Why Strategies Stops Working After Some Time.

[Chlamys]

No strategy is going to last forever because the market moves all the time, making it difficult to predict it. What you can do is learn a bit more on technical and fundamental analysis, which may help you get a better edge in the market.

 

[Asahi]

Then start with the EURUSD type trading pairs! Traders should trade in a non-volatile trading pair like I prefer trading in EURUSD pair to GBPUSD trading. This strategy safeguards against balance crashes. Analyzing a certain pairs is easier than analyzing multiple pairs altogether. Traders should not make things complex rather they should make things simple so that they can go ahead easily.

 

[Gastrolatry]

This is true. Strategies stop working after some time when the market movement changes, or any outside factors like inflation or implementation of economic policies, influence the prices of currencies, and increase or decrease the exchange rate. It is thus important to fundamentally analyse the forex market from time to time, so that you know when it is time to change your strategy, before it is too late and you end up losing a lot of money.

 

[Spittle]

The strategy needs to be modified or improved to fit into the changing market situations. It is impossible to have a strategy that works forever. You will have to respect the market trends and stay flexible to adapt to the changes that happen. You may not need to jump from one strategy to another but make changes as and when required.

 

[Vigorish]

No strategy lasts forever because of the market changes, competition, and your behaviour. Take preventive measures so that you can withstand the failures without getting wiped out. Stay updated because that’s the only way of staying for long even if your strategy fails.

 

[Jenet]

The strategy might become obsolete after some time. In such a case, a trader needs to revise their strategy. Forex market is highly volatile, so what works today may not work tomorrow, so if a trader has devised a strategy that is working fine today, but fails to work tomorrow, then he/she should go back to the demo account to backtest it and make the necessary changes to make it effective again.

 

[Ivo Zetticci]

Proper mindset of trading should be developed for trading; otherwise a trader can’t survive in trading. Proper understanding over the market can help a trader develop a trading-friendly mindset.

 

[shyammandal]

It is too much difficult to make consistence profit in Forex because trading strategy does not work for every trade . If is because of critical market movement . Trader can't wait for appropriate market condition and so that trader open their trading order in wrong time , as a result trader looses money . If trader apply the same trading strategy and control their emotions then it is possible to earn from every trade .

 

[Numiinous]

Regardless of how successful your strategies are, they can’t always give 100% results.The forex market is always changing and hence we have to make relevant changes in our strategies so we can trade as per the market conditions.

 

[Theanthropic]

It’s obvious for strategies to become obsolete after some time. This is why you are asked to keep updating your knowledge and checking market movements.

 

[Fartsdump]

The forex market is a dynamic market with many social and economic elements influencing price fluctuations. At times, price movements might be startling and unpredictable. As a result, depending just on techniques or technical analysis may not always be effective for traders.

 

[Zygomatic]

Because the forex market is so unpredictable, your strategies cannot get you 100% accurate results. You will either have to make changes to your strategy or change the whole strategy so that you can stay in the market for a long run.

 

[Belomancy]

I totally agree with OP on the point that we should not rely on indicators too much. Also we need to revise and update our strategy from time to time so that it does not stop working because of the changes in the market situation. It is also a fact that no strategy can work forever and we should stay flexible enough to switch it up as and when needed.

 

[Cittosis]

The forex market is very dynamic and it is subject to changes over time. And a strategy that worked for you a year ago may not give the same results as the market situation has changed. That is why we need to update and revise our strategies from time to time as no strategy can work forever.

 

[Petricolous]

So, Why does it seem like every forex trading strategy eventually stops working?

There are a few possible reasons:

1) The market conditions change and the strategy is no longer effective.

2) You get too comfortable with the strategy and start making careless mistakes.

3) You start second-guessing yourself and making emotionally-driven decisions instead of sticking to the plan.

4) You get lazy and stop following the strategy as closely as you should.

 

[Diagraphics]

Strategies can stop working when the change in a currency pair can become permanent, or when a significant global event like war, pandemic, or global crisis. That is why strategies need to be modified from time to time so that the trader can make profit in whatever situation the market presents to him.

 

[Hylotomous]

Most strategies will stop working after some time, as a trader you must know when to revise and create a new one to match the trend you’re following. You need to be a quick thinker and learn when to sell. The market is constantly changing, the shifts can be extremely unpredictable. Hence, traders should be precise and adaptive to market conditions.

 

[Satanology]

The most common reasons why Forex trading strategies STOP working after some time is mainly because of the ever changing nature of the forex market. The other reason is the lack of patience or lack of knowledge of a trader. Traders need to backtest their trading strategies every now and then.

 

[Mary Frederick]

Newbies should pass more time with the market to understand the market well so they can make a good strategy for them. Newbie traders have run their attempts thyself to develop their ability. If you are planning an investment, you can start with Eurotrader broker as they are allowing traders with a 111% deposit bonus.

 

[Economacy]

The forex market is not a stagnant market. It is highly volatile, and keeps changing trends very frequently. Some price trends last only for a few weeks, whereas some become permanament for years. That is why one strategy doesn’t always last. You can use the same technique of trading (like day trading, or swing trading, or scalping). But you will need to modify and bring changes in other aspects from time to time. Things like risk management, money management, lot sizes, pips traded, timeframe, needs to be adjusted as per the market conditions.