Building a trading strategy is obviously not easy, but once you’ve tested your trading system you can then follow it on “autopilot” – the system makes the decisions, you’re just implementing them. This allows you to be more efficient in the long-term. Why test your trading plan? How do you test it and what by criteria should you be evaluating it?
The timeframes offered by various FOREX trading platforms are essential elements to your trading plan and investment strategy. One of the most common questions from traders is “What time frame works best?” There are a few different time frames you can work with, so let’s see how you can use them to identify FOREX market phases.
Even though each broker provides a record of your trades with some associated statistics, such as max drawdown, number of winning/loosing trades, leverage effect, profit factor and others, it is still very useful to have your own trading journal. Why is it so important, what should it include, how do you create the most effective one possible? Read on to find out.