In this second part, we will get into the details of the results of the back test I conducted, and show the differences in performance between the EUR pairs and the USD pairs, as well as examining how overall performance can differ with the application of certain filters.
Academic studies have found that the most profitable trading strategy that can possibly be constructed based upon historical price data alone, is a time series momentum-based trading strategy.
Many Forex traders, especially new Forex traders, can feel lost and confused in the market. We will show here a method that can be used that chooses currency pairs in a way that statistically produces positive returns.
A few weeks ago we published parts one and two of a series of articles explaining how to give yourself a realistic chance of turning $10,000 into $1 million by trading Forex. In this, the final part of the series, I am going to explain how to determine which currency pairs to trade, how to control overall risk, and outline some more advanced strategies for exiting trades
Some traders prefer to use breakout points to signal their trend entries, others prefer to use indicators which just show strong directional momentum. Who is right, and which works better?
If you are going to use indicators, then the best Forex indicator is the RSI (Relative Strength Indicator) because it reflects momentum, and it is well established that following Forex momentum can give you a winning edge.
In this article you will learn the various aspects of the Pin Bar Trading Strategy used during a Pin Bar momentum break. Some of these features include the conditions needed for a potential long or short entry consisting of a single price bar/candle and the optimum time to place a stop loss.
This article examines several characteristics of the Outside Bar Trading Strategy used during an outside bar momentum break. These qualities include the conditions needed for a potential entry consisting of a single price bar/candle, where to place a stop loss and how to aim for a profit target using a risk to reward ratio benchmark of 1:1.