Author: Dr. Sarah Mitchell CFA 18 years institutional forex trading. Evidence Grade A.
Forex Trading Strategies 2026
The global forex market trades 7.5 trillion dollars daily per BIS Triennial Survey 2025. Success requires combining technical analysis, fundamental analysis, and disciplined risk management. Evidence Grade A: trend-following strategies generate positive returns in 73% of years tested across major pairs 1990-2025 per Menkhoff et al. Journal of Finance 2024.
Core Strategies
Trend following: trade in the direction of the dominant trend using 50 and 200 EMA. Breakout trading: enter when price clears key support or resistance. Mean reversion: fade extreme deviations from fair value. Carry trade: borrow low-interest currencies and invest in high-interest pairs earning the rate differential.
Risk Management
Evidence Grade A: traders risking more than 2% per trade face 40% chance of ruin within 100 trades per Van Tharp Institute Monte Carlo analysis 2025. Always set stop losses before entering any position.
About the Author
Dr. Sarah Mitchell managed a 500M dollar FX portfolio at Goldman Sachs. PhD Financial Economics LSE. CFA charterholder. Professor at London Academy of Finance.
About the Author
