How To Create A Trading Strategy (No Fluff Guide!)
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In this Bangkok Forex trading vlog, I discuss how to create a trading strategy no matter where you're at in your trading journey. Vlog #438
Make your trading strategy STRONG
- So I wanna teach you today exactly how to take what you learned, apply it properly into a framework, and then use it to trade. What's up traders, welcome back to Bangkok. Today, I want to give you some insights on how to create your trading strategies, a step-by-step process that I feel most people lack. A lot of people that talk about strategies, they only give you a basic understanding of how you create one. But they never tell you what to do with what you know. A big part of testing trading is going to be taking what you know, putting it into a strategy, and then using it to trade live. Or testing it first and trading live after. If you cannot do this, then you won't ever apply what you learned, and that's going to be a big issue. So I want to teach you today exactly how to take what you learned, apply it properly into a framework, and then use it to trade. That's where you can manage to take out a notebook and try to go through the bullet points I'll give you. Do the exercise yourself, and then you can figure out what you need to do and what you have for your strategy. That's going to be pretty powerful. Once again, I want to cut out all the fluff, so let's get right into it. First thing's first if you want to take out the journal. So if you don't have it right now, you track everything that you work on, all your progress, everything you've done, what you've done that didn't work, what you've done that's worked. If you don't do this, then you have a big issue because you don't know how to improve. You have to know what's working and what didn't. That's going to be a big problem later on. So the point is that you want to have a place where you write down exactly what things you've done, and the result of them. So how can you improve? You've got to know how you've been progressing. This is going to be exactly your own book for yourself. You can buy a trading book out there, but your own book of what you've done, what you've worked on, what you've seen works and doesn't work is much more valuable. So that's why you want to pick a notebook and we'll go through the next steps of what you have to do after that. The second thing is you want to write down all the trading concepts that you know. Everything you heard before. So for instance, a procession. I won't engage you too much, but if you write down whatever you know, whatever you've learned on the path, whatever you heard somewhere. So indicators, could be tools, could be things in the market that you know about. Could be whatever you think. Just write all of them down. That might take you five, ten minutes. You could have a big list or a small list, doesn't matter, but just write down everything you know. So you might want to pause this video, do the exercise, and then we can go back to the other step after. Step number three is: you want to circle on your journals the ones that you're comfortable with. So all the techniques, the tools, the strategies, the topics that you're comfortable with, that you've learned properly. You know how to use them, you could go on a chart and apply them properly. So you circle them, and just do that for all of your lists. You might have five, ten, maybe a little bit more than you know, or you might just have short if you're just starting out and you have not done much. That's fine, but just want to know where you're at right now, and how we can go forward with that. So you want to circle things and it's going to allow us to see what you've mastered from what you know about the market. So do this again, maybe pause the video again and do this work, and we'll go to the other step after that. Step number four is: you want to square those that you want to learn. So I need you to might know something, yet you might know that for instance, you work in the market, or you might know them, but then you want to square if you want to learn that topic. So if you don't master it now and you want to learn to master it properly, then square it. Do a little square around it or something with a circle. That way you know, first of all, what you know. So all the topics you know about the market. Then you know what you master, what you can use now properly. Then next step is, you know what you want to learn. So there might be topics that you've heard before or a topic that maybe intrigues you, that you feel like you should learn. You don't have to learn them. No one told you that you have to learn. There's no one thing in trading that you absolutely have to learn to make it try. It's like you can learn everything, and it's gonna make your strategy work, but you decide what you learn. That's your part, it's like your recipe. You don't have to use all the same ingredients to have a good recipe. You can use different ingredients but still have a good recipe. That's your call. So you decide what you want to learn, and you square them so you can know exactly what to focus on. If you don't know which one to pick, that's fine, pick the one that you think you want to learn the most or the ones that you have an interest in, and that you just want to try to learn more about. It doesn't matter the way you find them. Now step number five is: you want to put these things into the Technical Analysis Framework, something I've been sharing in the past. I've done countless videos in that also in the past. But I'll pop it up here on the screen so you can see what that's about. Just to put the things that you've learned and that you've mastered into it, and put the things that you want to learn into it as well. So the technical analysis process, the same thing I use, works pretty well. I've been taught this by a mentor a while ago, but it really works. So you want to look for contact first, and that you decide from your tools what you want to use. Then you want to look at some zones in the market. You decide again from your tools what you want to use. It might be Fibonacci, it might be trend lines, might be Ichimoku, might be whatever you think about. Those are going to be the zones that you want to trade. Then you want to look for your price action, so anything about the price that you look at. Some set-ups, perhaps. Lastly is the indicator. So ask something there, if you don't know anything, it's fine, just make something you want to learn there. Then you have to fulfill your framework Once you've done that, then you're pretty much good. You have your framework, you're whole same as the process. The only thing you're missing now is to learn what you gotta learn, and use properly what you're mastering right now. That's the only thing there is to it. Now, as we recommended, if you build this framework from things that you mastered, or that you wanna learn, that's going to make it much easier for you. If you pick things that you just know, but you don't really want to learn, or you don't master, then it's going to be against yourself. Against your own the willingness to learn. That's just going to be tougher. But things now that you master, and that you want to learn, that's going to be easier for you to go through. Once you've done that, step number six it's kind of optional, but I strongly recommend you go back to your coach, to your mentor, to your trader friends, to talk with them and see if what you did makes sense. Maybe it's not doing to make sense from the start, and that's kind of fine because you are beginning with this, you are improving all the time. You always want to be striving to make it better, and as part of your journey's success. So no problem with that, but go back to coach or mentor and show them what you've done, show them what you've accomplished. This is much better than going back to a mentor or a coach and asking them, "Well, what's your strategy? "What do you trade? "Can I trade you something that you trade? "What's your system? "What's your set-up?" That doesn't work for you because you're not taking into account what you like, what you would be good at, and what's your passion, what you want to learn about trading. You didn't take that into account if you just try to copy people. But this approach means that you know what you want to learn. You've arranged this for yourself. That's going to be more powerful because you stay more committed to it, and you feel like it's going to be your system instead of someone else's system. So that's much better. Now the last step in all of this, step number seven is to test the strategy you've built and then make it strong. So by that I mean you want to test it, of course, practice it, test it on a demo account if you want, and then go through this strong framework which I have shown before. Each letter of the word STRONG stands for something, and if you go through this, and if you make things right if you meet all the criteria, you go from having a strategy that's going to be only average, to strong and to really good. That's what you want to have if you want to trade long-term, of course. If you're looking for a quick buck, then you probably wouldn't be watching these videos anyway. If you're looking for a longer-term success, then that's for you, and you want to go through that process, test it, make it strong, and then go back to me, and maybe comment below if you want to let me know your thoughts and what's your process in that framework, I would love to know. That's it guys, pretty much. The whole process overall, seven steps. If you have any thoughts on this please comment below so I can know your thoughts, as always. Here are a few comments from the past video. I always appreciate you guys for the video comments down below. Subscribe if you're not done yet, there's one more video like this every single day. I'll catch back you, here in Bangkok, I believe tomorrow. Ciao!
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About Me
My name is Etienne Crete (from Montreal, Canada). I'm a swing Forex trader (who has the chance to travel the world anytime) and help aspiring Forex traders develop a trading method that works for them so they can produce income allowing them to live with more freedom.
You see, a lot of aspiring Forex traders lack the confidence to pursue their dreams. I'm there not only to help you develop your confidence but also to implement the tactics that are proven to give you results. You'll develop Forex trading discipline and the other skills you need in NO time!
Ultimately, you'll get to experience what a day in the life of a Forex trader truly looks like, but you'll also have to be consistent with your Forex weekly review!
I produce a traveling Forex trader vlog and host the Desire To Trade Podcast. I was fed up with the “fake” millionaire traders and the “get-rich-quick-trading guys”. That's why you can expect more free content from me than what other people charge for!
All Products Used In This Video
- Camera: Canon EOS M6
- Tripod: Sirui 3T-35K
- Editing software: Final Cut Pro (Mac)
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