Scalping strategies on Forex Articles: 14 | Forex strategies for daily charts Articles: 13 |
Forex strategies without indicators Articles: 16 | Intraday Forex strategies Articles: 47 |
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Today, there are quite a large number of Forex 2020 strategies that are successfully used by traders in their work. We decided to make a selection of the most interesting and, naturally, profitable systems that demonstrate the diversity of tools for working in financial markets.
London Blast Strategy
The essence of this Forex strategy is that at a certain time of the day, or rather at the opening of the London session, the market usually becomes more active. At the same time, before opening this session at 11.00 Moscow time, the trader must indicate support and resistance levels.
In principle, this strategy works without indicators. But to get more accurate signals, you can use an exponential moving average with a period of 360, the Pivot Point indicator, as well as a special indicator for demonstrating time zones i-Cassier Work Time (this tool will make it much easier to find boring time on the chart).
Best Forex Strategies (FOREX)
Now we can directly move on to considering the trading strategies themselves. Don’t forget that before you put them into practice, it’s better to try them on demo accounts. Fortunately, it is now not difficult to find brokers who provide this functionality absolutely free of charge without any restrictions.
Trading strategy "Dragon" pattern
When trading with elements of technical analysis, the Dragon pattern is very common. It has its own distinctive characteristics, but in some places it is similar to a pattern called “Double Bottom”. Most often, this pattern can be found near all the highs and lows of the market. In order to open low-level transactions in relation to the expected profit, “Dragon” is simply an ideal option.
The entire process of forming a specific pattern starts from the “head”. Then the price begins to fall, which entails two “dragon legs”. The second paw indicates a possible price reversal. A remarkable sign of a reversal is an increase in the number of completed contracts that will not be late for the price reversal occurring in the market. The name of this graphic zone comes, of course, from its specific appearance. From the “dragon’s head” itself to the “hump” when forming a pattern, you can draw a trend line.
Now let's move on to the structure of this pattern:
- 1 – actually, the “dragon’s head” itself;
- 2 – “The first leg of the dragon”;
- 3 – the point is located in the range 0.38 – 0.5 from AB and is called “dragon’s hump”;
- 4 – “The second leg of the dragon”;
- 5 – Breakout point formed on the trend line;
- 6 –1.27 from CD (the first point of fixation of a certain part of the total profit);
- 7 –0.886 – 1.0 BC (the second point of fixation of some part of the total profit);
- 8 –1.38 from AB (final, third point of profit taking).
The schematic structure of the Dragon pattern is shown in the figure.
If the price closes above the trend line, this is a sure sign of a trend reversal (you will receive graphical confirmation). Another confirmation will be the price closing at the “hump” level: a swing high that has formed between the “dragon’s legs.”
A simple strategy for MACD patterns on 4H
Profitable and very simple Forex trading strategies are 4-hour charts that use MACD patterns. For this strategy the following Forex indicators are used:
Moving Averages:
- 365 EMA
- exponential moving average; - 89SMA
- simple moving average; - 200 SMA
- simple moving average; - 21EMA
- exponential moving average; - 8EMA
- exponential moving average.
We configure MACD like this:
- For fast EMA
- period 5; - For a slow EMA
- period 13; - For MACD EMA
- period 1.
Horizontal lines in the amount of 3 pieces need to be placed higher. They also need to be set below the zero mark, which is located in the MACD indicator window. It has a step of 0.0015.
Those graphical zones that the MACD indicator creates are profitable. To trade, you need to use only those trading signals that have the highest probability of generating income. Working graphic areas (patterns) are shown below:
In the patterns shown in Figures A and D, the MACD indicator has moved from the level of 0.0045. This indicates that there has been a change in trend or a correction in movement. These patterns are called countertrend.
Patterns B and C are trendy. They allow a trader to enter the market in the direction in which the trend is moving. Red circles are a signal to carry out a transaction. You need to enter the market with the opening of a new bar or candle.
Head and Shoulders chart:
Chart of the Double Top and Bottom pattern:
A signal for trend continuation is the moment during which the MACD indicator declines down to the zero level and then makes a reversal in the direction of the trend movement. At the same time, he somewhat adheres to the zero line.
Round Tops and Bottoms Pattern:
If you are trading this pattern, you should be extremely careful when placing the MACD indicator in the area of the 1st zone, where the values are 0.0000 and 0.0015 below or above zero. If the pattern has a rounding of 5 bars or higher, then this is a good signal for a trade.
Forex strategy “Lagging gold”
A new trading system for making a profit by trading the GOLD instrument. The new trading system is based on monitoring the movements of two instruments GOLD and EUR\\USD. According to observations, when the dollar moves quickly, gold follows it with some delay - sometimes up to several minutes. Well, let's use these observations...
To work on this Forex strategy, we need the MultiInstrument indicator and the MT4 trading terminal, which you can download from your Forex broker. Install the indicator in the folder Path to terminal\\experts\\indicators
simple copying. Open the terminal and open the gold chart, this instrument can be called GOLD or XAUUSD - it all depends on your broker.
So, the very meaning of the new trading system: In the short term, with a high degree of probability, gold will repeat the move of EURUSD. Moreover, it does this with some delay (sometimes up to several minutes). We look at the eurodollar on the chart with the M5 period. If the euro\\dollar has dropped sharply (more than 10 points) and gold is worth it, sell gold and watch how after some time gold catches up with the Eurobucks.
I hope the new trading system “Lagging Gold” will help you increase the profitability of your Forex transactions!
Pattern 2B as a Forex strategy
When using the 2B pattern, you can identify possible changes in the uptrend or downtrend at those moments when the price does not form new lower highs and lows.
The use of this strategy is advisable in cases where the price has formed new lows and highs. In this process, further correction occurs. The formed lows and highs will be tested after the price rollback. If testing fails, it will become clear that the previous trend has reversed. This signal indicates that a corrective movement has begun.
In pattern 2B, the tops are formed according to the following principles
: The price moves in an uptrend. It begins to create a new high, for example, in 20 bars. Next, it is corrected. It consists of 6 or 9 bars. Then this price will try to break through a new high. After these actions, it will close over him. This bar is called “breakout”.
In the event that the price closes at a level below the minimum, that is, above the top of the bar, the closure will not occur and a 2B pattern will be formed. We set take profit as a minimum near the nearest minimum, and stop loss above the maximum.
The lows in pattern 2B are formed as follows
A new minimum price is created in the Forex market. Then there is a rollback within 5-8 bars. Next, the price will attempt to update the minimum and the closing of this bar will already be below the created new minimum. This bar is called a “breakout” bar. If the price reverses and the next bar closes above the broken low, pattern 2B will be formed.
Conditions for forming a long position with pattern 2B:
- A new low price should form;
- There must be a price rollback;
- The formed bar must close below the low of bar 1;
- We make marks at the level of the maximum of bar 3 and wait for the closing of bar above 4.
Opening a position and taking profit
In the maximum zone 4 we take a long position. We take profit at the nearest local maximum. If we open a short position, then the conditions are the same, but we do everything the other way around.
Of course, you should not use the 2B pattern as the main type of signal. Since this pattern works correctly on the daily chart, and it is currently used by few people.
Forex strategy “Counter-trend”
If the price broke the trend from bottom to top and then closed above the trend line, then opening long positions from the counter trend during a downward trend will be effective. This process can be described in other words: the price passes the resistance level, goes above this level and, after a certain time, corrects to it. In this case, the resistance line turns into a support line - the optimal place for the buying process.
Additional confirmation can be obtained by plotting Fibo levels on the chart. The countertrend trading strategy makes it possible to select all false movements. This is very important because they create an illusion: You may think that the prevailing trend is changing. Thanks to this, you can also understand what is the best thing to do - wait for the moment when the picture becomes absolutely clear or enter the market immediately.
If a previously working trend was functioning as an uptrend, then the logical move would be to open a short position against the countertrend. The support line immediately becomes a resistance line after the price breaks down. This trading method has a very great effect, and is also an effective method of entering the market to sell.
Do you need to establish the effectiveness of a breakthrough? It will be easy if you use Fibonacci levels. If the upward trend turns into resistance at the exact moment when the levels of the corrective movement are near it, then the chances of concluding a successful sale transaction increase significantly. The main thing is to catch the right moment.
Forex strategy based on the Triangle pattern
Such a technical figure as the “Triangle” is found very often in the market and this strategy has been developed for its use.
Construction of a triangle
There are three types of triangles on the market -
ascending
,
descending
and
symmetrical
. To construct their minimum, it is necessary to determine four points - two maximums and two minimums. The more points are involved in constructing a figure, the more reliable it is considered.
Rising figure
The resistance line is usually located horizontally or with a slight upward slope. The support line is directed with an upward slope.
Descending figure
The support line is located horizontally or with a slight downward slope. The resistance level is directed downwards.
Symmetrical figure
The support and resistance lines are symmetrically directed towards each other.
Trading using this Forex strategy:
Entrance
The trade is entered into after the breakdown of either side of the pattern and the closing of the candle. The signal is stronger if the direction of the breakout coincides with the trend of the currency pair. The clearest signals come in the first 2/3 of the triangle. Often the breakout in the remaining 1/3 is false and it is necessary to use minimum lots.
Exit
from the position is carried out according to the target or stop order. The first target is at a distance determined by the width of the triangle. In the future, the figure may develop into a channel and it would be a good idea to draw a parallel line to support or resistance.
A stop order is placed behind the support or resistance line.
Folding Meter Pattern
The 3-stage trend line called the Folding Meter pattern is a fairly simple Forex trading strategy. It is great for all time frames and is often used on many currency pairs.
When trading the Forex market, you often need to wait for the moment when the trend begins to reverse. It is not difficult to determine when the reversal process itself begins. Using this pattern, you can enter the market already at the initial stage of the trend line reversal.
To open short positions in the Folding Meter pattern, you need to take the following steps:
- Draw a trend line (T1) at the recently formed lows;
- When an impulse has formed, draw a trend line (T2) based on the depressions that have appeared. If during the correction the price did not reach the line (T1), then it is worth drawing the third line (T3);
- The line (T3) is built when it picks up speed. At the moment the price breaks through the T3 trend line and the candle closes below the line, it is necessary to open a position on the market. A stop order is placed above the top of the upward movement, that is, the maximum. When the trend line T1 is reached, it is necessary to take profit.
The main conditions for opening a long position:
- The T1 trend line should be drawn from recent highs;
- The T2 trend line should be drawn after the trend has accelerated;
- We draw trend line T3 after the next price impulse.
At the moment when the price breaks through the T3 trend line and closes above it, it is necessary to make a buy transaction. Place a stop loss below the local minimum. At the point where the price reaches trend line T1, we take profit.
Diamond pattern forex trading strategy
The graphical model of the Diamond pattern is very difficult to find in financial markets. But there is an opportunity to make a quick profit - if the trader correctly identifies the pattern. The pattern got its name because of its specific shape – it is very reminiscent of the unique facets of the gemstone of the same name.
The Diamond pattern can be formed regardless of the time period, but there is one feature here: the larger the time frame, the stronger the signal will be. The formation of this pattern occurs either at the bottom of the trend or at its top.
The exception is a situation in which a trend line is broken. It is during the period of price movement in a passive state that the “Diamond” graphic figure is formed.
What does the Diamond pattern look like? Naturally, trading inside the Diamond pattern would not be a very good idea, so the best options for trading would be to break through the boundaries of this pattern. Using the GBPUSD(H1) currency pair as an example, we can consider an example of this pattern.
We try to make a transaction after selecting one of the options:
- above the last vertex of the figure;
- above the maximum point of the Diamond pattern;
- at the moment of breakdown of the trend line;
- on breakouts from the broken pattern line.
It is recommended to place a stop loss order at the very minimum of the Diamond pattern. It is also possible to set the value to “minimum” of graphic information.
We set the take profit at a distance that is equal to the height of the above-mentioned “Diamond Pattern” figure from its breakout point. Having reached this level, you can partially close the deal. The remaining position must be transferred to the break-even level. The opposite conditions should be applied if a short position is opened.
I recommend that you watch a video that covers the topic of Forex strategies for a 15-minute chart. Very informative and interesting.
Pitchfork Andrews Strategy
The meaning of this Forex strategy is to draw three lines on the chart in the direction of the current trend. MetaTrader terminals have a specialized indicator that automatically builds Andrews pitchforks. To do this, it is enough to mark only three points. Working with the strategy is quite simple. When the price reaches the upper line, you can open a sell trade. When the bottom line is reached, it is recommended to open a buy deal.
The center line can be used as a guide. When the price reaches it, you can close any deal. This type of Forex strategy 2020 works without the use of additional indicators.
Strategy Trading on news
Forex strategies like this can work with or without indicators. The trader opens a deal in the expectation that after the publication of this or that news, there will be a significant impulse in the market on which he can make money.
One of the variations of this Forex trading strategy is to open two transactions in the opposite direction. After the data is published, the trader monitors which direction the price chooses and closes the unprofitable trade, and continues to increase his income on a profitable one.
Spring strategy based on averaging (corrections after jumps)
For platform: Meta Trader 4 and higher For currency pairs: GBPUSD, GBPJPY, GBPCAD, EURUSD, EURGBP, EURJPY, EURAUD, EURCAD, AUDUSD, AUDNZD, AUDJPY, AUDCAD, NZDUSD, NZDCAD, USDJPY, USDCAD When to trade: from Mon, when the market will open before closing Time Frame: W1
Spring is a strategy based on the principle of natural market fluctuations. So, if a high price jump occurs, it is always followed by a smoothing or correction, almost to the initial level.
Rice. 1. Example of sharp fluctuations with smoothing
Traders who have already gained experience in Forex trading know: if the price rises for a long time, someday it will drop just as sharply, and therefore they calmly carry out the orders of their investors, because the risks will then be covered. If anything, earnings will come from the spread for a large transaction size.
The Spring strategy teaches that you can take risks, but be careful. That is, strictly carrying out currency management.
Here's how to start trading:
- On the weekend, open the charts of all working currency pairs in advance and build the W1 timeframe;
- Set the candle body indicator on each pair - for example, at least 200 points for each;
- At the start of the trading week, you need to enter a trade in the opposite direction. That is, for candles “bears” this is a buy, “bulls” - a sale;
- Set Take-Profit for each to 50 points;
- Do not specify a stop loss. Let this turn into tough management, stock up on composure!
Rice. 2. Setting the candle body size to at least 200 points
What to do if Take-Profit does not work? Repeat the bet volume and, after a hundred points, enter the trade again in the same direction. When opening the 2nd order, Take-Profit will move to the opening point of the 1st. Between -50 and +50 points the break-even trading point will appear. If the price drops to it, the profit per transaction will be 100 points.
Rice. 3. Break-even trading point
When the general Take-Profit has worked, the trades are closed. If this does not happen within 2 days, move it to the break-even trading line to reduce the loss. To avoid large losses, you should make the lot size no more than 0.01 points for every 3000 USD. currencies. In this case, you will lose no more than 20% of your funds, and the annual income can reach one hundred percent.
Price Action Strategy
Forex trading strategies based on Price Action come in a wide variety. One of the most popular is the pin bar. This method is based on searching the chart for a bar or candle with a very long shadow and a small body, as well as two neighboring bars or candles that do not go beyond the average.
The essence of this Forex trading strategy 2020 is that the subsequent candle or bar must break the high or low (depending on the position of the pin bar) and this is a signal to buy or sell.
Profitable trading strategies that your brokers are hiding from you
1. Strategy based on diversification. You enter 25-30 futures at random in different directions. When any of the futures goes in the right direction by 1-2%, immediately take profit. Use the freed up money to average out losing positions until they become profitable. Do not record losses under any circumstances. PS. I like the idea. I myself partially use it in my trading 2. Gazprom short and Sberbank long strategy. Wait until they agree on the price. PS. In my opinion, the wait will be very long, although the idea is sound. Gas reserves on Earth will last for at least 100 years, and people will always take out loans
3. Strategy based on insight. You buy oil for all your needs. Then you go to Africa or the Middle East and blow up an oil rig or oil pipeline there and record your profit. PS. The strategy is ideal, but only until the Arab Islamists capture you.
4. The grail strategy. You bet one of your friends 100 grand that he will not be able to accelerate the account from 50,000 to 200,000. Then you completely repeat his transactions. If he merges, you receive a loss on your account of 50,000, but you win the argument and take 100,000 from him. The total profit is 50,000. If he managed to accelerate to 200 pieces, then your profit will still be 150-100 = 50 pieces. In other options, the amount of profit is greater. The advantage of the strategy is that you can bet for any amount. PS. Like a grail.
5. Football fan strategy. Transactions are made immediately after football matches. You watch matches of Russian football clubs. For example, Zenit and Spartak are playing. Let's say Zenit beats Spartak 3:1 - this is a clear signal that you need to short Lukoil with the 3rd leverage and long Gazprom with the 3rd leverage. Or let’s say Dynamo beats Anzhi 1:0. This means we buy VTB without shoulders and at the same time short Uralkali without shoulders. We close deals before the start of the team’s next match. PS. The strategy is applicable only for those who are ready to short Rosseti after the defeat of CSKA in the Champions League.
6. Strategy for intraday trading in RTS futures. The strategy is based on this. that when the RTS index sometimes passes through magical levels, namely levels ending in ***300 and ***800. That is, let’s say the market is growing and you want to catch the maximum. Then, set a sell limit at 144800, and a stop loss at 144900. If the limit passes, then put a buyout at 144300. Or let’s say the market is falling and you want to catch the bottom, then place a buy order at 143300, a stop at 143200. if the deal passes , then set the closing price to 143800. With this trading method, it is important not to skip a single level. Namely, go long and short every 500 points. It turns out that the stop loss size is 100 points, and the take profit size is 500 points. As you can see, the stop loss is 5 times less than the take profit, which means that 1 good trade is enough to win back several unprofitable ones at once. PS. Personally, I often use these 2 magic levels ***300 and ***800, as you can see by reading all my trading recommendations on the smartlab. The vast majority of trading recommendations end in ***300 or ***800. The only difference is this. that I don't use my feet.
- other grail strategies
Strategy Wave Analysis
This method was developed by the famous stock market player Elliott. The essence of the Forex trading strategy using this method is to search for a wave structure consisting of five elements on the chart. Moreover, its first part will be trending, and the second part will be correctional.
Currently, a large number of traders use Forex trading strategies based on wave analysis. Several indicators have been created that outline the wave structure on the chart. However, experts in this field recommend not using such algorithms due to large errors in their work.
Moving Average Strategy
Currently, there are a large number of trading systems using moving averages. The simplest Forex trading strategies 2020 using this indicator are based on the intersection of two MAs with different periods.
The essence of this system is that it uses faster and slower moving averages. A buy signal appears when the faster one crosses the slower one from bottom to top. Accordingly, the opposite signal appears when the faster one crosses the slower one from top to bottom.
Other options for building a futures trading strategy
Sometimes experts recommend combining indicator trading strategies for futures trading with signals from pivot-point`s. As experiments show, this approach is fully justified in the currency futures market. It is in futures that reference points are even more important than indicators. The indicators themselves are relevant for identifying the most accurate time period for entering the market.
To consolidate the theoretical theses, let's consider a specific example of combining indicator trading and pivot points. In the picture below we see a 5-minute chart of the Euro, on which the well-known MACD indicator is installed. The moment of intersection of the moving lines serves as a signal to open a short or long position, respectively.
We enter buy when the fast line crosses the slow line. Of course, with a growing trend, we ignore all sell signals.
At the beginning of the trading session, the price of the Euro was 1.2640, and at the end – 1.2740. The average ATR value is approximately 100 pp. Quite good fluctuations, allowing you to significantly increase your deposit. So the pivot-points strategy can be safely combined with the MACD indicator to identify the trend.
Strategy Keltner Channel
Many profitable Forex strategies use an indicator such as the Keltner channel. It looks somewhat similar to Bollinger Bands. The indicator consists of moving averages with different periods.
You can open sell trades when the price reaches the upper range of the channel. In this case, the closing of the candle should occur exactly above the border. Therefore, selling is recommended when the price reaches the lower range of the channel. It is also important here that the candle closes below the border.
What is Forex strategy
Forex is a financial market for exchanging currencies of international importance. It is this that is the basis for carrying out various plans for foreign exchange transactions between countries. Without it, the full functioning of the economy is impossible.
Forex is often called simply a currency exchange, but this name is not correct, since it is more of an over-the-counter trading system.
It is not tied to a specific territory, it is based on virtual spaces, which makes it possible to conduct financial transactions from any continent.
The market is distinguished by relatively low requirements for the size of deposits that are necessary for trading and its launch.
Within the system, trading is referred to as trading - the implementation of which requires the presence of a currency pair (a product (one currency) and a means of payment for it (another currency).
In this case, the most common combination is the euro and dollar, denoted as EUR/USD, euros are bought/sold for dollars.
A trading strategy is a technique that allows you to properly organize market activities, eliminate a competitor from the path, and open up prospects that have appeared in a particular organization.
As a rule, developing such a system is not easy; it requires a huge amount of time and special skills . In its finished form, the created plan can easily be launched in an automated mode, which will free the trader from the need to regularly review the chart.
This makes it possible to work on the creation of other projects and reduce the trader’s time costs.
On average, transactions in the Forex market involve amounts of $100,000, which means that an ordinary person can only enter the market space with the support of a credit broker.
Such a representative will be able to lend funds to the merchant to carry out market transactions. For 1 dollar there is a transaction of 50 dollars; such restrictions apply in Russia. The 1:50 match is called margin trading.
The most profitable strategies and speculation on them have become so relevant that they take the place of permanent income in the lives of many. Its main advantage is that Forex provides complete safety for savings from depreciation.
Forex strategies are profitable and their competent implementation helps to increase a trader’s income many times over, while the figures exceed inflation itself.
The advantage of Forex is that a trader can have a chance to increase income not only when currency indicators fall, but also when they increase.
This is due to the fact that a fall in price does not mean a general destruction of the market platform, it indicates an increase in the price of another currency.
The system is available 24 hours a day in all time zones, so you can trade and make money on differences in money rates at any time of the day.
Profitable Forex strategies are the coordination of activities, the correct distribution of the trader’s resources, ensuring a long-term development prospect.
This is a formalized algorithm that determines the result for trading regardless of the outcome of events.
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Elder's Three Screen Strategy
Such profitable Forex strategies as Elder's three screens involve working with three filters on different time periods. At the same time, a transaction is opened only if all three screens indicate such an opportunity.
Each individual screen is its own technique. Among them there are both trend and counter-trend strategies. Naturally, when working with this tool, the trader uses both methods, since only this approach gives a more guaranteed and stable result.
Bill Williams Strategy
A profitable Forex strategy based on the Bill Williams system uses an indicator such as the Alligator as the main tool. It consists of three moving averages with different periods, which intersect from time to time and then diverge.
This tool allows you not only to determine the presence or absence of a trend in the market, but also its direction. The indicator has two main positions – a sleeping alligator and an opening alligator. It is within the framework of the second situation that a trend appears in the market.
Types of Forex strategies
There are many different trading strategies available for working in the Forex market, which are classified according to the following criteria:
- types of analysis;
- time;
- degree of risk;
- use of indicators;
- trading volumes;
- ways of trading.
Most often, profitable Forex strategies are based on fundamental analysis. Such developments are suitable for traders interested in medium- and long-term activities, for those who work with large sums.
Forecasts are based on fundamental analysis - this is tracking the direction of pricing policy, which focuses on news channels, sources of information, which indicate information that affects currency rates.
These include the decisions of the Central Bank and the level of unemployment in the state.
Profitable technical analysis strategies are popular among new traders; professionals are increasingly moving away from such developments.
They are based on market analysis using indicators, various methods of mathematical research of information, and candlestick patterns.
According to the modern classification, there are:
- profitable long-term forex strategies – are publicly available from several weeks to 12 months;
- medium-term algorithms - orders for them are opened for several days and closed after 2-3 weeks;
- short-term profitable Forex strategies, for which the trader opens an order for only a few hours a day, after 24 hours access is closed;
- ultra-short-term trading systems operate for no more than 15 minutes and can be closed even after 1 minute.
Long-term transactions will allow you to more transparently view the schedule of price jumps within a currency pair, but they are accompanied by the involvement of too large amounts.
Using any of the developed algorithms poses risks for the trader. Hence the concepts of conservative and aggressive trading.
The conservative subtype is cautious action, obtaining average profits with balanced risks.
Aggressive trading means saturation, activity, attracting huge resources to turnover, contacting a credit broker, and using deposit funds.
Their management must be based on special care due to the high risks. A separate group includes profitable Forex strategies with a moderate risk field.
They are governed by a balance that allows you to make more profit than with conservative trading, but at the same time maintain your deposit account and not waste it as a result of unsuccessful investments.
With the use of indicators, everything is extremely simple; the trader either uses them in the development or does without them. An indicator is a technical tool that displays downward and upward trends.
Martingale, anti-martingale, pyramiding - differ in the definition of the lot at the preparation stage, which remains fixed. The lot may change depending on the increase or minimization of the account size; this may also be indicated by other parameters.
It is worth knowing that trading methods can be manual, semi-automatic and automatic. In manual form, the trader is responsible for searching for an order and for its timely opening and closing.
In semi-automatic mechanisms, the involvement of special advisers plays a role, who inform about the need to open positions.
However, even with recommendations, no actions can be performed without the control and consent of the trader.
Profitable Forex strategies of automatic models are based on the activities of an in-system robot, the functionality of which is initially based on a well-thought-out algorithm.
When the prescribed parameters appear on the Forex horizons, the system automatically reacts to this and carries out opening/closing transactions without the participation of the trader.
The choice of the appropriate option should be based on the time frame, since users have different amounts of time.
This should also include determining the style of strategic algorithms, one of the parameters of which remains the type of analysis used. The final decision is made based on the acceptable level of risks.
Larry Williams Strategy
Finally, we offer our readers another interesting strategy for short-term trading. Larry Williams offers several techniques for working in the short term. One of them uses a simple moving average crossover. Signals appear precisely at the moment of such intersection, depending on its position in relation to the price chart.
The second technique of this famous trader is to find a specific impact day and work to break through its highs or lows. This type of strategy does not use any indicators to determine market entry points.
How to create RTS futures trading strategies
Our new article will tell you about the most interesting trading strategies for futures contracts on the RTS. Let us immediately make a remark for the dear reader - we are considering intraday trading and reviewing it in detail from all sides. Let's start the discussion. Investors and traders who are actively trading enter into transactions to buy or sell a position even if the futures price changes slightly during the trading day. A few minutes before the end of the exchange, the trader closes all his own positions, recording losses or profits.
Educational program for beginners. Active trading is identical to the concepts of intraday trading and scalping. Read more about futures and options trading below. “Scalping” is a very interesting and promising direction. During a trading day, a person makes several thousand transactions (a minimum time interval between them is required, the main thing is the speed of the transaction), which brings profit. Trading RTS futures is a very convenient and useful tool for active trading. There are several reasons for its popularity and prevalence - we will highlight them in a separate list.
- It is possible to purchase and sell a portfolio of the most liquid shares on the domestic stock market.
- The leverage ratio in relation to operations carried out with futures is 1:10.
- The RTS Index is calculated based on the value of the fifteen most liquid shares on the stock market.
- The RTS index is updated every second.
- Options and futures on the RTS are a very interesting tool for traders. Without much effort, you can profit from the decline or growth of a portfolio of the 15 most liquid shares of the stock market.
Secrets from professionals - if an investor, analyzing the situation on the market, expects the foreign exchange market to grow, he needs to buy CALL futures. If you expect the price to fall, sell your existing futures and buy Put options.
Why is buying options so attractive? By carrying out such an operation, a trader can receive almost unlimited profits (in theory). Options are even more attractive compared to futures - with the right approach, the leverage effect can be increased.
Profitable futures trading – stock hedging
As we have said before, investors who expect the stock market to fall sell futures or purchase PUT options. If losses are observed when trading on the stock market, they can be compensated for by winnings on the FORST market. In theory, if options and futures are used correctly, traders will be able to hedge the risks of the domestic stock market in full.
Additional insurance
If you, as an investor, are planning to place your money on the stock market and provide reliable insurance in case of uncontrolled growth of the stock market, we recommend purchasing Call options or RTS futures. This is the basics of futures trading.
In practice, there are much more possibilities - a trader can insure not only portfolios of shares that are identical in composition to the RTS index. Each market participant is able to hedge any portfolio - to do this, you will need to focus on the sensitivity coefficient of shares to the dynamics of the RTS. All beta coefficients can be found on the RTS website in special sections. An option is a unique instrument that gives the trader ample opportunities. Judge for yourself - profit can be made in any direction of movement of the price of futures or shares. Using option strategies, you can earn money both when the RTS index decreases and when it decreases. A living example is a futures trading strategy called the “long straddle.” The essence is simple to the point of disgrace - a trader buys Put and Call options with identical strikes (execution prices).
Wide range of possibilities
By skillfully combining futures and options on the RTS index, an investor is able to create synthetic option or futures positions. The artificially created difference between the prices of synthetic and real options and futures can be used profitably to generate arbitrage profits. In addition, using combinations of options on individual stocks based on the RTS Index, a trader can create unique strategies, personally controlling the return-to-risk ratio of trading.