There are a lot of traders who look at creating their own forex trading strategies .  If you are one of these traders you need to know what you have to look at when you create forex trading strategies.  You also have to decide if you are going to be creating your strategy from scratch or if you are going to use a base strategy.

Base Forex Trading Strategies

Most traders who look at creating their own forex trading strategies will have a base strategy.  A base strategy is a method of trading that you are comfortable with, but want to change as well.  You should keep the bones of the strategy which is the theory behind the trading.  The theory behind the trading is generally going to be range or trend trading.

All other parts of the base strategy can be changed if you want.  The amount of changes you make will vary depending on how much you want to deviate from the base strategy.  There are some traders who change a small amount of points in a strategy while other traders change almost all of the strategy.  There are certain points that you can consider when you create your strategy.

The Timeframe

If you are using a base strategy then you are going to already have a timeframe.  The timeframe of the base strategy should not be changed because this will change everything about the strategy.  If you are not using a base strategy then you need to consider the timeframe you are comfortable trading in.  The three timeframes that you can choose from are long, medium and short-term.

The Analysis Method

The analysis method that is used with the trading strategy can be changed whether you use a base strategy or not.  However, when you change the analysis you have to consider a number of different factors.  You need to consider the type of analysis you are going to use and the intricacies of the analysis you will use.

There are two analysis methods that you can consider.  The first is technical analysis which uses forex charts to analyse the market movements.  The second method is fundamental analysis which uses the forex news to analyse the market movement.  When you create your own forex trading strategy you have the option of combining technical and fundamental analysis.  Of course, you have to ensure that you are looking at the correct information with this combination.

The intricacies of the analysis are the variables in the methods.  For technical analysis this will include the chart timeframes and the indicators that you are going to use.  For fundamental analysis you have to consider the news releases you are going to be using.  Certain new releases have a bigger impact on the market than others.

The Signals You Look For

To trade on the market you need to have trading signals that tell you when to enter and exit the market.  These signals will come from your analysis of the market.  It is important that you know what these signals are for your new strategy.  It is recommended that you test the strategy on a demo account to ensure that you are getting the right signals from your analysis.