In the global open spaces of the Internet now, unlike literally 5 years ago, a lot of information about trading in the Forex market has accumulated. Including many we see and trading strategies and tactics. Very often, the rules for opening a trading position are called differently: both the tactics and the strategy and system for Forex. However, there is a difference between these concepts. Let us discuss this question.
FOREX TRADING SYSTEM
So, the Forex trading system includes answers to global trading issues, such as the choice of a tool for trading, a time slot, a trading session. The trading system defines a set of analytical tools: indicators, analytical constructions, news data, etc. Also, the general principles of the trading strategy are concentrated in it: we trade on the trend, in the channel, on the flat, the strategy of capital management, the protection of open positions, etc.
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Trading Strategy[/caption]FOREX TRADING STRATEGY
The trading strategy for Forex is primarily a set of rules and criteria for entering a trade in the market and exit from it. It is within the trading strategy that we look for signals from indicators, analyze candlestick combinations, analyze the newline, etc. Also, the trading strategy includes support for the transaction: the installation of StopLoss and TakeProfit, the transfer of stops to lossless, the use of a trailing stop, etc. Escort of the transaction is directly related to another component of the trading tactics - with risk management or capital management. Risk management is designed to limit the losses of the trader by all means. This includes the transfer of positions to break-even, the use of trailing stop, locks, hedging positions, etc., because, By these actions, we reduce the risk of losing the deposit.
As you can see, the Forex trading strategy is only an element of the system, which certainly deserves much attention, but in itself is not yet sufficient for successful trading. While doing trading, you need to see the whole picture, and therefore you must have a trading system.
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