Execution of the strategy

After you have built your trading strategy you have to be able execute it in real market environment. The execution of the strategy is the easier the more detailed the strategy is because when you have exact point to enter a trade, provided by your system, you don’t have to make any subjective evaluation about taking a trade. Look more about trading strategy in the strategy section.

The level of how well you are able to execute your strategy depends much on how much you believe in your edge. You truly have to believe in your edge and to be sure of it. Because if you do are not, you are not going to executing the strategy in perfect manner and thus your edge will vanish.

Exiting loosing trades and taking profits

When you have defined in your trading strategy the point of getting out of losing trade, you are able to execute your plan flawlessly. In this ways you are having smaller losses and bigger profits.

It is same thing with profit taking as it is with exiting trades that are not working. It has to be defined in your trading strategy to achieve the best execution of the strategy. Also it is sensible to scale your profit taking and moving your stoploss.

If you are inexperienced trader, you have to follow your trading plan very rigidly. After you gain more experience, you can be more subjective with your trading and use the knowledge of market behavior in strategy execution.