Advice on creating my first system?

It's been a few years now since I first started learning about trading and different types of analysis. In this time, I've covered the basic approaches to technical analysis - ranging from price action and candlestick patterns to technical indicators and Fibonacci tools. The problem is, I'm not sure how to piece together all the different things I've learned to create a strategy. How am I supposed to know what tools/approaches are worth giving more thought to and which I should disregard all together?

Any advice for someone who has learned the basics and is now trying to piece together their first strategy?

First of all Trading system section mean you "already created trading system"

This thread should be in the "Trading Discussion" section ... but I am going to assume the mods is going to move the thread anyway...

If you don't want a head ache: All I can say to you is just "copy people system and modify the system by adding extra indicators or REMOVE indicators OR COMBINING 2 different system together."

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If you want a head ache then continue reading:

#1 A system Must have some sort of RISK goal. Such as TP you DESIRE , SL you want to Risk...

#2 A system Must have "frequency" meaning don't make a MONTHLY system...Time frame... YOU WILL BE POOR.
Stick to 5min to Daily TF only so you can have "LOT of trades opportunity.

#3 A system Must have Tool/indicators that YOU KNOW EXACTLY how to use it.. Don't put it B.S "Sonic R Dragon Indicator" if you don't understand the LOGIC behind it. If you want another way to think it... MACD, STOCH, RSI, FIBO.. you MUST know how they work and how to use it it.

#4 Price Action and Candle stick are BACKUP ONLY. They are not a SYSTEM.. a System is straight out "mechanical always the SAME".
Just Imagine "samba , salsa dancing..." If you "start spinning on your head" it's not Salsa dancing...

#5 This is your/everyone timeline as forex trader:
1st year "try all the tools/indicator" 2nd year "copy people system and fail" 3rd year "you think all system suck so you create your own system which make sense if there is a wining system why bother create one yourself.... But during the 3rd year..you put horrible indicator left and right..and fail..
4th year AFTER MANY FAILURE TRIALS of creating your system.. you finaly "create one that you have TESTED and BELIEVE it can WIN

5th year ... you WIN........... there is not much to say...

10th year... you go bankrupt because you were greedy... ( i am sorry.... it's going to happen when you actually own the grail)...

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Side note:
I think i should explain more other wise you will be on the wrong track: " How am I supposed to know what tools/approaches are worth giving more thought to and which I should disregard all together? "

Every tool have it's uses. Not every tool work for everyone because of THE WAY They trade. Example Stochastic is and indicator that "say the market is Overbought" but to me It's a "breakout" so you should BUY the breakout instead of selling etc. DO NOT believe other people input on what is good or bad indicator.. LEARN the tool. USE THE TOOL. IF you WIN then KEEP USING THE TOOL...

If i say to you ADX and RSI is garbage indicator ... you just not going to put in your chart... What if that IS THE HOLYGrail indicator... You don't know that...
I know it's not for me.. But maybe it's HOLY for you..

- Good luck-

My advice would be the total opposite.

1# A system needs more then just a risk goal, you need a plan for every situation.
You need a stop loss and a take profit, but the hardest part is getting these right.
You need to know what to do in unexpected situations before they even happen.
Along with that you will need some kind of money management which tells you what lot size to use if you use x pips target or loss.
If you use lot size 1 for 1% profit with a 100 pip stop loss and a few moments later you are trading again a lot size 1 but with only a 10 pip stop you are taking to much risk.

Don't calculate your profit/losses in € or $ or whatever, think in %. And then realize 10% a day is to much. Even 10% a month is a lot and hard to realize year after year.

2# Don't trade the monthly? If he can find the perfect entry's on the monthly or weekly time frame, with the right money management, believe me he wont be poor ...
I used to trade the lower time frames, now i trade the weekly, daily and 1 hr. Much more relaxed, much more time to prepare my trades.
Much more time to leave my computer and enjoy my life with the same or maybe even more amount of money.
I believe more trades to get the target is also more chance of doing something wrong.
Off course there will be traders who can trade the retracements on the lower time frames and make more pips of the same move then i do, but they will have much more stress and i will have much more time to enjoy my life.

3# In my point of view a system does not need any indicators at all. The candle bars are the one and only "indicator" you need.
Go look for some youtube video's of professional well known traders you will see they almost all use no indicators at all.
Indicators will tell you what happened in the market and never will tell you what is going to happen.

4# Trading on price action could be a perfect system, if he knows what works for him with price action only?
You can find a lot of entry's by just looking at a chart with no indicators. If you have the patience to learn to trade this way.

5# Maybe is the worst of all. If you are willing to work/learn hard you can get successful within much shorter time.
And if you are going bankrupt after 10 years of successful trading you are the dumbest trader on earth ...

And last but not least, a holy grail does NOT exist.

Just my points, nothing personal Victor

Edit: This might be any interesting video to watch;



This is the thread where i found this video;

http://www.forexfactory.com/showthread.php?t=489175

Thanks for the help guys.