What is the best way to proceed: develop your own trading system or use one of those that can be found in sufficient quantities on the Internet? This question is faced by many traders. And there is no definite answer to it. In addition, the opinions of the traders themselves differ. Some of them are sure that only a strategy created on their own can be profitable. Other traders believe that there is no point in wasting time on such work. A ready-made trading strategy is a good option.
Which one is right? Let’s try to figure it out. And for this it is necessary to find out what advantages and disadvantages the use of own and third-party TS in trading has. This topic will be especially useful for newcomers to the market, since it is still difficult for them to make an independent decision.
Ready-made trading strategy – pros and cons
In my opinion, the main advantage of such trading systems is the fact that they, as a rule, have already been repeatedly tested in practice. Almost no one uploads a newly created vehicle to the network. Usually it comes with trade clauses. They allow you to analyze the trading result and form a preliminary estimate. In addition, the trading strategy can be transferred to the program year. This simplifies the testing process. By the way, there is an opinion that trading strategies that have been used in the market for a long time stop working. But this is certainly not the case. There are many confirmations of this. It may only need a little optimization of its conditions in order to improve trading results.
The second advantage of such systems is that they can be a good opportunity for a trader to improve their professional level. But it will be possible if you take trading seriously. Any vehicle is someone’s realized idea. It is very useful to understand why exactly such conditions for opening, maintaining and closing deals were selected. Careful observation of the work of a ready-made trading strategy will help you to better understand the market and the principles of creating a TS. This is especially important for those new to the market.
However, it is not always possible to understand the authors’ intent. This is especially true for systems overloaded with technical analysis tools. In this case, it is impossible to understand the system. And this is perhaps the only drawback in using ready-made trading systems.
Own vehicle – pros and cons
Such a trading strategy is the result of one’s own observations of the market and analysis of various market situations. It is clear to a trader in the smallest detail. And this makes it easy to optimize the conditions of the trading system, if the need arises. And this is the main advantage of your own vehicle.
Well, the disadvantage of creating a strategy yourself is one necessary requirement. A trader can perform this work only if he already has a sufficient amount of knowledge and some experience in trading. It will be impossible for a newcomer to the market to cope with such a task. Of course, he can try to create a TS, but the probability of success is close to zero. Therefore, the best option for novice traders is a ready-made trading strategy . And as you gain knowledge and experience, you can try to create your own unique trading system.