Top 10 Best Forex Trading Strategies that Work
If you’re in the pursuit of finding the Best Forex trading Strategy and the keys to choosing a strategy that first fits your own personality than this post is going to reveal the top 10 best Forex trading strategies that work. The best way to consistently make profits in the Forex market it completely and totally depends on you, the trader.
Unfortunately, there is no cookie-cutter strategy that is going to work for everyone as this is not a one-size-fits-all business and that’s one of the main reasons I’m going to present a variety of Forex trading strategies from where you can choose. A good strategy is one that has a decent winning percentage a good risk to reward ratio and easy to execute. There is no strategy that wins 100% of the time and that’s one of the reasons why also we need a strategy with a good RR.
Going forward, we’re going to share with you 10 Forex trading strategies that will work for many different trading styles. Each of the trading strategies has its own foundation and while some are trend trading strategies others are breakout strategies or momentum trading; short-term trading – even scalping on the 1-minute time frame; and reversal trading. So here’s the list, in no particular order, of our Best Forex Trading Strategies that actually work!
A Note on “The Best Strategy for Forex Trading” – in case you are looking for it…
It’s important to note that there is no such thing as the best Forex trading strategy. We say this now because most traders will make it their life journey to look for the best Forex trading strategy… or perhaps they think there is a holy grail in trading. The truth is all strategies will have weakness and can only be profitable in certain market conditions or when applied correctly to the prevailing market condition. So it’s really the best approach to pick a few strategies that you like and master it by knowing how to apply it to the market when the time and conditions are right.
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1. The London DayBreak Strategy – probably the Best Forex Strategy for trading the opening bell
The London DayBreak Strategy is a day trading strategy that takes advantage of the London open trading range. It’s a momentum breakout strategy that only requires up to no more than 15-minutes of your time. The London DayBreak Strategy only makes use of two simple technical indicators: the MACD which is a trend-following momentum indicator and the 50-EMA. A buy signal is generated only when we’re trading above the 50-EMA and the MACD histogram is raising above the signal line and vice versa for a sell signal. The preferred time frame for the London DayBreak Strategy is the 15-minute time frame.
2. The 1 Minute Scalping Strategy Using the CCI and Slope Indicator
If you’re a scalper trader who likes the feeling to be in and out of the market very fast than the 1-Minute scalping strategy using the CCI and the TMA Slope MT4 indicator might be a great scalping strategy to trade with. Trading with faster charts like the 1-minute time frame can be very dangerous for many traders; however, by using the TMA Slope indicator you’ll only be taking the high probability setups. The TMA Slope indicator is a complex technical indicator that can read the market conditions quite well and in this regard when we have tight range conditions it will keep you away from taking bad trades. The precision of this strategy is unmatched which is one of the benefits of trading the 1-minute chart.
The Price Action Trend MT4 indicator is a trading system that can generate profitable buy and sell signals with a high degree of accuracy. The preferred time frame for this strategy is the 5-minute chart, but it can perform even better on higher time frames. This is a very versatile strategy because it can generate trend continuation signals as well as reversal signals. If you have just started trading this strategy is very easy to follow as you only have to buy when a green arrow appears on the chart and sell when a red arrow appears on the chart.
The Stretch Breakout Channel strategy is a scalping strategy designed for the short-term trader that wants to take advantage of the usual breakout move that happens during the London and New York session. The strategy uses the power of the momentum to determine whether a rally has behind real buying pressure or whether a sell-off has behind real selling pressure. If you’re tired of the false moves around the openings of the major trading sessions, this is a pretty good strategy. The Stretch Breakout Channel MT4 indicator can also be used independently to trail your stop loss and can be a great tool to be incorporated into your personal trading strategy.
The USDCAD is one of the most traded currency pair and certainly the price action is much easier to be read. The USDCAD Trend Indicator is a trend following strategy designed to generate buy and sell signal. The USDCAD Trend strategy is constructed based on the CCI indicator, but it’s a much more complex and versatile version. If you’re having problems with not knowing where to buy or sell and more importantly, where to place your protective stop loss or where to take your profits than the USDCAD Trend strategy is very intuitive and easy to follow strategy. This strategy potentially can generate for you more than 5000 pips per month when executed correctly.
If you’re afraid of a sudden change in the market trend and you’re having a problem identifying when the market is about to top or bottom than the PipBoxer Strategy is the right strategy for you. This is a reversal strategy that uses an improved version of the Stochastic Oscillator or the RSI indicator. The PipBoxer indicator will provide you with very accurate overbought and oversold levels in the market. The PipBoxer MT4 strategy utilizes multiple time frame analysis in order to determine the most accurate reversal signals. This technical indicator is easy to read and unlike any other oscillators, it gives less false signals.
The MTF Alligator T3 is an exceptional crossover system and if you’re a fan of the EMA crossover strategies then this strategy is for you. This is a trend reversal strategy as well as a trend-following strategy because it predicts the shift in the current trend as well as it will determine the strength of the current trend. The Alligator indicator and is an aggregator of 6 moving averages constructed with certain parameters that will help you determine and control the direction and the trend force.
Range trading can be one of the most frustrating things you’ll ever face in your trading career because of the many false breakouts. The Range Scalping Strategy is a very easy strategy that will help you take advantage of the market’s range. The Forex market as a whole spends more than 70% of the time in consolidation and you really need an adequate strategy for this specific trading environment. Within a trading range, you can draw trendlines and often times these trendlines are very good triggers for getting into a range trade. The premise behind this strategy is that once a breakout of these intra-range trendlines occurs this is indicative of a shift in momentum and the probabilities of a reversal increases.
Trading support and resistance is one of the most popular forms of trading, however, because of the different market forces that drive price trading based on static support and resistance can be a bad strategy. The Fractal Channel MT4 indicator will enhance your trading experience by generating dynamic support and resistance levels in real time. The support and resistance levels are very accurate. The Fractal Channel MT4 indicator is a universal indicator that can be used on any time frame and on any currency pair. We only want to enter the market at extreme levels because that’s when the odds of winning are greater and in this regard, we’re going to enter only when we see a breakout above/below the Fractal Channel.
If you want to follow the steps of the most successful traders in the world than the Turtle Trading Strategy is one of the most recognized strategies that used to produce hundreds of millions of dollars in profits. The Turtle system is straightforward and a long signal is triggered once the currency pair breaks to a new 20-day high while a short signal is triggered once the currency pairs break to a new 20-day low. The only disadvantage is that the turtle strategy has a very low winning percentage and it requires a very high level of discipline in taking all the signals because you’ll never know which one of the breakouts will be the catalysts for a long-term trend development.
The Top 10 Best Forex Trading Strategies that Work
If you’re constantly searching for the Holy Grail or the ultimate system that just never lose, I hope that by now you realized that there is no perfect system. Realistically, as a trader you need to accept that the markets are changing all of the time, it’s never the same. That’s one of the reasons why you need a strategy that fits into each different type of market environment. If you’re trading using a trend-following strategy in a market that consolidates, then you’re going to get burned out. Hopefully, my top 10 best Forex strategies described above, which are designed to work in a variety of market environments will be your new “holy grail” strategy. If you like this post, then you will like another post we just made… The Top 20 Forex Trading Strategies.