Hi Traders,
Ok, let's comment on the next part of the topic ...
It is important to clarify that by saying that we can win infallibly and safely in trading does not mean that all the operations that are opened will be won, that is unlikely, however what it does mean and that in essence is the postulate of the subject is that if we perform the appropriate actions at the end of the day or week or month we will have constant earnings every day, every week or every month according to our trading style.
Clarified the above now let's see what follows ...
What minimum characteristics should our system have to be functional and that the signals it shows us are reliable and allow us to earn from 70% to 80% of open operations?
These are:
1.- You must have an indicator that shows us when there is overbought or oversold (It helps us to determine the moment of the trend, if it is starting, consolidating or ending)
2.- You must have an oscillator that supports us to decide when we should add positions, this is pyramid or scale positions (Together with the overbought / oversold indicator it will indicate when to exit the market)
3.- It must also have a trend indicator, preferably in the graph (It will indicate the positions that we must open which will be purchases or sales) can be a Moving Average which depends on the time frame
4.- In the same way a short trend indicator (We will indicate together with the oscillator the exact moment of our entry), this can also be a Short Moving Average
5.- Finally an indicator preferably in the graph that will tell us
the time to leave partially, this is to reduce our risk in the current position or positions
Most of the time the market oscillates making pauses that are sometimes very pronounced and go against our position, that is why this indicator is necessary as security against strong setbacks
The foregoing complements a functional and profitable trading system and can be strengthened with some suitable moving averages or multi-time trend meters to be more certain that we are following the moment, the medium-term or the main trend, depending on our trading style
Very important to keep in mind to follow the operating rules of the system, not to be dominated by euphoria or overconfidence, discipline always has its reward if you do not have yet it is convenient to develop it to conform to the rules at 100%
Here are some examples of trading systems with simple rules to follow (They are only examples but there are many systems, everyone validates the system they use)
Forexlines7
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Newscienceofforextrading
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Will they be profitable following the rules?
In the following comment we will comment on the characteristics that an expert advisor must have to qualify as functional and profitable
Best regards to all