No matter your style of trade, there is always a forex trading strategy suitable for your trading style. A trading style that is most suitable for a fulltime trader may not work the best in a part time trading scenario. To succeed as a forex trader, you must have a trading strategy that is suitable for your style of trade. Your trading strategy as a part-time trader should be able to help you catch up on those missed moments which could make significant impacts to your trade success. You don’t have to stick tenaciously to a particular strategy if it no longer works for you. While you need to have a trading strategy, you need to keep updating and tweaking nit to suit the trading environment and ensure your success.
You need to do this with caution, however. It is possible to leave a great trading strategy and be pursuing new ones to suit your trading psychology which could make you to lose the good one you already have with you.
In this article, we would talk about three great forex trading strategies that are most frequently ignored and underutilized. Although they may be far from the popular ones you know, they can help you to make cool money while trading forex.
These strategies have been tested on long trading time frames and found to be profitable. However, just as you would for any new trading strategy, do not trade live with them until you have backtested them or trade them with a demo account to ascertain their level of success.
1. 40 Pips Pull back Trading Systems for Scalpers
The 40 pips pull back trading strategy is a very simple technical strategy. If there is any significant opposite pair on Forex price action of roughly 40 pips in any direction from the market day opening, you can merely trade with the opposite direction that would mostly give you a minimum of 15 to 20 pips many times. The rationality behind the trading strategy is simple, you are aware that the market won’t possibly move in a single direction. It constantly rises and falls while all you do as a trader is merely to catch up with the other side of the price action.
2. Placing a buy order above the moving average and a Sell order Below the Moving Average Strategy
Basically, all forex traders are aware of what the moving average means. However, different traders have unique and different ways of trading with moving averages. This strategy is yet another great and success way of trading forex with a moving average. To trade with this strategy, affix the moving average indicator to the chart while setting it with these presets: (MA method: Simple) (Apply to: Close) (Period: 34)
With the above presets, any time the candle closes entirely above or below the moving average without touching it and also when the high or low of the candle does not come into contact with the moving average; you can place your trade order using this trading strategy.
When the candle is on top of the moving average; place a buy order.
When the candle is underneath the moving average; place a sell order.
To trade with this strategy it is recommended you trade with 15 min chart and higher time frame.
- Take Profit (TP) you can roughly 10 pips from 15 min chart signal and 20 pips with a 30 min chart indicator. Test a few back trades to get a proper idea about it.
- The Stop Loss (SL) ought to be opposite to the trade. To place a Buy Order, sell would be the stop loss and to place a Sell Order, buy would serve as the stop loss.
3. Three Day Average Fibonacci Forex Trading Strategy
This forex trading strategy is a bit more complicated than the first two. However, it is a great forex trading strategy. The details of this strategy are beyond the scope of this article but suffice to say it is one of the great forex trading strategies that are frequently ignored and underutilized.