Forex trend following strategies

Trend-following strategies are among the most widely used strategic approaches in forex trading. The basic principle of all trend-following trading strategies is the same: It is an attempt to identify a course pattern, in which it is a high probability of a trend intact. This trend is then followed.

The trend-following strategy is understood as rule-based signaling system that generates when certain criteria an entry signal. In addition, an exit signal is generated when the list of criteria no longer met and the likelihood that the present trend is broken, is large.

Trend-following strategies are based on upward trends as well as on downtrend. So investors are betting on both rising and falling prices. In addition, trends are traded over different time horizons. A trend-following strategy can identify trends that exist only a few minutes or hours, and also find those who drag on for several weeks or even months. In Forex trading positions due to the high leverage, however, are rarely kept as long.

Trend-following strategies are well suited for traders who do not have much experience with systematic trading strategies. They are relatively easy to handle and require less endurance than the investor strategies outbreak, because the hit rate is higher. The basis of trend-following strategies are usually several trend-following indicators, which may or similar to an oscillator be filtered. The development of such an approach on its own can certainly be done by less experienced traders. Those who do not own the development trusts can also use ready-made systems.

Because trend followers are very popular, there are numerous proven approaches that one can be taken to one. In addition, many services are available free signal that tells the system generated by the trade entry and exit signals.