So far we have been talking about your own trading style and what kind of trader you are going to be judging by your trading style but think about it like a skeleton that you need to put some muscle and meat on. And that is exactly what we are going to do even though it sounds pretty anatomically.
But yeah. Let’s see.
The first point we are going to discuss are trading systems. And whether you can really make one on your own.
The internet is filled with propositions to purchase trading systems. But they usually cost a lot. Some of them even cost as much as thousands of dollars. But I am pretty sure that you would rather spend that money on your trading and not give it some random people on the internet.
And the first type of a trading system is the easiest especially when it comes to making your own. I am of course talking about mechanical trading system. It is a system that is very akin to trading signals. They basically tell you what to do, with which asset and what trading technique to adopt with your favorite asset groups.
The name mechanical comes from the fact that all of the information given by the system derives from analysis and has no emotional component to it at all. All you have to do is blindly follow it and never think twice about it.
Sounds easy enough, right? Well, does it sound easy enough to make one on your own?
Let’s see how you can do it.
Well, your system needs to be simple enough for you to understand but complicated enough for you to see the existing trends and avoid unfortunate movement of the market. These are the pivotal and the most important parts of a trading system. Without it there is no point in making one, you know?
So, your main task would be learning all the ways that you can use and implement for identifying a trend early on and seeing when it can reverse. You also need to know how to distinguish between fake breakouts and the real ones.
Al of these was previously discussed by us in this section, so the one thing you need is to go through our old lessons.
But that is only for mechanical trading systems. The further we go, the more complicated it can get.