When it comes to forex trading, there’s little that can be achieved without a prescribed plan of action. A lack of strategy when buying/selling currencies is equivalent to gambling – the outcome may either swing in your favor or against it; you never know. However, if you adhere to a planned strategy, you gain greater control over your performance in the market and can minimize losses to a large extent. While the internet is filled with several free trading strategies, they’re rarely tested, and there is no substantial evidence to support their reliability.
In this post, we’re giving away top five forex trading strategies that are tried and tested by experts in the field:
The Pro Trading Forex Strategy
This strategy has been around for several years but underwent a revamp in 2016. Today, it is considered one of the best in the market. It is based on studying candles and identifying the right points of entry into the trade. The exit is determined by the next pivot line using data generated in the last three days.
The Bladerunner Trade
The Bladerunner is an excellent strategy that uses price action to find entries and is suitable across all currency pairs and time frames. Pivot points, candlesticks, round numbers and support and resistance levels are employed when using this technique. No off-chart indicators are used.
The Ten Pips per Day Scalping Strategy
The idea behind this method is to restrict profits to no more than ten pips per day, thereby, accumulating profits over a period. Instead of trading heavily and risking it, this strategy slowly but steadily makes gains.
Daily Fibonacci Pivot Trade
Fibonacci pivot trades combine Fibonacci retracements with daily, monthly or even yearly pivots. In contrast, this method focuses solely on daily pivots to get trade entries. A confluence of the retracement levels with the daily central pivot is identified and based on it, the entry point is decided.
Pip Milking Online Trading Strategy
While this may not entirely be apt for beginners, it is suitable for forex traders who have considerable experience in studying charts and patterns. The process involves watching for swings. In an uptrend, traders wait for two swing highs and place a buy at the high of the first, whereas in a downtrend, two swing lows are sought, and a sell is set at the low of the first.
While these strategies are proven to work, you might need greater research to learn how to use these strategies in your trading routine. If you need additional resources to explore what forex trading is all about, then download our free eBook now to enhance your trading performance.