Strategy - a carefully thought over action plan for achieving a certain goal.

When it comes to financial markets, a trading strategy can be defined as a strict system of methods and criteria providing answers to the following questions:

• When (at what price) should we open a position?
• What should be the direction of the position?
• What should be the position volume?
• Are we going to change the current position (add, take, reverse)?
• When (at what price) should we close the position?

The main goal of a Forex strategy is to make profit with as little fluctuation of the trading account as possible. It has to send a clear “Buy Signal” and “Sell Signal”.

There are two main methods of building Forex strategies:

• Technical analysis
• Fundamental analysis

Fundamental analysis is based on discrimination and measurement of factors which determine the real value of financial instruments. Such factors are the general economic and political conditions on the market. They influence the demand and supply of the products and services offered by this branch. If there is a fall in supply and the demand remains steadily the same, this will lead to increase in the market price. An increase in supply creates the opposite effect.

Technical analysis is primarily (but not exclusively) conducted by studying charts of past price and trading action. Many different methods and tools are used in technical analysis, but they all rely on the assumption that price patterns and trends exist in markets, and that they can be identified and exploited. It is not concerned with why a price is moving (e.g. poor earnings, difficult business environment, poor management, or other fundamentals) but rather with whether it is moving in a particular direction or in a particular chart pattern.

Technical analysis uses technical indicators, channels, support and resistance lines, Japanese candlesticks, fractals, Elliot waves, Fibonacci numbers and other techniques to predict the direction and force of the trend.

Forex Strategy Builder (FSB) lets you build a trading strategy grounded on the principles of technical analysis, in particular the technical indicators. It provides easy to use menus with all the indicator parameters and logic. Without using mathematical formulas or scripts, you determine the point of entering and exiting the market and what market conditions have to be fulfilled to do this.

When an indicator parameter is changed or or a new logical condition is added, FSB calculates and displays the trading result immediately. Right in front of your eyes a chart expresses your hypothetical account balance if you had traded, using the chosen strategy.

Because of the highly sophisticated methods of computing, the displayed results are maximally near to the real Forex dealing. Looking over the account chart, you can evaluate the strategy at once. If the chart is steadily increasing with minimum fluctuations, this means that the strategy is potentially good.

The statistics and the journal records show you all aspects of the strategy's behavior.