HomeIf you want to be successful trader you must have a solid trading strategy in place. A forex strategy is a set of trading rules to follow while trading in the forex market. Following one strategy will not work always instead you need to experiment with multiple strategies.
Developing a strategy of your own is not as complicated as you may think. You need to simply identify your set of indicators and stick to them finding patterns within those indicators. You can determine patterns by learning to study the charts.
Most of the strategies are based on bars. A bar is the time value on the charts. They usually represent 30 minutes of trading between particular currencies. 15 minute, 60 minute, 4 hour, and 1 day charts are also followed by experts to develop strategies. But try to avoid 5 minute time frames as it is too small and is not reliable to indicate clear patterns or signals.
Your golden rule for successful trading is: If the previous three bars in chart are below the Bollinger, then sell. Bollinger bands are preferred by many experts as they are based on standard deviations. You could literally make number of strategies just based on Bollinger Bands.
While developing your strategy you should consider global criteria of filters for catching signals. You filters could be volatility based or indicator based or day based. Every strategy should have several filters and users should be able to adjust those filters according to the situations while implementing the strategy. Try to keep your system simple and avoid too many indicators as it becomes very difficult to monitor a complex system which may result in no trades.
