A trading strategy is a set of rules and conditions that describe the actions of a trader under certain circumstances in the market.
- Entry points to the market.
- Point of exit from the market.
- Approximate time intervals between entry and exit points.
- Approximate time intervals between two consecutive entry points.
- The percentage of capital depending on the conditions under which the position is opened
In drawing up a strategy, it is important to take into account the type of currencies. In the market of popular and volatile coins, the trading frequency can be higher than when trading in little-known and slow-growing tokens. Deals with them may be less frequent since it is more difficult to wait for them to jump or fall.
The strategy is based on a pattern that distinguishes one coin from another.
To form a trading strategy, you need:
- Analyze the market behaviour of specific currencies
- Select the most important patterns and take them as a basis,
- Supplement with parameters that allow the maximum use of patterns.
- Determine the rules and procedures for the occurrence of the desired market situation