Most frequently, a trading strategy is a set of entry and exit rules, which a trader can use to open and close positions in the foreign exchange market. These rules can be very simple or very complex. Simple strategies usually require only few confirmations, while advanced strategies may require multiple confirmations and signals from different sources.
Additionally, a trading strategy may contain some money management rules or guidelines. Some strategies (e.g., Martingale) can be centered strictly around position sizing techniques.
Apart from the entry/exit rules and optional money management guidelines, strategies are often characterized by the list of trading tools required to employ the given strategy. These tools are usually charts, technical or fundamental indicators, some market data, or anything else that can be used in trading. When choosing a strategy, you need to understand, which of the required tools you have in possession.
It is important to choose a strategy or system that is easy to follow with your daily trading schedule and that can be applied successfully with your account balance size.
Additionally, a trading strategy may contain some money management rules or guidelines. Some strategies (e.g., Martingale) can be centered strictly around position sizing techniques.
Apart from the entry/exit rules and optional money management guidelines, strategies are often characterized by the list of trading tools required to employ the given strategy. These tools are usually charts, technical or fundamental indicators, some market data, or anything else that can be used in trading. When choosing a strategy, you need to understand, which of the required tools you have in possession.
It is important to choose a strategy or system that is easy to follow with your daily trading schedule and that can be applied successfully with your account balance size.
