Best Strategy For Forex

Hello you very intelligent and amazing people. I do hope you are doing well and you are having a lovely day.

I have been experimenting in a demo account with lots of different strategies for trading forex. I am using the strategy that once an uptrend has been identified such as price above the 50EMA and 20EMA is above the 50EMA i am taking this as a positive indicator of an uptrend. Further checking the sentiment of the particular currency and any political issues. I kindly wondered please what strategy you are having the most success with trading Forex please, if anyone could kindly share their trading strategy i would be forever grateful? Thank you very much for any advice you can kindly give.

Wishing you a wonderful day and i very much hope that your trading continues to be a massive success. Take care.

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Hi Robert

Welcome to the forum. I’m currently doing a personal challenge which is also using the EMA50 but incorporating the EMA14 and EMA7. I’m logging my progress on this thread:


that’s a “trend determination method,” Robert (and a perfectly good and valid one, particularly when simultaneously applied to multiple timeframes), but it isn’t a “trading strategy”

hundreds of members have done so, here:-

Hi @robertbanking what do you understand by “best strategy for forex”? Regards Greg

Thank you very much for your response Pauley1, i do very much appreciate your response very much.

I have reviewed your post $10,000 Demo Account Challenge and i truly hope your trading success continues. I have reviewed all your posts in this thread and your trades seem very much well planned out. Can i kindly ask once you are confident that your trading plan works, after a month, if you had the funds could you try risk say for instance $5000 on a trade please, with the same level of stop losses for instance please? If you kindly had time to get back to me i would be forever grateful.

I am finding the different trading styles very interesting and its nice you have been so open to how you structure your trades. I think your thread will be exceptionally helpful for many new traders. I do hope everything continues to go well for you Pauley1 and i wish you all the very best.

Risking $5,000 would be a huge risk and not a risk I would take, not even on my demo account. $5,000 would be 50% of my account! Your risk management strategy should be to risk small amount per transaction. Up until now on this experiment I’ve only been risking between 1 to 2% per trade, which is the accepted normal risk for traders. However, since I’ve deployed my trading robot (EA) I’ve upped my risk to 5%, which is a huge risk most traders would avoid, but I want to see how the robot get’s on.

Risking $5,000 would be classed as gambling rather than trading. If you’re going to gamble you need to be happy to loss such a large amount as you will probably loss.

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according to me before make sure a best trading strategy traders need a powerful money management , otherwise any kind of strategy can be useless.

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Thank you very much for your response Pauley1, your reply i am very grateful for, this makes alot of sense.

Yes i truly understand you, as no trades no matter how good the strategy are 100% successful, so you need to ensure you do not get completely wiped out. I understand the 1% - 2% risk per trade that makes alot of sense. Thank you very much for sharing this. I kindly wondered please if you would share more information regarding the technical indicators for the strategy you are using please and how you judge your stop losses please? I really would like to learn your strategy and practice in a demo account also, if you would be so kind to help me out i would be forever grateful for your time and support.

Sending you lots of good wishes Pauley1 and i do hope your trading plan continues to go well for you. Have a wonderful day and take care.

Hey Robert

I hope you’re well today.

The strategy I’ve built into my EA is relying on various moving averages on three different time charts. The concept is to find the trend, confirm the trend and then to trade the trend. I set my stop loss at 150 pips and my take profit at 100 pips, and also have a setting to close the trade at the end of each day if it’s in profit. I set the stop loss at 150 pips as it’s rare the EURUSD will hit that within the trading day so I’ve given myself tons of breathing room. If you go to my ‘$10,000 Demo Account Challenge’ thread I explain the concept at the beginning. However, as with most strategies it’s been tweaked along the way.

Also, you need to take into account that the most important part of any strategy is the person deploying the strategy. So just because you can copy someone else’s strategy it doesn’t mean you will get the same results as you will be deploying it differently. My advice is to take someone’s concept and change it to suit your trading style and then spend time back testing and tweaking it until it works for you. Also, try to keep it simple, a lot of people like to over complicate strategies using millions of different indicators which are not necessary. The more moving parts the more likely it will break!

Maybe also have a look at some of the trading system articles listed here on Babypips to get some inspiration and ideas:

Trading System Articles -

you can search internet for that but i think you have to get the answer
i learned from this forum that your strategy must be same with what you need
for example i cant trade all day
now i am working a strategy that can be good for i want
i think you have to do it yourself and think about your needs

Trading strategies can be diverse and highly personal, often tailored to individual risk tolerance, capital availability, and time commitment. Here are some commonly used strategies:

Price Action Trading: This strategy relies on the analysis of historical price movements to predict future price action. Traders look for patterns, trends, or anomalies in the market that may signal an opportunity to buy or sell.

Swing Trading: This approach attempts to capture gains in a currency pair within an overnight hold to several weeks. Traders look for currencies that are set to make a significant move and try to capture a portion of that move.

Scalping: This is a very active strategy, where traders aim to take advantage of small price fluctuations to create profits over a large number of trades.

Carry Trade: Traders go long on a high-interest-rate currency and short on a low-interest-rate currency. The difference in rates can provide a profit.

News Trading: Economic and political news and data releases can cause large movements in forex markets. Traders position themselves ahead of news to profit from these moves.

Trend Trading: This strategy assumes that the current direction of the currency pair will continue. Traders look for indicators of a trend and trade in that direction.

Breakout Trading: Traders look for price breakouts, where the price moves above a resistance level or below a support level. Traders then trade in the direction of the breakout.

As for your current strategy, using EMAs as a trend identification tool is a common practice. Do keep in mind that no strategy is foolproof, and that all trading involves risk. Always backtest your strategies using historical data and start trading them in a demo account before going live. It’s also important to use proper risk management techniques, such as setting stop losses and not risking too much of your account on any single trade.

Ultimately, the most successful trading strategy depends on the trader’s personal preferences, risk tolerance, knowledge, and understanding of the forex market. Please consult with a financial advisor or a professional trader before making any decisions.