By reading this article about how to create your own strategies, will consist you have a much better
about how the idea of these strategies. You will also learn to know whether your strategy is working as it should or not, which means you will be more able to filter and refine deals and make the most of good opportunities.
You must learn to create your own strategies requires a lot of work that can be very boring, but it gives you an opportunity to observe how the prices move up close. The market study will help you improve your information, which will allow you to adjust and improve the old strategies as well.
Create a strategy
The first operation of any strategic planning process, and as soon as you generate some plans, you can move to a more profound stage of a test phase of these plans. Testing phase includes adjusting and revising the plan based on the information that has been obtained through the use of trading through a demo account. Once you have your strategy profitable through numerous experimental deals, the risk can be with a real money on a new strategy.
All you need to generate ideas for your strategy is to look at the charts, seeing the opportunities available, and then ask questions about how to take advantage.
Access
The price movements are offering profit potential. Examine the flour for some price movements on the price chart, and then ask yourself:
• What is the reason for this move? Is it a particular style schemes prices? Or correct the trend line? He had to move because of the time of day, press release, or penetration (or reflux) for resistance / support? Level
• What is the reason for the implementation of the deal is that you will use to engage in this process? The reason for the implementation of the deal is a particular situation allows to determine trading points in real time.
• Is there any indication that can help determine the cause of the implementation of the deal, or you could use the cursor to confirm the entry? Will you be useful Fibonacci corrections?
• Is it possible to use to buy or sell some extent limit order, or if you need to use the command prompt implementation, you will fill your order in the market conditions that are moving quickly?
Exit
Now you must search for a way out of this deal, which produced the trading Login signal. This stage is more important than the stage of entering the deal, because the exit that will determine the amount of profit or loss. In the case of binary options trading, will be the percentage of your risk and steady until your profit, so some written questions below will not be applicable. Then, rather than focusing on questions about time off, and how to choose the right time to close the deal.
• Have there been any indication by the reflection of price movement which you are trying to get it? The indicators could help in this regard, was the movement of the stock price before the slow reflection? Is the price reached a support or a task or a certain level of Fibonacci resistance area?
• Are different criteria used to engage in the deliberative process? When different? This could be a point to come out.
• Is it possible to use mobile endowment? Maybe you could use the profit goal, when you want to collect a certain amount of profit, such as the ratio of reward to risk ratio of 2: 1, or take a profit when you have $ 200 or 20 points. The following examples are examples of fixed targets.
Risk Management
This section is a discussion at the end, but the most important. You get the best entry and exit points, but in the end all strategy may pass them losing trades. If risk management and capital has been unable properly, these loss-making deals that could eliminate you.
• Look at the rules of entry and exit that you have created. What is the size of the deal, which could be used at these points? Do you have the capital required to participate in these kinds of deals?
• Based on answers to written questions above, what is the risk of every transaction?
• Try not to risk more than 2% (preferably 1%) of your capital at any time. When answering written questions above, keep in mind that if the transactions carry a big risk, the strategy is not worth the candle.
• Is the profit potential of the deal and allow justify the risk? Basically, you should be less loss of profits, that were not the case, it means you need to re-evaluate your strategy.
the test
The testing process outside the scope of this article, but it is the next step. Now you have a plan, and you write down your ideas on how to enter, exit and risk control. Now, check your price charts to find more entry signals. How will the performance of the strategy? If they look promising, then tested it in more deals or tested in a demo account. It must finance strategic real money only when you have composed a history of profitable operations and transactions of this strategy. If the performance of the strategy was not good, you need to re-evaluate.
Then taking into account whether the strategy can be applied in other time frames or in other markets. See also whether it can be applied to the movements of larger or smaller than those that are currently monitored by the prices. Try to know whether the strategy work best at a specific time or on a particular day, if there was a bad performance day, or a specific time of the day, do not trade in that period. Are there ways in which you can apply additional modifications or trading filters more comfortable to improve strategic performance.
