The best and most profitable strategies to trade Forex 2021

A quality Forex trading strategy should contain a minimum of indicators, be simple and at the same time bring good profits. Not all trading systems are suitable for these parameters. We have selected the 3 most effective and profitable methods for working on different timeframes.

Simple profitable “Mountain” Forex strategy

This trading technique was developed specifically for the hourly timeframe. Trading on this interval is less risky and allows trader to make a profit of more than 100 pips per trade.

Chart settings

The strategy is based on signals from two indicators - Moving Average and Weighted CCI. The MA period should be equal to 72 bars. Adjust the CCI oscillator as shown in the screenshot above.

The Weighted CCI indicator used in trading is a modified version of the regular CCI (we have already described another modification of this instrument - Woodies CCI ).

Weighted CCI looks like a histogram that moves relative to four horizontal levels. The bars of the histogram are outlined with a bold blue line. Red horizontal levels are classic overbought and oversold zones.

For work, trader can choose any currency pair from among the main ones. Exotic trading assets are not suitable.

Buy signals

To open a buy order, two conditions must be met on the chart:

The curve of the CCI indicator entered the oversold zone, dropping below the level of -200, then turned around and broke through the same level in the opposite direction, thereby leaving the extreme area.

The price line moves above the MA.

If both conditions are met, then trader should wait until the signal candlestick closes (at which the oscillator exited the oversold zone), and then open a buy position.

Trader need to open a buy deal before the CCI line breaks the +50 level. After breaking through this level, it is impossible to enter the market, since the potential for an upward movement may already be exhausted and the trend will soon reverse.

Sell signals

A sell order can be entered into under the following conditions:

The oscillator line broke through the +200 line and entered the overbought zone. After that, the curve turned downward and broke through the level in the opposite direction, leaving this zone. The price line dropped below the MA (72).

If both conditions are met, then trader can open a sell position. In this case, the signal candle must be closed, and the market entry must be made at the moment of the opening of the next candle.

If the oscillator has already reached the -50 level, then the potential for the downward movement can be considered almost exhausted. In this case, it is no longer recommended to open a sell deal.

Setting protective Stop-Loss and Take-Profit

The strategy is quite profitable, since the income from one transaction can reach 100 or more pips. Stop loss can be used at a fixed amount of about 30-35 points. It must be installed according to the standard scheme, stepping up or down (depending on the type of transaction) the set number of points.

There are two ways to fix profit using the “Mountain” strategy:

Conservative with a fixed take profit. Take-Profit size should be equal to 100 points. This method is quite good, but trader profit will be limited to only these 100 points, although the potential income could be much higher.

Optimal using a trailing stop. In this case, trader need to wait until the trade becomes breakeven, then move the stop loss to the current price point and add a trailing stop to the order with a step of 25-30 points. This way trader can get much more profit, especially if the position was opened at the very beginning of a long and pronounced trend. Universal. Stop loss and take profit are set at support resistance levels. This method is also quite reliable.

The big drawback of this strategy is that it gives a small number of signals to open trades. This can be compensated by working with several currency pairs at once.

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