Saturday, November 25, 2017

How To Setup a Consistent Forex Strategy

September 17, 2010 by  
Filed under Forex FAQ & Latest Post

Sorry for the lack of update for the last and this week as I am just back from a 6 days vacation with my family.

Below is the question by one of the readers of this blog.

Pls how do I draw strategy that can make me a consistent 20-30 pips per day

Pardon me for being frank as there is no strategy that can make you consistent 20 to 30 pips everyday. This is because there is no strategy that is able to give you 100% winning probability as losing is simply part of the game.

However what you should be looking for is a strategy that is able to generate for you a high winning probability of 60 to 70%. With a winning probability of 60 to 70% together with high risk reward ratio, you will be able to generate consistent income every month and this is what professional traders are doing.

One common problem with most new traders is they tend to trade everyday hoping to generate profits every single day. Most of them ended up with more losses than profits as they enter trades that are not according to their plan hoping to fulfill their desire to trade everyday.

For me, there are some days where I do not trade at all as there is no setup that is according to my plan and this is what I usually call discipline.

To answer your question, I will recommend you to trade forex breakout strategy as they are more noticeable and easier to execute.

Here is how you can draw a strategy that fits your trading style

Step 1: Learn the forex breakout strategy

Step 2: Practice it on your demo account

Step 3: Fine tune it by changing the setting of the indicators or adding indicators to help you improve your winning probability

Step 4: Trade consistently with this one strategy alone to verify its effectiveness

Step 5: Continue to fine tune it until you are able to win 60 to 70% of the time

Things to note:

Do not give up on any strategy that you have decided to use simply because of one or two losses. The key to successful trading is persevere and discipline to stick to your trading plan.

Comments

5 Responses to “How To Setup a Consistent Forex Strategy”
  1. Jimmy Chew says:

    I been trading unsuccesfully for couple of years. I know I cannot give up because I can see the great opportunity to change our life in forex trading. Any advise?

    • Kelvin says:

      Hi Jimmy

      You have the right attitude of perseverance.

      I believe that your unsuccessful trading could be due to the following

      – Lack of Discipline to follow your trading strategy
      – You did not have a workable trading strategy
      – You did not practice your strategy well enough to be able to execute it well.

      Maybe you have to sit down and think which is your problem and then I will be able advice you further. At the mean time, you can read this post that I have written as it may give you some insight.
      http://www.forexindicator.org/when-to-switch-from-forex-demo-to-real-account.html

  2. bola says:

    GOD BLESS U FOR YOUR CONSTANT ADVICE,SINCE I HAVE BEEN FOLLOWING THEM I DISCOVERED I ALWAYS HAVE SUCCESSFUL TRADING. ESPECIALLY YOUR STRATEGY ON FOREX TRENDLINES. I HOPE TO GET THE BOOKS ONCE I GET SOME MONEY.KELVIN
    GOD BLESS YOU KEEP ON THE GOOD JOB.

    SAHEED BOLARINWA
    NIGERIA

  3. duan x says:

    i agreed with you bro.many info i get from yr websites.
    keep updated and plus can you make a review about using robot/ea ?

    • Kelvin says:

      Hi Duan x

      Thks for visiting this site. I am unable to do a review for the EA/Robot as I personally is not using one. I feel uneasy telling people about something that I myself do not use.

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