Types of trade strategy

Types of trade strategy

by admin

Trading in the Forex market requires certain knowledges, which turn into whole strategies. Most of them are based on indicators of technical analysis. But there are traders who are supporters of indicator-free strategies. Despite the fact that there are a lot of strategies, there are the most effective of them.

Each trader has his own approach to trading, which is usually associated with his personal qualities and character. These are two opposite styles of behavior – conservative and aggressive. In the conservative style small risks and the same yield can be traced. Aggressive trading style requires high risks and nets great profits.

Trading systems

There are two main trading systems – trend and counter-trend. Trend-tracking strategies allow to trade with the least impacts on capital as profitable as possible.These indicators determine trends and their directions. If both averages are directed upwards, then this is a bullish trend. If they are directed to the bottom – bearish. In the trend-tracking trading strategy you need to trade within the main trend, which was observed after the correction. Such a strategy is as simple as possible in understanding and very effective in practice.

Despite this, it should be noted that in the trend the market is only 1/3 of the time, that’s why the more effective indicators are the oscillators. The counter-trend trading system is based on only one indicator of technical origin.

The simplicity of this trading system is manifested in the range and its framework, which the trader works with. If the indicator line falls below 30%, then the object is resold. If it is above the line 70%, then the object is overbought.If the indicator is between these indicators, then the instrument is available for sale or purchase. There are periods of discrepancies between the direction of the indicator and the cost schedule. For example, if the price falls or rises below the previous price, the oversold or overbought indicator gives the strongest signal.

Special abilities

Trading robots are special programs that work in automatic mode. The robot simply opens and closes the necessary trading positions working on a certain algorithm. Robots work on the basis of different strategies. For example, the strategy of “Matineil” is based on the fact that the price is always dynamic and moves up and down. There comes a time when it becomes possible to take profit. Such a trading system works very well for a quality written program.

The Trading Group encyclopedia offers every trader to receive a whole range of knowledge that will help to build your own trading strategy and decide on the methods of trading. In this section you can get acquainted with the basics of the fundamentals of all trading strategies.

If you have already found your own style, have chosen your strategy and have been ready to do work in the Forex market, then it would worth taking a few simple steps. Start by registering a trader account with Trading Group, replenish the trade deposit in a convenient way and you will be able to trade in the global financial market of the world.