Hello friends,
As a beginner, what is more profitable – to trade with one strategy on 2-3 timeframes like the 15M, 1H, 4H, or to trade 2-3 strategies on 1-2 higher timeframes like the 4H and 1D?
And by the way what professional day traders do in terms of this question?
Thanks in advance!
One strategy per time-frame.
As a beginner you should focus on one time frame.
I think it would be less confusing to stick to one strategy at a time. But that strategy may, of course, utilise multiple timeframes.
For example, one might use the daily TF to determine the underlying trend and then use the 1-hour or 4-hour TFs to look for entries in the same direction.
The principle here being that the shorter TFs improve the timing of entry and exit while the daily TF improves the probability of a decent follow-though from trading with the core trend.
Professional traders usually have many differing strategies that they use for different market conditions. Time frames would be daily, as it’s the most profitable long term.
source: my pro trader friend who manages two hedge funds and private investors with state of the art servers like Goldman Sachs uses, based in Wall Street. Nowadays he’s just determining the daily market conditions, hitting the correct strategy button, where bots select the trades, while he reads all the fundamental analysis and creating new strategies.
I asked him why he needs these servers, and he said he needs his bot to be at the front of the queue…
Hey there!
I would definitely advice on using only one strategy on multiple timeframes. I like to start with the highest timeframe there possible is! the monthly and weekly timeframes. from here I drop down to the daily/4H chart. at last I drop down to the 1H timeframe to take the entry.
Make sure you master one strategy before adding in another strategy. think of it like a restaurant, If you have a restaurant and it isn’t doing very well you wouldn’t open a second restaurant. now the same goes for trading IMO.
If you need more information on any topic trading related feel free to send me a message and check out my page!
Best of luck,
Team DecypherFX
I’d recommend reading the lesson on Multiple Time Frame Analysis.
Also, if you’re a beginner, learn one trading system first and understand the underlying concept behind it before jumping to the next system.
Once you gain experience, you’ll realize that in order to increase trading opportunities, you’ll need to learn to trade multiple asset classes (FX, crypto, equities, commodities, etc.) across multiple time horizons. Especially since all global financial markets are now interconnected.
This gives you the flexibility to trade only when favorable setups occur instead of forcing trades.
For example, if volatility is low in the FX market, there might be better opportunities in the crypto market or U.S. equities, where volatility is currently higher.
And vice versa. If market sentiment becomes extremely risk-off, then maybe taking a look at USD or JPY pairs might provide some nice setups.