Trading Strategies

Collection of custom forex trading strategies. Read our detailed strategy review and set ups.

Breakout Trading Strategies

Breakout Trading Strategies

Trading Strategies
Breakout trading strategies are quite popular just as trend trading strategies. In fact, compared to trend trading, breakout trading strategies are likely to come out higher. This is due to the fact that the markets tend to be in a range most of the times. The profit potential from break trading strategies are bigger and quicker, compared to trend based methods. With trend based methods, profits are not quick to come by. With a trend based trading strategy, you will have to hold on to your position for a prolonged period of time. The main benefit of using a breakout trading strategy is to capture the big gains based on the volatile breakouts. Despite the quick gains, breakout trading strategy can also result in significant losses. To avoid this, find an edge by getting familiar wi
Credit Spread Adjustments: Delta Hedging with Stock

Credit Spread Adjustments: Delta Hedging with Stock

Trading Strategies
One of the most effective ways to adjust a broken out-of-the-money vertical spread is with stock. So many of us in the retail world—having been introduced to the flexibility and/ or leverage of options—seem hotly opposed to taking a position in an underlying stock, ETF or futures. Many of us would rather torment a simple vertical spread with layer upon layer of complicated adjustments, so that what started out as a hands-off strategy becomes a position that must be constantly tweaked—the original thesis for the trade reduced to a footnote. The Decision to Adjust Often the biggest risk to a credit spread is price: a trader establishes a position and price woefully moves in the complete opposite direction than anticipated. When trading out-of-the-money credit spreads, the general ass
What are straddles?

What are straddles?

Trading Strategies
With the implied volatility of the S&P 500 Index (as represented by the VIX) touching 18 and the 20 day Realized Volatility down at around 8%, I’ve been hearing quite a bit from students and colleagues about long gamma positions – straddles in particular. The idea is that volatility is so low that options are under-priced and should be purchased in bulk to profit from the impending price explosion. Without necessarily arguing for or against that position, what follows are some thoughts on what I believe to be very basic options strategy. The purpose of the straddle is to profit from either a gain in Implied Volatility or Realized Volatility (ie: a sudden change price movement). Since most beginning traders buy straddles in the hope of cashing in on an unforeseen breakout, it m
Trading with stage analysis, the Stan Weinstein way

Trading with stage analysis, the Stan Weinstein way

Trading Strategies
Stage analysis trading strategy is a relatively popular trend trading strategy that was discussed in detail by Stan Weinstein, in the book, Secrets for Profiting in Bull and Bear markets. While the basic principle of trading with stage analysis is merely following the trend, Stan Weinstein gives a more structural approach to this trading strategy. According to Weinstein, stage analysis uses chart patterns in order to derive the four stages in a security's price. Once the stages are determined, there are specific guidelines that determine when to buy and sell. Stage analysis was initially described for the stock markets, but could very well be used for the forex markets as well. With stage analysis, traders can hold on to positions and helps to enter the trend at a relatively early stage...
Five tips to better Support and Resistance trading

Five tips to better Support and Resistance trading

Trading Strategies
Support and resistance also known as supply/demand form one of the basic elements of trading, perhaps only next to price action. Whether you are trading with moving averages or Bollinger bands, chart patterns or Fibonacci levels, the basic reason why prices behave the way they do has got to do with support and resistance levels. Fibonacci aficionados might continue to believe in the 'magic' element of the golden number and its derived levels, but as a matter of fact, it is the support and resistance levels behind the price action than indicators or a 38.2% Fib retracement. This article assumes that the reader already knows what support and resistance levels are. It merely builds upon this information and explores easy to use tips that will definitely help you to trade the support and re...