What are trading strategies?
Modified on Tue, 27 May at 6:38 AM
Trading strategies are structured approaches that help traders decide when to buy or sell an asset like forex, commodities, indices, or stocks. These strategies are usually based on technical analysis, fundamental analysis, or a mix of both, and they aim to maximize profits while minimizing risk.
At Pivex, we support responsible and consistent trading. That’s why our platform, MatchTrader, and the educational hub, Pivex Academy, are designed to help traders of all levels understand, test, and master various trading strategies.
Types of Trading Strategies
Trading Strategies | What it is | Example | Common Tools |
Trend Following Strategy | You follow the direction of the market, either buying during uptrends or selling during downtrends. The goal is to “ride the wave” until signs of a reversal appear | If EUR/USD is steadily rising, a trend-following trader might enter a buy trade when the price is above the 50-day moving average, holding until the trend weakens. | Moving Averages, MACD, trendlines. |
Scalping Strategy | Scalping focuses on ultra-short trades that aim to capture small price changes. Positions last seconds to minutes and are executed frequently throughout the day. | A trader might buy GBP/USD at 1.2700 and close the position seconds later at 1.2703 — locking in a quick 3-pip gain. | Tick charts, 1-minute charts, and fast execution on MatchTrader. |
Swing Trading Strategy | Swing traders hold positions for several days or weeks, aiming to capture medium-term moves or “swings” between support and resistance levels. | After spotting a pullback on USD/JPY, a trader enters at 147.50 and exits at 149.00 after a reversal. | RSI, Fibonacci, trendlines, support/resistance |
Breakout Strategy | Breakout trading involves entering a position when the price breaks a well-established support or resistance level, expecting strong momentum to follow. | If NASDAQ breaks above 15,000 after days of consolidation, a trader goes long, expecting the breakout to continue. | Volume indicators, Bollinger Bands, breakout zones. |
Value-Based Strategy (Long-Term) | Often used in stock or crypto trading, this strategy focuses on buying assets that appear fundamentally undervalued based on real-world data. | If Bitcoin falls to $20,000 and macroeconomic indicators still favor adoption, a trader may buy and hold until recovery. | Fundamental data, earnings reports, and economic indicators. |
Master the art of spotting market trends with Pivex Academy’s in-depth Technical, Fundamental, and Statistical Analysis modules — your key to smarter, more confident trading!
Choosing the Right Strategy
Every strategy has its own:
• Timeframe (from seconds to months)
• Risk profile (e.g., scalping is high risk; swing trading is moderate)
• Market type (some strategies work better in trending vs. ranging markets)
Your job as a trader is to find the strategy that fits your personality, time availability, and risk tolerance, and stick to it consistently.
How Pivex Helps You Apply Strategies
• MatchTrader: Our platform offers real-time data, indicators, charting tools, and risk management features.
• Pivex Academy: Courses on technical, fundamental, and sentiment analysis help you master strategy foundations.
• Simulated Accounts: Practice in a risk-free environment using real market data and test strategies without real capital at stake.
Trading without a strategy is gambling. At Pivex, we encourage you to build structure into your trading, starting with proper education, solid plans, and consistent execution.
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