Write a Trading System If You Don't Want to Lose Everything

[00:02] final lecture from the series "Trading for Dummies" for beginners. There are for Dummies" for beginners. There are 14 lessons from this series available here on YouTube. You can go to the comments to see the pinned comment. How to

[00:16] get to the playlist. There will be a link that will take you to the field here on YouTube and you will study this topic step by step accordingly. Today we have the final topic. Today we will talk about the description of the trading

[00:29] system. What kind of trading system is it? What it should be like? What it represents? Why does a trader need it? And in general, this topic will pump know that most people lose and pour out money, largely partly because

[00:44] they don’t understand what to do due to the fact that they don’t have a trading system. If you came to this video by accident, let me introduce you. My name is Artem Zvezdin. I have been trading on the stock exchange for 1008 years. I am a qualified investor certified by the

[00:57] Central Bank of Russia. I am the author of the course "The Grail of Real Trading", which, by the way, is ending. We have a discount of only 10 days left. You can scan the QR code and I've never lost my deposit even when I was

[01:10] lost my deposit even when I was 8, 14, 20, and 22, thank God. In general, God is at peace. Boehme, well, there's really no mysticism here because I know the basic rules of risk management. You've probably

[01:24] seen me in the media before, before her various comments. I'm a very good person, let's say I don't like to talk about myself, but nevertheless, a good trading system is what it

[01:36] represents. A trading system is a mandatory document in every trader's arsenal. Without a trading system, you are essentially doomed to failure. Therefore, any very seriously, and this should be done before

[01:53] you start trading on the exchange. trading on the exchange. Colleagues, whoever is online, please understand that everything is technically working properly. Like and subscribe

[02:05] to the channel if you haven't subscribed yet, so I understand that it all works and everything is To write a trading system that will make at least some profit, you need to know the theory, of course. That's why we've posted a free video course on this, without

[02:21] which you can learn the theory with With the help of which you can somehow assemble your trading system and gradually stop in this direction without understanding market mechanics, all your attempts to analyze the market are fortune telling

[02:34] on tea leaves at best, which most often is just complete chaos, knowledge of theory is what actually distinguishes a professional trader from a hamster if you give two people a chart and ask the same

[02:50] question, for example, why the price rose or fell, so the professional will say that it rose because there were some reasons, for example, there, and accordingly, buyers dominate, and the hamster will say because it rose

[03:03] because it rose and in general, this is what distinguishes a professional and a hamster, no matter how the country sounds to you, understanding market processes, understanding the mechanics of understanding what influences the market and all this, of course, needs to be reflected in the trading

[03:19] system. The trading system should take into account all aspects of trading. An ideal trading system is an instruction for all occasions that you will use every minute spent on the market. If you trade according to the instructions,

[03:33] you protect yourself from the most important thing from trading for emotions trading for emotions today 2 April 2012 and April 1 there was a call in army, so in the spring, the spring conscription into the army began

[03:47] and there is such a thing as army 100, which is written for all occasions, an answer is given to all occasions of life, here it is about the same, that is, when we trade, we will try to write such an army charter before the start of trading so that we

[04:02] accordingly have instructions on what we specifically need to do why we need this then what I am telling you absolutely seriously when you trade on the market there is a total mess in your head because you do not understand what is

[04:16] happening partly because you do not have instructions on what exactly you should do, what exactly you will do in a given situation and this confusion and money are naturally

[04:30] incompatible things, I am more than sure, plus threads in the chat if this is so if you have encountered this that you have encountered this when, for example, on paper, you analyze the market perfectly, did a perfect analysis and, for example, if you did not enter a

[04:44] trading position, this analysis works perfectly, just there down to the penny you predicted the price, the price that the price reached from here, the price reached to then it will reach here, it all works but as soon as You opened a deal, your analysis immediately

[04:59] stops working, plus threads in the chat. If you have encountered this, this is largely partly because you do not have a trading system. When you are involved in the market process, you begin to involve psychology, and as a result, due to

[05:14] the lack of a trading system and the presence of trading psychology as such, in general, psychology in general, you have these problems. Therefore, we fence various trading systems, with the help of various

[05:31] necessary to fence ourselves off from psychology. If we really hit it off, a little water and water to pour into our webinar. In general, trading is incredibly non-biological, drown biological, and to

[05:47] become a generally successful trader, you need to act against you in biology as such, because what is generally applicable in our life and works one way or another, unfortunately, does not work in the markets. For

[06:01] some reason, I remember when I was a child. I live on a mountain and once a truck with tomatoes overturned. What happened? The whole street ran out of these trucks, these trucks, these tomatoes. I gathered a huge pile of these

[06:17] tomatoes, we then basically canned them and ate them for several weeks until they were no longer a dream. The devil knows, I told my mother, that is, in essence, when some freebie appears in our lives, if you run to this freebie, you are quite likely to

[06:31] get something here, but if the same thing happens in the market and you see some freebie in the market, and if you run to this freebie, at best, you will get a slap on the head accordingly, that is why we write a trading system for trading

[06:45] or went a little bit ahead. The trading system allows you to exclude emotions from trading, allows you to track system errors, allows you to always trade the same way, and this is the most important thing in the process of writing a trading system, you

[07:00] will understand how much you actually didn’t know, you can fill in these gaps. So, as far as emotions are concerned, I told you, as far as system errors are concerned, why, for example, my students and I gather every week to analyze

[07:16] trades, why I make students post their trades and discuss them, because if you don’t systematize your trades, if each of your trades is incredibly unique, there’s nothing to work with, and as a result,

[07:33] your trading can wing to hide such a small some element that will constantly systematically lead you to losses, you will not even understand why exactly you are losing money only by writing a trading system and only by trading the

[07:48] same way you will be able to say aha, here I am trading this element, it is draining me, damn it, let me remove it if you do not do this, you will not be able to systematize your trading, each of your transactions will be incredibly unique

[08:02] if it is incredibly unique not incredibly unique you will constantly systematically lose and will not even understand why exactly you will understand why exactly you will lose and again this is a classic if you

[08:14] have encountered this, please write and put a plus in the chat if you have encountered this that each of your transactions is incredibly unique and after two or three months you look at the trading and think what is going on

[08:27] why exactly you are losing, it seems you are doing everything right, as they say about it, and actually speaking on YouTube, for example, or how you took courses, it seems, and according to the courses, you do everything right, but at the same time you get a minus why this is

[08:40] happening and you will never be able to understand until you have Trading is the same until you systematize your trading and Aha, I’m trading this element, this element, this element,” and then over

[08:55] time, after two or three months, you’ve collected summary statistics and look, “ Aha, this element is draining me,” I’m choosing “Damn it,” and all the others, on the contrary, were building up. A good trading system plan, otherwise I can already see that Maxim

[09:09] splashed out that he encountered this. A trading system plan. Here’s a trading system plan for you. Let’s not break it all down. Let’s run through it briefly.

[09:23] entry into a position, what exactly you’re going to trade, and what specific trading signals will indicate to you that you should enter a position, what exactly should happen on the chart, so that you understand that I’m now going to look for, for example,

[09:40] some situation. Again, these two points are two points of our student, so to speak. You can add your own element here, whichever you want. It’s important that the structure is preserved. First, you

[09:53] describe the entry position, then the entry signal, then the exit from the position. When you don’t enter positions, and most importantly, of course, risk management. Then, that is, here. In the first block, you describe what exactly you should

[10:07] see on the chart that will make you look for an entry signal, then you describe the signal, what specific signals there should be in the markets that will make you open a trade, then you write the conditions for exiting, what should

[10:21] happen in the market in order to exit the position, then you write when you do not enter a position, that is, a certain one, you set a certain filter by which you will understand that now your trading system, your trading methods

[10:35] that you use, they will not bring you income in this case, we do not enter, for example, at the climax, during fading, and also in terms of time, but in 4, of course, risk management, here you describe the

[10:49] volume of your position, acceptable drawdowns that you can accordingly use the action algorithm in case of exceeding the drawdown norms, and so on. This is the structure that your trading system should have. I immediately warn you

[11:04] that despite the fact that the trading system should accordingly answer each question and be an instruction, so to speak, from your trading, but at the same time there is no need to overcomplicate it. Once a student brought me a trading system of about

[11:19] student brought me a trading system of about 150 pages. 150 pages, in fact, he wrote notes from my lectures to my training course, but this summary is not a trading system. A trading system, although it contains answers to all

[11:34] questions and is an instruction on how you will specifically trade, but you do not need to deliberately complicate, write out every little detail, and so on, this will only confuse yourself because here you will have a huge number of

[11:50] conflicting answers to trading methods, conflicting elements that will certainly lead you astray. It is important that the trading system include screenshots of the charts of your instruments.

[12:03] You first study the chart because this is what you will work with 99 percent of the time. Since I started with the fact that you should write a trading system even before trading, accordingly, many traders

[12:20] often felony from they select certain screenshots from those training courses that they, for example, watch or from my videos, for example, and from this they create a trading system. It would seem like a very small thing, but you can’t even

[12:35] imagine how many traders do this. Therefore, here I clarify that in order to write a high-quality trading system, you must compare your screenshots because over time you will understand that no, not everything

[12:49] you hear on YouTube really works and ultimately, when you move on, accordingly, to You start to research all this certain trading methods that you will subsequently trade, you will understand

[13:05] that specifically for you, for example, they are not traded, or that, for example, you cannot find them, or that, for example, they simply do not work as such, and this, of course, will be another reason for you to think about the performance of these

[13:19] methods and their possible inclusion in the trading system or not inclusion in the trading system. The trading system is well written. If the trading system is well written, then you will know what to do in any situation, that is,

[13:31] when to buy, when to sell, when to do nothing. Here is one example of a trading algorithm. You can adopt mine. We mine. We give it out responsibly to our students. You

[13:44] can use it for a long time. In general, we doubted whether it was worth posting it in the public domain, but if you do not have 130 of our knowledge, this algorithm will not help you. Pavlov will not help you. However, it is possible that you can

[13:58] argue about it. Well, look, this is a flowchart. You want to make a deal. Start analyzing from the background and determine liquidity points. Determine the level. Then ask yourself the question. Did the price approach the level through a rollback?

[14:14] Yes or no. If not, ignore the deal. If before Evaluate the movement over the next few days. Answer the question. If there is a climax, a reserve of power, and an important level or weakening in the background, if it's 50/50, ignore the deal or

[14:31] if it's 50/50, ignore the deal or reduce the position volume. If this is not the case, wait for a certain scenario, that is, a narrowing, expansion, simply the appearance of a signal and, accordingly, a certain breakout, and then some

[14:43] movement occurs. I apologize here, it's a little started, accordingly, Lord,

[15:12] he will now get it for free. If he does not do a certain dexterity, so to speak, with our videos, they will not watch our entire channel or buy the answer to our paid courses. He will never be able to understand this for him. It's like

[15:26] Chinese, you know, I'm talking seriously. This is for people who really want to understand and who have really studied our courses accordingly, including, so there is no need to be upset about this if you do

[15:41] not have climax of the power reserve, or rather, if it exists, then you also ignore the deal about, forgive me, forgive me, a simple algorithm that you can use responsibly in your trading, but again, knowledge of the initially

[15:56] defined is needed, what else, even if the system is written correctly, it will be of little use if you do not analyze your transactions, the analysis of transactions is

[16:08] best done in a special trader's journal, this can be a specialized journal like max profit or this journal, I have never used it, an assistant wrote to me about this, but if he wrote, then most likely it is a

[16:20] pretty good thing, this can also be done in regular Excel, and that is, but you can systematize your transactions in regular Excel, and but it is a little before, I always used max profit and I tell our students

[16:36] to use it, it is very convenient, the program costs 1000 rubles, in my opinion, not that use it in order to systematize your transactions, and also in the system you must necessarily write down your risks, position volume, it's all clear

[16:50] why we do this, and then that when you trade for several months, you probably want to make a certain systematization and, accordingly, over systematization and, accordingly, over time you You can do it like this, look, let's

[17:04] say you trade this model, yes, let's say you trade this model, and you trade this model, you need to understand specifically on your trading instrument whether it works or not, will you

[17:18] make money on it or not, if you made one or two trades, this doesn't mean anything, you need to make statistics, you can only collect statistics after a certain period of time, for example, make a sample of two or three months and over the course of

[17:33] 2 or three months, trade this or the local one, naturally, you will trade each time differently and trade different elements, but over time, after two or three months, you don't trade, well, for example, here are 20 trades of this

[17:46] format and you see that, yeah, accordingly, out of 20 trades, accordingly, out of 20 trades, for example, some come out in the plus and most, for example, come out in the minus, and accordingly, you remove this from your

[18:00] trading, so without a trade journal, without systematizing your trading, without a trading system, you will never be able to do this on your own, that's why we accordingly, bother with paid trading journals like Max Profit

[18:15] because you can do this there Excel and of course you can also collect and accordingly make some statistics, for example, in a similar way, but analyzing this will of course be quite difficult. As

[18:28] for deposit limits, each received stop order reduces your deposit. The smaller your deposit, the larger the percentage you need to earn to recoup losses. For example, if you lost half of your

[18:42] deposit, then to return to the starting amount, you need to earn 100 amount, you need to earn 100 percent. In fact, you take one step forward and two steps back, which will of course take a huge amount of time because

[18:54] doubling your deposit is very problematic, so it is better to determine in advance a deposit limit in the region of 10-15 percent, upon reaching which you will stop trading. This is force majeure. What is meant is that you must have a certain

[19:08] depo deposit limit. If, for example, you have reached a drawdown of 10-15 percent on your deposit, trading at this moment is prohibited. This means something is going wrong. Some force majeure has occurred. You did something wrong, and

[19:23] therefore you need to accordingly stop trading. Analyze your trading, collect exactly these statistics that you, I hope, have collected statistics that you, I hope, have collected and understand what exactly went wrong.

[19:35] Having a trading This system will be very simple to do, but why do we set a deposit limit accordingly so that you have a certain ruble? No, because the loss of money happens very unnoticed. You will lose and

[19:49] remark with horror that you have just lost half of your deposit. Only then will the chapter turn on what happened. That's why we make such a mark of 10-15 percent. Let it be in your head. In case you lose these 10-15

[20:02] percent of trading, transactions are prohibited, accordingly, they are closed, an analysis is done, work and work on mistakes. It would be stupid if you exhaust your limit after one unsuccessful transaction. To avoid this, you also need to have a

[20:16] loss limit for each specific transaction. For a beginner, the optimal limit will be beginner, the optimal limit will be somewhere around 0.5-1 percent of the deposit per reach the deposit limit only after 10-20 losing trades in a row. It is

[20:32] clear that this limit can change depending on how exactly you trade. We assume that you trade poorly, so 0.5-1 percent is even a bit too much, to be honest, I would set 0, like two There is

[20:49] 0-5 percent on the deposit per transaction. I apologize, but again, this is a floating parameter. It largely depends on what specific instruments you trade. How exactly you trade is not possible to give any universal advice here. It is important that

[21:04] this limit exists in principle, because if you do not have this limit, things will actually be very bad. You will have made 15-20 losing trades, lost 10-15 percent, and therefore, you will stop trading

[21:18] again, as a result of It's not clear exactly how you trade. If you're scalping, it's clear that your limit should be much, much lower because you can make 15-20 trades a day. This should also be taken into account. But

[21:32] should have a limit per trade accordingly. As for the deposit limit, if you do reach the deposit limit, you should stop trading and work on your mistakes. Once you've figured out your mistakes, you can

[21:47] return to trading. But first, you're only trading on a Nadym account after one and a half to two months of successful trading. It's worth trying to return to trading with real money. So, please give a like to my colleagues who are

[22:03] watching. Because I see 325 people are watching us right now, and there are only 146 likes. Something's wrong. Please give a like. Someone's a felon. Someone's a felon. Someone doesn't like. Okay, I received an order of 100.

[22:20] Let's say you received this order. If the drawdown is less than ten percent, you continue trading. If the drawdown on the account is already more than ten percent, you

[22:32] either switch to the center price of the smoke account, and if you trade accordingly. On a home account for more than a month and a half or two, you switch back to a real account. Here's a simple plan and scheme, very simple,

[22:47] but again, all this is only applicable if you have a trading system. If you don't have a top trading system, trading doesn't make the slightest sense at all. Well, the bottom line is that you must take into account trading in a trading

[23:03] system. At the same time, you can't make it too complicated. The trading system should be simple enough so that you can follow it in any situation. When you're nervous, when you need to make a decision in a second, and when a big profit is at stake,

[23:19] and so on. I'll say it again. We're starting from the concept that when you're trading, and when, for example, you get a loss while trading, your head switches off. I think we've encountered this firsthand.

[23:34] Plus, there are girls who have encountered this before and, for example, got a big loss. I can give an example of my student, for example, yes, he shorted Volta. The other day, I wrote in a

[23:48] any trading recommendations? As soon as you write a trading recommendation, people immediately start copying you. Telegram channel that I shorted some altcoin, what did my husband do somewhere, he also shorted some altcoin,

[24:02] so to speak, and about it being triggered by a stop order, what does he do after that, he doubles his volume accordingly and goes into selling again.

[24:14] This deal, as he later says, was purely emotional. He says I didn't even realize what I was doing. The deal then turned out to be a plus, it didn't make any money. But as he characterizes it, I didn't even realize what I was doing. This is a purely emotional deal.

[24:27] I lost, I decided, roughly speaking, to recoup before I increased, so to speak, a certain bet. Guys, this isn't trading. This isn't trading. So, to prevent this from happening, we are writing a trading system in which we

[24:40] describe what we are specifically doing so that we don't get blown away. questions, I remind you that our promotion is ending. It was timed for the

[24:52] anti-crisis. It was timed for recent events. The ruble is falling, systematically depreciating, and it is quite likely that inflation will continue to increase, so we decided to create a fairly long-lasting AKS,

[25:07] which, well, in essence This active trading training ends in 10 days, with which you will create your own trading system, learn to make money in the market the same way I did, just like

[25:22] my current students make money. With this training, you will completely sort everything out and start trading. You will begin happening in the market right now. Moreover, you will save your

[25:39] money not just like that, not just under the pillow, as usually happens. You will save your money in knowledge. What really will never depreciate is that in difficult times in the future, you yourself understand that we have quite a

[25:53] difficult time ahead, which will allow you to at least save money and, accordingly, preserve your capital, and, at most, of course, increase it. The link to everything is in the description. Go, familiarize yourself and learn to understand the market

[26:07] after purchasing it. You had this student account on our courses you purchased will be located here. Of course, my Kurds are located here, this is my personal account. Here I have the entire course and each

[26:23] course is divided into chapters. Each chapter is divided into lessons. Each chapter is divided into lessons. The lesson is divided into a video part and a brief summary of what is in the video part, but this additional material is

[26:37] not required as part of the narrative. I also remind you that some training packages include homework. Your tutor, not some algorithm, not Aunt Savita, is checking your homework. She is a practicing trader

[26:52] who is fluent in trading and my your homework, monitors the entire process, and if you misunderstand something, she

[27:05] redo your homework, and something is explained along the way, accordingly, as you study the course. Well, you can always use this button to contact and discuss various issues before discussing. I

[27:21] answer your questions well. If you have any questions on the topic, please submit. I answer your question. Yes, today we have a stream, and it's short Yes, today we have a stream, and it's short because the topic is very, very simple.

[27:41] simple, but it is one of the most key topics. Also, in a good way, that is, if a trader does not have a trading system, talking to him does not make the He'll lose 100%, it's just a matter of time before he loses, but the fact that he will

[27:56] time before he loses, but the fact that he will lose is 100%, 100% somehow this is how it works in life all the time, seemingly simple things actually turn out to be very complex, very complex things turn out to be very simple,

[28:10] such an upside-down world we have, of course, how many have I been doing for so many years, I'm surprised, I don't use cluster search, is there any point in

[28:24] I trade cryptocurrency, I already know a lot, take it, take it, if it drags on, then how about making an update and buying more and those courses that you don't have, plus you will have a student discount, but keep in mind that of course in the end it will be

[28:40] more expensive if you buy all this, but nevertheless, will the working? Good question, I don't think they will, but they will work

[28:53] quite weakly, like now, for example, what is happening with cryptocurrency, since we're talking about cryptocurrency, levels work perfectly on cryptocurrencies, if you did n't know, ideally, especially these trend lines, they

[29:07] work perfectly, but what is their downside? Why can we say that on cryptocurrency the level doesn't really work, that is, it would seem to work and the sizes don't work at the same time Why? Because in cryptocurrency you will see a

[29:19] situation like this, and here such a spike happens, and then there is a return, that is, it seems like the level worked, but at the same time you got knocked out accordingly by stops, and you can’t do anything about it, damn it, you can’t

[29:31] stops, and you can’t do anything about it, damn it, you can’t trades crypto, you understand perfectly well what I’m talking about now. No matter what, I did n’t bother here, and regarding the stop order, you’ll still get knocked out, damn it, whether

[29:46] order, you’ll still get knocked out, damn it, whether you want it or not.

[30:18] long time to set up. I wanted to show you my trade, but there was a cheat, I won’t show you, but for now I’ll

[30:39] approximately somewhere here, here I’m shorting, let me increase the momentum, here I’m shorting, let’s shorten the order, with this kind of stop, the market clearly hits your home tab, A100 pit, and reverses, although there

[30:57] is a level here, but such an inheritance on the area, and you can’t do anything about it, you’ll still get knocked out, and before that, watch and Why did I give an example of this trade? Because when I entered this trade, I

[31:11] think it's very volatile. 0 is placed, so most likely the stop loss was triggered here. Because this has happened before, you see this pin, I thought, okay, I'll place a stop order here anyway, if it goes to 100, it will hit me

[31:26] anyway with such a pin, it will retreat anyway, whether you want it or not, in any case, so I put a stop here, and as a result, I get stopped out, and the market reverses. But this is a classic, in general, so this is a question, you know, this is a

[31:41] tricky one. You can say that it works at a level, but they no longer work the way they did in the 60s.

[32:00] Forex, of course, which market to choose for a beginner? which market to choose for a beginner? Please choose. At the moment, it's better to choose, of course, the stock market for a beginner is more understandable, but if

[32:13] you don't have money, but you hang in there, choose cryptocurrency long should it take to create approximately how long should it take approximately to

[32:29] create the trading system itself? Natasha, the trading system itself depends on Friends, how can I tell you how to do this? So,

[33:00] one trade if you're trading crypto, no, it doesn't. On the contrary, it's even fraught with increasing your loss limits until you're blue in the face and ultimately

[33:15] loss limits until you're blue in the face and ultimately losing your entire deposit. trade with short stops. They're not kilometers long, and because short stops

[33:29] kilometers long, and because short stops work somehow, to put it mildly, they work very rarely, very rarely, and they work very rarely, very rarely, and sitting out some trades responsibly,

[33:43] waiting for them to enter with a short stop is clearly not for me. For me, setting a stop should be logical. If logic allows me to set a large stop, then I set it large. If logic allows me to set a short stop,

[33:59] I set it short, but short stops don't always work for me. By and large, it's not even the stops that are important, but the risk-to-reward ratio that matters. This is accordingly important because if we move on to the

[34:16] same example that I showed you,

[34:32] here, the risk is approximately 2 cents, and the potential is about 10 cents to get somewhere get somewhere 1 to 5 transaction 15 and here is the potential,

[34:53] so that the stop right there is very, very small is is very, very small is definitely not for me good,

[35:05] so let's say goodbye until next week next week on Saturday at a colleague's place and exactly at 19:00 there will be stress on the stream, we have at 19:00 there will be stress on the stream, we have n't decided yet which one to dedicate it to you,

[35:18] but which one to do in the new stream because available accordingly on YouTube the link to it will be pinned in the

[35:31] comments follow this link you will get to the playlist and you will study this topic accordingly of course this course is intended for complete dummies for complete beginners in order to get some more or less just a very, very

[35:45] not losing money yourself in the market money will not be lost for fish in the lose money in the market you will definitely never buy my courses, so I am interested in money at first We haven't lost anything, but to

[36:00] earn money, we need to buy my courses. The link to everything is in the description.