To succeed in making a career in Prop Firm, Each trader requires well thought and trading strategies while understanding the rules of prop firm and how much risk that are set by those firms. Trading and specially forex trading is a very complex yet vast field when it comes to utilizing trading strategies. These strategies are very useful when it comes to trading with Forex Prop Firms and their funded accounts. 

Trend Trading

Trend Trading is one of the most basic strategy and good for starting as a beginner. In this strategy, Trader identifies the asset’s trend in market in a particular direction and then the trader adds a position in the same direction which aligns with the trend. The strategy is one of the easiest and effective. To make this strategy more accurate, Trader can use various indicators such as moving averages or trend lines to identify trends.

Swing Trading

Swing Trading is also one of the best and most profitable trading strategies as it only requires traders to enter in the market at the right and precise timing. This kind of strategy requires a trader to be patient and technical analysis to identify potential price movement in future. Swing trades are basically holding a trade for a longer period of time while aiming for as much profit as the trader can make until the market retraces back and moves in the opposite direction. This strategy is best for those traders who can give a few hours each day to monitor the markets.

Scalping

Scalping is a trading strategy which is quite tricky to understand but once mastered, it can do wonders to the trader’s profit. It is somewhat opposite of what Swing Trading stands for. In scalping, traders try to make small trades in a short period of time to make small profits within the day. Scalping is a strategy that is very fast paced and requires a lot of time and strict discipline.

Position Trading

Position Trading or Position Trade Strategy is another great strategy for making profits. It is similar to swing trading but it takes longer period of time. Position Traders hold their traders for weeks or months or sometimes year. Position Trade Strategy requires a very deep understanding of fundamentals factors and economic data to make the right trading decision. This is great for traders who do not want to be stressed about small trading gains or loss.

Day Trading

Day Trading or Day Trading Strategy is a very popular strategy among Forex Traders. Day Trading, As the name suggests is opening and closing of trades within a single day. This type of strategy avoids the risk of trading overnight. This strategy is great for those who wants to become a full time trader as it requires a good understanding of technical analysis and a lot of time investment. For this strategy, Trader will have to have a great understanding of leverage and technical analysis.

Breakout Trading

Breakout Trading Strategy is a type of strategy where the trader enters the market as early as possible in a trend to make as much profit as he/she can until the next trend starts. For this strategy, Trader will have to read the charts quickly while also making quick decisions to figure out when the market will start going in favorable direction to enter in the trade and constantly monitor as the trade progress and when the market will break the trend again and the trader can add another position to make more profit. 

Carry Trade

Carry Trade Strategy is something totally different than other trading strategies that we have mentioned as in this trading strategy, Traders borrow a Currency with low interest rate and invest in a currency with a higher interest rate and try to profit from the difference of interest rate. This strategy is not recommended for beginners as this kind of trading is very risky and requires traders a solid understanding of interest.

Fundamental Trading

Fundamental Trading Strategy is one of the unique trading strategies among the list as instead of doing technical analysis and trends and market movements. Fundamental Trading involves trading based on Economic news event, economic indicatiorrs and the current economic affairs in the countries related to the currencies. This strategy often requires a deep understanding of global economics and what kind of news or decision by the government can affect the prices most to make profit out of it.

Price Action Trading

Price Action trading strategy is a kind of trading where the trader makes trading decisions based on how the price is moving and this strategy does not require a technical indicators or analysis. Price Action Tradingg is done based on where the price is moving, how the candlesticks are being made, support and resistance level and trend lines. This is great for trader who wants to make quick profit in the market.

Range Trading

Range Trading Strategy is a strategy where the trader identifies the price and trade within those price ranges, This kind of trading requires buying at support levels and selling as resistance level. This type of strategy only works best in markets that are consistently volatile such as gold and bitcoin. This type of strategy is a bit hard to understand as it requies both fundamental and technical analysis and with all that traders will have to build the ability to identify the price ranges as how high or low the price will go.

Conclusion

Trading with prop firms is a bit difficult without a good trading strategy as each prop firm has a specific set of rules and how much the trader can risk. Although the strategies we have mentioned above are specially mentioned as they are allowed in almost every firm. Still there are few firms that do add restrictions on a few strategies but if the traders learn and master these strategies and can apply based on the situation then they can make profit and pass challenge account more easily.