Evaluating Forex Trading Strategies That Work

There are a lot of Forex trading strategies out there that promise a lot in term of delivery and returns. But how exactly can you know the best one for you? This is a question that most people ask when looking to venture into the Forex market. There are even some seasoned traders who still don’t have the answer to this. This is because there is no one answer to this question. The best that you can hope for as a trader is to find a strategy that is consistent.

A Forex Trading Strategies that Work should be considered from an individual standpoint. Do not go with the flow or choose a strategy simply because others recommend it. In the trading market, what works for your partner could ultimately be your undoing rather that your saving grace. On the other hand, one man’s trash is anotherman’streasure, and a strategy that most have cast away could just simply be your holy grail.

A good route to take would be to analyze all the possible strategies laid before you and come up with a potential list of the best. This list, which could be two or three strategies, should be put on a testing period. This will help to eliminate those that are unsuited for you and keep the one that is. The key factor that should always be in mind is whether you are looking for a short or long time-frame strategy.

Two such sound strategies for Forex Trading are discussed here. One works on a long time frame while the other works on a shorter time frame.

  1. The Legendary Turtle System

This is a strategy that almost all traders have heard of or used at some point during their transaction. Of all the strategies, this is the one that requires the most discipline and patience. Starting off with it will ensure that you can keep up with the other short or long time-frame strategies that may be more advanced. In this strategy, along signal gets triggered the moment a currency pair breaks to a twenty-day high. Alternatively, a short signal gets triggered when the currency pair breaks to a new twenty-day low.

This is a trend-following strategy, held back by the simple fact that it requires a lot of time and patience. It has a rather low winning percentage and attention to detail is required since you never know the exact breakout that will trigger the long-term trend. This system, however, finds use in several different markets and as such it is a good starting point.

  1. 1-Minute Forex Scalping Strategy with Pin Bars and Trend Lines

This is a variation of the trendline trading strategy where you use trendlines and pin bars instead. You need two support pins for the upward trendline generation and two swing points for the lower trendlines generation. This produces a trendline that can be used to make buying or selling decisions. On the rising trendline, a buy can be made once the price touches the rising line and takes a bullish trend. Selling can be made when the price hits the falling trendline and takes a bearish trend towards the pins. This is a short-time strategy that can be used by part timers that don’t have the time to stare at their screens all day.

These strategies may apply to some but not all. It is good to keep your options open, so make sure to check out some of these other Forex Trading Strategies






Leave a Reply

Your email address will not be published. Required fields are marked *