Latest Forex Trading Strategies
RSI Breakout Forex Strategy
The RSI Breakout Forex strategy is a trading system designed to offer much more reliable and stable performance. The strategy involves price action analysis which will assist you to make amazing trade entries and exits. This strategy allows traders gauge continuation breakout (when price continues to move in the same direction), and reversal breakout (when price rever [...]
Brain Trend Signal Alerts Forex Strategy
The Brain Trend Signal Alerts Forex strategy is technical in nature and can be used by retail forex traders to determine accurate buy or sell market decisions. Analyzing this strategy is quite simple using the resources that we have provided. When pooled with appropriate risk management and a wide-ranging trading approach, our strategy can do wonders. Our analysis is d [...]
Bollinger Bands With MACD Forex Strategy
The Bollinger Bands With MACD Forex Strategy is designed to be more flexible in adapting to ever-changing market conditions. A criteria that every currency trader must possess in order to profit from forex market volatility. Moreover, this strategy helps traders avoid confusion when market conditions becomes unclear. Considering the increasing imponderable nature of [...]
Double EMA Channel Forex Trading Strategy
The Double EMA Channel Forex trading strategy, as the name suggests is a very simple trading strategy that employs the use of two exponential moving averages. This strategy is known to work great for swing trading, scalping and intraday trading. In other words, our strategy works in both bigger and smaller time frames. This strategy will first look for signs that a rea [...]
Latest Forex Scalping Strategies
Pip Trend Forex Strategy
The Pip Trend Forex strategy is designed to help traders legally steal pips from the market on a daily basis. It’ll also show you where institutional traders are placing their bets. By learning this strategy, you stand to make better scalping trades and equally earn more pips. You can quickly distinguish between a strong trend and weaker one when using the Pip Trend [...]
1-Minute Micro Forex Trading Strategy
Traders who are attempt to explore scalping opportunities in the currency market do stand a chance when they own a reliable trading strategy. Every scalping strategy is made up of a number of variables and it’s always advisable to keep things simple. The 1-Minute Micro Forex Trading Strategy can be used for scalping trending forex currency pairs with nice ROI. Tra [...]
Latest Scalping Trading Systems
M1 Trading Signals Forex System
Some traders in the forex market are known to exhibit extreme patience, allowing time to wait for the perfect trade setup, while we have others who need to see market moves occur quickly. It is for those impatient souls that the M1 Trading Signals Forex system is designed for... The strategy trades off the 1-minute forex charts, so there will be plenty of tradable signals [...]
5-Minute Forex Scalping System For EUR/JPY
The purpose of scalping is to accrue profits through the fast buying and selling of currency pairs. This is made possible when open positions are held for a very short time and subsequently exited for a small profit. So many traders rely on technical analysis as a means of attaining these scalping signals that creates fast buy and sell decisions. The 5-Minute Forex sc [...]
Latest FX Day Trading Strategies
Alligator Forex Signal Trading Strategy
The Alligator Forex Signal trading strategy is designed to add some bite to your trading. The use of two indicators within the strategy is to try and shore up weak spots within each indicator. This is done to assist in reducing the false signals that might arise during the sleeping phase of the alligator-signal-indicator and possibly improve the timing of the trading ale [...]
3D Oscillator Forex Strategy
The 3D Oscillator Forex strategy is an intraday trading system with fine-tuned entry conditions and a well-designed risk management component. Positions can however be held as long as the conditions for the trades remain valid, not minding if it implies holding the positions overnight. The chief idea behind the 3D Oscillator Forex strategy is to accumulate profits on t [...]
Latest Price Action Strategies
Awesome Support & Resistance Forex Strategy
The awesome Support & Resistance Forex trading strategy is a based on price action and defines powerful buy/sell setups with the help of support and resistance zones. Moreover, it prevents the trader from taking risky trades. Trading without the use of support and resistance zones is like blind driving. Regardless of the strategy that you adopt, support and res [...]
No Lag Divergence Forex Trading Strategy
The No Lag Divergence Forex trading strategy is a powerful trading strategy that enables traders to trade divergences in the right bullish/bearish market condition. Moreover, divergence combined with the right mix of technical indicators can build a robust method that works great on any currency pair and timeframe. Regular divergence are usually employed as a likely sign [...]
Latest Forex Indicators
Disparity Index Forex Indicator
The Disparity Index forex indicator for MetaTrader 4 is a technical momentum that links market price to a time-specific moving average of the prices in the market. Chartists 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 [...]
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. T [...]
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 a series of alerts which generates buy or sell trade decisions.
A forex strategy can come in the form of a manual or automated trading system.
Manual Strategy
A manual trading strategy will involve a trader having an already set of buy/sell trading rules or conditions 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 or strategies.
The trader is required to make sense off the pattern by interpreting whether it is a buy or a sell alert.
Automated Strategy
An automated strategy on the other hand is an algorithm with a set of buy/sell rules or trade conditions which are subsequently molded into a software, better known as a forex robot (EA).
Most automated systems are designed for the Metatrader 4 (MT4) trading platform.
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 Own Forex Trading Strategy
In order to build your own 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
Price Action
If you own a trading strategy that relies on price action, it means you rely purely on candlestick or chart patterns or a mixture of 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.
Forex Scalping
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 is 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 replicates such trades across the trading session, thereby yielding massive gains when added up.
News Trading
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
A trading strategy that deploys a set of rules that are easy to grasp and execute when trading pairs is known as a “Basic/Simple forex Trading Strategy.”
Most such simple strategies follow the trend.
Other types of forex trading strategies include the “Complex Trading Strategies” where a lot more rules or trade conditions needs to be fulfilled before executing an order.
Such systems are devoid of numerous rules or conditions that will in most cases leave the trader confused.
Complex strategies are only recommended for expert traders.