Hi all!

Friends, I haven’t written posts in the section for beginners for a long time, and today I want to publish a useful article about the types of trading systems. As a rule, “profitable” traders use several different types of trading systems simultaneously to diversify risks and increase trading profits in general. What types or classes of strategies are these, what are the features of each of them, and what are the distinguishing criteria for a particular strategy to belong to a certain type? We will talk about all of this below.

In addition to standard discipline, psychological stability and concentration, any novice trader must first develop systematic thinking, which is based on a trading system. For this purpose, trading systems were created and later classified, which are designed to synthesize the preparatory work carried out in the form of: graphical, wave, candlestick and indicator analysis.

In this article, we will look at 10 famous types of trading systems for trading on the Forex exchange.

№1 . One of the common, popular and most profitable types of trading systems on the Forex currency market is - Trending. It is based on assumptions about a trend of growth or decline; if it begins, its stability and continuation are traced. The trend, from which the name of the system originates, is considered relative to a certain time period.

A clear example of a strategy that belongs to this type of trading system is the one I described in previous articles.

It should be distinguished that what is defined as a trend on the daily chart in a monthly perspective often turns out to be a market correction. is based on indicators, but in most cases the analysis of the data they provide shows the strength at the end of the time period, or with a more sensitive setting they can signal false entries. Therefore, when using a trend type of trading, you should approach such starting data with caution.

№2 . The second group of trading strategies, based on the assumption that prices move within a corridor or channel, limited by levels of resistance above and support below, is called Flat or gridiron . The flat strategy, or as it is called the channel strategy, organizes trading by buying near the support level and selling near the resistance value. In addition to determining levels, which is not always possible to do for objective reasons, a strategy is sometimes built using oscillators. A combination of oscillators with .

In the following articles of the forex blog, I will describe one interesting and proven flat strategy, so as not to miss the publication of this trading system. subscribe to updates.

№3 . Another type of trading system, which is used by more advanced traders, is counter-trend system , based on the definition of a point. Correctly determined moment of reversal allows you to get maximum profit during the reverse movement, but the use of these strategies is associated with a large number of false entries and a very close stop loss level. Counter-trend trading includes strategies using , and others.

№4 . To complement trading strategies, or in some special cases, systems based on are used, which are a characteristic combination of a price model and its derivative over a period of time, which has a predictable continuation according to statistical data. The most famous patterns include “Adam and Eve”, “head and shoulders”, “two peaks”, “folding meter” and others. Here are links to materials on Forex patterns that are effectively used when trading Forex:

№5 . Some traders often use intuition and, according to these qualities, use a system based on wave analysis , based on Elliott’s theory and suggesting that market behavior depends on the psychology of participants, expressed in impulsive behavior. The wave cycle, defined on the corresponding diagrams, is determined by the trend impulse in the forward direction and correction in the opposite direction, while the waves have a pattern and their own structure. In the following articles, I also plan to provide an interesting system based on wave theory, if you are interested, don’t miss it!

№6 . There are also types of trading strategies that assume that the significant event is the fact that the price leaves the established range, thereby having a chance of developing a trend. Such trading systems are called based on volatility breakout (read more about volatility in Forex). The boundaries are determined by their location at a slight distance from current prices, and the distance to them is determined by the current overall market volatility. The quality and quantity of transactions when using such a system will be determined by establishing a breakout threshold, which, when placed close to current prices, will result in a large number of false signals, and removal will lead to a decrease in the frequency of transactions. Examples of this type are strategies built on the principle, etc.

№7 . In addition to the systems described, there are also session trading . This type of trading systems is characterized by trading strictly during a specific period; this predetermines the use of certain currency pairs that are most active during these sessions. An example of this type is the “London Explosion” strategy I recently reviewed in an article about.

№8 . One of my favorite types of trading systems are strategies that are based on trading. This class combines the features of trend and pattern trading, and also makes significant use of wave analysis. The principle is that the price should create corrections from the trend by fighting off special levels that are built on the basis. Examples of profitable strategies of this type (directly used by me when trading) are:

№9. Pip trading strategies , also known as scalping, are based on trading within the trading day and are characterized by small take profit levels with relatively large stop loss orders. Examples of pip trading can be found in my recent article about

So, friends, in conclusion, we can say that each type of trading system is selected by participants depending on market situations, experience in use, the trader’s own training and style. It is also worth noting that the choice of the type of trading strategy greatly influences the trader’s temperament, i.e. You must feel this and choose a strategy for yourself not according to its profitability and complexity, but first and foremost according to its comfort, and then the trader himself can add and apply developments or additional ones to it, thereby adjusting everything according to himself (this, in fact, in fact, a very important aspect).

Therefore, on the path to discrete algorithmic trading, a mandatory stage that any trader must go through and master is systemic trading, i.e. trading according to the rules. This serves as a kind of simulator for instilling discipline and self-control, which, whatever one may say, is inherent in any successful trader.

This, friends, is the end of the article on types of trading systems; I think it will be useful for novice traders and will contribute to the understanding of systemic trading. In the future, a large number of proven and original trading strategies will be regularly published on the Forex blog, so don’t miss their release and subscribe to updates!

Bye everyone and happy trading!

Best regards, Alexander Siver

In the process of gaining experience, a trader will have to reconsider his attitude towards the market more than once. He must personally test various types of trading systems and build his own unique methodology based on them. Let's try to help him with his choice and offer our own version of the classification of trading strategies.

Classification is usually carried out according to one of the basic characteristics, for example, indicator and non-indicator (), single-currency and multi-currency ().

Here are the most popular types of trading systems, grouped according to the following criteria.

Systems based on fundamental analysis

Analyst forecasts calculate price movements based on economic and political events, intramarket relations, official (and not only!) statistics and many other factors, to understand which you will have to study at least an initial course in economics and finance. Today, it is the foundation that is the most powerful market driver. The most striking example of a fundamental trading strategy is arbitrage ()

Strategies are used only by large players who have the opportunity to open transactions based on structural changes in the economy, political events and other global factors. Medium-term positions with mandatory hedging with other assets (options, futures, assets). This also includes all types of trading systems that use cross-correlation.

Systems based on technical analysis

Fanatics of indicators, advisors and all kinds of mathematical dependencies make up approximately 80% of beginners and about 40% of professional market participants. Indicators of various types analyze the price history of an asset and identify key points on the basis of which it makes a forecast of the future of the asset. The forecast is directly related to the accuracy of indicator calculations.

Manual - All trading actions are performed manually. Recommended to everyone without exception.

Semi-automatic- indicators and advisors analyze the situation, issue signals, but the decision is made by the trader. Reduces risk, but lack of trust in the advisor leads to missing profitable entry points. Recommended for small but stable profits.

Automatic (mechanical or trading robots) is a software module in a language built into the terminal that trades completely without human intervention according to a specific algorithm. Recommended only if you have full trust in the algorithm and control the load on the deposit. ().

Long-term- from a week to a year (or several). Lowest risk and psychological stress, no need to make instant decisions. you need a large deposit, assets with predictable volatility and a clear fundamental background. Large investors, central banks, and large hedge funds work here. The greatest efficiency is at the beginning of a trend; flats and rollbacks are protected by stops. Large players usually insure risks in the exchange-traded options market for similar assets.

Medium term- trades last from 1 day to a week, optimal for novice traders who cannot or do not want to wait. Practice shows that with a deposit/collateral balance of 5:1 to 10:1, it can be practically risk-free. The negative point is indirect costs in the form of a swap. Such strategies are used by professional private speculators at the level of large banks and mid-level investment funds.

Short term- from 1 hour to 24 hours, a highly profitable (potentially!) strategy for fairly experienced traders who understand the market well. It is on such strategies that successful novice traders make their first serious deposit.

Ultra-short-term (or scalping)- the most attractive and dangerous for beginners. Trades from a minute to M15, profit 1-10 points, huge costs for the spread. The probability of losses is very high, but there are many profitable techniques that, if used wisely, will help boost your deposit.

Trend Followers- transactions according to the main trend. The most common and stable indicators are those that calculate average values. The trend is for periods above H1, that is, mainly medium- and long-term strategies. Examples: on moving averages, channel ones. The accuracy of trading is affected by the correct choice of timeframe, control of rapid price reversals and lag (treated by using several indicators with different parameters). Medium risk

Counter-trend- entry on a rollback from the main movement in anticipation of either a serious correction or a change in the general trend. The main thing is to correctly determine the moment of entry, so oscillators in such a system are mandatory. It is used for the purpose of diversification when trading with a trend, which provides a reduction in risk and confident profitability, but control over the load on the deposit must be strict. Typically positions are held for no more than a day. Recommended for traders with good technical background

Pattern-based systems- development of graphical and candlestick models, which also include fractal structures and PriceAction models. The emergence of standard models provides a forecast for further movement. The more complex the model, the more reliable it is and the more time it takes to form it. It works best in the medium term and in a normal market, since in short periods and during speculation the models are unstable. Recommended for experienced traders. The risk is average. ().

Systems based on wave analysis or the Elliott wave indicator and its modification of the Wolfe wave - these are types of trading systems that take into account the psychology of the crowd - the main driving factor of the market. (). The systems are medium-term, with an average level of risk, but suffer from some subjectivity (you need to see “future” waves), so it is recommended to equip it with standard trend indicators. Does not work on highly volatile instruments. It is considered the choice of professionals and active analysts.

Volatility Breakout- use of situations of breakdown of key levels (trend lines, channel boundaries, “round” price levels), confirmed by the accumulation of trading volume, most often after a flat period. An option is considered to be trading on a breakout/rollback from Pivot levels and trading using Fibonacci levels. The entry is made in the direction of the breakout or on a rollback from the level. Works great when changing sessions (opening-closing), fundamental events, as well as when large options are closed. It is used for periods above M5, the risk is standard, recommended for all fans of technical analysis. To confirm the “truth” of the breakout, such systems are supplemented with oscillator-type indicators.

Session trading systems- trading at session boundaries using special indicators, you can read more here. Requires in-depth knowledge of asset features. Usually traded intraday. Deposit requirements are standard. The risk is average, the profitability is also average.

News- price spikes on news, a variant of speculative scalping (). It is dangerous for beginners, but those who know how to work with trading volumes can make decent money from this. There may be problems on the part of the broker (requotes, entry bans, signal delays). Implemented in automated trading projects (autoclick).

Hedging– types of trading systems to reduce losses from another position: opening multidirectional transactions on one asset (locking) or on assets with strong correlation (direct or inverse).

Arbitrage (triple hedged, network). It is necessary to monitor the level of commissions (spread, swap) and the level of the deposit (and if the hedging position is opened on another broker, monitor especially carefully).

Martingale– increasing the trading lot in case of a loss or a current unprofitable position. The club of fans of this tactic is constantly replenished with newcomers, but not for long, since the danger of quickly losing a deposit during such trading has long been proven by millions of traders and leaked money.

Anti-martingale- lots increase as trading is profitable (in a profitable direction). In this case, there is a dangerous load on the deposit and with a sharp price reversal, a quick and poorly controlled loss is possible.

Choosing a strategy

The choice of types of trading systems comes down to the concepts of “simple-complex”, “fast-slow”, “speculate-trade”. A conservative trader will immediately filter out all pip strategies, disrespectful fundamental analysis will not be associated with arbitrage and complex hedging, an aggressor will cling to scalping in any form, and systems based on wave analysis are unsuitable for automation. The size of the deposit greatly influences the choice of time strategy - for long-term ones you need a fairly large reserve.

Ultimately, trend systems confidently hold the lead in terms of profitability with a minimum deposit load. Aggressors successfully use counter-trend strategies, but their increased profitability is eaten up by high risk.

Remember: trading assets can change characteristics (correlation, volatility, peak periods) under the influence of fundamental factors and general market trends. Therefore, all types of trading systems must be able to fine-tune parameters.

And as a conclusion...

Almost all types of trading systems can be profitable. Each requires its own market and trading conditions, but the main factor in any system is people. This means that the system should be simple and understandable to you personally, adapted to the trading asset and your mode of operation. Moreover, the differences between different types of trading systems are not clearly defined and mixed, universal strategies bring success. The ideal option would be to form a portfolio of several diverse trading systems in order to “catch” the maximum market movements and, as a result, make money.

Friends, every trader has standard discipline, mental toughness and concentration. This goes without saying. But do not forget that it is necessary to develop systems thinking, which is based on the trading system.

In this article, I propose to structure your knowledge about trading strategies and main classifications. For those who already know, we repeat!

Trading strategy

A full-fledged trading strategy must contain clear entry/exit conditions, taking into account the time intervals used, rules for capital management (or money management) and compliance with risks.

The main objectives of the trading system: determining the algorithms for the trader’s decision-making process and limiting the factor of emotional influence on the course of the transaction.

Trend Strategies

Let's start with trend strategies.

One of the common, popular and most profitable types of trading systems in the Forex currency market is the trend one.

It is based on assumptions about the trend of growth or decline, if it occurs, its stability and continuation are traced. The trend, from which the name of the system originates, is considered relative to a certain time period.

It should be remembered that what is defined as a trend on the daily chart often turns out to be a market correction on the weekly timeframe. To determine the strength of a trend, many tools are used, including indicators. But in most cases, analysis of the data provided by the indicators shows strength at the end of the time period; however, with a more sensitive setting, they can signal false reversal movements.

Therefore, when using a trend type of trading, you should approach such starting data with caution. Trading systems of trend type in conditions other than the market trend are absolutely unprofitable due to the large number of false entries.

Flat strategies

The next type is flat strategies.

They are based on the assumption that prices move within a corridor or channel, limited by resistance levels at the top and support at the bottom.

The flat strategy, or as it is called the “channel strategy,” organizes trades by buying near the support level and selling near the resistance level.

In addition to determining levels, which is not always possible to do for objective reasons, a strategy is sometimes built using oscillators. A combination of oscillators with resistance and support levels is possible.

Another type of trading system (used by more advanced traders) is the countertrend system.

It is based on determining the trend reversal point. Correctly determined timing of the reversal allows you to get maximum profit during the reverse movement, but the use of these strategies is associated with a large number of false entries and a very close stop loss level.

The main thing is to correctly determine the moment of entry, so oscillators are required in such a system. It is used for the purpose of diversification when trading with a trend, which provides a reduction in risk and confident profitability, but control over the load on the deposit must be strict. Typically positions are held for no more than a day.

Now let's look at strategies based on patterns.

Patterns are figures of continuation/reversal of market movement. To complement trading strategies, or in some special cases, systems are used based on Forex patterns, which are a characteristic combination of a price model and its derivative over a period of time, which has a predictable continuation according to statistical data.

The more complex the model, the more reliable it is and the more time it takes to form it. It works best in medium- and long-term trading, since the patterns are unstable in short periods. Recommended for experienced traders.

Well, the last type of trading systems that we will consider are combined or, as they are also called, universal trading systems.

This type of strategy is considered the most reliable, since its construction is based on a combination of the various systems described above into one single one, after which a certain period of testing is necessarily carried out and used for trading.

As you already understand, in this article we examined only 5 types. Now I want to say a few words about choice.

The choice of types of trading systems comes down to the concepts of “simple-complex”, “fast-slow”. Remember: trading assets can change characteristics (correlation, volatility, peak periods) under the influence of fundamental factors and general market trends.

Almost all types of trading systems can be profitable. Each requires its own market and trading conditions, but the main factor in any system is people.

This means that the system should be simple and understandable to you personally, adapted to the trading asset and your mode of operation.

Do you think there are many factors that directly influence your effectiveness as a trader?

In fact, there are dozens of them, but the most important and key is precisely chosen trading strategy. It doesn’t matter whether you created it yourself or downloaded it from the Internet. The main thing is how you cope with its application! But here’s where it all happens, it’s not that simple at all -)

After all, no matter how much we want it, there is simply no strategy in nature that would always give profitable signals in any market conditions. Unfortunately, the market is heterogeneous and tends to change suddenly.

Therefore, beginners who do not know the basic principles of building strategies, what they exist, what market features they are aimed at and where the very moment comes when the tactics necessarily fail, are doomed to lose their money...

For example, a novice trader should initially understand what a “TREND” strategy is and what actually stands behind this concept, other than just a beautiful and abstract term.

By the way, for this topic I want to say thanks to the blog reader, Dmitry, who often asks questions like “Sergey, how many candles in this strategy should you set expiration on...be more specific” -) Of course, I won’t give a specific answer to this question , but the information below will help you find answers to such questions yourself...

So, in order to complete your knowledge, I propose to get acquainted in detail with what types of strategies there are, what are the weak points of each of them, and most importantly, we will try to develop simple algorithms for solving the weaknesses of this or that type of strategy.

Types of Forex, binary options and CFD trading strategies

So, the first criterion, according to which almost all strategies without exception are divided into types, directly concerns the characteristics of price movement, the state of the market and how the trader positions his signals relative to it.

Trend Strategies

The basic feature of these strategies (an example of a trend strategy) that distinguishes them from all others is that the trend and its definition are put above all else, while the entry point recedes into the background.

This occurs due to the presence of trend indicators in the strategy or other trend tools (for example, trend lines). As a result, such strategies have a noticeable lag, and at first the transaction may hang around zero for a long time until there is a real movement in your direction.

Traders who use such strategies should clearly understand that they should not expect an ideal entry point, which is so necessary for scalping on Forex or CFDs and in turbo options trading. Yes, a feature of trend strategies is the averaging of market noise, so trading on minutes or five minutes may seem very sad for a beginner -)

These shortcomings can be eliminated very simply, namely - trend strategies should be used carefully on small time frames, as well as on assets with low volatility!

In addition, it is easy to understand that the main enemy of trending tactics is the sideways market (flat), or the so-called chatter in place. Therefore, you should only trade during active sessions.

Countertrend types of strategies

In fact, a countertrend strategy is only a part of any trend strategy. Countertrend means against the trend -)

The main task of any counter-trend strategy (example) is to make money on a rollback of the global trend, or to catch the moment of reversal before anyone else. In fact, this type of strategy is one of the most aggressive and dangerous, since you should trade against the trend, and therefore against the crowd and big players.

In practice, counter-trend strategies are quite difficult to implement in binary options trading, since it is common for them to sit out a loss for quite a long time. In CFD trading or the foreign exchange market, the use of similar tactics occurs, but, as a rule, in combination with Martingale.

Among the disadvantages, we can note the fact that the trader, in fact, sacrifices a huge number of losing trades for the sake of one unrealistically profitable one. As a result, a huge number of unprofitable signals, psychological stress, and stress.

And don’t be surprised, in fact there are such fanatics or psychological masochists who trade exclusively against the trend!

Flat types of trading strategies

The trend always changes to a flat, and as many studies show, the market is sideways more than 50% of the time.

A feature of such strategies is the presence of oscillators or a channel indicator, and the principle of trading comes down to opening transactions from the narrow boundaries of the range.

In practice, the flat type of strategy (example) works great in a calm market, and no matter how strange it may sound, they are very popular among scalpers, since their entry points are quite accurate. However, problems with such tactics begin when real trends appear, since such indicators will give dozens of false signals.

It’s easy to overcome the huge number of false signals - trade during inactive trading sessions, when the market is sluggish and weak. Actually, for this reason, many scalpers prefer night trading.

As you may have noticed, each of the global types of trading strategies is effective in its own way and, at the same time, weak at certain moments. The ideal solution and specific answers to the questions, the example of which I gave at the beginning, simply does not exist. For all times and occasions, as they say...

The only thing you can do is to use testing tools correctly and tirelessly sharpen your real trading skills on a demo account or paper!

Yes, today we sorted it out types of trading strategies on the stock exchange, so that you clearly understand the advantages and disadvantages of each of them. And already the types of strategies, that is, short-medium and long-term.

What are the most profitable Forex strategies? Which Forex trading system should a beginner choose? What is the secret of successful trading for professional Forex traders?

Hello, dear friends! Alexander Berezhnov is with you.

This article is about trading strategies on the Forex market. I myself have been trading on FOREX for more than 3 years and have seen in practice how important it is to follow a clearly developed strategy.

This article will help you understand the huge number of strategies that the Internet is now replete with. I will describe the most popular of them and help you choose the best one, taking into account your individual personality type.

Are you ready for successful trading? Then let's go!

1. What are Forex strategies and what are they for?

Imagine that you are entering a dark and unfamiliar room. If you don't turn on the lights, you could bump into objects, fall, hit yourself, or break something. If you turn on the light, you can calmly walk around all the objects and get to the right place.

Forex strategy in this context is the light. By applying it, we illuminate and “see” the market, predicting its movement.

Without a strategy, we are in complete darkness, make mistakes, lose money and cannot see a further path. Now think about what is more profitable: staying in the dark or turning on the light? What is strategy?

Strategy is a developed system of rules that must be strictly followed by a trader seeking to increase his money in the foreign exchange market.

It allows you to confidently enter and exit a transaction, rather than opening and closing chaotically, ultimately losing all your capital on the deposit.

The strategy is like a traffic light: you always know that when it’s green you open a trade, when it’s yellow you’re waiting, and when it’s red you’re out of the market without even considering the possibility of entering.

Believe me, having a decent real deposit, the most difficult thing is to open a deal. The strategy immediately relieves you of these hard thoughts: you simply enter the market when you see a certain situation (signals). But what are the rules for opening?

The rules for opening transactions can be as follows:

• intersection of indicators installed on the chart;
• price reaching certain levels;
• candle shape or candle combination;
• formation of familiar patterns (figures) by a graph and much more.

You can follow someone else’s Forex strategy, you can combine them with each other, or you can develop your own, based on many others. The main thing is its presence.

Testing of a trading strategy on the foreign exchange market is carried out exclusively on a demo account. Testing period: at least six months.

If the strategy shows results that suit you within six months, you can use it on a real account.

Now some thoughts. If you don't have a strategy, then the number of losing and profitable trades should be equal, right? But in practice, it turns out that unsystematic trading catastrophically quickly leads to zeroing the account.

Paradox

If you deliberately try to drain your deposit, then you will have little success: it will decrease extremely slowly. But why does this happen?

The secret is simple: fixing small profits and large losses; buying where you need to sell and selling where you need to buy.

What is the conclusion? Trading with a profit should be as easy as losing money – you just have to follow the rules. If you are not yet experienced enough, then do not rush. Before jumping directly into the strategies, check out the article.

It’s easy to look for an entry into the market according to specific rules, but 90% of traders for some reason neglect to follow their strategy, leaving the market forever and losing the opportunity to be successful. I hope you want to be among the 10% of successful traders? - then let's move on.

2. What determines the choice of Forex strategy - 3 main criteria

So you are committed to implementing a strategy. But there are a huge variety of profitable Forex strategies. How to choose the one that's right for you?

Imagine that you need to buy a TV. You know what it is and which one you want. Where will you go to buy? That's right, to a store that sells consumer electronics.

But when you come to the store, you will find many models of TVs. Your task is to choose.

The TV you choose will be no worse than other models remaining in the store. It will just be the TV that you are most comfortable with.

Do you think things are different in the Forex market? No, everything is exactly the same as in the TV example. We know that we need the most profitable Forex strategy, and now our task is to make a choice from the proposed options. And this choice will be no worse. It will just be the strategy that interests you.

You just don’t need to buy it - I have already prepared the most effective ones for you in this article.

There are only three criteria for selecting Forex strategies:

1. Duration of holding open positions.
2. Approach to market analysis.
3. A method for analyzing graphs.

Now more details about each.

Criterion 1. Duration of holding open positions

Some people like the marathon, while others like the sprint. It's the same with strategies.

In accordance with this criterion, the following are distinguished:

• short-term;
• mid-term;
• long-term.

Below I will tell you more about each type of strategy.:

1. Short term. Suitable for experienced traders. Aggressive trading is expected: about 100 transactions can be opened per day. This also includes scalping and intraday trading.
   • Scalping- suitable for traders with small capital. An open position can be held from 5 seconds to half an hour. Up to 200 trades can be opened per day. But bigger doesn't mean better. Among traders, scalping is considered one of the most complex approaches to trading. Scalping strategies in Forex are used regardless of the price direction (short or long).
   • Intraday- This is intraday trading. The trade opens and closes throughout the day. Such strategies are simple, understandable, and suitable for all traders. Several transactions can be opened per day on different currency pairs. Typically, with this approach, 2 to 5 trades are opened.
2. Medium term. This will not do without knowledge of technical analysis. An open position can be held from 1 to 45 days.
3. Long-term. Such Forex strategies are suitable for both beginners and experienced traders. An open position is held for up to a couple of months, which allows you to monitor the market in a relaxed manner and not worry about the current state of the open transaction. You don’t need to sit in front of the monitor all the time; it’s enough to open the chart once a day. If the forecast is correct, the profit is significant (up to several thousand points).

Criterion 2. Approach to market analysis (fundamental and technical)

To predict the most likely price direction, you need to know about fundamental and technical analysis. Some naively believe that you can only master one type of analysis. Unfortunately, the market does not tolerate amateurism. Do you want profit? Comprehend everything.

Fundamental Analysis is a forecast of price behavior based on news and the general economic situation in the world.

Why analyze the news? It is the release of some important news that can lead to a sharp change in trend and a price reversal, for which you may be unprepared.

According to significance, news is divided into 3 types:

• insignificant;
• important;
• the most important.

The basic rule of experienced traders is not to trade when important news is released! Why? Yes, because your stop orders (stop loss and take profit) are almost 100% likely to work. The best way out is to close the position before the news comes out.

Technical analysis is an approach to market analysis using price chart analysis.

This forecast is made based on past market movements. The tools for analysis are indicators, the price chart itself and its elements: candlestick figures (bars).

Technical analysis is well suited for short-term trading in a non-aggressive market.

Criterion 3. Method of analyzing charts (figure, indicator, candlestick)

Technical analysis comes down to three main forecasting methods:

1. According to the figures.
2. According to indicators.
3. By candles.

Figure analysis involves the visual detection of a figure (pattern) on the price chart and a clear knowledge of where the price will go next. Price direction is determined by precise rules that a trader must know.

There are two groups of established graphic models (patterns): price reversal patterns And continuation patterns of the current trend.

Reversal patterns include:

• triple base;
• double base;
• double top;
• double base;
• head and shoulders;
• inverted head and shoulders;
• diamond.

Trend continuation models include:

• rectangle;
• pennant;
• flag;
• wedge;
• triangle.

Example. You have spotted a double top on the chart. This means that the price tried to break through the level twice, but failed. All you have to do is look for an entry point to sell.

Indicator analysis involves installing various technical indicators on the chart that will give signals to buy or sell. An abundance of indicators may not bring profit, so you need to choose several that are suitable and understandable to you.

Experienced traders typically use no more than 2-3 indicators at the same time.

In total, there are two groups of indicators:

• oscillators;
• trending.

Oscillators usually indicate a possible trend reversal and work well in a flat*.

Flat(from the word “flat”) is a market situation when the price is in a corridor and has no clear direction.

Trend indicators “follow” a trend and work great when it is present in the market.

But even the most famous and accurate market indicators are not the golden grail.

Remember two important rules:

1. You will get the maximum profit when several indicators give you the same signals.
2. No technical indicator can take into account the behavior of the market when important news is released!

Example

The stochastic oscillator is in the oversold zone. This means we can’t sell anymore, we are only considering the option of buying.

Candlestick analysis involves studying all familiar combinations of Japanese candlesticks in order to determine a change in trend or its continuation. Perhaps candlestick analysis is the simplest and most understandable.

Japanese candlesticks are a chart display in the form of rectangles, the body of which is colored in different colors depending on the type of candle. If the candle is dark, it means the opening price is higher than the closing price. If the candle is not colored, it means the opening price is lower than the closing price.

Candlestick patterns can be used to predict the continuation or reversal of a trend. See the picture below for an example.

There are bullish candles (their closing price is higher than the opening price) and bearish candles (their closing price is lower than the opening price).

By looking at a Japanese candlestick, you can immediately determine the mood in the market: in a given period of time (timeframe), buyers or sellers predominate.

Trading using Japanese candlesticks is convenient - you just need to find a familiar combination.

For example

We see the Shooting Star, a candlestick with a very small body, a long upper shadow and a small lower shadow. This candle immediately tells us that we need to sell.

Simple, isn't it?

3. How to choose YOUR strategy - 3 simple steps

I’ll say right away: the best Forex strategy is the one that suits you.

I have been looking for my Forex strategy for about a year. At first I trained to trade using simple and understandable strategies, gradually adding something of my own to them. This is how my strategy turned out.

Just choose and combine those that already work.

To choose your strategy you will need:

• determine your psychological type;
• realistically assess your professional level;
• set how much time you will devote to trading.

Now about each point in more detail.

Step 1. Determine your psychotype (comparative table)

So let's find out who you are?

№	Psychotype	Market behavior	Optimal Strategies
1	Sanguine	He wants to earn money and puts all his effort into it. Consistent in trading, not upset by losses	For a sanguine person, strategies weighted by the ratio of risk and profit are suitable
2	Choleric	Wants to make money quickly, cannot open long-term positions, is in a hurry. Can quickly lose the deposit due to its haste and carelessness	Trading on short time frames is not recommended; it is better to choose medium-term interday trading on the H1-H4 intervals
3	Phlegmatic person	The luckiest one in Forex. Knows how to wait, makes informed decisions, is always calm	Since the phlegmatic person treats trading with full responsibility, this psychotype has no restrictions on choosing an appropriate strategy
4	Melancholic	Too inconsistent, overly cautious, makes chaotic decisions	Strategies with short stop losses and take profits are recommended

Let's move on to the next step.

Step 2. Assess your professional level

It’s clear that you can’t do without reading several books. Trading without any Forex knowledge is simply useless!

• Nassim Taleb - "Black Swan".
• Edwin Lefebvre - "Memoirs of a Stock Speculator."
• Eriy Naiman - Small encyclopedia of a trader.
• Alexander Elder - "Trading with Dr. Elder."

These Forex books will help you understand the essence of the exchange game, risks and profitable strategies.

Step 3: Determine How Much Time You Can Dedicate to Trading

Forex trading is available to everyone: from housewives to businessmen. It is possible to earn money by devoting at least 1 minute a day, even the whole day. There are no time restrictions.

For more productive and successful trading, give yourself a “day without trading.” This means that on this day you don’t think about Forex at all, don’t read thematic forums, books, and don’t talk about exchanges with friends.

4. The best Forex strategies (FOREX) - review of the TOP 15 most profitable

So we have reached the most long-awaited and “delicious” section. Here we will look directly at the strategies themselves with a detailed and understandable description of them.

Simple strategies for beginner traders

These trading strategies are suitable for short-term and intraday trading.

Strategy 1. Moving averages

This Forex strategy is suitable for any currency pairs. We will work on 2 timeframes:

• Weekly (W1).
• Four o'clock (H4).

A weekly chart will be needed to determine the trend, and a four-hour chart will be needed to open positions and find entry points.

On W1 we set two moving averages: exponential (EMA) and simple (SMA). We take EMA with a period of 21, SMA with a period of 5. If the price chart is above two moving averages, then the trend is upward, and vice versa.

On H4 we set two simple moving averages with a period of 55 and 7.

Rules. If we observe a downward trend on W1, then on H4 we consider only sales and ignore purchases.

There are two options for entering the market:

1. First option. When the lines intersect from top to bottom, we place a pending order to buy exactly at the level of the moving average with a period of 55. If the level has moved, we also move the pending order. We wait until the price opens it. Stop losses are set at previous local extremes (minimums and maximums).
2. Second option. We wait for the averages to cross from bottom to top and the candle to close above this intersection point. Now we open a buy order on the market. We set stop losses as in the previous version.

How to set take profit? Pull from the moving average with a period of 55 Fibonacci levels. In the settings, set only the following levels: 144, 233, 377, -144, -233, -377.

If we see a buy signal, we open three trades (all have the same lot). Profit will be located accordingly on all these three Fibonacci lines. Don’t forget to move the trade to breakeven (drag the stop-loss).

Strategy 2. Three candles

This trading strategy is suitable for scalping. Trading timeframe – M1. Any currency pair will do.

Rules. We are waiting for the formation of two candles going in the same direction. It is better that they are without long shadows. After the third one appears, we open. We use the Stochastic Oscillator (Stochastic) as an additional input signal.

For example, if three candles are going up and the indicator indicates a downward trend, then the trade is not executed. A buy signal will occur when Stochastic is in the oversold zone.

Strategy 3. London session

This is perhaps the simplest strategy in Forex. Trading timeframe – M30. Trading time is the London session, which starts at 10 am Moscow time. Best suited for pairs that include GBP. For example, for the popular currency pair GBP/CHF (British pound/Swiss franc).

Rules. Entrance to the market is daily, but one-time only. The signal to open in one direction or another will be the closing of the first candle. We place a pending buy order at its maximum, and a sell order at its minimum.

We place the stop loss at the high or low of the same candle, depending on which order was opened: buy or sell. After opening an order and the price passing 15 points, we set breakeven.

We do not delete the second pending order. If the price reverses, you will still make money. In this strategy, you will either be in the black or break even. Thus, this Forex strategy is break-even.

If important news comes out on this day, we do not trade!

Scalping strategies for short-term and intraday trading

Scalping involves large profits in a very short period of time. There are also very great risks associated with it. If you are sure that you don’t want to wait, but want to earn money now, then this trading method is for you.

The technique is very simple and yet effective. Marat conducts daily market reviews, which can be found on the broker’s website in the “Training” section.

Strategy 4. Simple

Anyone who likes to take risks will like the 1 minute scalping strategy. To work, take the GBP/JPY pair and install an indicator on the price chart BollingerBands(Bollinger Bands) with parameters:

• period 50, Deviation 2 (red line).
• period 50, Deviation 3 (orange line).
• period 50, Deviation 4 (yellow line).

Rules. The optimal trading time is between the opening of the London session and the end of the Japanese session. You also cannot trade in a flat market during news releases.

Consider purchasing. We open at the moment when the price is between the orange and red lower lines. We set the stop loss depending on your personal percentage of losses in one transaction. Usually this is no more than 3%.

The sale is carried out in a similar way if a mirror situation is observed.

Strategy 5. Quick profit

“Quick Profit” allows you to use scalping on Forex effectively, while remaining a simple strategy. Suitable for any currency pair.

We will work on a minute timeframe, setting exponential moving averages (EMA), Parabolic SAR and MACD for analysis. We take EMA with periods of 25, 50 and 100. We take the remaining two indicators with standard parameters.

Rules. The best time to collect profits is the opening of trading in London and New York. We open a buy or sell deal when the price crosses all EMAs. The filters will be Parabolic SAR and MACD.

If the price is about to cross all EMAs from bottom to top, the Parabolic SAR is below the price, and the MACD histogram is moving up, then this is a sure sign of a buy.

The take profit will be no more than 10 points, since the price may reverse. As soon as the price moves away from the opened transaction, transfer it to breakeven. Place stop loss at previous local lows or highs.

Strategy 6. Outsider

For the “Outsided” trading strategy to work with a high probability of success, you need to strictly follow all points of the rules.

We work on M15 with the GBP/USD currency pair. You can try it on other instruments. We set an EMA with a period of 9 on the chart.

Rules. We consider only those candles that do not touch the moving average. An ideal candle is one whose minimum or maximum is located approximately 1 point from the indicator.

If we are considering buying, then the closing price of our signal candle should be higher than the previous high. We place the stop loss below the low of the previous candle. We set profit according to the number of points of the previous candle. If the price suddenly went up 20 points, it is better to set a breakeven.

Trend strategies regardless of price direction

This group of strategies is aimed at detecting a trend and trading in its direction. They are not suitable for calm and lateral movement. But here it is possible to make a good profit.

Strategy 7. Juicer

This Forex strategy is suitable for the D1 interval. There can be any currency pairs.

Rules. Let's consider the conditions for opening a buy position. We are looking for a combination on the daily chart of a candle with a black body (a bearish candle), followed by two white candles in a row.

Important!

The close of the second candle should be higher than the high of the previous white candle. If this condition is not met, we wait for the next signal.

We place a pending buy order 5 points from the high of the second white candle. We place a stop loss below the low of the same candle. It must be at least 45 points, but no more than 80 points. We set the take profit at 500 points.

If after 4 days the transaction is in the black, we set breakeven. If the deal is in the red, we close it at the market.

When you already have 200 pips of profit, set a trailing stop in 50 pip increments of 200 pips.

Strategy 8. Channels and envelopes

With this Forex trading strategy we will work on H1 with the EUR/USD currency pair. You will need two indicators: Envelopes and BollingerBands.

Envelopes parameters: Period - 288; Shift - 1; Method MA – Exp; Apply to – Close; Deviation – 0.15%.

BollingerBands parameters: Period – 24; Shift - 0; Deviations – 2; Apply to – Close.

Rules. Let's consider the conditions for opening a buy position. We are waiting for the candle to cross the blue Envelopes line and close above it.

We open a buy position at the beginning of a new hour. We place a stop loss on the lower red line. The stop loss size should not be more than 50 points!

When the price passes 40 points into the profit zone, we move the transaction to breakeven. To get maximum profit, pull up your breakeven along the bottom BollingerBands line.

Strategy 9. Accurate entry

This trading strategy is used by professional traders because it gives good signals and profits. The currency pair for trading can be any.

The search for signals will be carried out on two time frames: H1 and M15. Let's install PivotWeekly, ParabolicSAR (step - 0.02, maximum - 0.2) and three EMAs with periods of 7, 14, 21 on the chart. We set moving averages at M15 to find a more accurate entry.

Rules. Let's look at an example of a purchase. Open the hourly chart and look at the Pivot levels. We are waiting for the price to approach a certain level and bounce off it.

There should be no more than 1-2 candles! When a candle or two candles rebounded and closed below the level, go to the M15 chart.

We wait until the fastest moving average with a period of 7 crosses the other two averages from bottom to top. Now we enter the market.

We set a stop loss at the nearest minimum, but we will not set a take profit. It is better to close trades at the next pivot level Pivot. When the price goes into profit, you can move the stop loss to breakeven, and then move it down every hour.

Breakout strategies without indicators

Indicatorless Forex trading strategies are the easiest to understand and trade. They take into account important support and resistance levels that the price tends to and from which it bounces.

Strategy 10. Sniper

The Forex Sniper strategy is based on working with levels. Working timeframe – M5 or M15. You can trade any currency pair.

Rules. An order is opened only upon a rebound or breakout of a level. 20 minutes before the release of important news, new orders are not opened. You cannot gain more than 40 points in one day. If 40 points have already been gained, trading stops.

There are three login options:

1. We open after a breakout, price fixation at an impulse level or a rollback.
2. We open after a false breakout, when there is a rollback to the impulse level.
3. We open when the price leaves the trading channel.

Entry is made with two orders of equal lots. The first order has a take profit of 15 points. For the second order, the take profit is set at the nearest total impulse level. Simply put, this is a support or resistance level.

When 15 points are taken, we close one order. For the second order, you can set breakeven.

Strategy 11. It couldn’t be simpler

This Forex trading strategy is suitable for daily charts. The most suitable currency pairs: GBP/USD, USD/CHF, NZD/USD, AUD/USD, USD/JPY, EUR/USD, USD/CAD.

Rules. Let's look at an example of a purchase. We are looking for a specific candle on the daily chart: it should form a local maximum, have a long tail on top and a small body of any color.

Draw a horizontal line along the high of the candle. Next, we wait for any subsequent candle to break through this horizontal line by more than 10 points and close above our line. We place a pending order 5 points higher from the high of the formed candle that suits us.

We set the take profit to 100 points and the stop loss to 50.

If 3 days have passed after opening and the price has not reached the target, we transfer the transaction to breakeven.

When the movement is clearly lateral, you cannot look for entry points!

Strategy 12. Ingenious

The Forex strategy “Brilliant” works on GBP/USD.

Rules. Open the daily chart and look at the number of points that the price has passed. If it is 140 points in one direction, then this is already a signal to open a position soon. This unidirectional movement happens about 7 times a month.

We set the stop loss at 60 points from the entry. Exit the market at 100 pips or 11:30 (GMT) the next day. To be sure, set the minimum trailing stop at 50 points.

Strategies based on patterns and candlestick analysis

Figures and candles are Forex classics. They are easy to find on the chart and easy to determine in which direction the price will move. By accurately identifying the desired pattern, you are likely to get your profit.

Strategy 13. Pattern D

This Forex trading strategy is stable and classic, based on the “Double Top” and “Double Bottom” pattern. We work on the H4 timeframe with the EUR/USD currency pair. We will use the SMA, EMA and MACD indicators to help.

• Parameters for MACD: LowEMA=13, FastEMA=5.
• Parameters for SMA: period 89.
• Parameters for EMA: 365, 21, 7.

Rules. Consider purchasing. To generate a signal, you need to find two minimums. The second minimum should be slightly higher than the first. Both tops must be below the level of 0.0045 on the MACD histogram. The stop loss is placed 10 pips below the second low.

We divide your usual lot that you trade into 3 transactions. For the first 30% of the position of the total lot, we fix the take profit above the 21-period EMA line.

For the second 50% of the position of the total lot, the take profit is located between the price reaching 89 and the 365-period EMA. The third 20% position of the total lot is closed when there is a strong resistance level nearby.

Strategy 14. Profitable wedge

This intraday strategy is simple. It can be used on any timeframe and trade in any currency pairs.

Rules. First, we build important lines of support and resistance. Now you can look for the “Wedge” pattern on the chart. But this pattern may indicate both a continuation and a price reversal.

Let's look at an example of a purchase. After finding the Wedge, set a stop loss 20 pips below the lowest side. We set the Take Profit equal to double the distance between the sides of the Wedge.

We exit the transaction when reversal combinations of candles appear, if the price has not reached the take profit.

Strategy 15. Key reversal

This is another Forex day trading strategy that shows amazing results in terms of profits. The work will be carried out on H4, and the currency pair will be GBP/USD. To filter out false signals, we will additionally install the Stochastic indicator. The parameters are as follows: 14, 3, 3.

Rules. Rules for opening a buy deal. We are looking for a downward trend. We are interested in a candle that forms a local minimum and has a closing price higher than the closing price of the previous candle. We look at Stochastic: it should be in the oversold zone, that is, below level 20. The signal line of the indicator is below the main line, or touches it (merges).

We open a buy position on the next candle and set the stop loss below the local minimum. The take profit is set to twice the stop loss. When the price has gone into profit at a distance equal to the stop loss, set breakeven + another 10 points.

If a transaction fluctuates around zero for three days or is at a loss, then it should be closed at the market.

5. What trading systems do successful traders use?

Now I would like to talk about successful traders and their certain “trading secrets”.

№	Trader	Strategy
1	George Soros	Obtaining insider information, speculative rumor-mongering, intuition. He likes to sell assets because he definitely senses the beginning of a crisis
2	Ingeborg Mootz	Works only with bank shares. When making decisions, he relies on intuition. The basic rule is to hold shares for more than a year, but not more than two years.
3	Richard Dennis	Made a fortune in the market with only $400 trading futures. Claims that anyone can earn money, since anyone can be trained
4	Larry Williams	King of futures. Made a fortune by analyzing bars without indicators. Its main principle is to reduce losses and increase profitability
5	Warren Buffett	Founder of Forex Trust Management, as he was a long-term investor. The most successful deal that brought him billions was investing in the insurance business
6	Paul Tudor Jones	He successfully uses turning points in trading, but considers trend trading to be unprofitable. Surprisingly, his ratio of losing trades to profitable trades is 75% versus 15%, which did not stop him from earning billions. Believes that a trader’s success depends on competent risk management
7	George Lane	I traded using my own created indicator – Stochastic. The most profitable signal throughout his 60 years of trading was the divergence around the 20 and 80 levels
8	Stephen Cohen	Adherent to short-term trading, concluding up to 300 trades per day, without reading economic news at all
9	Ed Seykota	Fully automated trading. In 15 years, he managed to turn $5,000 into $15 million in one account

Also, gurus of stock trading and investing (George Soros, Alexander Gerchik, Alexander Elder, Larry Williams) give beginners the following advice regarding the rules of making transactions and developing a Forex strategy.

Top tips from the pros:

1. Any new Forex strategy doesn't have to be complicated. The simpler and clearer it is, the better.
2. The abundance of indicators is not directly proportional to profit. It is better to use no more than 2-3 indicators at a time.
3. A professional will never trade with his last money. He only uses funds that he can afford to lose.
4. Trading without a stop loss is the surest way to quickly reset your account.
5. Apply the 1-2-3 method to your strategy: select 1 currency pair and test it on 2 timeframes with a maximum of 3 indicators. If you made a profit after 100 trades, then the test is successful.
6. Always measure your earnings in points, not in money.
7. Take a closer look at support and resistance levels. They can bring you very decent earnings.
8. Professionals never triple their trading accounts in a month - this is a mythical and unrealistic data. Their lossless Forex trading strategies are aimed at slow growth of the deposit, and not at crazy unjustified risks. The maximum that a successful trader expects in a month is 10% with the riskiest strategy.
9. If you take more than 3 seconds to enter the market when scalping, you are missing out on profits. A lightning-fast assessment of the situation is the key to profitable points on the account.
10. If the stop loss size is less than or equal to the take profit, such transactions cannot be concluded. The potential profit must be at least twice the loss.

6. Real success stories of famous traders in the world

At its core, the Forex market is a ready-made business that is available to everyone absolutely free of charge. The only thing you need to invest in it is time.

Now I would like to briefly introduce you to the biographies of people who have earned millions of dollars on Forex and, thanks to their persistence in studying the market. Their names are known all over the world, they have a lot of money in their accounts, and their strategies are simple and understandable.

Some of them, thanks to the exchange game, have acquired fortunes worth billions of dollars, and now, with their success, these speculators inspire thousands of traders around the world.

1. Alexander Gerchik. Born in the USSR, graduated from the Institute of Food Industry and immigrated to the USA. He worked as a taxi driver. Chance brought him together with a successful stock trader, whom Alexander Gerchik gave a ride to in New York on Wall Street. This day changed his life. Gerchik became a successful trader and is now the managing partner of a large investment company, teaching stock trading to beginners.
2. George Soros. Successful trader, investor, financier. Born into a middle-income family, after 1970 he became actively involved in stock trading and became famous for his phenomenal earnings on the British pound. In this deal, Soros made a billion dollars in 1 day! Later, the financier published his famous book, which he knew, “The Alchemy of Finance.” There he described his own Forex strategy, which helped him become one of the richest people on the planet.
3. Alexander Elder. He graduated from medical university and worked as a ship's doctor. Then he became an editor in one of the journals on psychiatry. In the 1970s, Dr. Elder was introduced to the opportunity to invest on the stock exchange and has since turned his professional activities towards trading in the financial market. Now Alexander Elder is a world-famous expert in the field of stock exchange operations. His book “How to Play and Win on the Stock Exchange” became a worldwide bestseller and was translated into 12 languages.

If you want to learn more about Forex luminaries, watch online broadcasts and recordings of club days at. From my own experience I was convinced that this is simply a treasury of valuable information.

7. Conclusion

Friends, I think after reading the article you are once again convinced that following a certain strategy in the Forex market is very important for profitable trading.

How to play the Forex market from scratch - step-by-step instructions for successful trading on the stock exchange for novice traders