What To Do If Your Trading System Fails?

The real forex trading system is understanding many basic trading matters. It is necessary to have a strong understanding of the principles, to build the footprint of your trading system. A trading system that is too complicated, usually it shouldn't last too long, because maybe there will be fundamental economic things that can fail your technical system. The market situation is constantly changing and the system is always impressing the losers too sometimes, but we need to be wise to know for sure. Constantly sticking to the old system, while expecting the winds of change in trading will end in a test that hits your finances.

So what can you do to get to know exactly what doesn't hit your system, and maybe tweak it a bit so it can fit the market longer?

Assuming that you are generally not satisfied with your current system, there are a number of things you can do. It is preferable to retry a few exams and then make a trial trade before returning to trading on your real account. Try the demo first to really understand your system.

# Switch to a larger period:

Trading can become so erratic and shut down your system at the wrong time. In a larger period of time, such as 'daily' or '4 hours' maybe your system may work better. Use it as a helpful guide.

# Switch to another currency pair:

If you always stick to the same pair, maybe the behavior of one currency in the pair has changed, while the other has not. Switching to a 'cross pair' may be an alternative to the "noise graph" generated by US data.

# Changing Stop Loss / Take Profit parameters:


These are small enhancements that can make a big difference. It is important to emphasize that you are taking the normal risk-reward ratio and not adding to the risk while you are trading. Every time you test the system, you should be able to understand where the SL and TP are in the right place. Sometimes the system may take more profit, but you take less. So try testing your system.

# Remove one of the indicators:

Too many systems use too many indicators. This complicates trading and makes it difficult to understand why your trade won or failed. You may have an instinct to add one more technical indicator to add additional validation. As stated above, this should only make things worse. Try to correct your chart by subtracting one indicator.

# Started testing the new system:

Sometimes after trying to make the necessary improvements to your system, it still doesn't work and it may be time to get a new system. But make sure it is the system that fails, not your EMOTION which destroys the system.

# Complete understanding of trading principles:

Strengthening the principles of forex trading. Every trading system needs to have strong principles. Such as money management, trading time, and basic trading matters such as candlestick patterns, fundamental news, and other principles. Traditionally the trading system will be fostered on this principle. So you need to make sure that your principles are strong and you really understand that you are comfortable changing your new trading system.