How to desogn a trading system???

Ur trading system should contain 2 parts
1. Define context
2. Entry exit set up and rules

Let's see them in detail

1/16

When u define the context u are essentially removing all the trades which are against the trend.
Suppose u objectively found trend is Bullish with any tools of ur choice. Then all the shorting signals ur entry exit method generates can be avoided

2/16

The tools u use to define the context of the major trend can b anything
1. Supertrend positive
2. Price > EMA 20 > EMA 50
3. MACD abv zero and abv signal line
4. Price and rising vwap
5. Price is riding through upper Bollinger Band since last >20 bars

These are examples

3/16

This is one part of defining the context. Now how about ensuring the trend in this TF is same as the one from HTF as well??
This will add lots of odds in trade success.
Suppose ur trading TF is 5min, then a check up in 25min TF is highly desirable.

4/16

If 25min TF too is Bullish, the the context is defined completely. But how to define trend in 25min TF ??

One method as follows
1. Last 25min candle has abv average volume and abv average spread with a close near high

5/16

Do u want to study past bear markets?

Use Weekly chart
Plot Bollinger Bands with 50,2 setting
Locate when ever price hit lower band
Locate the highest swing high befoire the fall
The period in between is bear market

Here we have 4 such occations after 2010.