, nor will it do so.
Results may not be typical and may vary from person to person. There are inherent risks involved with investing and trading, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk.