Strategies in Forex trading play in important role. What is the best Forex strategy – there is no single answer. Each trader chooses a strategy on his own, based on his free time and risk appetite. This means that you need to consider your personality and develop a strategy that suits you. What may work very well for one trader may be completely unacceptable for another. Conversely, a trading strategy that has been underestimated by others may be right for you.
However there are strategies the which proved to be effective for a long time. We are going to review them below.
The Bladerunner Strategy
This strategy can be used to trade at any time intervals and with any currency pairs. It fits all time frames and currency pairs. The Bladerunner is one of the most popular Forex price action trading strategies.
Daily Fibonacci Pivot Trade
This trading strategy uses Fibonacci retracement and expansion levels, and only daily pivots, without limiting their number. Here you can increase the time frame to the value you need.
Forex Overlapping Fibonacci Trade
Many traders use Forex Overlapping Fibonacci Trade. If used together with reliable confirmation signals, it can give very accurate forecasts and bring good profit.
Trading Pop ‘n’ Stop
This strategy allows traders to predict the direction of price movement, that is, find out whether it will move up or down. The strategy is quite simple but engaging.
Forex Fractal Trading
This is hardly a strategy, rather a trading concept. It is a basic concept that will help you better understand the essence of the Forex market. With this knowledge, it will be easier for you to decide on the necessary trading strategy.
Currency trading strategies is a tool that determines your actions in the foreign exchange market. Good or bad strategy is hard to say. It depends on the particular trader, his trading style, goals and expectations. Therefore, the effectiveness of the trading strategy you can only check in practice. I advise you to try the maximum number of strategies on a demo account. Thus, you can understand which ones are more suitable for you, which ones are less, and choose the strategy that is most suitable for you.
In addition to the above, let’s look at two more, the most popular and most effective strategies for trading in the Forex market.
Scalping is one of the most popular trading strategies. Some traders believe that it is too tricky and frivolous; someone doubts its ability to make a profit. But at the same time, other traders say that this is the best Forex strategy, and it brings them a decent profit. Forex is a market where you can earn quick money, so why not use an ultra-fast trading strategy, the duration of transactions of which is, on average, only a couple of minutes?
Day traders also make money on short-term trading. They open transactions 1-2 times in one day and very often, to increase their potential profit, they transfer operations to the next period. But there are traders with much higher appetite, and they open deals several times each trading day.
For one transaction, they get very little profit, but in the end, if you summarize all their transactions, a pretty good amount is obtained. Traders who choose the best Forex strategies try to test them in practice because without this, and it is difficult to say which strategy is better. As experience shows, most traders who have gained success and recognition in the foreign exchange market believe that scalping is the best Forex strategy, although, to some, it seems frivolous.
When you learn to slowly, but surely earn a small income every day, in a month you can get a very decent amount. Here, the more you trade, the more you can get. A massive plus of scalping is that it allows you to trade at least every minute.
Remember that there are significant market fluctuations, the time which can be easily predicted. This is the time to implement necessary economic news and indicators. If you already have the best Forex trading strategy and want to use it to the maximum, we advise you to combine the time of its application with the news release. Experienced traders know in advance when data on GDP, unemployment or inflation are published, and use this to their advantage.
Positional trading is long-term currency trading. A trader keeps transactions open for a long time. He is waiting for large price fluctuations. To successfully apply a positional strategy, you should consider a few tips. Experts do not recommend using high leverage. Besides, it is essential to monitor the swaps, because sometimes they cost more than the profit that the trader received from the transaction.
If you want to learn Forex trading strategies in the trading process, positional trading is perfect for you. It helps to develop the skills necessary for each trader, such as, for example, endurance and calm. Watching the daily fluctuations, sometimes absolutely crazy, the trader either calmly adheres to his strategy or quickly closes his transactions at a loss to himself. But after daily fluctuations, very often the price returns to the predicted level. Thus, traders see that they should not have made fast movements, and the next time they are much more calmly reacting to the unrest in the foreign exchange market.
The bottom line
Choosing positional trading, you will need to take time to analyze and predict price movements. But, paying due attention to this, you can save time on the process of performing transactions. All you need to do is choose the currency pair that is closer to you, plan the approximate volume of your transactions and find out the size of the swap.