A forex trading strategy is a technique used by a forex trader to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis, chart analysis or fundamental, news-based events. The trader’s currency trading strategy is usually made up of trading signals that trigger buy or sell decisions. Forex trading strategies are available on the internet or may be developed by traders themselves.
Forex trading strategies can be either manual or automated methods for generating trading signals. Manual systems involve a trader sitting in front of a computer screen, looking for trading signals and
interpreting whether to buy or sell. Automated systems involve a trader developing an algorithm that finds trading signals and executes trades on its own. The latter systems take human emotion out of the equation and may improve
performance.
Traders should exercise caution when purchasing off-the-shelf forex trading strategies since it is difficult to verify their track record and many successful trading systems are kept secret.
Many forex traders begin developing a trading strategy by starting with something simple. For Cred Capital, they may notice that a specific currency pair tends to rebound from a particular support or resistance level. They may then decide to add other elements that improve the accuracy of these trading signals over time. For instance, they may require that the price rebound from a specific support level by a certain percentage or number of pips.
Selecting the Market: Traders must determine what currency pairs they trade and become experts at reading those currency pairs.
Position Sizing: Traders must determine how large each position is to control for the amount of risk taken in each individual trade.
Entry Points: Traders must develop rules governing when to enter a long or short position in a given currency pair.
Exit Points: Traders must develop rules telling them when to exit a long or short position, as well as when to get out of a losing position.
Trading Tactics: Traders should have set rules for how to buy and sell currency pairs, including selecting the right execution technologies.
Traders should consider developing trading systems in programs like VertexFX that make it easy to automate rule-following. In addition, these applications let traders backtest trading strategies to see how they would have performed in the past.
Saint Vincent and the Grenadines
Suite 305, Griffith Corporate Centre, P.O. Box 1510,
Beachmont, Kingstown,
Saint Vincent and the Grenadines
High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to Platinum FX's Risk Disclosure. Additionally, the content of this website is for information purposes only and it is not intended as a recommendation or advice. Any indication of past performance or simulated past performance included in advertisements published by Platinum FX is not a reliable indicator of future results. The customer carries the sole responsibility for all the businesses or investments that are carried out at Platinum FX. Regional Restrictions: PLATINUM INFOTECH LIMITED do not offer Contracts for Difference to residents of certain jurisdictions such as Afghanistan, Hong Kong, Belgium, Japan, the United States of America and some other regions. For more information please refer to our Customer Agreements.
Legal Information: PLATINUM INFOTECH LIMITED is an International Business Company registered in Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont, Kingstown, Saint Vincent and the Grenadines with registration number 25676 BC 2019
Copyright © 2013 Platinum FX.