My Understanding of The Trading System



Basically trading system is we make a rule, criterion or pattern of conditions in which we will make entry, exit and take profit or cutloss. Of course, based on what we understand. We also calculate the accuracy or level of success. So that we can manage our money management. Usually to know we can do a back test or forward test of the rules that we created earlier.

Well usually use indicators to help facilitate us in making our rules. But there are also only use candlestick. The important thing is that we understand the tools that we will use. if we use the indicators as a tool then we also need to know how this indicator works on the chart. and the same also if we only use candlestick then we also need to know the candlestick patterns and support resistance etc..

So basically every trader is free to determine and choose or create his trading system. The important thing is that we know where the best opportunities to achieve a profit based on the rules we have set previously.

There are so many rules that can be developed depending on the individual trader. So do not be surprised if there are thousands of trading systems were introduced in the world of forex.

And all the problems it will generally be returned to the trader's how it looked at a chart and interpret it. We can use other people's trading system but, we must have a common understanding with the creator of the trading system.


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