Build your own trading system !

Is that really possible to build your own trading system the answer is YES. And it is only way to make you a profitable trader, changing techniques and adopting different methods will always make u fail and feel miserable . Whatever system you are building you have to back test it 1000 times or more to see if it works most of the time and when it doesn’t work how to limit your losses . I will give an example how to start building a trading system on your own

1.Education : You should have enough charting skills to read price action or use indicators ( if you wish to do so ) perfectly . You have to master it first . This one reason why people loose money . Educate yourself so that even if u do mistakes you know how to correct them. To start building your  own trading system clear your basics Read about support and resistance zone , candles stick chart patters , naked trading techniques , Indicators . Few of these things are good enough to give u a profitable start

Goal : Learn to quickly identify zones on any chart

  2. Choose a catalyst : Which purely means what you have learnt till now . choose the best methods , indicators and back test it. It can be mix of last kiss with divergence , Or it can be big belt with Moving averages . Whatever method you will choose just make sure you back test it so many times and master that strategy

Goal : Choose the one trading catalyst that you want to build your expertise on

3. Back test : If you wanna take one thing from this blog the let it be Back testing , this  what differentiates a long term profitable trader from the pack . A back test can help you from falling when market is in a whipsaw . This is the only system which only allows you take most probable trades and restricts you to take less probability trades . This system will give the confident you need to put trades when it hits your zone . There are times when we look at the chart and thought to go long , but we never enter the trade and regret later seeing price going up

Goal : Risk 2% or less and double your demo account

4. Trade a small account :  A money that you can afford to loose , with no further explanation required . Just follow this rule without any questions asked and you will thank me later . Take your time try not to deviate from what u have learnt and done in the demo account you will start feeling anxiety , fear but you have to stay focused and keep following the system that u have built and back tested for months.

Goal : Double or triple your small trading account 

 5. Open a live trading account : Demo account done , Small trading account done, Now you have to  repeat the same in your main trading account off course this is not easy . The money u have invested now is your hard earned money and which you cannot afford to loose. But by now you are confident of your trading system . all you need to do is get better and better in things what you do and slowly increase your risk

Goal : Increase your risk % slowly per trade

Example : I will trade when the below conditions are met 

• Price should be in a downtrend
• When we  start to see divergence at 4 hr or at daily time frame
• We see a strong bullish engulfing candle at the bottom of the channel
• Entry to go long will be a few pips higher than the high of bullish engulfing candle
• Exit when price start to consolidate and bearish engulfing candle starts to print

 This is just an example of one small catalyst likewise create your own trading system , please back test it 1000 times into different time frames ,on different price charts and on different market scenarios . You will sail through all the hard times 

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