In the world of financial markets, having a bunch of solid trading strategies is crucial for success. That’s why traders employ different approaches depending on their goals, risk tolerance, and market conditions. This page explains everything you need to know about the most efficient and widely used strategies in online market trading. But how can you apply them in real life? With my fully automated trading robots, it’s easy: they trade these strategies according to the algorithms set for them.
Table of contents
How many trading strategies are there?
Trend trading
Trend trading in more detail
Counter-trend trading
Counter-trend trading in more detail
False breakout trading
False breakout trading in more detail
Perpetual EA for false breakout trading
Why trading strategies are so important
My products in detail
How many trading strategies are there?
Firstly, there are no secret strategies. All the diversity of strategies can be reduced to several basic ones that have long been known on the market. The whole secret is to successfully apply them.
The most common strategies are trend trading, counter-trend trading, and false breakout trading. Each method has its unique characteristics and suits different types of traders. Let’s explore these trading strategies in more detail and see how they are turning into trading robots.
Trend trading. Impulse trading strategies
Trend trading is one of the most popular and widely used strategies in the financial markets. The core idea behind it is to identify and follow the direction of the prevailing market trend—whether upward (bullish) or downward (bearish). The adage “the trend is your friend” highlights the logic of this approach: when a market moves in one direction over a period, it’s likely to continue in that direction until there is evidence of a reversal.
In trend trading, technical analysis tools like moving averages, trendlines, and momentum indicators help traders identify the direction and strength of the trend. By aligning trades with the broader market direction, traders increase their chances of success. However, it’s essential to remain vigilant for potential reversals and have a risk management strategy.
Trend trading in more detail
Read more about this powerful strategy’s strengths, weaknesses, nuances, and features of its application.
Counter-trend trading. Reversal trading strategies
Counter-trend trading involves taking positions against the prevailing trend. Traders who use this strategy look for signs that a current trend is losing momentum and is about to reverse. While this method can be riskier than trend trading, it offers the potential for higher returns, especially when the market experiences sharp reversals.
Critical indicators for counter-trend trading include oscillators like the Relative Strength Index (RSI) or Stochastic Oscillator, which help traders spot overbought or oversold conditions. When a market is overstretched in one direction — overbought or oversold — counter-trend traders seek to profit from the eventual pullback or reversal. The challenge with this strategy is timing: getting in too early can result in significant losses, so traders must be precise in their analysis.
Counter-trend trading in more detail
Read more about this powerful strategy’s strengths, weaknesses, nuances, and features of its application.
False breakout trading. Advanced trading strategies
False breakouts occur when a market moves above or below a critical support or resistance level but fails to maintain the momentum. Many traders get caught in false breakouts, expecting a sustained move beyond the level, only to see the market reverse sharply. False breakout trading involves anticipating this reversal and positioning oneself to profit when the market snaps back.
This strategy requires a keen eye for market manipulation or exhaustion at critical levels. Traders using this approach typically await confirmation that the breakout has failed — such as a candlestick reversal pattern or a return below the breakout point — before entering the trade. It’s a strategy that relies heavily on patience and an understanding of market psychology, as false breakouts often lead to swift price corrections.
False breakout trading in more detail
Read more about this powerful strategy’s strengths, weaknesses, nuances, and features of its application.
You can trade this strategy right now!
If you like this strategy and think it is one of the best trading strategies and should be applied in practice as soon as possible, then you are absolutely right. I want to make you happy because I have already created a trading robot that implements this strategy.
Perpetual EA
Read more about the trading robot for false breakout trading. You can download and test it for free.
Why trading strategies are so important
Choosing the right trading strategy depends on an individual trader’s style and the market conditions. Trend trading is suited for those who prefer to follow the market flow, while counter-trend trading and false breakout trading cater to traders looking to capitalize on market reversals. Regardless of the strategy, risk management is essential for long-term success in the markets.
Luckily, my products already do all this automatically. These are reliable trading algorithms that do not get tired and do not make mistakes in their calculations. Try them for free. Happy trading!
My products in detail
Learn more about all my products for traders and unlock the potential of automated trading!