Building a Strategy from Scratch: Where Do You Start?
Most traders, if we’re being honest, don’t really have a strategy, they have a setup. A signal. A hunch. Maybe something they picked up on a Discord server or stumbled upon in a late-night rabbit hole of YouTube and indicators.
But building an actual strategy? That’s a whole different story.
It’s not just about drawing lines or finding that one magical entry. It’s about putting together a system that has logic, structure, and purpose—even if it’s simple.
Think of it like this: a strategy isn’t just how you get into a trade. It’s how you decide when the market environment is right for your approach. It includes how you define risk, how you manage outcomes, how you respond to different conditions, and—yes—when you sit on your hands and do nothing.
It’s a full picture, not just a moment.
Step one: Know your environment
Before anything else, it helps to understand what kind of market conditions you’re even looking to work with.
Some traders focus on strong trends, others prefer when price is stuck in a range. Some look for volatility; others avoid it like it’s a scam email.
There’s no “better” option. But knowing which type of environment you want to observe can help guide every other decision—from what indicators you consider to how you track performance later.
Step two: Build a framework (not just a signal)
The entry is the flashy part—but it’s just one component.
A framework might include:
This is where context really matters. A signal is just data. A framework is how you read that data and decide what’s worth paying attention to.
Step three: Clarify what you track
Strategy development is just theory without feedback.
That doesn’t mean you need a million spreadsheets—but a good strategy invites reflection. You might want to ask:
You’d be surprised how much you can learn from reviewing a handful of examples with that lens.
Step four: Define your version of “success”
Not everyone’s running the same race. Some people value high win percentages. Others focus more on consistency. Some want long-term performance across different assets; others are content observing one pair or index with high precision.
What matters is knowing what you’re trying to achieve—so you can actually tell if your strategy supports it.
And if that changes over time? Totally normal.
One more thing: Complexity isn’t the goal
This part’s important.
There’s a weird belief that serious trading must be complicated. That strategies need five indicators and multiple confirmations and algorithms whispering secrets behind the scenes.
Truth is, many robust strategies are deceptively straightforward. What makes them work isn’t the complexity—it’s the consistency.
Bottom line: it’s your puzzle
There’s no universal blueprint here. That’s what makes strategy building feel frustrating… and freeing.
You’re not trying to “beat” the market. You’re just trying to make sense of it your way—with tools, logic, and structure that reflect how you see the world.
And if you're experimenting, testing, or just organizing your ideas into something clearer—you're already doing more than most.
So take your time. Sketch. Observe. Iterate.
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Most traders, if we’re being honest, don’t really have a strategy, they have a setup. A signal. A hunch. Maybe something they picked up on a Discord server or stumbled upon in a late-night rabbit hole of YouTube and indicators.
But building an actual strategy? That’s a whole different story.
It’s not just about drawing lines or finding that one magical entry. It’s about putting together a system that has logic, structure, and purpose—even if it’s simple.
Let’s back up: What even is a strategy?
Think of it like this: a strategy isn’t just how you get into a trade. It’s how you decide when the market environment is right for your approach. It includes how you define risk, how you manage outcomes, how you respond to different conditions, and—yes—when you sit on your hands and do nothing.
It’s a full picture, not just a moment.
Step one: Know your environment
Before anything else, it helps to understand what kind of market conditions you’re even looking to work with.
Some traders focus on strong trends, others prefer when price is stuck in a range. Some look for volatility; others avoid it like it’s a scam email.
There’s no “better” option. But knowing which type of environment you want to observe can help guide every other decision—from what indicators you consider to how you track performance later.
Step two: Build a framework (not just a signal)
The entry is the flashy part—but it’s just one component.
A framework might include:
- What timeframes you observe and why
- Conditions or filters that matter to you (volume, volatility, session time)
- What kind of tools help you confirm your idea (maybe moving averages, maybe VWAP, maybe none)
This is where context really matters. A signal is just data. A framework is how you read that data and decide what’s worth paying attention to.
Step three: Clarify what you track
Strategy development is just theory without feedback.
That doesn’t mean you need a million spreadsheets—but a good strategy invites reflection. You might want to ask:
- What happens before things work out?
- What happens when they don’t?
- Is there a specific condition that tends to repeat?
You’d be surprised how much you can learn from reviewing a handful of examples with that lens.
Step four: Define your version of “success”
Not everyone’s running the same race. Some people value high win percentages. Others focus more on consistency. Some want long-term performance across different assets; others are content observing one pair or index with high precision.
What matters is knowing what you’re trying to achieve—so you can actually tell if your strategy supports it.
And if that changes over time? Totally normal.
One more thing: Complexity isn’t the goal
This part’s important.
There’s a weird belief that serious trading must be complicated. That strategies need five indicators and multiple confirmations and algorithms whispering secrets behind the scenes.
Truth is, many robust strategies are deceptively straightforward. What makes them work isn’t the complexity—it’s the consistency.
Bottom line: it’s your puzzle
There’s no universal blueprint here. That’s what makes strategy building feel frustrating… and freeing.
You’re not trying to “beat” the market. You’re just trying to make sense of it your way—with tools, logic, and structure that reflect how you see the world.
And if you're experimenting, testing, or just organizing your ideas into something clearer—you're already doing more than most.
So take your time. Sketch. Observe. Iterate.
That’s where the real strategy begins.
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Note
What’s your approach when building a strategy from scratch?I’d love to hear how others tackle this—drop your thoughts or experiences in the comments.
Note
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DM or find me:
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
DM or find me:
linktr.ee/ABTTrading
linktr.ee/ABTTrading
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.