Want to be a successful forex trader?
Then you should be able to distinguish between Fx strategies.
The good from the bad ones.
The easy way to measure is by looking at the profit and loss column.
But, there are other things also to consider in choosing a strategy.
Fx Strategy should be personal
You should have an Fx strategy that works for you.
The fx market is volatile and very emotional.
Though some traders prefer risky strategies, it may not be good for you.
If you want to follow someone’s strategy, look into all details.
And determine whether it is suitable for you.
If you are not able to place trades as per the strategy, think over it.
Though it promises long-term results, you would not achieve good results.
Expectancy is an often-used word in Fx trading.
It is used to determine whether an Fx strategy is good or bad.
Expectancy is calculated by the profits from each trade.
Based on the figure, a trader would be able to judge the strategy.
Whether it will make money over the longer term or not.
The expectancy combines the percentage of losing trades and winning trades.
It gives the trader an idea about how much one can make per trade.
It doesn’t mean, you should win most of the trades.
Though your winning % is less, the wins should be much bigger.
Then, the system would be profitable for you.
Does it depend on specific variables?
Some strategies are designed to work with specific variables.
If it takes a particular session where liquidity is high, it works well there.
But, you have to be careful in choosing the system.
And you should not be deceived by the good returns.
If the session time is not suitable for you, you have to reject it.
There are a lot of strategies available.
You could choose the right one which suits you.
Momentum in the market
What you should keep in mind is that markets always change.
Sentiment waves or overall trends change the market.
Usually, long-term traders don’t want to change their strategy.
They don’t want to switch to strategy for daily users.
But in reality, there would be situations that demand the change.
You have to look for potential changes in performance in your strategy.
A truly good strategy would adjust to market conditions.
But, a bad strategy would continue to run.
Choose the right forex strategy for you.
Moreover, the success of any strategy also depends on the individuals.
It depends on when and where you use it.
So, use it wisely and succeed in your forex trading.