Ultimate Guide to Creating Your Own Trading System

Hey traders! I recently wrote a blog post that creates a foundation for creating your very own super awesome, probably mediocre (for the moment) trading system that could very well be the starting point to you trading consistently profitably.

The post is meant to be an antidote for those system hoppers out there who need to just create something that resonates with them, that they will trust, and spend time working on that bad boy until they become awesome traders.

THIS WILL STILL REQUIRE DISCIPLINE AND HARD WORK. I can’t stress that enough.

The big advantage of this over choosing someone else’s trading system is this.

It’s inherently yours.

It works with your beliefs and with your expectations. You start with a tattered, bastard of a system that you create from nothing and then you make it awesome and even more yours with hard work and concentrated effort.

This journal is about what would be my system. I write about my beliefs and therefore trading concepts in the blog and this journal will be me showing how I turn these beliefs and concepts into something awesome over time.

Each post will explain my trade plan prior to opening my position and I’ll review each trade on closing. You’ll have to journal and log your trades too if you want to create your own awesome trading system, so go on ahead and do so.

Keep in mind that the blog post is only part one of a series so maybe wait until you’ve created some more rules and structure to your foundation system before you start testing. You’ll read about that in the coming posts.

Well, that’s the history and genesis of this journal, follow along if you want but if you are struggling at the moment, I urge you to seriously consider doing this for yourself.

Let’s get better every day, starting now.

http://tradergrowth.com/ultimate-gui...rading-system/

One of two of todays trades that are currently open. GBP/JPY taken on the H1.

Plan: Buy G/J on rejection to prior highs and EMA in line with current trend reversal and negation of the gap. SL behind the technical levels and targeting resistance at 172.41.




Second trade, the DAX! I don't normally trade this wild thang but alas there was a decent looking setup so I took it.

Plan: Sell Dax on retracement to resistance and EMA. Large TF trend is still strongly bullish but we're currently at daily resistance. SL behind resistance and I'll be aggressive with moving it due to potential pressure from the prevailing trend. I'll be targeting 9610 area if price breaks down.



I'll review these trades once they're closed.

Dax is closed for a small loss. I'm only trading 1% per trade for this journey, I can trade at that amount quite comfortably and not impact my perceptions of the market.



In review:

The DAX is clearly in a larger time frame uptrend and it's very possible that the short I was taking was in the context of a larger time frame retracement. More importantly than this though is my stop placement. It's so tight behind that resistance level, I really should've given it some more room whilst maintaining my risk. Overall, a good trade where I was patient on entering. I felt fine going in and am ok with the loss.

Stop loss moved to BE and half my position taken off. Price seems to be pausing at the prior high and it's my bed time

Good luck trading guys, let me know how you get along with your own foundation systems.

Well my G/J closed today as I was dragging the stop loss up. it ended up being a much larger trade than I'd planned for. In review I'm really happy with the trade.



No setups immediately jump out at me this evening but I will keep my eyes peeled for any opportunities. The G/U retracement was too shallow for me to look for an entry at the moment but if gold rallies a little higher, I'll enter a short trade.

edit: Excuse the wackiness with my profits so far, the couple of trades I took prior to those logged here had different risk parameters.

Entry on the DAX.

Plan: Short the DAX at resistance / supply level in the context of a sideways market. Stop loss above recent heights, target just above recent lows. I'm using a fixed stop due to the sideways market.

I made a mistake with this at entry with too much risk (I misjudged the pip value on the dax). I closed out the excess positions as soon as I realised.

And the DAX is done too, another win for the week.

In review: I was very conservative with the PT for this trade due to the sideways market, not even targeting 2:1. This makes sense to me given the current price action and I'll continue trading sideways markets like that moving forward.



The system is going suspiciously well for the moment (it's only my foundation, it's not meant to be a keeper haha!) but it could simply be a random grouping of winners. It'll be interesting to see how it (and I) perform over the next few weeks and any quirks or improvements I discover along the way.

Have a great day / night, I'm off to bed. All the best.

No setups for me today! Almost got into a EUR/JPY long but price didn't quite get to my order.

I've also finished writing Part 2 of the "Create Your Own Trading System" series and will hopefully have it up tomorrow

Have a great weekend everybody.

Hey Traders!

Part 2 of my series, "The Ultimate Guide to Creating Your Own Trading System" is now out! It focuses on creating rules to protect your positions and take profits.

Hopefully you find it valuable.

http://tradergrowth.com/create-tradi...rofits-part-2/

Asian spread was unkind and I missed out on this trade by a bees d*ck. Oh well, will keep you posted with other opportunities.