Out of all the forex trading strategies out in the world which one would you rate the best? I have heard and tried several strategies but which strategy would you say is the best? Perhaps a little sharing of knowledge could be of help to one another! I trade without indicators and it seems to work out fine for me, lets discuss
Then why donât you start the ball rolling and present your ownâŠ
Thank you Manxx, you are the first to reply me and for that you deserve a great deal of decency and respect.
As I said I trade without indicators, the first thing I do is to look 
for support and resistance levels on the charts, then I mark all these levels. Preferably from the 15 minute chart up the 4hr chart. After marking all these critical areas (they serve as a guide) I look for the direction of the currency pairs, this I do also with lines that I use to mark on the charts too, this is how I find entry points and exit points.
However this might not be the best strategy in the world but it does help me understand the markets better, see breakout points and understand the markets better. So if you have any strategy that seems to work letâs share ideas so that we can all be profitable traders
Personally, I think everyone deserves that at any time any without any criteria 
I use a few MAâs, that is all. When they tell me the market is going up, I buy, when going down I sell. I exit when I feel like it or when it has reached a pre-set target.
Purely discretionary, normally on 4h-1h charts.
Thatâs it, not much use to anyone, thatâs why I donât post a journal here.
Unless you are looking for mechanical systems, any strategy will produce different results with different people. It is not the strategy that creates the success, it is the trader. People tend to ignore that.
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thank you for your reply, I assume that MA stands for - (moving average). In the past I used to use the RSI and the Stochastic strategy, it turned out to be profitable for a while until buy signals only turned out to be sell signals and some sell signals turned out to be Buys! This saddened me, until I decided to look 
clearly at the charts this is when I saw that there was something that I was missing! I started asking myself questions like - âbut who created this program that does calculations in the background of this trading platform and brings an answer in the form of a line going up or going down? To a certain degree I believe that whoever this person was was a genius! (The strategy did work for a while). To me there was still something missing in the RSI and the Stochastic strategy. My question was but why is the chart indicating that itâs time to sell when itâs not, I would have clearly followed the rules only to end up with a losing trade, this happened a month after consistent profits, lol 
I blamed the strategies and started looking at the charts, this is when I started to see that chart from the past have the tendency of repeating themselves (constantly dropping to a certain point before going back in the opposite direction or in times continuing to drop from those points). But I had to know these points! So I called a friend of mine and told him what I had seemingly discovered, he laughed and said when you teach donât teach everything that you know! - horrible right! In short he already knew this but still he used indicators??? Weird! So I marked these points and thought to give them a try! These points would dertermine wether I buy or sell
These points I call them significant points or critical points, because this is where the markets resist, support, breakout or breakdown!
From the screenshot I attached every trade them gives me clarity on my exit point and entry points, my entry and exit points are close to the lines in the screenshot! I trade from one line to the next, my stop loss is always just a few pips above or below the lines. So once my lines are in place I switch to the candle sticks and start drawing lines that show the charts direction (better safe than sorry
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Whether you use S&R lines, indicators or patterns they are all perfoming the same basic process, i.e. comparing current price with earlier prices. But there are considerable differences too.
Perhaps the biggest problem with indicators such as RSI, MACD, Stochastics, etc is that they are all calculated according to a set formula. This would be fine if markets always moved in the same fashion, with the same momentum, the same volatility, the same durations, etc - but they donât. This means they will work some of the time and fail some of the time depending on whether the market is moving in the same way as the indicator is designed to respond to.
The same applies to S and R they will form a reversal - until they donât! There are few logical reasons why a currency pair should reverse at a certain level except when a lot of TA traders are looking at the same thing. Most everyone nowadays talks of âPrice Actionâ and that means the same crowd are all identifying the same levels as you. This tends to concentrate all the stops, targets and limit entries around these levels.
This will have a short-term, self-fulfilling impact but if the underlying supply/demand in the real currencies is moving in a fundamental direction then these S/R levels will mean nothing.
But I am distracting the purpose of your thread here, so Iâll say no more. But if you think that a whole bunch of traders are suddenly going to present you with their best strategies, some of which have been developed over years of hard work, then I suspect you are going to be a little disappointed with the input.
Also, it is a strange thing to ask on a site that is designed primarily for Newbies! You may well find that other Newbies are just as keen to present their thoughts in a manner that sounds professional and convincing and tried-and-tested, but be careful, words come cheap.
Yes itâs all about the price action, I tried this strategy on a demo account before real money, I also noticed that in times prices slightly pass these points and then head back in a different direction but if you look at the price action from past charts you will see that history has a way of repeating itself I also use adopted lines for this purpose
In the screenshot there are points marked (1) and (2) at point (1) I buy because of the support on the resistance line and at point (2) i would close my position because at point 2 there is a candle stick that crossed over the diagonal uptrend line. So for me this is the strategy that Iâm currently using, at least I donât have to blame anyone for a trade that results in a loss. This allows me to take full responsibility of my trades, I also look back at every trade I make, I give myself ratings based on how I opened my trade, how I exited my trade, my mental attitude at the point of entry right to my exit point.
This might not be the best strategy and I am willing to share and learn from other traders so that we can all be better traders.
At present this is basically how I get my signals, the diagonal line just serves as a uptrend or downtrend guide, once a candle stick crosses the diagonal line I exit the trade, in times before it reaches the resistance level.
yes, most people would not be willing to share their trading systems but if there happen to be a few out there willing to share I would be grateful to have them reply to me. The whole idea is that we should never stop learning.
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âBestâ strategy is impossible to pin down, as what is good, better and best for one trader will each be meaningless or poor for another.
Iâve come to the opinion recently that trading strategies should offer the possibility of at least a 6% account increase per month. This level of profit making means doubling your account in 1 year. As the risk involved in trading is a 100% loss, then a return at least equal to the risk seems reasonable to justify taking the risk at all.
So, if you have a strategy that could wipe you out in 1 year but physically could not double your account, that would be a âbadâ strategy. Even if its profitable. While any strategy that is more likely to double your account than wipe it out in 1 year is a âgoodâ strategy.
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its a very good summary , thanks for your nice post. its really great.
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I think most people dont have a profitable strategy with a large amount of capital. If they do, I dont see why they wouldnât help.
Of course, there is no one best stategy that would be suitable for everyone. It all depends on your particular situation: financial capabilities, psychology, investment goals, the particular time you can dedicate to trading. So, it is important to evaluate all these elements to chose the strategy that would fit your needs.
The process of choosing a strategy could be time consuming and even exhausting beause you will have to proceed a wide scope of data. To accelerate the process and reduce the efforts needed you can use special backtesting software like Forex Tester to check the performance of strategies automatically. Backtesing is the process of executing simulated trades using historical data provided by brokers. In fact, backtesting is some kind of EA trading, but with existing data set. There are two main advantages of backtesting (comparing to demo testing or forward testing):
- automatization (less time and efforts needed),
- improved accuracy (utilization of one data set allows you to figure out the impact of all changes, even minor ones).
So, you can create a list of strategies that potenitally could be profitable, and then check them one by one. It is quite difficult to find profitable strategy because it is less likely that someone would share it for free. That is why you may need to compose your own strategy based on elements from several strategies.
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It is not that such traders are unwilling to help. The question is what kind of help is really needed. Any trader who has been around a while and trades profitably consistently knows that it is not enough just to grab someoneâs strategy and implement it. The help that veterans are constantly providing here on BP (and have been for years!) is guiding people towards becoming successful traders themselves - not just providing them with âa strategyâ. Here are some reasons why you wonât just get a âstrategy on a silver plateâ:
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only purely mechanical systems require no personal discretionary input. But , being entirely rule-based means they will only work in markets which are performing according to the movements the system is designed for. And even these require some individual selection input concerning position sizes, risk parameters, markets, running times, etc.
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give any strategy requiring discretionary input to 100 traders and you will get 100 different trading results. It is NOT the strategy that works - it is the trader. THIS is why the help that is constantly being provided on this site is supporting the trader on their journey and NOT just giving a freebie, make-a-million, plug-in strategy, complete with recommendations for the best beaches to trade from and offering the best piña coladas.
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it is not always a pleasant experience being veterans who occasionally do offer a strategy! It is often either ignored and met with Newbie suggestions how to improve it! Here is one redacted extract from one veteran traderâs PM:
âI spend countless hours trying to help and encourage others and for absolutely naught âŠ. I am going back to just taking it easy tradingâ
- and a simpler reason? There are very, very, few people here that have a consistently profitable strategy to offer anyway!
So rather than just endlessly seek and tweak strategies (there are thousands and thousands of them them out here on the net to choose from!) seek professionalism as a trader.
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Ya⊠Many a times, veteran will feel unappreciated. Sometimes, getting criticised even, that the strategy doesnât work, when it was the trader own discipline or ability to comprehend or execution issues.
there is anyone who got maximal profit by scalping strategy that brings profit very rapidly.
Have a look at the simple scalping strategy by ForexSignals TV on Youtube.
I discovered through my trading ups and downs that trading is all about improving and increasing in knowledge, I think every strategy has room for improvement! In times a combination of strategies or simply adopting one or two things from different strategies can in times bring improvement to your current strategy!
Itâs true when you say what works for another person might mean absolutely nothing to any other person. For example I know of a lady who uses the RSI strategy, she is really good and has the ability to scoop great profits, I introduced my strategy to her after showing her the setbacks that I encountered with the RSI and the Stochastic strategy. I told her to try my strategy on a demo account for a period of about six months before she tries to use real funds, she agreed. Iâm just a week she called me and said, 
donât share your strategy! So I asked why?? She just said that she adopted something? The resistance points. So you see, she continued to use her RSI strategy but she added resistance points as a way and means of improving her strategy. This is why sharing ideas can bring room for improvement, one does not necessarily have to abort their whole strategy but one can bend the rules for improvements sake,
You also made mention that a strategy should offer at least 6% a month! I think 
this should depend on the instruments that you trade and the risk that you take! On a daily basis (i mostly trade XAU/USD and one or two currency pairs) I target 
at least a minimum of 1% of my accounts initial (the value of my initial deposit) value and a maximum of 5% but in some occasions with the volatility of Gold and most major currency pairs I leave winning trades to take a much longer ride, I control these rides with a stop loss. Every trade I place has a stop loss, the stop point is always very close to my entry point! Resistance levels assist me in placing limit orders and instant executions with stop levels that are very close to my entry point. So far this is basically how I trade, I keep my risks as low as possible, and I place 15-45 trades a day in some instances I just scalp (like today).
Itâs true when you say trading differs from individual to individual Iâve doubled my accounts initial deposit in a month but it took time for this to happen!
This is why I would love us to share ideas on different trading strategies and systems that work for each person perhaps someone out there can learn something, adopt something, maybe even just be motivated by the fact that there is still hope, itâs all about improvement, hard work, acceptance of market outcomes wether a winning trade or a losing trade.
Trading also needs to be kept simple. With a set of rules that you follow! A strategy that ones does not understand is better of left alone, the key is knowledge and understanding of how the strategy works in detail, buying and selling should always be accompanied with valid reasons, and these reason have to have something to do with what the markets are doing in the background. I once came across a wise saying - Right thought is MASTERY, Self Control is STRENGTH and Calmness is POWER! This is so true and this has to be the attitude of every trader!
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This is so true! Most people just hear of a strategy and rush to implement it! This is so wrong, strategies are to be learnt first, tested secondly and then after a period of about 6 months then they are to be implemented after learning all the inâs and outs of the strategy, most beginner fail because of this! They adopt and implement! The key here is knowledge first knowledge!!
Yes every strategy needs to be tested! But most of all is understanding the strategy in itself
What kind of strategy that a beginner could and should use requires 6 months of learning and testing?
First of all youâll need to know what scalping is!
Scalping is the constant trading in and out of the market just to capture small profits throughout the day! Scalpers place multiple trades just for small profits, these profits can be huge daily gains when tabulated. Lolđ
today I was scalping Iâm done trading for the day, scalping is for quick small profits.
These small profits amount to a huge total, most scalpers use the minute charts they try to find high and low points in these charts and then they either buy or sell depending on their analysis. Scalping could mean quick money or quick losses
The below chart is the current GBPUSD chart I have marked the high and the low points in the chart, this is one scalping strategy, the yellow points are a scalpers selling points and the blue points are the scalpers potential buying points, this is repeated constantly taking profits from one high point to the next low point and from the next low point to the next high point! But I warn you be careful when scalping there are potential hazards when doing so, every strategy has a hazard and you have to be prepared in case thing go wrong, most scalpers make good profits but their losses can be dire! This is because they constantly trade within a channel (the two diagonal lines I drew in the marked chart above) those two diagonal lines represent the channel highs and the channel lows. So those two diagonal lines will determine wether the scalper buys or sells. The problem comes when the currency pairs trade outside of the channel, this can result in losses or you being stopped by your stop loss, however may I state that continue studying first, donât go and implement a strategy before testing it, good luck in your trading
In the chart there is also a red circle
that point indicates that the trade can easily change from a potential buy to a losing trade, so beware when scalping