Forex Trading Systems (55)

4.42/5 (202 votes)

This strategy was manly inspired from Guppy Moving Average and some other rainbows trading approach. In addition, there is another indicator called VolcanoWMA that provides the arrow and alert signal. The strategy determines the trend with the WMAs and enters the trending market using the VolcanoWMA indicator at the best timing.

3.46/5 (210 votes)

This strategy can be used as a scalping method as well as for long term trades. It uses 24 ema to look for bouncing back of the price and enter the market with a buy limit order. It is not 100% accurate but it has consistently been profitable and anyone can adapt the strategy to his or her preference.

3.99/5 (206 votes)

The major problems of most strategies are entry and exit. A lot of trend trading techniques are out there but there are a few ways to filter entries and exits. In this strategy, the trend is determined by the direction of the BBands_Stop. After the trend is determined, we then move on to find a good entry and a good exit using the Fisher indicator and the Stochastic indicator with multi-timeframe analysis. It can be profitable if one can follow the rules of this trading strategy.

4.19/5 (204 votes)

The Pouria Method is a low risk and has a good risk-to-reward ratio. It capture only 15 pips of profit regardless of how big the trend. The reason is to avoid high risk. To have a good risk-to-reward ratio, the stoploss is set to 14. Due to the above two reason, the success rate can be as high as 90%

4.36/5 (203 votes)

This strategy should work well long term with this system and does bring in a good amount of pips per month. One can start trading at 6 am EST and wait till the trades are found. Usually within 3 hours, you are done.  At all times, one should follow the trading rules as a trader that is consistent in his rules is a successful trader.

3.17/5 (209 votes)

In this strategy, the TDI (Traders Dynamic Index) is used as it uses some of the most powerful indicators such as the RSI as well as other types of calculations to determine the trend and momentum of the pairs. The trade is then confirmed with the combination of the Synergy APB (Average Price Bar) Candle indicator and the Simple Moving Average.

3.58/5 (202 votes)

This strategy allows us to find the best price to buy when the price is low and sell when the price is high. As it is a scalping method, hence the currency pair EURUSD with the lowest spread is recommended. As with any other strategy, there is no holy grail so one has to be careful during strong trending market as this strategy tends to work better during range-bound market.

4.14/5 (209 votes)

In this strategy, we are using the VMA indicator that is different from a regular SMA or EMA in that the VMA indicator have a variable of ADX worked into them. ADX measures the strength of trend, so basically we have a moving average that will move when prices are trending. When things are consolidating, the VMA will not move and may even go flat. This helps to solve the major problem of MA with its whipsaw nature. This strategy uses VMA 1 and VMA 4 in which VMA 1 uses ma length of 1 and adx length of 8 whereas VMA4 uses ma length of 4 and adx length of 8. Both indicators of VMA 1 and VMA 4 can go flat without crossing during sideway market and cross when the market is trending.

3.59/5 (313 votes)

In this system, we are looking for candle stick formation near the Bollinger band, in which the candle sticks are three consecutive bullish candles known as three white soldiers, and three consecutive bearish candles known as the three black crows. This system works best when the price has just bounced off the Bollinger Bands.

4.57/5 (324 votes)

This system uses three different EMAs indicator, Heiken Ashi Smoothed indicator and fractal indicator to enter a trade. The EMAs determine the trend, the Heiken Ashi Smoothed indicator is used for more visual confirmation and the Fractal indicator is used to confirm the breakout of the trend. If someone is in London zone, you will likely get the nice setups around 3 am and get a nice chunk of pips in a couple hours of trading. GBPUSD is a very volatile currency pair and has a nice daily trading range to make a few pips out of it.

3.79/5 (323 votes)

This trading plan allows us to detect ranging markets as early as possible. It uses EMA 5 and EMA 34 to forecast upcoming sideway market. After identifying the closest swing high and low, two horizontal lines are drawn to identify the boundaries of the ranging market. When the price touches the horizontal line and bounce back in reverse, this shows a very high probability that the market is ranging.

4.58/5 (312 votes)

This strategy uses a 10 bar moving average and a Bollinger Band 1 standard deviation on each side on a 5 min chart. It allows the user to enter the market on the retracements. It uses two different moving averages to determine the trend, and enter the market on the that penetrates the Bollinger Band during pullback.

3.71/5 (336 votes)

One of the methods to distinguish range-bound conditions from trends is to look at the WellxAMA indicator. It allows us to switch our strategy according to the current market situation. If the WellxAMA indicator showing dots of the same color, it means the current trend continues. But if the WellxAMA indicator showing missing dots, it is an indication of a sideways moving market ahead.

3.15/5 (307 votes)

Hedging can be profitable if it is done using correct method. One way to be profitable is to earn from the daily swaps, and at the same time to remain safe from the market movements. In this article, we are looking into a combination hedge of 4 pairs without having 2 broker accounts of risk a major drawdown. Anyone can start with a demo account and gradually increase their position.

4.33/5 (306 votes)

In this article, we look into the stochastic for divergence by comparing the price action and the movement. When traded properly, it can be consistently profitable with divergences. The great thing about divergences is that you can use them as a leading indicator. This makes the risk on your trades are very small relative to your potential reward.

4.34/5 (318 votes)

TD Sequential is designed specifically to predict potential price exhaustion and likely price reversals. This methodology is designed to become progressively less bearish as price declines and, conversely, less bullish as price advances, contradicting the behavior of most trend-following traders. TD Sequential provides much-needed discipline and removes the emotions associated with trend trading. It also gives a distinct edge to traders who operate in size, allowing them to buy when supply is most plentiful and to sell when demand is most aggressive.

4.34/5 (356 votes)

This strategy made use of a simple range-bound forex trading method which has great profit potential. It identifies important support and resistance levels on the hourly chart by using the SuperSR7 indicator. In addition to the SuperSR7 indicator, a stochastic oscillator is used to pinpoint possible long and short entries in the market.

3.56/5 (345 votes)

This strategy involves the use of 3 candles with EMA 10 to scalp 10 pips on half of the open position and trail the rest of the half open position to grab as many pips as possible. This simple scalper trading method has been use for the past couple of months with consistent success but have to sit at the computer and watch for the trading to setup. We just need to grab a few pips a day, repeat and hold on to those trades, while building our trading account up to a serious amount. Trading does not have to be difficult, time consuming, complicated, and stressful in order to be profitable, rather, it should be simple, and consistently. In trading, as in many other things in life, complex isn’t always better, many times it is useful to keep things simple.

4.59/5 (360 votes)

This strategy involves the use of the 18 EMA & 28 EMA (two blue lines) to form a tunnel, which will help us to determine the start of a trend and the end of a trend. The 5 WMA (green line) & 12 WMA (purple line) will show us when to enter a trend and they will also help us to see the strength of the trends. The method is simple, useful and has good bases for entry confirmations.

3.59/5 (352 votes)

This strategy is very profitable and all it takes is just some practice. You will see its true value with a little bit of forward testing. The center of gravity indicator was created by Oan. The idea is based on Mostafa Belkhayate's system. Also the sweet spots indicator was taken from "Patrick Bourgeois" with his submission of "Trading by Psychological Levels". The center of gravity indicator helps us to look for the trend and the sweet spots indicator help us to enter and exit at the psychological levels.

4.44/5 (347 votes)

It is common to see the price bounce off the Bollinger band when the price closes outside the upper or lower Bollinger band line. Using this fact, we can confirm with the stochastic to look for overbought and oversold zone. The risk to reward ratio on this strategy is not but has a high accuracy rate so it is advisable to trade at own discretion.

4.59/5 (373 votes)

Big Ben Strategy is a day trading strategy that takes advantages of the 24-hour trading possibility. It is meant to be used with GBP/USD mainly. According to that you should capture the first directional intraday move after the market opens in 6am GMT. The first big move will usually happen within couple of hours.

3.65/5 (378 votes)

Economic news tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U.S. economic news, but also to news from around the world. So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.

3.68/5 (374 votes)

This force 5 min system can produce good profits if traded correctly. By good profits, it means we can make pips everyday even if it is only a few pips. This strategy works well on the EURUSD pair during the Asian session and the London Session.

4.01/5 (387 votes)

This strategy is used on the 4 hour charts as it is less volatile then shorter time frames and much more profitable. It comprises of the NonLagMA and the stochastic. The colors of the NonLagMA trigger the trades, and are confirmed by the stochastic. The NonLagMA is a common Moving Average indicator but with an improvement that shows the angle changing from the changing colors.

4.27/5 (369 votes)

This strategy is used on the 4 hour charts as it is less volatile then shorter time frames and much more profitable. It comprises of indicators which are MA 8 and MA 21, Parabolic SAR, stochastic and the MACD. The crossing of the moving averages triggers the trades, and is confirmed by the Parabolic SAR, stochastic and the MACD indicators.

4.54/5 (335 votes)

The system is called "early bird" because it requires a trader being ready to trade forex as early as 10:00 am GMT. It is an advanced morning strategy tightened to the timing factor.

4.82/5 (367 votes)

The combinations of SMA 9, SMA 100 and RVI indicators have created a good strategy to find the trend which can grab 100-200 pips per trade. You may generally have periods when the price may whipsaw 1 or 2 times in a row, but 80-90% of the time when the 9 crosses the 100, you will catch an awesome movement.

3.34/5 (351 votes)

This is a simple strategy that requires two simple indicators, that is, Macd and Stochastic on a daily timeframe. The longer the time frame, the lesser the market noise. Hence, the stochastic and the Macd tends to be smoother on the daily timeframe chart. However, we would need the patience to wait for the entry signal as each bar represents one day, thus a change on the chart will observed once a day.

4.28/5 (368 votes)

This system has been tested for quite some time now, and has a very high probability rate of winning. The system is very simple and though it cannot guarantee massive profits, but we will get consistent returns. It utilizes dual time-frame momentum and EMA Crossovers on the 5 minute chart and the 30 minute chart.

3.33/5 (382 votes)

As we know the market's reaction is a little bit unpredictable in this era and there is a lot of events and scenarios whereby the daily trend can be changed within few minutes. A vigorous research was done on this 63 EMA breakout strategy, and it was found out that there are 95% of wins and 5% of loss trades. After doing back testing, it was found out that there are only 5 loss within 7 months from Nov 2008 to May 2009. This strategy works only for GBP/USD pair because of its great volatility.

4.60/5 (384 votes)

This method was derived after it has been shown to do well when doing backtesting of the historical data. It has a 1:1 risk reward ratio and it is relatively easy to use.

4.15/5 (374 votes)

The Val_Bands indicator provides a exit method for those who hate "losing those pips" which come with a great market move and then vanish immediately (or shortly after) on a reverse. When the price shoots (up or down), it creates an out of the range tall candlestick. Many traders know about this fact, but the main challenge is that when you look at the charts how do you tell when the candle is tall enough and when not. The solution came with this Val_Bands indicator that combines similar to Bollinger bands algorithm and Candle Length Volatility. The indicator also provides an entry method in which the indicator will show the active trend.

3.69/5 (376 votes)

The Adaptive Laguerre filter (ALF) is a variation on the Laguerre filter using a variable gamma factor, based on how well the filter is tracking a past lookback bars prices. Like other adaptive moving averages, it will track trending moves closely but will change less in range-bound markets. It's a pretty responsive RSI successor constructed using only 4 bars of data, but compared to the regular RSI it has way less noise (whipsaws) considering its fast reaction speed.

3.16/5 (393 votes)

The London Forex Rush system is based on a powerful trading system that comes from the world of the stock markets. Intra-day stock traders have been exploiting the Open Range Breakout strategy for ages. And they continue to do so. That’s because this strategy is easy to understand, simple to execute, and above all, profitable.

3.80/5 (368 votes)

The combination of the T3MA indicator and the Time Series Forecast indicator have resulted a trading system that can be used to provide trade signals. It performs well in higher timeframe such as H1 and H4 time frame.

4.23/5 (380 votes)

The Heiken Ashi indicator is used by technical traders to identify a given trend more easily. Hollow candles with no lower shadows are used to signal a strong uptrend, while filled candles with no higher shadow are used to identify a strong downtrend. This indicator is used in combination with stochastic to seek the overbought and the oversold zone to make a profitable trade.

4.26/5 (381 votes)

The SHI Channel indicator uses the highest high and lowest low of the price to determine the upper and lower bands of the channel. The channel is calculated according to the given period of calculation and the time frame of the used chart, and the channel is self-adjusted (Like the Bollinger Bands). The channel gives the overall direction of the price movement - up or down - and may change from time to time, especially if it used with a low timeframe of one minute and five minute. We can’t trade with the SHI Channel indicator alone, it will not tell you when to enter the trade neither when to exit, The SHI Channel indicator telling you the overall direction of the price trend and the channels with the middle line warn you how much the trend is strong or weak, however, we have to use another indicators to generate the entry/exit signals

4.60/5 (361 votes)

Heikin-Ashi is great for trading all currency pairs. It is a strong and reliable indicator for intraday trading and scalping with small time frames like 15min, 5min and even 1min. On the other hand, it is also perfect to ride the big and continuous trends in the big time frames like daily and 4 hours.

4.16/5 (357 votes)

The slope direction line makes use the method of moving average to draw out its line. It does shows the trend that allows user to get into the trade and be profitable in higher time frame such as H4, but may not be good in the smaller time frames.

4.32/5 (368 votes)

Signal Arrows Indicator is a combination of two Moving Averages to give the bullish and bearish Signal Arrows. It draws an arrow up when the EMA 7 cross EMA 34 and EMA 7 is above EMA 34. It draws an arrow down when the EMA 7 cross EMA 34 and EMA 7 is below EMA34. It makes trading much easier without interpreting all the moving averaging crossovers manually and make visual backtesting easier with the Signal Arrows.

4.14/5 (349 votes)

Sidus Indicator is a combination of two Moving Averages and an RSI to give the bullish and bearish sidus arrows. It draws an arrow up when the RSI is more than 50 and EMA 15 is higher than EMA 34. It draws an arrow down when the RSI is less than 50 and EMA 15 is lower than EMA 34. It makes trading much easier without interpreting all the indicators manually and make visual backtesting easier with the sidus arrows.

3.94/5 (369 votes)

Trading system based on BBands Stop Metatrader custom indicator. It shows the trend opportunity and the Stochastic Oscillator allows us to look for a retracement for a better trade entry.

4.13/5 (380 votes)

This is a simple mechanical trade system to trade breakout from the high and low of the First Four Candles. Very easy to use and requires no indicators.

3.85/5 (382 votes)

SuperTrend Indicator shows trend opportunity and Parablic SAR indicator provides fast exit for bigger profits

3.97/5 (374 votes)

This trading system is used on a daily timeframe so entries will occur only one or few times a month. You can gain 1000 pips or more on a single trade.

4.43/5 (367 votes)

Breakout trading tends to occur after periods of extended price consolidation. The breakout box can be used to find areas of price consolidation and to take advantage of these markets when prices break through support or resistance. We call these areas of price consolidation breakout boxes. Traders can take advantage of breakouts to jump early into newly forming trends with the potential to make extended runs once prices breakout, or to find areas of price consolidation within an established trend. This system makes use of the breakout box indicator and an 85 EMA to find a good signal

3.60/5 (373 votes)

Divergence is a useful tool for finding price reversal points from support and resistance zones. It usually gives us a relatively early signals compared to those given by moving average indicators. It can be successfully applied to many technical indicators and end up with good results.

This system makes use of two indicators. The first one is the Divergence indicator that will plot the divergence lines and the second one is the Bollinger Band. The Divergence indicator gives buy/sell signal according to the type of divergence that was detected. The indicator also is capable of drawing divergence lines for the whole history prices located within a specific chart.

3.34/5 (389 votes)

This is an easy system with two indicators, namely the trend magic indicator and the BB Macd indicator. Both indicators are the one of the best indicators out in the forex world. When doing visual backtest on the charts, you will notice that these two indicators work together hand-in-hand to confirm each other for good trades.

3.10/5 (389 votes)

How do we know when the trend started ? Well, the answers awaits in the article below. Most of the day, there will be some trends. The success in trend catching is how accurate is the system itself. Another success is not to be greedy as greed is one of the worst enemy to us, and so we scalp the trend. This system is a 1:1 risk-reward ratio as we want to protect our capital and profit at the same time.

4.34/5 (384 votes)

This trading system is used on 4 hour timeframe and entry is made 1 time a week. In most case You will get Your both take profits hit and You can make up to +400 pips a week

4.98/5 (389 votes)

This trading system is used on 15 minute timeframe, but entries will occur few times a week only. This is because we will use special indicator settings that filters most of the bad trades.

4.23/5 (417 votes)

This trading system is for long-term traders. Entry setups occur a few times a month, so this is good for traders that do not trade Forex market every day. Every trade is secured with stop loss and take profit is set. This helps to avoid big drawdowns and You sure will be profitable in the long run.

4.84/5 (401 votes)

This trading system is used on 1 hour timeframe so entries will occur few times a week. This system uses two trend indicators so entry points are pretty accurate. To use this system You just need to take a look at the charts every few hours as all entries are made only with the new candle

3.27/5 (397 votes)

If You dont like staring at the screen for hours everyday and just want to make a few trades per month, You have found a trading system that may fit Your needs. You just need to look to the chart once a day to see if the possible trade is coming. Once You identify the trend and entry rules are met, You can place pending order or wait for that perfect entry.