In today's trading on the currency market traders use a variety of types of Forex trading strategies that can vary in time trading, used tools, the level of risk, as well as the trend. Each strategy has its own characteristics, is suitable for a particular trading style, it suggests the need for some or other trading conditions.
Talking about the types of strategies with respect to time, allocate such as: long-term, medium-term, intraday, short-term, shortrange, Scalping, pips. Longer strategies are considered less profitable, but involve risks and much less, require less psychological stress, a greater ratio of Deposit and Margin.
The long-term strategy called when a trader holds a position open for a long time (from a couple of days to a month or more). This is the least risky of the system that do not require the adoption of instant solutions, with low psychological stress. But they require a large deposit, which will be at least 5-10 times higher than the Margin (the amount which is necessary to open, maintain position).
Medium systems operate from 1 day to a week. They are characterized by the same properties as for the long-term, but here it is necessary to wait less. Intraday strategies involve conducting a transaction within a single trading day. The system is quite risky, as the outcome is influenced by market noise. Such trading allows a trader to follow the movement of prices, it is psychologically less stressful than Scalping, for example.
Speaking about the kinds of strategies that pay great attention to short-term systems. Duration of transactions in this case is from 1 hour to a day. This is potentially a highly profitable strategy, but they require a lot of experience. The advantage is that there is no risk of unexpected price changes, when the trader is not on the market, net - large indirect costs (spreads, commissions, services); considerable risk of short-term value fluctuations, the need for continuous focusing on a chart control.
Shortrange strategies are most attractive to newcomers, but they can quickly lead to loss of all funds. Working with such a system requires a great deal of psychological stress, gives you the opportunity to earn a small amount of points, but you can lose a lot more.
Scalping - a complex type of trade that requires great skill and a nice understanding of the market. Scalping involves making a profit in the minimum time spent in the position. Must be able to accurately enter the position, ensure good communication, the trader exits the position as soon as received profit at a rate of a few points. With such a trade necessarily need to remember about money management that will help to avoid losses.
Scalping Forex strategy - a high-yield systems that involve the commission of a huge number of transactions in order to make a profit from the minimum value of the currency fluctuations. A trader makes an unlimited number of transactions for a minimum period.
Systems are divided on the tools that are used. Indicator Strategy - a system that is based on the use of standard graphic indicators. Ideally suited for traders who rely on technical analysis system available to all in the trading terminal.
Bezindikatornye strategy - systems that do not use the algorithm is no standard indicators. Typically, they are based on the use of reaction rate and trader sensations on fundamental analysis, etc.
Graphic forex strategy based on the use of graphical analysis, building shapes, patterns, lines, levels, etc. Graphic sistemysravnitelno easy to use, accessible, unambiguous signals suggest for someone who knows how to "read" graphics. Simple strategy - it is a certain set of simple rules, according to which the trader is their trade.
Analytical strategy - a system based on the analysis of the currency market, prices. They enable the trader to assess both the current situation on the currency market and predict future movements. Through the use of such systems, the trader can make their own conclusions, make decisions, look for a good time to conclude the transaction on the basis of the information received.
Mechanical Forex strategy requires a clear set of rules for entering the transaction, out of them. The main advantage of such systems - the ability to fully automate the workflow. Correctly configuring the system, clearly indicating the options and settings, the trader may not take part in the trade and monitor the system. Among the few drawbacks is worth noting the lack of flexibility - the system responds only to the technical indicators, but to think for themselves can not, it can lead to difficulties in case of emergency on the market.
Quite popular are the strategies based on the use of the Martingale method. The mathematical principle of the Martingale opened French mathematician Paul Lévy. The essence of the principle lies in these rules: first performed the minimum rate; then after every loss the trader doubles the amount of the transaction, so that in case of winning cover all losses and gain additional profit.
Action doubling rate is performed as long as the trader does not receive the expected profits. Then he returns to the original amount of the transaction and continues to work. This method is considered to be a win-win, but requires the trader a very large amount of the deposit. Before the first profit increase the size of the transaction and can be hundreds or thousands of times. So before you start such a risky trade, it is necessary to get acquainted with the course Safe Forex 2.
Classics of the genre are considered to be the breakdown strategy. They work on the basis of the signals received after the breakdown of resistance or support line, price channel boundaries, minimum or maximum, differ retarded character. With these systems, you can catch the strong price movements that cover the previous failed logins. Breakout Strategy - This system, which as a signal to the trade becomes a sample of a critical price level.
Hedging strategies based on risk insurance and are considered virtually risk-free. To conduct such a trade, the trader must have a deposit of three times greater than the sum of one position. The time interval is chosen more often than the M15 or higher, the pair can be any.
Different types of strategies and risks. The system can be safe: with precise algorithms, minimum stop-loss, high profits, if the percentage exceeds the profitability rate of 50%. There are strategies with minimum risk - the risks are in the region of 50% profitable trades. Elevated risks - is the probability of losing the deposit exceeds 50%. Strategies based on the Martingale principle considered risky and violate all the rules of money management.
There are different types of strategies according to the way they use the trend. The trend strategy based on trade with the trend, which is considered another trader. It is necessary to enter into a transaction in the emergence of the trend, go when it changes. Trend strategies allow you to define the emergence of the trend, to anticipate future changes, using the trend to get a good profit.
Counter trend strategy based on search points of a trend reversal. With the proper definition of the moment the trader can take the greatest possible profit from the reverse movement. The key point in kontrrendovoy trade is to determine the trend reversal points.
There are also strategies that are used to trade in the flat - when market uncertainty condition, the lack of a trend movement. Prices are moving in a narrow range, almost horizontally. Trade in such a case is open pending orders above and below the price corridor in the flat.
In order to successfully trade the trader is desirable to explore all types of Forex trading strategies, their advantages and disadvantages, particularly to maximize the use of the chosen system to work.
