Forex trading with a regulated broker like HFTrading needs you to put multiple factors together to make a trading strategy which works for you. There are a plethora of strategies which can be followed, and every trader has his own set of strategy. It depends on the goals of the trader.
There are three criteria which a trader can to use to compare the suitability of different strategies:
- Time required
- Number of times trading will be done
- Typical profit to target
Depending on the above criteria, there are several forex trading strategies which should be considered. Some of them are given below:
- Price action trading:
Price action trading includes the involvement of historical prices to make technical trading strategy. Price action is a stand-alone strategy or could be used with an indicator. There are numerous other strategies which fall within the price action.
Length of trade: It can be used on different time periods for short, medium and long term. You can use them on multiple time frames.
Entry/exit points: the methods used for entry/ exit are oscillators, indicators, Fibonacci retracement and candle wicks.
The price action strategy helps you to do scalping, swing and position trading.
- Range trading strategy:
Range trading involves identification of support and resistance points where traders place trades near the key levels. The strategy is recommended for market without proper volatility and no proper trend. Technical analysis is the major tool used in this strategy.
Length of trade: There isn’t any proper length per trade and this strategy can work for any time frame. Management of risk is important here because breakouts can take place.
Entry/ exit points: Some of the tools which help you to calculate entry and exit points are oscillators, RSI, Stochastics etc.
- Trend trading strategy
Trend trading is a common forex trading strategy used by a lot of traders of different experience. It is all about attempting to trade in a particular trend of the market and exploiting its directional momentum.
Length of trade: Trend trading isn’t done for short term, it is either done for medium or long term time-period because trend takes place in long time. Just like price action, multiple time frame evaluation can be done to know the trend trading.
Entry/exit point: The entry point can be decided by an oscillator and the exit point is assessed depending on the risk-reward ratio.
- Position trading strategy
Position trading is a long term trading strategy which major focuses on the basic factors however some technical analysis like Elliot Wave Theory can be used. Small fluctuations of the market aren’t considered in this strategy as they don’t impact the big picture. This strategy can be used on all types of markets whether stock or forex.
Length of trade: Position trade is done for long term outlooks weeks, months or years.
Entry/ Exit points: The long frame charts have info for position traders because they give a complete view of the market. Entry and exit points can be detected on technical analysis.
HFTrading is your one-stop solution to practice all types of forex trading strategies and carry out forex transactions in a stipulated manner. You can initiate real forex trading on this advanced forex trading platform with ease. It is simple to use and has an easy user interface.