Are you ready to take control of your Forex trades? These short-term forex trading strategies are designed to maximize profit quickly.
With these right strategies, you can significantly increase your profits while managing risk.
Here are three profitable short-term forex trading strategies that you can use today:
- Short Term Scalping Strategy
- High Impact News Strategy.
- Day Trading With Hedging
Now, let’s break them down one by one.
- 1. Short-Term Scalping Strategy
- 2. High Impact News Strategy
- 3. Day Trading With Hedging as A Short-Term Forex Trading Strategy
- Conclusion – Short Term Forex Trading Strategies
1. Short-Term Scalping Strategy
Trading the forex market requires different strategies and different methods. Some like to take the short route, and some love to trade the longer route.
A short route does not equal a get-rich scheme strategy, that is my belief, and that is what led to me discovering the short-term Scalping Left Over Profit Strategy.
Scalping is one of the short-term strategies every forex must know because you don’t need to wait for days, weeks, or months to close in profit.
Trades opening and closing should take a maximum of 1 hour.
ENTRY: Short-Term Scalping Strategy
You will need a custom indicator or community script on trading view called: mean reversion channel(see image below)
Once you have added this powerful custom indicator or community script to your chart, it will look like this:
Please ensure your timeframe is 5- or 15 minutes time frame since we are trading to achieve profit in a shorter time.
Now the only time you can for a buy or sell trade must be when the candle closes above the upper or lower band.
In the image below, let me give you an example of a buy trade and sell trade.
You can see from the image above the candles close above and below the channels before we can take a trade.
What of EXIT plan?
EXIT: When To Exit Trades in the Short Term Scalping Strategy
The exit is straightforward. You wait for the price or candle to touch the yellow line, which is the mean line, and then you can close the trade. Sometimes it might be at breakeven.
Note: This is just an example of opening trades and closing at a shorter time. You can decide to use any other method of opening.
Some traders may decide to use a grid or stop loss and take profit. But I have tested this one method that I shared, and it performs well on backtesting and forward testing.
Want even more profitable scalping strategies? The 1-minute scalping strategy works well, and many traders implement it and send positive reviews.
Let’s talk about another short-term strategy – High Impact News Strategy
2. High Impact News Strategy
Whether the market is trending up or down doesn’t concern me because I possess a reliable and innovative strategy that generates consistent profits.
It only takes a few minutes for me to demonstrate this strategy, which applies to traders of all levels – from novices to experts – and does not rely on convoluted or outdated technical indicators.
A currency pair can experience a rapid surge or drop of one hundred pips in just a few minutes following an anticipated economic announcement.
Extensive research has established that news releases can cause currency values to fluctuate by 20 to 300 pips in a matter of minutes.
The beauty of news trading is that the precise time and date of these announcements are predetermined, allowing you to strategically choose when to engage in trading and maximize your profits in the shortest time possible without relying on technical analysis.
This discovery has been immensely valuable for me and now for you too.
The concept of news trading is straightforward. Following significant news releases, market prices will rise or fall.
For instance, if the U.S. government reports a faster-than-anticipated decline in the unemployment rate, numerous traders may invest in the U.S. dollar, anticipating its value to appreciate relative to other currencies.
Now the problem will be which broker and which news you really need to trade.
Firstly when it comes to brokers, I recommend you look for an excellent reputable fixed spread broker that does not have a policy of closing trades within 1 minute.
You can do your findings. Contact any broker and ask them this question; you can copy and paste and send it to your broker. The question is, ” Do you offer a fixed spread account, and also can I scalp the forex market so that I can open and close trade within 1 minute?
Once they say YES, you can try them out with a few funds.
Secondly, the best high-impact news you should trade because I have tried them many times and they perform well are:
- Gross Domestic Product NewZealand Event NXDUSD
- Gross Domestic Product Australian Event AUDUSD
- Gross Domestic Product Great Britain Event GBPUSD
- Non-Fram Payroll United State Event USDJPY
- Employment Change Canada Event USDCAD
- Employment Change NewZealand Event NZDUSD
- Employment Change Australian Event AUDUSD
Now let’s talk about settings before entry
How to Get High-Impact News From Forexfactory.com
Go to forexfactory.com
Verify whether the time displayed on the website matches your computer’s time. If they don’t align, adjust the website’s time by taking the following steps, as seen in the images below.
Once you click on time, it will bring out an area that allows you to set up the timezone that matches your local time.
Then when you save your settings, it will match your local time, which is what you need.
Now time to go to the calendar because that is where you will see high-impact news you want to trade.
Now don’t forget the high-impact news I suggest you trade for now. All you have to do is check your calendar every month and plan on trading the news.
Now let’s talk about the entry:
ENTRY: How to Enter Trades Using High-Impact News Strategy
Most traders set pending orders so that if the market spike up or down, their order will be triggered, and they will flow with the spike.
But I want you to do things differently.
If you want to trade reversal, you may decide to do a limit order; if you want to go with the spike flow, you may decide to set stop orders.
Use the same principle I explain to set your grid pending orders regardless of what you set.
Now anytime you want to set your grid pending orders, you can do three grid pending orders with just ten pips intervals from each. Check the image below.
So you can also make sure they all have different lot sizes. For example, buy stop 1, buy stop 2, and buy stop 3 can have 0.1, 0.2, and 0.3 as their respective lot sizes. You can do the same thing for the sell stop section too.
Remember that you can decide on any lot size once you practice trying this on the demo or small funds on a live account. You will understand more.
So anytime the market spikes up or down, you go with the flow of the market.’
EXIT: How to Exit Trades in The High Impact News Strategy
The exit is simple as ABC. Just set your Takeprofit to be three times(x3) of your Stop loss. Ensure the Stop loss of each pending order is ten pips and the take profit is x3, which is like 30 pips, or even x5, which is 50 pips.
And even when the trade is already profitable without getting to your Take profit yet. Just Trail the market and close all in profit.
Don’t forget that to succeed with this short-term strategy. You need a specific broker that allows you to do this successfully.
I have already explained that above. Please don’t forget.
3. Day Trading With Hedging as A Short-Term Forex Trading Strategy
The last on my list of powerful short-term forex trading strategies is the day trading plus hedging strategy.
This strategy works well during London and New York sessions because that is when the market moves on some pairs, making this strategy exit in profit faster.
The London session in forex refers to the period during which the London financial markets are open and active for trading. This session is also commonly referred to as the European session.
The London session typically opens at 8:00 am GMT and closes at 4:00 pm GMT.
The London session is known for its high liquidity, as many major currency pairs, including EUR/USD, GBP/USD, and USD/JPY, are traded heavily during this time. Traders worldwide watch the London session closely, as its activity often sets the tone for the rest of the trading day.
Talking the New York session in forex trading refers to the period during which the New York financial markets are open and active for trading.
The New York session usually opens at 1:00 pm GMT and closes at 10:00 pm GMT. During this time, there is significant trading activity in the forex market.
The New York session is known for its high liquidity and volatility, as many major currency pairs, such as EUR/USD, USD/JPY, and GBP/USD, are traded heavily during this time.
We already know when to trade this strategy and which pairs to trade. Time to talk about the entry.
ENTRY: How to Enter Trades in the Day Trading With Hedging
Starting from 8:00 AM GMT, that is when you start tracking your entry.
You wait for the market to be silent. I mean the market to range up and down without breaking the support or resistance. If that happens for some minutes, it means a potential opportunity for the market to break out. (see image below)
Look at the image above. You will see the market is ranging for some minutes.
Now, when the candle breaks out of the ranging area and close below the support or above the resistance. That is where you will enter your first trade.
Now you need to put some things in mind.
For example, let’s assume the candle closes above the resistance, but when you calculate the pips between the close of the candle and resistance, if is more than 10 pips, please don’t enter for the trade because part of your profit is gone already.
The Image explains what I avoid when trading this strategy.
Now let’s talk about exit!
EXIT – How to Exit Trades in the Day Trading With Hedging Strategy
The exit comes with a hedging method. Because what if the market does not break out immediately or gives us a fake breakout? What do we do?
Now, set your Take Profit Times two or three(x2 or x3) of your Stop Loss anytime you enter for your trade. Look at the image below.
Now let’s assume you could not close your trade with few profits because the market reverses immediately after the breakout.
Then you can use the hedging method. Once your Stop loss is hit. Enter for a sell trade with a different lot size, the same take profit as before, and the same stop loss.
So your new stop loss will be 5 pips + resistance.
Because you are trading during the London session or the new york session, the market is more likely to hit your profit fast, allowing you to exit the market.
Conclusion – Short Term Forex Trading Strategies
Note: These are three different short-term forex trading strategies; you can add more ideas to it or even change the mode of entry by adding more scrutiny before you take your first trade.
Short-term trading strategies aim to enter and exit the market quickly.
The examples I have explained above are just to show you how some short-term strategies are being used in the forex market.
I will like to know more about what you think about the strategies I have explained, and I also welcome your feedback on what you think can make it more profitable.