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    Forex+Strategies+++How+to+trade+and+always+win (1)

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    Forex+Strategies+++How+to+trade+and+always+win (1)

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    ishtiaq
    9 views9 pages
    forex strategies 1 to 1 100 percent profit

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    forex strategies 1 to 1 100 percent profit

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    9 views9 pages

    Forex+Strategies+++How+to+trade+and+always+win (1)

    Uploaded by

    ishtiaq
    forex strategies 1 to 1 100 percent profit

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    STRATEGY AND STRATEGY

    FORMULATION
    A Forex trading strategy is a set of rules, which guide the trader on
    the best way to analyze the market, enter and exit trades, in an
    effort to make the most profit, while minimizing risk and preserving
    capital.
    The goal of your strategy is to give you an edge in the market in the
    long run – Your strategy must be such that if followed correctly, over
    a good sample of trades you are sure to be profitable.
    Trading is a game of probability and your strategy helps put the
    probability in your favor is followed correctly.
    YouSteps
    strategyin
    as creating
    a trader should your
    dependstrading strategy
    on the type of trader you
    are and should best suit your personality and style of trading.
    1. Define the sets of rules of your strategy.
    2. Back test the strategy (with at least 1 – 2 years of data)
    3. Forward test the strategy on a demo account (for a minimum of 1
    – 6 months)
    4. Trade it Live.
    CATEGORY OF RULES FOR A
    GOOD STRATEGY
    The are 4 sets of rules that should exist for your strategy to be
    complete and effective. These include:
    1. Analytical Rules
    2. Entry Rules
    3. Exit Rules
    4. Trade Management Rules
    Analytical rules guide your analysis as a trader. Examples include,
    timeframes to use for analysis, indicators, tools and objects like
    trend lines and Fibonacci, price action, setups, fundamental analysis
    etc.
    Entry rules guide your entry into trades. Examples include Time
    frames to use for entering trades, confirmations like candlestick
    patterns, retest of support and resistance zones, etc.
    Exit rules guide your exit out of trades either in a profit or in a loss.
    Examples include Stop losses, Take profits, Stop losses and take
    profits based on indicators, Fibonacci levels, price action, etc.
    Trade management rules guide how you manage running trades.
    Examples include Trailing stop, Break-even, Taking partial profits,
    etc.
    FINAL TIP on trading strategy
    After creating your strategy, you can summarize your entry criteria
    into a simpler checklist. Every time you analyze the market, try to
    score the checklist against what you are observing on your charts
    then only enter trades with a high score mark, say 80% to 100% of
    all your needed criteria. More important criteria should be taken
    more serious on the checklist.
    TRADING PLAN
    A trading plan guides a trader’s Overall trading activity with specific
    trading goals and targets in minds.
    Your trading plan must align with your trading strategy.
    Goals or targets in your trading plan could include Trade targets like
    pips targets over a period of time, number of maximum and
    minimum trades, etc and Financial targets might include estimated
    amounts you’ll be looking to generate over a period of time.
    Your trading plan should include risk management rules. Risk
    management rules guide your position sizing and risk management.
    Examples include Risk per trade, Risk on account, Avoidance rules,
    Maximum allowable loss per day, etc.
    Currency pairs to trade and Trading sessions to trade in should also
    be part of your trading plan.
    Your trading plan should also contain withdrawal plan.
    In conclusion your trading plan should give you a framework of how
    you’d want to successfully trade the forex market over time.
    DISCIPLINE
    Your success as a forex trader is deeply rooted in not how much
    money you have to trade or how good your strategy is but how much
    discipline you have in following your strategy and your trading plan.
    HOW TO TRADE LIKE A
    CASINOs & betting companies
    Professional trading (Trading and constantly being profitable), is a game of
    probability and that’s what makes it similar to the casino.
    It is a well known truth that on a long run, the betting companies or casinos
    always win, and also makes a lot of money.
    So how does the casino or betting companies make money with probability?
    And how can we use the same principle to be consistently profitable in forex
    trading?
    EXAMPLE: N0 of Black numbers ---- 18
    N0 of Red numbers ------ 18
    No of green numbers ---- 2
    Total numbers ----------- 38
    Probability of a gambler winning is
    18/38 = 0.473
    Probability of the Casino winning is
    20/38 = 0.527
    % Probability of a gambler winning =
    47.3%
    % Probability of the Casino winning =
    52.7%
    The Casino has a statistical advantage
    of 5.4%
    HOW CAN TRADERS RIG THE
    GAME LIKE THE CASINOS TO
    ENSURE WE CONSTANTLY
    MAKE
    The only way traders PROFIT?
    can rig the market like the casinos, is to make
    sure they have an edge in the market, just as the casinos and
    betting companies do.
    You have to have a strategy with a statistically proven positive
    expectancy over a considerably large sample of trades.
    You have to consistently follow your strategy rules, to make sure the
    statistical edge of your strategy remains in your favor.
    You have to always have a fixed, predefined stop loss level and at
    least a 1:5 Risk to reward ratio. You can boost your risk to reward
    ratio with trade management practices like trailing your trades.
    RISK TO REWARD RATIO
    Risk to reward ratio is simply a comparism between the potential
    profit of a trade to the potential loss.
    Always target a Risk to Reward ratio of at least 1 : 1.5, as
    maintaining a good Risk to Reward ratio, enables you to have a
    statistical edge in the market.
    Always have a minimum Risk to reward ratio predefined, before
    entering any trade.
    RECORD KEEPING IN FOREX
    TRADING
    Keeping records of trades is one vital aspect of trading that
    beginner traders tend to overlook. Keeping records of your trades
    can help you build disciple, and character for success.
    Recording your trades helps you in forward testing your strategy to
    see how it performed over a period of time.
    Recording your trades helps you realize the problems with your
    strategy and things your are not doing right.

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