Different Trading Strategies

I had a question that which would be good to answer for all to learn from.

I will answer each question in a separate paragraph”

What do you think about choosing 4 different strategies/entries for 4 different stages of market: breakout,trend,reversal,range?

Absolutely.  I would trade a breakout differently than I would a reversal which I assume you mean a pullback

Trading in a range is much different than a trending market.  One good thing to do is mark off new highs on the chart.  When price pulls back, I would be looking to trade back in the direction of the trend.  Having the line at highs (or lows) already in place, helps me scan the charts quicker.

Price can also pull back and fail into a trading range.  If you like to trade bounces between the two extremes, you would use a different strategy.

I would personally master one way and then move onto another to add to my toolbox.

You can see an example of these four types of trading in my free weekly Forex setups.

Or would you focus on 1 market stage and trade more strategies of same kind?

No.  A pullback is a pullback.  A range is a range.  I don’t feel the need to get bogged down in too many approaches to the market.

Would it be better to trade multiple strategies on fewer pairs or multiple pairs with fewer strategies?

I scan through all FX pairs and other markets to see if any setup matches my criteria.  It is a quick scroll because if a setup does not jump out at me, it’s not worth trading.

Do you care about specific pairs in your portfolio or you trade all 28 majors/crosses as long as you don’t take correlated trades at the time?

No specific pair and I don’t really care about correlation in the FX pairs.  Not all of my setups have a look that is worth trading and rarely do I ever have competing setups in related pairs.

Any questions, please put them in the comments.

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  1. IP