2 strategies that have stood the test of time

Trading is not a lottery. It’s a business – and every business needs a clear strategy. Without it, trading turns into haphazard decision-making with no system and no long-term results.

Strategy is your long-term game plan. It combines your trading style, timeframe, entry and exit rules, risk management and the type of markets you follow. A successful trader knows exactly what they are looking for and why they are entering the market.

In this article, we will present two proven strategies that have proven themselves repeatedly in various market conditions and are used by both retail traders and prop trading professionals.

1. Trend Following

A strategy built on a simple but powerful principle: “The trend is your friend.” You follow the direction of the market and join it during corrections – you don’t trade against the tide, but use its strength to your advantage.

Typical signs:

-Using moving averages (e.g. EMA 50/200)

-Structure of higher highs and higher lows in the uptrend

-Suitable for swing trading and longer holding

Trend strategies are particularly effective in strongly directional markets – and while they require patience, their risk-to-reward tends to be very favourable.

2. Mean Reversion

Market prices often move away from fair value – but sooner or later they tend to return to it. This strategy relies on the market “weathering” a move in one direction and then returning to the mean.

Typical tools:

-RSI – overbought/oversold zones

-Bollinger Bands – reflections from the upper/lower boundary

-VWAP as a magnet for return pricing

Reversion to the mean strategies work well in sideways, indecisive markets and can be traded both intraday and swing. The important thing is Precise execution and risk control – because proper timing is the key to success.

How to choose the right one?

Each strategy has its advantages and specifics. It’s not about which one is “best” – it’s about which one fits you best.

Ask yourself some fundamental questions:

-Do I enjoy lightning decisions or do I prefer to hold positions longer?

-Do I trust the market structure more or do I prefer trading by indicators?

-Do I have time to follow the news, or do I want a purely technical approach?

Your answers will help you narrow down your choices and focus on a strategy that suits you in the long term. And once you’ve chosen it, it’s time to to test, tweak and iterate – until it becomes your competitive advantage in the marketplace.

Raise capital. Get a chance.

In the world of prop trading there is no room for chance. If you’re serious about trading, you need a strategy that will stand the test of time – and above all disciplinewith which to repeat it over and over again.