eToro
eToro Review
eToro is a new and innovative firm that offers its more than 50000 clients from all parts of the world an innovative and even fun approach to trading. The American branch of the firm, eToroUSA is an online platform operated by Tradonomi LLC that was established for the purpose of introducing prospective traders to U.S. regulated brokers. Tradonomi LLC. is registered with the CFTC and is a member of NFA (ID:0382918).Visit broker
Unique Features of Trading with eToro
The eToro forex trading platform is designed for traders with little or no experience in trading currencies. eToro’s website states explicitly that the company aims to specialize in the retail section of the forex market. Thus the firm offers the best tools for facilitating the new career of the beginning trader with the most accommodating and user-friendly approach. The eToro philosophy has the goal of connecting the international world of finance and currency trading with the retail trader at the most basic level.Account Types
Since many beginning traders have little understanding of the forex market, in order to help its clients manage risks better, eToro requires a very low $50 minimum for account deposits, with leverage options beginning at at 1:10 and reaching to 1:400.Deposits and withdrawals
eToro is very flexible about client deposits. MoneyGram, WesternUnion, Neteller, PayPal, WebMoney are accepted channels for account funding , along with the standard credit card deposits and wire transfers. The minimum deposit with a credit card, PayPal, Neteller, WebMoney or Moneybookers account is $50, and it is $500 with WesternUnion, MoneyGram, and wire transfers. The eToro website offers extensive help and guidance on client deposits. Withdrawal of funds is equally easy, and the filling and submittal of an online form is the only necessity.Trading Platform
eToro’s trading platform is the most unique in the forex universe. The game like interface, currencies that run marathons, pull ropes or wrestle with each other, the cowboys and sumo wrestlers who fight as your trades move into the red or black, all bring a whole new experience of entertainment and excitement to currency trading. We all know that stress is one of the vicious enemies of a trader; eToro aims to eliminate, or at least reduce the stressful aspect of currency trading with this innovative approach to trading. In order to avoid overwhelming a beginning trader with a vast array of charts and tools for which he will have little use, eToro’s platform is kept clean and clear, with only the most important data displayed to help the trader evaluate market developments better. The most important feature of the eToro forex platform is its user-friendliness: an uncluttered screen helps the trader focus on the price action itself while using low leverage and risking little, until he is able interpret the numerous conflicting signals generated by the bulky technical packages offered by other firms. The trading platform is updated regularly, as the firm is committed to bringing the retail forex community the most satisfying experience through the most up-to-date software in the market. Finally, to ensure that the trader doesn’t suffer unexpected large losses due to neglect or anxiety, the platform will automatically enter a stop-loss order on any new trade that is ordered.Beginner’s Education
eToro is committed to bringing the easiest and most rewarding forex trading experience to beginners. As such, it offers numerous online tutorials, trading guides, along with the usual demo account. Since eToro is also a community with an active online trading forum, with features public and private chat opportunities, along with extensive networking capabilities, the beginning trader will have more than enough choices for the tools he will use to better his skills. The support staff, forums, and numerous online guides and tutorials contribute to a quicker learning period for the beginner. Since the firm’s stated purpose is to help the beginners get used to trading with the shortest and lightest trouble, there is a wide array of tools with which the beginner can improve his trading skills.Security and Privacy
To ensure the safety of customer funds, eToro uses industry standard Secure Socket Layering (SSL) technology for encryption of data. eToro doesn’t share crdit history, net worth, or other related income data with any other institution. Operated by leading online forex brokers, the technical staff who develop and innovate on the eToro platform is committed to bringing you the best spreads with the most precise and timely trade executions.Conclusion
eToro is certainly one of the best offers in the market for the beginning trader. Flexible leverage options, a very low minimum deposit requirement all ensure that the inevitable failures of the beginner can be accommodated without suffering. The user-friendly, fun, and exciting presentation of the eToro trading software may reduce the stress that you’ll suffer as you get used to trading. It’s hard to laugh when your trading strategy or method is proven to be wrong, but with eToro, you’ll always be able to take it easy, just as you should. As the emotional burden of trading is reduced, the beginning trader can concentrate on honing his skills, and refining his methods: there’s no other approach out there that will contribute more to this aspect of your career. Obviously, an experienced trader will have less need of some of the most striking advantages offered by eToro. Still, even the seasoned traders should give eToro a chance to help alleviate the stress of trading: a light attitude, and good humor are always good in life, whether you’re a retail trader of forex, or a trader of the fortunes of humanity, like the US President.Click here to open an account with eToro
Finesco
Finexo Review
Finexo was established in 2003 by a number of experienced bankers, forex software developers, and hedge fund traders with the purpose of revolutionizing the forex industry with a unique and innovative approach to forex brokerage. Though a younger member of the broker community, Finexo already ranks high, with excellence in efficiency and customer satisfaction.Visit broker
Account Types
Declared by Finexo to be the best and most sophisticated web-based forex trading software in the industry, the ForexTrader Platform is an excellent software package suitable to both novice and experienced traders. Although charting choices are less comprehensive than the offerings of some other firms, the one-click trading, and trailing stop capabilities, the ability to enter limit and stop orders of all kinds, and the mobile and PDA trading options easily vindicate Finexo’s claims about the power of their trading software.The firm offers both a mini and standard account to match the capabilities of traders from different backgrounds. Similarly, leverage up to 200:1 is available for experienced traders.
Another strength of trading with Finexo is the extensive array of additional tools that explore every aspect of forex trading through audio briefings, and daily reports. An online forex glossary, a comprehensive online forex calendar and advanced charting options are the other benefits of opening an account with the firm.
Finexo offers all the popular major pairs that offer the lowest risk, volatility, and highest profit potential for traders. Trading in EUR/USD, EUR/JPY, USD/JPY and many other is possible, and the spread of the EUR/USD pair is often as low as two pips, beating many of Finexo’s competitors.
Finally, and in line with industry standards, Finexo offers a free demo account for traders who would like to test their skills before committing real funds to their accounts.
Deposits and Withdrawals
The minimum deposit requirement at Finexo is quite low. At $25, opening an account is affordable to almost anyone with the legal capability. The firm accepts deposits by Visa, MasterCard, Diners, Amex, in addition to PayPal, and other online financial intermediaries such as MoneyBookers. In the case of deposits through credit cards, Liberty Reserve, or MoneyBookers, the deposit process is quick and free of any charges. Wired funds incur bank fees, while PayPal deposits are liable to charges as per the terms and conditions of the company.Withdrawals are usually completed within 48 hours, and are subject to certain fees. PayPal withdrawals are charged 3.4% and 0.5 SGD, and withdrawals to a MoneyBookers account are subject to a charge of 3% of the amount. Bank withdrawals cost a minimal $10, but the amount will depend on each bank’s policies. Finally, credit card withdrawals cost 3.5% of the amount withdrawn.
There are also some limits on the maximum amount that can be deposited in a single transaction. For credit and debit cards the limit is $5,000, while for bank transfers, e-gold, or e-bullion deposits the ceiling is at $50,000.
In general, deposits and withdrawals are facilitated with ease at Finexo. While the usual timeframe is 48 hours for withdrawals, in cases where the process is longer than usual, a time limit of 7 days is part of Finexo’s commitment to customer satisfaction.
Security
Finexo has operations in Hungary, Austria, and the Netherlands and complies with local regulations in these nations.In addition to its compliance with regulatory rules, Finexo ensures that it is up-to-date with the latest technological developments in the internet security industry. The company is committed to customer privacy and safety.
Customer Service
As a broker catering to the individual and retail trader, Finexo is committed to ensuring that each and every trader is treated with respect and trust. The firm’s customer service is available 24 hours a day, and enlists reliable professionals in order that clients’ problems are resolved as swiftly as possible. The customer service performs its duties based on the notion that traders expect to interact with the trading software, not the customer service, and are committed to resolving emerging issues in as friendly, positive an attitude as possible.Conclusion
For both the experienced, and beginning traders Finexo offers some capabilities that are unique in the industry. The firm’s great success in establishing itself in the course of just six years is a proof of their innovative and competitive approach to retail forex brokerage. Interesting technological innovations, such as the capability to open and close trades via mobile, low initial deposit requirements, the ability to enter trailing stops, and a number of other advanced features guarantee that trading with Finexo is a rewarding and profitable experience.To avoid the headaches and troubles of choosing an unaccountable, unreliable and shady broker, we must make sure that our chosen broker is open, and friendly to its customers. Finexo is one such firm, and you will not be disappointed if you try their services.
Click here to open an account with Finexo
Forex Yard
Forexyard Review
Background
One of the newer brokers, ForexYard services a wide range of traders, both retail and professional, from all four corners of the world. The firm emphasizes the importance of building a good relationship with each and every client, regardless of their experience or financial power. Apart from the usual charting and trading software that are a necessity of being a currency broker, ForexYard implements a corporate research and analysis section which provides the firm's customers with daily, analysis and reports on the currency market.Visit broker
Account Types
The SuperMini Account requires a minimum deposit of $100, which is a moderate amount for this type of account packages. The minimum leverage is 10:1. The firm advises traders with an account balance below $1000 to begin with the SuperMini, where the lot size can be increased gradually, allowing higher leverage. This flexible approach facilitates a step-by-step learning process for the beginner, since he can increase his lot size, and leverage, in accordance with his performance.Due to the high volatility of forex, the broker recommends that customers initiate their careers with a minimum $2000 in initial deposit.
The standard account offered to professional, experienced traders allows leverage up to 200:1, with customizable lot sizes, trailing stop orders, and allow the trading of gold, silver and oil, in addition to the numerous major and minor currency pairs.
Trading Platform
ForexYard is a fully automated online broker and voice or phone trading is not allowed. As in most other firms, in case of emergencies the dealing desk of the firm will accept orders for the liquidation of open positions only.The WinTrader platform, the trading software of ForexYard, is a straightforward package that offers all the necessary features of an online currency trading software, while avoiding the temptation to utilize tens of indicators and fancy interfaces in order to appear superior to the offers of competitors. Ten important indicators, along with various charting options including candlesticks, bar charts, and others, along with the capability to draw the Fibonacci levels on the price action summarizes the technical aspect of the Wintrader software.
The WinTrader platform is JAVA-based, and doesn't require the dowloading of any software.
Deposits and Withdrawals
ForexYard aims to minimize the problems associated with the non-trading aspect of forex. Deposits and withdrawals are facilitated smoothly, and in the case of deposit with credit cards, the account is credited immediately.Unique Features of Trading with ForexYard
ForexYard guarantees fixed spreads as low as 3 pips on EURUSD and 3-5 pips on other major currency pairs. An exceptional feature of ForexYard is the promise to keep spreads fixed even during major market events like news releases. Also, in order to allow the successful exploitation of periods of greatest price volatility, the firm guarantees a continuous quotes, and no-freeze policy during such occasions.One of the most interesting aspects of trading with ForexYard is the unique Forex VIP Services option. By choosing this option, the customer will gain access to teaching tools, fundamental and technical analysis, trading tips and recommendations, along with a private and individual forex broker who will accompany him through his journeys and experiences in the currency trading world.
Beginner Support
ForexYard is committed to ensuring a fair trading environment for beginners and professionals alike, and takes the aspect of beginner support very seriously. Between Monday and Friday, a 24-hour support staff is always ready to answer your calls about any aspect of trading. The support staff at ForexYard are not inexperienced call center workers either. They are seasoned experts with a background in finance and trading.Security
As a fully automated platform, the Wintrader forex trade software eliminates all the possibility of unauthorized temperance with client orders or accounts. The firm implements the industry Standard SSL (secure socket layer) technology to protect the privacy and account information of customers.Conclusion
ForexYard aims to excel at where many other forex brokers fail. By concentrating on customer satisfaction, and offering comprehensive educational packages on both an institutional and individual basis, the firm seeks to ensure that its clients achieve the maximum possible gain from their trading careers with the slightest pain in the shortest possible time period.In order to realize this purpose the support service of ForexYard offers an exceptional service unmatched in the retail forex industry. The beginner-friendly, flexible and simple platform ensure that both the beginner and the experienced trader enjoy the greatest profit potential through trades executed in a calm and uncomplicated environment. The various tutorials, and extensive documentation that explain all the different aspects of the software in a detailed way ensure that the learning process is swift and painless. Finally, the small initial deposit requirements of the SuperMini account facilitate a low-risk, low leverage trading experience that will help traders acquire experience as fast possible.
ForexYard is a reliable, and reputable firm that is committed to customer satisfaction. We do not shrink from recommending their services, and are pleased to feature them here on forextraders.com.
Click here to open an account with ForexYard
Easy Forex Inc
Easy Forex Review
Founded in 1999 by a group of bankers with years of experience in forex and international banking, Easy Forex Inc is a forex broker headquartered at Limassol, Cyprus with international offices in Chicago, London, Manila, Melbourne, Sydney, and Tel Aviv. As a global operation, the firm has licences in Australia (ASIC AFSL 246566), and the EU (CySEC 079/07). In the US Easy Forex is registered at the CFTC, and is also a member of the National Association of Futures Dealers (NFA).Unique Features of Trading with Easy Forex
As a pioneer in the retail currency trading business, Easy Forex has implemented innovative solutions to a number of issues related to online currency trading. Their trademark Inside Viewer tool lets traders examine the positioning of Easy Forex clients, in terms of the popularity of currency pairs, open deals structure, and deal direction (buy/sell). In addition the Trade Controller tool is unique to Easy Forex, and offers traders a clear picture of profit/loss scenarios through visual displays.Easy Forex pledges to realize stop loss orders at the exact rate specified by the client. Buy and sell orders are automated, with no delay in execution. There’s also a freeze rate facility which will either accept or refuse an entry within a few seconds, in order to ensure that connection problems do not lead to faulty trade executions.
Unlike most other brokerages, Easy Forex also facilitates accounts in 12 different base currencies (see the table below. )
Open a free demo account with Easy-forex now
Account types
Easy Forex provides both a standard account for more experienced traders, and a mini account for beginners, apart from various other types of packages on special terms and conditions. The minimum initial deposit requirement is 200 USD, one of the lower in the industry. The minimum transaction size is 2,500 USD.Easy Forex offers leverage options at 1:50, 1:100, 1:200; in addition to tailor-made packages for the customer. The firm offers mini accounts for new traders apart from the standard one offered for those with years of experience in forex trading.
In addition to forex, Easy Forex clients can trade gold and silver, with oil also being available to non US-based traders.
Deposits and Withdrawals
Easy Forex is very flexible about client deposits and withdrawals. Deposits are accepted via credit card, paypal or bank transfers, and no commissions, fees or spreads apply during withdrawal to a credit card account.Trading Platform
Easy Forex offers a trading platform that grants the user 24/7 access. Trading is available from 06:00 Monday Sydney time until 17:00 Friday New York Time, covering the entire market action without restrictions. The multilanguage platform can be customized to operate in languages including English, German, Arabic, Greek, Russian, Chinese, Spanish, French, Polish and Hebrew. The trading software is web-based, and doesn’t require the download of any additional application, eliminating many security-related concerns. In addition, and in harmony with the industry-wide move toward complete automation of trade execution, Easy Forex offers its clients an online trading experience that completely eliminates the need for a dealer desk, or other intermediary.The platform provides real time updates of the trader’s account, with slippage minimized to the maximum extent. The firm’s official policy with respect to slippage is simple and straightforward, in their words, “what you see is what you get”.
The trading software comes with the standard supporting tools including charting services, economic info and indices, and technical analysis tools, which are all implemented as part of the basic package. The economic information is supplied by the world’s most trustworthy and reputable news agency, Reuters.
To ensure 24/7, 365 days a year uninterrupted client access to the platform, Easy Forex operates server farms in both the US and the UK.
Beginner’s Education
Easy Forex offers live training by phone, guided video tours, online chat services, and a comprehensive info center to smoothen the beginner’s experience with forex trading. The support service is renowned for its professionalism and friendly attitude.Apart from the customary demo accounts that is a standard feature of the industry nowadays, Easy Forex offers a one-on-one training scheme to accompany their demo accounts..
Security and Privacy
In order to ensure the security and privacy of client data, Easy Forex cooperates with Verisign, one of the powerhouses of the internet security and data encryption business. Credit card clearing services are provided by Barclaycard, once again one of the most reliable firms in the financial services industry.Easy Forex is a transparent firm audited by financial authorities of the nations where it has branches.. Internal auditing is performed by HLB Afxentiou & Partners, a worldwide organization that is a member firm of HLB International.
With a history reaching back 50 years, HLB ranks among the top 15 accounting and business advisory groups worldwide, with more than 1340 partners and 10900 staff in 450 offices.
Conclusion
We recommend Easy Forex for the user friendly nature of its trading platform, the warm attitude of its support staff, and the advantages of its account packages. Great customization opportunities, reliable servers, and trader-friendly order execution policies make Easy Forex one of the best brokerage choices for the beginning trader.With international visibility, a sound financial structure regulated in three corners of the globe, Easy Forex is one of the more trustworthy and accountable firms in the forex industry. Established in 1999, the firm has been one of the earliest pioneers of retail currency trading, and it is also one of those that have been untainted by scandals or corruption issues. Regulated, audited, and certified, Easy Forex is there to help you avoid the headaches associated with the shady undergrowths of the retail currency trading business.
Click here to open an account with Easy Forex
Forex Club
ForexClub Review
Background
Forex Club is an NFA regulated forex broker headquartered in the US. The firm serves clients in over 50 countries, with 1000 new clients opening accounts every day, according to its website. Forex Club is an NFA regulated broker, with ID 0358265. Founded by Michael J. Felice, a trader with more than 25 years of experience in the futures industry, Forex Club is a bold and innovative broker with a lot of unique aspects.Visit broker
Unique Features of Trading with Forex Club
There are so many unique aspects of this firm, we have a little difficulty deciding on where to begin. Unlike the vast majority of forex brokers, the ExpressFX platform of Forex Club doesn’t manipulate the bid-ask spread for compensation. Instead, the firm charges a flat rate of 40 cents for every 1000 USD traded, regardless of the currency pair chosen, or leverage. What is more, Forex Club will waive this fee if the trader makes a loss upon closing a position. In other words, if you made a loss trading with Forex Club, there’s no fee, straight and simple. Since the firm doesn’t benefit from a widened bid-ask spread, it is also the only one among currency traders to offer a zero spread trading opportunity with the ExpressFX option.Deposits and Withdrawals
The minimum deposit requirement at Forex Club is a miniscule $10. Bank wires, checks, credit cards, Paypal deposits are all accepted, with funds becoming available for trade immediately upon funding by credit cards, and in 1-3 days if a deposit is made via Paypal.Account Types
There are two types of accounts at Forex Club, but both require the same minimal deposit amount. The ClassicFX account is for experienced traders, and it offers all kinds of complex and advanced tools, including historical data, alerts, market news, and charting options. The ExpressFX option is for the less experienced traders as it offers a very patient and helpful interface to facilitate study and practice. Nonetheless, ExpressFX is also excellent for the quick day trader who will greatly appreciate the zero spread offer of this package. It is also possible to open more than one account to make use of both platforms.Trading Platform
The ExpressFX trading platform is agile and user-friendly. To give an idea of how accommodating the platform is toward beginners, we will mention that on activating the ExpressFX platform and attempting to open a position, you’re presented with a screen which asks you if you expect the pair to go up or down in valie during the time frame of your trade. Depending on your action, the platform will advise you to enter a buy or sell order. This attitude is maintained throughout the website and the forums available The platform comes with an Autochartist pattern recognition software which makes the task of the beginners, and even the skilled traders much easier. The platform can be accessed via SmartPhone, PDA, and it is also possible to use the software without installing it, utilizing the web-based option on the Forex Club website. .Beginners Support
The ExpressFX platform is designed specifically for beginners. The step-by-step instructions of the platform which explain to you how and why to enter a position, and the various forums where successful traders share their experiences all emphasize to the beginner-friendly attitude of Forex Club.Security and Privacy
For security, Forex Club implements the most advanced encryption technologies in the currency trading industry. In order to protect customers from intrusions to the servers of Forex Club, all data transfers between Forex Club and the client are routed through a secure online terminal named my FXCLub.Conclusion
It is a privilege to be a member of the Forex Club. Not only will you have access to some of the most innovative tools, and competitive offers in the entire retail forex industry, but you will also have the privilege of interacting with millionaires and discussing your strategies with them on the forum of the website. Forex Club has made millionaires of some ordinary people, and the chance to interact with them is one of the unique features of membership with this exclusive institution. If you’re a beginning trader, you’ll appreciate the abundant support and the low risk environment that will make your first steps into this market painless and smooth. As you climb on the ladder of knowledge and experience, you will find guidance in the forums, and your graduation will be quickened by the vast choices that you’ll be offered. If you’re an experienced trader, the powerful and flexible options that you’ll find at Forex Club will completely change what you expect from a good forex broker. Zero spreads, low commissions (including no commissions on losing trades), a very efficient trading platform, low initial deposit requirements and low leverage options all make this firm a great choice for both the long term short term traders.Click here to open an account with ForexClub
MGforex Review
Visit brokerMGforex Review
Background
Founded in 1992, MG Financial is one of the oldest institutions in the retail forex market. The firm is headquartered in New York, and registered with the NFA with ID number 308808. The first version of MG Financial's trading platform was released in April 1997, at a time when many of today's forex firms were not in existence yet. MG financial is one of the most reliable forex brokers in the market, with years of experience, and a perfect track record of courtesy and reliability towards their customers.Visit broker
Unique Features of Trading with MGforex
The most unique feature of MG Financial is its commitment to innovation and technological advancement. MG Financial has a team who work hard to keep the clients supplied with the most cutting-edge analytic tools in the forex industry, and the firm prides itself on the abilities and qualities of its staff who work tirelessly to offer a better experience to customers.One of the interesting results of this innovation process is the Alert!FX which sends personalized alert messages to the mobile phone of a user, ensuring that he's up-to-date with the markets even when he’s away from the computer. Charting tools and the trading screen can also be reached by the use of a mobile phone or PDA.
Finally, the flexiTrading system enables the trade of both full and fractional units from the same platform.
Account types
MG Forex offers individual, joint, partnership and corporate accounts, along with special options for money managers. The firm does not seperate standard and mini-accounts, clients can trade both fractional and standard units starting with 0.1 unit in standard accounts. The minimum deposit size is $500, with a recommended minimum of $1000 in order to better accommodate margin requirements and spreads.The base currencies are USD, Euro, Japanese Yen, the British Pound, Swiss Franc, Australian and Canadian Dollars. This diversity of options facilitates cheaper withdrawals, and negates costs involved in base currency conversions. Spreads are at the low side, with 3 pips for EUR/USD and 4 pips for USD/JPY
Deposits and Withdrawals
MG Forex accepts deposits in all seven currencies via wire transfer, and accepts US dollar deposits by check, credit card or Paypal.Withdrawals are possible by check or wire transfer, and with a $15 fee incurred for each withdrawal beyond the first one in a single month.
Trading Platform
MG Financial’s trading platform, the Deal Station FX, allows orders to be placed directly from the charts, reducing the time and complexity of the process. The platform also supports the integration of fundamental analysis into the technical aspect of trading through the use of plug-ins including an economic calendar. News flow is provided by forexnews.com, MG Financial’s associated news & analysis website, the commentators of which are regularly interviewed by the Financial Time, Bloomberg TV, or the Wall Street Journal.The Deal Station platform implements advanced features like one click trading, trailing stops, and the modification of open orders in real time. In order to smoothen the learning process, every function of the platform is explained with both text and graphics in an interactive and searchable mode.
Finally, the platform is highly compatible with MacOS, Linux and the Windows operating systems.
Security and Privacy
Apart from its status as a registered and regulated brokerage firm, in 1998 MG Financial became the first foreign exchange market maker to obtain fidelity bond insurance. Issued through the subsidiary of a NYSE company, the insurance protects the assets of the firm from fraud and embezzlement by its employees.Customer Support
With 24 hour support by phone (during market open hours) available in multiple languages, servicing clients in about 100 nations worldwide, the customer service department of MG Financial is one of the crown jewels of the firm. MG Financial’s support inculcates its own culture of respect and patience to every new entrant into its ranks, making sure that each and every client is treated with the same value that they deserve, regardless of account size, or trading record.Conclusion
MG Forex is perhaps not the best choice of a beginner. The lack of a mini-account, relatively high initial deposit requirements may complicate the beginning stages of the education of a new trader. On the other hand, the relatively low amount of maximum leverage allowed, at 100:1, will help the trader to suffer less from the problems associated with high leverage.If you’re a relatively experienced trader who’s looking for a trustworthy, friendly, and serious broker where you can improve your skills to the next level of professionalism, MG Financial is probably the best choice for you. This firm is committed to providing the most advanced and sophisticated tools to those who require them, but that naturally makes the experience of the novice a bit more harder.
MG Financial is a large, old, and reliable institution regulated by US financial authorities. Its quarter century long history is a rarity among forex brokers. If you’re looking for a serious institution where you can achieve your maximum potential, MG Financial will be your choice broker.
FX Thoughts - Evening II - 06-Nov-2009
Evening Edition
1727 IST or 1157 GMT or 0657 EST
Swiss USD-CHF @ 1.0161/65...Resistance in the region 1.0185-0200
R: 1.0185-0200 / 1.0230 / 1.0280
S: 1.0150-30 / 1.0050 / 1.0005
Swiss is trading in a narrow range of 1.0140-75. As no significant move was not seen on either side, our view continue to remain the same on the pair. On the upside Resistance is seen in the region 1.0185-0200 which we expect to hold in the US session today and the overall downtrend to continue targeting 1.0 over the next few days. However, if the Support at 1.0150 continues to hold and the pair gains upside momentum, a break above 1.0200 might see a rise towards 1.0250.
Cable GBP-USD @ 1.6599/6603...Potential Double Top on 1H candles
R: 1.6642 / 1.6737-50
S: 1.6590-60 / 1.6494 / 1.6457
Cable traded in a narrow range through the day moving between 1.6588 to 1.6635 as the Resistance at 1.6642 continued to hold. Simultaneously it is taking Support immediately from the trendline on the hourly chart, formed by connecting the lows of 1.6260 (3-Nov), 1.6465 (5-Nov), 1.6488 (5-Nov) and 1.6588 (6-Nov) which comes at 1.6595. The double top seems to be developing on the hourly chart which shall be confirmed on the break of the immediate Support at 1.6590. If so, the pair may come down towards 1.6490 during the US session. This would be a good buying opportunity. However, if this Support holds, the Resistance at 1.6642 could be in danger.
The Projected Max High and Low for the day is at 1.6737 and 1.6457 respectively.
Limit Buy Order:
Buy GBP 10K at 1.6500, SL 1.6430, TP Open
Aussie AUD-USD @ 0.9157/60...Bullish
R: 0.9180 / 0.9220 / 0.9280
S: 0.9141 / 0.9120-00 / 0.9050
Aussie broke above the 21-DMA Resistance (0.9141) during the day as expected and is now trading higher. As mentioned earlier we might see a rise towards 0.9200-20 in the US session today. Note that the projected Max-High for the day is 0.9224. Any sharp downmove is not looking likely now. However, if the immediate Resistance at 0.9180 holds and the pair gains downside momentum, we might see downmove towards 0.9050 in the US session today.
1727 IST or 1157 GMT or 0657 EST
Swiss USD-CHF @ 1.0161/65...Resistance in the region 1.0185-0200
R: 1.0185-0200 / 1.0230 / 1.0280
S: 1.0150-30 / 1.0050 / 1.0005
Swiss is trading in a narrow range of 1.0140-75. As no significant move was not seen on either side, our view continue to remain the same on the pair. On the upside Resistance is seen in the region 1.0185-0200 which we expect to hold in the US session today and the overall downtrend to continue targeting 1.0 over the next few days. However, if the Support at 1.0150 continues to hold and the pair gains upside momentum, a break above 1.0200 might see a rise towards 1.0250.
Cable GBP-USD @ 1.6599/6603...Potential Double Top on 1H candles
R: 1.6642 / 1.6737-50
S: 1.6590-60 / 1.6494 / 1.6457
Cable traded in a narrow range through the day moving between 1.6588 to 1.6635 as the Resistance at 1.6642 continued to hold. Simultaneously it is taking Support immediately from the trendline on the hourly chart, formed by connecting the lows of 1.6260 (3-Nov), 1.6465 (5-Nov), 1.6488 (5-Nov) and 1.6588 (6-Nov) which comes at 1.6595. The double top seems to be developing on the hourly chart which shall be confirmed on the break of the immediate Support at 1.6590. If so, the pair may come down towards 1.6490 during the US session. This would be a good buying opportunity. However, if this Support holds, the Resistance at 1.6642 could be in danger.
The Projected Max High and Low for the day is at 1.6737 and 1.6457 respectively.
Limit Buy Order:
Buy GBP 10K at 1.6500, SL 1.6430, TP Open
Aussie AUD-USD @ 0.9157/60...Bullish
R: 0.9180 / 0.9220 / 0.9280
S: 0.9141 / 0.9120-00 / 0.9050
Aussie broke above the 21-DMA Resistance (0.9141) during the day as expected and is now trading higher. As mentioned earlier we might see a rise towards 0.9200-20 in the US session today. Note that the projected Max-High for the day is 0.9224. Any sharp downmove is not looking likely now. However, if the immediate Resistance at 0.9180 holds and the pair gains downside momentum, we might see downmove towards 0.9050 in the US session today.
5 Things You Must Do If You Want To Attain Financial Freedom Through Forex Trading
With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven't followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals.
1. Have Faith In Yourself
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.
2. Accept Your Learning Curve
Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.
3. Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money.
4. Get Educated
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.
5. Continue to Get Educated
In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It's nice to have an ongoing relationship with the person/people helping you to achieve your goals.
What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
by Eddie Yakubovich
1. Have Faith In Yourself
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.
2. Accept Your Learning Curve
Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.
3. Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money.
4. Get Educated
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.
5. Continue to Get Educated
In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It's nice to have an ongoing relationship with the person/people helping you to achieve your goals.
What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
by Eddie Yakubovich
Build a Forex Trading Account You Can Be Proud of
How can you increase the size of your Forex trading account and continue to make good profits from trading the Forex market? The following points will help prove this can be done.
The Forex market will move in one of three ways, up, down or sideways. Your challenge is to develop a strategy which covers all eventualities.
If you prefer to scalp for a few pips based on a higher value lot size and trading many times a day, then your Forex trading strategy will be developed to maximise this plan.
If you trade intra-day, then you might only place a handful of trades per day and look for a greater pip gain. This would mean a sideways moving market is not for you and you would make the decision not to trade.
With Forex trading, it is commonly agreed that knowing when not to trade is as important as knowing when to trade!
Go through the motions of building the foundations to your career. Paper trade first until you are consistently successful, comfortable and confident with your strategy. Use a Forex trading demo account next to get to know your Forex broker's trading platform which will be a great help when you start to trade a live account!
Do you know your risk to reward strategy?
This is the amount you are prepared to risk in order to make a gain and is typically based on a 3 to 1 ratio. So if your stop loss was 10 pips below your entry point for a long trade, you would expect your trade to achieve a minimum of 30 pips.
This takes care of the risk management of your trade but what about the risk to your Forex trading account? How can we best protect your hard earned money and trading capital?
Well, we look to use a similar ratio for this too. The thought process is not to risk more than 3 percent of your total Forex trading account size on each open position. So if you had $1000 in your trading account you would only risk a maximum of $30 on each trade. If your stop loss was 10 pips, that would mean you could trade at $3 per pip and if your stop loss was 15 pips your trade would be based on $2 per pip.
Can you see how this strategy means you will be in the market long enough (assuming you activate your stop loss) to learn about trading and how to make profits?
If you keep growing your Forex trading account size in this way, you will achieve a growing trading balance, whilst protecting your capital.
This way you will still be trading having kept your trading account in order - achieving more than 90 percent of all other traders! If you reach this stage, you would have done very well indeed!
So, with Forex trading, by knowing which way the market is moving, you can apply to right strategy to trade, or not. Once you have your trading plan written, you can start paper trading, progressing to opening a demo account with a good Forex broker and finally on to a live account. Make sure you understand the risk strategy and grow your trading account slowly.
This will ensure you build the foundations of your Forex trading account and be proud of what you have achieved!
By Annabel Meade
The Forex market will move in one of three ways, up, down or sideways. Your challenge is to develop a strategy which covers all eventualities.
If you prefer to scalp for a few pips based on a higher value lot size and trading many times a day, then your Forex trading strategy will be developed to maximise this plan.
If you trade intra-day, then you might only place a handful of trades per day and look for a greater pip gain. This would mean a sideways moving market is not for you and you would make the decision not to trade.
With Forex trading, it is commonly agreed that knowing when not to trade is as important as knowing when to trade!
Go through the motions of building the foundations to your career. Paper trade first until you are consistently successful, comfortable and confident with your strategy. Use a Forex trading demo account next to get to know your Forex broker's trading platform which will be a great help when you start to trade a live account!
Do you know your risk to reward strategy?
This is the amount you are prepared to risk in order to make a gain and is typically based on a 3 to 1 ratio. So if your stop loss was 10 pips below your entry point for a long trade, you would expect your trade to achieve a minimum of 30 pips.
This takes care of the risk management of your trade but what about the risk to your Forex trading account? How can we best protect your hard earned money and trading capital?
Well, we look to use a similar ratio for this too. The thought process is not to risk more than 3 percent of your total Forex trading account size on each open position. So if you had $1000 in your trading account you would only risk a maximum of $30 on each trade. If your stop loss was 10 pips, that would mean you could trade at $3 per pip and if your stop loss was 15 pips your trade would be based on $2 per pip.
Can you see how this strategy means you will be in the market long enough (assuming you activate your stop loss) to learn about trading and how to make profits?
If you keep growing your Forex trading account size in this way, you will achieve a growing trading balance, whilst protecting your capital.
This way you will still be trading having kept your trading account in order - achieving more than 90 percent of all other traders! If you reach this stage, you would have done very well indeed!
So, with Forex trading, by knowing which way the market is moving, you can apply to right strategy to trade, or not. Once you have your trading plan written, you can start paper trading, progressing to opening a demo account with a good Forex broker and finally on to a live account. Make sure you understand the risk strategy and grow your trading account slowly.
This will ensure you build the foundations of your Forex trading account and be proud of what you have achieved!
By Annabel Meade
I am Happy with My System, What's Next?
So, you now have a trading system. You devised it, you tested it and you are already using it to trade the market. You may have automated it or you may still have to put your buy and sell orders manually, but for the moment, you really have nothing much to do apart from following your system with ironclad self-discipline. The question is: Now what do you do?
If you are one of those traders who reached this stage, the chances are you may have spent your last few months or years arriving at your system and now that you have it, you have spare time. With this spare time, you may find yourself watching the market day in and day out.
The danger with doing this is that you create opportunities to feel emotional about every single one of your trades and this may lead to undoing the results of your hard work. You begin to feel elated when you are making money and you might start breaking your rules. Conversely, you may feel down when you are losing money and you start doubting your system and thus, begin disobeying your trading rules. The problem might be that you have a good system and you are simply not giving it enough time for it to work.
If you think this is happening to you, consider that it might be best that you only watch the market when your trading system requires you to. You should also consider other ways in which you can best fill your spare time to serve your need to work, find your purpose and create a meaningful life. You must have other interests and ambitions.
Personally, I have always wanted to create a business that would serve the planet and millions of people so I can leave behind a legacy when I die. I know this sounds very grandiose but I know that you, the reader, also have similar aspirations deep inside. I know this because we are both human beings and human beings have the need for self-actualisation and self-transcendence (spiritual needs).
As a disciplined trader, you have many skills you can apply to business. You create systems, you are analytical, you are creative, you solve problems and you are results-oriented. These are all strengths that you can apply in the world of business. There are many opportunities out there for you to apply yourself and the lessons you learn from trading the financial markets.
by Marquez Comelab
If you are one of those traders who reached this stage, the chances are you may have spent your last few months or years arriving at your system and now that you have it, you have spare time. With this spare time, you may find yourself watching the market day in and day out.
The danger with doing this is that you create opportunities to feel emotional about every single one of your trades and this may lead to undoing the results of your hard work. You begin to feel elated when you are making money and you might start breaking your rules. Conversely, you may feel down when you are losing money and you start doubting your system and thus, begin disobeying your trading rules. The problem might be that you have a good system and you are simply not giving it enough time for it to work.
If you think this is happening to you, consider that it might be best that you only watch the market when your trading system requires you to. You should also consider other ways in which you can best fill your spare time to serve your need to work, find your purpose and create a meaningful life. You must have other interests and ambitions.
Personally, I have always wanted to create a business that would serve the planet and millions of people so I can leave behind a legacy when I die. I know this sounds very grandiose but I know that you, the reader, also have similar aspirations deep inside. I know this because we are both human beings and human beings have the need for self-actualisation and self-transcendence (spiritual needs).
As a disciplined trader, you have many skills you can apply to business. You create systems, you are analytical, you are creative, you solve problems and you are results-oriented. These are all strengths that you can apply in the world of business. There are many opportunities out there for you to apply yourself and the lessons you learn from trading the financial markets.
by Marquez Comelab
Forex Profits by Buying and Selling at the Same Time
This article is one of a series which looks at the advantages and weaknesses of trading using the hedged, grid trading system to trade volatile markets.
We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.
The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let's take some to look at this more closely.
Let's say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.
The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let's assume that the price moves back to level 100.
The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.
Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.
The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some champagne.
There are many, many other market movements that turn this strange "buy and sell at the same time" activity into gains. These will be covered in future articles and are covered in a free grid trading course which is available at the expert-4x.com website for those traders whose curiosity has been aroused.
by Mary McArthur
We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.
The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let's take some to look at this more closely.
Let's say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.
The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let's assume that the price moves back to level 100.
The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.
Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.
The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some champagne.
There are many, many other market movements that turn this strange "buy and sell at the same time" activity into gains. These will be covered in future articles and are covered in a free grid trading course which is available at the expert-4x.com website for those traders whose curiosity has been aroused.
by Mary McArthur
The Opportunities of Trading the Forex Hedged Grid System
I have seen the hedged grid system been used successfully (and highly unsuccessfully) over the last few years. Unfortunately the failures tend to discourage traders from taking advantage of this great system. I have found that the failures are mainly due to ignorance, impatience and greed (common reasons for trading failure).
In a nutshell the grid system uses the following methodology. You start by buying and selling a currency. When the price moves a predetermined distance (grid leg) you cash in the positive leg, leave the negative leg and buy and sell again. Sooner or later the system goes positive and you would then cash in when it is positive.
This is a brief summary of the content of our free hedged grid trading course available on expert-4x.com. Please refer to this course for more details of how money is made. The attraction is that the system is reasonably mechanical, can be programmed and does not take much supervision as exclusively entry orders are used.
Money is made when the price retraces 100%, 50%, 33% at various levels. This starts looking like a strategy that supports the Fibonacci concept. The grid system is also based on the nature of the market to trade sideways 80% of the time and to trend 20% of the time.
The dangers are that what if the price does not retrace and continues to trend. The Grid system can not make money in a trending market — full stop. One has to realize that. You therefore need Strategies to minimize damage during these periods:-
Firstly I have found that the biggest mistake made by traders is that they select a very small grid leg sizes e.g. 20 to 30 pips. This is a recipe for disaster. The trick is to use big leg sizes between 150 and 300 pips. What this does is that it sometimes turns a trending phase into movement in a sideways market. I would typically use 300 pips for the GBPJPY and 150 pips for the EURUSD for instance.
Secondly there is no rule that says that the legs have to be the same size. So I change my leg sizes in trending markets to be even bigger. If I started with 150 for the 1st leg I would go to 200 for the 2nd leg and 250 for the 3rd leg etc. This makes sure that I am carrying less loss making transactions in a trend.
Thirdly — sometimes it is wise to increase the number of lots with the trend compared to the numbers against the trend in a good trend. However be aware of having the same number of sell and buy transactions. All you will have done was lock in your current status in a 100% hedge.
Fourthly — This is the biggest change and most important one that I personally have made in my grid trading strategy. Always cash in all your transactions when your system is positive and when the price reaches the end of one of your grid legs. By cashing in you are reducing the risk of carrying negative lots in a trending market. This also gives you an opportunity to re-assess the market conditions.
Fifthly:- Cash in a start again is always an option. One of my strategies is to cash in all my open positions when the 3rd leg of my grid is reached and start again. Experience has taught me that this is a short term pain that goes away very quickly and is soon forgotten.
People that have traded the grid system will immediately see how the above approaches will reduce the risks of exponential losses building up in a strongly trending market. Please feel free to contact Mary McArthur at marymcarthur@expert4x.com for clarification on any items discussed above. She has numerous examples of successful applications of grid trading
This article is part of a series and many more will follow on Grid trading, money management and Forex Trading Strategies.
by Mary McArthur
In a nutshell the grid system uses the following methodology. You start by buying and selling a currency. When the price moves a predetermined distance (grid leg) you cash in the positive leg, leave the negative leg and buy and sell again. Sooner or later the system goes positive and you would then cash in when it is positive.
This is a brief summary of the content of our free hedged grid trading course available on expert-4x.com. Please refer to this course for more details of how money is made. The attraction is that the system is reasonably mechanical, can be programmed and does not take much supervision as exclusively entry orders are used.
Money is made when the price retraces 100%, 50%, 33% at various levels. This starts looking like a strategy that supports the Fibonacci concept. The grid system is also based on the nature of the market to trade sideways 80% of the time and to trend 20% of the time.
The dangers are that what if the price does not retrace and continues to trend. The Grid system can not make money in a trending market — full stop. One has to realize that. You therefore need Strategies to minimize damage during these periods:-
Firstly I have found that the biggest mistake made by traders is that they select a very small grid leg sizes e.g. 20 to 30 pips. This is a recipe for disaster. The trick is to use big leg sizes between 150 and 300 pips. What this does is that it sometimes turns a trending phase into movement in a sideways market. I would typically use 300 pips for the GBPJPY and 150 pips for the EURUSD for instance.
Secondly there is no rule that says that the legs have to be the same size. So I change my leg sizes in trending markets to be even bigger. If I started with 150 for the 1st leg I would go to 200 for the 2nd leg and 250 for the 3rd leg etc. This makes sure that I am carrying less loss making transactions in a trend.
Thirdly — sometimes it is wise to increase the number of lots with the trend compared to the numbers against the trend in a good trend. However be aware of having the same number of sell and buy transactions. All you will have done was lock in your current status in a 100% hedge.
Fourthly — This is the biggest change and most important one that I personally have made in my grid trading strategy. Always cash in all your transactions when your system is positive and when the price reaches the end of one of your grid legs. By cashing in you are reducing the risk of carrying negative lots in a trending market. This also gives you an opportunity to re-assess the market conditions.
Fifthly:- Cash in a start again is always an option. One of my strategies is to cash in all my open positions when the 3rd leg of my grid is reached and start again. Experience has taught me that this is a short term pain that goes away very quickly and is soon forgotten.
People that have traded the grid system will immediately see how the above approaches will reduce the risks of exponential losses building up in a strongly trending market. Please feel free to contact Mary McArthur at marymcarthur@expert4x.com for clarification on any items discussed above. She has numerous examples of successful applications of grid trading
This article is part of a series and many more will follow on Grid trading, money management and Forex Trading Strategies.
by Mary McArthur
Scalping The Forex Market For Profits Every Day
Scalping the forex market is something that all new traders aspire to do. It is however not easy and requires allot of concentration and discipline.
Once you decide on a set you are going to use you will need to spend a few months religiously for a couple of hours a day trading on demo until you get to know your setup and a feel for scalping it.
A popular way to scalp the forex on M1 charts is to use hull moving averages. Plot the following WMA's (Weighted Moving Averages) on your chart: 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 120, 130, 140, 150, 160, 170, 180, 190, 200, 210, 220, 240. Now set price to a line on Average or, if you don't have that, set it to line on Close. Set all the WMA's to one color that is different to price.
This will create a pretty chart. Using these WMA's you can easily see the strength of a trend, you will notice that price tends to retrace back and forth from the moving averages.
What we are looking for is resistance in a up trend or support in a down trend in the form of double top or something similar. Once you find this area wait for a convincing break of it following the trend and then enter to scalp part of the move.
This method takes practice, don't expect to be able to pull it off straight away, open a demo account with a broker that offers spreads of a pip or less and trade every day at the same time for at least two months. I guarantee you will see great improvements as you become familiar with the setup and the flow of the market.
by Dean Saunders
Once you decide on a set you are going to use you will need to spend a few months religiously for a couple of hours a day trading on demo until you get to know your setup and a feel for scalping it.
A popular way to scalp the forex on M1 charts is to use hull moving averages. Plot the following WMA's (Weighted Moving Averages) on your chart: 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 120, 130, 140, 150, 160, 170, 180, 190, 200, 210, 220, 240. Now set price to a line on Average or, if you don't have that, set it to line on Close. Set all the WMA's to one color that is different to price.
This will create a pretty chart. Using these WMA's you can easily see the strength of a trend, you will notice that price tends to retrace back and forth from the moving averages.
What we are looking for is resistance in a up trend or support in a down trend in the form of double top or something similar. Once you find this area wait for a convincing break of it following the trend and then enter to scalp part of the move.
This method takes practice, don't expect to be able to pull it off straight away, open a demo account with a broker that offers spreads of a pip or less and trade every day at the same time for at least two months. I guarantee you will see great improvements as you become familiar with the setup and the flow of the market.
by Dean Saunders
How I became a successful part time trader
Introduction
I am Joe Chalhoub, a computer engineer, Forex trader and strategy builder. I began trading currencies 3 years ago. The first 3 months trading were complete failure, I remember I lost all my money and I was about to quit, but I couldn't, I felt if I quit now maybe I am missing the chance of having my own business. So I stopped trading and began observing, studying, analyzing and practicing.
Observing: I began observing the market, what causes movement, reaction, ranging and trading.
Analyzing: I began working with technical and fundamental analysis; how each analysis can predict and redirect the market and how I can use them both for my own benefit. I will talk about these analyses in the following paragraph.
Reading: I bought Forex Trading Books and read them, books explaining different strategies and tactics used by experienced traders.
Practicing: I created free accounts and began trading virtually and each technique I invent I tried it and monitored its performance and validity.
After one year of studies, analysis and practicing trading techniques and after many failure and frustration I reached my own strategy and it is working very well and each month my profit is positive.
Implementation
I reached my targets and I built a successful strategy, but that's not enough; to make profit I must not miss any opportunity and forex market is full of opportunities because it is the most active market in the world, for that reason I must sit all time and watch and detect opportunities all day long from Monday to Friday.
How to resolve this problem, I can't sit and observe the market hours and hours, I have my career and my family, so I thought I must program my strategy, let the Information Technology do the hard work for me, and nobody is discipline as a software, so I created an artificial intelligent software which collects data from the market and implement my strategy on this data and detect opportunities 24/24.
This program analyses fundamental and technical data and generates forex signals which are forwarded automatically to my broker platform where the signals are executed automatically and forwarded also to my website members. All this is done without my interfering, I just run the program, it analyses and makes its decisions (Buying, Selling or stay aside).
How to succeed in Forex Trading
Five over hundred traders succeed in this business, what differentiate those five successful from the 95 others is one thing, it is the HARD WORK. Forex trading is not an easy business, and who tells you that he can make you rich in one night is one of those 95. Only one thing can make you a successful trader, HARD WORK, and nothing else. Don't rely on other traders or advisors to help you, rely and have confidence on yourself.
Don't begin trading quickly, the forex market will not go anywhere, it will stay forever, give yourself 6 to 12 months of studies, analysis, readings, practice and build your own strategy before begin real trading, it will take a lot of time and dedication but at the end you will reach your target.
Strategy
I will not reveal my full strategy but I will reveal some techniques I use which help traders in their trades.
My strategy follows the following tips and techniques:
1 — Discipline: Put criteria for your trades, watch the market and only trade when criteria are met, if they are not met do not trade. My program is the most disciplined trader, it takes care of all of this, it monitors the market and only trade if only criteria are met, and the second advantage of this is the elimination of the fear factor, it enters a trade when it sees it is good to enter and fear nothing.
2 — Money management: It's the main key for good trading, I exit all trades and stop trading for a specific day if I lost -60 pips, in the other hand I put stop loss for my trades if I reached +25 pips profit, in that case profit will not get under +25 pips and it has open target, and all I have to do is go out and have fun.
3 — No trades for now: The most important thing in trading is sometime not to trade, I take this decision after looking to my charts and see that there is not enough volatility or there is no enough reports will be released for today and it is better to wait until market is more volatile. I advise traders not to trade during the first days of the month, personally I begin trading at the first Friday of the month when the "NonFarm payroll" report will be released.
4 — Analysis: I use fundamental and technical analysis while trading. Fundamental defines the trend of the market and the technical analysis is used after the definition of the trend. I trade the news by analyzing programmatically the released data for a specific report and generate signals which are executed immediately on the trading platform and forwarded simultaneously to my members.
Fundamental and technical analysis must be used together, if one is used without the other this will lead to failure.
5 — Technical indicators: In the forex market there is a lot of indicators which are used by many traders. I use ADX, Bollinger Bands to identify trends and volatility; RSI to identify an over bought or sold and Moving Average to identify a signal. And the most important technique is FIBONACCI, I advise traders to implement this technique and use it to confirm trades.
Finally, I must say that Forex is not easy, and many times we feel that someone is doing a conspiracy on us to take our money, but the truth is nothing is impossible, and others successful traders are not more intelligent than us and they are not genius from other planet, the fact is the more you work the more you become closer to become good trader. Do not quit quickly because this business deserves hard work and dedication.
By Joe Chalhoub
I am Joe Chalhoub, a computer engineer, Forex trader and strategy builder. I began trading currencies 3 years ago. The first 3 months trading were complete failure, I remember I lost all my money and I was about to quit, but I couldn't, I felt if I quit now maybe I am missing the chance of having my own business. So I stopped trading and began observing, studying, analyzing and practicing.
Observing: I began observing the market, what causes movement, reaction, ranging and trading.
Analyzing: I began working with technical and fundamental analysis; how each analysis can predict and redirect the market and how I can use them both for my own benefit. I will talk about these analyses in the following paragraph.
Reading: I bought Forex Trading Books and read them, books explaining different strategies and tactics used by experienced traders.
Practicing: I created free accounts and began trading virtually and each technique I invent I tried it and monitored its performance and validity.
After one year of studies, analysis and practicing trading techniques and after many failure and frustration I reached my own strategy and it is working very well and each month my profit is positive.
Implementation
I reached my targets and I built a successful strategy, but that's not enough; to make profit I must not miss any opportunity and forex market is full of opportunities because it is the most active market in the world, for that reason I must sit all time and watch and detect opportunities all day long from Monday to Friday.
How to resolve this problem, I can't sit and observe the market hours and hours, I have my career and my family, so I thought I must program my strategy, let the Information Technology do the hard work for me, and nobody is discipline as a software, so I created an artificial intelligent software which collects data from the market and implement my strategy on this data and detect opportunities 24/24.
This program analyses fundamental and technical data and generates forex signals which are forwarded automatically to my broker platform where the signals are executed automatically and forwarded also to my website members. All this is done without my interfering, I just run the program, it analyses and makes its decisions (Buying, Selling or stay aside).
How to succeed in Forex Trading
Five over hundred traders succeed in this business, what differentiate those five successful from the 95 others is one thing, it is the HARD WORK. Forex trading is not an easy business, and who tells you that he can make you rich in one night is one of those 95. Only one thing can make you a successful trader, HARD WORK, and nothing else. Don't rely on other traders or advisors to help you, rely and have confidence on yourself.
Don't begin trading quickly, the forex market will not go anywhere, it will stay forever, give yourself 6 to 12 months of studies, analysis, readings, practice and build your own strategy before begin real trading, it will take a lot of time and dedication but at the end you will reach your target.
Strategy
I will not reveal my full strategy but I will reveal some techniques I use which help traders in their trades.
My strategy follows the following tips and techniques:
1 — Discipline: Put criteria for your trades, watch the market and only trade when criteria are met, if they are not met do not trade. My program is the most disciplined trader, it takes care of all of this, it monitors the market and only trade if only criteria are met, and the second advantage of this is the elimination of the fear factor, it enters a trade when it sees it is good to enter and fear nothing.
2 — Money management: It's the main key for good trading, I exit all trades and stop trading for a specific day if I lost -60 pips, in the other hand I put stop loss for my trades if I reached +25 pips profit, in that case profit will not get under +25 pips and it has open target, and all I have to do is go out and have fun.
3 — No trades for now: The most important thing in trading is sometime not to trade, I take this decision after looking to my charts and see that there is not enough volatility or there is no enough reports will be released for today and it is better to wait until market is more volatile. I advise traders not to trade during the first days of the month, personally I begin trading at the first Friday of the month when the "NonFarm payroll" report will be released.
4 — Analysis: I use fundamental and technical analysis while trading. Fundamental defines the trend of the market and the technical analysis is used after the definition of the trend. I trade the news by analyzing programmatically the released data for a specific report and generate signals which are executed immediately on the trading platform and forwarded simultaneously to my members.
Fundamental and technical analysis must be used together, if one is used without the other this will lead to failure.
5 — Technical indicators: In the forex market there is a lot of indicators which are used by many traders. I use ADX, Bollinger Bands to identify trends and volatility; RSI to identify an over bought or sold and Moving Average to identify a signal. And the most important technique is FIBONACCI, I advise traders to implement this technique and use it to confirm trades.
Finally, I must say that Forex is not easy, and many times we feel that someone is doing a conspiracy on us to take our money, but the truth is nothing is impossible, and others successful traders are not more intelligent than us and they are not genius from other planet, the fact is the more you work the more you become closer to become good trader. Do not quit quickly because this business deserves hard work and dedication.
By Joe Chalhoub
100% Hedging Strategies
Hedging is defined as holding two or more positions at the same time, where the purpose is to offset the losses in the first position by the gains received from the other position.
Usual hedging is to open a position for a currency A, then opening a reverse for this position on the same currency A. This type of hedging protects the trader from getting a margin call, as the second position will gain if the first loses, and vice versa.
However, traders developed more hedging techniques in order to try to benefit form hedging and make profits instead of just to offset losses.
In this page, we will discuss, some of the hedging techniques.
1. 100% Hedging.
This technique is the safest ever, and the most profitable of all hedging techniques while keeping minimal risks. This technique uses the arbitrage of interest rates (roll over rates) between brokers. In this type of hedging you will need to use two brokers. One broker which pays or charges interest at end of day, and the other should not charge or pay interest. However, in such cases the trader should try to maximize your profits, or in other words to benefit the utmost of this type of hedging.
The main idea about this type of hedging is to open a position of currency X at a broker which will pay you a high interest for every night the position is carried, and to open a reverse of that position for the same currency X with the broker that does not charge interest for carrying the trade. This way you will gain the interest or rollover that is credited to your account.
However there are many factors that you should take into consideration.
a. The currency to use. The best pair to use is the GBPJPY, because at the time of writing this article, the interest credited to your account will be 24 usd for every 1 regular long lot you have. However you should check with your broker because each broker credits a different amount. The range can be from $10 to $26.
b. The interest free broker. This is the hardest part. Before you open your account with such a broker, you should check the following: i. Does the broker allow opening the position for an unlimited time? ii. Does the broker charge commissions?
Some brokers charge $5 flat every night for each lot held, this is a good thing, although it seems not. Because, when the broker charges you money for keeping your position, the your broker will likely let you hold your position indefinitely.
c. Equity of your account. Hedging requires lots of money. For example, if you want to use the GBPJPY, you will need 20,000USD in each account. This is very necessary because the max monthly range for GBPJPY in the last few years was 2000 pips. You do not want one of your accounts to get a margin call. Do not forget that when you open your 2 positions at the 2 brokers, you will pay the spread, which is around 16 pips together. If you are using 1 regular lot, then this is around 145 usd. So you will enter the trades, losing 145 usd. So you will need the first 6 days just to cover the spread cost. Thus if you get a margin call again, you will need to close your other position, and then transfer money to your other account, and then re-open the positions. Every time this happens, you will lose 145 usd!
It is very important not to get a margin call. This can be maintained by a large equity, or a fast efficient way to transfer money between brokers.
d. Money management. One of the best ways to manage such an account is to monthly withdraw profits and balancing your positions. This can be done by withdrawing the excess from one account, take out the profits, and depositing the excess into the losing account to balance them. However, this can be costly. You should also check with your broker if he allows withdrawals while your position is still open. One efficient way of doing this is using the brokerage service withdrawals which is provided by third party companies.
by Yannis Karamanakis
Usual hedging is to open a position for a currency A, then opening a reverse for this position on the same currency A. This type of hedging protects the trader from getting a margin call, as the second position will gain if the first loses, and vice versa.
However, traders developed more hedging techniques in order to try to benefit form hedging and make profits instead of just to offset losses.
In this page, we will discuss, some of the hedging techniques.
1. 100% Hedging.
This technique is the safest ever, and the most profitable of all hedging techniques while keeping minimal risks. This technique uses the arbitrage of interest rates (roll over rates) between brokers. In this type of hedging you will need to use two brokers. One broker which pays or charges interest at end of day, and the other should not charge or pay interest. However, in such cases the trader should try to maximize your profits, or in other words to benefit the utmost of this type of hedging.
The main idea about this type of hedging is to open a position of currency X at a broker which will pay you a high interest for every night the position is carried, and to open a reverse of that position for the same currency X with the broker that does not charge interest for carrying the trade. This way you will gain the interest or rollover that is credited to your account.
However there are many factors that you should take into consideration.
a. The currency to use. The best pair to use is the GBPJPY, because at the time of writing this article, the interest credited to your account will be 24 usd for every 1 regular long lot you have. However you should check with your broker because each broker credits a different amount. The range can be from $10 to $26.
b. The interest free broker. This is the hardest part. Before you open your account with such a broker, you should check the following: i. Does the broker allow opening the position for an unlimited time? ii. Does the broker charge commissions?
Some brokers charge $5 flat every night for each lot held, this is a good thing, although it seems not. Because, when the broker charges you money for keeping your position, the your broker will likely let you hold your position indefinitely.
c. Equity of your account. Hedging requires lots of money. For example, if you want to use the GBPJPY, you will need 20,000USD in each account. This is very necessary because the max monthly range for GBPJPY in the last few years was 2000 pips. You do not want one of your accounts to get a margin call. Do not forget that when you open your 2 positions at the 2 brokers, you will pay the spread, which is around 16 pips together. If you are using 1 regular lot, then this is around 145 usd. So you will enter the trades, losing 145 usd. So you will need the first 6 days just to cover the spread cost. Thus if you get a margin call again, you will need to close your other position, and then transfer money to your other account, and then re-open the positions. Every time this happens, you will lose 145 usd!
It is very important not to get a margin call. This can be maintained by a large equity, or a fast efficient way to transfer money between brokers.
d. Money management. One of the best ways to manage such an account is to monthly withdraw profits and balancing your positions. This can be done by withdrawing the excess from one account, take out the profits, and depositing the excess into the losing account to balance them. However, this can be costly. You should also check with your broker if he allows withdrawals while your position is still open. One efficient way of doing this is using the brokerage service withdrawals which is provided by third party companies.
by Yannis Karamanakis
Automated Trading Systems for Financial Markets and Recommendations for Their Usage
1. Introductions
Today, using information and trading platforms has become a de facto requirement for successful trading in the financial markets. Their advantages as compared to conventional trading schemes include, for example, an unprecedented speed of processing and delivery of information to end users, the level of integration with data providers, and a wide array of built-in technical analysis instruments.
At the same time, an investor opening an account with a brokerage firm simply cannot simultaneously manage the real-time analysis and trade in more than 4-6 financial instruments in several markets 24 hours 7 days a week. This brings about the need to employ automatic trading systems in the form of runtime environment with client and server parts and the programs to control these systems (scripts).
2. Comparative Analysis of the Problem Area
Various software components embrace the entire target sector of the market-from analytics and forecasting to complex trade and administration. The components of a trading platform provide its clients-brokers, dealers, traders, financial analysts and advisors-just the service they need at the very moment they need it, from immediate round-the-clock access to information of concern by means of mobile devices, to multi-move trading operations in the major client terminal.
The software market offers a great many of information and trading platforms that differ, first of all, in the functionality of the client and server parts, and the list of services provided by the financial company once an account has been opened. However, only a relatively small number of software solutions include the components that automate trading.
2.1. MetaTrader4-based Solutions
One of the world's most widely used trade platform products is apparently MetaTrader4, developed by MetaQuotes Software Corporat?on for Forex market trading. The platform includes an integrated development environment (IDE) MetaEd?tor, intended for writing scripts in a programming language called MetaQuotes Language, or MQL4 for short. The language's syntax is based on the classic C language syntax, and the flow logic has not been significantly changed since the previous version of the platform that used MQL II as the programming language. The new automated trade framework is, undoubtedly, an evolution of the previous one. Both languages feature good functionality, with an optimum set of built-in trading and utility functions which is quite sufficient to implement the basic operations, and a facility to define custom functions to help implement non-standard ideas.
From the programming point of view, MQL4 is much more convenient that its predecessor; this language is more oriented at professional programmers, while MQL II, in my opinion, will rather suit financial experts wishing to build trading programs (or trading advisors, in the MetaQuotes terminology) of their own.
2.2. Omega Research-based Solutions
In the New World, the vast majority of companies use the Omega Research platform developed by TradeStation Securities, Inc. This platform has long ago proven its worth at the worldwide market, and to date experts consider it to be the best system for technical analysis. The provided IDE called Omega Research PowerEditor is intended to create control programs in EasyLanguage (EL).
The language's major advantage that strikes the eye is the easiness (hence is the name) of placing opening and closing orders. The corresponding program instructions can be written such as if we were formulating an order to our broker in the plain human language. In MQL4, for example, placing an order to open a position would involve specifying about a dozen of various parameters. In EasyLanguage, the same can be expressed in a short statement using a few words. Working with technical indicators is about that simple, too. But don't fall under an illusion: when creating these simple commands, language developers sacrificed the functionality and limited the possible ways of using a particular function, therefore effectively depriving the IDE users of the opportunity to accurately implement their own algorithms.
TradeStation decided not to create extensive libraries of built-in trading and utility functions but to limit to only an essential set. As the platform advanced, the number of functions written by both in-house and third-party developers grew, and TradeStation simply included them as user-defined functions into the repository of its scripts. As a result, the functionality offered to users is not in the least scarcer than that of MetaQuotes product.
PowerEditor provides a built-in dictionary that lets user search and get help on the available functions. Another handy tool worth mentioning is the strategy builder. Using the strategy builder, the user can easily create a basic algorithm for his or her trading program, and then modify and adjust it as necessary.
EasyLanguage is an old-timer and pioneer in the field of creating automated trading systems for the stock market. It was the basis for the development of MQL II. EasyLanguage will be a good choice for programmers, but still a better one for financial experts more oriented at analyzing the market than trading.
2.3. ProTrader-based Solutions
Professional financial experts can choose the ProTrader2 or ProTraderFX platform as their working tool, depending on the type of the financial market-stock or Forex, respectively. The two platforms are developed and supported by PFSoft LLC. While featuring the specially developed ProTrader Language (PTL), the provided IDE named PTL Builder offers also the opportunity to create scripts in MQLII, MQL4 and EasyLanguage. For this, the text of the program is translated to a language-independent code. Therefore, at runtime it does not matter in which language the script was written. This technology does not only enable creating new scripts, but makes it possible to use freely the entire accumulated collection of scripts that many experienced traders possess.
The main idea put into the new scripting language was to ensure maximum reliability and predictability of the scripts being run. The PTL language is built so as to minimize the possibility of making a mistake in the text of a user's script-the potentially dangerous points will be detected even before the script is tested or launched.
Regardless of the programming language chosen, the platform works with verified managed code while running the script. This Microsoft-developed technology enables proper handling of errors that cannot be detected before the script is run. This means the program will not fail and will not perform any unwanted operations that might be due to critical errors or damage caused by another program, for which the account holder would eventually have to pay.
The PTL Builder IDE will serve well both financial experts and programmers thanks to its support of different programming languages and provided tools such as tester and debugger.
2.4. Solution Comparison
The above IDEs have their specific feature sets. The table below provides a summary comparison of the capabilities offered by each.
3. Approaches for Creating Automated Trading Systems and Recommendations for Using Them
It hardly needs mentioning that choosing an information and trading platform should be taken with all seriousness. For those who plan to use an automated trading system in their business, below are some points I would recommend considering, based on my personal experience.
3.1. Choosing a Working Environment
First of all, define the type of tasks the automated trading system is to perform. These could be:
Actual trading: opening and closing positions in selected instrument(s).
Secondary support-type functions. These could include placing protective orders, creating and sending out reports of notifications.
Analyzing the market with different technical analysis tools using your own algorithm.
Now, after you have studied user comments on the Internet and perhaps consulted your broker, proceed to getting the feel of the products offered. I strongly encourage you not to just have a cursory look, but to test the system for a day of two, thankfully, most of the large companies will let you sign up for a demo account for testing. Pay attention to both the convenience of the IDE and the tools that go with it, and to reliability and security of the control programs created with the IDE.
3.2. Creating a Control Program
If you are planning to create your own scripts, take the time to study the documentation for the programming language and the IDE. Naturally, for an automated trading system to be expertly organized, the scripts should be written by qualified professionals in the field of programming and finance. In case you wish to use one of the classic programs, remember that most of them are of trial, demonstration nature. They are good for testing the automated trading system or to be used as a basis for your own programs, but as self-sustaining, ready-to-use solutions they are of little avail.
If you decide to use programs written by third-party developers, keep in mind that good solutions will have to be paid for. The cost of one innovative strategy varies between $300 and $500, but the price for fine-tuned strategies that use advanced mathematical and economic techniques and especially for winners and runners-up of automated trading championships may exceed $1,000.
3.3. Testing Scripts
When using an automated trading system, always test your scripts. The procedure can be as follows:
1. Test the program in a script tester (if such facility is available in your IDE) several times, varying the chart period, the instrument being traded, and the program settings. Try to model the conditions close to the actual state of the market.
2. Test the script in a demo account (if such an opportunity is available). At this stage, it is important to let the program run for a sufficiently long time (it is defined by the period of the chart). Do not stop the test if the program has at once produced a big gain or a big loss. The usefulness of the script can only be estimated after it has worked for a significant amount of time.
3. Run the script in the live account. At this stage, it is not advisable to interfere with the script-for example, close the positions it has opened or modify their settings-or you can upset the internal logic of the program.
3.4. How Not to Fall Prey to Tricks When Choosing a Script
Remember that there are no absolutely perfect advisers. So, do not let them sell you the Brooklyn Bridge-if you had a system that brings in fabulous profits, would you sell it? There is only one advice-a rigorous comprehensive testing will help you get the right impression about the script offered.
Usually, script vendors describe their products with the results of their own testing. In most cases, however, such results are very slanted. Remember that testing should always be performed on several histories, or you can simply adjust to one history fragment and show sky-high results. Based on the NFL theorem, it is fair to say that it is impossible to create a script that would the best of all those existing, in all instruments.
Some professional programmers use sophisticated mathematical tools to endow their programs with artificial intelligence-neural networks, forecasting and evolutionary algorithms are no longer surprising. I would not recommend overestimating such systems-complex forecasting algorithms are very sensitive to errors and parameter settings, while simple schemes are not of much help to the advisor when it comes to generating trade signals, and can only be used to raise the price of the script.
4. Conclusion
In this article, I neither discuss any programming rules for creating the advisors, nor the specifics of writing scripts in a particular language. On these subjects, there are whole books written as well as a number of articles. My aim was to present several points which I think to be quite important but which have not been sufficiently covered in existing publications.
So, are automated trading systems your ally or enemy? When used carefully and without hasty judgments, an automated trading system can facilitate the financial expert's work and bring in certain profits. But when used incorrectly, incompletely tested, or having settings changed frequently, the automated trading system can lose the money you entrust to it.
Remember that an automated trading system is not going to do your job for you without any effort on your part. Use it to solve your existing problems and not add new ones.
5. References
1. MetaQuotes — developer of MetaTrader, MQL2 and MQL4
2. TradeStation — developers of TradeStation and EasyLanguage
3. PFSoft — developers of ProTraderFX, ProTrader2 and ProTraderLanguage
by Nikita Laukhin
Automated Trading and Scripts Analyst of PFSoft Company.
Today, using information and trading platforms has become a de facto requirement for successful trading in the financial markets. Their advantages as compared to conventional trading schemes include, for example, an unprecedented speed of processing and delivery of information to end users, the level of integration with data providers, and a wide array of built-in technical analysis instruments.
At the same time, an investor opening an account with a brokerage firm simply cannot simultaneously manage the real-time analysis and trade in more than 4-6 financial instruments in several markets 24 hours 7 days a week. This brings about the need to employ automatic trading systems in the form of runtime environment with client and server parts and the programs to control these systems (scripts).
2. Comparative Analysis of the Problem Area
Various software components embrace the entire target sector of the market-from analytics and forecasting to complex trade and administration. The components of a trading platform provide its clients-brokers, dealers, traders, financial analysts and advisors-just the service they need at the very moment they need it, from immediate round-the-clock access to information of concern by means of mobile devices, to multi-move trading operations in the major client terminal.
The software market offers a great many of information and trading platforms that differ, first of all, in the functionality of the client and server parts, and the list of services provided by the financial company once an account has been opened. However, only a relatively small number of software solutions include the components that automate trading.
2.1. MetaTrader4-based Solutions
One of the world's most widely used trade platform products is apparently MetaTrader4, developed by MetaQuotes Software Corporat?on for Forex market trading. The platform includes an integrated development environment (IDE) MetaEd?tor, intended for writing scripts in a programming language called MetaQuotes Language, or MQL4 for short. The language's syntax is based on the classic C language syntax, and the flow logic has not been significantly changed since the previous version of the platform that used MQL II as the programming language. The new automated trade framework is, undoubtedly, an evolution of the previous one. Both languages feature good functionality, with an optimum set of built-in trading and utility functions which is quite sufficient to implement the basic operations, and a facility to define custom functions to help implement non-standard ideas.
From the programming point of view, MQL4 is much more convenient that its predecessor; this language is more oriented at professional programmers, while MQL II, in my opinion, will rather suit financial experts wishing to build trading programs (or trading advisors, in the MetaQuotes terminology) of their own.
2.2. Omega Research-based Solutions
In the New World, the vast majority of companies use the Omega Research platform developed by TradeStation Securities, Inc. This platform has long ago proven its worth at the worldwide market, and to date experts consider it to be the best system for technical analysis. The provided IDE called Omega Research PowerEditor is intended to create control programs in EasyLanguage (EL).
The language's major advantage that strikes the eye is the easiness (hence is the name) of placing opening and closing orders. The corresponding program instructions can be written such as if we were formulating an order to our broker in the plain human language. In MQL4, for example, placing an order to open a position would involve specifying about a dozen of various parameters. In EasyLanguage, the same can be expressed in a short statement using a few words. Working with technical indicators is about that simple, too. But don't fall under an illusion: when creating these simple commands, language developers sacrificed the functionality and limited the possible ways of using a particular function, therefore effectively depriving the IDE users of the opportunity to accurately implement their own algorithms.
TradeStation decided not to create extensive libraries of built-in trading and utility functions but to limit to only an essential set. As the platform advanced, the number of functions written by both in-house and third-party developers grew, and TradeStation simply included them as user-defined functions into the repository of its scripts. As a result, the functionality offered to users is not in the least scarcer than that of MetaQuotes product.
PowerEditor provides a built-in dictionary that lets user search and get help on the available functions. Another handy tool worth mentioning is the strategy builder. Using the strategy builder, the user can easily create a basic algorithm for his or her trading program, and then modify and adjust it as necessary.
EasyLanguage is an old-timer and pioneer in the field of creating automated trading systems for the stock market. It was the basis for the development of MQL II. EasyLanguage will be a good choice for programmers, but still a better one for financial experts more oriented at analyzing the market than trading.
2.3. ProTrader-based Solutions
Professional financial experts can choose the ProTrader2 or ProTraderFX platform as their working tool, depending on the type of the financial market-stock or Forex, respectively. The two platforms are developed and supported by PFSoft LLC. While featuring the specially developed ProTrader Language (PTL), the provided IDE named PTL Builder offers also the opportunity to create scripts in MQLII, MQL4 and EasyLanguage. For this, the text of the program is translated to a language-independent code. Therefore, at runtime it does not matter in which language the script was written. This technology does not only enable creating new scripts, but makes it possible to use freely the entire accumulated collection of scripts that many experienced traders possess.
The main idea put into the new scripting language was to ensure maximum reliability and predictability of the scripts being run. The PTL language is built so as to minimize the possibility of making a mistake in the text of a user's script-the potentially dangerous points will be detected even before the script is tested or launched.
Regardless of the programming language chosen, the platform works with verified managed code while running the script. This Microsoft-developed technology enables proper handling of errors that cannot be detected before the script is run. This means the program will not fail and will not perform any unwanted operations that might be due to critical errors or damage caused by another program, for which the account holder would eventually have to pay.
The PTL Builder IDE will serve well both financial experts and programmers thanks to its support of different programming languages and provided tools such as tester and debugger.
2.4. Solution Comparison
The above IDEs have their specific feature sets. The table below provides a summary comparison of the capabilities offered by each.
3. Approaches for Creating Automated Trading Systems and Recommendations for Using Them
It hardly needs mentioning that choosing an information and trading platform should be taken with all seriousness. For those who plan to use an automated trading system in their business, below are some points I would recommend considering, based on my personal experience.
3.1. Choosing a Working Environment
First of all, define the type of tasks the automated trading system is to perform. These could be:
Actual trading: opening and closing positions in selected instrument(s).
Secondary support-type functions. These could include placing protective orders, creating and sending out reports of notifications.
Analyzing the market with different technical analysis tools using your own algorithm.
Now, after you have studied user comments on the Internet and perhaps consulted your broker, proceed to getting the feel of the products offered. I strongly encourage you not to just have a cursory look, but to test the system for a day of two, thankfully, most of the large companies will let you sign up for a demo account for testing. Pay attention to both the convenience of the IDE and the tools that go with it, and to reliability and security of the control programs created with the IDE.
3.2. Creating a Control Program
If you are planning to create your own scripts, take the time to study the documentation for the programming language and the IDE. Naturally, for an automated trading system to be expertly organized, the scripts should be written by qualified professionals in the field of programming and finance. In case you wish to use one of the classic programs, remember that most of them are of trial, demonstration nature. They are good for testing the automated trading system or to be used as a basis for your own programs, but as self-sustaining, ready-to-use solutions they are of little avail.
If you decide to use programs written by third-party developers, keep in mind that good solutions will have to be paid for. The cost of one innovative strategy varies between $300 and $500, but the price for fine-tuned strategies that use advanced mathematical and economic techniques and especially for winners and runners-up of automated trading championships may exceed $1,000.
3.3. Testing Scripts
When using an automated trading system, always test your scripts. The procedure can be as follows:
1. Test the program in a script tester (if such facility is available in your IDE) several times, varying the chart period, the instrument being traded, and the program settings. Try to model the conditions close to the actual state of the market.
2. Test the script in a demo account (if such an opportunity is available). At this stage, it is important to let the program run for a sufficiently long time (it is defined by the period of the chart). Do not stop the test if the program has at once produced a big gain or a big loss. The usefulness of the script can only be estimated after it has worked for a significant amount of time.
3. Run the script in the live account. At this stage, it is not advisable to interfere with the script-for example, close the positions it has opened or modify their settings-or you can upset the internal logic of the program.
3.4. How Not to Fall Prey to Tricks When Choosing a Script
Remember that there are no absolutely perfect advisers. So, do not let them sell you the Brooklyn Bridge-if you had a system that brings in fabulous profits, would you sell it? There is only one advice-a rigorous comprehensive testing will help you get the right impression about the script offered.
Usually, script vendors describe their products with the results of their own testing. In most cases, however, such results are very slanted. Remember that testing should always be performed on several histories, or you can simply adjust to one history fragment and show sky-high results. Based on the NFL theorem, it is fair to say that it is impossible to create a script that would the best of all those existing, in all instruments.
Some professional programmers use sophisticated mathematical tools to endow their programs with artificial intelligence-neural networks, forecasting and evolutionary algorithms are no longer surprising. I would not recommend overestimating such systems-complex forecasting algorithms are very sensitive to errors and parameter settings, while simple schemes are not of much help to the advisor when it comes to generating trade signals, and can only be used to raise the price of the script.
4. Conclusion
In this article, I neither discuss any programming rules for creating the advisors, nor the specifics of writing scripts in a particular language. On these subjects, there are whole books written as well as a number of articles. My aim was to present several points which I think to be quite important but which have not been sufficiently covered in existing publications.
So, are automated trading systems your ally or enemy? When used carefully and without hasty judgments, an automated trading system can facilitate the financial expert's work and bring in certain profits. But when used incorrectly, incompletely tested, or having settings changed frequently, the automated trading system can lose the money you entrust to it.
Remember that an automated trading system is not going to do your job for you without any effort on your part. Use it to solve your existing problems and not add new ones.
5. References
1. MetaQuotes — developer of MetaTrader, MQL2 and MQL4
2. TradeStation — developers of TradeStation and EasyLanguage
3. PFSoft — developers of ProTraderFX, ProTrader2 and ProTraderLanguage
by Nikita Laukhin
Automated Trading and Scripts Analyst of PFSoft Company.
5 EMAs FOREX SYSTEM, Exponential Moving Averages Full Potential
Among one of the important concepts a new forex trader should know is what a Moving Average means, how it's calculated and what its use as a trading indicator is.
Moving Average is defined as a technical indicator that shows the average value of a particular currency pair over a previously determined amount of time. This means, for example, that prices are averaged over 20 or 50 days, or 10 and 50 min depending on the time frame you are using at the moment of your trading activity.
As an averaged quantity, MA's can bee seen as a smoothed representation of the current market activity and an indicator of the major trend influencing the market behavior.
The basic mechanics of how Moving Averages can tell you where the forex market is moving (up or down), at the moment of your analysis is by considering two different time frame Moving Averages and plotting them on the forex chart. It is very important that one of these MA is over a shorter time period than the other one; let's say one will be over a 15 days period and the other over a 50 days period. Most trading station software available by a number of brokers will let you do this plotting and much more.
Recently there has been the realese of a new forex trading system called "The 5 EMAs FOREX SYSTEM". This system will allow you to identify both entry and exit points with incredible accuracy. He even claims you can convert $1000 into $1000 000 in just 24 months. He may be exaggerating a bit on this, but his plan of action and use of moving averages is quite outstanding and accurate.
Depending upon the exit strategy selected, the system generates monthly returns of between 30% and 55%. Which is more tha enough to make a living trading the forex markets with the 5 EMAs Forex System.
by Adrian Pablo
Moving Average is defined as a technical indicator that shows the average value of a particular currency pair over a previously determined amount of time. This means, for example, that prices are averaged over 20 or 50 days, or 10 and 50 min depending on the time frame you are using at the moment of your trading activity.
As an averaged quantity, MA's can bee seen as a smoothed representation of the current market activity and an indicator of the major trend influencing the market behavior.
The basic mechanics of how Moving Averages can tell you where the forex market is moving (up or down), at the moment of your analysis is by considering two different time frame Moving Averages and plotting them on the forex chart. It is very important that one of these MA is over a shorter time period than the other one; let's say one will be over a 15 days period and the other over a 50 days period. Most trading station software available by a number of brokers will let you do this plotting and much more.
Recently there has been the realese of a new forex trading system called "The 5 EMAs FOREX SYSTEM". This system will allow you to identify both entry and exit points with incredible accuracy. He even claims you can convert $1000 into $1000 000 in just 24 months. He may be exaggerating a bit on this, but his plan of action and use of moving averages is quite outstanding and accurate.
Depending upon the exit strategy selected, the system generates monthly returns of between 30% and 55%. Which is more tha enough to make a living trading the forex markets with the 5 EMAs Forex System.
by Adrian Pablo
Forex Forecasts — You Never Know What You Will Benefit From
Possible risks and profits to be made can always be predicted if traders would only have more accurate Forex forecast to base their trade and decisions upon. Forex forecasts are only one way of keeping up with the volatile Forex market. Success will depend the most in knowing what and who will affect the rate changes.
The Forex market has already been through a lot of ups and downs that even fortune tellers would have difficulty guessing what will be its next movement. Making a Forex forecast can be helpful but can also be too risky. Besides, doing it is not that easy also.
In Forex forecasts, nothing specific is given. The traders are not made to hope high and expect more. If you have seen or heard a Forex forecast, be sure to check on some projected rate fluctuations whenever and wherever possible so you would have an idea it the Forex forecast shows a likely possibility to be true or not.
Staying in touch and up-to-date with the latest news and happenings around the globe and information about the Forex currency can help traders determine when is the best time to buy, sell and stay away from a particular market. All these things are important in the performance of your trade. Take note of some Forex forecasts if only to serve as guide whenever you are in a situation that you find hard to make a decision upon.
How can one benefit from Forex forecasts?
There are some companies that are offering Forex forecast information as a subscription that traders can avail of. For those who do not have enough patience and browse for information in the internet, this Forex forecast information would be their alternative.
No one said that there is a 100% accuracy in these Forex forecasts. And no one told traders that they should also believe them 100%. If you want to have more degree of accuracy in the Forex forecast, you could always find one with the most accurate percentage rate.
You could look for something or someone that offers free information or a trail period for you to test the degree of their ability to give accurate forecast about the Forex market. There are also some sites that send out Forex forecast to emails that you may want to try out just so you will choice to choose from if you decide to avail the services of some of them.
Relying only on one Forex forecast is not the thing to do. You should at least have some more choices in the process of making an investment decision. Try to get more Forex forecast from sources that are rampant online and offline so you would not stick to just one.
The thing to remember is that your investments are your future and you have already worked too hard to just let it all down the drain. Do not put the future of your Forex trade into the hands of only person. Try to get several Forex forecast and choose the best one that you think has great ounces of accuracy up their sleeves.
Before putting the future of your investments into the hands of those offering Forex forecasts, make it a point to check out the latest that is happening in the Forex trading and see if the trend is likely to go with what the predictions are telling about.
If you think more about it, people doing Forex forecasts would not be out there giving bad forecasts because their reputation is the one at stake there. They surely would not want to ruin the image they have by giving false predictions about things that they know people will listen to, would they?
Like they say, traders should not believe all that is written in Forex forecasts. Some but not all. There are still decisions to be made that will be based upon the trader itself and no amount or accuracy of Forex forecasts can make that decision for them.
Just to be on the right side of things, always make sure and do your own research that will back up the Forex forecast you actually think is going to work. You never know what it will lead to...
by Kevin Anderson
The Forex market has already been through a lot of ups and downs that even fortune tellers would have difficulty guessing what will be its next movement. Making a Forex forecast can be helpful but can also be too risky. Besides, doing it is not that easy also.
In Forex forecasts, nothing specific is given. The traders are not made to hope high and expect more. If you have seen or heard a Forex forecast, be sure to check on some projected rate fluctuations whenever and wherever possible so you would have an idea it the Forex forecast shows a likely possibility to be true or not.
Staying in touch and up-to-date with the latest news and happenings around the globe and information about the Forex currency can help traders determine when is the best time to buy, sell and stay away from a particular market. All these things are important in the performance of your trade. Take note of some Forex forecasts if only to serve as guide whenever you are in a situation that you find hard to make a decision upon.
How can one benefit from Forex forecasts?
There are some companies that are offering Forex forecast information as a subscription that traders can avail of. For those who do not have enough patience and browse for information in the internet, this Forex forecast information would be their alternative.
No one said that there is a 100% accuracy in these Forex forecasts. And no one told traders that they should also believe them 100%. If you want to have more degree of accuracy in the Forex forecast, you could always find one with the most accurate percentage rate.
You could look for something or someone that offers free information or a trail period for you to test the degree of their ability to give accurate forecast about the Forex market. There are also some sites that send out Forex forecast to emails that you may want to try out just so you will choice to choose from if you decide to avail the services of some of them.
Relying only on one Forex forecast is not the thing to do. You should at least have some more choices in the process of making an investment decision. Try to get more Forex forecast from sources that are rampant online and offline so you would not stick to just one.
The thing to remember is that your investments are your future and you have already worked too hard to just let it all down the drain. Do not put the future of your Forex trade into the hands of only person. Try to get several Forex forecast and choose the best one that you think has great ounces of accuracy up their sleeves.
Before putting the future of your investments into the hands of those offering Forex forecasts, make it a point to check out the latest that is happening in the Forex trading and see if the trend is likely to go with what the predictions are telling about.
If you think more about it, people doing Forex forecasts would not be out there giving bad forecasts because their reputation is the one at stake there. They surely would not want to ruin the image they have by giving false predictions about things that they know people will listen to, would they?
Like they say, traders should not believe all that is written in Forex forecasts. Some but not all. There are still decisions to be made that will be based upon the trader itself and no amount or accuracy of Forex forecasts can make that decision for them.
Just to be on the right side of things, always make sure and do your own research that will back up the Forex forecast you actually think is going to work. You never know what it will lead to...
by Kevin Anderson
Подписаться на:
Сообщения (Atom)