Preliminary Steps for Building a Successful Trading System

The First Steps for the Successful Development of any Trading System

This article outlines some essential preliminary steps for developing a successful trading system, along with key biases to avoid. The content is primarily based on Van Tharp's book Trade Your Way to Financial Freedom.

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Step 1: Finding a Concept That Works

Finding a concept that works should be considered the first step in building any trading system. An effective concept should include detailed setups for entries and exits, along with clear money management rules. This means defining entry conditions, exit strategies, and position sizing. However, most traders focus primarily on high-probability entries without considering proper position sizing or exit planning. This approach often results in a negative expectancy.

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The Expert Advisors Trading Guide

Trading with Expert-Advisors (EAs)

Deployed on a trading platform, Expert Advisors (EAs) are small programs that can automatically trade any financial instrument. Trading with EAs is becoming increasingly popular, as they can continuously operate in any financial market without human intervention.

Introduction to EA Trading

An EA identifies and opens trades based on user-defined parameters. If market conditions change, the algorithm can automatically modify or close the trade.

EA trading is a multi-featured process offering:

• Trading across the full range of assets available on the platform (Forex, equities, crypto, etc.)

• Combining technical analysis tools and techniques (indicators, pattern recognition, support/resistance, etc.)

• Including money management tools (risk control, spread/slippage control, etc.)

• Applying time management (selecting when to open or close orders, avoiding news releases, etc.)

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RoboForex Cashback (Rebates)

-Receive a Monthly Cashback when trading 10 or more lots with RoboForex-

RoboForex is an ECN/STP broker offering fast execution, tight spreads, and a free VPS for automated trading. You can open a trading account with as little as $10, funded via cards, bank wire, Skrill, Neteller, or PerfectMoney. Regulated by FSC Belize, RoboForex provides compensation up to 20,000 euros in case of insolvency.

• Over 35 Forex pairs available on MT4/MT5

• CFDs and Futures trading

• Supports EAs, social trading, scalping, and offers a free VPS

• Multiple versions of MT4 and MT5 platforms

Spreads & Commissions

The broker offers very tight spreads and competitive trading commissions of $2.00 per full traded lot:

• EURUSD spread as low as 0.10 pip

• GBPUSD and USDJPY spreads as low as 0.15 pip

• $2.00 trading commission per full traded lot

Cash Rebate Program

RoboForex offers a ‘Cash Rebate’ program that lets traders earn extra profits on all account types. Rebates are based on monthly trading volumes, and the funds can be used freely without restrictions.

» Open a Trading Account with RoboForex

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