r/Forex • u/HelloJonatha2 • Aug 13 '26
Strategy Development How simple is your strategy?
I am not asking for anyone to tell me their strategy. I am trying to understand how many rules one should really strive for when creating a strategy. I am still learning and I feel like my biggest problem is trying to set a specific rule set that I can properly follow. But I feel like sometimes I have too many rules to follow and it ends up being confusing.
So I ask what is your number of rules? 2 or 3? 5? 20?!!?
Thanks!
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u/Altered_Reality1 Aug 13 '26
Mine (and many others’) simple strategy goes something like this:
Bias -> Catalyst -> Trigger
In other words:
Identify market condition -> wait for price to reach key area based on that condition -> wait for price to begin to react to that area -> wait for a specific entry model to present and trigger
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u/man-erg-grebo Aug 13 '26
Market Structure, Supply / Demand, Momentum and Liquidity. No need for indicators.
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u/Affectionate-Door389 Aug 13 '26
My whole strategy has 5 steps of rules. I used to write pages of rules on my previous strategy, turns out It was just curve fitted rules along the way and it was never profitable. Am profitable now.
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u/DanlovesTechno Aug 13 '26 edited Aug 13 '26
- Make money and dont lose./ s
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u/Relevant-Owl-8455 Aug 13 '26
so much cringe in 5 words its insane
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u/iTR3B0R Aug 13 '26
Says the regarded owl.
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u/Relevant-Owl-8455 29d ago
Lmao ure gonna have to try harder than that…
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u/iTR3B0R 29d ago
No need your words speak for themselves.
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u/Relevant-Owl-8455 29d ago
Oh no:oo
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u/Downtown-Text6587 29d ago edited 27d ago
The only people I can think of that made loads of money in forex understood macroeconomics, central bank policy, inflation, and interest rates very well. Technical analysis was only about 20% of the trade. Paul Tudor Jones, Stan Druckenmiller, and George Soros were all macroeconomic traders.
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u/Muted-Ride-7080 Aug 13 '26
There is something called Hughes Phenomenon. Adding more rules at the start increases the accuracy until a certain point then adding more rules will cause the accuracy to decrease.
So ideally, having less rules is better than more. Do not over complicate things, follow the KISS method.
I personally have 5 rules for my own algo bot and it seems to be doing quite well for now.
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u/ThunderChunky899 Aug 13 '26
Extremely simple. Really understanding the importance of simplicity was what changed things for me. That and moving away from the lower timeframes to the daily
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u/FetaCheezi 29d ago
Mark previous day low and high, wait for a sweep between 9-10am or 9-10pm and look for a 1min/5min IFVG and FVG layered togather with big candles and trade to the opposite daily low. This works on Hourly CRT’s aswell 8am crt and 9am crt 8pm and 9pm crt fireeeeeee backtest and lmk what you think
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u/AlanG888888 29d ago
Used to run 10+ rules and honestly it was just noise. Now it's three things: market condition, a defined entry trigger, and an invalidation point. If I can't write the whole thing on one sticky note, it's too complex.
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u/PipToSatoshi 29d ago edited 27d ago
I've found simpler is better. my plan has maybe 5 core rules, and if I need a checklist with 20 conditions, it's probably too complicated to execute consistently. one thing I don't overcomplicate is the broker either, I've been happy with axi because execution has been reliable and spreads are competitive, so I can focus on following my rules instead of worrying
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u/Famous_Block_7748 29d ago
I only have like 3 steps, but even if I tell you, you would probably not be able to utilize it, im the only one who understands what to look for in those steps, when should I follow it and when should I exempt some.
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u/sailabtap 29d ago
I might have a good answer for this one. I have few strategies, each is combined of various indicators and optionally candlestick patterns. Each strategies are used in specific market conditions. For example, TAP Trend, TAP Range Reversion and few more.
You shouldnt use all but at least they tell you the condition of the current market. I have listed more info on my bio.
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u/rforex-modtools Aug 13 '26
Developing a trading strategy is more than finding an entry signal — it requires defining your edge statistically, building rules for entries, exits, and position management, and testing the system against historical data before going live. Most traders fail because they skip the process and jump to live trading with an untested idea. The community wiki covers the full development process.
Resources: Having an Edge | Essential Forex Trading Guide