The dealers have been in debate two what are the best Forex trading strategies are for years. That debate is likely to continue for many more years to come. What most people who are new in Forex trading I want to know is what is the best and how can we identify as the best. I want to first of all consider what a trading strategy is then look to two different types, and asses both.
A Forex trading strategy or system is simply a set of rules a trader will use to enter, exit and adjust your trade. The strategy may consider the fundamental analysis, technical analysis, or a little of both. The answer to what is the best can not be determined simply by looking at the results of a strategy, but looking at the trader as well. Psychology is the biggest problem traders face when conducting a gain or loss of trade. The ability to be able to stick to their own rules during a losing or winning trade can be a challenge. It is for this reason that a lot of traders are turning to automated trading systems to overcome the psychological problems they suffer. Auto trading with EA has its advantages, but it is a proven fact that the markets are not actually random, which means a strategy of work today may not work tomorrow.
What happens with a mix of both?
You could be the best analyst in the world and still be a terrible trader! How many times have you taken a trade with all your analysis in the head, then he comes out soon or do not take the trade at all. A common scenario is to not take the intended trade, because it could not engage, then take a random trade that was not planned and lose. It sounds ridiculous when I read that scenario, but it happens every day.
Imagine a system where you can use your own analysis to establish a trade, then use a trading system to take over and carry out your settings so that you do not have the Psychology to deal with. Without doubt, this would be the best Forex trading system. The good news is that these trading systems are about, but not many people are giving away. You could however have a coded program that takes the trades of the basis of its rules and eliminates the psychology. If you have a system that works in a manual, but it only works in certain market conditions, then this could be the best Forex trading strategy.