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How to Build A Forex Trading Model

Welcome to forex trading—a global market that runs on a 24/7 basis, offering enormous opportunities for traders ready to take the plunge.

This article discusses the guidelines and outline to build a trading model for forex or currency trading. Also discussed are the relevant points about how forex trading is different than equity trading, as well as specific points to be considered for building the forex trading model.

The great advantage of markets is that it accommodates all sorts of theories (fundamental, technical, price action, etc.), allowing market participants enormous opportunities who follow varied patterns and principles to trade. It’s a matter of time—one is either losing or winning at any particular moment. When carefully done, building a trading model based on a clearly conceptualized strategy allows for reducing the losing trades and improving the number of winning trades, thereby enabling a systematic approach to profit.

As a general thought and process flow, building a trading strategy can be captured within the following steps, as demonstrated in this figure:

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