Chapter 11: Introduction to FX trading strategy

In this chapter we look at a tiny sample of the many thousands of methods and techniques that you can employ when trading in the foreign exchange market. One or two are really just explanations of technical tools, while others are more detailed. Before employing any strategy in real life, though, it is important to ensure that you understand the correct way to implement that system and that you are able to confidently interpret any output it may generate.

Although strategies come in all shapes and sizes, they mostly fall into just a handful of categories. While there may be some overlap, these categories can be broadly described as:

• trend following strategies

• range trading strategies