Embarking on the Journey of a Successful Trading Strategy: Finding a successful trading strategy can be a lengthy journey, taking months or even years, depending on your chosen platform. Yet, discovering an effective system can yield lifelong profits.
Assuming you’ve discovered a winning strategy, let’s explore the next steps you should take.
Identifying a Successful Trading Strategy
Before diving into what to do next, let’s clarify what a ‘successful strategy‘ truly means.
Success in trading isn’t just about profit percentages; it involves various crucial aspects.
A strategy needs robust risk management to limit losses, minimal drawdown, and the resilience to withstand high volatility to be considered successful.
Discover the top 4 parameters for evaluating a trading strategy.
Progressing After Finding a Successful Trading Strategy
Here are 5 straightforward steps to follow after finding a successful strategy. Skip Step 1 if you’ve already completed it.
- Step 1: Backtest and forward test the system using historical data across various symbols and timeframes. This tests the system’s robustness under different market conditions. Amibroker is an excellent tool for this.
- Step 2: Engage in paper trading for at least 15 days. For an optimal paper trading experience, try using Tradetron.
- Step 3: If paper trading yields satisfactory results, start live trading in manual mode. Manually execute signals generated by the system with your broker for at least a month.
- Step 4: Once you’re happy with the manual trading results, consider automating your trades to eliminate human intervention. Tradetron can assist in full trade automation.
- Step 5: Increase your capital based on the system’s performance. When your trading is on autopilot, start looking for new system opportunities. Remember, never rely on just one system!
This guide should help you take the right steps after finding a successful trading strategy!
