Strategy Building
Structured process of designing, testing and refining a trading method.
Beginner-friendly explanation
Building a trading strategy means deciding how, when, and why to enter or exit a trade. It helps avoid randomness and follow a clear plan with simple rules.
Example:
You decide to buy when RSI is below 30 and sell as soon as you gain 1%. That’s already a basic strategy.
Intermediate-level insight
Strategy building includes entry/exit rules, risk management, and position sizing. A good strategy is coherent, backtested, and aligned with a trading style (scalping, swing, etc.). It often involves technical indicators and a clear money management plan.
Example:
A trader combines RSI, MA9/21 and Ultimate Oscillator on 5-min charts with a 1% take profit and 0.8% trailing stop loss: a structured scalping strategy tested in paper trading.
Advanced perspective
Advanced strategy building relies on iterations between hypotheses, backtests, statistical analysis, and corrections. It uses robustness models (drawdown, Sharpe ratio, correlations) and considers macro context, personal bias, and actual liquidity. Strategies may be manual, semi-automated, or algorithmic, with adaptive logic.
Example:
A quant develops a multi-asset strategy based on factor momentum, with volatility filtering, risk-parity, and dynamic leverage adjustments: a complex setup tested in a sandbox environment.
Trading Strategies
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