Books on Trading Strategies

Books on Trading Strategies

Forex strategy e-books that are listed here provide information on the specific trading strategies as well as the use of particular Forex trading instruments. Basic knowledge of Forex trading is required to correctly understand and use these strategies.

Almost all Forex e-books are in .pdf format. You'll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.

If you are having problems downloading the books and you are using Google Chrome, try right-clicking a book download link and choose 'Save link as...'

If you are the copyright owner of any of these e-books and don't want me to share them, please, contact me and I will gladly remove them.

1-2-3 System — a simple pattern trading system by Mark Crisp.

Bollinger Bandit Trading Strategy — a trading system based on Bollinger bands indicator by unknown author.

Value Area — from The Likos Letter.

The Dynamic Breakout II Strategy — by unknown author.

Ghost Trader Trading Strategy — by unknown author.

King Keltner Trading Strategy — by unknown author.

Scalp Trading Methods — by Kevin Ho.

LSS - An Introduction to the 3-Day Cycle Method — by George Angell.

Market Turns And Continuation Moves With The Tick Index — by Tim Ord.

The Money Manager Trading Strategy — by unknown author.

Picking Tops And Bottoms With The Tick Index — by Tim Ord.

The Super Combo Day Trading Strategy — by unknown author.

The Eleven Elliott Wave Patterns — by unknown author.

The Thermostat Trading Strategy — by unknown author.

Intraday trading with the TICK — by Christopher Terry.

Traders Trick Entry — by Traders Educators of Traders University.

Fibonacci Trader Journal — a journal covering different trading techniques based on Fibonacci indicators, by Robert Krausz. 12 issues.

Rapid Forex — a set of aggressive Forex trading strategies (Rapid Forex) by Robert Borowski and Stephen A. Pierce.

Microtrading the 1 Minute Chart — a small e-book aimed on Forex newbies to teach them the basics of M1 scalping.

BunnyGirl Forex Trading Strategy Rules and FAQ — set of rules for a BunnyGirl trading strategy based on WMA crossing.

The Daily Fozzy Method — by Michael Dunbar.

Forex Trader's Cheat Sheet — real Forex cheat sheet for position entry times/conditions by Quantum Research Management Group.

Offset Trading — a basic Forex news trading range breakout system by Dana Martin.

How to Trade Both Trend and Range Markets by Single Strategy? — by S.A. Ghafari.

A Practical Guide to Technical Indicators; Moving Averages — by S.A. Ghafari.

FX Wizard — essential Forex trading rules by Rob Walton.

FX Destroyer — a description of a rather simple Forex trading strategy, involving moving averages, parabolic SAR and ADX indicators, by Izu Franks.

A Practical Guide to Swing Trading — a simple and practical guide to the swing trading strategy, by Larry Swing.

Practical Fibonacci Methods for Forex Trading — practical guide to Fibonacci levels with the real trade examples of the Forex strategy based on these levels, by Ken Marshall and Rob Moubray.

Using The Heikin-Ashi Technique — a short but detailed guide to trading using Heikin-Ashi charting technique, by Dan Valcu.

The Day Trade Forex System — an indicator-based strategy with detailed description, chart examples and minor advertising, by Erol Bortucene and Cynthia Macy.

5/13/62 — a revised and updated EMA-based Forex trading strategy explained in the 3-grade language, by Rob Booker.

Not So Squeezy Trading Manual — a description for the rather interesting trading strategy that utilizesindicators package under the same name, by Akuma99.

KobasFX Strategy — a simple MA+MACD Forex trading strategy by Obaseki O. A.

Killer Patterns — a simple trading strategy based on MACD and trend lines by Philip Birchley.

3D Trading — a detailed description of a trading strategy that employs Elliott Waves, price & time patters, Gann rules, Williams' Percentage Range and MACD indicators; by Ruben Topaz.

4 Hour MACD Forex Strategy — a set of rules and recommendations for the 4-hour MACD strategy that also uses moving averages and horizontal lines; by unknown author.

Books on Trading Strategies

Books on Trading Strategies

Forex strategy e-books that are listed here provide information on the specific trading strategies as well as the use of particular Forex trading instruments. Basic knowledge of Forex trading is required to correctly understand and use these strategies.

Almost all Forex e-books are in .pdf format. You'll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.

If you are having problems downloading the books and you are using Google Chrome, try right-clicking a book download link and choose 'Save link as...'

If you are the copyright owner of any of these e-books and don't want me to share them, please, contact me and I will gladly remove them.

1-2-3 System — a simple pattern trading system by Mark Crisp.

Bollinger Bandit Trading Strategy — a trading system based on Bollinger bands indicator by unknown author.

Value Area — from The Likos Letter.

The Dynamic Breakout II Strategy — by unknown author.

Ghost Trader Trading Strategy — by unknown author.

King Keltner Trading Strategy — by unknown author.

Scalp Trading Methods — by Kevin Ho.

LSS - An Introduction to the 3-Day Cycle Method — by George Angell.

Market Turns And Continuation Moves With The Tick Index — by Tim Ord.

The Money Manager Trading Strategy — by unknown author.

Picking Tops And Bottoms With The Tick Index — by Tim Ord.

The Super Combo Day Trading Strategy — by unknown author.

The Eleven Elliott Wave Patterns — by unknown author.

The Thermostat Trading Strategy — by unknown author.

Intraday trading with the TICK — by Christopher Terry.

Traders Trick Entry — by Traders Educators of Traders University.

Fibonacci Trader Journal — a journal covering different trading techniques based on Fibonacci indicators, by Robert Krausz. 12 issues.

Rapid Forex — a set of aggressive Forex trading strategies (Rapid Forex) by Robert Borowski and Stephen A. Pierce.

Microtrading the 1 Minute Chart — a small e-book aimed on Forex newbies to teach them the basics of M1 scalping.

BunnyGirl Forex Trading Strategy Rules and FAQ — set of rules for a BunnyGirl trading strategy based on WMA crossing.

The Daily Fozzy Method — by Michael Dunbar.

Forex Trader's Cheat Sheet — real Forex cheat sheet for position entry times/conditions by Quantum Research Management Group.

Offset Trading — a basic Forex news trading range breakout system by Dana Martin.

How to Trade Both Trend and Range Markets by Single Strategy? — by S.A. Ghafari.

A Practical Guide to Technical Indicators; Moving Averages — by S.A. Ghafari.

FX Wizard — essential Forex trading rules by Rob Walton.

FX Destroyer — a description of a rather simple Forex trading strategy, involving moving averages, parabolic SAR and ADX indicators, by Izu Franks.

A Practical Guide to Swing Trading — a simple and practical guide to the swing trading strategy, by Larry Swing.

Practical Fibonacci Methods for Forex Trading — practical guide to Fibonacci levels with the real trade examples of the Forex strategy based on these levels, by Ken Marshall and Rob Moubray.

Using The Heikin-Ashi Technique — a short but detailed guide to trading using Heikin-Ashi charting technique, by Dan Valcu.

The Day Trade Forex System — an indicator-based strategy with detailed description, chart examples and minor advertising, by Erol Bortucene and Cynthia Macy.

5/13/62 — a revised and updated EMA-based Forex trading strategy explained in the 3-grade language, by Rob Booker.

Not So Squeezy Trading Manual — a description for the rather interesting trading strategy that utilizesindicators package under the same name, by Akuma99.

KobasFX Strategy — a simple MA+MACD Forex trading strategy by Obaseki O. A.

Killer Patterns — a simple trading strategy based on MACD and trend lines by Philip Birchley.

3D Trading — a detailed description of a trading strategy that employs Elliott Waves, price & time patters, Gann rules, Williams' Percentage Range and MACD indicators; by Ruben Topaz.

4 Hour MACD Forex Strategy — a set of rules and recommendations for the 4-hour MACD strategy that also uses moving averages and horizontal lines; by unknown author.

Money Management Forex Books

Money Management Forex Books

While Forex trading is tightly connected with analyzing the charts and the fundamental indicators, knowing where to enter and where to exit a position is not enough. Professional traders manage their risks and devote a lot of their time to learning the techniques of the proper money management. Here you can find some of the best Forex e-books about money management in the financial trading.

Almost all Forex e-books are in .pdf format. You'll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.

If you are having problems downloading the books and you are using Google Chrome, try right-clicking a book download link and choose 'Save link as...'

If you are the copyright owner of any of these e-books and don't want me to share them, please, contact me and I will gladly remove them.

Risk Control and Money Management — by Gibbons Burke.

Money Management — A chapter from The Mathematics of Gambling.

Position-sizing Effects on Trader Performance: An experimental analysis — by Johan Ginyard.

Fine-Tuning Your Money Management System — by Bennett A. McDowel.

Money Management: Controlling Risk and Capturing Profits — by Dave Landry, a short but educative guide to money management for the financial traders.

Money Management Strategies for Serious Traders — a book by David Stendahl that tries to explain the process by which the traders can develop, evaluate and improve the performance of their trading systems based on the money management strategies.

The Truth About Money Management — an article by Murray A. Ruggiero Jr. from Futures Magazine explains the basic principles rules and advantages of the risk control and money management.

Money Management and Risk Management — a book by Ryan Jones that goes through the most important aspects of the financial trading.

Forex Trading Psychology Books

Controlling one's emotions is vital for every Forex trader. Here you will find the free e-books about Forex trading psychology and emotion control in the financial trading. You will learn how to calm yourself and set the long-term goals in your trading. Recommended for all traders.

Almost all Forex e-books are in .pdf format. You'll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.

If you are having problems downloading the books and you are using Google Chrome, try right-clicking a book download link and choose 'Save link as...'

If you are the copyright owner of any of these e-books and don't want me to share them, please, contact me and I will gladly remove them.

A Course in Miracles — A Christian view on the probability by unknown author.

Thoughts on Trading — Some general thoughts about financial trading by Joe Ross.

Calming The Mind So That Body Can Perform — by Robert M. Nideffer, Ph.D.

Lifestyles of the Rich and Pipped — by Rob Booker & Kim Shaftner, M.D.

The Miracle of Discipline — by W.R. Booker & Co.

Zoom in on Personal Trading Behavior And Profit from It — by Linda Bradford Raschke.

The Woodchuck and the Possum — by Rob Booker.

25 Rules Of Forex Trading Discipline — by Douglas E. Zalesky.

Stop Losses Are For Sissies — by W. R. Brooker & Co. — a rather descriptive evidence of how importantstop losses in Forex trading are.

Your Personality and Successful Trading — by Windsor Advisory Services — describes and discusses almost all psychological and emotional aspects of financial trading.

Trading as a Business — a book about developing a psychological attitude toward the trading, creating a trading strategy and following it, while treating trading as a business, by unknown author.

The 7 Deadly Sins of Forex (and How to Avoid Them) — this book by Marc Low lists 7 most popular emotional and psychological pitfalls that wipe clean the accounts of even the talented Forex traders.

The 5 Steps to Becoming a Trader — a book by unknown author. It lists the 5 steps of the Forex trader's way to becoming successful.

Forex Report Analysis Tool

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This report analysis tool will analyze .html reports produced by MetaTrader 4/5 (including Strategy Tester) and Oanda platform. The result of this analysis will be available in form of various metrics for your further consideration. First, you should create a report in your trading platform, then you need to submit it via the form below. This tool does not analyze Optimization Reports generated by MetaTrader Strategy Tester.

Please specify a report file:

Force close open positions 
Count swap and commission for loss/profit 
Calculate Risk of Loss with exact probability formula (can be quite slow)

Calculated Metrics

Gain & Loss

Net profit

Actual net profit or loss. Calculated as Gross profit − Gross loss.

Net profit, pips

Net profit or loss expressed in pips. Value of a pip vary per trading instrument. It's a useful metric to consider a system without its money management part.

Gross profit

Total profit received during report's period. Calculated as a sum of outcomes of all profitable positions.

Gross loss

Total loss inflicted during report's period. Calculated as a sum of outcomes of all losing positions.

Return on Investment

ROI

Return on investment in percents. Plain and simple: total profit divided by the starting balance (overall or for the given pair — at the moment when it has started to trade in this account) and multiplied by 100%.

Annualized ROI (Real)

Annualized return on investment in percents. The difference between the last close date and the first open date for the given pair (or for the whole account total) is used in calculation.

Annualized ROI (Theoretical)

Annualized return on investment in percents. Only duration of active trades is considered for calculation (only the period when the margin is used). Time between trades isn't used for calculation. Sum of all times is used in calculation of Total for this ROI — like if trading on different pairs wasn't performed simultaneously. Difference between Theoretical and Real Annualized ROI for a pair means that there was time when there weren't any positions open for the pair after trading for this pair had already started in this account.

Positions

Total positions

Total number of positions (closed, unless you chose to force-close open positions).

Profitable positions

Total number of profitable positions (closed, unless you chose to force-close open positions). Positions with 0 profit are counted as profitable.

Losing positions

Total number of losing positions (closed, unless you chose to force-close open positions).

Short trades

Total number of short (sell) trades taken during the report's period. Counted using closed positions.

Shorts won

Total number of short (sell) positions closed with profit (0 profit is also counted).

Shorts lost

Total number of short (sell) positions closed with loss.

Longs trades

Total number of long (buy) trades taken during the report's period. Counted using closed positions.

Longs won

Total number of long (buy) positions closed with profit (0 profit is also counted).

Longs lost

Total number of long (buy) positions closed with loss.

Positions with SL

Total number of closed positions that had a stop-loss level set.

Positions with TP

Total number of closed positions that had a take-profit level set.

Position Properties

Average profitable trade

Average outcome of a closed profitable position.

Average losing trade

Average outcome of a closed losing position.

Expected payoff

Amount of money expected to be earned from one closed position. Calculated as net profit divided by total positions number.

Largest profitable trade

Maximum profit produced by one closed position.

Largest losing trade

Maximum loss produced by one closed position.

Average SL outcome

Average profit/loss from a triggered stop-loss order.

Average TP outcome

Average profit/loss from a triggered take-profit order.

Reward/risk ratio

Average profitable trade divided by average losing trade. Measures how much profit you can earn takine 1-dollar risk.

Win/Loss Series

Maximum consecutive profit

Maximum amount of money earned in a consecutive sequence of closed positions.

Maximum consecutive profitable positions (by profit)

Number of consecutively profitable positions in a consecutive sequence of closed positions with a maximum amount of profit.

Maximum consecutive profitable positions

Maximum number of consecutively profitable positions.

Maximum consecutive profit (by positions)

Amount of profit earned from a longest sequence of consecutive profitable positions.

Maximum consecutive loss

Maximum amount of money lost in a consecutive sequence of closed positions.

Maximum consecutive losing positions (by loss)

Number of consecutively losing positions in a consecutive sequence of closed positions with a maximum amount of loss.

Maximum consecutive losing positions

Maximum number of consecutively losing positions.

Maximum consecutive loss (by positions)

Average consecutive wins

Average amount of profitable positions closed in a row.

Average consecutive losses

Average amount of losing positions closed in a row.

Drawdown

Absolute drawdown

Absolute drawdown

Maximum drawdown

Largest drop of the account balance below some previously reached balance level.

Relative drawdown

Largest relative (expressed in percentage points) drop of the account balance.

Indexes

Profit factor

Gross profit divided by gross loss. How many dollars you get for a dollar lost.

Recovery factor (Calmar ratio)

Calculated as net profit divided by the maximum drawdown. Measures the ability of a trading system to recover from losses.

Sharpe ratio

Measure of ratio between a received return and the experienced risk. Sharpe ratio is calculated as (R − R_f) / StdDev. Where R is a total account return (end balance divided by starting balance),R_f is a risk-free return (0% in this tool), StdDev — standard deviation of the account return (calculated without Bessel's correction).

Sortino ratio

Measure of ratio between received return and the experienced downside risk. Calculated as (R − R_f) / DR. Where R is a total account return (end balance divided by starting balance), R_f is a risk-free return (0% in this report), DR — downside risk (calculated as a standard deviation of the negative trade outcomes from zero return). Sortino ratio is a more useful version of Sharpe ratio.

Ulcer index

Measure of a negative volatility. After each closed position a current balance is compared with the maximum balance so far and then divided by the max balance and multiplied by 100. Then every resulting value is squared and the arithmetic mean of squares is found; a square root of the result is Ulcer index.

AHPR

AHPR or Average Holding Period Return is an arithmetic mean of a relative gain per position.

GHPR

GHPR or Geometric average Holding Period Return is an geometric mean of a relative gain per position.

Standard Deviation

Standard deviation of the absolute outcomes of the positions. Calculated without Bessel's correction.

Z-score and Probability

Z-score measures the dependence of the trade outcomes from the previous trade outcomes. A negative Z-score less or equal to -2 signals about a positive dependence, meaning that a profitable outcome will most probably be followed by another profitable outcome and a losing one will be followed by another loss. Z-score greater or equal to +2 signals about a negative dependence, meaning that a profitable outcome will most probably be followed by a losing one, and a loss will be followed by profit. Probability of Z-score is a probability of a value to drop out of the normal distribution.

Time & Volume

Duration

Duration of a trade is measured as time that passed from its opening until its closing. Time when trading isn't allowed (Saturday and Sunday) is also counted. For example, if someone opens a position 5 minutes before the Friday market close and closes it just 5 minutes after Monday market opening, the duration will be 48 hours and 10 minutes.

Volume

Volume is given in standard lots for all platforms except Oanda. Oanda reports feature position volume in units.

Expenses

Commission

Commission charged for trade execution. Usually present only in ECN and Islamic accounts.

Swap

Overnight interest rate payments. Can be both positive and negative.

R-Multiple

R-multiple

Van K. Tharp's R-multiple for a relative calculation of other trading system metrics. Calculated as a median loss.

Risk of Ruin

Exact Probability of Loss Formula

Calculation of probability to lose a part of account before gaining a part of account. Uses Markov Chains to model the probabilities. Very accurate but still relies on probabilities derived from number of successful/losing trades and average size of profit/loss from the report. Doesn't consider varying position sizing. Involves very complex calculations, thus isn't always possible.

Fixed Position Size Formula

Calculation of probability to lose a part in any period of time in future. Uses a simple formula: e^{−(2 × A × Z) ÷ D2}, where: Z is the fraction of account to lose, A is the average percentage return per trade, D is the standard deviation of returns. Doesn't consider varying position sizing. Considers perfect "bell curve" for returns and depends heavily on standard deviation rather than on factual probability and size of loss.

Fixed Fractional Size Formula

The same as Fixed Position Size Formula but this one assumes that the trader risks a fixed percentage part of their account per each trade. This way the losses tend to decrease when the trader is losing, which slows down the balance ruin. Formula:e^{(−2 × A ÷ D) × (ln(1 − Z) ÷ ln(1 − D))}, where: Z is the fraction of account to lose, A is the average percentage return per trade, D is the standard deviation of returns.

 Technical Stuff

Daily Elliott Wave Forex Forecast

Here you will find the daily Forex analysis based on the famous Elliott Wave theory. Five currency pairs are researched in each video  — EUR/USD, GBP/USD, USD/CHF, AUD/USD and EUR/JPY. A Forex forecast is produced for each of them using the Elliott Wave count techniques and some supporting indicators. The videos are recorded by Muhammad Azeem, who practices Elliott Wave techniques since 2005 and works in Forex technical analysis since 2001. Watch the latest video uploaded on December 6, 2012

Forex Strategies

Forex Strategies

← Back to Forex Tools

Forex trading can't be consistently profitable without adhering to some Forex strategy. It takes time and effort to build your own Forex trading strategy or to adapt an existing one to your trading needs and style. It's important to choose a strategy or system that is easy to follow with your daily trading schedule and that can be applied successfully with your account balance size. In this Forex strategy repository you'll find various strategies that are divided into three major categories:

• Indicator Forex Strategies
• Price Action Forex Strategies
• Fundamental Forex Strategies

Indicator Forex Strategies are such trading strategies that are based on the standard Forex chart indicators and can be used by anyone who has an access to some charting software (e.g. MetaTrader platform). These Forex strategies are recommended to traders that prefer technical analysis indicators over everything else:

Moving Average Cross Strategy

Parabolic SAR Strategy

Stochastic Oscillator Strategy

MACD Divergence Forex Strategy

Combined Stochastic Oscillator/MA Strategy

Price Action Forex Strategies are the currency trading strategies that don't use any chart or fundamental indicators but instead are based purely on the price action. These strategies will fit both short-term and long-term traders that don't like the delay of the standard indicators and prefer to listen as the market is speaking. Various candlestick patterns, waves, tick-based strategies, grid and pending position systems — they all fall into this category:

Inside Bar Strategy

Simple Price Based Trading System

Martingale Trading System

Scalping Forex Strategy

Support and Resistance Strategy

Pinbar Trading System

Fundamental Forex Strategies are the based on purely fundamental factors that stand behind the bought and sold currencies. Various fundamental indicators, such as interest rates and macroeconomic statistics, affect the behavior of the Forex market. These strategies are quite popular and will benefit long-term traders that prefer fundamental data analysis over technical factors:

Important News Trading Strategy

Carry Trade Strategy

Wednesday AUD/JPY Strategy

Forex Gap Strategy

Buy-and-Hold

If you want to share your Forex trading strategy with other traders, or want to ask some questions regarding the strategies presented here, please, join a discussion of the Forex strategies at the forum.