Having the right forex strategy is a big part in being a successful trader today I am going to share a strategy that works well and is easy to execute. I have had some recent information about money management so I felt that it was time to switch gears and talk about strategy. I had a conversation with a trader that used this strategy to increase his account by over 450% last year so you will want to pay attention to this one.
Here are the rules:
Risk 1% of total account value on all trades
Identify the trend on 4 hr Chart and trade within the trend.
1 to 3 Risk Reward Ratio. Let my winners run and cut losers short.
Use a 3 EMA and a 30 EMA 25 EMA. When the 3 EMA
crosses above or below the 30 that is when you enter. Wait until the candle closes.
Open 3 lots with a stop just above the high on the the candle you enter on. Adjust stops as
the trade moves in your favor.
Use MACD with 12,26,9 settings the purpose of the MACD is to exit trades.
When the lines on the MACD Cross after you enter that is when you exit 2 lots two take profit.
Keep the 3rd lot open to let the profits go on more.
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.