Trading strategies – Smart Forex Learning

How To Trade Supply And Demand

19/04/201905/08/2019 sfl 3 Comments

17 min read

By far, one of the most common questions I get these days is how to trade supply and demand.

Even though the concept is essential to how free markets operate, it has gotten a lot more popular as the basis for trading strategies in recent years.

And it makes sense! Using supply and demand as a part of your trading arsenal can be quite effective and potentially very profitable. So let’s figure out how to use supply and demand in your trading.

What Is Supply And Demand?

Before we discuss anything else, we should define what supply and demand actually is. In short: demand is how many buyers there are in a given market and how much they are willing to buy an instrument. Supply is how many sellers there are in a market and how much they are willing to sell an instrument.

The Best Reversal Trades For The Upcoming Week

06/05/201816/11/2021 sfl Leave a comment

5 min readHi traders, what’s up! 👋 After a semi-holiday week in Kyoto, ⛩ I’m back in Tokyo and ready to rock the charts again! 🔥

This week, the Trade Advisor students have received 16 (!) setups and some of them are real beauties! Many of them are on the 4H charts, but there are trading opportunities on the 1H and daily as well, so there’s something for everyone!

In order to show how the Trade Advisor students and I trade, I wanted to share a few of those setups. Feel free to use these reversal setups as inspiration on what to trade next week 😊 But enough talk, let’s get started!

From Trading Hypothesis To Trading Strategy

22/02/201822/02/2018 sfl 2 Comments

11 min read

How do you know that your trading strategy really works?

If it took you more than 2 seconds to answer this question, read on.

When you start trading a new strategy, this question can be challenging to answer. You might have trading rules but because you’re not sure about your edge, your confidence in the strategy will last until you get your first couple of losers.

All of a sudden, you question everything.

Did this really work to begin with? What if I was just lucky?

Let’s fix this.

Reversal Trading: 5 Practical Entry Strategies

30/01/201830/01/2018 sfl 2 Comments

6 min read

Am I entering too early?

Is this a good enough signal to enter this trade?

If you’ve been trading for more than a week, you’ve probably asked yourself these questions multiple times. How do you accurately determine when to enter? While things like trade management, exit strategies and discipline are also big contributing factors towards your performance, picking a good entry point will increase your chances of having a winning trade on your hands.

Top 5 Reasons Backtesting Is The Ultimate Skill

16/11/201716/11/2017 sfl 3 Comments

7 min read

“I’m close to going live with my system! It works perfectly!”

– “Great! Have you backtested your system?”

“What’s backtesting?”

– “…”

Backtesting. One of those things no trader is really excited about. It usually takes a long time, involves a lot of data crunching and it’s generally, well, boring work.

Yet, it’s the one thing traders can’t live without either! To just say that it’s important for your trading success would be an understatement.

Imagine you’re Elon Musk and you’re building SpaceX rockets. You’ll want to test if they can actually be launched and if they fly as expected, right? Backtesting is that step for trading. It checks if something works as expected.

Or rather, you need to ask yourself the question:

How can I make sure that my strategy has an actual edge?

3 ways for a fresh look at the charts

28/10/201728/10/2017 sfl Leave a comment

12 min readAs traders, we create and settle in trading routines. They help us with building good trading practices and let us focus on the process, rather than the outcome. Of course, this is a good thing but often, this also means that we use the same way to look at the charts. We look for the same patterns. We do the same thing over and over again in order to get the right results.

But what if you don’t get the results you want?

Of course, this can have a multitude of reasons: bad risk management, FOMO, no discipline, not cutting losses, etc. Or how about this: maybe the patterns you look for are just not working? Maybe you need a fresh way to look at charts.

Perspective

By using a different point of view, you might be inspired to find new ways to gain an edge in the market and come out on top. In this article, I want to show 3 ways to flip things around and gain a different perspective on the markets.

Why you need a trader development plan

22/05/201722/03/2018 sfl Leave a comment

12 min read

I’ve learned everything there is to know about trading.

Says no professional trader, ever.

This is something I teach to my trade advisor students every day: not improving is deadly in this business. Seeing your P/L go south kind of deadly.

Every trader who has made it has done so because of continuous learning. A desire to get better at the trading game. Every single one of those traders has a trader development plan. But what exactly is that?

How to create a new forex trading strategy

11/04/201711/04/2017 sfl 2 Comments

9 min readWhen people are looking for a new forex trading strategy, what they really want to know is:

How do I create a strategy that works?
How do I develop the confidence to trade a strategy I believe in?

The first question almost goes without saying. Without a working strategy, there’s no use in attempting to trade in a consistent and profitable way. The second question, however, is more subtle. My opinion is that if you have a working strategy but don’t have a deeply rooted belief that you can trade this strategy, you will fail.

Confidence in a strategy will make or break your results.

Richard Dennis confidence in trading

Fortunately, there is an answer to both questions: testing.

Before I ever use a strategy, I will have tested it for weeks. For months. It’s not an extremely difficult process, but it does involve a lot of work. During the years, I’ve tested 100’s of strategies. Most of them failed. Some of them, I could make work. The best ones, I’m trading today. Here are the steps involved to make it happen.

The pin and drive reversal entry trigger

19/03/201719/03/2017 sfl 2 Comments

8 min readAs you might know, I’m mainly a reversal trader. I use other strategies as well, but my bread and butter setups revolve around swing trading reversals.

This article is about an entry trigger I often use for my reversal trades. I describe it in my trading plan as pin and drive, which basically means that if I see a pin bar followed by a drive in the opposite direction (a momentum candle, if you wish) AND some additional conditions are fulfilled, I have found that it is often a good trigger to enter a reversal.

But first, let’s make it clear what I mean with a chart:

The Easiest Forex Trading Strategy You’ll Find

29/01/201705/02/2017 sfl 1 Comment

10 min readToday, I want to share a forex trading strategy with you, called WhaM. This trading strategy is so easy to use, even your parents would be able to trade it. I reckon even your dog could trade this. Really, it’s super straightforward.

This trading strategy is not created by me. I read about it a long time ago from Will at wmd4x.com, who originally came up with these patterns and found a way to trade them. This is my interpretation of the system and how I currently trade it.

It’s one of the strategies I’m actively trading and it’s by far the one with the least moving variables. No indicators. No complicated rules. I don’t even use candlestick charts for this strategy! And most importantly: it just works incredibly well.

WhaM forex trading strategy

If this sounds like a sales pitch, it’s only because I always get excited telling people about it 🙂 Don’t worry, I’m not selling anything. Everything you need to know to adopt this strategy is right here, in this article. By sharing this strategy for free, I’m hoping that some people will benefit from it. I also want to show that trading systems don’t have to be complicated and trading consistently and profitably is absolutely possible, given proper rules.

If, after reading, you feel that this article was useful to you, I’d appreciate it if you share it so more people can learn about this forex trading strategy:

WhaM, a trading system without indicators or candlesticks. If you can read, you can trade it.

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