Sure win forex system

Notice how the market came into resistance during a rally but was soon able to break through that resistance. One of the basic principles of technical analysis is that former resistance becomes new support. Sure enough the market found support at former resistance and formed a bullish pin bar in the process.

Once the market broke through resistance, it found new support and formed two bullish pin bars. Shortly after forming these pin bars, the market continued its rally for an additional pips. For more information on this particular strategy, see the lesson on the Forex pin bar trading strategy.

Another highly-effective Forex trading strategy for beginners is the inside bar strategy. Unlike the pin bar, the inside bar is best traded as a continuation pattern. This means we want to use a pending order to trade a breakout in the direction of the major trend. Notice how the bar preceding the inside bar is much larger in size. These are the best inside bars to trade because it shows a true consolidation period which often leads to a continuation of the major trend, which in this case is up. For more on this strategy, see the lesson on the inside bar trading strategy.

This strategy is different than most of the conventional breakout strategies out there. Notice how the market has worked itself into a terminal wedge, which simply means that the pattern must eventually come to an end. The opportunity to trade this pattern occurs when the market breaks to either side and then retests the level as new support or resistance.

In the case of the illustration above, the entry would have come on a retest of support-turned-resistance. Notice how in the USDJPY 4 hour chart above, the market touched the upper and lower boundaries of the wedge several times before eventually breaking lower. As soon as the 4 hour bar closed below support, we could have looked for an entry on a retest of former support, which came just a few hours later. Although the pin bar trading strategy is my favorite, I have had some of my largest trades using the Forex breakout strategy above.

The market will often react quite aggressively after the breakout occurs, allowing traders to secure a large profit in a relatively short period of time. So there you have it. Trading is personal and your personality plays an important role in determining whether you will be successful in the long run or not. You should choose a trading system that agrees with your personality.

There are trading strategies that are fit for scalpers, some for day traders, some for swing traders. Need to generate signals at the right trading session. There are three main trading sessions — Asia, London and New York.

Asia is slow moving while New York and London sessions are fast moving because they are very liquid. Remember, for you to profit from a trading strategy, it has to fire signals when you are in the market. Needs to generate enough signals for the trader.

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The signals generated by the trading system should be sufficient to ensure that the trader gets to double his or her account in a period of one year. Perhaps this should be the very first characteristic of a winning trading strategy. You have to make sure that it generates returns on a consistent basis. The returns generated should make sense to you as a trader.

Remember, you are trading for the money and trading is your business.

It is now up to you to check all the trading strategies you come across or any that you might develop in your trading career against these characteristics. Make sure that the trading strategy yields a smooth equity curve, agrees with your personality and generates consistent results with reasonable returns.

You should also make sure that the number and size of winners generated by the trading system exceed the number and size of losers. T Course C. T Indicator Blog Members Area. Tharp A winning strategy is the dream and desire of every trader. We are here for to make money! Is there more to it? Now, As you are growing to become a professional trader in your own right, allow me guide you on how to tell a winning trading strategy apart from the rest so you can smell the bull shit fro far away!

In this article, I will teach you how to recognise a winning strategy at first glance. To achieve this, the article is structured into sections that include What is trading strategy and distinction between a good strategy and a bad strategy What are 8 most important features of a trading system or strategy Ready? What is a trading strategy? Before going deep into this discussion, let us answer a few questions, shall we? This is because few reasons: Humans are risk averse so we seek strategies with no losses.

If we see a system or strategy with no losses, we tend to ignore the logic and maths. Remember: Accuracy is the most overrated metrics in trading. In few simple steps: decide on metrics, collect data and analyse the figures.

Picking the Best Forex Strategy for You in 2021

Risk to reward ratio of your strategy — are your winners bigger than your losses? The market conditions in which it works best- Do you make money in trending markets and break even in ranges or do you lose money when the market trends? The best time frame where it can be trades- Does it work on higher time frames or lower time frames or both? The best currency pairs- What pairs you get the best results? There are a number of ways you can obtain these numbers Back testing- This is where you look at historical data to determine instances where your trading system would have yielded positive or negative results.

Demo trade — This is where you open a virtual account and trade the real markets with virtual cash. You can then use the results from your trades to determine your win rate among other metrics. It is important to obtain the most reliable figures you can get.

The truth is: trading in the real time is what counts and you need to know if the strategy works in real time and if you can execute it in the real time or not The best way to do it is to use the visual mode in the Strategy tester in MetaTrader 4. Pause, trade and start again Record your results and analyse your results in a spreadsheet. Be honest with yourself. If the stats show otherwise, drop it and move on.

If the trader achieves the above equity curve trading the sideways market below, it shows that the trader is a trend follower and well able to produce consistent results in both rising and falling markets Again, considering that this equity curve is generated from about trading days , the results must be representative of the various market conditions and seasonality in the markets.

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To me, this trade has no money management at all. Large winners around were lucky and not planned. There is no consistency visible in this equity curve.

I would not invest in this trader as he might expose my capital to large losers And this is how you can tell the difference between a bad trading strategy and a good one Did you know that there are so many traders who have publicly published their trading results on a platform called myfxbook Here is a table that I have retrieved from the site showing some of the trading strategies and their relative performance There are about strategies that have been listed on the site. In this list, Forex Armor EA has been ranked top.

Let us look at some metrics from this strategy This is a positive equity curve for the Forex Armor EA which is an automated trading system. They cash small losses and accumulate large, unrealised losses in the background.