Success in Forex trading is a relative term. It does not refer to a few occasional profits, but marginal gains that are consistent over the entire trading career and ensure that the risk-adjusted returns are always sustainable. Using your trading account in the right manner and with astute planning always leads to rewards.
The key to getting the best returns in any strategy boils down the math. While Forex trading in India, Traders need to identify the best outcomes based on their position sizes and risk-reward ratios before they execute a trade.
The following strategies are some novel and effective online trading strategies that provide the best average profits and keep the losses low:
1. Winners Bigger than Losers strategy
In this strategy, traders engage with a simple math in mind. They participate in a number of short-term trades where their only aim is to make more number of profits than the number of losses. They usually engage in a random trade with a random price action but ensure that they bring back maximum profits. This is an arithmetically simple and effective trading strategy.
2. Pyramiding Strategy
In this method, traders execute their positions with a snowballing effect on their mind. They improve on a winning position by adding more capital to the position at predefined intervals. This way, an initial risk of 1R can be potentially turned into an nR profit by adding a new position onto the trade as it moves in favor of the trader.
3. The Reverse Martingale
This method is similar to the one previously discussed. However, in this case, the Forex trader will be doubling and compounding the risk per trade across multiple trades. Here, the trader uses profits from one trade and re-invests them in the next trade. This way, the trader only risks 1R but can compound the profits using the market’s money.
Such novel strategies can enhance the trading account and bring profits to the traders at the same time. These strategies work effectively while Forex trading in mature markets like India. Using trading strategies efficiently can help traders double their rewards. Alongside a great strategy, it is vital for traders to have the guidance of experienced players in the field. Allying themselves with a top Forex broker firm like WesternFX can help them improve their profits and keep their losses low.
