The Forex Triad trading system was developed by Jason Fielder through what he termed as observations, combined knowledge from investing, and common sense. This system was formed with a common sense question: how can you make money off a system that isn't applicable (or is wrong for the market) literally 2/3 of the time?
Basically, the market is always doing one of three things, and only one of three things. The market is either:
1.Trending
2.Counter-trending
3.Breaking out
That's it. Those are the only three patterns that the Forex market can be in, and the market will always be in one of these three states. So how can a breakout method be profitable when the market wasn't usually breaking out? Same for trend and counter-trend. Jason Fielder wasn't the only one who thought this, as several Forex trading systems try to be "adaptable," having various technical trading strategies set up so that when the market goes a certain way you know what to do.
There are several different Forex trading systems that now have multiple strategies for trading, all based on how the market is moving. The Triad Trading Formula was the system developed by Jason Fielder to adapt to the market.
A portfolio is something every trader and investor knows about. Spread the eggs around so the collapse of one market (see Enron) doesn't wipe you out. So if that is commonly held as wise practice, why was everyone trying to find a single way to trade the Forex? Part of the reason for this might be that it's easier to teach a trading strategy that only has to deal with one part of the market. Unfortunately, that's not practical in a real life situation.
The Triad Formula of trading is a portfolio of strategies that gives a trader the tools to always be making money in the market, whether the market is trending, counter-trending, or entering a breakout.
This way, no matter what the market is doing, there's a strategy that can be used to profit. In theory, this will allow you the steady and impressive profits that you've been yearning for all along, with as much security as can be found in the Forex market.
