Hello there, I have been actively trading for the past year; and while I have seen some success, I feel I have hit a plateau. My goal is to develop a more consistent and structured trading strategy; particularly in the Forex market; but I am finding it difficult to move beyond my current approach. I am hoping to gain some insights from experienced traders who have developed robust strategies that work over time. Currently; I rely on a combination of technical analysis, including support and resistance levels; moving averages; and the occasional price action pattern; but it feels like I am missing something crucial. I often find myself second guessing my trades or feeling unsure about the right entry and exit points. Risk management is another area where I believe I could improve; as sometimes my losses are larger than expected due to improper position sizing. I have been reading about various trading methodologies like trend following; mean reversion; and scalping; but I am unsure how to adapt these strategies to the volatile nature of the Forex market. Also, I have gone through this post; https://www.elitetrader.com/et/threads/seeking-mentor-guidance-to-improve-devops-trading-strategy.381399/ which definitely helped me out a lot. What key factors should I focus on when developing a strategy for Forex? How do you structure your trading day and set goals for consistent performance? Thanks in advance for your help and assistance.
You may want to read some of the threads in the Forex section. There seem to be a lot of threads that you may benefit from.
That is another great starting point. Buying high, hoping to sell higher, only works if it's low on a higher timeframe!
While it does look like prices move randomly, that's not really the case. For one thing, they love to repeat themselves. They love to backtrack and retest their previous moves. They especially love to circle back to just below where you got in only to stop you out before eventually going higher or lower. And I think all this is neatly encapsulated in the following quote, which I posted earlier this year.
Your strategy can be as consinstent as the market is. For a 1-2-3 years consistent trading strategy use no stop loss. aim for 20-30 pips. trade only 1 pair. like this guy here. He trades AUD CAD , 3 white soldiers. What i would suggest is to create a strategy for long term . The question is allways why and what. Why do you want your strategy to be consinstent? What do you want from forex? To get a job on a Hedge Fund or trade your own money? For hedge funds you need to be consinstent. For your money you have to be sure with a strategy that does not crash on a backtest of previous 15+ years
Excellent. Earns less than the RFR. Literally 0% of you retailing FX are going to get a PM gig at a fund.