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Best profitable forex strategy 2024

Best profitable forex strategy 2024

Types of Forex Strategies

There are many profitable forex strategy. Types of profitable forex strategy are determined by the duration of holding open positions. Open positions are those transactions that a trader has opened, i.e. bought or sold currency, but has not closed, i.e. has not performed the reverse operation of buying and selling. The optimal time for holding a sale or purchase is usually determined by the trader’s goals, market conditions, and forecast horizon. What types of Forex strategies are there?

Types of Forex Strategies

According to the duration of holding a position, all strategies can be divided into three groups..

Long-term strategies. In this case, an open position can be held from several weeks to a year. This allows you to monitor the market in a relatively calm mode, without worrying about the current state of the transaction. Such profitable forex strategy can be used by both beginners and experienced traders with a conservative trading style who want to get a small but stable result. However, to work in this style, a trader must have a certain character, since not everyone is able to observe changes in profit on a position over a long period of time.

forex strategy

Medium-term strategies. Usually built on the basis of technical analysis (which will be discussed below), positions are held open from one day to two or three weeks. During this period, a trader can make a profit of 50 to 200 or even more points, depending on the current market volatility.

On a note, Most often, training in trading on the Forex market takes place using medium-term strategies as an example, which is why many traders adhere to this style of work. One of the conditions for using a medium-term strategy is the presence of an active trend on the market, which allows the trader to trade relatively safely.

Short-term strategies, Short-term strategies  are the most profitable forex strategy, but also the riskiest, since trading is carried out for only one day and sometimes it is very difficult to predict the price movement. Short-term strategies include “scalping” and “intraday”.

“Scalping” . Such profitable forex strategy involve opening a hundred or more transactions per day, the profit from which is minimal, and high profit is achieved precisely due to their quantity. The duration of the transaction can be from several seconds to several minutes. Scalping is considered one of the most difficult types of trading, since during such transactions it is impossible to exclude frequent activation of stop losses, which leads to a decrease in profit. Some brokers through which trading on the Forex market is conducted generally cancel all transactions that last less than five minutes, so when choosing such strategies, you should be very careful.

“Intraday” is intraday trading, in which a deal is opened and closed within one day and lasts from 15 minutes to four hours. The number of deals per day with such profitable forex strategy does not exceed three to five, so “intraday” is considered less risky than “scalping”. Such strategies are based on searching for and studying patterns at the junction of trading sessions, and profit is fixed at the end of the day or after reaching a pre-set goal. Intraday strategies are quite simple and can be used by novice traders.

Three Most Profitable Forex Strategies

Important! These profitable forex strategy are the basis for building your own trading strategy. The indicator settings and recommended levels of pending orders provided in them are only advisory in nature. If you are not satisfied with the results obtained during testing or on a real account, this does not mean that the problem is in the strategy. It is enough to simply select individual indicator parameters for a separate asset and for the current market situation.

Please note! Each strategy has a link to a forex strategy template with indicators and brief instructions for installing them. At the end of the article, a separate section will be devoted to how to launch these templates in practice and start earning with Lite Finance! If you are interested in the strategy, open a demo account with Lite Finance and follow the recommendations in the review. And if you have any questions, ask them in the comments!

1. Scalping strategy “Bali”

This profitable forex strategy is one of the most popular – at least, its description can be found on many websites. However, the recommendations for it will be different. According to the author’s idea, “Bali” refers to scalping tactics, as it provides for fairly short stop-loss (SL) and take-profit (TP). However, the recommended timeframe is high, so signals do not appear very often. The authors recommend using the H1 interval and the EUR/USD currency pair.

The linearly weighted moving average acts as an additional filter here. Due to the fact that LWMA gives more weight to the values ​​of the last periods, the indicator practically eliminates delays on long timeframes. In some cases, LWMA can give an earlier signal, but in profitable forex strategy only the position of the moving average relative to the price is important. LWMA below – a signal to buy, above – to sell. forex strategy

The indicator is also based on the moving average, but it has a slightly different calculation formula. Its marking is more accurate (the influence of price noise is eliminated). It allows identifying trend breaks in comparison with a regular moving average with a slight lead. Trend Envelopes has an interesting property: the color of the line and its new placement changes when the price breaks through its old trend line – a kind of signal.

The indicator is placed in a separate window under the chart. It is an oscillator, the task of which is to determine trend reversal points. And it does this much faster than standard oscillators. It has two lines: the signal line is indicated by a dotted line, the additional line is solid, but the receiving line has 2 types of colors (orange and green).

Important! Please note that the indicators in the Bali strategy are selected in such a way as to ultimately give a leading signal. This gives the trader a reserve of time to confirm the signal and check the fundamental factors.

MA is one of the basic indicators in MT4, the other two indicators can be found for free in the archive at this link . To add them to the terminal, in MT4 click: “File – Open data directory”. In the folder that opens, go to the following path: MQL4/Indicators. Copy the indicators to the folder and restart the platform.

forex strategy

2. Candlestick Strategy “All-in”

This profitable Forex strategy is weekly and can be used on different currency pairs. It is based on the spring principle of price movement – what quickly rose, sooner or later must fall. For trading, you only need a chart in any terminal and a W1 timeframe (although you can also use a daily interval).

You should evaluate 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 largest distance from the opening to the closing of the candle within a week. You will open a deal for this pair at the beginning of the next week. forex strategy

The principle of the strategy:

A “three candles” pattern (rising or falling) has formed on the weekly chart.

It is desirable that each subsequent candle is larger than the previous one. Doji (candles with no body) are not taken into account.

Stop is set at the closing level of the first candle from the constructed formation. Take profit is 50-100% of the last candle, but it is often better to close the deal manually.

3. “Profit Parabolic” based on moving average forex strategy

This profitable forex strategy is universal and is often used as an example for novice traders. It uses the classic basic MT4 indicators EMA (exponential moving averages) and Parabolic SAR, which acts as a confirming indicator.

The strategy is trending. Most sources suggest using it on “minutes” as well, but price noise reduces its effectiveness. It is better to use intervals M15-M30. Currency pairs – any, but adjustment of indicator settings may be required. Parabolic SAR is located above the candles.

The deal can be opened on the same candlestick where the moving averages crossed. Stop loss is at the local minimum, take profit is 20-25 points. But with manual control, you can also extract a larger profit from deals. For example, close when EMA(5) switches to a horizontal position (change in slope from growth to flat).

This screenshot shows that all three signals (two long and one short trade) were effective. It would have been possible to enter the market on the candle following the signal one (in order to be sure of the trend direction), but then the right moment for entry would have been lost. It is up to you to decide whether to take the risk. These parameters almost do not work for hourly intervals, so be sure to check the behavior of the indicators for each time frame for at least three years.

Characteristics of an effective Forex strategy

And finally, let’s figure out what makes an effective profitable Forex strategy different? What properties should it have? Perhaps, we can highlight three most important characteristics.

Minimum number of lagging indicators. The fewer there are, the higher the forecast accuracy.

Simplicity. It is more important that you understand your profitable forex strategy than whether it is saturated with complex elements, formulas, and diagrams.

Uniqueness. Any trading strategy should be “tailored” to your trading style, your personality, your circumstances, etc.

It is very important to create your own trading strategy, but to do this you need to try out many already available and proven strategies. In the Forex blog you will find working strategies available for download. Before using on a real account, test the chosen strategy on a demo account in the MetaTrader trading terminal.

Finally

To trade successfully on the Forex currency market, create your own trading strategy. Get acquainted with new products, study ready-made trading schemes and improve your individual plan of action on the market. Only in this case will the results of trading satisfy you as much as possible. Good luck, dear friends!

Regulated-Forex-Broker

How to Choose the Best Trading Strategy in 2024

In fact, there is no single answer to the question “What is the best and most profitable Forex trading strategy?” Everyone will have their own best trading strategy. This means that when creating a Forex strategy, you need to take into account your individuality. What may work well for one person may be a disaster for another.

Conversely, a trading strategy that others have underestimated may be right for you. Therefore, only by studying and testing different strategies will you be able to find the one that suits you. This will also help you weed out those strategies that are not right for you. One of the key aspects to consider is the time frame of your trading style.

There are several trading styles (presented below) from short-term to long-term. These styles have been widely used by traders for many years and still remain popular, making the list of the best Forex trading strategies this year. The best Forex traders are always aware of the different styles and strategies so that, based on the current market conditions, they can choose the right ones and trade Forex successfully.

Short term time frames include 60-minute, 30-minute, 15-minute, 5-minute and 1-minute charts.

Long term time frames include 4-hour, daily, weekly and monthly charts.

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