System Vs. Strategy

Trading System and Trading Strategy: They are the same thing just different words… right?

Not really…

Let me float this out there because I need to work through it in my mind:

SYSTEM: Entries Only

STRATEGY: How you manage the variables around those entries

So, with this idea, is any entry is “ok” as long as the strategy is clearly thought out and executed? I have realized that I think so much about the systems, or the entries, that I lose sight of the strategy. A strategy is a plan of attack to obtain a goal or accomplish and end. From what I have seen in business and trading, strategy makes the difference, not the system.

For example, lets say there are 100 people that clean carpets in a city. The system would be the same for all of them right? Show up, move furniture, clean, replace furniture, leave, repeat. (cleaning methods may vary but system for making money is the same)

So what differentiates those 100 people? Strategy!


Customer service styles, advertising, business model, appearance. These are all very personal and variable factors that make up strategy.

So maybe in trading, myself and 99 other people have the Bombora system lets say. What is strategy? I can run it on an EA, I can trade it short term or long term, and I can pick the session and the pair I want to trade it on. Again all very personal and variable factors. So the system itself doesn’t change but the strategy with how its used varies greatly.

In short I am struck with the idea that I can trade almost any system in the world if I can work out my strategy for making and managing money.


1.What session fits into my day best? What session fits my system best?

2.Do I think about strategy when my system executes a trade or is that where everything turns reactive? Am I constantly worried about losing? Do I have confidence in what I am doing or am I guessing?

3.What is the best way to develop and practice my strategy? Backtesting absolutely lets me practice my system, but do I use it to test my strategy as well? Can I even test a strategy by backtesting?

I would love to hear from anyone reading this what you think about this topic. Definitely still processing this



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