Course check: test yourself | Trading Strategies: How the Main Methods Work

Course check: test yourself

Flashcards for every strategy term, and ten mixed questions across the methods, their failure modes and how to test them.

By the end you'll be able to

Recall the vocabulary of trading methods and testing
Match each method to the market conditions it suits and the way it fails
Decide whether you are ready to write and test your own strategy

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12 short lessons with quizzes and interactive tools
Lesson videos for members
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You have now seen the main methods side by side: what each one bets on, where it works and how it breaks. Check that the picture has stuck before you write your own.

The whole course on one map

Which method suits which market?

Fit of seven trading methods to four market conditions. Use the method buttons to see details.
TrendingTrend	RangingRange	Volatile / newsNews	QuietQuiet
Good	Poor	Mixed	Poor
Good	Poor	Poor	Mixed
Mixed	Poor	Good	Mixed
Poor	Good	Poor	Good
Good	Good	Mixed	Poor
Mixed	Good	Poor	Mixed
Poor	Poor	Mixed	Poor

Trend following

Join a move that is already under way and stay in until the trend shows clear signs of ending.

When it works: Long, persistent moves, often driven by a shift in interest-rate expectations.
How it fails: Choppy, sideways markets: a run of small losses as each "new trend" reverses.
Typical profile: Often wins only 30–45% of trades; winners are typically several times the size of losers.
Holding time: Days to weeks, sometimes months.

Read the lesson: Trend following →

Every method in this course and the market conditions it suits. Tap a method to revisit its lesson.

Flashcards

Strategy and testing terms

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Course quiz

Course quiz: 10 questions

Question 1 of 10
Which of these is a complete strategy rather than an idea?
Question 2 of 10
A trend-following method wins 35% of its trades. What has to be true for it to make money?
Question 3 of 10
Which market conditions usually hurt a moving-average crossover strategy most?
Question 4 of 10
In an uptrend on GBP/USD, a pullback reaches old resistance at 1.2700, which is also the 38.2% retracement. What is the next step for a pullback trader?
Question 5 of 10
Why do many breakout traders prefer to enter on the retest rather than on the first break?
Question 6 of 10
A range trader sells near the top of a 60-pip range. Where does the stop belong?
Question 7 of 10
The same bullish pin bar appears in three places. Where does it carry the most weight?
Question 8 of 10
RSI reads 78 during a strong uptrend. What does that usually mean?
Question 9 of 10
You are long before a US jobs report and your stop is 25 pips away. What is the main risk at the release?
Question 10 of 10
A backtest of 25 trades shows +0.4R per trade. What is the honest conclusion?

Next steps: write your own one-page strategy in Choosing and writing your own strategy, then keep it honest with a trading journal.

Free certificate

Mark every lesson complete and pass the final quiz with 70% or more to get a certificate of completion. You can download it as a PDF or share it on LinkedIn.