How to build a profitable trading strategy? any suggestion from expert?

[somrat4030]

Hi,

I want to build a personal profitable strategy for my trading session. How can i build it? Any suggestion from experts? I want to know. Please feel free to share your thought.

Advance Thanks

 

[Profesor Pips]

Hi, I can put 3 pesos to this topic, but you have to write more details like, which time zone you are? trading style you prefer? Regards Greg

 

[somrat4030]

Hi, I can put 3 pesos to this topic, but you have to write more details like, which time zone you are? trading style you prefer? Regards Greg

Thank you so much for your help. I am from Asian Time zone. And i like to trade day trading.

Thanks and regards

S

 

[Profesor Pips]

Day trading is a trading on low time frames like M1, M5. This is hard task to create profitable strategy ( backtesting, hardware, software ) and trade in this noise.

 

[somrat4030]

Day trading is a trading on low time frames like M1, M5. This is hard task to create profitable strategy ( backtesting, hardware, software ) and trade in this noise.

Sir, can i make profitable strategy for swing trading platform?

 

[somrat4030]

I use a simple grid strategy and open new positions at key support and resistance levels. I don't use any Martingale, I open all grid positions with the same lot size. I don't use any stop loss, I prefer to trade forex as I would invest in any other asset class and average in to gain the best entry price. I will open a grid when price is extremely overbought or oversold (at key supply / demand levels) and then take profit when price reverses. It's a simple strategy that has worked well for me for the past 5 years but it's important to keep lot size small and eliminate all emotions, because there are extended periods of drawdown. This kind of trading is not for everyone but it works well for me. Better to use Weekly and daily time frames and hold trades for several weeks... that's where the big profits are.

Ok , i understand. But without using stop loss, it's doesn't risky ?

 

[somrat4030]

It depends how you view risk. Yes, price can go against me and it is possible to spend considerable time in a drawdown situation... but I view getting stopped out as an equal risk, in that it guarantees or realises a loss on the account. I prefer to manage losing trades by opening another grid position at a strategic level, which usually allows me to get out with profit or at least breakeven when price retraces or reverses trend. I trade forex much the same as I would invest in stocks, it's all about finding the best average entry price. The important thing with grid trading is to NOT use Martingale. That's when things get dangerous.

Thanks for explanation.

 

[Spartan]

I use a simple grid strategy and open new positions at key support and resistance levels. I don't use any Martingale, I open all grid positions with the same lot size. I don't use any stop loss, I prefer to trade forex as I would invest in any other asset class and average in to gain the best entry price. I will open a grid when price is extremely overbought or oversold (at key supply / demand levels) and then take profit when price reverses. It's a simple strategy that has worked well for me for the past 5 years but it's important to keep lot size small and eliminate all emotions, because there are extended periods of drawdown. This kind of trading is not for everyone but it works well for me. Better to use Weekly and daily time frames and hold trades for several weeks... that's where the big profits are.

How about using trailing stop-loss? It will take care of both- profits and unnecessary losses.

 

[Whimsical]

For making a profitable strategy, traders should understand their trading style. He should conduct a self-analysis, which includes, your risk tolerance, what time-frame you are comfortable trading like long-term or short term trade, and number of trades you can/ want to trade per day. After that he can pick one of the trading strategies. For example: if he has high low tolerance, wants to trade for a short time frame and wants to make frequent numbers of trades, he can pick a scalping trading strategy.

 

[somrat4030]

For making a profitable strategy, traders should understand their trading style. He should conduct a self-analysis, which includes, your risk tolerance, what time-frame you are comfortable trading like long-term or short term trade, and number of trades you can/ want to trade per day. After that he can pick one of the trading strategies. For example: if he has high low tolerance, wants to trade for a short time frame and wants to make frequent numbers of trades, he can pick a scalping trading strategy.

Ok, understood, Can you explain more about your experience and knowledge.

 

[schmutz]

I am not an expert but something that I did in the beginning was to observe and study successful traders and then adopt the strategy which led them to success. It is always better to follow the footsteps of skilled traders in the initial stages as it gives you a blueprint to work with. Once you get familiar with the market and trading techniques you can modify the strategy to suit your needs or even try out a new strategy. But it is always recommended to start with a strategy that has been tested and proved to be working well.

 

[Finicky]

You will have to do your own analysis and research to build a profitable trading strategy. You can also use a simulator to test your strategy in different conditions to be sure that it is the perfect strategy for you.

 

[Hogwash]

While you build your trading strategy, make sure that you keep risk management as a part of it. There will be many instances when you won’t understand what to do. But when your strategy is well-planned, no market movement can affect you more than you are ready for.

 

[timothydanie]

Newbies must be able to figure out their trading style, the budget and how much risk they are willing to take as they start. Money and risk management is very important and must be a top most priority as it reduces the risk quotient a tad bit. Experts, often use their past mistakes and revise their strategies analysing the market to suit the trend that’s matching their profit making goal.

 

[GriderGlib]

Your strategy depends on a number of things like your personality, knowledge, and how much amount you are ready to put at risk. You probably need to first spend your time on finding that out and the work on your strategy.

 

[Symphony]

Professional traders use all kinds of different strategies to profit from the Forex markets. The truth is that there is no single Forex trading strategy that is the best. The type of strategy that works best will depend on the current market conditions, the FX pair traded, the amount being traded and the frequency of trading activity. But do not be put off by the variety of strategies that you can use. There are many different strategies that you can try so that you can find the ones that suit you best. The key similarity between all professional trading strategies is that they try to look 'behind the price movement' and understand what is really going on with supply and demand of a forex pair.

 

[Astrogony]

All that you do in your trading career depends on how well you understand the market and how well you have learnt your lessons. Make use of your knowledge to set conditions for your strategy and decide the risk that you can afford to take per trade.

 

[Paramedian]

You should keep one thing in mind that forex trading is not easy. Everyone wants a profitable strategy but they don’t want to accept a single loss. Majority of people change their strategy once they face a single losing trade, which is why they are never able to figure out which strategy is working for them. You need to test the strategy at least for 3 months. Decide what time frame is suitable for you and stick to it. Stick to fixed lot size in order to measure your strategy. Don’t over trade and keep aside your emotions while trading.

 

[Curtate]

Your plan will depend on a variety of elements, including your personality, your knowledge, and the amount of money you are willing to risk. Most likely, you should initially devote your time to learning that and developing your plan.

 

[Heirloom]

Your plan of action will depend on a variety of factors, including your personality, your level of education, and the amount of money you are willing to risk. Probably the first thing you should do is spend time learning it and developing your plan.