Now let's look at another system that could be the best trading strategy for you. 7) 4-Hour Forex Trading Strategy. One potentially beneficial and profitable Forex trading strategy is the 4-hour Another wonderful forex trading strategy is swing trading. This strategy involves the speculation of trending markets to make profits. Traders can enter a long or short trade Forex Trading Strategy 5: Consider Automated Forex Trading The best forex trading strategy for those without any knowledge of technical or fundamental analysis is to consider an Bollinger band forex strategy. Momentum indicator forex strategy. Fibonacci forex strategy. Bladerunner forex strategy. A moving average crossover strategy is used. MACD forex What Is The Best Forex Strategy? In summary, the best forex strategy should: 1) help you better understand the daily market direction, 2) allow you to identify the absolute best setups ... read more
The best forex strategy should also be primarily based on price action trading. Price action trading is trading based solely on price without the use of any indicators. The most important price action pattern that you need to master is the Reversal Pattern. There is no better and safer way to enter into trades other than by identifying multiple Reversal Patterns at major Price Levels.
If you really like to use a particular indicator, by all means use it. However, you should only use an indicator as an additional confluence to price action trading. The best forex strategy should also allow you to always execute trades above a 1 to 1 reward to risk ratio. Ideally you want to execute trades with a higher reward to risk ratio such as 2 to 1.
If you lose, you only lose 1 point. However, when you win, you gain 2 or more points depending on your reward to risk ratio. Lower risk with a higher reward is smart trading. Never enter into a forex trade unless it offers you a reward to risk ratio greater than 1 to 1.
This is the simple mathematics of forex success. The best forex strategy should also be a set and forget strategy. This means you set your trade and then you forget it until a certain time later, where you would close your trade out. In other words, you should not be monitoring your trades. No monitoring means no stress and no emotion.
You set it and you forget it until a later time such as the end of your trading session. You should never just sit there stressfully looking at prices spike up and down.
A set and forget strategy will help you focus on becoming a better trader and it will also help you make better trading decisions. Instead of being stressed out and watching your money go up and down, your focus can be more geared towards making objective trading decisions. Eliminating the emotion of trading will allow you to become a better forex trader. Knowing the best forex strategy is not enough. You also need experience and the right mindset to be a successful trader.
Forex trading is not easy. It requires a tremendous amount of practice and experience. In addition to experience, you also need the right mindset, particularly when you lose.
A trader with the right mindset understands that he or she will have plenty of losing trades regardless of experience. Sometimes the market will simply go against your trades, no matter how good you are. A trader with the right mindset emotionally deals with losses well and understands that losing is a natural part of the forex game.
In summary, the best forex strategy should: 1 help you better understand the daily market direction, 2 allow you to identify the absolute best setups on a daily basis, 3 mainly incorporate price action trading, 4 allow you to always execute trades above a 1 to 1 reward to risk ratio, and 5 be a set and forget strategy. In our expert opinion, the absolute best forex strategy for consistent profits is our Forex Price Levels Strategy.
A day breakout to the upside is when the price goes above the highest high of the last 20 days. Trend-following systems require a particular mindset, because of the long duration - during which time profits can disappear as the market swings.
These trades can be more psychologically demanding. When markets are volatile, trends will tend to be more disguised and price swings will be greater. Therefore, a trend-following system is the best trading strategy for Forex markets that are quiet and trending. A good example of a simple trend-following strategy is a Donchian Trend system. Donchian channels were invented by futures trader Richard Donchian , and is an indicator of trends being established.
The Donchian channel parameters can be tweaked as you see fit, but for this example, we will look at a day breakout. Source: Admirals MetaTrader 4, EURJPY, Daily chart between 18 September to 31 May You can get the Donchian Channel indicator completely FREE in the Admirals Supreme Edition package.
It's called Admiral Donchian. To upgrade your MetaTrader platform to the Supreme Edition simply click on the banner below:. There is an additional rule for trading when the market state is more favourable to the Forex trading system. This rule is designed to filter out breakouts that go against the long-term trend. In short, you look at the day moving average MA and the day moving average. The direction of the shorter moving average determines the direction that is permitted.
This rule states that you can only go:. Trades are exited in a similar way to entry, but only using a day breakout. This means that if you open a long position and the market goes below the low of the prior 10 days, you might want to sell to exit the trade and vice versa. Now let's look at another system that could be the best trading strategy for you. One potentially beneficial and profitable Forex trading strategy is the 4-hour trend following strategy which can also be used as a swing trading strategy.
This strategy uses a 4-hour base chart to screen for potential trading signal locations. The 1-hour chart is used as the signal chart, to determine where the actual positions will be taken. Always remember that the time frame for the signal chart should be at least an hour lower than the base chart. For this Forex strategy, two sets of moving average lines are chosen for the best results. One will be the period MA, while the other is the period MA.
To ascertain whether a trend is worth trading, the MA lines will need to relate to the price action. The MA lines will be a support zone during uptrends, and there will be resistance zones during downtrends. It is inside and around this zone that the best positions for the trend trading strategy can be found.
Below is a daily chart of GBPUSD showing the exponential moving average purple line and the exponential moving average red line on the chart:.
Source: Admirals MetaTrader 4, GBPUSD, Daily chart between 4 September to 31 May Counter-trend strategies rely on the fact that most breakouts do not develop into long-term trends. Therefore, a trader using such a strategy seeks to gain an edge from the tendency of prices to bounce off previously established highs and lows. On paper, counter-trend strategies can be one of the best Forex trading strategies for building confidence, because they have a high success ratio.
However, it's important to note that tight reins are needed on the risk management side. These Forex trading strategies rely on support and resistance levels holding. But there is also a risk of large downsides when these levels break down. Constant monitoring of the market is a good idea.
The market state that best suits this type of strategy is stable and volatile. This sort of market environment offers healthy price swings that are constrained within a range. It's important to note that the market can switch states.
For example, a stable and quiet market might begin to trend, while remaining stable, then become volatile as the trend develops.
How the state of a market might change is uncertain. You should be looking for evidence of what the current state is, to inform you whether it suits your trading style or not and should be one of the Forex strategies you should be using. Source: Admirals Demo Account Example. Many types of technical indicators have been developed over the years.
The great leaps made forward with online trading technologies have made it much more accessible for individuals to construct their own indicators and systems, as we've gone through in these trading strategy guides. You can read more about technical indicators by checking out our education section or through the trading platforms we offer. The best Forex trading strategies for beginners are the simple, well-established strategies that have worked for a huge list of successful Forex traders already.
Of course, many newcomers to Forex trading will ask the question: Can you get rich by trading Forex? or: What is the best Forex strategy that always wins? It's important to understand that trading is about winning and losing and that there is always risk involved. In some cases, you could lose more than your initial investment on a trade. There are no easy Forex trading strategies which are going to make you rich overnight, so do not believe any false headlines promising you this.
Trading Forex is not a 'get rich quick' scheme. However, through trial and error and the use of a demo trading account, you can learn about the Forex market and yourself to find a suitable style. It can also help you understand the risks of trading before making the transition to a live account.
Traders that choose Admirals will be pleased to know that you can trade in a virtual environment by opening a demo trading account. Instead of heading straight to the live markets and putting your capital at risk, you can practice your Forex trading strategies on a FREE demo account. This is a great way to help you find the best trading strategy for yourself and the trading strategies that will help you become successful.
You can open a FREE demo trading account in just a few minutes and access a range of additional trading indicators and software complimentary. Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8, financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5.
Start trading today! This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks. Help center Contact us. Start Trading. Trading Tools MetaTrader Supreme Edition StereoTrader Top! Virtual Private Server Parallels for MAC. Markets Forex Commodities Indices Stocks ETFs Bonds.
Best conditions All trading offers Promo Contract Specifications Margin Requirements Volatility Protection Cashback Welcome Bonus New Premium Program New. Personal Finance New Admirals Wallet. Forex Calendar Trading News Global Market Updates New Premium Analytics Weekly Trading Podcast Fundamental Analysis Market Heat Map Market Sentiment Trading Central.
Affiliate Program Introducing Business Partner White Label partnership Refer a friend New. About Admirals. Why Admirals? Regulation Financial Security Secure your trading account Contact Admirals Company News. Help center. Status Page. Login Register. Top search terms: Create an account, Mobile application, Invest account, Web trader platform. Forex Trading Strategies Guide: 8 Strategies That Work Jitanchandra Solanki Nov 1, 22 Min read.
Table of Contents Picking the Best Forex Strategy for You Different Types of Forex Trading Strategies Pips a Day Forex Strategy Daily Chart Forex Strategy Forex 1-Hour Trading Strategy Forex Weekly Trading Strategy The Role of Price Action Trading in Forex Strategies Trend-Following Forex Strategies 4-Hour Forex Trading Strategy Counter-Trend Forex Strategies Discovering the Best FX Strategy for You.
Forex Master trading basics with industry experts REGISTER FOR FREE. The World's Premier Multi Asset Platform DOWNLOAD MT5 FREE. Advanced Trading Webinars Discover the latest trading trends, get actionable strategies and enjoy complimentary tools. JOIN ADVANCED WEBINARS. The exclusive MetaTrader Supreme Edition Download the most powerful plugin suite for your favourite trading platform!
DOWNLOAD NOW. Free analytical tools Tap into a wealth of exclusive resources at the touch of a button LEARN MORE. Risk Free Demo Account Register for a Free Online Demo Account and Master Your Trading Strategy OPEN DEMO ACCOUNT. Jitanchandra Solanki. Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities.
He is an accredited Market Technician with a BA Hons degree. Meet Jitanchandra Solanki on. TOP ARTICLES. Harmonic Trading Patterns From Scott M. Carney Explained in Detail. November 22, 13 Min read. This article will provide traders with a detailed explanation of what Harmonic Trading Patterns are, how harmonic trading patterns are used in currency markets, as well as, exploring market harmonics, harmonic ratios, and much more!
All of this is based on teachings from Scott M. Depicted: Me A Guide to Day Trading Strategies and Systems. November 18, 20 Min read. In this article we will explain what day trading is before exploring various different day trading strategies and systems which are available and how they are used by traders to make profits. We will also make some suggestions on how to find the best day trading strategy for and provide some us How to Build a Diversified Portfolio.
There are three critical components to achieve consistent profits in forex. First, you need the absolute best forex strategy.
Second, you need experience. Third, you need the right mindset. All three of these components are required in order for you to become profitable in forex. When you master forex, you unlock a lifetime of income potential from the comfort of your own home. The financial freedom that you can obtain by mastering forex is priceless. The following content will discuss the attributes or characteristics required of the best forex strategy.
After explaining these essential elements, we will also discuss experience and the right mindset, because elite trading requires these items as well. The best forex strategy should help you better understand the daily market direction. Understanding the daily market direction is the single most important skill you need to develop as a forex trader. The major trades of the day begin with prices reacting at major Price Levels.
The key to truly understanding the daily market direction better is the concept of Price Levels. This is a prerequisite for optimal forex trading success. Identification Of The Best Setups The best forex strategy should also allow you to identify the absolute best setups on a daily basis. Quality forex trading requires the execution of quality forex setups.
You have to know exactly where you are on the forex map. More specifically, you have to understand where prices are, relative to major Price Levels. Moreover, good setups should be easy to execute. The best forex strategy should be simple and straightforward to make your life as a forex trader as easy as possible. You want to get to the point where you are mechanically and objectively executing the best forex setups. The best forex strategy should also be primarily based on price action trading.
Price action trading is trading based solely on price without the use of any indicators. The most important price action pattern that you need to master is the Reversal Pattern. There is no better and safer way to enter into trades other than by identifying multiple Reversal Patterns at major Price Levels. If you really like to use a particular indicator, by all means use it.
However, you should only use an indicator as an additional confluence to price action trading. The best forex strategy should also allow you to always execute trades above a 1 to 1 reward to risk ratio.
Ideally you want to execute trades with a higher reward to risk ratio such as 2 to 1. If you lose, you only lose 1 point. However, when you win, you gain 2 or more points depending on your reward to risk ratio. Lower risk with a higher reward is smart trading. Never enter into a forex trade unless it offers you a reward to risk ratio greater than 1 to 1. This is the simple mathematics of forex success.
The best forex strategy should also be a set and forget strategy. This means you set your trade and then you forget it until a certain time later, where you would close your trade out. In other words, you should not be monitoring your trades. No monitoring means no stress and no emotion. You set it and you forget it until a later time such as the end of your trading session.
You should never just sit there stressfully looking at prices spike up and down. A set and forget strategy will help you focus on becoming a better trader and it will also help you make better trading decisions. Instead of being stressed out and watching your money go up and down, your focus can be more geared towards making objective trading decisions. Eliminating the emotion of trading will allow you to become a better forex trader.
Knowing the best forex strategy is not enough. You also need experience and the right mindset to be a successful trader.
Forex trading is not easy. It requires a tremendous amount of practice and experience. In addition to experience, you also need the right mindset, particularly when you lose. A trader with the right mindset understands that he or she will have plenty of losing trades regardless of experience. Sometimes the market will simply go against your trades, no matter how good you are. A trader with the right mindset emotionally deals with losses well and understands that losing is a natural part of the forex game.
In summary, the best forex strategy should: 1 help you better understand the daily market direction, 2 allow you to identify the absolute best setups on a daily basis, 3 mainly incorporate price action trading, 4 allow you to always execute trades above a 1 to 1 reward to risk ratio, and 5 be a set and forget strategy. In our expert opinion, the absolute best forex strategy for consistent profits is our Forex Price Levels Strategy. Best Forex Strategy For Consistent Profits. Table Of Contents:.
How To Achieve Consistent Profits In Forex Understanding The Daily Market Direction Better Identification Of The Best Setups Mainly Price Action Trading Good Reward To Risk Ratio Set And Forget Strategy Experience And Mindset What Is The Best Forex Strategy? How To Achieve Consistent Profits In Forex There are three critical components to achieve consistent profits in forex.
Understanding The Daily Market Direction Better The best forex strategy should help you better understand the daily market direction. Mainly Price Action Trading The best forex strategy should also be primarily based on price action trading. Good Reward To Risk Ratio The best forex strategy should also allow you to always execute trades above a 1 to 1 reward to risk ratio. Set And Forget Strategy The best forex strategy should also be a set and forget strategy.
Experience And Mindset Knowing the best forex strategy is not enough. What Is The Best Forex Strategy? Learn More:. Forex Price Levels.
Bollinger band forex strategy. Momentum indicator forex strategy. Fibonacci forex strategy. Bladerunner forex strategy. A moving average crossover strategy is used. MACD forex What Is The Best Forex Strategy? In summary, the best forex strategy should: 1) help you better understand the daily market direction, 2) allow you to identify the absolute best setups Another wonderful forex trading strategy is swing trading. This strategy involves the speculation of trending markets to make profits. Traders can enter a long or short trade Michael Marcus. Richard Dennis. Bruce Kovner. Axel Merk. Joe Lewis. Michael Steinhardt. Martin Schwartz. In the trading world, the most successful forex traders work behind the scenes, Now let's look at another system that could be the best trading strategy for you. 7) 4-Hour Forex Trading Strategy. One potentially beneficial and profitable Forex trading strategy is the 4-hour Forex Trading Strategy 5: Consider Automated Forex Trading The best forex trading strategy for those without any knowledge of technical or fundamental analysis is to consider an ... read more
CFTC RULE 4. AvaTrade offers a free demo account that you can connect to the aforementioned third-party platforms - meaning you can practice technical analysis risk-free. Cons Requires more thorough research over a longer period Global economic events can impact your strategy massively Rare trading opportunities. If you follow what the big guys are doing, chances for failure are small. These trades can be more psychologically demanding.
A long-term trader would typically look at the end of day charts. You can think of a resistance line as an upper price limit of a currency pair—if the price goes beyond it, that means that traders have overbought and that the price will drop very soon. If you're ready to deploy one or more of the best forex trading strategies discussed today - world best forex trading strategy are now going to walk you through the process with commission-free broker eToro. Forex Price Levels. Some Forex Traders are indeed more successful than others and we will take a look at both the super successful and noteworthy. A disciplined trader is a confident trader, world best forex trading strategy. What is the best forex trading strategy for beginners?