// HOW-TO GUIDE
20 min READ
How to Build a Trading Strategy
A trading strategy is just a set of rules that gives you a statistical edge. It should be based on objective observations, not feelings. This is the 5-step process for building your own.
01
Define Your "Setup"
What specific market condition are you looking for? (e.g., a pullback to the 20 EMA in an uptrend).
02
Define Your Entry and Exit
Exactly where do you click buy? Exactly where do you take profit? Exactly where do you admit you are wrong?
Common Mistakes to Avoid
- /Making the rules too complex
- /Not writing the rules down
The Drawdown Way
We provide 5 proven "Blueprint" strategies for our students to use as a starting point.
Questions & Answers.
Does a strategy need indicators?
No. Some of the most profitable strategies are based entirely on price action and market structure.
Ready to trade the truth?
Stop guessing. Start learning with Drawdown and master the business of managing risk.
Join Drawdown Free