For many FX traders, the hunt is still on for finding that HOLY GRAIL trading strategy. Traders keep experimenting and backtesting, but because of so much superfluity in options, they don’t stick to one and keep running after strategies which promise Big Profits. To help traders have a clear idea about the proper Forex profitable strategies around, the post will serve as a good reference.
But Before That, Let’s Explain Why Such Strategies Are So Useful?
Graphical interpretations and technical instruments serve as essential requisites for trading currencies. Combining a host of indicators and some analytical tools, traders make a strategy which gives them instructions and notifications on particular market scenarios. With those instructions, traders can tackle the market unpredictability and avoid chances of incurring mistakes.
Presenting them ample clarity towards the market, such Forex profitable strategies do play a crucial role in determining the success ratio of their trades.
2 Reliable Forex Profitable Strategies:
- Scalping Strategy Also Referred To As BALI
Though this strategy is universal regarding working for all FX currencies, it yields the best results for EUR/USD. Traders will need to use this strategy with the Linear Weighted Moving Average, DSS Momentum, and Trend Envelopes. When setting it on the chart, traders will find a yellow line denoting the Trend Envelope. They will have to watch the point when the candlestick line crosses the Trend Envelope Line.
That very candle will have the closing price line over the Linear Weight Moving Average. The DSS Momentum denoted by the green line should lie over the signal line. Traders can BUY if all these criterions are met. Lastly, with the help of a 25 point Stop Loss, traders can take 50 points as their profits.
- Moving Average Trading Strategy
Some experts do believe that it can be the most profitable strategy Forex, if traders are able to work with it properly and consistently. This approach involves 10, 25 and 50 Moving Average Lines and the use of Parabolic. Traders can use the Parabolic to filter their trading signals.
Trading with the system
If the Parabolic appears to be at the top and MA 10 line crosses the 25 and 50 MA top to bottom, it is a sign for traders to open up short trading positions. Contrarily, if the MA 10 line crosses the other 2 MA lines from down to up, it means traders can open up Long Positions.
This trading method does not involve any complicated chart representations. Plus it also allows traders to customize their trades as per their own requirements depending on their trading psychology and market situation.
Sign up For MT4 Demo:
These are 2 of the popular Forex profitable strategies which traders can use. Traders can sign up for a demo account and try out these strategies comprehensibly. So don’t delay anymore. Associate with a notable FX broker, preferably one who offers MetaTrader4 account and start demo trading with these methods today. These are really fruitful in procuring profits, and with a little bit of practice, newbies can make stable inroads into the FX venture.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.