{"id":9949,"date":"2022-10-14T06:51:36","date_gmt":"2022-10-14T06:51:36","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9949"},"modified":"2022-10-14T06:51:36","modified_gmt":"2022-10-14T06:51:36","slug":"summary-creating-your-own-mechanical-trading-system","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/14\/summary-creating-your-own-mechanical-trading-system\/","title":{"rendered":"Summary: Creating Your Own Mechanical Trading System"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/junior-forex-trading-system-summary.png\" alt=\"Creating Your Own Forex Mechanical Trading System\" title=\"Creating Your Own Forex Mechanical Trading System\"\/><\/figure>\n\n\n\n<p>There are many systems out there that work, but many forex traders lack the discipline to follow the rules and as a result, still end up losing money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Your mechanical trading system should attempt to accomplish two goals:<\/h2>\n\n\n\n<ol><li>Be able to identify a trend as early as possible.<\/li><li>Be able to find ways to avoid whipsaws (confirm your trend).<\/li><\/ol>\n\n\n\n<p>If it is profitable, then you trade your forex system live on a demo account for at least 2 months.<\/p>\n\n\n\n<p>This will help you get an idea of how you would trade your system when the market is moving. It is a lot different trading live than manually backtesting.<\/p>\n\n\n\n<p>Once you\u2019ve demo traded your system for at least 2 months and you are still profitable, you are then ready to trade your system live with real money.<\/p>\n\n\n\n<p>However, you must always remember to stick to your rules no matter what!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">There are 6 steps to developing your mechanical forex trading system:<\/h2>\n\n\n\n<ol><li>Find your time frame.<\/li><li>Find indicators to help you identify trends early.<\/li><li>Find indicators to help you avoid whipsaws and confirm your trend.<\/li><li>Define your risk.<\/li><li>Define your entry and exit.<\/li><li>Write your forex trading system rules down and ALWAYS stick to those rules!<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\">There are 3 phases to testing your system:<\/h2>\n\n\n\n<p><strong>First Phase:<\/strong>&nbsp;Go back and time and move your chart forward one candle at a time.<\/p>\n\n\n\n<p>Trade your system according to its rules and record your trades to see if it ends up being profitable. This is called backtesting.<\/p>\n\n\n\n<p><strong><\/strong><strong>Second Phase:<\/strong>&nbsp;If it is profitable, then you trade your system live on a demo account for at least 2 months.<\/p>\n\n\n\n<p>This will help you get an idea of how you would trade your system when the market is moving. It is a lot different trading live than manually backtesting.<\/p>\n\n\n\n<p><strong>Third Phase:<\/strong>&nbsp;Once you\u2019ve demo traded your system for at least 2 months and you are still profitable, you are then ready to trade your system live with real money.<\/p>\n\n\n\n<p>However, you must always remember to stick to your rules no matter what!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many systems out there that work, but many forex traders lack the discipline to follow the rules and as a result, still end up losing money. Your mechanical trading system should attempt to accomplish two goals: Be able to identify a trend as early as possible. Be able to find ways to avoid [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[831],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9949"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9949"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9949\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}