"Ridiculously simple" system

As you know, we already have all the components to establish a good trading system.

Firstly, we have decided to establish a band trading system. We will use daily charts for trading. Next, we will use simple moving averages to help us capture new trends as early as possible. The random index helps us determine whether we can enter trading after the moving average crosses, and it also helps us avoid short selling and buying areas.RSIIndicators can serve as additional confirmation tools to help us determine the strength of trends.

After figuring out how to set transactions, we need to determine the risk for each transaction. For this system, we are willing to take responsibility for every transaction100Point risk. Usually, the longer the time period, the greater the risk you are willing to take on, as your returns will be higher than those of shorter transactions.

Afterwards, we need to clarify the entry and exit rules. At this point, we perform manual backtesting.

Here is an example of a long trading setting:

If we look at this chart and look back at previous changes, according to our trading principles, this is a good time to go long.

When conducting backtesting, you need to record your entry price, stop loss, and exit strategy. And then you do it one by oneKMove the line forward and see what kind of transaction will appear.

In this special case, you can make a considerable profit! You can buy yourself some good things after the transaction ends.

When you find that the moving averages intersect in the opposite direction, a good time to leave appears. Of course, not all transactions will be so tempting. Some trading results are very bad, but you need to remember to follow the principles and adhere to the trading system.

Here is an example of using a "ridiculously simple" system to enter and short:

The moving average crosses, and the random index shows a downward trend and has not yet entered the short selling area. The relative strength index is less than50Our conditions have been met.

At this point, we need to enter and short. We need to record the entry price, stop loss, and exit strategy, and then plot the charts one by oneKMove the line forward and see what happens.

The result is that the trend is very strong, and the currency pair has fallen by nearly800After clicking, the next intersection appeared.

Isn't it simply ridiculous?

You may think that this system is too simple to make a profit. In fact, it is indeed very simple. You shouldn't be scared by simple things.

In fact, in the trading world, there is an acronym forKISSSomething.

It represents the principle of simplicity(KeepItSimpleStupid). It means that the trading system does not necessarily have to be complex. You don't need to place multiple indicators on your chart. In fact, if you make it simpler, you won't have too much headache.

The most important thing is discipline. We cannot emphasize this point too much. Okay, we can do it.

You must always stick to your trading system!

If you have thoroughly tested your system through backtesting and have been trading on a real-time simulated account for no less than two months, you will have enough confidence to believe that as long as you follow the principles you set, you will ultimately make a profit.

Believe in your system, and also believe in yourself!