What are the trading strategies in forex and how to use them to get forex signals… I know there are fundamental analysis, technical, and sentimental analysis, I need someone to kind explain these to me…
First of all it is important to mention that “forex signals” could have two meanings:
- signals to enter the position provided by your trading system,
- signals to enter the position or to close it provided by someone else (the most popular meaning).
As it was mentioned before, trading signal is some sort of notifications provided by your trading system informing you that there is a situation that fits your strategy rules. Each strategy has a set of rules describing each step of trading process including searching for the setup, choosing the entry point, defining the stop loss and take profit levels and reasons to close the position. These rules are based on technical and fundamental analysis (one of them or both simultaneously).
Thus, it all looks the same way:
- when you have an idea, you create a set of rules based on technical and fundamental analysis, which forms a strategy,
- when there is a situation which fits those rules, it is possible to say that you have a trading signal (entry signal in particular).
The process of transforming idea into strategy is the most complicated and requires a lot of time and efforts beause it is important to understand whether the idea itself is profitable or not. You will also have to test it to check the performance in long term perspective. The simpliest and the most efficient way to do this is to backtest it using special software like Forex Tester that conducts simulated trades using historical data and then provides the detailed report on the performance of the strategy. Then, when you know that the strategy is profitable, you will have to test it on demo to make sure it is comfortable for ou to trade using it.
By the way, the situation on the market could incur changes. If they would be substantial, the profitability of the strategy would decrease, so you will haveto make changes to make it profitable again.
I’m not trying to sound crass, but I think the BabyPips course will provide you with the necessary tools to get started. It will be well worth your time. Best of luck on the charts.
You’ll get all of the info on trading strategy by using BabyPips School even more; it’s free! Just try it!
Hey what’s bro ! I use EagleFx , they’re spread as a little high, but they always pay me on time . I been messed with hankotrader lately because they have low spread. But tbh just find a broker that works good for you. Good thing about brokers you can experiment with a lot & most of the time they’ll take a small deposit to start .also send a email or chat with them to see if they reply back in a timely manner , you want a broker who looks out for
Some traders buy signals from different groups but I always recommend traders to generate signals through market analysis.