Here are some questions you can ask yourself to evaluate your trading system:
* **Does your system have a clear and easy to understand strategy?**
Your trading strategy should have clear basic principles that you can easily explain to others. Your strategy should include answers to the following questions:
* How are you trying to make a profit?
* What information are you using to make your decisions?
* How are you managing your risks?
* **How often are the signals your system generates correct?**
You can use a backtest calculator to check the accuracy of the signals your system generates. These calculators analyze your system's past performance using historical data.
* **Can your system handle a variety of market situations?**
Your trading system should be able to work well in a variety of market situations. For example, your system should be able to work well in both bulls, bears, and sideways.
* **Can your system help you reach your financial goals?**
You should set your financial goals before starting to use your trading system. For example, you might want to earn 10% per year or double your investment portfolio in five years.
If you can confidently answer these questions. You have a chance of success in FOREX trading.
Here are some additional questions you can ask yourself:
* **What indicators or signals does your system use?**
* **How long does your system last?**
* **What trading rules does your system have?**
* **How does your system manage risk?**
* **How has your system been backtested?**
* **How has your system been tested for real-time validity?**
These questions will help you better understand your trading system and identify potential pain points.
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