The Best Trading Strategy in Forex
What is the best trading strategy in Forex?
The million-dollar question?
Before you read on.
I would like you to be reassured that I believe I am more than qualified to provide my expert opinion and the information in this article.
Firstly, I have provided transparency on proof I can trade successfully and make consistent trading returns. (link bottom of article)
Just as important, I have provided proof that I can actually teach to success. (link bottom of article)
Please ensure you read this entire article to save your valuable time and money in your search for trading success.
The Best Trading Strategy in Forex
Trading is a game of probabilities.
That is something you should always bear in mind.
Stacking probabilities on your side is the aim of the game.
The more conditions aligning for a trade the better.
You will never be right all the time.
Losses are mandatory in any Forex trading strategy so long as they are managed losses that is fine.
That is why you must align as much probability on your side to ensure you are right more often than you are wrong.
Searching for the best trading strategy in Forex.
You will likely come across various services offering all matter of Forex trading strategies.
The Best Trading Strategy in Forex is it Price Action?
Price Action only seems to be a firm favourite with some educators (and beginners)
Why? Because Price action trading with no indicators seems easier to learn.
Therefore it is extremely easy to sell to unsuspecting naïve new traders.
Then there is the so-called institutional education.
Those educators that may have a background in investment banking /Hedge funds push the narrative that retail educators do not know what they are talking about.
This anchors the brain to the bias of ‘they must know what they are doing they worked at an investment bank etc.?’
Both above whilst seemingly attractive to a new trader are in my opinion not suitable for a beginner and I will explain why.
Price Action no Indicator Trading
If you recall the statement above that trading is a game of probabilities?
That means you are required to obtain as much probability via conditions being met to give you the best chance of being right.
Back to price action and no indicators.
The chart looks clean and uncluttered.
That is normally a selling point and attractive to new traders.
Does a clean chart earn you money?
It is meaningless but is easier for marketing purposes.
No indicators, price action only trading is marketed as ‘simplified trading’
Trading is not a simplified process!
Price action in theory sounds simple but it is much harder for beginners.
In fact, the irony is this.
When using, price action only, your discretion and trend line that is only
3 x Conditions for your probability stack. (very low on conditions)
- Trend lines
Yes, there could be more criteria per individual point.
But it is still capping your probabilities.
Also, there is far too much emphasis on discretion.
Where you put your trend lines, and judgement on price criteria being met.
Discretion is something you want to ideally diminish to extremely low for a new trader.
The Best Trading Strategy in Forex is it Institutional?
You will require skills in.
So as a complete beginner you are likely going to be overwhelmed at the very thought of institutional research and analysis.
These services usually bash the retail educators.
You cannot really blame them since there is a lot of dodgy services out there.
For a beginner – this is the way hedge funds and institutional traders analyse and therefore trade, and it is how it is marketed.
Nothing wrong with any of that at all!
But as far as starting point for a beginner?
I would say it is a scary prospect.
You will require to undertake.
Proficient use of excel (you will need to complete a course separate to the trading)
Data analysis for companies and/or assets
Economic data analysis
Understand Options and Futures
A Broker to facilitate the assets so you can trade Long/Short on complex instruments
You will need approx. 10 times the period of time required to complete the analysis (compared to the Able method).
If you work full time you would barely have time to compete this accurately with your full focus and attention.
Then you need a large account to begin with £25,000 – £50,000 minimum.
That is just a summary.
And after all that work and effort, if you are very good you are still only right about 50%-60% of the time!
Moreover, while writing this on the 1st July 2020 Macro analysis has completely been decoupled from real economy.
I know there are macro traders not using protective stop orders (which is common place) which then leans into why you need massive amount of money in your account to supply margin when you are on the wrong side of the trade.
They have huge conviction on there hypothesis of a trade idea and go with it.
How suitable is this approach really for a beginner? It really is not.
There is only one thing that matters when trading the markets that is making money with strict risk management criteria.
In my opinion this should be provided to beginners in the easiest way possible.
Then there is the strategy which helps the beginner.
The Best Strategy in Forex Trading – The Able Method
The Able Method
Our trading strategy is in our opinion the best trading strategy in Forex.
It was used to obtain Net 71% return over 12 months and we have success with members.
The Able method uses.
4 x Indicators
The approach is a check list conditions being met.
When they are met you enter the trade.
Once the checklist has been completed you take the trade.
There is minor discretion required.
Because you are utilising more conditions including indicators you are stacking much more probabilities in your favour!
The Best Trading Strategy in Forex – The Able Method
- A proven Forex Trading strategy that yields positive returns.
- The Able Method – Proven strategy that helped Able Trading member Tim Davies become a full-time trader.
- Proven positive yielding strategy by members of Able Trading who have back tested the Able method.
- Simple to identify trading conditions.
- Checklist style criteria a clear plan.
- Minor discretion required.
- Aids your confidence.
- Is in fact simpler than price action because of reduced discretion
- Easier to back test because of minor discretion.
- All Able Trading members agreed that trading with indicators is easier and clearer than price action trading!
The best trading strategy in Forex especially for new traders is made up of a few key components.
Here at Able Trading we provide this very approach to trading education for new and struggling traders.
Because we care about how our members progress it is important to break down the education.
We provide this is easy to follow step by Step video Lessons.