Trading Strategies mean how you trade. Your complete trading plan. There must be a rule for you to trade. So you must have a reason to buy or sell.
What Is Forex Trading Strategies?
The trading Strategies you will follow will tell you not to buy now, not to sell, or to refrain from trading now.
Which features following for trading Strategies?
- When to buy-sell or refrain from trading?
- How much volume/lot to trade?
- What amount of risk to take in each trade?
- How much to use stop-loss / take-profit/trailing stop?
- Do the maximum number of trades at once?
- Why trade? Why buy? Why sell?
We trade individually:
- Some trade by looking at the indicator,
- some trade by looking at the price action, some trade by looking at the price.
But if you have a trading Strategies, you won’t have to worry about buying or selling now.
No need to ask anyone, or take signals from anyone. Because then you know how to make a signal. You can make the signal yourself and give it to someone else (if he loses but will blame you).
Since almost all of our trade following indicators,
let’s first talk about indicator-based trading strategies:
See the chart below. A red line is seen here. This is the moving average line. Suppose this is our trading Strategies. Moving Average indicates our market trend. Buy signal when the candle is above the red line, and cell signal when the candle is below the red line.
You made a trade, and so did the profit. (This is not always the case. We will discuss later how to make the signal more risk-free.) Now if anyone asks you, why did you buy it? Why didn’t you give the sell? Then your answer will be your trading Strategies. Your system tells you to buy. From now on you don’t have to trade guesses. Your trading Strategies will tell you to buy now, sell now. You will trade that way. Isn’t it better than trading at least guesswork?
This time we will try to make the signal more perfect by adding another indicator to the moving average.
See the chart below. Parabolic indicators have been added to the chart. From now on, we will sell only if 2 indicators ask us to buy, and we sell only if 2 indicators ask us to sell.
But if 2 indicators show different signals, I will refrain from trading. In the parabolic indicator, the dot indicates a buy when it is below the candle, and the dot indicates a sell when it is above the candle.
See Moving Average above the red line. Again the parabolic also shows the dot under the candle. That means 2 tie byes. Then there is more reason to buy now.
These are just examples. Shown in this way for easy understanding.
How to Exit from trade?
- Trade is opened, profit is also being made. But the question is when will I close the trade? How much profit will I close? 10 pips? 50 pips or 100 pips? Or going to trade loss, how much loss will close? 10 pips loss will close? Or wait up to a 200 pips loss? So of course you need the rule to exit your trade.
- It depends on your money management. Suppose you have deposited $ 1000. You want to take a maximum of 5% risk in each of your trades. Then you are willing to make a maximum loss of $ 50 per trade. So if you want to set a stop loss of 50 pips. Pips value should be set to 1. Again if you want to set 100 pips to stop loss then you have to select the value of a pip 50 cents.
How to trade closes?
- One reason may be that you have made a profit from this trade according to your target. So there is no need for profit. Close the trade.
- Another reason is that the trend may change now. So your profit may decrease or your loss may increase further. So try to catch the new trend by closing the old trade. It is often foolish to lose a lot in the hope that the trade will be profitable. Adhere to the trading Strategies.
How to set stop loss in Trading Strategies?
- You can set the stop loss according to the support-resistance-pivot point.
- You can set a fixed 30/50/100 pips. However, such stop losses are often the reason for closing your trade losses.
How to set take profit in Trading Strategies?
- You can set the take profit according to the support-resistance-pivot point.
- You can set a fixed 30/50/100 pips.
- You can set 15/25 / etc. number of pips as trailing stop.
- The trailing stop will automatically set the closing point in the trade profit by keeping a certain number of pips distance as the profit on your trade increases.
What will be the maximum number of trades at once?
It depends on your trading Strategies how many trades you will make together. Remember, you should never trade at more than 5% risk together. If you want to trade with different pairs at a time, make sure that the risk of all trades does not exceed 5% of your total account. All in all, don’t give yourself a chance to lose more.
Final word about Trading Strategies:
Now you know how to trade. When to buy, or when to sell. When to close a trade loss, or how much profit a trade should close. These are all your trading strategies. Trading without following the trading Strategies means you are one step ahead of the losers. Now you too can choose the necessary weapons from the arsenal of Forex and create your trading Strategies. Test the strategies of others and share with us by creating more developed strategies by adding the good ones to your own. If you have any questions or do not understand anything in this article you can ask with comments.
Some Trading Strategies online available:
- Day trading strategies
- Swing trading strategies
- Forex trading strategies
- Options trading strategies
- Scalping trading strategy
- Stock trading strategy
- Crypto trading strategy
- Bitcoin trading strategy
- Trend trading strategy
- Emini futures trading strategy
- Volatility trading strategy
- Gap trading strategy
- professional trading strategy
- Advanced Forex strategy