What Trade Strategy To Choose For Forex?
What are the best automated trading strategies to earn money on Forex? With IT hype in all spheres of life and financial sector it is quite a challenge for smart and ambitious people. It’s always better to think twice and make the right choice. Hope this article will help you on your way to getting rich and free.
Starting operations, a trader faces the question – what complex of action is right? There is no single and simple answer. Anyway, there are some important tips from the market guru.
First of all, you need to decide when you will trade. After all, not everyone has 24 hours a day of free time: someone is studying, someone is working, etc. Of course there are mobile terminals for smartphones that allow you to trade while away from home, but again not on any job there is the opportunity to use the gadget whenever you like.
When time is not flying
So first of all you need to decide on the format and choose for yourself the appropriate timeframe. So the main questions while considering automated trading strategies that work are:
- at what time?
- in which mode?
Those who have the opportunity to check the charts only once a day in the evening, should be focused on daily charts. There are also universal automated forex trading strategies that can be used on any timeframe, such as the Rubicon or the PaintBar.
Suppose, you have finalized the time gap, so what are other criteria? At the beginning, it should be noted that two different traders using the same system can have completely opposite results. What is the reason for this? Here are some clues:
- Firstly, due the emotional component: one trader may be disciplined, and the other may be not.
- Secondly, everyone involuntarily introduces small, but considerable changes into the system used. Explanation is the following – someone enters/leaves a little earlier/later; some people consider the older timeframes, and some do not. Many add their filters, trade only at certain time, etc.
The list can be continued, but the point is that the success in working with the strategy depends a lot on the qualities and experience of the trader.
Listen To Yourself
Choosing an algorithm of actions with electronic money similar to choosing a car or a life partner, it is worthwhile to be guided by personal preferences. Studying this or that option, ask yourself: do you like it? Will you feel comfortable and confident using this variant? If you are not confident enough, you will begin to doubt, skip signals that could lead to profit, violate the rules etc.
Forex automated trading strategies should also correspond to your beliefs; the same Martingale strategy has many opponents, but also many followers. Someone thinks that it is impossible to trade, for example, on minute charts, while others will prove the opposite.
It is also possible, when you take out of the set of steps only individually liked elements (some indicator or analysis method) and thus, leaving the best, and eventually construct your own technique. After all, who said that you can’t invent something new and unique and beat other competitors with your super smart know-how.