6 steps to create your own forex trading

system The main objective of this article is to guide you through the process of developing your own trading system for Forex trading. While the development of a system does not take too long, it can take a long time to become effective. Therefore, you must be patient, because in the long run, a good trading system can generate a lot of money. Step 1: Time frame The first thing to do when creating your trading system is to know what type of operator you want to be. Do you want to be a merchant for 1 day or 1 hour? Do you want to see graphics every day, every week, every month or even every year? How long do you want to keep your positions open? ^

Answering these questions will help you determine the term
for your operations. Although you can also analyze graphs with different time
periods, this is your main time frame that you use when searching for signals
to open or close positions. He

passed 2: Choose indicators to identify a new trend Since one of our goals is to identify trends as quickly as possible, we need to use technical analysis indicators to help you achieve this trend. For example, moving averages are one of the most popular indicators that help operators identify trends. Normally two moving averages (one slow and one fast) are used and the fast is to slowly cross up or down. This is the basis of a so-called system based on the intersection of moving averages.

Step 3: Find indicators that confirm the trend The second objective of our currency trading system is that it has the ability to avoid false signals and avoid falling into false trends. To do that, we must ensure that we can confirm a new trend based on other indicators when it starts showing. There are many indicators that confirm trends, such as: MACD, Stochastic and RSI. If you are familiar with the indicators, you will find some that you prefer others and that you can integrate into your system.

 

Step 4: Define the level of risk When developing the system, it is very important that you define how much you want to lose in each operation. Very few people like to talk about losing, but in reality, a good operator first thinks about what they might lose before considering how much they can earn. The amount of money you are willing to lose varies greatly from one dealer to another. You have to decide how much space is enough for your operations to breathe, but at the same time you do not risk much in a single operation. In the following lessons, we will explain more details about money management. Money management plays an important role in terms of the risk you must assume in each operation

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