Latest Forex Trading Strategies
MACD & Momentum Forex Strategy
The MACD & Momentum forex strategy enables traders to quickly buy and sell pairs in trending markets at a good price with the help of the Momentum and MACD indicator. The following charts below will help us further understand how things work: Chart Setup MetaTrader4 Indicators: Triggerlines2.ex4 (Inputs Variable Modified; Rperiod=50, LSMA_Period=12), Momentum (Pa [...]
MACD And EMA Winning Forex Strategy
A winning forex trading strategy is obviously one that understands that the market is made up of ups and downs, within which profits can be taken in either direction. Most importantly, no one system can consistently churn out profits, but being able to overcome its sessions of losses is key to staying afloat in the market. The MACD/EMA Winning forex strategy is designed [...]
Latest Forex Scalping Strategies
1-Min MACD Forex Trading Strategy
Scalping is a great way to benefit from small up/down price movements when entering trades for a short time duration. The 1-Min MACD Forex Trading Strategy is a great scalping strategy and deploys a set of indicators that complement each other in a bid to validate short-term trade entries and exits. Technical indicators such as the VoltyChannel_Stop_v2.1M, WildersDMI and [...]
5-Min MACD Forex Trading Strategy
The 5-Min MACD forex trading strategy provides traders with a good amount of buy/sell trade opportunities throughout the 3 most important trading sessions. I highly recommend to apply this strategy on low spread forex pairs such as EUR/USD, GBP/USD and USD/JPY for maximum results. Chart Setup MetaTrader4 Indicators: vr_moving_average.ex4 (Inputs Variable Modified; P [...]
Latest Scalping Trading Systems
Sniper Forex Trading Strategy
The Sniper forex trading strategy is a trend following scalping method that is to a large degree sensitive to price changes on the 1-Minute, 5-Minute and 15-Minute chart. Scalpers can rely on this amazing strategy to boost their trading results – this is a must have system that keeps things simplified, but at the same time profitable. Chart Setup MetaTrader4 Indicato [...]
Round Price Forex scalping Trading Strategy
The Round Price scalping strategy is a simplified scalping system that uses basic indicators in defining buy/sell forex signals as price moves along. It is an unsophisticated trading system that is devoid of complex entry rules or conditions. Chart Setup MetaTrader4 Indicators: RoundPrice-Ext.ex4 (default setting), SHI_SilverTrendSig.ex4 (default setting) Preferred [...]
Latest FX Day Trading Strategies
MACD Day Trading Forex Strategy
The MACD Day Trading forex strategy is a smart day trading technique that comes with precision and can be deployed on a wide spectrum of trading instruments. To achieve this precision, the MACD indicator together with two other technical indicators play a vital role in early detection of trend, spotting divergences and measuring trend patterns respectively. Chart Setup [...]
Daily MACD Forex Trading Strategy
In order to open and close trades the same day, an effective intra-day trading strategy is required. The Daily MACD forex trading strategy is an effective intra-day strategy built around the MACD indicator and some other technical indicators. Each indicator acts separately (spot resistance/support areas, smoothen price, measure oversold/overbought zones and define trends [...]
Latest Price Action Strategies
R3/F3 Method Forex Trading Strategy
The R3/F3 method forex trading strategy is a continuation price action pattern that can be used to gauge if the swing/trend will be continuing in the same direction, thus offering traders increased chance of raking in more profits. Chart Setup MetaTrader4 Indicators: FX_Fish.ex4 (default setting), HAMA_.ex4 (default setting), FRAMA.ex4 (default setting) Preferred Time [...]
3-Inside Up/Down Price Action Forex Trading Strategy
The 3 Inside Up/Down forex trading strategy is a trend reversal price action trading pattern that can be spotted at the top or bottom of bullish or bearish trend respective. Trading this price action alongside some custom indicator, does increase the chances of winning. The pattern is essentially a triple candlestick pattern as depicted in our examples below. Chart Setup [...]
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. 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 ov [...]
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 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 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.
- 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
A trading strategy that deploys sets of rules that is easy to grasp and initiate when trading is known as a “Basic/Simple forex Trading Strategy.” Most such strategies follow the trend.
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.