The first step to being able to build your own trading system: Time cycle The first step in creating a system is to clarify which type of trader you belong to, whether you are intraday trading, or oscillating trading? Do you like to look at the charts every day, weekly, monthly,

Can build your own trading system
Create your own trading system
Step 1: Time cycle
The first step in creating a system is to clarify which type of trader you belong to, whether you are intraday trading, or oscillating trading? Do you like to look at the chart every day, weekly, monthly, or even annually? How long will usually hold?
answers these questions and will help you choose the appropriate trading time period.

Of course, in actual trading, multiple time periods must be referenced, but here is the main time period you use to select the trading signal.
Step 2: Find signals that can identify new trends
Given that one of our main purposes is to identify new signals as early as possible, we need indicator signals that can help us accomplish this task.
moving average is one of the most commonly used indicators and its usage is relatively simple. Just wait for the fast moving average to cross the slow moving average. This is the most basic "moving average cross" trading system. The
moving average is the easiest to use among many indicator signals.
Step 3: Find a signal that can confirm the trend
Another main goal of our trading system is to filter the interference of false signals, which can be achieved with the help of other indicator signals.

There are many indicator signals that can help us confirm the trend. Here we recommend MACD, oscillator and RSI. As you become familiar with more and more indicator signals, find some signals that suit you and integrate them into your trading system.
Step 4: Define risk
A very important step in building a trading system is to confirm the risk value you are willing to pay in each transaction. Many people don’t like to discuss losses, but in fact, a good trader will definitely think about possible losses before making money.
You have to provide your transaction with a floating space, but not too large.
Step 5: Defining the entry and exit points
determines the risk. The next step is to determine the specific entry and exit points to obtain the maximum profit!
Some people trade immediately after the indicator gives the trading signal, regardless of whether the candle in the current cycle has been closed; others will wait until the candle is closed before trading.
According to the experience of old investors, it is best to wait until the candle is closed before deciding whether to build a position.
For the exit point, you have several ways to choose:

Move stop loss : If the market moves X point in the direction of building a position, then move the stop loss X point in that direction.
Fixed target: Set a fixed price target and close the position after waiting for the market to reach this target. There are many ways to calculate the target price. Some people use support and resistance levels as their targets; others use fixed income, such as 50 points per transaction as their targets. No matter how you finally choose to calculate the target price, just stick to it!
conditions to stop win: Set a series of judgment conditions, and close the position when all are met. For example, when your indicator calls back to a certain level, close the position.
Step 6: Write down your system and strictly abide by it!
is the most important part of building a trading system. You must write down your system rules and strictly implement them. Self-discipline is an indispensable personality for a trader and must strictly abide by the rules of your trading system. No matter how good the system is, if it is not executed properly, it will be difficult to generate profits.