Trading strategy during the coronavirus, what has changed?

There are a lot of trading strategies that have been used for decades when trading on the Forex currency market or the stock exchange.

But there comes a time when many of the classical strategies stop working; this happens during periods when the world economy is influenced by non-standard factors.

One of these factors, at the moment, is the coronavirus COVID-19; the impact of the virus on the global economy is simply enormous.

This has led to the fact that some well-known stock trading strategies have stopped working, and previously written profitable advisors are now trading at a loss.

How can we determine today which strategy will work and which one can be forgotten for a while until the situation stabilizes?

First of all, you should be wary of trading systems based on technical analysis, this also applies to the work of indicators and, as a consequence, trading robots.

The longer the forecast made on the basis of technical analysis, the less likely it is to be triggered.

Why does this happen?

It's quite simple. Imagine your indicator showing oversold market and a high probability of a price increase.

But at this time, the government of the country whose currency you bought introduces quarantine measures, thereby spurring the fall of the national currency and the rate begins to decline again, despite the fact that before that the market was in a state of oversold, breaking through all previously established levels.

Therefore, in this situation, I still recommended using more fundamental analysis in your trading. The use of a technical one will be justified only when trading on the shortest time periods using pipsing or scalping .

In addition, you should pay special attention to the work of advisors that are designed for trading on medium or long time frames.

The number of mistakes they make may increase, and this will lead to losses. A period of instability in global markets is a great chance to make good money, but only if you trade with caution. Open trades based on signals received from news or data after conducting a fundamental analysis of current trends.

If you carefully follow the news and analyze the price level, now you can get the maximum profit due to record market volatility .