
Our first look into strategy building. Section 8 is where the fun now starts. We will be looking at a few extra indicators here as well, some of the favourate ones I like to use. You will also see a live example of some of my trades. This would give a much more real understanding of what trading is like.
It comes down to the fact that we will always have losers showing up, the key is to make sure that when we win, we win more than we lose. This is also why I can trade a system that only wins 30% of the time, but still brings in a monthly profit of about 15-25% per month. Remember, Hit-Rate means NOTHING to the success of a strategy, It's about the profits it makes you.
An end-of-day example uses the Ichimoku cloud to align four-hour and daily trends, with cross signals and a 2:1 risk-reward.
Explore using leading indicators (RSI, stochastic, CCI, ROC, ADX) for entry signals and lagging indicators (moving averages, on-balance volume) for trend, with time-frame selection and live examples.
Define a good strategy with clear entry and exit points and a trade management system, using price action, support and resistance, indicators, signals, and multi-timeframe analysis to guide trades.
Analyze the Dow Jones 30 daily chart for a bullish Ichimoku cloud and price above it. Note bearish signals on the bottom indicator and plan four-hour entry signals above resistance.
Explore live examples of euro-denominated indices like the Italian MIB and French KAC, including points, euro per point exposure, and contract expiration.
Master end-of-day backtesting by combining weekly trend analysis with end-of-day signals. Use a daily entry candle after confirmation, MACD trend direction, and precise one-hour confirmations for timing.
Building a Trading Strategy on your own can be Difficult and Confusing! Getting it wrong can be Disastrous to your portfolio if you don't know what to look out for.
I Intend to make the process as simple as possible for you to follow and understand. For this reason, I look into what is needed in order to have a robust Trading Strategy & how to Structure it Efficiently for your own trading.
Join me in this video course series as I show you how I create various trading systems for different types of timeframes to target.
If you follow and keep to the Strategy Layout guide, you will find building new systems to be much more satisfying and easier than ever.
We will then go through the process of how to backtest the system and what to look for in a systems results from testing in order to fix possible issues that may come up.