Questions you can ask yourself to evaluate your trading system

Trader Thailand
BuntitaThailand

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.




Copyright reserved to the author

Last updated: 11/30/2023 11:43

167 Upvotes
Comment
Add
Original
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2024 Tradinglive Limited. All Rights Reserved.