by Splendid Island (Editor), Heikin Ashi Trader (Author)
Forex TradingThe Complete Series
As is well known, currency markets are determined by news. However, since news is rare, most currency pairs move sideways 80% of the time. In other words: it is very difficult to trade currencies profitably with trend strategies. The "Forex Trading" series therefore deals with strategies that are specifically designed for sideways markets.
Heikin Ashi Trader also discusses why traders who specialize in forex trading tend to trade only one strategy at a time. They do this because they believe it is superior to other trading methods. Unfortunately, this approach makes them vulnerable to the ups and downs of this single strategy.
However, by distributing profit and loss over several strategies, the trader creates an indifference towards the series of losses of each single strategy. If he looks at it as an investment security in his portfolio, just like a stock or a fund, he gets a more objective view on what is going on in the markets.
Part 1: Two round number strategies
Introduction
Strategy 1: The round number strategy
Strategy 2: The Stop Hunting Strategy
Consider forex trading like a probability game
Part 2: Two strategies with weekly pivots
How to trade the weekly Pivots
Strategy 1: Trade the Pivot
Strategy 2: The "last 20 Pips" Strategy
Should I change the parameters if trading is not going well?
Part 3: Trading with the Weekly High and Low
Introduction to trading with the weekly high and low
Strategy 1: Chase the Weekly High and Low
Strategy 2: Weekly High and Low Stretch
Practical questions
Part 4: Trade several strategies simultaneously
1. Why you should trade several strategies at once
2. Less volatility in the capital curve
3. How many strategies should you trade simultaneously?
4. Is it possible to diversify, even with small accounts?
5. When should you start using leverage?
6. Forex trading is a business