Specifics of building a system with independent

Specifics of building a system with independent

Specifics of building a system with independent

Let's look at the procedure for forming a Forex trading system based on the same principle that Henry Ford used to consider the process of building a car. Initially, interchangeable parts are taken into account, which are progressively combined by analogy with the Assembly of each element of the car.

Specifics of building a system with independent components on Forex

After we note a very good performance of one of the system components of its specific option, you should arrange it in a separate block, so that it is available for use in the event of a need for the function it performs. A thorough review of each element of the system should be performed, justifying its ability to effectively solve the task assigned to it.

Let's imagine that in the end we got a whole series of blocks of this kind, the components of which make it possible to solve a variety of problems.

Before proceeding directly to the formation of a new Forex trading system, it is necessary to systematize all blocks according to a certain structure according to the General scheme on the basis of which the formation of a new trading system will be carried out.


Stages of creating a new Forex trading system

 

Stage one: choosing the market

Before you start developing a trading system, you need to think about the markets where it will be implemented. Such markets should have good liquidity so that you can open and close positions at any time you want. In addition, they should have pronounced long-term trends.

The second stage is to choose a trading system in accordance with certain market conditions.

The ideal option is when there is a large selection of trading systems that are suitable for certain market conditions. Under these conditions, it is also necessary to determine the set of criteria that will be used to select the system in accordance with specific conditions.

It is necessary that the systems are presented in the following variety: a system that follows a trend; one that works well in the absence of the latter; a system that makes a profit by staying in position until the trend ends.

Each of the systems can function in a trend of different duration.

 

Forex trading systems

 

the Third stage: choosing the option of opening a position – making an entry.

There are three categories of elements that are responsible for completing this stage:

Trend identifiers that indicate the direction of market movement.
Installation IDs that indicate that a position can be opened soon.
Trigger entry mechanisms that signal the need to open a position at this moment.

 

The fourth stage: selecting the option to close the position – exit.

 

The exit from a position is also regulated by several groups of elements that define several types of exits, represented by:

initial risk regulation Outputs. Often represented by a fixed dollar number, or a percentage of the state. This type of exit limits the maximum possible losses and helps prevent losses in excess of the amount that was planned.
Tracking type of outputs. If there is a sharp movement in the direction of opening a trading position, this option helps to maintain some profit.
Outputs when trends change. They warn you about the need to close positions when the trend direction reverses. They provide automatic closing of a position when the market direction is obviously incorrectly chosen.
Exits that protect profits. When a profitable position is reached, this type of output protects it from being converted into a loss-making position.
Exits that save basic income. They come into effect to protect the main share of revenue, provided that profitability is very high.

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