Today, with the growth of technology and financial markets becoming a popular way of earning money, transactions in financial markets, especially digital currencies and forex, have attracted the attention of many people. One of these popular markets, which is currently ranked as the largest financial market, is the global Forex market. Forex is actually a market that allows users to trade native and modern currencies. In other words, the forex market is for fiat currencies of different countries. Of course, as you know, investing in financial markets, especially forex, requires skill and experience, and more importantly, it requires a useful and profitable strategy.
In this article, we intend to provide you with the most accurate forex strategy, the simplest forex strategy and the best forex strategy and introduce you to how to download the forex strategy; Stay with us.
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What is a forex trading strategy?
In its broadest sense, strategy is a tool that makes it easier for people to achieve goals. Now, when the trading strategy or trading strategy is used in the financial markets, it is mentioned in the sense of tactics and programming. In fact, the time it takes for a trader to choose a currency pair and find the time to enter and exit it is called a trading strategy. In simpler language, the forex strategy helps traders to predict the future state of the market by analyzing the market and thus greatly reduce the risk of their transactions. Technical and fundamental analyzes are clear examples of trading strategies. To learn, you can read the technical analysis training article and the differences between technical and fundamental analysis.
What is the best forex trading strategy?
So far, various strategies have been created by great teachers, which sometimes have increased the profitability several times; But what is the most accurate forex strategy? As mentioned in the previous articles, the trading strategy completely depends on the trader’s own conditions, and it is definitely not possible to use one strategy for all trading methods. It is better to know that the advice that most successful traders and investors have given in their books is to try to use several strategies to start your trades instead of using one strategy and do not rely on one strategy.
Keep in mind that you need to consider several factors to choose the best forex strategy. For example, before using the strategy, you must determine the purpose and source of your trade. In the following, we have provided you with 8 of the most profitable forex strategies to make it easier for you to choose the best forex strategy and how to download the forex strategy.
What does having a strategy help us?
There are successful traders who have a strategy before starting the financial markets, especially forex. These people know how much they will buy and how much of the asset they want to sell. Even before entering the market, they have calculated their profit and loss from the market. Now if you are one of these people, you will definitely get a lot of wealth in a very short period of time. Of course, profiting from this market also depends on your type of strategy; Because if you don’t have a good strategy, you won’t earn much. Therefore, we suggest that you buy Mohammad Famurian’s trading strategy course so that you can easily make a strategy for yourself and earn money from this market.
Types of forex strategies
In the following, we will introduce you to the types of forex trading strategies; Note that in this section you can choose the best and simplest forex strategy by comparing the duration of the transaction, the ratio of risk to the reward of the transaction, etc.
Trading strategy with price action in forex
Simply put, price action is a trading strategy that allows traders in the financial markets, especially the digital currency market, to read the market and make subjective trading decisions based on recent and actual price movements. Traders can use price action in forex to make trades or even use price action as a separate indicator in their trades. Normally, fundamental analysis is rarely used in price action strategies in forex; But you can use as a proof factor by combining several different economic events. The types of price action methods that can be used in the forex market are:
- Smart Money
- ICT price action
- Price action RTM
- Price action supply and demand
- Price Action El Brooks
You can use all of the above items in your transactions, which is our suggestion for Price Action Smart Money. Price Action Smart Money is very suitable for people who intend to make a lot of profit in the financial markets. The percentage of traders’ losses using this price action is almost zero, and traders’ losses are not visible in high and even low profits. You can buy this training course from the Famurian website through the link below.
Buy Smart Money training course
Don’t miss this article: Comparison of different price action methods
| Trading duration in price action trading strategy: | You will be able to make your trades using the price action strategy in the short, medium and long term. |
| Entry and exit points in the price action strategy: | There are methods to determine entry and exit points in price action trading such as Fibonacci retracement, candle shadow, trend detection, oscillators and indicators. |
Trading strategy in suffering areas
This strategy is one of the most profitable forex strategies that allows users to easily identify support and resistance points. After recognizing and identifying the mentioned levels, transactions are made in the same range (around). Note that when there is no significant volatility or clear trend in the global forex market, using the trading strategy in the suffering zones can be very efficient. The main and best tool for using this strategy is technical analysis.
| Duration of trading in trading strategy in suffering areas: | As you know, in this strategy, you can trade in any time frame. Note that it is better to exit the trade when the resistance lines are broken. |
| Advantages and disadvantages of trading strategy in suffering areas: | One of the most important features of this strategy is to create many opportunities for the trader. Also, the favorable risk-reward ratio in this strategy is another one of its advantages. The need for high skill in performing technical analysis and long-term investments can be seen as one of the main disadvantages of this strategy. |
Trend oriented Forex trading strategy
Undoubtedly, the trend-based trading strategy can be called the simplest forex strategy. Due to the ease of this trading strategy, it has attracted the attention of many traders and many people are currently using this strategy. It is better to know that traders in this strategy can use directional montum to increase their profit rate.
| Duration of trading in the trend-oriented trading strategy: | Traders can use this strategy for medium and long term trading. Keep in mind, price action and time frame are usually used in this strategy. |
| Advantages and disadvantages of trend-oriented trading strategy: | This strategy also provides countless opportunities for traders and its risk-to-reward ratio is very favorable; But this strategy requires familiarity with technical analysis and is not suitable for all people. |
position trading strategy
Another one of the most accurate forex strategies is the position trading strategy, which is usually done in the long term and, unlike the previous cases, focuses a lot on fundamental factors; Of course, it is better to know that some technical analysis methods are also used in this strategy, including the Elliott wave theory.
| Trading duration in position trading strategy: | The important thing to know about this strategy is that the duration of such transactions should be long. This period of time may sometimes take weeks, months or years. |
| Advantages and disadvantages of position trading strategy: | One of the biggest and most important features of this strategy is that it requires minimal time investment for traders to start trading using this strategy, and the risk ratio of trading in this strategy is very favorable. But like other mentioned strategies, this strategy is not perfect. One of the biggest disadvantages of this forex strategy is the strong need to acquire skills in technical and fundamental analysis. |
Daily trading strategy
As mentioned in the trading strategy course (those interested can refer to the mentioned link to buy forex strategy), one of the most accurate trading strategies in the financial markets is the daily trading strategy. With the help of this method, traders can open several trades in a day. Note that this strategy is actually a short-term trading strategy and all its positions will be closed at the end of the day.
| Trading duration in daily trading strategy: | Trades created using this strategy are closed at the end of the same day. The duration of trading with this strategy is between a few minutes to a few hours a day. |
| Advantages and disadvantages of day trading strategy: | Average risk-to-reward ratio and the possibility of opening a large number of trades per day are the most important advantages of the day trading strategy. Also, the need for very high skill and high time investment is one of the disadvantages of this forex strategy. |
Scalping strategy
In other words, making frequent and back-to-back transactions for receiving small profits is called volatility or scalping. In this way, the trader can open and close frequent trades during the day and earn a small profit in return. To use this strategy, you can use two manual methods and using an algorithm with a predetermined pattern.
| Trading duration in scalping strategy: | This strategy is another short-term strategy in which the duration of a transaction is between 1 and 30 minutes and brings the minimum amount of profit. |
| Advantages and disadvantages of scalping strategy: | The number of opening and closing transactions with the help of this strategy is more than all the mentioned forex strategies. The weak risk-to-reward ratio and the strong need to acquire skills in technical analysis are obvious disadvantages of this forex strategy. |
Swing trading strategy
This strategy is a combination of range markets and trend markets. In fact, a trader who uses this strategy, in addition to receiving profit from trending markets, also gains from suffering markets. In order to enter into transactions in these mentioned markets, you must first determine the price ceilings and floors.
| Trading duration in swing trading strategy: | Another medium-term strategy in forex is the swing trading strategy, and traders can keep their positions open for a few hours to a few days. |
| Advantages and disadvantages of swing trading strategy: | The average risk-to-reward ratio and the opportunity to create a large number of transactions are the most important advantages of this forex strategy. But like the other mentioned strategies, you should have a lot of information in the field of technical analysis and increase your time investment to a great extent. |
Transfer trading strategy
The way this strategy works is that the trader must first borrow a currency with a low rate and invest it in a currency with a higher interest rate to achieve a positive profit.
| Duration of trading in the transfer trading strategy: | Trades with the help of this strategy may be medium-term or long-term depending on the conditions. |
| Advantages and disadvantages of transfer trading strategy: | Average risk-to-reward ratio and the need for shorter time are the salient features of this strategy. Creating fewer trading opportunities in this strategy is one of its main disadvantages. |
last word
As it was said at the beginning of the forex strategy training, all the strategies in the financial markets, especially the digital currency and forex market, may work very well according to the conditions of people, or even vice versa! It is better to measure your situation before buying a forex strategy and choose the right strategy for it. Also, be careful that sometimes using one strategy alone is not the answer, and it is better to get help from several strategies in doing your trading.
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