Saturday, March 25, 2017

What is the Best Forex Strategy to Use?

December 10, 2015 by  
Filed under Fx Indicator


This is one commonly asked question among my blog readers and therefore I will like to use this post to answer this question as I believe that alot of you guys out there are also having this similar question in your mind.

In fact, when I am new to forex trading years ago, I also have this similar question in my mind.

It is natural desire for a trader to constantly look for the best forex strategy to use. You guys must be thinking that there is one indicator that you can use which can make you a lot of winning trade.

Trust me, there is no one indicator that can make you a lot of winning trade. For a strategy, it is a combination of a few factors

  • Validation of trade setup
  • Precise entry of trade
  • Tested exit of trade

The above 4 factors are what a strategy must have in order to make more winning trades than losing trades.

Simply the right selection of indicators will not make you a profitable trader. You will need to have a way to validate a trade as there are too many false alarm signal created by the market.

You must have a way to tell whether a setup is a valid setup or not. This will help you to filter out a lot of losing trades which is why most new traders never made it in trading.

New traders are always looking for indicators and they never know a thing about validating a trade. This is something that you will never see on anybody website.

Maybe after I write this post, other website starts to tell their readers about this as they are also a reader of my blog. Most people out there are marketers who don’t know a thing about trading and therefore have to come to my website to read and then ask people to rewrite my articles to post to their website.

Being about to validate a trader is what most professional traders are doing. Therefore if you want to be a successful trader, you must have a way to validate a trade.

The entry of a trade is equally important as it will determine whether you are going to be profitable or not and therefore you must have a precise entry strategy.

What I meant by tested exit is that all your target profit must be back tested before so that you will know the chances of the price hitting the target for that particular strategy.

For all the live trades that you have seen on my blog, the 100 pips target profit are not randomly generate. I have went through 6 months of backtesting to find the optimum exit point.

As long as your strategy has the above 4 factors, I can say that you have a good strategy on hand.

However after years of trading, I realized that there is no so called best forex strategy to use in trading.

This is because different strategy works on different market condition. A strategy that works on a trending market will cause you to lose a lot of money in a sideway market and vice versa.

Therefore it is always important for a trader to have a few strategies so that he can profit from different market conditions. When the market is trending, he can use the trend strategy to profit from the market movement. When the market is moving sideways, he can use his range strategy to profit from the range market.

That is why I have several strategies in trading and if you are a student of my Forex Street University course, you will know that I have several strategies to trade with so that I can make profits in trading irregardless of the market condition.

However there are a few points a good strategy must have. I have written a blog post some times back and below is the link

One thing I want to advice all of you guys out there is that there is no strategy that wins 100% of the time. If you want to become a trader, this is one mindset that you have to adopt.

So my advice for all of you out there who are still trading without a good strategy on hand.

Try to learn one profitable forex trend strategy and one profitable range strategy and you will be able to make consistent income every month from trading irregardless of the market condition.

I hope that I have answered your question and do feel free to email me or contact me via the contact me button on the blog as and when you have any questions.

For those of you who are new, you can take a look at my blog post below

 

 

[monkeytools msnip=”http://catchamonkey.com/catcha.php?u=260&p=195″]

Comments

5 Responses to “What is the Best Forex Strategy to Use?”
  1. Royal says:

    I am an intending student of your highly esteem forex courses. However, I am in full-time employment and therefore would want to trade only daily and weekly charts. Please, are your training programes/ courses and trading strategies meant for higher time frames such as daily and weekly charts.
    My warm regards.

    • Lee Kelvin says:

      Hi Royal

      You can use what I teach you on any time frame higher than 15 minutes. If you do not have much time to trade, then you can trade on the hourly or 4 hourly chart.

  2. Joseph says:

    Hi Guru

    I have been following your blog for years and I totally love the honesty you have on trading issue.

  3. Ahmed Soliman says:

    Dear kalvin,
    First of all I want to thank you a lot for all your support to traders. I was struggling in trading in the past, I wiped my account two times but when I started to read articles you wrote on your wonderful website, my vision and attitude have been changed, thus I succeeded to make profits from forex trading.
    Many thanks to you and I wish you all the best in your life because you really helped me a lot and you are really a wonderful person and the only person we all can trust .
    I have two questions for you and I appreciate your reply because I can’T trust anybody except you.
    1st is : I am now trading with a strategy I made on 4 hours frame and I succeed to make profits for the last 3 months. Is that enough to consider the strategy successful?
    2nd is : what is the best setup for stochastic oscillator and can I use it on 4 hours frame to avoid more of losing trades or you suggest another indicator ?

    Thanks again to you kalvin,I really learned from you a lot.

    Best regards,
    Ahmed Soliman

    • Lee Kelvin says:

      Hi

      I am glad that you have benefited from my articles and it is great to hear that you are making profits in trading.

      1) First of all, I will like to congratulate you. You have found a good strategy to use and since you are able to make profits for 3 consecutive months, I must say that you have a good strategy. This is enough to consider the strategy successful.

      Maybe you can continue to monitor this strategy as this strategy may work for the current trending condition and once the market changes, you will find that you have difficulties finding trading opportunity. What I suggest you to do is to learn another trading strategy or formulate another strategy for ranging market.

      With these 2 strategies, you will be able to have trading opportunity every month irregardless of market condition.

      2) For the stochastic setting, I can’t advice you much as it will be unfair for those who had taken my forex street university course as there is a modified stochastic module within the course.

      You can do some testing on the indicator and then fine tune the indicator to see if it can help you avoid getting into false alarm trade.

      Do keep in touch.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!