In this video I explain the process behind developing your own rules-based forex trading strategies. There are 4 elements in every trading strategy:
1. Conditions
2. Entry Reasons
3. Stops & Targets
4. Risk Management
And there are 5 steps to developing a strategy thesis:
1. Come up with a strategy idea/thesis based on your observations.
2. Write down very clear rules on what market conditions you plan to trade.
3. Write down very clear rules on what entry reasons you plan to use.
4. Write down very clear rules on what indicators and settings you plan to use.
5. Write down very clear rules on what your stops and targets will be.
Once you have completed this process, then you can begin backtesting your ideas to see if they have an edge over the markets.
Backtesting Template:
ATR Stop Loss Indicator:
Pullback Indicator:
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Disclaimer:
The content covered in this video is NOT investment advice and I am not a financial advisor. The material covered and the resources offered are for educational purposes only. Always do your own research and only execute trades based on your own personal judgment.
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