How to build a profitable trading strategy? any suggestion from expert?

[Paulsy]

A successful Forex trading strategy begins with developing a well-thought-out entry and exit strategy. Despite knowing when the value of a currency pair will rise or fall, it is unlikely to be profitable until you know when to enter and exit the market. An entry and exit strategy helps you decide when/where to enter the market and at what point would be best to exit.

Entering and exiting the market is an extremely important element for many beginners, and testing your strategies without it is not really valid. Instead, I suggest you test your strategy in a real environment, but with a small amount of money, like a Cent account.

 

[TildaTilt]

Traders need to be aware of their trading style in order to develop a profitable plan. He should perform a self-analysis, which involves determining his risk tolerance, his preferred time frame for trading, such as long-term or short-term, and the amount of trades he can or wants to make each day. He can then select a trading strategy after that. He can use a scalping trading technique, for instance, if he has a high tolerance for risk, wants to trade for a short period of time, and wants to execute numerous trades frequently.

 

[Implumou]

No set of rules works when you are looking for a profitable strategy for yourself. You will have to perform market analysis as per your understanding and change rules to see what fits the best for your needs. Building a plan of action on your own is what I recommend.

 

[Zooscopy]

You should keep these 3 points in mind while devising a strategy for trading.

• Time frame that is easy to incorporate with your schedule and suits your trading style.
• Number of trading opportunities.
• Position size.

Other than these you should also look into the risk that is there with every strategy and take steps to manage it well.

 

[Verves]

When you are yet to start, you will obviously have to use some readymade strategy. You will even have to make some trades in the market to see what results the strategy gets you. With time, you will find out what changes you must make to your strategy to make better trades.

 

[Xerothermic]

Make a list of a few trading strategies, create a budget, find out how much risk you’re willing to take on them accordingly and create a plan keeping in mind what your end goal is, short term or long term. It takes time to get to know what your trading style might be so just be patient and keep trying.

 

[Canoodle]

You should examine a number of factors when determining what type of strategy you should adopt. First and foremost, it is important to consider your personality, level of knowledge, and the amount of risk that you are prepared to take.

 

[Polakandil]

I trade on multiple pairs to choose one and apply trading strategy, basic analysis is use support and resistance with price action, but in advance use a trading tool indicator as a filter, sometimes trade based correlation to hedging.

 

[Exclusion]

Instead of backtesting, run your strategy in a demo account for a couple of weeks. Demo trading has live price actions whereas backtesting uses historical price data. The economic conditions of the historical price data might not be the same as the present condition. That is why running your strategy through demo trading can give better results when applied in live trading.

 

[Muricide]

There is no quick recipe to cook up a profitable trading strategy. You need to study and analyze different strategies and then test them out on a demo account. If any one of them is profitable on the demo account then you can give it a shot to your live account.

 

[Braggart]

Just focus on your goals and consider the knowledge you have. Your strategy must be in accordance with what you want to achieve and how capable you are of doing it. Just stay updated with the market so that you don’t lag behind.

 

[Masterate]

It will take experience and zeal to do something extraordinary in the forex market. Make proper use of demo accounts and micro accounts before you start taking big risks.

 

[Teropus]

I can’t think of a better way than demo trading to build your trading strategy. You may start with practising using ready-made strategies and finding out what you would need to do to customise them in accordance with your needs.

 

[Monique Rich]

You won’t come up with a profitable trading strategy out of thin air. You will have to go through the market and obtain some experience to build your strategy. Be ready for some losses as well.

 

[Alexandra Preston]

A profitable strategy will come only after you have made several hits and trials. You won’t find it well-written on the internet. Every strategy needs to be customised in accordance with the trader’s requirements and you better take your responsibility.

 

[Aficionado]

Learn about a variety of trading strategies, then put them to the test in order to determine which one will help you achieve your trading goals and objectives most effectively. This way you can build and find a profitable strategy.

 

[Whiskerine]

Take account of your current goals in forex trading, how much you want to trade in a day/week, what’s your target profit and loss ratio, etc.
If you want to try some other strategy other than your current style, go forward. Rebuild your strategy by using analysis of the market. I suggest you give a try to the Wyckoff method and implement it in your trading strategy.
Always remember to backtest your strategy several times before applying on the real market.

 

[Textuary]

Building a right forex trading strategy can be difficult at first but when you know what works best for you, it can be easy. The best way to build a strategy is to start by understanding your risk tolerance, the market you want to trade and your available capital. After you have done that, it is time to start building your trading plan.

 

[Tumultuous]

You will have to get an understanding of all the available strategies and practice them on a demo account. This will give you an idea about all the strategies and based on your comparison, you can make a choice for yourself.

 

[Woolpack]

If you believe too much in what others tell you, you will limit your options. It’s best to do your own learning and research and then practice different strategies until you find the best one for you.