Latest Forex Trading Strategies
Gator Elder Forex Trading Strategy
The Gator Elder FX trend following strategy combines two very vital technical studies, one for trend direction and one for trade entry in the direction of the trend. To be able to experience this awesome strategy, you’ll have to add the indicators (download strategy below) unto your trading chart and watch out for the patterns to unfold. Chart Setup MetaTrader4 Indic [...]
DMI Oscillator Forex Trading Strategy
When forex traders skim the market for small profits on a consistent basis, they obviously know they are doing this to grab small profits in any possible manner as many times as they possibly can. I have designed a very modest forex strategy with elementary indicators that can be applied to low spread currency pairs. Ensure that you use them only on the M1, M5, or M15 tradin [...]
Latest Forex Scalping Strategies
Dynamic Oscillators Forex Scalping Trading Strategy
Understanding how scalping works is crucial to surviving the currency trading market. The notion that surrounds forex trading is one that is risky, but scalping simplifies trading and dampens the risks. I have designed a strategy that is conscious all these risks and can be applied to low spread currency pairs. Chart Setup MetaTrader4 Indicators: Detrended_Synthetic_Pr [...]
FIBO Forex Scalping Trading Strategy
The FIBO forex scalping trading strategy is designed to allow traders take advantage of a fast moving market. This is why the strategy is laced with potent indicators that can be applied to the most liquid forex pairs. Chart Setup MetaTrader4 Indicators: Quantile_bands_1.3.ex4 (default setting), FIBO_S.ex4 (default setting) Preferred Time Frame(s): 1-Minute, 5-Minutes, [...]
Latest Scalping Trading Systems
Fisher EMA Forex Trading Strategy
The Fisher EMA forex trading strategy is a strategy that combines the wit of the Exponential Moving Average (20) and that of the Fisher custom indicator in delivering scalping signals for market participants. The system can be easily deployed by newbies and advanced traders alike. Chart Setup MetaTrader4 Indicators: Fisher.ex4 (default setting), Exponential Moving Average [...]
FT Forex Signals Trading Strategy
The FT forex signals forex trading strategy is an FX scalping strategy that allows traders profit from a wide range of assets in the currency market. The strategy combines two simple to use trading indictors in delivering accurate signals. Chart Setup MetaTrader4 Indicators: Forex_Trend_Signalsv1.ex4 (default setting), forex-mt4-trend-indicator.ex4 (default setting) Pr [...]
Latest FX Day Trading Strategies
Kijun Tenkant Forex Trading Strategy
The profitable Kijun Tenkant forex day trading strategy is a system that comprises of 2 simply to apply forex indicators. These indicators are combined on the chart to yield a set of rules that when followed can trigger buy/sell opportunities in the market. Chart Setup MetaTrader4 Indicators: Rads_MACD.ex4 (default setting), Kijun Tenkant.ex4 (default setting) Prefe [...]
Trend Linear Forex Strategy
The Trend Linear forex strategy is a simple intraday trading system that can be utilized by any trader out there. The strategy makes use of two forex trading indicators in deciding when a trader should enter a buy/sell. Chart Setup MetaTrader4 Indicators: TrendLinearReg.ex4 (default setting), (T_S_R)-SlopeDirectionLine.ex4 (period value modified=100) Preferred Time [...]
Latest Price Action Strategies
Fakey Donchian Forex Trading Strategy
The fakey Donchian forex trading strategy is a combination of the fakey price action pattern in addition to the Donchian Bands and volumes MT4 indicators. The fakey price action consists of three or more candlestick price patterns, starting off with the inside bar pattern following by a false breakout. The Fakey pattern is essentially a false breakout from an inside bar patt [...]
Price Action Trend Line Forex Trading Strategy
The price action trend line forex trading strategy is a strategy that trades based on a trend line breakout setup. The trend lines 0-2 and 0-4 are drawn, with the point 0 being the extreme high or low for a bullish trend and bearish trend respectively. The strategy adopts the True Range Envelopes and X-Wave-elliot custom indicators in fine tuning the signals. Fig. 1.0 [...]
Latest Forex Indicators
Disparity Index Forex Indicator
The Disparity Index forex indicator for MetaTrader is a technical momentum that links market price to a time-specific moving average of the prices in the market. Chartist tend to use the disparity index as a tool to spot signals of trend strength and the likelihood of an impending exhaustion. Other traders and analysts deploy the Disparity Index as a tool for defining overso [...]
Smoothed Hull Moving Average Forex Indicator
The oT_S_Ra-Signal_Line indicator for MetaTrader4 and was initially created by Allan Hull. The oT_S_Ra-Signal_Line indicator is essentially the Hull Moving Average or the HMA and it is used in spotting current market trend. The curve of the oT_S_Ra-Signal_Line indicator is significantly smoother. The oT_S_Ra-Signal_Line is built to follow the price activity much closer. Trad [...]
What is a Forex Trading Strategy?
A forex strategy is a set of studies carried out by a trader to decide whether to buy or sell a currency pair at any particular instance.
A trading strategy can be centered on fundamental analysis, event risk or technical analysis charting tools. It is usually designed to provide series of alerts, which generates buy or sell decisions.
This implies that they can be designed by the trader or vendor, for a certain fee. A forex strategy can come in the form of a manual or automated trading system.
A manual trading strategy will involve a trader having an already set rule or condition that he’s required to adopt based on price/indicator pattern, while he sits in front of his computer to wait for such patterns to develop.
Many traders use techninal indicators to develop their manual systems.
The trader is required to make sense off the pattern by interpreting whether it is a buy or a sell alert.
An automated strategy, on the other hand, is an algorithm with set rules or conditions, which are subsequently molded into a software, better known as a forex robot (EA).
Most automated systems are designed for Metatrader 4 (MT4).
It that can be plugged onto your charts, thereby trading on your behalf – it is potent enough to initiate buy or sell orders for the trader.
In most cases, automated trading is said to eliminate the human side of psychology that greatly hampers smooth trading in a lot of traders.
Build Your Forex Trading Strategy
In order to build your strategy, you’ll be required to follow a well-planned route. Note that your ultimate survival in the FX market depends largely on how successful your trading strategy will become.
The absence of a reliable trading strategy will imply that you are at the mercy of the market or that you’re possibly chasing a breakout (which might possibly turn out to be a snare).
A trading strategy is designed to scan the market for the finest set-ups, which do not in any way promise profitability but are essentially openings with measured risk.
In order for you to build a trading strategy that ensures minimal risk while guaranteeing profitability, you should do the following:
- Learn how to spot worthy trends when in an active market scenario
- Empirically pinpoint what a profitable entry looks like on the activity chart
- Determine your stop-loss and take-profit level via a well-defined risk management approach
- Incorporate a time frame that best suits your lifestyle and trading preference
Having the right mental framework is very vital in the market, as this will help erase the notion that a vast majority of traders obviously fail at trading.
However, currency trading is a personal journey and you must own up to that responsibility.
Test Your Strategy On Demo First
It is imperative that you do not risk your hard earned money just yet. You might just blow up your account before you settle in.
Test your trading strategy on a demo account for a few month, see how to it responds to the varying market scenarios as they playout.
The longer you test your strategy, the better chance you stand in the market.
Trade With a Reputable Forex Brokerage Firm
Do not make a hasty decision when choosing a broker that you intend to pass your cash over to. The FX market has a massive pool of MT4 brokerage firms to pick from.
Each broker has its weaknesses and strengths, making a call to selection, an important one.
If you’re designing a short term strategy then you’ll obviously want to factor in bid/ask spreads and execution, while those gunning for a long term trading strategy need to take into consideration the swap” rates paid by brokers.
This is true if you wish to make money on the interest rate differentials between currencies. See our selection of the best FX brokers here.
Forward and Backward Test Your FX Strategy
We find a lot of currency traders that are comfortable with back testing their strategies. This essentially will reveal how well a strategy performed in the past.
This is a good step to take, howbeit, just because a strategy did well in the past does not guaranteed future profits.
This is so because when you backtest, you actual “curve fit” to a large extent.
Deploy Suitable Risk Management
It is wise to own a rock-hard risk-management strategy and also stick to it. For instance if you have it all planned to risk 2% of your equity on one trade, abide by this…
… and don’t adjust it upward just because you feel so sure about a trade you intend entering.
You might also want to avoid moving your stop loss when a trade is moving against you. You have it all planned, stick to it!
Types of Forex Trading Strategies
Take a look at the various types of strategies you can use to trade forex online. These include pattern strategies, fibonacci strategies, scalping strategies, swing strategies, trend strategies, counter-trend strategies,…
If you own a trading strategy that relies on price action, it mean you rely purely on candlestick or chart patterns or a mixture of them both, along with technical indicators that define price action.
It is possible to trade currencies by just staring at price bars. This method is for all intents and purposes formed via the analysis of price movement, and it can adopt a wide range of timeframes.
A strategy that is designed to work on much lower timeframes i.e. 1-Minute and the 5-Minute timeframes, is a forex scalping trading strategy.
This type of Forex trading strategy are designed to scan the market for small profits on every trade entered, for instance 5 pips, 10 pips or maybe 15 pips profits.
What this strategy does is that it replicate such trades across the trading session, thereby yielding massive gains when added up.
There’s also a strategy that relies on forex news for buy and sell signals. If you have a trading strategy that trades based on farm payroll or employment/unemployment or interest rates figures, then it means you are trading the news.
These news releases are issued by various agencies on set dates within each month. Caution needs to be taken when designing a strategy around economic news releases, considering its extreme volatile nature.
Basic/Simple Forex Trading Strategy
Other types of forex trading strategies includes the “Complex Trading Strategies,” where a lot more rules or conditions needs to be fulfilled or not before executing an order.
Such systems are devoid of numerous rules or conditions that will in most cases leave the trader confused. Only recommended for expert traders.