The trading system of the trader is an algorithm by which trading positions are opened and closed. Spontaneous transactions rarely bring a positive result, therefore, working on Forex, you need to create your own trading system. This will help reduce the impact of the human factor, as well as significantly reduce the time costs for trade. The main part of the trading system is the analysis of the market and the receipt of trading signals. Analyze the market can be using macroeconomic data or technical analysis. Trading systems based on technical analysis are more common, as technical analysis provides more opportunities for traders. Trading system can be different. Some systems use trend trading. The purpose of the system are: - determination of the existing trend (trend indicators are used for this); - selection of a point to enter the market (the entrance is usually made after a market rollback, which is calculated using Fibonacci or MA levels); - selection of the exit point (support / resistance levels or oscillators can be used for this).

The next kind of trading systems is trading on rollback. The entrance to the market is carried out at the signal of the oscillator or at an important level, the output - at the signal of Fibonacci, AI or oscillator. And for the trade in the trend, and for trading on a rollback, Japanese candlestick models are actively used.

A flat trading system is used when there is no trend on the market. To identify the flat used different tools. It can be oscillators, channels, moving averages. A variation of the flat system is pipsing - trading in large lots in order to obtain several points of profit. Pipsing is usually done at moments of lull in the market, for example, at night or on holidays. Trade for breakdown is applied when the market leaves the flat. Usually such an output is identified by a channel. The transaction is closed in case of breakdown, as a rule, by a trailing stop or at a distance equal to the width of the channel. Sooner or later each trader starts to build his trading strategy. The structure of different strategies may differ, but, in general, any trading plan has similar elements. Here are the main ones: 1. Deposit size and risk parameters An obligatory part of the Forex trading system is the description of the man management (MM), without which even very effective trading signals lose their meaning. Any force majeure situation, a failure in quotes or banal light / Internet disconnection will deprive the trader of funds when the MM is incorrect. Optimal risks for trading on Forex - use in trade of 1-2% of all available funds. This approach allows you to withstand drawdowns of 5-10 thousand points. Beginning traders usually neglect MM, arguing that with such lots it is impossible to earn normal money. More experienced traders even consider such risks high and trade 0.4-0.5% (especially if the deposit exceeds several thousand dollars). 2. Working currency pair and time-frame Choosing a currency pair, you can be guided by different principles - geographic location, volatility, personal likes and others. The choice of a time frame usually depends on the size of the deposit and the biorhythm of the trader. Also, the time frame depends on the choice of the type of trading system, for example, choosing a trending TS, it is better to work on a large time frame, and choosing a scalping frame - on a small. 3. Signals to the input and output This is the most difficult part in building your trading system. To determine the desired points, you need to study technical analysis or monitor the fundamental data. The rules for entry and exit must be clearly articulated, otherwise the trader's trading plan will be blurred and will not perform the required tasks. Even after fulfilling these three points, a profitable Forex trading system will not be completely ready. Having created the algorithm, it is necessary to test it for some time, revealing inaccuracies and defects. After the completion of transactions, it is recommended to make a report in which the reasons for the winnings and losses will be indicated. Analyzing this report, the trader will understand where his system fails.
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