our entry and exit rules. Heres an example of a long trade coinbase lisäämällä bitcoin gold setup: If we went back in time and looked at this chart, we would see that according to our system rules, this would be a good time to go long. Some will look like ugly heifers, but you should always remember to stay disciplined and stick to your trading system rules. Then you would move the chart one candle at a time to see how the trade unfolds. Next, we use simple moving averages to help us identify a new trend as early as possible. You dont have to have a zillion indicators on your chart. As it turns out, the trend was pretty strong and pair dropped almost 800 pips before another crossover was made!
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Now we would record our entry price, our stop loss and exit strategy, and then move the chart forward one candle at a time to see what happens. To backtest, you would write down at what price you wouldve entered, your stop loss, and your exit strategy. We cant stress it enough. Trust your system and trust yourself! Of course, not all your trades will look this sexy. We know youre probably thinking that this system is too simple to be profitable. As you can see, we have all the components of a good forex trading system. The, rSI is an extra confirmation tool that helps us determine the strength of our trend.
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