Looking back when started trading back in 2015 in the world of forex there have been some things that have changed and some still remain the same. Below I'll go through 6 core strategies that I used to use and still do with many of them today
2015 was a year marked by significant economic events and market volatility, making it imperative for traders to employ a range of strategic approaches. Successful forex trading in this period demanded a combination of adaptability, analysis, and risk management. Here, we delve into some of the most effective forex trading strategies that dominated the landscape in 2015. Economic events like Quantitative easing that boosted European markets through many for a loop.
1.Trend Following Strategy: Riding the waves of trends was a favored approach. Traders meticulously studied long-term and short-term trends using technical indicators such as moving averages and Relative Strength Index (RSI). By entering trades in the direction of the prevailing trend, traders aimed to capitalize on sustained price movements, often achieving impressive profits.
2.Breakout Strategy: The volatility in 2015 offered traders ample breakout opportunities. The strategy involved identifying key levels of support and resistance and waiting for a breakout above or below these levels. The breakout signaled a potential shift in market sentiment, leading to quick gains as price surged beyond established ranges.
3.Carry Trade Strategy: In a year characterized by divergent global monetary policies, the carry trade strategy gained traction. Traders leveraged the interest rate differential between two currencies to earn profits. They borrowed funds in a currency with a lower interest rate and invested in a currency offering a higher rate, pocketing the difference.
4.News Trading Strategy: With central banks around the world announcing significant policy changes and economic indicators creating market-moving events, news trading was a popular approach. Traders closely monitored economic calendars, reacting swiftly to news releases that often led to sudden price fluctuations.
5.Range Trading Strategy: The increased volatility also saw traders adopt range-bound strategies. They identified well-defined levels of support and resistance and executed trades when prices approached these boundaries. Profits were made as prices oscillated within the established range.
6.Diversification Strategy: Sensing the uncertainty in the markets, traders diversified their portfolios across various currency pairs. This strategy aimed to spread risk and capitalize on different currency dynamics, potentially offsetting losses in one trade with gains in another.
So 2015 was a year of both challenges and opportunities in forex trading. Traders navigated through the turbulent waters with a diverse set of strategies, adjusting their tactics to suit the evolving market conditions. Whether capitalizing on trends, breakouts, interest rate differentials, news events, or range-bound movements, the successful forex traders of 2015 demonstrated a keen ability to adapt and thrive in a constantly changing trading environment.
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