The most profitable Forex strategy

To date, there are a huge number of different strategies, tactics and techniques for profit and honing the skills of trader. But to determine profitable Forex strategies is not so easy. Due to the fluidity of time and all vital processes, traders need to periodically adjust their tactics. It's no secret that with great volatility, the direction of the trend does not have much significance for entering the market, only the intensity of the price movement is important.

Basic methods of market analysis

All methods of forecasting can be divided into three large subgroups, on the basis of which each trader builds his own profitable trading strategies Forex market:

• Trend or direction-dependent prices.
• Anti-trend differ aggressive entry into the market. The master opens positions both at the top of the value and on his day, thereby working against the mainstream, which carries a huge risk of losing the deposit, but in the case of timely entry - and a much larger profit than with a balanced approach.
• Flat or side strategies, which take into account the width of the price channel.

Strategies and tactics are the process of combining knowledge, skills and habits into one system that will yield positive results and, most importantly, bring profit. Accordingly, there are about as many types of strategies as traders.

Strategy using pending orders

A strategy using pending orders (an order to the trading system to implement an action) looks like this. The work uses different time frames, starting with a five-minute interval, and tools for trading.

The following indicators are used in this strategy:

• Fractals.
• A moving average with period 21 is a simple method applied to closed prices and with blue color.
• A moving average with a period of 120 is a simple method applied to closed prices with a red style.

As soon as the intersection of the lines of the moving averages occurred, and a fractal appeared on the local extremum, it is possible to place a pending order depending on the direction of intersection. A crosshair from the top down is a signal to buy, and from the bottom up - for sale. To reduce losses, immediately after opening a position, you must set a stop-loss. This is the command that tells the broker to close the deal when the specified mark is reached. Stop-loss is set depending on the opening of the transaction. It can be either behind a sliding red color, or behind a fractal.

Pipsing

Strategy using Heiken Ashi MA or so-called pipsing. This term implies a series of periodically opened positions with a minimum profit of about 2-5 points, which is obtained when trading on short time periods using a trend. This is the most profitable simple Forex strategy, which is most often used by beginning traders. The essence of this system is that you can close positions with frequent profits, provided that the correct entry into the market is observed. For each individual transaction, the income may be small, but as a result of the trading results may be quite impressive amount, with a minimum of risk.

This strategy works on fifteen-minute and thirty-minute time intervals. It uses the following indicators:

• HeikenAshiMA, which, depending on the direction of the trend, can change the color of the bars on the price chart.
• Moving Average (EMA) with a period of 5, with exponential method, applicable to close and painted white.
• Moving Average (EMA) with a period of 12, with an exponential method, applicable to open and colored red.
• PriceChannelStop, which, depending on the direction of the trend, can change its color.
• Moving average (LWMA) with a period of 55, with a linear-weighted method and painted in yellow.

Example: opening a position on buy (or buying). To do this, it is necessary that the color of the bars turns blue with HeikenAshiMA. Further, it is necessary to intersect two moving averages with periods of 5 and 12. At the same time, the white indicator should be above red, and the price bar is fixed on the price chart and is above the cross of the removals. In this case PriceChannelStop should be located below the blue bars and be green. Operations to sell (or sale) are opened in the same pattern, only vice versa.

The indicator with the slowdown of LWMA in this strategy is the determinant of the trend that dominates the chart in the necessary time period for trades. Stop loss is set 20 points below the sliding red color, sometimes taken with a margin of 2-3 points. Take-profit is also set at 20 minimum price deviations, perhaps slightly higher, it all depends on the chosen tactics of the trader.

Trading strategy "Traffic Light"

If we talk about whether there are the most profitable Forex trading strategies , then this strategy fully meets this requirement. It is not complicated by a huge number of different indicators, it is applied, as a rule, only in the hour period, and with its help it is possible to carry out trades both inside the day and in the medium term.

Within its framework, indicators are used:

• Average moving (MA) with a period of 120, a simple method that applies to closed prices (close) and with a red style.
• Average moving (MA) with a period of 55, a simple method, applicable to closed prices (close) and with a yellow style.
• Average moving (MA) with a period of 5, an exponential method, applicable to closed prices (close) and with a green style.
• Average moving (MA) with a period of 24, an exponential method applicable to high (high) and low prices (low) and with a blue style.
• Oscillator MACD with periods of 18, 24 and 52.

For example, to open a buy position, it is necessary that the moving averages be aligned according to the sequence of colors in the traffic light (either red, yellow, green, or green, yellow, red). And the blue histogram of the MACD oscillator should be above the red moving average, which is the signal line. To open a position for sale, the opposite is true.

This strategy works only in a trend. In flat all the skaters are in the crosshair, and such signals are not taken into account, ignored. Accordingly, trade is not carried out. The stops are set at the rate of 5% of the deposit amount, and the profit can be more than twice.

Scalping

This term originated from the verb "scalp", meaning scalp removal from the scalp. In the currency market, the "head" is the local and daily extremes, from which the profit is formed.

If you take into account all profitable Forex strategies, then this is the most difficult in terms of technical and emotional state of the trader. When using this system, one must have the ability to make a quick decision in stressful situations, follow the psychology of the market and have a tough self-control. Important here is the principle of work: input, quick profit, timely exit.

The best profitable scalping strategies of Forex have huge potential of forecasted profit. As a rule, stops are not set here due to the fact that loss-making transactions are identified and closed almost immediately after their opening.

Often, trade takes place within a day with the use of breakdowns of the daily high and low. There is also a breakdown of the trading session. Scalping tactics do not involve the use of technical indicators, but they can be set to determine the direction of movement or to better understand the price schedule. Currency charts are constructed on preferably short time intervals (M5, M15, M30).

Considering many forex strategies - profitable, daytime - among them one can distinguish pipsing and scalping, as the most effective and risk-free trading methods.

Strategy "Quiet positional"

This is one of the simplest trend strategies, based on two indicators:

• A simple moving average (SMA) with a period of 21, applicable to closed prices.
• Stochastic oscillator with fast - to 5%, slow - D 3% periods and with deceleration - 3.

The daily time period is used. The signal to open positions to buy is the placement of the price chart above the moving average, and vice versa for transactions for sale. In this case, the oscillator should give the filter signal, that is, there should be a line crossing either from the top to the bottom, which is a signal to buy, or from the bottom up - for sale.

To open an operation, you must have the following criteria:

1. Setap or two close to moving average bars or candles, which should be located on one side of the middle line. But the candles can be located on the opposite side of each other. For example, the body is on one side of the middle line, and its minimum or maximum is where the second candle of the setup is.
2. Trigger, that is, the closing of the current day is below the minimum value of the previous price for short positions, and for long ones - above the maximum mark.
3. The resolving signal, which gives a stochastic oscillator.

Simple Active Strategy

It is based on graphic patterns that are used in conjunction with horizontal levels. It differs in that technical indicators are not used here.

Strategy "Ruler"

It is carried out once a day in the daytime period. Moving averages with parameters 10 and 200 can be used, as well as plotting horizontal lines on the graph. The signal to open positions will be repulsion from these lines. Bounce off the support level - a signal to buy, from resistance - to sell.

The 7 Strategy

A very profitable Forex strategy can rightfully be represented by this channel trading tactics. Its possible profit may exceed the loss of 3 or even 5 times. This system is operated using moving averages (EMA) with a period of 5 with the closing of low (Low) and high (High) prices. As a result, a price channel is formed, through which the open positions filter takes place. For short positions it is necessary that the black candle be closed inside the price channel, while its opening should be beyond its limits. For long positions, the closing of the white candle should also be carried out inside the canal, and its opening should be below its boundary. If an opposite signal occurs, you must close all positions and exit the market.

The most profitable strategy

All the above tactics and methods of trading are treated as the most profitable Forex strategy, but it all depends on the trader's preferences. To do this, you need to determine the exact trading time, a more active and less aggressive session, and understand which indicators are more efficient and effective. If these and many other conditions are met, it means that the most profitable Forex strategy has been developed, which is individual for each individual master or beginner speculator.

When choosing and forming a trading strategy, an intuitive approach should be used, while working with its use there should be comfort and certain confidence in making a profit.

Ideal strategy

In the Forex market, a super-profitable strategy can be created by each trader, for which it will be quite profitable and reliable. There is a certain truth that the ideal strategy is one that is created taking into account the individual characteristics of the trader's development of the master, his knowledge, skills and the stability of his nervous system.

All profitable Forex strategies must necessarily be tested by the trader to determine the most suitable and the most secure in terms of deposit.