Whatever trading system you have developed, each trading system requires a certain period of optimization parameters, analysis tools, rules of trade. Don’t forget that by combining different types of market analysis, tools and instruments increases the accuracy of finding points of entry or exit and at the same time gives more chances for making profit.
You should also pay attention on what technical tools are used by professional traders and how they determine when to enter and exit the market. Also you need to know for what time frames your system is good to be used. When you decide to the time frame it will be easier for you to make the trading decisions.
Applying of your trading system and execution of the orders can be carried out in two ways: either manually or automatically. Manual execution of the trading decisions is closely connected to the discipline and the psychological aspect. Sometimes the traders make mistakes when they don’t follow their own strategy due to the doubts. When you trading strategy gives you a signal for a certain action you may also want to double check the accuracy of the signal.
The delay caused by your doubts can negatively influence on the profitability of the trading system. The usage of the automated trading system can help you eliminate these problems and avoid the emotional side of trade. But working with the automated system, requires the visual control in the real time. Because the situation on the market might be changed after the decision was made and the signal was applied. So don’t forget that if you trust your funds to the automated trading system you still have to watch the market and your trading positions.
What You Must Know Before Using A Trading Strategy
Using a certain trading system you must learn to be patient and calm while waiting for a trading signal to enter or exit the market. The ability to wait and control your emotions is one of the most important factors in Forex trading. The position of a trader is similar to a predator on the hunt: a good trader knows that he must wait for a perfect moment to act, otherwise it will cause disorder and the chances for gain will be lost.
Most of the time even the professional traders have no clear idea where the market is going. But they have learned to be patient and wait for a desired signal. One of the main rules of trading with a trading system is to follow it and use every signal that the system gives you. If after some practice you decide that you cannot trade manually, you can switch to the automatically trading system. Only in this case you will realize how profitable your trading strategy is.