Forum transfer: Submitted by Nick on October 15, 2007 - 13:47.Hi Reza.
The way I see a good system with written rules:
***** System name ******
(that's optional, but it is nice to have a name for the system you trade).
Trade during: L and NY sessions only, from ... to ... GMT.
No trading on Mondays, no trading on Fridays after midday.
Currency pairs: GBP/USD, USD/JPY.
Chart setup:
Time frame: 1 hour and daily.
MACD (12, 26, 9)
Bollinger Band (14, 2)
And so on...
Trading position size: X% of my account, X amount of units etc..
Number of open positions: ...
My trading rules:
Daily routine: Check news in the morning, set weekly and daily Pivots, define other support/resistance levels, trend lines... Write down everything that should be done before trading can begin.
Entry rules:
If ... then ...
If ... then ...
(as many as you need)
Additional notes, for example: constantly watch for indicators to ... if so then...
Exit rules:
(same if.. then, every step should be written down)
Take profit: X pips, or at Pivots, supports, fibs... clearly defined.
Initial Stop loss: Yes. No. If yes - then what is it: fixed amount of pips or X% of account balance or other methods...
Never move S/L.
OR move S/L to break even once...
OR initiate a trailing stop when...
That's about it.
And finally some nice words to yourself at the end like:
Good luck and let the profits run
!!!
Nick