Introduction In order to manage risk and increase profit, every trader needs to have a trading system. A trading system is a fixed systematic process used to identify a trading opportunity, execute it and close it. A trading strategy, on the other hand, is a set of rules that help identify high probability setups. Table of contents The difference between a trading system and a trading strategy Bulding a trading system Importance of consistency Building a trading strategy Developing a successful trading plan The difference between a trading system and a trading strategy A trading system involves steps that are fixed and do not change nomatter the type of trade you are entering. The system maps the steps to follow towards achieving your trading goal and the strategy may differ in every step taken towards achieving your main goal. Bulding a trading system To build your trading system you will need to: Determine the time frame that you are going to use to execute your trades. Th...
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