People get into Forex trading simply because they hear how lucrative the market is and want to make some easy money. However, new traders are often disappointed when they lose money in the market and quit immediately. In this context, experts say that every newcomer must understand that having an income stream from Forex trading takes time. Of course, one can cater to some of the most profitable Forex system stratgies which can make you earn faster. All one needs to do is practice and have patience.
Here are some highly profitable Forex system strategies for new traders to make significant profits faster.
- Simple Balanced System
The trick while following any Forex strategy is to look for the right indicators to buy and sell. This particular technique can be used in any time frame with any currency pair.
Required indicators for this strategy are:
RSI (14, 70, 30)
Stochastic (14, 3, 3)
Buying time is when the 5 EMA line crosses the 10 EMA line. Stochastic indicators should be moving up simultaneously but less than 80. RSI should be above 50.
During sell, 5 EMA should go under 10 EMA while stochastic lines are dropping not more under 20. RSI should not exceed 50.
It is a good idea to exit trade if 5 or 10 EMA cross opposite directions or RSI moves above 50 again. This system enables entry filtering and is quite accurate, although EMA lines can indicate early exit in some cases.
- Parabolic SAR plus ADX
Known as one of the most profitable Forex system strategies, novice traders can easily understand this. It is effective with any currency pair in any particular time frame.
Indicator usage should be the following:
Parabolic SAR (0.2, 0.02)
ADX 50 ( +DI, -DI lines)
Traders should make a buy when +DI line is above –DI Line and the Parabolic SAR indicates buy. If the +DI line is below the –DI line, then dealers shouldn’t pay heed to Parabolic SAR lines.
Selling in this most profitable Forex system strategy should commence when the negative DI line is above the positive DI line and Parabolic SAR signals sell. In case the negative DI line is below the positive DI line, traders should ignore SAR notifications.
Exit time is apt when both DI lines cross again.
This strategy is great for predicting good exits and works accurately because it allows filtering.
- Euro USD Simple System
The favoured currency pair is already mentioned and the right time frame to trade in this strategy is 30 minutes.
Required indicators for the strategy:
Parabolic SAR Default
MACD lines (12, 26, 9)
Make purchase when MACD lines have crossed upward and SAR indicates buy. Similarly, make a sale when MACD lines intersect below and SAR indicates sell.
A good time to exit is if the market starts moving sideways for some time.
After learning about some of the most profitable Forex system strategies, you should start trading by using these in your demo MT4 account. This will allow you to make some quick profits.
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.