Many people are interested in trading in the forex market because they are attracted to the fact that said market is open and running 24 hours a day and moves more money than the European and American stock markets combined. If one wants to succeed in this market, he has to have a good strategy that will support him as completely as possible.
Most forex traders rely on the economic data that they themselves have gathered, but those who have less time to devote to such a process often choose to use an automated forex trading program to locate successful long-term and short-term strategies for them. This is because they understand that this market is one of the most volatile in the world, and sometimes help is needed.
Therefore, those who want to keep up with the forex game turn to long-term strategies. This is considered one of the best techniques in this very competitive market. You have to keep in your mind a few things when you choose them:
1. Max DD: Maximum Draw Down – The largest drop from net balance peak to net balance valley. The market is unpredictable and a strategy that risks a lot isn’t always a great choice unless it offers very high rewards.
2. The PAR: If the strategy offers a much higher return than what it risks, consider using it.
3. Profit Factor: Shows how many times the gross profit exceeds the gross loss. The larger is this value, the better.
4. High Level of Equity: If you wish to open a long term position, I recommend starting with at least $5000 in your balance in order to sustain negative movements.
Another useful tool is the when you log into your FSA account you can see every aspect of the trading strategy before implementing it on your account. You will know in advance what the level of risk and reward the strategy offers even before it has opened a trade.
Long-term strategies might help you ride out the rough times and capitalize on the good ones, but only high equity accounts will be able to ride out negative movements so keep this in mind before trading this type of strategy. Sometimes just taking a step back and accepting a few losses will give you the energy and the knowledge to attack the Forex market with renewed vigor, and make some serious profits!
