The Forex Strategy That Works Every Time is…
You are looking for a Forex Strategy that works every time and it can be a bit of an irritating process to dig through forums, blogs, and YouTube videos. Sparing you the effort of going through this chore is a delight because the answer is that every Forex Strategy works every time.
What?
Yes, that’s right every Forex Strategy works every time.
How?
Glad you asked. See this is the case because the Forex Strategy has rather low-hanging fruit to actually meet such a vague goal that you had defined.
- You wanted a strategy in Forex that worked every time. Mission accomplished because a trade executed.
- You went through the effort of trying out the strategy, which may have been the intent in the first place!
- Sample size of trades can be deceptive, but it could fit into the narrative of “working every time”. After 100 trades, it is entirely possible for a trader to use a 1:200 Reward-to-Risk Ratio. It happened to work every time as every trade executed resulted in a profit. Is it going to necessarily going to work every time? Absolutely not.
You might be thinking, “That’s not what I meant at all!”
Yes, you were in the hunt for the “Holy Grail”. The method of trading that results in positive profits on every single transaction. No such thing exists, even arbitrage can mess it all up and be unprofitable thanks to slippage.
Slippage is the phenomenon of traders getting a different price than they would have upon entry and exit. Prices change in the middle of the order, typically due to high volatility and it results in a different entry or exit point. Negative slippage takes place when orders are filled at a less advantageous price than planned or intended. Positive slippage takes place when orders are filled at a more advantageous price than planned or intended. Positive slippage can result in immediate profits and larger profits while the vice versa is the case with negative slippage.
Even Virtu had one losing day in the markets. They are a latency arbitrage firm and if they could have a losing day, anyone can. Who are you to doubt Virtu?
Does this mean that it is impossible to make money in the Forex Market?
No. It is very possible, it’s just that you have to understand that there will be losing trades and even losing days. However, it is better to not have all your eggs in one basket when in the market.
Data mine, backtest, act on fundamental analysis sentiments (through Freevestor Signal Funds) and forming your own portfolio (through the creation of several sub-accounts) is the best path. It’s not that crazy to do this. Not being overleveraged and having enough funds to enter the market also make a difference as well. Think of Forex much like investing in the stock market, but you are doing it with currencies and with leveraged funds.
That seems like work. Boring, mentally exhausting work, doesn’t it? Well, that’s life. Trading systems have to adjust over time and if they do not they “blow up”. Attaining positive alpha is extremely difficult, you are in the same marketplace as Financial Engineers and Quants who graduated from M.I.T..
What’s ‘alpha’?
It is what you are seeking. Excess returns over a measurable market index. When it comes to retail Forex traders, breaking even could be considered amazing alpha, but this is a frightening low bar. Setting reasonable benchmarks is key and researching hedge funds and mid-level PAMMs could be the best way to do this since it is so challenging to create benchmarks for currency trading in the first place. Beat the benchmarks and you have positive alpha.
Preaching sanity, restraint and responsibility is tough in an industry full of promises, capitalized letters, hype and disappointment. There’s plenty of tough love here. A Forex Strategy that works every time will not magically appear, but as stated there are things you can do to get ahead.
The good news is that if you keep tuned to Freevestor, you will learn more and of course if you deposit through Freevestor, you get a monthly distribution. (Feel free to try out some of our Signal Funds in demo accounts through our preferred brokers if you want.)
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