Trading strategies

These playbooks help you understand common FX approaches. Pick one style, define risk first, then choose brokers/tools that match your execution needs.

Scalping strategy

Profit from small price moves by opening and closing positions quickly. Requires discipline, fast execution, and low spreads.

Guidance: trade during peak liquidity sessions and keep execution costs in focus.

  • Focus on highly liquid pairs and tight spreads
  • Predefine entry/exit rules before sessions
  • Keep risk per trade very small
  • Avoid trading during major news spikes

Day trading strategy

Open and close positions within the same trading day. Learn setups, time management, and how to avoid overtrading.

Guidance: build a daily plan with clear setups and stop trading after your limit.

  • Trade around high-volume sessions
  • Avoid holding positions overnight
  • Track daily loss limits
  • Journal outcomes to refine your edge

Swing trading strategy

Hold positions for days or weeks to capture medium-term moves. Best for traders who can’t monitor markets constantly.

Guidance: confirm trends on higher timeframes and use wider stops to allow volatility.

  • Use higher timeframes to filter noise
  • Set wider stops to allow volatility
  • Review positions once per day
  • Scale out at key swing levels

Trend following strategy

Follow the prevailing trend using structure and simple indicators. Avoid counter-trend entries.

Guidance: align with the dominant trend and avoid counter-trend entries.

  • Combine trend filters with price structure
  • Scale in only after confirmation
  • Use trailing stops to protect gains
  • Let winners run and cut losers quickly

Breakout strategy

Trade breakouts above resistance or below support. Focus on confirmation and risk control during volatility.

Guidance: look for consolidation before the break and confirm with volume or retest.

  • Wait for volume or retest confirmation
  • Place stops beyond key levels
  • Avoid major news spikes
  • Use targets based on range height

Carry trade strategy

Earn interest differentials by buying high-yield currencies and selling low-yield currencies. Best when macro trends are stable.

Guidance: favor stable macro trends and monitor policy shifts closely.

  • Prefer stable macro environments
  • Monitor central bank policy shifts
  • Use wider risk limits for long holds
  • Review swaps and funding costs weekly

Next step

Once you choose a strategy, compare brokers by costs and execution quality, then test withdrawals with a small amount.

Compare brokers → Open Guides hub →