The trading system is the most reliable source of obtaining net profit in the financial market. For some reason, most traders ignore it and continue to trade guided by the leadership from above. However, this approach does not lead to anything good and only provokes a loss of investment capital.
That’s why, I strongly recommend every stock speculator to take care of creating a trading strategy, which is a specific roadmap for the fix api trader. After all, trade as a business. It requires maximum focus on the result and systematization of all processes. And only this option for working in the fix api forex market is profitable.
To create your own trading strategy, you need to implement step-by-step blocks. These logical blocks will form a complete trading strategy.
Key blocks that should present in each trading strategy:
- The full description of the trading algorithm block. Before applying technical indicators or purchases/sales levels of the financial tool, you need to understand the internal structure. You should clearly understand whether your system is trendy or countertrend. Do you work on technical indicators or only on fundamental analysis? Also in this block, it is necessary to record the working time frame (http://forexrobotshub.com/2017/11/07/what-timeframe-should-i-trade-on/ ), a list of tools and working hours. This will later allow you to find the weak point in the system and exclude it.
- The tool analysis block. The second block presents the tool analysis. I mean the fact that you have to keep records of the asset analysis so that when a future signal appears, you can rely on the historical indicators. Here, you can record the status of the trend, the breakdown of the key turning points, and the influence of fundamental data on the tool.
- The risk and money management block. This is the most important block in the trading strategy. I believe that the future result depends on it, since the risk control is already half of the success. In this block, it is necessary to specify the amount of the transaction in the fix api MT4 trading terminal, the risk percentage that will be included in the work of the trading strategy, and the risk percentage in the context of each trading operation.
- The presence of trading signals to enter the trading position block. Here, you must already describe the factors under which you will trade. This can be both the intersection of the moving averages, and the retreat from the levels. It depends on your algorithm and trading methodology. But you must clearly know under what conditions you make a deal and follow only these parameters.
- The presence of grounds for leaving the position block. If you have already opened a deal, you must clearly know where it should be closed. Thus, set stop loss and take profit. I recommend always to leave the market only taking in consideration these values and to not cancel the trailing stop conditions, so that in case of a correct forecast and the turn of the market you could come out with a minimum yield. Also, this block should be coordinated with the risk management, so that the exit from the transaction does not cause additional risks.
- The analysis of results block. I advise everyone to analyze their results and actions during the trade. This will eliminate the ineffective opening of positions on the basis of the operations that are already performed. Without this block, your will not be able to develop your trade in the future and introduce new and more effective analysis tools.
By realizing all these blocks, the trader will have at his disposal a ready-made trading strategy, which can be used in the fix api forex market. Moreover, if the results are successful, it will be possible to create a working algorithm (http://forexzzz.com/product/forex-zzz-lock-arbitrage/ ) on the basis of these blocks, so that the system can display results without additional intervention of the trader.