How can I develop/design my own trading strategy?
TRADINGFEATURED
"Focus on what you know/like best about trading"
First things first, to create a profitable trading strategy, you need a lot of trading experience/chart experience.
I have had many years of trading experience before I finalized my current strategy.
You won’t need that much but it does take a lot of experience of how the charts move if you want to start naturally spotting patterns and building a strategy from them.
The next step is an extreme amount of testing and trial and error.
To build a profitable strategy, you will need to first have a lose outline of your process, then spend time testing, recording data, refining, and improving that process until you have a specific set of rules = your finished strategy.
This is the time a lot of traders either give up or don’t take it seriously enough.
It does take a huge amount of time and effort to test, then make improvements, then re-test, and keep going through that cycle until you have an optimized strategy.
Here are some tips for building your trading strategy :
Make use of spreadsheets and record as many data points as possible. This will help you find the most effective trading rules to include, the best trading times, the best stocks, and much more. Data is our best friend.
Focus on what you know/like best about trading. For me, that means focusing on the 1H and daily chart as they are my favorite to trade.
Don’t give up if you have to start again many times. I can’t tell you how many times I thought I finally had my strategy cracked only to find a big problem that made me need to start again. If I had given up, I never would have got where I am now.
Credit: Quora