Most profitable Forex strategiesBarry Copeland 23 / March / 18 Visitors: 226
Most profitable Forex strategies
Forex strategy is a carefully developed system of rules followed by a trader who wants to increase his money in the foreign exchange market.
Without a strategy, a trader in the market becomes absolutely helpless, having no idea where to go and what to do in this or that situation. But the presence of a strategy, on the contrary, will allow the trader to enter and exit the deals with confidence, without panic and chaotic, inconsistent with the logic of actions.
It should be noted at once that the choice of a suitable strategy is not an easy task. A strategy, ideal for one trader, may well be extremely inconvenient for another. Therefore, the best strategy will be the right one for you - on all parameters and characteristics.
In this article we have tried to collect the five most profitable strategies, suitable for beginners.
1. Moving averages strategy is one of the most popular strategies for beginners. Its advantages include the ability to apply to almost any trading instrument.
Moving averages will be used for the timeframe W1 (to determine the current trend) and H4 (to enter into transactions). It is not recommended trading on minor timeframes due to the threat of false signals.
Two moving averages should be placed on the weekly chart:
Simple (period 5);
exponential (period 21).
In case the price is below two moving averages, we observe a downtrend, which means that on the four-hour chart only sales are considered. If the price is above the moving averages, we see an upward trend, which means that on the H4 timeframe only purchases are considered.
Having found out the current trend, we should go to the H4 chart and build three simple moving averages on it (period 7 and 55). As you can see in the above figure, there is a downtrend, which means that we are considering selling only.
The options to enter the deal are determined as follows:
At crossing of moving averages from bottom to top it is necessary to place a pending order for sale at the level of SMA55 moving average. When moving the moving average, we move the order after it until it triggers or changes the conditions for entry;
if the moving averages intersect from top to bottom, we wait for the candlestick to close below the intersection point, and then enter into sales at market value.
The Stop Loss is set at the closest local maximum, and Take Profit is set at the distance from the entry point, equal to two or three stop losses. Even if there are two losing trades in a row, the trader will be able to return the loss and gain profit if the third trade is closed favorably. We act the same way when buying, only stop-losses should be set at the local minimum.
Strategies using moving averages in our blog:
Trading on Arno Leg's Moving Average
"3 Moving Averages" is a binary trading strategy.
"Moving average" is an effective and simple trading strategy.
Binary Options Strategy - "Two Moving Averages"
The "Slide by average" strategy
Moving Averages Strategy for Binary Options "Different"
2. The Juicer strategy.
This "novice" strategy will also allow the trader to get the maximum profit by trading on daily timeframes on any trend currency pairs. An interesting feature of the strategy is that there is no need to use indicators - it makes the work on the exchange much clearer.
The scheme of "Juicer" strategy application is as follows:
The trader waits for the signal formation from a combination of Japanese candlesticks (in order to buy, you need to wait for a bearish candle, and then two bullish candles, and the body of the second bullish candle must close more than the maximum of the first);
the trader sets a pending buy order five points higher than the maximum of the second bullish candlestick, the stop-loss is placed at its minimum and Take Profit is five hundred points from the entry point;
when the price of two hundred points passes, it's better to turn the deal into a break-even one, and also to activate the trailing stop with a step of fifty points.
If a deal is in minus after four days, it is worth closing it on the market.