Latest Forex Trading Strategies
5 Day Breakout Forex Strategy
Many of the world’s top forex traders trade breakouts for big profits, and we can agree to the fact that although it’s not an entirely new concept, traders have continued to take advantage of this idea. The 5 Day Breakout Forex strategy is designed to take advantage of levels where the price moves out of its 5-day trading range. Once price exceeds the range of the 5-d [...]
5-34-5 Forex Oscillator Strategy
The 5-34-5 Forex oscillator strategy is designed to deal with the most immediate trend and provides easy to understand buy and sell signals on any pair. Entry signals are only issued when the trading setup confirms a shift in price action. Based on a risk management perspective, the 5-34-5 Forex oscillator strategy is designed to always engage the market with a superior r [...]
4 MA Strength Forex Trading Strategy
The 4 MA Strength Forex trading strategy is reliant on trading pullbacks in a trending market. The strategy is designed to fully combine the strength of the prevalent trend that’s being traded together with its overbought or oversold price characteristics. You can use lower timeframes ( M1, M5, M15) but the higher timeframes (H1, H4) are my favorite ones for trading th [...]
3 Level Semafor Forex Trading Strategy
The 3 Level Semafor Forex trading strategy should be used when trying to catch breakouts in the market. The basic idea behind this strategy is the ability to utilize the colored circles, which are actually meant to reveal the direction price is heading and when to initiate orders. The inclusion of additional indicators to this strategy is to minimize noise and to show cle [...]
Latest Forex Scalping Strategies
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 [...]
1-Minute Forex Scalping Strategy For EUR/JPY
Forex beginners can always rely on a 1-minute scalping strategy as a good starting point. However, traders must be aware that this strategy will require a great deal of concentration and time. You should be able to dedicate a few hours to this strategy, else it might not be suitable for you. The 1-Minute Forex Scalping strategy for EUR/JPY is one of the most simple and [...]
Latest Scalping Trading Systems
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 [...]
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 [...]
Latest FX Day Trading Strategies
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 [...]
EUR/JPY 5-Minute Forex Day Trading Strategy
Day trading strategies offers the prospect of buying and selling a forex pair within the same day, or even attaining this practice multiple times over during the course of the day. As a key ingredient, day trading strategies are known to capitalize on the incessant price movements. The EUR/JPY 5-Minute Forex day trading strategy relies on an in-depth technical analysis w [...]
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 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.
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.
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.
- 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 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.
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.
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.