I found an interesting article in Forex Magazine. У каждого трейдера рано или поздно возникает вопрос в создании собственной торговой стратегии. Someone uses ready-made strategies, but someone else's trading strategy may not be suitable for someone. It is then that the search for your own style begins., Your “грааля”.
And here is the article itself:
There are many great trading strategies, and buying books or attending training courses will really save time, but trading can also be an independent process. Many traders spend hundreds or even thousands of dollars looking for the perfect trading strategy. but, creating a strategy can be enjoyable, easy and surprisingly fast process.
To shape your strategy, you will need access to charts, that reflect exactly the time format, на котором вы будете торговать, objective look and notepad, to tag your ideas. These ideas can then be formalized as a strategy and “visually tested” on other charts. In this article we will walk through the whole process., from the beginning to the end, including possible questions, which may arise. This will allow you to start creating your own strategies for any market and for any time frame..
Time and place
Before a strategy can be created, you have to narrow down the graph options. Are you a day trader?, swing trader or investor. Will you trade on a one-minute or monthly time frame? Make Sure, that we chose the right time scale, which suits your needs
Then you must focus on a specific market., на котором будете торговать: stock, options, futures, forex or commodity contracts. Once you have chosen the market and time frame, Decide, what type of trade do you want to apply For example, you want to look for trade setups in the stock market on a one minute chart for day trading purposes and focus on stocks, that move within ranges. You can create a stock list, which are currently trading in ranges and meeting other requirements – for example, minimum volume and evaluation criteria.
Over time, certainly, the situation is changing, therefore stock lists must be constantly updated, to find new market instruments, matching your criteria, while tools, which no longer match your requirements, are excluded from this list.
Strategy creation and testing
Creating a strategy in this way makes it much easier to stick to your trading plan., because this strategy is your own and suits your preferences (as opposed to someone else's strategy).
For example, suppose, что внутри -дневной trader решил рассматривать торговые возможности на рынке акций на пятиминутном масштабе времени. He selected certain stocks from the list, which he formed according to some criteria. On a five minute chart, it will look for profitable opportunities.
Pay attention to price increases and decreases and see, can you find anything, which indicates these movements. You need to look at all possible indicators, like a trading session period, свечных моделей, graphic models, mini-cycles, volume, etc.. Once a potential strategy has been found, come back and see, did it work for other movements on the chart too. Could a profit have been made for the previous day, week or month, используя этот метод? If you are trading on a five minute time frame, then check it on a five-minute chart on historical data, но оцените ее эффективность и на других акциях, which have the same criteria, to see, how well it performs in different markets with similar parameters.
After that, how did you define the rule set, which would allow you to enter the market for profit, consider the same examples and rate, what would be your risk. Define, where your stop orders will be placed on future trades, so that you can limit the risk, but also not to be knocked out of the market by random price fluctuations.
Analyze the price movement after entering the market and see, where on your charts the stop order should be placed. When you analyze movements, look for profitable exit points. Where was the perfect exit point, and which indicator or method can be applied, to capture as much of the movement that has occurred? When considering going out, use indicators, candle patterns, графические модели, recovery percentage, trailing stop orders. Fibonacci levels or other tactics, to help capture profits from observed trading opportunities.
Depending on whether, how often do you want to trade, you can choose the appropriate trading strategy, which works either for long-term, or on short-term periods. Short-term market imbalances often occur, which allow the trader to generate consistent profits. These strategies cannot last longer than a few days., but they can, probably, successfully used in the future.
Save the results of all strategies, which you are using, in your journal and include them in your trading plan. When conditions become unfavorable for a particular strategy, you can refuse it. When the situation is favorable for a given strategy, you can use it for profit.
Additional nuances
Using historical data and finding a strategy, which works, will not guarantee making a profit in any market. Unfortunately, many traders do not test their strategies, а вместо этого экспериментируют с ними сразу в торговле. In this case, there is no real strategy, because traders don't test their ideas on historical data. It would be important to see, has your idea worked in the past, because, if the strategy has never worked before, it is hardly worth expecting, that she suddenly starts working. This is why visual testing – viewing on charts and applying new methods to historical data on a time scale of your choice, is critical.
Many strategies don't work consistently with the same effectiveness.. They show the best, then the worst results, and that is why it is important to maximize the market advantage of those, which still work. If something has worked for the past several months or for the past several years, that is, probably, will work tomorrow. But if we never used historical data, to test your strategy, then we can't even understand, what to expect from her. In this case, we may lack confidence in applying this strategy in the market for profit.. Knowledge, that this strategy has worked in the past, will render, thus, psychological support for your trading.
Trade must be carried out with sufficient confidence, so you can click on “trigger”, when there is a corresponding trade setup. This confidence is built on past data and knowledge., that this strategy is more common, than not, worked properly.
Keep in mind, that it's not about finding a strategy, who work in 100% cases. Actually, при таком критерии, we are unlikely to find any strategies at all. You just have to look for strategies, which bring in a net profit at the end of a certain period (of the day, weeks, years, etc.).
Conclusion
Strategies perform worse or better over different time periods. Sometimes appropriate changes must be made, to adapt it to the current market and your personal needs. Create your own strategy, or use someone else's, протестировав ее на временном формате, which suits your preferences. Using past data can give us some starting points for making more profit and help avoid losses in the way of gaining a trading experience.. Track the work of all strategies, which you are using, so you can reapply them, when conditions are favorable for this.
The list of ready-made trading strategies can be found at the link “trading strategies“.
And for those, who wants to use my trading method and system, you can sign up for the course “Teaching on the stock market“.
