💱 Forex & CFD Trading

A Simple Forex Strategy You Can Actually Follow

Use this rules-based template—trend filter, entry trigger, stop, and exit—to build and test your first FX strategy.

Strategy Template

  • Market: 1–3 major pairs
  • Timeframe: 1H or 4H
  • Trend Filter: Price above 50-EMA = long-bias; below = short-bias
  • Entry Trigger: Pullback to 20-EMA + engulfing candle in trend direction
  • Stop: Beyond swing or 1×ATR(14)
  • Target: 1.5–2.0R or structure level
  • Risk: 0.5–1% per trade

Example (Long)

  1. 1. Price above 50-EMA
  2. 2. Pullback touches 20-EMA and prints bullish engulfing
  3. 3. Enter on candle close; stop below swing; target next resistance ~1.8R

Pro Tips & Common Mistakes

Pro Tips

Forward-test at least 30–50 trades. Record screenshots and metrics (win rate, average R, drawdown).

Common Mistakes

Changing rules mid-test; over-optimizing parameters.

Frequently Asked Questions

Which indicators?

20/50 EMAs + ATR is enough to start.

How long to test?

Minimum one market cycle per timeframe.