Trading strategies essay

This paper is concerned with implementing and evaluating popular mean-reversion trading strategies. The underlying market is modeled like a sinusoidal function, consistently switching between two states: the uptrend (bull market) and down trend (bear market).

There are many trading strategies in modern economy. It is not simple to choose right direction when company needs to use some strategy. There is better to have algorithm of actions. There is impossible to avoid risks due to the objective-subjective nature in economic activity. Risks have a significant influence on all areas of economic activity.

This means you must trade the lower timeframes and spend more hours in front of the screen. The Forex trading strategies you can use are scalping, day trading, or short-term swing trading. If you want to grow your wealth from trading, you can afford to have fewer trading opportunities.

Scalping is a very short-term strategy where you’ll hold trades minutes or even seconds. As a scalper, your concern with what the market is doing now and how you can take advantage of it. The main tool you’ll use to trade is order flow (which shows you the buy and sell orders in the market).