HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

TOP 3 most profitable forex strategies


The need to have your own trading strategy is written in almost every trading manual. Firstly, the process of creating your trading scheme allows you to bring the understanding of trading to perfection. Secondly, it allows to exclude from it any accident that hides additional risk. The first trading strategies were developed in the 80s of the last century, and for that time they were advanced instruments for trading in the forex market. But since then, the pricing principle of financial instruments has undergone noticeable changes. This was mainly influenced by a significant increase in the volatility of liquid assets. Therefore, their relevance over time was diminished and now new tools are needed.

A profitable Forex strategy is a kind of instruction for a trader, helping to follow a well-defined algorithm and protect his deposit from the emotional mistakes and consequences of the unpredictability of the Forex market.

If you adhere to your forex trading strategy, you always know the answer to the question – what to do in certain circumstances of the market. You have the terms of opening of the transaction, the terms of its closure, you do not guess if the time is right or not. You do as your trading strategy tells you. This does not mean that it can not be changed. A “healthy” scheme of trading in the currency market must be constantly adjusted, it must meet the realities of the current market trends, but there should be no unreasonable arguments in it.

Types of trading strategies


Online you can find descriptions of various strategies, the use of which allegedly guarantees a monthly doubling of capital. “Break-even” strategies based on dubious trading tactics are also there in abundance. The most popular of them are the Martingale and averaging methods. The forms that a trading strategy can take can combine a variety of methods. However, there are a number of the most used options:

TOP 3 most profitable forex strategies


Scalping strategy "Bali"

This trading strategy allows trading on the H1 timeframe with a EUR / USD currency pair.

As assistants, you will need the Linear Weighted Moving Average (period - 48), Trend Envelopes_v2 (period - 2) and DSS of momentum (parameters: 18.16, 3, 8) indicators.

The yellow line on the price chart will indicate the Trend Envelopes indicator. Determine the time when the next candle closes above this line - the indicator will then be under the price of the instrument. At the same candle, the price will be at the closing of the hour above the Linear Weighted Moving Average line. The main line of the DSS of momentum indicator will be green on the chart, it should be located above the signal line. A buy order is opened when all these conditions are combined. Then you set a stop loss at 25 points, and take profit - at 50 points. For sales transactions, the same conditions are “turned over”.

Candlestick strategy “All-bank”

This profitable Forex strategy is weekly and can be used on different currency pairs. It is based on the spring principle of price movement. For trading, you only need a chart in any terminal and a W1 timeframe.

You must estimate the size of the candle bodies of different currency pairs (AUDCAD, AUDJPY, AUDUSD, EURGBP, EURJPY, GBPUSD, CHFJPY, NZDCHF, EURAUD, AUDCHF, CADCHF, EURUSD, EURCAD, GBPCHF) and choose the longest distance from the opening to the close of the candle within of the week. This pair will open a deal at the beginning of the next week.

If the candle was bearish, then the position will be long, if bull - short. Be sure to set a stop loss of 100-140 points and a take profit of 50-70 points. When the middle of the week comes, we close the order if it has not yet closed by profit or stop. After that, wait for the beginning of the week again and repeat the procedure, in no case opening the transaction at the end of the current week.

“Parabolic profit” based on the moving average

As you may have guessed, you need to set three moving averages on the chart (10, 25 and 50), as well as the Parabolic indicator. For the convenience of further actions on the analysis of the schedule, you can highlight the lines of the slide in different colors. You will need Parabolic as a moving average signal filter. If you intend to open a buy deal, first make sure that the Parabolic is at the bottom, if the position is short - the Parabolic should be at the top. So, we define the entry point by the behavior of the sliding with the parameter 10. It must cross the other two sliding - 25 and 50. If it does it from the bottom up, then it's time to open a long position (to buy). If on the contrary - sell. For a stop loss, it is better to use a trailing stop.

Characteristics of an effective Forex strategy


And finally, let's see, what makes a profitable Forex strategy different? What are its integral and mandatory characteristics? In my opinion the three most important features can be defined.

Summing Up


The problem is that for most traders, fundamental analytics is limited to working with the economic calendar. Of course, some events have a short-term impact on the value of the asset, but to predict the direction of the price impulse in this case is almost impossible. To successfully trade in the Forex market, create your own trading strategy. Get acquainted with the novelties, study ready-made trading schemes and improve your individual action plan in the market. Only in this case, the results of trading will satisfy you as much as possible. Also in the network there are often “innovative” automated trading systems based on artificial intelligence, with a profit potential of 300% per month. But such indicators of profitability are far from reality. In fact, experienced traders, when using moderate leverage, do not earn more than 20% per month on trading. This rate of return can even be called outstanding. If there really is an interest in such activities, then it is important to take this fact for granted and not to chase the recipe of super-profits, since this leads to a loss of investment.

Author: Kate Solano, Forex-Ratings.com

RELATED

The7 Strategy - Grail for Beginner Traders

Among the various trading systems available for free, only a few of them are effective in practice. For the successful application of such strategies, it is enough...

Why trading goals matter

Without clear goals, trading can become an impulsive, messy process that may lead to haphazard results, or at worst, large financial losses. Clearly defined trading goals...

The Intricacies of Short-Term Trading: A Comprehensive Exploration

In the intricate tapestry of financial markets, short-term trading emerges as a dynamic segment, renowned for its rapid pace and the transient opportunities it presents...

Crude Oil Volatility Trading Strategies

Crude oil has high liquidity and great openings to profit in most market conditions as a result of...

Locking Positions In Forex Trading: Application And Benefits

Currently, there are many proven, as well as quite controversial ways to conduct efficient trading. Position locking can be safely attributed to the second - controversial category...

Risk Management In Forex Trading: Main Principles

As we know, forex trading is a very risky business. In other words, a trader can lose money, if the market rate changes to an unfavorable side. However, the threat of financial losses in trading cannot be totally ruled out...

Top 5 Successful Copy trading strategies in July

Today we’ll review the 5 best high-yield copy trading strategies of the past month. The BRNT2 strategy proved to be the best-performing strategy in July...

Top 10 forex trading strategies for beginners

If you’re a forex beginner, learning how to better manage trading in the forex market is key to achieving success. This is because the forex market is an incredibly volatile financial market...

FXCC: Intraday trading. Benefits and Drawbacks

Defining the term intraday trading is the concept of selling and buying stocks on the same day, just before the market’s closure. If you somehow fail to do so, the broker will ultimately square off...

Exploring the Efficacy of Forex Hedging Strategies

The world of forex trading is marked by its dynamic nature, offering substantial opportunities along with inherent risks. In an effort to mitigate these risks and protect their investments

Why trading strategies fail?

Imagine you've thoroughly examined a set of rules and an algorithm of actions that should lead you to a profitable trade. You make sure that every...

Should I invest aggressively?

Wondering what market execution style you need to follow to get the profit you want? Continue reading today's article to learn more!

Golden Cross trading strategy

The Golden Cross is a candlestick chart pattern that gives a bullish signal. When a short-term moving average crosses above a long-term moving average, it is called a crossover...

The Ins and Outs of Forex Scalping

In the investment world, scalping is a term used to denote the "skimming" of small profits on a regular basis, by going in and out of positions several times per day...

Steps to a successful forex trading strategy

Are you an aspiring trader on the cusp of diving into the world of trading forex but unsure how to go about it? Or are you a seasoned forex trader perhaps who’s become a little too complacent...

Three of the most popular trading strategies

In this article we discuss three of the most popular trading strategies used by global traders...

Top Investment Opportunities In 2024: Charting Your Path to Financial Success

As we edge towards the end of 2023, the investment world is buzzing with anticipation. The S&P 500's resilience, despite not reaching its peak of December 2021, signals a cautiously optimistic environment for investors...

Economic Event Trading: Comprehensive Strategies and Essential Tips

Trading based on economic events, also known as event trading or news trading, is a prevalent approach among traders and investors. Events such as economic data announcements...

Price Action Trading: The how-to guide

Price action trading is a popular strategy used by traders to analyze the movement of an asset's price over time. This is done by identifying patterns on candlestick...

Simple and Effective Exit Trading Strategies

Beginner traders hold a position to the last minute, trying to break even, close it prematurely and have a missed profit, skipping a good exit point. Do you want to minimize such situations?

MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.