The 10 Best Forex Strategies 2014

When it comes to selecting strategies to trade, you have the choice between buying one off-the-shelf or trawling the Internet for freebies. The trouble with free forex trading strategies is that they are usually worth about as much as you pay for them. They haven’t been tested, and there is little evidence of their reliability.

10 Best Forex StrategiesThe strategies covered here on the other hand, are ones that either I or successful traders I know have used in a consistently profitable fashion…

FREE FOREX TRADING STRATEGIES

N.B. not all of the following strategies are equal in all markets. Some perform better than others, and each individual trader will find some strategies more suitable for them to trade than others.

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#1: The Bladerunner Trade

The Bladerunner is an exceptionally good EMA crossover strategy, suitable across all timeframes and currency pairs. It is a trending strategy that tries to pick breakouts from a continuation and trade the retests. It is not a strategy that thrives on volatility, so time of day and liquidity are very important.

#2: Daily Fibonacci Pivot Trade

Fibonacci Pivot Trades combine Fibonacci retracements and extensions with daily, weekly, monthly and even yearly pivots. The emphasis in the discussion here is on using these combinations with daily pivots only, but the idea can easily be extended to longer timeframes incorporating any combination of pivots.

#3: Bolly Band Bounce Trade

The Bolly Band Bounce Trade is best used in a ranging market. I personally find it one of the less reliable of the strategies presented here, but many traders use it in combination with confirming signals, to great effect. If Bollinger Bands appeal to you, this one is well worth a look.

#4: Forex Dual Stochastic Trade

The Dual Stochastic Trade users two stochastics – one slow and one fast – in combination to pick areas where price is trending but overextended in a short term retracement, and about to snap back into a continuation of the trend. This one strategy, like the Bladerunner, can be used on its own to devastating effect.

#5: Forex Overlapping Fibonacci Trade

Overlapping Fibonacci trades are the favourites of some traders I have known. I place their reliability a little lower than some of the others, but if you use them in conjunction with appropriate confirming signals, they can be extremely accurate.

#6: London Hammer Trade

The extra volatility you get when London opens presents some unique opportunities. The London Hammer Trade is my take on an attempt to capitalise on these opportunities. I’ve only used this strategy to any great extent during the London session, but I’m pretty certain it could be used at any time when price is likely to be taking off strongly in one direction, and possibly reversing from an area of support/resistance just as strongly.

#7: The Bladerunner Reversal

As mentioned above, the Bladerunner is a trend following strategy. The Bladerunner reversal just as effectively picks entries from situations where the trend reverses and price begins to trade on the other side of the EMA’s.

#8: The Pop ‘n’ Stop Trade

If you’ve ever tried to chase price when it bounds away to the upside, only to suffer the inevitable loss when it just as quickly reverses, you will want the secret of the pop and stop trade in your trader’s arsenal. There is a simple trick to determining whether or not price will continue in the direction of the breakout, and you must know it in order to profit from these situations. Even so, this strategy can be tricky to trade. Best combined with extremely positive news having just broken on the pair traded.

#9: The Drop ‘n’ Stop Trade

The flip side of the pop and stop, this strategy trades savage breakouts to the downside.

#10: Trading The Forex Fractal

The forex fractal is not just a strategy but a concept of market fundamentals that you really need to know in order to understand what price is doing, why it is doing it, and who is making it move. This is the kind of inside info that took me years and many thousands of dollars to learn. It’s yours here for free, so make use of it :-)

There are also several sites on the net offering free strategies. The problem with most of these sites is, as mentioned above, they just give a brief description of each strategy, with little real proof that they work. Consequently, there is a need for greater research on your part before using any of those strategies in your actual trading. Once you have selected a strategy from one of these sources you will of course need to thoroughly back test and forward test it.

The various processes for this are covered in Forex Strategy Testing There are also several commercial systems to consider. Since these are more comprehensive than the simple strategies presented above, and thereby fall into the definition of Forex Trading System, they are dealt with separately in the following section, Forex Trading Systems

Comments

    • Erron says

      You’re in the right place ;-)

      Seriously, to give a more definitive answer, I need to know more about what you’re looking for. Like, what time frame and time zone you will be trading, what kind of risk profile, what kind of trading appeals to you: scalping/short-term intraday/long-term etc.

  1. Victor says

    Please I’d like to know the best strategy for trading on a 4-hour timeframe, GMT+1 timezone, and $100 portfolio. Thanks.

    • Erron says

      Really, you could adjust many of the strategies shown here to that timeframe, time zone. The size of the portfolio is fairly irrelevant, unless you’re expecting to make big bucks out of $100, which is certainly won’t. Probably best to start off on a demo anyway, and play around with strategies like the Bladerunner.

  2. Pietro says

    I would like to know if some of the above strategies has been tested and used on a 1 minute charts… i’m looking for a good strategy for scalping/short trade.

    Thanks! ;)

    • Erron says

      I haven’t personally used any strategy at all on a one minute chart, to the extent that I could say I have back tested it. You’d have to give that a try yourself. If you’re looking for a good scalping strategy and you are able to trade around the time of the London close, I suggest doing a search on this site for my review of the London Close Strategy by Shirley Hudson and Vic Noble.

      Good luck with it!

      Erron

  3. ranx says

    Hi Enron, many thanks to your forex blog best 10 strategy. I hope you won’t mind if i would ask you about parameter on each strategy. I’m new to forex and i would like to test the strategy. THanks

    Ranx

    • Erron says

      Hello Ranx, you’ll need to be more specific if I’m to help you. Which strategy were you going to start on, and which parameters were you in doubt about? Keep in mind that there is only a certain amount of information I can fit into a blog post: to cover every parameter over every timeframe, every forex session etc. would require an entire course, and I’m unable to provide such at present.

      Erron

  4. Trader G Shari says

    Hi Erron,
    Thanks for the 10 strategies. I’ve been working on developing a strategy which is; indicator free, timeframe free, news free, support resistance free, works all time, keeps you away from noise and consistently predicts market more than 80% . Please check it out also :)

    • Erron says

      Thanks for the feedback. I checked out your strategy, which sounds interesting. The only thing is that your performance page doesn’t really give verified statistics, which I personally would like to see in order to backup a statement like 82.5% win rate.

      Erron

  5. Trader G Shari says

    Dear Erron,
    Thanks for addressing about performance. As i am just getting started, Performance section will be updated with time, also i will launch my free book on Forex trading, which will be a Gem in nature, in near future. Also future videos which will be posted on my YouTube channel, will include live trading videos. The strategy works on price movement along y axis. There is a certain thing happens when price moves in either direction, and this thing happens as many times as you can see the yellow ticks in performance section images, it doesn’t matter weather one takes the trade or sit aside, that thing is happening, it has happened before and is still happening, and its all over charts, yet again i have recordings of live trades which will be posted soon. Selling this strategy was never a plan, but i have another project, a Trust Eye Hospital where i will be providing laser eye treatment to general public for free. 80% of revenue generated by strategy sales is going directly to the trust funds. One thing i don’t have is time, So patience is virtue and subscribe to my YouTube Trader G Shari for future updates. Also to know about the release of my FREE book.
    Thanks Again

    • Erron says

      That’s an incredibly wide question LOL!

      You really need to define your needs and current circumstances a lot more before I could give any kind of meaningful answer. As for automating strategies, I’m no longer much of a believer in this, although I continue to experiment with various prospects. For many years I’ve been trying to find an automated strategy that could be trusted to perform over the longer term, but failed. That’s why I am currently more interested in the idea of forex trading signals services: you still get the benefit of “making money while you sleep” without having to rely on unthinking automated software.

      Erron

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