5 Best Forex Trading Strategies in Rwanda
The 5 Best Forex Trading Strategies for Rwandans revealed. We tested the best forex trading strategies for Rwandan Traders.
This is a complete guide to forex trading strategies in Rwanda.
In this in-depth guide you’ll learn:
- What are Trading Strategies in Forex Trading?
- How to develop an effective forex trading strategy?
- How to compare the best forex brokers for Rwandans?
- How to use these strategies as a part-time trader?
- Which methods and tips do top Rwandan forex traders use?
- Which broker offers a sign-up bonus to first-time traders?
- Which forex brokers offer a minimum deposit of $5 (5741,42 RWF) to start trading?
And lots more…
So if you’re ready to go “all in” with the best-tested forex trading strategies…
Let’s dive right in…
10 Best Forex Brokers in Rwanda for 2024
Rank
Broker
Review
Regulators
Min Deposit
Official Site
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- Louis Schoeman
Forex Trading Strategies in Rwanda (Overview)
- Scalping – Best for Rwandan Day Traders
- MACD Forex Strategy – Best for Mobile Traders on MetaTrader 4
- 100 Pips a Day – Best for MetaTrader 4 and 5 Mobile app
- Position Trading – Best for mid-to-long-term Rwandan traders
- Trend Trading – Best Trading Strategy for Beginner Traders
What is a Forex Trading Strategy?
A Forex trading strategy is a set of rules and guidelines that traders use to make informed decisions about buying and selling currencies in the foreign exchange (Forex) market.
1. Scalping – Best for Rwandan Day Traders
In the forex market, a method known as forex scalping is popular since it targets minor price changes. Many transactions are opened to make little gains on each one. To make more money, scalpers focus on making a high number of small earnings.
Liquidity and volatility in the forex market make scalping a popular strategy. Investors choose markets with a high degree of price volatility so they may profit from modest price changes. It is common to see this sort of trader concentrating on a profit margin of 5 pips for every transaction. If a big percentage of deals go their way, traders can make steady gains that are easy to come by.
However, scalping has its drawbacks, including the fact that you cannot remain in the trade for too long. It also takes a lot of time and attention, since you must keep an eye on the charts continually to locate new trading possibilities.
2. MACD Forex Strategy – Best for Mobile Traders on MetaTrader 4
Moving Average Convergence Divergence, also just known as MACD, is a strategy that follows trends and tries to capture them within the momentum. The MACD indicator shows the existing relationship between two moving averages between prices on financial instruments.
The 26-day Exponential Moving Average (EMA) is subtracted from the 12-day EMA to arrive at the MACD indicator calculation. On top of the MACD, the signal line (a nine-day EMA) serves as a guide for determining whether to buy or sell.
This is how things are usually established. As a trend-following indication that has survived the test of time, the MACD is a lagging indicator. To use a basic MACD trading technique, you need to know the ideal MACD indicator settings for day trading.
The MetaTrader 4 (MT4) platform already has the MACD indicator, so you do not have to download it individually. The finest day trading MACD indicator settings allow you to make significant adjustments to your various day trading techniques.
In addition, Rwandan mobile forex traders can also use the 2-line MACD or the 2 MACD trading strategy. The difference between the 2 MACD strategies and MACD is that the default MT4 indicator does not show the fast signal line instead, it shows traders a histogram of it.
However, it does not matter if you utilize it in combination with other instruments that function in tandem with the MACD. A unique characteristic of this that Rwandans will see is that it is like the red MA line that crosses the green histogram on the MT4 MACD, especially when the two MAs cross on the 2-line MACD.
Crosses between the two indicators occur at the same moment, thus there is no latency. In addition, using a ‘2-line MACD’ indicator in conjunction with the optimal MACD settings for day trading may enhance various trading methods.
3. 100 Pips a Day – Best for MetaTrader 4 and 5 Mobile app
A trend momentum technique for MT4 and MT5 mobile apps generates 100 pips per day using Forex mobile approach. Envelopes and the Relative Strength Index form the basis of this trading strategy.
The primary function of envelopes is to produce space with very accurate and dependable dynamic price resistance and support levels. In other words, the restoration of the price in the envelopes, the rebound, the violation, or any of these events is noteworthy.
The time frame that must be used with this strategy is 15 minutes or higher and in addition, Rwandan traders can perform the following actions to set this strategy up on any given instrument.
The trading rules for this strategy are as follows:
Buy/Go Long – The region between the lower envelope bands waits for the orange fast-moving averages to pass the slow purple one upward when the price bounces on the envelope or penetrates. However, the oversold territory must first be reached by the moving averages (the level below 20).
Sell/Go Short – The orange fast-moving averages cross the purple one down when the price bounces on the envelope or breaks through the top envelope bands. However, the moving averages must first have entered the oversold area (level above 80).
Exit the Position – Start with a stop loss just above or below the preceding peak or low of the swing. If the profit-to-loss ratio is less than 1:1.3, the stop loss should be at the opposite of the band preceding it.
4. Position Trading – Best for mid-to-long-term Rwandan traders
We have already covered scalping and determined that it is a great way to learn about forex trading, but it requires a lot of time and works to master. Long lengths of time spent in front of the computer are required during scalping.
Using positional trading is a fun approach to trading the foreign exchange market online. Even while it may only take you a few hours a week, it can provide substantial returns.
Considering these factors, let us explore how to position trading works in practice
There are several advantages to positional trading, such as the ability to take advantage of major market movements. As a general guideline, stay away from employing large levels of leverage and pay particular attention to currency swaps.
Your real profit may be offset by the costs of these exchanges.
Calculate your transaction’s potential volume, understand the swap and how to break even, and analyze the optimal time to join the deal.
5. Trend Trading – Best Trading Strategy for Beginner Traders
In forex trading, a trend trading technique is the most popular option for Rwandan beginner traders. In this strategy, the direction of market momentum is identified using technical indicators and long or short positions are taken appropriately.
It assumes that currency markets are anticipated to act in a specific manner, and that previous patterns and movements may be used to predict future outcomes. A robust risk management approach is necessary, however, since the previous performance of a currency pair does not predict any future price movements for that currency pair.
A few of the most often utilized forex trading technical indicators are MAs, the RSI, and the average directional index (ADX).
Relative Strength Index (RSI)
Meaning that price momentum and overbought/oversold indications may be detected.
What is a forex trading strategy?
A forex trading strategy can be defined as a technique or a method that is used by Rwandan traders to determine whether they must sell or buy a financial instrument at a specific time.
When establishing a trading strategy, traders can use technical analysis or fundamental, news-based events as a foundation. The Rwandan trader’s strategy is made up of indications that prompt them to either purchase or sell a financial instrument.
Trading systems for the forex market can easily be found online, where they can be downloaded for free or purchased, or they could even be created by traders themselves.
There are both manual and automatic approaches for creating trading signals in the forex market.
A key characteristic of this is that human emotion is removed from the equation by the latter systems, which may lead to improved performance.
When buying off-the-shelf forex trading techniques, traders should proceed with care since it is impossible to evaluate their track record and many effective trading systems are kept hidden.
Average Directional Index (ADX)
Using the average directional index, traders can estimate the strength of an upward or downward trend in the forex market. Anything over 25 indicates a significant trend, according to the indicator line. The tendency is more pronounced when the number is greater.
How can Rwandan traders develop an effective forex trading strategy?
The first step is to gain enough knowledge about forex trading and how trading strategies work, how they can be applied, and when, and how traders must backtest them for their effectiveness.
When they start trading, most forex traders use a basic and very general trading technique. For example, techniques show how a currency pair tends to recover from a certain support or resistance level.
As they gain more confidence in the market, traders opt to include more components to make the trading signals even more precise overall. For example, a certain percentage of retracement on pips, derived from a certain support level, could be required.
Rwandan traders must consider that a successful forex trading strategy consists of several key elements:
Market selection – Rwandan traders must choose the financial instrument that they want to trade and spend time learning all that they can about their instrument, whether it is forex trading in the Rwandan market, trading the Rwandan Stock Exchange, or any other instrument.
Position Size – The size of a trader’s position is critical in determining the amount of risk they are willing to take on in each transaction.
Entry points – Rules for when to initiate a long or short position in a particular currency pair must be developed by traders.
Exit Points – Long and short positions, as well as losing positions, need certain guidelines for traders to follow.
Overall Trading Tactics – When it comes to trading currency pairs, traders should have a plan in place that includes everything from how to purchase and sell the currencies to which execution technology to use.
Subsequently, traders can consider implementing automated trading systems in programs like MetaTrader. In addition, traders may use these tools to analyze how their trading tactics have fared in the past.
Examples of a Simple Forex Trading Strategy
Moving Average Crossover Strategy:
When the shorter-term moving average crosses below the longer-term moving average, it signals a sell opportunity.
Use this strategy to capture trends and potential reversals in the market.
Breakout Strategy:
Identify a key support or resistance level on the price chart.
When the price breaks above a resistance level, it signals a potential buy opportunity.
When the price breaks below a support level, it signals a potential sell opportunity.
Use this strategy to capture strong moves in the market after periods of consolidation.
Bollinger Bands Strategy:
Bollinger Bands consist of a moving average and upper and lower bands that represent volatility levels.
When the price moves close to the upper band, it signals a potential overbought condition and a selling opportunity.
When the price moves close to the lower band, it signals a potential oversold condition and a buying opportunity.
Use this strategy to capture reversals in the market and take advantage of volatility.
Price Action Strategy:
Analyze the price chart and look for patterns, such as trendlines, chart patterns, and candlestick formations.
Look for a confluence of multiple factors, such as a trendline breakout accompanied by a bullish candlestick pattern.
Use this strategy to make trading decisions based on the actual price movement and market behavior.
Change is as good as a Holiday, even in Forex Trading – but timing is key
The markets will always change and thus, Rwandan traders must learn to adapt. However, the magic is knowing when it is time to change. Typically, when traders adhere to the guidelines of a forex trading strategy, it performs very effectively, especially if traders have back tested their strategy.
The method loses its efficacy if a problem arises if a trader does not understand the guidelines.
However, Rwandan traders need to remember that changing a forex trading strategy too often might be detrimental. You might lose out if you change your plan too often.
Best Trading Strategies for Part-Time Rwandan Traders
Part-time traders in Rwanda may face several challenges because of a lack of available time. Here are some tips for trading part-time if you have a fluctuating schedule.
Know your Financial Markets Inside-Out
Choosing the most active currency pairings is the best approach for these periods (those with the most price action). Selecting major currency pairings is easier if you know when the main markets are open.
The New York Session starts at 8 am and ends at 5 pm Eastern Standard Time (EST).
The Toyo Session starts at 7 pm and ends at 4 am EST.
The Sydney Session opens at 5 pm and ends at 2 am EST.
The London Session opens at 3 am and ends at noon EST.
Always use Stop-Loss Orders
Allowing your computer to act as your “trading buddy” could be the most effective technique for part-time traders. As the forex market is so dynamic and tough to keep track of, the option to use trading software that allows you to rely on information technology might be advantageous.
The use of stop-loss orders is another frequent method, which means that your money is safeguarded if the market suddenly moves against your position.
Use Price Action Strategies
Using a price action trading method can be more suitable for part-time traders. A currency pair’s technicals or charts may be used to guide price action trading.
Up bars (a bar with a higher high or lower low than the preceding bar) and down bars (a bar with fewer bars in between) may be analyzed by traders (bars with a lower high or lower low than the previous).
Outside of bars, different price action indicators may be used to indicate an up or downtrend based on the direction of movement. Trading off a chart period that best suits your schedule is critical to the success of this technique.
Take fewer positions and hold them for longer
Investing in the right currency pairings requires a thorough knowledge of the underlying factors and a thorough understanding of your market. If you have studied the market and narrowed down your choices to a few currency pairings, you may then choose a few positions and hold them for some time.
Using stop-loss orders to limit your losses in the event of a market move against you is another smart step.
Seek Long-Term Trends
As opposed to hourly or even four-hour charts, looking at longer-term trends (daily/weekly) has its advantages. You will be able to trade while just having to glance at your computer once a day using this method.
Use the Technology that is available to you
Rwandan traders have access to several innovative mobile trading apps that let them set automated and personalized alerts. In this way, you can be notified of any movements in the market when you are not actively trading.
Best Brokers and Mobile Apps For Rwandans
We have tested and thoroughly reviewed 8 of the best forex brokers for forex trading strategies and mobile apps in Rwanda.
Exness – Best MT4 Broker and Instant Mobile Withdrawals
OANDA – #1 Forex Trading App for Rwandans
XM – Best MetaTrader 5 Mobile App
AvaTrade – Overall Best Trading Strategy Forex Broker in Rwandan and Top Recommended Algorithmic Trading App in Rwandan Today
TD Ameritrade – Most Resourceful Technical Analysis Broker for Rwandans
FXTM – Most Reliable Scalping Broker in Lagos
Pepperstone – Best News Trading Broker in Africa
Trade Station – Most Versatile Day Trading App for Rwandans Professional Traders
Best MetaTrader 4 Forex Broker for Rwandans
Overall Rating
- 4.9/5
Min Deposit
USD 10
Regulators
CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA
Trading Desk
MetaTrader 4 and MetaTrader 5
Crypto
Yes
Total Pairs
107
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Exness is our top choice as the best MetaTrader 4 broker for Rwandans who want to use a range of trading strategies. Rwandan traders can register a selection of account types on MetaTrader 4, allowing them to use advanced desktop, web, and mobile trading options.
Another benefit of trading with Exness is that Rwandans can register a trading account with the Rwandan Franc as the base account currency, exempting them from currency conversion fees.
#1 Forex Trading App for Rwandan
Overall Rating
- 4.9/5
Min Deposit
USD 0
Regulators
ASIC, BVI, CFTC, FCA, FFAJ, FSC, IIROC, MAS, NFA
Trading Desk
Metatrader 4 and Metatrader 5
Crypto
Yes
Total Pairs
45
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Our top pick for the #1 Forex Trading App for Rwandans goes to OANDA, with a high trust score and the use of an award-winning mobile trading platform that is easy to use, versatile charts with over 33 technical indicators, 13 drawing tools, and several timeframes.
Best MetaTrader 5 Mobile App
Overall Rating
- 4.5/5
Min Deposit
USD 10
Regulators
IFSC, CySec, ASIC
Trading Desk
Meta Trader 4
Crypto
Yes
Total Pairs
55
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
We chose XM Metatrader 5 mobile because Rwandans can download it on either iOS or Android devices such as smartphones and tablets. In combination with an XM account, Rwandan traders can discover all the benefits involved with trading forex in Rwanda using different trading strategies.
Overall Best Trading Strategy Forex Broker in Rwanda
Overall Rating
- 4.9/5
Min Deposit
USD 100
Regulators
ASIC, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Crypto
Yes
Total Pairs
55+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
AvaTrade is our top choice for the overall Best Trading Strategy Forex Broker in Rwanda. AvaTrade not only supports a wide range of trading strategies, but offers Rwandan traders the resources, tools, and platforms that they need to develop an effective trading strategy.
Most Resourceful Technical Analysis Broker for Rwandan
Overall Rating
- 4.7/5
Min Deposit
$0
Regulators
SEC, FINRA, CFTC, MAS
Trading Desk
Metatrader 4
Crypto
Yes
Total Pairs
–
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
thinkorswim from TD Ameritrade is our choice as the most resourceful Technical Analysis Broker in Rwanda. A trade ticket and favorite tools are available to traders on thinkorswim, so they may tailor the platform to their needs.
Forex, crypto, equities, and other Rwandan traders have access to many of the same analytical tools that options traders have. Drawing tools, technical indicators, and data visualization tools can all be found on the thinkorswim platform.
Most Reliable Scalping Broker in Lagos
Overall Rating
- 4.6/5
Min Deposit
USD 10
Regulators
CySec, FSCA
Trading Desk
MetaTrader 4 and MetaTrader 5
Crypto
Yes
Total Pairs
–
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
The most reliable scalping broker in Lagos is FXTM because of the tight spreads, reliable trade execution, and selection of retail trading accounts, providing Rwandan scalpers with a variety of options that suit their unique needs and objectives.
Best News Trading Broker in Africa
Overall Rating
- 4.9/5
Min Deposit
200 USD / 21 7071 RWF
Regulators
ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB
Trading Desk
MetaTrader 4, MetaTrader 5, cTrader and TradeView
Crypto
Yes (Not available in Africa)
Total Pairs
60+
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
News Trading is a popular trading strategy for Rwandan traders and our best trading broker for this is Pepperstone. Rwandan traders have unlimited access to market reviews, company news, and press releases through Pepperstone, allowing them to carry out in-depth fundamental analyses on the Rwandan forex and stock market.
Most Versatile Day Trading App for Rwandan Professional Traders
Overall Rating
- 4.7/5
Min Deposit
USD 0
Regulators
FSCA
Trading Desk
–
Crypto
Yes
Total Pairs
33
Islamic Account
No
Trading Fees
Low
Account Activation Time
24 Hours
Our top-rated Day Trading App for Professional Traders in Rwanda is Trade Station. Trade Station offers well-tested trading technology along with in-depth research resources. With Trade Station, day traders can easily back-test, optimize, and automate their day trading strategies.
Top Recommended Algorithmic Trading App in Rwanda Today
Overall Rating
- 4.9/5
Min Deposit
USD 100
Regulators
ASIC, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central
Crypto
Yes
Total Pairs
55+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
AvaTrade is our best choice where automated trading platforms for MT4 Robots in Rwanda are concerned. With AvaTrade and MT4, Nigerians can use Expert Advisors (EAs) to follow a set of advanced trading rules to make trades quickly, accurately, and consistently.
Best Instant Mobile Withdrawals for Rwandans
Overall Rating
- 4.9/5
Min Deposit
USD 10
Regulators
CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA
Trading Desk
MetaTrader 4 and MetaTrader 5
Crypto
Yes
Total Pairs
107
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
The best instant mobile withdrawals can be done through Exness, one of the best forex and CFD mobile brokers for Rwandan traders. Another benefit is that Rwandans can use the proprietary Exness Trader app to make instant deposits and instant withdrawals in Franc.
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Frequently Asked Questions
What is a forex trading strategy?
A well-defined trading strategy helps traders make objective and consistent trading decisions based on market conditions and trading goals.
What are the most popular forex trading strategies for Rwandans?
Rwandan traders, like traders from other countries, employ various forex trading strategies based on their preferences and goals.
What are the most common ways that Rwandan traders lose money?
Most traders lose money by not ensuring that the trading account is funded to cover margin requirements, over-leveraging with margin, trading with emotions, not using a trading strategy, and not using risk management tools like stop-loss and take-profit orders.
How can I choose the right trading strategy?
Start by clearly defining your trading goals. Evaluate your risk tolerance level. Determine your trading style based on your personality and available time. Learn about different trading strategies and techniques.
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