Create Your Own Trading System

Rules are necessary to complete a process in a correct manner. This is the reason why rules are necessary in managed Torque trading. You must make your own rules as a managed Torque trader and setup a Torque trading system based on these rules.

Goals that a Torque Trading System must achieve

A trader must create his own system identify a trend as early as possible and avoid from any whipsaws. The achievement of both these goals is difficult because both are contradictory in nature but if you are able to achieve both the goals from your trade system then you will earn profit in the maximum trades and the balance of your Torque account will continuously increase.

Steps required in setting up a Torque Trading System

Setting up a trading system is easier but testing of it needs time. A good system has high profit earning potential in the long run so the system must be tested with patience and six important steps must be followed for complete testing. Testing of the system that you have to operate from your account is necessary. These steps are listed and explained below.

Time Frame

The time frame of your trading system must be according to your trade style so you must be well aware about your style and you must also be honest in selecting your style. If you like to go back home with some profit everyday then it means that you are a day trader, if you want to see profit monthly then it means that your style is short term based and if you can wait for years to see earn profit then it shows that your style is long term based. You must select the time frame that is most suitable to your style.

Find the trend identifying Indicators

A successful managed Torque trader is one who identifies a trend as early as possible. To identify a trend with in time, the most suitable indicator must be used. Moving Average Crossover is one such indicator that is most popular and identifies a new trend quickly and easily.

Find the trend confirming Indicators

After a trend is identified, it must be confirmed and for confirming the trend, the trend confirming indicator must be used. So this step requires finding out the trend confirming indicator. The RSI, Stochastics and MACD are good examples of the trend confirming indicators.

Define your risk

A trading system is not complete without defining risk. So you must also define your risk and insert this information into your system. A good trader is one who thinks about potential loss before dreaming potential win. Thinking of potential loss will help a trader to define risk in a trade. It is advisable not to risk more than 2% of your total investment in a single trade.

Define entry and exit points

A trader can be successful only if he or she can define the entry and exit points clearly and accuracy. The higher the accuracy of entry and exit points will be, the more profit you will earn. Some traders may use resistance and support points as their targets. Some traders may also use the amount of pips to define their target. To define entry and exit points, the traders may use RSI and Stochastic Indicators.

Complete your trading system by making rules and follow your rules strictly

Your trading system will complete after you make certain rules and the rules that you make, you must follow your rules strictly. Those investors and traders can never succeed who either don't make their own rules or are not able to follow their own rules strictly.

Test the trading system you created

After you have created your trading system, it must be tested first before you take risk. You can test your system in three ways.

Move back in time and test your trading system

This method of testing does not risk any money and you can also do it as quickly as your calculations are done. This is the simple method in which first define entry and exit point for some past trading sessions and check the accuracy of your system by confirming with the exact entry and exit points in that session. You can use charts for confirmation.

Use live demo account to test your trading system

This method also does not risk any money. Virtual money is used in this testing your system. There are many online Torque platforms that provide the facility of trading in demo accounts for practice. You can use a demo Torque account and test your system and make improvements in your strategies if needed. Working with a demo Torque account will help you to learn more things and your knowledge as a trader will be improved.

Use real account to test your trading system

This is the final method of testing your system. This test should be done at last from your Torque account and you should trade with least amount because real money would be used in this system. Trade with that much amount only which you can afford to lose to learn more tips of traders. Do this testing safely.

Your trading system is now ready and tested with all three methods discussed above.