Trade Strategy Guide


In finance, a trade strategy is a method of opening and closing trading positions based on a fixed trade plan and a predefined set of rules and setups. A trade strategy aims to achieve high long-term returns by controlling the risk exposure through money management (MM) and my limiting the impact of the emotional human nature (greed and fear).


Day-Trade Strategies

Day trading is the act of buying and selling financial-traded assets on the same day.

The Basics of Day-Trade

These are some key issues you must consider in day-trading:

(a) Trading Cost (such as spreads and commissions)

(b) Depth of the market (sufficient volume activity for easy enter/exit)

(c) Significant volatility (that may create short-term trading-opportunities or increase risk)

Four Common Day-Trade Strategies

(i) Stop-Loss Day-Trade Strategy

(ii) Momentum Day-Trade Strategy

(iii) Scalping Day-Trade Strategy

(iv) Fading Day-Trade Strategy

Introduction to Day-Trading


Equity Day-Trade Strategies

Common day-trade strategies for trading stocks and indices:

(1) Momentum Day-Trade Strategy (Applicable to markets moving in strong trends)

(2) Trend-Exhaustion Strategy (Trading stocks or indices which tend to make rapid upward or downward movements, and then reverse)

(3) Scalping Day-Trade Strategy (Trading assets for a very small profit)

(4) Short-Selling (Selling the market through CFDs or standard options)

► Equity Day-Trade Strategies | ► CFD Brokers


Intraday Forex Trading Strategy -Forex Price Action

Price Action refers to a simple trading practice that allows traders to analyze any financial market without using indicators.

Introduction to Forex Price Action

Price Action is a trading method that reflects the flow of executed orders within a specific time frame. You may evaluate Price Action via empirical methods but the most reliable way is the use of technical analysis. What really distinguishes trading using Price Action compared to other intraday strategies is the use of naked charts with candlesticks and without any indicators or oscillators.

Understanding price action is a key issue when trading Forex Intraday. There is a great variety of methods and tools available for traders seeking to interpret the daily price action. These tools include Elliott Waves, candlesticks, Chart Patterns, major support/resistance, etc.

► More about Forex Price Action



Introduction to Automated Forex Trading Strategy

Automated trading is a branch of systematic trading which combines computer software and hardware in order to generate non-stop trading activity, without human intervention. All automated trading systems are systematic, but not all systematic systems are automated.

Basic assumptions of Automated Trading

  1. Historic results have at least some predictive ability {Sharpe 1994}
  2. Financial Markets are not perfectly efficient
  3. Financial Markets have a finite depth
  4. Regularities in financial data do exist, but only for short periods of time, a window of opportunity may open, and then at some future time it will close
  5. The financial data are driven by human psychology and societal decisions, and therefore are random and unstable

► Automated Forex Trading Strategies | ► Compare Forex Robots (EAs)


Arbitrage Trading Strategies

Arbitrage trading is an automated trading strategy that aims to exploit inefficiencies in the pricing of a financial asset.

What are Arbitrageurs?

Arbitrageurs trade the same asset on two different markets by opening two opposite positions (one Short and one Long). An effective arbitrage strategy does not include any market risk and offers small risk-free returns.

Cross-Broker Arbitrage Strategies

Here are two common Cross-Broker Arbitrage Strategies:

(i) Speed-Arbitrage Strategy

(ii) Hedging Arbitrage Strategy

► More about Arbitrage Trading Strategies 


Creating Custom Automated Forex Trading Strategies

For those aiming to build custom manual or automated strategies but they lack programming skills, there is an online application that offers a user-friendly interface and a wide variety of functions.

EA Builder Functionality

The EA Builder is a 100% web-based application that builds automated-trade strategies for MetaTrader-4, MetaTrader-5, and TradeStation platforms. The application can be used by every level of trading experience, and that includes even beginners.

Cost: Free for creating indicators, paid $97 USD ONE-TIME for creating EAs.

  • Hundreds of built-in functions (technical analysis and money management)

  • Applicable in every asset class (Forex, Equities, Commodities, etc.)

  • The final outcome is a compiled file, ready to be used in MetaTrader-4, MetaTrader-5, and TradeStation

  • Customer support and many video tutorials

EA Builder Free Indicators & Web App for Building Custom EAs


Trade Strategies Guide

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