Best Forex trading strategy

1. Simple rules are easy to implement
   For example, many professional traders use fixed lot mode for position volume in intraday trading systems. For example, one lot is opened each time. The reason is simple. Complex position volume formulas are too slow, fixed lot mode has the advantage of execution speed and convenience of implementation.

2. A simple rule makes it easy to see expectations
   This is also easy to understand. If a system has 5 or 6 rules about opening a position, even if the trader knows which rules have positive expectations for the system and which rules have negative expectations for the system. is difficult to distinguish. Validation methods are time consuming and labor intensive.

3. Simple rules are not easy to fall into the curve fitting trap
   Conversely, "almost exclusively" complex systems fall into the curve-fitting trap. An overly complex system is not a manifestation of the nature of the market, it is a multi-degree-of-freedom system (the market has a high degree of randomness and some of the randomness cannot be explained), and after some optimization, always You will see models with good results, but this kind of good is limited to the historical market at a certain stage and the current transaction will not give you a satisfactory return.

4. Simple rules drive improvement
   When the nature of the market changes, a simple system can quickly find rules that are not adaptable to the new market and enable subsequent improvements.

5. Simple Rules for Unwinding
   When many of the system rules are so complex, resuming becomes almost impossible. Reversible system processes should be short and fast, convenient for traders to statistically summarize and improve.

Some may say I already have a complex trading strategy, what should I do? The only way is to find a simplified path. Too much complexity inevitably leads to slow decision-making and even inconsistency. In other words, multiple rules conflict with each other and prevent decision making.

Here are three ways to simplify your trading strategy for your reference.

Use a non-collinear indicator. For example, price and volume indicators are non-collinear indicators.
Remove multiple collinear indicators. For example, you don't need to use moving averages and trend lines together to determine trends.
Remove vague and difficult rules and replace them with quantitative and qualitative rules