trading algorithm. what does a trader need it for?

Most of the people who come to forex tend to earn as quickly as possible. The desire is quite natural. And as soon as they learn about the existence of Expert Advisors, they immediately try to use them in trading. Of course, trading with a robot is so easy. Except the results can be very disappointing. K trading in Expert Advisors can be returned later, when you have gained sufficient experience in manual trading. This will allow the trader to create a profitable trading system. And only after its successful testing can we instruct the Expert Advisor to automatically fulfill the conditions of the trading strategy. Trader must have a clear trading algorithm to eventually become a professional. And today we’ll figure out what it is.

What is this trading algorithm

If you say so simply, it’s an order of action
trader. A consists of the following three main directions.Trader must use both fundamental and
technical analysis. This combination will allow a better assessment of the market situation and
to make an optimal trading decision. Trader must have clear rules for opening and closing a trade. And not only to have them, but to follow them strictly.Trader should determine the degree of risk tolerance and not forget about the management. The care about saving the deposit is fully in the trader’s area of responsibility.

How to create a trading algorithm

For the beginning it is necessary to define, what trading instruments
will be traded and on which timeframe.Select the analysis tools to be used
in the TS. Indicators should have a high level of accurate signals.Determine the allowable size of losses in each trade
(stop-loss) and the amount of profit that will be the target when opening a trading
orders (take profit).Check the work of the trading terminal. Orders must be executed
instantly. Define the amount of deposit that we want to see on the trading account in a month, six months, a year.The trading algorithm should be oriented to the trend
trade.Each trading day should be planned. If the plan
it’s done, it’s better to finish the trade. The desire to take over-plan profit
most often leads to its loss.Trading algorithm does not imply any strict restrictions. This is the basis of trading, which allows for any changes to be made depending on what is happening in the market. You have to be creative about trading. The basic requirements must be observed. And if you add patience and perseverance to this, you can soon achieve a stable income in the market.Fyodorov’s Inga10.10.2019