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Design Your Trading System In 5 Step

Hello, friends, this is Shubham Tamrakar welcome to the #Traderlifestyle.in 
I hope you will be fine and doing well in trading today I come with another blog and in this blog, I will talk about the 5 simple steps which help you to design your trading system, so let's start with the very first point 

1. Time frame

so the time frame is one of the most important things which you have to choose for the trading, you can not follow the timeframe to others because it depends on their trading types if I tell you about my time frame for trade analysis so I frequently use daily,4 hours and 1hour time frame for trade analysis and for choosing entry time sometimes I also use 15 min time frame because I am a swing trader so it totally depends up to me and my trading types. if you are the intraday trader so it is not as much important to look daily and 4 hourly timeframes and it is better to watch 15 min and 5 min time frame so  choose your time frame very wisely because it one of the most important for trading and make sure choose this by your trading style 

2.fine indicator that identified a new trend

you should have to find your best indicator which indicate you the trend reversal and which give you an indication that trend is going to reverse from there, every trader use different indicator for identifying a new trend, it can be a moving average, trend line breakout study and soo on,, so you will have to make you owe trend reversal study, it helps you lot in trading, I have also used my own trend reveal study which is based on price action, ascending channel breakout study, ICC[impluse correction continuation] and lot more 

3.fine indicator which helps you to confirm the trend

as you know in a technical analysis we desperately focus on the confirmation, without confirmation we don't initiate any trade, we only trade when we get the confirmation of the indication and make sure the confirmation should be the last indication, there is the two of the confirmation you can get 
  • Aggressive confirmation and 
  • the conservative confirmation 
Aggressive confirmation is that when the price move either up or down after getting the indication means does not give the chance to buy\sell at the best price and the conservative confirmation is that after getting the confirmation it gives time to buy\sell at the best price,


in this chart, you will see that after the breakout the price does not move up to give the best price to initiate short  this is the example of the aggressive confirmation 


now look at this chart in this chart you can see after getting the breakout the price moves up to give the right price for entry and then move down and give the full target of the trade.

4. Make disciplined risk-reward 

this is the again one of the most important factors in trading , trading is all about the risk-reward ratio and if you have disciplined 1'3 risk-reward ratio so every 1 USD loss you will make 3 USD profit if you have 50% trading accuracy you will be profitable in monthly position, so make your disciplined risk-reward ratio for the trade ,don't trade if you dont get the disciplined risk-reward, I strictly follow the 1 % risk rule and if the risk goes more then 1 % I don't trade, so make your disciplined risk-reward ratio.

5.define entry and exit in advance

it is very important that you should know your entry in advance, for knowing your entry in advance you will have to forecast the pair earlier , forecasting is an art and if you are a beginner of the trade it will take time, when you start forecasting it will very helpful for you, this will help you at the time of when you initiate trade because at the time of initiating trade we suffer from emotions buy when we know our entry point in advance it will not as much harder to initiate as before forecasting, so make sure try to forecast things and save it, I use notion for my forecasting , backtesting. and ASR[Advance self-review] it will help you a lot for the measure of your trading performance. 

so I hope you like this blog and  gives you  tones of value if you like  this please share it with your trading community,  you can also follow me on Instagram  subscribe to this blog it's free 

Happy Trading 
stay tuned





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