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Trading forex? Here's one of the best daytrading strategies

 article about best forex trading strategy
2018-10-18 02:42:39
If you're just learning to trade forex and haven't figured out what strategy or strategies to use for your day trading, I have been testing a few and so far this one seems to be the trading strategy with most potential. At least for now.

Which forex daytrading broker to use?

If you haven't chosen a broker to trade with yet, I would recommend this one for couple of different reasons.

  1. You can deposit with Bitcoin or Litecoin
2. You can deposit ANY amount, no minimum.
3. Leverage up to 1:50 for trading with cryptocurrencies and up to 1:500 for trading forex.
4. You only need an email address to register and start trading. Nothing else.
5. Fees are okayish.
6. Min withdrawal is 0.005 BTC.

If this sounds good for you, you can sign up with this broker here. And I use the free Metatrader 5 platform for actual trading with them.


What indicators I use?

For myself I have actually set up four different windows for each currency pair I trade. Here's my current setup.

Window 1 - the basics
In here I have the basic indicators like Bollinger bands, SMI, CCI, ADX Wilder, TRIX, and ASO, and MA.


Window 2
Here I have Parabolic SAR, RSI (Relative Strength Index) and MA (Moving Average) on the same chart, and volumes.


Window 3
On the main chart here I have EMA 50 and EMA 100, and then on a different chart Stoch.


Window 4
On window 4 I have Alligator, and Triple Exponential Moving Average


Obviously, you don't need all of those indicators, but these are just the indicators I'm checking right now, trying to figure out the best strategy for myself.

Be careful not to do these things

Last night I did a big mistake. There was very high volatility in the market, and in these conditions, especially when there are very few trades happening at the time, the spreads can be very, very high. I made a trade not paying attention to the spreads and the moment after I had executed the trade, I had a 100 pip loss. Only after that I checked what the spreads were and they were around 70-120 pips at the time. Which is a LOT. Especially when considering that depending on the pair, they are usually in the range of 1-10.

Another thing to keep in mind - always set your stop-losses. You might think that you are right and the trade will go your way, but sometimes it still doesn't. So ALWAYS set a stop-loss. Even if it's a high one, set it. It's better to lose 50 or 100 pips than 500 pips.

The best forex day trading strategy (so far)

The last two days the first thing I check is my Window 2 and mainly the RSI and MA chart. And I'm looking for moments where the MA goes below RSI or the MA goes above the RSI. Then usually a trend reversal is about to occur. Note that it doesn't usually happen immediately but mostly within 2 and 10 candlesticks (I'm using 1 minute chart). Before I go trade based on that I also check my Window 1 and look for confirmations. Plus I also try not to trade before I get a confirmation from Parabolic SAR. Plus I also take advantage of trendlines. I can't give you my results yet, but at least so far this strategy looks promising.

Feel free to register a trading account and try it out for yourself.




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