what is the hallmark of a good trading strategy?

@quentin_ubuma - 6 months ago - Forex Trading Strategies

Good morning members,

May i ask what is the sign that a trading strategy is good? I guess some may say backtesting is a good way but asides that what are the features of a good trading strategy?

@sizwe_twala - 6 months ago

A good trading strategy is repeatable meaning it has to be something that can be traded on a daily basis.

It also have risk management in it, meaning a stop loss & take profit target. A good strategy doesnt have to work 100% of the time, even 30% is okay.

Just ensure that when it doesnt work, you dont jump back into the market and revenge trade (accept your loss & walk away); and when it does work, you keep adding to your winning positions.

@segun_33 - 5 months ago

A good trading strategy is like a drug, it must be very specific and should work only under specific conditions and only on specific instruments. it shouldn't be a one size fits all kind of strategy.

A good strategy should leave nothing to chance, every detail such as timeframe, trading session, entry/exit point, etc. must be spelt out.