5 STEPS TO CREATE A MODEL TO TRADE ( AS A BEGINNER IN CRYPTO CURRENCIES AND FOREX TRADING MARKETS )

5 Steps to create a profitable model for beginners in Crypto Currencies and Forex Trading Markets.

There are 5 steps to creating a profitable model that 90% of traders who are Beginners in Crypto Currencies and Forex Trading do not follow.

1. Finding a pair you genuinely enjoy trading.
You need to enjoy what you trade or you’ll slack and lose joy of trading causing human error.
This is important for a lot of traders as their psychology is what kills them.
If they don’t enjoy it, they won’t do it efficiently.

If you ask a trader what their favourite pair is they will name off 1/2 pairs right away.
However, this doesn’t mean you shouldn’t test other pairs, you may find a diamond in the rough.

2. Finding tendencies.

Very likely one of the most overlooked skill of many traders.
Traders take a concept they don’t understand and trade it, they don’t understand the real movement of a pair backed by statistical data and hours of work.
You need to ask the market questions, you need to gather data on those questions.
Sometimes they may seem completely pointless in the moment but may come in very handy in the future.
Once you have data on 10’s of questions you can then develop rules.
Without the tendencies you won’t find efficient rules.

3. Proper backtesting.

Similar to 2.

People take a concept and trade it but fail to gain the knowledge on tendencies to affectively use a concept or even build their own view of the market.
If you gain knowledge on your pair, you will create your own rules/concepts.
Once you have gained knowledge on your tendencies you can build rules to backtest a pair affectively.
Creating a data sheet to see your best trading hours, your worst trading hours, your best/worse days or months of trading.
This is the most effective way to backtest and find realistic data for your model.

4. Efficient forward-testing.

Traders want to go live, they get excited with 1 month of good trading and believe it is acceptable to go live.
You need a minimum of 3-6 months of proper forward testing.
You need to find human errors before you can take a model live.
If you can’t explain why your model is going wrong or why it is effective after 3-6 months of forward testing you need to go back a couple steps and develop your plan better.

5. Test your emotions on small live accounts.

Generally, if you have taken 9 month to 1 year to build your model you should have hundreds/thousands of trades backed up by statistical data to be confident in your model.
But, trading on a small live account before a large one will 100% help you get used to the emotional aspect of your trading.
Remember, psychology is the hardest part, if you can’t control your emotions on a small live account, why would you on a 100k-500k live account?
Get your emotions in check by building up your account first.

The FOREX market is a zero sum game, which means that for a trader/institution to buy/sell 1 currency pair it’s necessary that there is another trader/institution with an opposite position.

If Smart Money (Banks) want to buy a currency pair they will need sellers in the market, the existing facility to place these positions In the market is called LIQUIDITY.

✔️ The Liquidity is defined by Stop losses, where the Stop losses exist is where the liquidity also exists, Smart Money need to activate the stop losses of existing orders in the market so that they can place their positions in the market.

✔️ In the FOREX market there are two types of liquidity, which are:

1. Buy Stops Liquidity (BSL) –

The BSL is originated by Stop Losses of sell orders, after the BSL is taken, the market reverses to the downside, because banks use
the BSL to place sell orders in the market.

2. Sell Stops Liquidity (SSL) – The SSL is originated by Stop Losses of Buy orders, after the SSL is taken, the market reverses to the Upside, because banks use the
SSL to place Buy orders in the market.

✔️ PMH & PML –

Previous Month High & Low

PWH & PWL – Previous Week High & Low

PDH & PDL – Previous Day High & Low

HOD & LOD – High Of Day & Low Of Day

OLD HIGH & Low – Swing High & Low

EQUAL HIGHS & LOWS =

Retail Resistance & Support

Behind every successful Trader there is an honest broker ✅

🎯

🔹Features 🔹

•Leverage upto 1:2000 🔰
•Zero Spread 🎁
•Fast Execution 👌🏻
•Instant Withdrawal ✅
•Trusted & Regulated Broker 🎯

Join XM from this link ⤵️

XM Capital is a reliable manager that can guide you, educate you and teach you on how to start earning huge profit from crypto trading, join his platform today to start earning.

I’m earning huge weekly 💯 👇👇👇


https://clicks.pipaffiliates.com/c?c=676250&l=en&p=0

Exness is by your side with every trade, asset and market decision. They combine ultra fast order execution, competitive spreads, 0% commission, and client education to help you achieve your trading goals.

🟡If you haven’t opened an account yet, I recommend this broker👇

✅ The best broker for small investors
✅ Easy Registration take 5 minutes
✅ Crypto are open 7/24 hours
✅ Support 7/24
✅ Fast withdrawal / deposit
✅ Low Spread

BROKER ARE TRUSTED 100%

https://one.exness-track.com/a/c_7hfrg0krwc

All this means nothing if you do not have a Binance account to take advantage of this offer

Open your account at

You can try
Binance
https://www.binance.com/en/activity/referral-entry/CPA?fromActivityPage=true&ref=CPA_00R9LJ2LDW

Always remember as a beginner in Crypto Currencies and Forex Trading Markets you will only win when your mind is stronger than your emotions.