[Summary] Create your own mechanical trading system

Many systems operate well, but due to the lack of principles among many traders, they are unable to follow the rules, resulting in losses.

Your trading system is attempting to achieve the following2Objectives:

1. Be able to identify trends as early as possible.
2. Can avoid double losses(Determine trends)。

If your trading system can make a profit, you can trade on a real-time simulation account at least2Months. This will allow you to understand how you should trade in the face of market fluctuations. There is a significant difference between real-time trading and backtesting.

When you have been trading on a real-time simulation account for two months and still make a profit, then you can invest capital and start real trading. However, you need to remember that in any situation, You must stick to your rules.

There are six steps to creating a system:

1. Find your time frame.
2. Find indicators to help you detect trends as soon as possible.
3. Find indicators to help you avoid losses and confirm trends.
4. Identify risks.
5. Determine the entry and exit methods.
6. Write down your trading system rules and follow them.

The testing system undergoes three stages:

1.Going back for a period of time, root by rootKMove your chart forward with the line. Trade according to the rules, record your transactions, and see if you make a profit in the end. This is called backtesting.

2.If you make a profit, you can trade on a real-time simulation account at least2Months. This will allow you to understand how you should trade in the face of market fluctuations. There is a significant difference between real-time trading and backtesting.

3.When you have been trading on a real-time simulation account for two months and still make a profit, then you can invest capital and start real trading. However, you need to remember that in any situation, You must stick to your rules.

However, regardless, you must always remember to abide by your rules!

Now, the lawyer requests us to supplement the legal content:

The assumed performance results have many inherent limitations, some of which are described below. No account can achieve profits or losses similar to those shown. In fact, there are frequent differences between the assumed performance results and the actual results achieved by any specific trading project. One limitation of hypothetical performance results is that they are usually prepared using hindsight. In addition, assuming that the transaction does not involve financial risk, and there are no hypothetical transaction records that can fully explain the impact of financial risk in actual transactions. For example, in the case of trading losses, being able to withstand losses or adhering to specificforeign exchangeTrading procedures, which can also have a negative impact on the actual trading results. In general, there are many other factors related to the market or the execution of any specific trading items that cannot be fully included in the assumed performance results, all of which may have an adverse impact on the actual trading results.