Open account Войти
Sign in
RUEN

Trading strategies

One Up Solution experts talk about how to choose a trading strategy for successful trading and start earning money

Open an account

A trading strategy should answer three main questions:

  • What to trade?

  • Where to trade?

  • How to trade?

Why is it important to have a trading strategy?

  • We know what we need to do

    Having a strategy allows you to determine the best steps to take in various circumstances to enhance gains or reduce possible losses.

  • Understanding the end goal

    With a plan, you understand the end goal. You break it down into several stages and at each stage check the effectiveness of the strategy. If you realize that the plan is not being executed, you rebuild the trading system.

  • Don't get emotional

    When you have a plan, you follow it clearly without giving in to emotions. For example, after opening a deal, the price has moved in the opposite direction, but the plan is for an acceptable loss. Therefore, you do not close it in panic, you do not wait until the last minute in the hope that the price will turn around, but thoughtfully follow a premeditated strategy.

Key components of a trading strategy:

Trading system

While a trading strategy defines the overall trading concept, a trading system is a specific plan and algorithm of actions within a trading strategy that defines entry and exit points, risk and position size management, and much more.


Traders can use different types of trading systems depending on their individual needs and trading styles. A well-designed trading system can help traders make informed decisions and improve their trading performance.

Risk management

Risk management system is a set of rules that allow to assess initial risks when entering a deal, control them when in a position, and reduce risks when triggers for exiting a position appear.


The risk management system cannot guarantee the absence of losses, but it will help to reduce them.

Capital management

A capital management system is a set of rules that allow a trader to effectively manage his trading capital in order to maximize profits and minimize losses, as well as to determine the optimal ratio between potential profit and risk.


The capital management system is primarily responsible for position size.

Trading plan

Trading plan is a document that describes all tactical aspects of a trading strategy, including the entry and exit plan, stop loss and take profit levels, order types, position size, etc. A trading plan should be clear, consistent, logical and cover almost all possible scenarios of events.


The trading plan includes:


  • Trading idea
  • Entry and Exit Plan
  • Risk management plan
  • Capital management plan
  • Monitoring and analysis

Analysis tools

Analysis tools include a set of market research methods that a trader uses to determine the current state of the market and forecast future market movements, select trading instruments, assess possible risks, find market patterns and potential opportunities.


The main methods and tools of analysis include technical and fundamental analysis, economic analysis, seasonal analysis, price and volume dynamics analysis.

There are short, medium and long term strategies

  • Short-term

    This strategy is suitable for already experienced traders. It includes:


    1. 1. Intraday - intraday trading where trades are opened and closed within one day, allowing traders to make up to 5 trades daily. This strategy is simple and suitable for most market participants.

    2. 2. Scalping - trading with minimal contracts for short periods, from a few seconds to half an hour. Experienced scalpers can make up to 200 trades per day, but this method is complicated and not always profitable.

  • Medium-term

    Positions are held from 1 day to 2 weeks, with leverage of no more than 1:3.


    Technical and fundamental analysis is performed before entering the market. This strategy, based on trend breakout, is better suited for beginners than scalping.

  • Long-term

    Contracts for several months, suitable for traders of all levels. Long-term trading requires minimal supervision and can generate significant profits, especially in position trading on cryptocurrencies and stock assets, where protracted trends allow you to take maximum profits.

What does the choice of trading strategy depend on?

Nowadays, many simple strategies have been developed. Therefore, it is important for each newcomer to choose the most optimal plan and improve it over time. Profit in this business depends largely on the right choice of the moment to enter a deal and the period to hold a position.

  • 3 rules to consider when choosing a strategy:

  • Rule 1: Duration of holding open positions in exchange trading

    After signing a contract, each trader decides how long to keep a deal open, which includes determining the closing time and date.Therefore, trading strategies are subdivided into short-, medium- and long-term according to the duration of position holding.

  • Rule 2: Approach to currency market analysis in trading - fundamental and technical

    It is important to use both types of analysis for correct market forecasting: fundamental and technical. Mastering only one of them is not enough for successful trading. Most often losses are incurred by traders who are not proficient in either method, while the combination of both types of analysis helps to achieve greater profits.

  • Rule 3: Method of chart analysis (pattern search, indicator, candlestick)

    The best trading strategies for the market are those that utilize different tools at the same time. In order to analyze changes in the price chart, it is necessary to use technical analysis, which consists of 3 main groups: figure (price patterns), indicator, candlestick.