Many systems work well, but because many traders lack principles and cannot follow the rules, they will lose money.

Your trading system should try to achieve the following 2 goals:

  1. Be able to judge trends as early as possible.
  2. Can avoid double losses (determine the trend).

If your trading system is profitable, you can trade on a real-time demo account for at least 2 months. This will give you an idea of ​​how you should trade in the event of market changes. There is a big difference between real-time trading and back-testing.

When you trade on a real-time demo account for two months, you can still make a profit, and then you can invest capital and start real trading. However, you have to remember that you must stick to your rules no matter what the situation.

There are six steps to create a system:

  1. Find your time frame.
  2. Find an indicator that helps you spot trends early.
  3. Find indicators that help you avoid losses and confirm trends.
  4. Determine the risk.
  5. Determine how to enter and leave.
  6. Write down your trading system rules and follow them.

The test system goes through three stages:

  1. Backtrack a period of time, and move your chart forward one by one. Follow the rules to trade, record your transaction, and see if it makes a profit in the end. This is called back testing.
  2. If you make a profit, you can trade on the real-time demo account for at least 2 months. This will give you an idea of ​​how you should trade in the event of market changes. There is a big difference between real-time trading and back-testing.
  3. When you trade on the real-time demo account for two months, you can still make a profit, then you can invest capital and start real trading. However, you have to remember that you must stick to your rules no matter what the situation.