What does a good forex trading strategy look like? Is it possible to build a perfect strategy?

What are the best forex trading strategies?

Many newbies will think that the best forex trading strategy must be very deep, complex, and able to cope with all kinds of trends**. On the contrary, the best trading strategies have one thing in common, and that is to contain only themClear simple rules。For professional players, why open the chart, ten seconds to know whether a variety can be operated currently?

Is it long or short? This quick judgment is based on simple rulesThis is the last thing you want to share with others.

What's so good about that simple rule?

1.Simple rules are easy to enforce

For example, many professional intraday trading systems use a fixed lot model, such as opening 1 lot each time, for a simple reason, because the complex position volume formula is too late to calculate, and the fixed lot mode has the advantage of execution speed and execution convenience.

2.Simple rules make it easy to test their expectations

This is also easy to understand, if a system has a rule for opening positions, then it is difficult for traders to tell which rule has a positive expectation of the system and which rule has a negative expectation of the system, and even if it can be distinguished, its verification method is time-consuming and labor-intensive.

3.Simple rules don't fall into the curve fitting trap

On the other hand, complex systems almost without exception fall into the trap of curve fitting, an overly complex system is a system with multiple degrees of freedom, rather than the embodiment of the essence of the market (the market has a high degree of randomness, this part of the randomness can not be explained), after some optimization can always appear a model with good results, but this good, limited to a certain stage of history**, and for the current transaction, can not achieve a satisfactory return.

4.Simple rules make it easy to improve

When the nature of the market changes, a simple system can quickly find rules that cannot be adapted to the new market, and later improvements become possible.

5.Simple rules make it easy to review

If there are many complex system rules, it will make it almost impossible to review, and a reviewable system process should be short and fast, so that traders can summarize and improve statistics.

Some people may say, I already have a complex trading strategy, so what should I do? The only way to do this is to find a simplified path, which is too complex and will inevitably lead to slower decision-making and even self-contradiction, that is, multiple rules fighting each other and making it impossible to make decisions.

Use non-collinear indicators, for example, ** indicators and volume indicators are non-collinear indicators.

To remove multiple collinear indicators, for example, you don't need to use ** and trend lines together for trend detection, just take one.

Remove vague and hard-to-enforce rules and replace them with quantitative and qualitative rules.

Finally, if you don't have a preliminary trading strategy, the top priority is not to start trading, but to learn systematically first, don't work behind closed doors, communicate with peers, and participate in more foreign exchange technical forums. Or enter it on iQIYI**forexabc, you can see some professional foreign exchange hand open courses, which will help you quickly build a trading system that suits you.

What are the basic trading strategies for forex trading? Here are 7 trading strategies that are summarized:

1）bladerunner

This strategy compares the current market** with the level at which the indicator is located. By observing this difference, the entry and exit points are determined for each trade. The strategy was named after the 1982 sci-fi film of the same name, Blade Runner.

The strategy is suitable for all currency pairs and timeframes and falls under the category of ** behavioral strategies;

2) Intraday Fibonacci pivot points

This strategy is used to find resistance and support points for currency pair movements, thus helping traders find entry points. The trick to using this strategy is to set the stop loss below the previous swing low or above the previous swing high;

3) Bollinger Bands**

Bollinger Bands, also known as Bollinger Bands or Bollinger Bands, are a very practical technical indicator designed according to the standard principles in statistics. To put it simply, the Bollinger Bands are a clear reflection of market volatility, and traders can identify possible support and resistance points when the Bollinger Bands are out of the channel;

4）pop‘n’stop

This strategy refers to traders who use the **self-narrow range** to break out quickly, otherwise they may miss the opportunity;

5) Breakthrough

This strategy is mainly based on the breakout exit and entry, and at the same time has certain requirements for volatility. Common breakthrough methods include breaking through the upper and lower bands of a certain channel, breaking through the highest or lowest price of a certain period of time, breaking through a set platform, etc.;

6) The four-week rule

This strategy is known as one of the simplest trading strategies. As long as the **rise exceeds the maximum in the previous four weeks**, the short position will be closed and a long position will be opened; As long as ** falls past the lowest price in the previous four weeks (according to the calendar), the long position will be closed back and a short position will be established;

7) Overbought and oversold

Overbought refers to a specific period of time that lasts, but does not experience a big one. Overselling refers to being persistent, but not experiencing a noticeable one. Because the trend cannot go all the way to the north or all the way to the south, there will eventually be a reversal at a certain node, and the same is true for the foreign exchange trend.

Overbought and oversold can sometimes provide excellent contrarian trading opportunities.

What are the basic forex trading strategies? Many foreign exchange traders feel that trading is difficult to do, the fundamental data is intricate, the foreign exchange indicators are obscure, the analysis is always not good, the transaction is always done in the wrong direction, and the first is always not as expected, which is the performance of investors who have not formed their own foreign exchange trading strategies.

Forex trading** is divided into a head-building phase, an upside phase, and a bottoming phase. The head-building stage is the later stage of the recovery stage, when the ** trend intends to push upward, but the bulls cannot break the high point of the previous wave, and finally break through the neckline downwards to achieve the head and enter the ** stage. At this stage, the medium and long-term buy orders in the early stage should be shot, and you can try to do fast-in and fast-out interval operations.

Ascending stage. When the pair breaks the neckline of the previous bottom, it signals the beginning of an upward movement, and the height of the rise is the vertical height of the previous bottom. At this stage, it is like a young man with full strength, desperately rushing forward and running far, jumping high, although there is no endurance, but when encountering hardship, as long as you take a little rest, you can start again, just like the main stage of the rise, the amplitude is large and fast, although it is not a few in a row, but it encounters the pressure of the upper gear, only a little backshift can be cleaned up and can immediately mobilize a new round of attack.

At this stage, the initial era should be the best opportunity for us to bravely chase and buy. The upward phase is also an important part of our profits**.

Bottoming stage. The exchange rate bottoming patterns usually include triple bottom, head and shoulders bottom, double bottom (W bottom) and semi-circle bottom (pot bottom). The larger the transverse construction area at the bottom, the more kinetic energy that represents the accumulation of accrual, and the greater the amplitude of the accumulation.

At this stage, you should carry out a range operation of buying low and selling high, and if you are conservative, you can abandon the profit opportunities at this stage and move to the next stage.

Foreign exchange trading has always been changing in the ups and downs, but all the trends can be classified into these four patterns, through the judgment of the current pattern to be able to reasonably speculate the direction of the market, is the basic idea of investors to do foreign exchange trading.

Hedging is possible! Related varieties to choose from!

High and low long, this is an unchanged trading strategy.

Regarding the weight of the strategy, when you are trading, you must think about a point, what is this point? If you're doing weighted opportunities, don't take a light position. For example, if you are doing an opportunity that you feel very sure of, you should not use Chengcang to do it.

For a high-weight opportunity strategy, if you don't make a matching profit, he is unreasonable. The higher the weight of the opportunity, the higher the profit we can expect to make.

What's more? If this one is cost-effective, you don't want to go to the heavy position. Another point is that if you do it cost-effective, don't **hit a point and you will come out.

Because in this case, your behavior and your thinking are completely inconsistent, and this kind of operation will eventually lose money, even if you are right this time, you will definitely lose next time, I don't know if you can understand this.

To be cost-effective, you must hold it, don't say that you just ran out of a few points of profit and you ran away. Think about it, you took such a big risk to reap such a small profit, do you think you are the right fit? Not suitable, right?

Therefore, don't be too conservative and too light on the weight, and don't do dots on the cost-effective. That's the question of some of the operating principles, and on these basic principles we don't want to make mistakes. Before making a transaction, think clearly, what exactly we want, what the expected risks and returns are, and when it comes to actual operation, just keep the plan all the time.

That's all for me on strategy weighting and cost-effectiveness. Don't make any of these mistakes again.

Is there a perfect trading strategy in forex trading? Objectively speaking, it is impossible, but relatively speaking, it can also be said that there is such a strategy, after all, even if the foreign exchange market is changing, there are rules to follow. Relatively speaking, there are many requirements for the qualities that investors should have, such as good psychological quality, quality and quantity of implementation.

A relatively perfect trading strategy, in detail, probably has the following points.

First of all, don't take any chances. Forex traders do not have to act on a possible trend, which often brings risks, and if they try to take a chance, they should also keep the risk under control.

Again, accept only the best trading opportunities: although there are many factors that contribute to success, I think this one is the most important one that separates a lot of money from a small one. Also, refuse to panic:

To a certain extent, we have to accept the notion that losses are commonplace, but usually as we start to win, previously established"Accept your losses"The mentality will start to waver, and gradually, we will start to panic. Be sure to break the pattern, though. This is important and important to remember.

No trading should come with a heavy mental baggage, and the more relaxed you are in thinking and making decisions, the less stress you will have.

Finally, be humble: conceit will only lead to losses, and if a person's mind is full of himself, he will not be able to tolerate other people's thoughts. This state of affairs is reflected in the fact that if a person is overconfident, even conceited, the person will no longer seriously study the market and will not conduct in-depth research on the symbols he holds.

Therefore, there is no such thing as an absolutely perfect trading strategy, but a forex trader can make his own trading strategy perfect. Profit for the purpose of foreign exchange trading, a trading strategy that increases profits on the premise of minimizing risks is a good strategy that is worthy of appreciation.

1. Trend breakout trading method (characterized by a low success rate, but will try to magnify the profit of profitable orders);

2. Hedging plus trading method (characterized by the need for a lot of capital to fight the market, but if there is a historical inflection point, there is a risk of destruction);

3. Grid hedging trading method (characterized by very strong profitability in consolidation, but once it enters a unilateral trend, the risk is huge);

4. Scalping method (characterized by high success rate, frequent transactions, and not much profit each time, but with reasonable stop-loss control and low transaction costs);

5. Periodic resonance trading method (characterized by general success rate, unstable profitability, and large fluctuations in funds).

Super ** trading strategy: the analysis period is mainly on the 5-minute chart, the foreign exchange profit target is generally 10-40 points, and the stop loss is generally set to half of the profit. The key reference is M10 and M60 in the ** figure.

Foreign exchange daily trading in Asia, Europe and the United States is available, and most of the transactions are concentrated in Europe and the United States. The advantage is that it is more flexible, and there is no need for long patience and waiting. The disadvantage is that the stop loss must be timely, and the transaction fee is relatively high.

Relatively speaking, the more suitable group of people is the group that has more leisurely working hours, more free time, and can access the Internet at any time.

Intraday trading strategy: The analysis period is combined with 5-minute and 30-minute charts, and the forex profit technique is generally set at 30-80 points, and the stop loss is half of the profit. Its trading group is mainly concentrated in the afternoon at 16:00 Beijing time

Between 00-24:00 in Europe and the United States. It is more suitable for ordinary white-collar workers, who have 2-3 hours at night after work, and can occasionally operate between choosing to eat, take a shower and watch TV.

The recommended currency pairs are EURUS, GBPUS, USD, USD, and the unrecommended currency pairs are crosses and USDJPY.

Swing trading strategy: the holding period is medium and long, mainly daytime. Profit targets are generally set between 80-400 points.

One side requires an amount of at least $5,000. At the same time, you can also consider the ** in the operation ***. The selected technical chart is generally a 4-hour chart or a daily chart, and the entry point refers to the 30-minute chart.

In addition to **, resistance support decomposition is to be carried out. This trading model is suitable for groups who travel a lot, or often work overtime at night, and can only operate once in a few days or even a week or two. It has the advantage of saving time and effort, and can make swing profits in an easy situation, and the disadvantage is that it requires a larger capital to maintain a lighter **.

Its *** is 1 3 -1 5 of the profit target.

For different investors, you need to combine your own actual situation, and more importantly, you need to combine your own trading style to choose a trading strategy that suits you, so as to achieve stability and profit.