Essential CFD Trading Strategies for Consistent Profits
Discover proven trading strategies used by professional CFD traders. Learn when and how to apply different approaches based on market conditions and your trading style.
Published on December 11, 2024•18 min read
Building Your Trading Strategy Arsenal
Successful CFD trading requires a well-defined strategy that matches your personality, risk tolerance, and available time. No single strategy works in all market conditions, so professional traders develop multiple approaches and know when to apply each one.
Trend Following Strategies
Moving Average Crossover
Buy when fast MA crosses above slow MA, sell when it crosses below. Simple yet effective for trending markets.
Popular combinations: 20/50, 50/200 day MAs
Works best in strongly trending markets
Use additional filters to reduce false signals
Breakout Strategy
Enter trades when price breaks above resistance or below support with strong volume confirmation.
Wait for volume confirmation
Set stops just inside the breakout level
Target 2-3x the breakout range
Mean Reversion Strategies
RSI Oversold/Overbought
Buy when RSI drops below 30 (oversold), sell when it rises above 70 (overbought).
Works best in ranging markets
Combine with support/resistance levels
Use divergence for stronger signals
Bollinger Band Squeeze
Trade the expansion after periods of low volatility when bands contract.
Look for band squeeze (low volatility)
Enter on breakout direction
Expect strong moves after compression
Scalping Strategies
1-Minute Scalping
Quick trades lasting minutes, targeting small price movements with tight stops.
Requires fast execution and low spreads
Focus on major currency pairs or indices
Strict risk management essential
Swing Trading Strategies
Support/Resistance Swing
Hold positions for days to weeks, trading bounces off key levels.