HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

TOP 3 most profitable forex strategies


The need to have your own trading strategy is written in almost every trading manual. Firstly, the process of creating your trading scheme allows you to bring the understanding of trading to perfection. Secondly, it allows to exclude from it any accident that hides additional risk. The first trading strategies were developed in the 80s of the last century, and for that time they were advanced instruments for trading in the forex market. But since then, the pricing principle of financial instruments has undergone noticeable changes. This was mainly influenced by a significant increase in the volatility of liquid assets. Therefore, their relevance over time was diminished and now new tools are needed.

A profitable Forex strategy is a kind of instruction for a trader, helping to follow a well-defined algorithm and protect his deposit from the emotional mistakes and consequences of the unpredictability of the Forex market.

If you adhere to your forex trading strategy, you always know the answer to the question – what to do in certain circumstances of the market. You have the terms of opening of the transaction, the terms of its closure, you do not guess if the time is right or not. You do as your trading strategy tells you. This does not mean that it can not be changed. A “healthy” scheme of trading in the currency market must be constantly adjusted, it must meet the realities of the current market trends, but there should be no unreasonable arguments in it.

Types of trading strategies


Online you can find descriptions of various strategies, the use of which allegedly guarantees a monthly doubling of capital. “Break-even” strategies based on dubious trading tactics are also there in abundance. The most popular of them are the Martingale and averaging methods. The forms that a trading strategy can take can combine a variety of methods. However, there are a number of the most used options:

TOP 3 most profitable forex strategies


Scalping strategy "Bali"

This trading strategy allows trading on the H1 timeframe with a EUR / USD currency pair.

As assistants, you will need the Linear Weighted Moving Average (period - 48), Trend Envelopes_v2 (period - 2) and DSS of momentum (parameters: 18.16, 3, 8) indicators.

The yellow line on the price chart will indicate the Trend Envelopes indicator. Determine the time when the next candle closes above this line - the indicator will then be under the price of the instrument. At the same candle, the price will be at the closing of the hour above the Linear Weighted Moving Average line. The main line of the DSS of momentum indicator will be green on the chart, it should be located above the signal line. A buy order is opened when all these conditions are combined. Then you set a stop loss at 25 points, and take profit - at 50 points. For sales transactions, the same conditions are “turned over”.

Candlestick strategy “All-bank”

This profitable Forex strategy is weekly and can be used on different currency pairs. It is based on the spring principle of price movement. For trading, you only need a chart in any terminal and a W1 timeframe.

You must estimate the size of the candle bodies of different currency pairs (AUDCAD, AUDJPY, AUDUSD, EURGBP, EURJPY, GBPUSD, CHFJPY, NZDCHF, EURAUD, AUDCHF, CADCHF, EURUSD, EURCAD, GBPCHF) and choose the longest distance from the opening to the close of the candle within of the week. This pair will open a deal at the beginning of the next week.

If the candle was bearish, then the position will be long, if bull - short. Be sure to set a stop loss of 100-140 points and a take profit of 50-70 points. When the middle of the week comes, we close the order if it has not yet closed by profit or stop. After that, wait for the beginning of the week again and repeat the procedure, in no case opening the transaction at the end of the current week.

“Parabolic profit” based on the moving average

As you may have guessed, you need to set three moving averages on the chart (10, 25 and 50), as well as the Parabolic indicator. For the convenience of further actions on the analysis of the schedule, you can highlight the lines of the slide in different colors. You will need Parabolic as a moving average signal filter. If you intend to open a buy deal, first make sure that the Parabolic is at the bottom, if the position is short - the Parabolic should be at the top. So, we define the entry point by the behavior of the sliding with the parameter 10. It must cross the other two sliding - 25 and 50. If it does it from the bottom up, then it's time to open a long position (to buy). If on the contrary - sell. For a stop loss, it is better to use a trailing stop.

Characteristics of an effective Forex strategy


And finally, let's see, what makes a profitable Forex strategy different? What are its integral and mandatory characteristics? In my opinion the three most important features can be defined.

Summing Up


The problem is that for most traders, fundamental analytics is limited to working with the economic calendar. Of course, some events have a short-term impact on the value of the asset, but to predict the direction of the price impulse in this case is almost impossible. To successfully trade in the Forex market, create your own trading strategy. Get acquainted with the novelties, study ready-made trading schemes and improve your individual action plan in the market. Only in this case, the results of trading will satisfy you as much as possible. Also in the network there are often “innovative” automated trading systems based on artificial intelligence, with a profit potential of 300% per month. But such indicators of profitability are far from reality. In fact, experienced traders, when using moderate leverage, do not earn more than 20% per month on trading. This rate of return can even be called outstanding. If there really is an interest in such activities, then it is important to take this fact for granted and not to chase the recipe of super-profits, since this leads to a loss of investment.

Author: Kate Solano, Forex-Ratings.com

RELATED

Deep Dive into the SMC (Smart Money Concepts) Forex Strategy

In the vast universe of trading strategies, the SMC Forex trading strategy has emerged as a contemporary approach to price action trading. But what exactly sets it apart? Let's delve into this...

Elder's three screens strategy

As a rule, it is very difficult to analyze the market using just one indicator. However, there are many facts when different indicators used simultaneously...

Best profit taking strategies in trading

Though many traders don't know it, a profit-taking strategy is a crucial part of the trading process. Knowing when to exit a trade when in the green is one of the tougher...

Why trading strategies fail?

Imagine you've thoroughly examined a set of rules and an algorithm of actions that should lead you to a profitable trade. You make sure that every...

Three Popular Gold Trading Strategies When Trading Gold CFDs

Trading gold has long been a favored avenue for investors looking to navigate the world of commodities. The precious metal's status as a store of value has endured for centuries...

Strategies for Trading Forex CFDs

This article will explore various strategies for trading forex CFDs. Understanding these strategies will empower you to make informed trading decisions...

CFD Trading Strategies

Trading CFDs has the possibility of being rewarding, but can also be extremely risky. To get started you'll want to find a reputable broker such as OBRinvest and...

Unlocking the Potential: Navigating the Dynamics of Day Trading the EUR/USD

In the realm of financial markets, day trading is emblematic of the fluid nature of investment horizons. Among the vast array of trading instruments, the EUR/USD currency pair reigns supreme...

Commodity Channel Index Trading Strategy

A key aspect of successful trading is an effective trading strategy. Even novice traders know this. However, the development of a successful system of earnings...

Choosing the Forex strategy that is right for you

There is a variety of Forex strategies. But how can one choose among all this diversity? The trading process when working with a manual strategy is completely under the trader's control...

Crypto trading in 2023: trade crypto with a strategy

Crypto trading has had its difficulties over the last few years, and many traders are now wondering whether to trade crypto in 2023 or ever again...

FXCC: Intraday trading. Benefits and Drawbacks

Defining the term intraday trading is the concept of selling and buying stocks on the same day, just before the market’s closure. If you somehow fail to do so, the broker will ultimately square off...

Mastering the Art of Nighttime Rest: Essential Sleep Strategies for Traders

In the fast-paced world of trading, the hustle and bustle extend well beyond the closing bell. The rituals and habits you adopt at the end of the day can be pivotal determinants of your trading prowess come morning...

Maximizing Day Trading Success: Optimal Times, Strategies, And Market Insights

When it comes to day trading, simplicity can be beneficial. Spending two to three hours daily is often more advantageous for most traders in stocks...

Mastering stop loss for indices trading: 5 essential strategies

When it comes to trading indices, understanding how to use stop loss is vital to managing risk and optimizing success. Unlike other trading instruments...

How To Cut Losses Trading Cryptocurrencies

Even good trading and investment strategies can lead to portfolio losses if the basic rules of money management are neglected. In addition to the basic rules typical for investing and trading any assets...

Backtest a Trading Strategy: Can you apply it to Forex Market?

Backtesting is a way to look at how a trading plan or idea has been done in the past. A trader can either physically backtest an approach or use backtesting software...

Top 5 Successful RAMM Strategies in December

Today we’ll review the 5 best high-yield RAMM strategies in the past month. The 10YX strategy proved to be the best performing strategy in December...

The Rollercoaster of Day Trading: Navigating Financial Downfalls and Crafting Success

Day trading is a world rife with both exhilarating highs and sobering lows, embodying the essence of the classic risk-reward paradigm. Within its tumultuous landscape, tales of day traders and hedge fund maestros...

Martingale Forex Strategy

The dream of every trader is to find a strategy that guarantees if not 100% success, then at least 99.99%. Of course, at first glance it looks absolutely incredible...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.