How market types shape strategy
Markets move up, down, or sideways; matching your approach to the prevailing condition is the first step toward consistent results. In bull markets, buying on dips and using trend-following tools helps capture extended gains; in bear markets, strict risk controls and hedging preserve capital; in sideways markets, range and mean-reversion methods tend to outperform.
Top 15 strategies — practical view
Below are the 15 strategies with concise, actionable notes on when to use them and how to set them up.
- News Trading — Prepare with an economic calendar, predefine entry rules for event-driven volatility, and use tight risk controls to avoid whipsaws.
- Trend Trading — Use multi-timeframe moving averages and trailing stops to ride trends while protecting profits.
- Range Trading — Trade near support/resistance with oscillators (RSI/Stochastic) and plan exits before range edges.
- Day Trading — Focus on liquid pairs, define session bias, and keep a strict intraday risk budget.
- End-of-Day Trading — Use daily closes and pivot levels to plan low-frequency trades that avoid intraday noise.
- Swing Trading — Combine trend filters with Fibonacci retracements to enter on corrective moves.
- Scalping — Prioritize ultra-low spreads, fast execution, and automated order routing for consistent micro-profits.
- Position Trading — Base entries on macro fundamentals and weekly/monthly structure; accept wider stops for larger moves.
- Price Action Trading — Read candlestick context and market structure to keep setups simple and robust.
- Gap Trading — Use pre-market volume and news filters; expect higher slippage and set contingency exits.
- Algorithmic Trading — Backtest across regimes, monitor live performance, and host strategies on a reliable VPS for uptime.
- Breakout Trading — Confirm breakouts with volume and wait for retests to reduce false signals.
- Momentum Trading — Enter with momentum confirmation (RSI/MACD) and scale out as momentum fades.
- Mean Reversion — Use Bollinger Bands and moving averages to trade returns to mean; avoid during trending markets.
- Fibonacci Retracement — Combine retracement levels with price action for higher-probability entries.
Tools, execution and automation
Choose platforms and data feeds that match your strategy: low-latency brokers and Level 2 data for scalpers, robust charting and backtesting for algorithmic systems, and reliable economic feeds for news trading. Consider a VPS for automated EAs and to reduce slippage during volatile sessions.
Risk management and position sizing
- Risk per trade — Cap risk to a small percentage of equity (commonly 1–2%) and calculate position size accordingly.
- Stop placement — Use market structure and volatility to set stops, not arbitrary distances.
- Daily limits — Define a maximum daily drawdown to prevent emotional overtrading.
Backtesting, forward testing and review
Backtest across multiple market regimes and then forward-test on a demo or small live size. Keep a trade journal to record setups, deviations, and emotional notes; review monthly to refine rules and remove edge erosion.
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