Forex Trading Strategies


 Forex Strategies

If you are looking for  forex trading strategies then check out these amazing free list of forex strategies below:

BASIC FOREX TRADING STRATEGIES

If you are beginner to  forex trading and just starting out, the following forex trading strategies are suitable for beginners. These trading strategies are very easy for newbie forex traders to understand and implement:

  1. 5ema and 8ema forex trading strategy
  2. 10 and 20 sma with 200 sma forex trading strategy
  3. 50ema forex trading trading strategy
  4. daily chart forex trading strategy
  5. 20 SMA With RSI Forex Trading Strategy
  6. inside bar forex trading strategy
  7. 200 EMA forex trading Strategy
  8. Parabolic SAR Indicator Forex Trading Strategy
  9. MACD Crossover Forex Trading Strategy
  10. Parabolic SAR And MACD Forex Trading Strategy
  11. Outside Bar Forex Trading Strategy
  12. 5 SMA And 5 RSI Forex Trading Strategy

 

SIMPLE FOREX TRADING STRATEGIES

The following  simple forex strategies here would also suit beginner forex traders.  Even advanced forex traders would find these forex trading strategies useful:

  1. 3emas forex trading strategy
  2. bollinger band forex trading strategy
  3. bollinger band squeeze forex trading strategy
  4. horizontal channel pattern forex trading strategy
  5. Three White Soldiers-Three Black Crows Pattern Forex Trading Strategy
  6. Bollinger Bands Forex Trading Strategy With 20 Period
  7. ADX Forex Trading Strategy
  8. Simple Moving Average Forex Trading Strategy With 5SMA, 10SMA, Stochastic & RSI indicator
  9. CCI Forex Trading Strategy
  10. Daily Pin Bar Low Risk Entry Forex Trading Strategy
  11. Third Shortest Candlestick Forex Trading Strategy
  12. Railroad Tracks Forex Trading Strategy

 

COMPLEX FOREX TRADING STRATEGIES

These forex trading strategies are bit complex as it would take a little bit of time for a beginner forex trader to understand so if you are up for it, here they are:

  1. 34ema with trendline forex trading strategy
  2. 4hr gbpusd forex trading trading strategy
  3. channel pattern forex trading strategy 
  4. head and shoulder pattern forex trading strategy
  5. inverse head and shoulder pattern forex trading strategy
  6. double top forex trading strategy 
  7. double bottom forex trading strategy
  8. descending triangle pattern forex trading strategy
  9. ascending triangle pattern forex trading strategy
  10. symmetrical triangle pattern forex trading strategy
  11. James16 Forex Trading Strategy

 

ADVANCED FOREX TRADING STRATEGIES

These forex trading strategies here are bit more advanced.  If you are a forex trader knowledgeable in forex technical analysis, then these forex trading strategies should not be difficult for you to understand and maybe you’d be already familiar with some of the trading strategies and systems listed here as you would have probably come across them in some forex sites before.

Or there may be some strategies on this list that you’ve not seen before and it may work out well for you. Here they are:

  1. 123 Pattern Forex Trading Strategy
  2. Floor Traders Forex Trading Strategy
  3. MACD Forex Trading Strategy
  4. Trendline Breakout Forex Trading Strategy
  5. Trendline Trading Forex Trading Strategy
  6. Support And Resistance Forex Trading Strategy
  7. Support Turned Resistance And Resistance Turned Support Forex  Trading Strategy
  8. Bullish Pennant Pattern Forex Trading Strategy
  9. Bearish Pennant Pattern Forex Trading Strategy
  10. Pin Bar Forex Trading Strategy
  11. DeMark Forex Trading Strategy

 

OTHER FOREX TRADING STRATEGIES & TRADING TECHNIQUES & IDEAS

  1. Middle Bollinger Band Forex Trading Strategy
  2. Third Strike Forex Trading Strategy
  3. Best Forex Trading Technique For Catching Trend Changes
  4. Two Simple Steps For Trading Price Action Reversals
  5. london-breakout-forex-trading-strategy
  6. Floor Traders Method With No Stop Loss Forex Trading Strategy
  7. Currency News Trading Forex Strategy For Non Farm Payroll
  8. Ross Hook Pattern Forex Trading Strategy
  9. Forex Interest Rates News  Trading Strategy
  10. 20 Pips Asian Session Breakout Forex Trading Strategy
  11. Best Trend Trading Strategy For All Timeframes
  12. Gravestone Doji Trading
  13. Bollinger Band Trading in 4 Simple Ways-the 4th Is The Best Way
  14. 2 Best Ways On How To Trade The Commodity Channel Index (CCI)
  15. Best Trend Trading Strategy For Capturing An Insane Amount Of  Pips!
  16. False Breakout Forex Trading Strategy On Support & Resistance Levels
  17. Daily Pin Bar Forex Trading Strategy With Low Risk High Reward

 

Forex Trading Strategies that work don’t have to be complicated.

There is no holy grail forex trading strategy. If you are looking for one, or think there is one holy grail forex trading strategy or indicator out there, you are greatly mistaken.

As a matter of fact, the more simple a forex trading strategy is, the chances are you will make money using that strategy…with proper trading risk management off course.

There are many  forex trading strategies that you can chose to work with in this website www.swing-trading-strategies.com.

Test each forex trading strategy out and see which one works for you.

Why is that?

Its because I can give a forex trading strategy to 2 forex traders but each will have differing results with the same trading strategy.

This may be due to a couple of reasons and the two main ones are:

  1. the forex trading strategy may not fit the trader’s personality.
  2. each may use differing type of risk managment

 

 

FOREX TRADING STRATEGIES THAT WORK AND WHY  

Forex Trading requires you to have have forex trading strategies and systems that work.

Now, know this… Not all forex trading strategies will give you 100% trading success rate.

But what really differentiates the best forex trading strategy from other trading systems is EDGE.

What is the Edge? Well, let me explain… Edge means:

  1. the trading system must have a set of definable circumstance(s) that are present in the market
  2. and these definable circumstances must have a statistical significance and
  3. therefore are likely to result in an outcome with a better then average probability of success.

If you have a forex trading strategy and you can’t easily define the trading system’s edge and explain exactly why it works, then what that means is that this trading system does not really have an edge at all and may wont be worth using.

Now let’s dig deeper…

#1: The trading system must have a set of definable circumstance(s) that are present in the market These are things like:

#2: These definable circumstances must have a statistical significance 

What this means is that there should be a measurable rate of success by following a particular set of definable circumstance:

  • What’s your trading success rate like following trend trading?
  • What your trading success rate like when you take a trade based on the support and resistance
  • What’s your trading success rate like when trading based on chart patterns?
  • What’s your trading success rate like trading based on pivot levels?
  • What’s your trading success rate like trading based on fundamental analysis?
  • What’s your trading success rate like trading based on certain candlestick patterns?
  • What is your trading success rate like on trading based only on certain timeframes?

You need to be able to quantify these. In order for you to do that, you need to trade over a period of time…the longer the better to have a reliable statistics on your trading success rate.

The problem is: you’ve got be be 100% following the rules of your trading system and you can only count those trades that you’ve followed perfectly to the letter.

Any trade that did not follow the trading system’s rules should never be included in your trading success rate calculations.

#3: This must Result in an outcome with a better then average probability of success

For example: you’ve tested your forex system out for 6 months and you success rate was 30%.

Success rate of 30%??? That’s bad!

Not really, dude!

You see… A trading system with a 30% success rate can be an extremely profitable trading system! How? Let me give you an example: You place 100 trades over 6 months…that means with a 30% success rate:

  1. 30 trades were winners
  2. 60 trades were losers

Right? Now…

  1. for each trade you placed you risked only 2% of your trading account
  2. and for each trade that was profitable, you made 5%% profit (each trade)

Which means at the end of 6 months these would be your balance sheet:

  • 2%x60 loss trades =120% cumulative loss
  • 5%x30 winning trade=150% cumulative profit
  • 150%-120%=30% profit

So can you see how even forex trading strategy with a low success rate can be profitable?

From this analysis, the following conclusions hold true:

  1. a forex trading strategy can have a low success rate but still be profitable
  2. the key to being profitable in  a low success rate forex  strategy is control your risk per trade.
  3. That risk should be fixed and should not be variable. An trade taken with a high risk is all take to make you unprofitable. This is for a low % wining rate forex strategy.

How do you gain an edge with your forex trading strategy?

Here are a few tips…

 

#1:TRADING WITH THE TREND

Many forex traders agree that trading with the trend is an edge. I will also agree to that because you are in a trend, its much easier making money by going with the “flow”.

 

#2:TRADING ONLY LARGER TIMEFRAMES

Many forex traders also agree that trading in the larger timeframes like 4hr and daily timeframe gives you an edge because it reduces the “noise” or fluctuations that happen in the smaller timeframes.

 The shorter the timeframe, the greater the randomness and less reliable the trading signal is and less profit  you can expect.

But when you are looking at a daily chart or weekly chart, that noise or randomness is greatly reduced, and thus you have increased chance of success.

 

#3: TRADING ONLY SUPPORT AND RESISTANCE LEVELS Some forex traders believe that trading based on support and resistance levels gives them an edge.

These traders use the psychology of support and resistance levels to gain an edge to trade in these levels.

 

#4: TRADING ONLY CERTAIN CANDLESTICK OR CHART PATTERNS

Some forex traders believe that certain candlestick patterns like the pin bar or certain chart patterns gives them an edge and they tend to follow these religiously.

 

#4: TRADING ONLY DURING CERTAIN DAYS OF THE WEEK OR CERTAIN HOURS OF THE DAY

Some trades believe that trading only in certain days during the week or certain hours during the day  increases their success rate.

From my own experience, the days I tend to lose most is Mondays & Fridays.

Knowing that, I tend to trade lightly during these days.

The hours that I find really good to trade are during the UK session and NY session because that’s when there is more trading volume.

 

#5: USING STOP LOSS AS AN EDGE

If a trading system can’t pick a market’s top or bottom then it stands to reason that almost every trade taken mechanically will be ‘in the red’ at some point.

If the market moves in favour of your trade the moment you enter it, and it continues to go your way so your trade is never under water at any point in it’s life time then it is simply down to luck.

The market moving against you (particularly at the beginning of a trade) therefore does not mean that your trade was a bad one; in fact it is to be expected.

A trading system therefore needs to use a fairly large stop-loss.

Therefore it stands to reason that adding stop losses tends to degrade the performance of a trading system to some degree.

Using a very small stop loss can also mean that you will always lose when the system takes a bad trade…and also when the system takes a good trade, you will lose because you will most likely get stopped out due to your tight stop loss.

 

#6: NOT ALWAYS IN THE MARKET AS AN EDGE

You don’t always have to be in the market to be profitable.

Many forex traders find it profitable to trade discretely, with no particular pattern at all.

They may trade on Tuesday and won’t trade anymore for the week. Then next week they may trade on Wed & Thu only. These traders have learnt to trade only when the odds are in their favour.

So they don’t need to trade everyday  of the week. Heck! They may even only trade twice a month!

 

THE BEST FOREX TRADING STRATEGIES-MY CONCLUSION

I will conclude this article by saying the following about the best Forex trading strategies:

  1. The best forex trading strategies are long-term and trend following in nature, that is they seek to gain an edge from the effects of the longer term underlying market trend and give that edge time to work.
  2. The best forex trading strategies do not seek to pick tops and bottoms and therefore use fairly large stop-losses.
  3. The best forex trading strategies use larger timeframes to avoid the noise and randomness in smaller timeframes. 
  4. The best forex trading strategies are tailored for certain types of markets, but not curve fitted.
  5. The best forex trading strategies only seek to trade when market conditions are actually favorable and are therefore not always ‘in the market’.

So there you have it. These are the holy grail of forex trading strategies!

You may disagree with me, but I hope you find this useful. Please like or share or tweet!