Anyone who starts to learn a profession trader, almost immediately learns to discover one of the main predictors of success - the presence of a trading strategy. Sooner or later come to the realization that, after reading the book, an online forum or watching instructional videos. The presence of stable and most importantly understandable strategy for a trader is in fact the first and one of the most important items.
Now on the Internet you can find hundreds or even thousands of trading strategies. Through them all individually, and even more testing and life is not enough, so in this article we will try to highlight the main examples of trading strategies and create a classification for them.
In the first place, of course, it should be noted that policies are mechanical and automatic. Examples of trading strategies related to mechanical will be those in which the trader must own decisions on the opening/closing of the transaction, setting a take-profit and stop-loss in accordance with the strategy. Automated strategies are presented in the form of advisors, they are without trader can make transactions, but first they need to be set up, or rather even say adjust as usually automated strategies are already the default setting.
It's also worth mentioning semiautomatic strategies. But the bottom line is that the commercial counselor may indicate the possible entry/exit points in the market, or to help determine the trend and levels of support/resistance, and the trader can only decide to use the recommendations of a robot or not.
The second factor in choosing the trading strategy, it's the time interval at which it's designed. Trading strategy may be short-term, long-term (investment) or intraday. Examples Intraday trading strategies can be designated scalping, trading breakouts or news. Long-term strategies are usually trendy, although you can meet aggressive long-term strategies, such an example trading strategy may be trading on the principle of the Martingale. Long-term strategies require a decent capital and time to generate income which, by the way, is not always great, but it's stable.
And so, at this point we have identified two criteria when choosing a trading strategy that's as far as it's automated and at what time interval to be calculated. But there is another important criterion that is often decisive in choosing the trading strategy - is the degree of potential risk. In other words, is an aggressive strategy - promising big profits at high risk of losing most, if not all of the capital, or conservative. Conservative strategy due to low risk, losses are negligible, the truth and the profit is usually several times smaller than the aggressive strategy. Examples of trading strategies are conservative are those in which there is a clear system of limitation of damages, the priority is the preservation of capital, profits are moderate. Examples of trading strategies with aggressive trading promise high income (even more than 100 % per year), the system of limitation of damages is not thought, and often none at all, are designed for short-term periods, and intraday trading.
Although the risk criterion, we identified last, in practice it's the first factor in choosing the trading strategy. Of course, everyone wants to make a profit quickly and in the greatest number, but the choice of aggressive or conservative TS is personal in nature, not everyone is willing to sit for hours in front of a monitor and ensure that all vehicles are not merged, or to see how profitable month replaced unprofitable. So do not get round conservative and stable trading system, pursuing for high profits, is good to weigh the pros and cons of each type, and choose the one that is more suitable for you. Prioritize a new way, look at the table are the criteria for choosing the trading strategy.
Examples of trading strategies on our website:
- Avtomaticheskie - Advisor ILAN (ILAN), Advisor Stelz (Stealth) and Commercial Counsellor Joker EA.
- Mechanical - simple trading strategy, Strategy FOREX LSFA and Daily forex strategy.