http://myforexstrategy.blogspot.com/2008/03/ea-fxtradepro-my-2nd-portfolio.html
http://www.forexfactory.com/showthread.php?t=43221&highlight=Semi+Martingale
EA FXTradePro : My 2nd Portfolio
Monday, March 10, 2008
Have you ever read FXTrade Pro's trading strategy at ForexFactory.com? His strategy uses semi martingale lots which is good if you know how to use it. Why we call it semi martingale? Because calculation of the next lots is different from original martingale. In original version, we are doubling the next lots from the previous one. But in FXTrade Pro's strategy, we are not doing the same thing but are still growing the next lots based at our calculations.
Here is the progression of the next lots :
So, what is the main strategy? His strategy uses TakeProfit = 40 and StopLoss = 10 in every sequence with the progression lots. For example, we buy 0.1 lots Eur/Usd at 1.3500 with TP=40 pips and SL=10 pips. This is first sequence. Then our SL is hit. We open the next sequence which is sell 0.1 lots Eur/Usd at 1.3490 with same TP and SL. If our SL is hit once again, we open the next sequence. For better explanation, you can check the picture below.
This simple strategy is very useful if we can combine with other strategy such as break out eagle. We can use our own progression lots depend on our risk ratio and equity. For this purpose, please find the lots calculator in xls format at the link below.
Hint : Use this strategy at brokers company which give you ability to put thin Stop Loss and high leverage margin. (Remember, not all brokers permit us to put SL for 10 pips)
For this strategy, FXTrade Pro already developed an Expert Advisor but it is not free. That's the reason why he was banned from Forex Factory's Forum. Fortunately for my blog's reader, I develop an EA based at his strategy, too. Actually, I develop this EA based at my friend's request, Mr. Duyduy. You can have it for free but use it at your own risk. Please try this strategy and EA at demo first before attach it at live trading.
Remember, this EA is semi automatic. There are two ways to use it.
1. You can use it as soon as you activate / attach the EA to the chart
2. Or you can input the price which you want the EA to start trading.
Please find this parameter at the EA's properties.
Don't forget to visit my blog in other time because I still have some interesting Expert Advisor for you all. Thanks for reading my words.
Download the calculator to count the progression lots : here
Download the Expert Advisor for free : here
Digg this
Posted by Aryana 10:32 AM
Labels: Expert Advisor, Forex System, Portfolio
11 comments:
At March 16, 2008 9:57 AM abi said...
Hi, bro...
It's interesting to see this strategy, though a long whipsaw or flat ranging market may suffer you for a pain of lose. Anyway I'll try to play with it once my VPS server is ready.
Please explain the setting and pair to trade with this EA.
And speaking of strategy, I have another strategy I've read that might make you interested to convert it into an EA.
1. Learn the basics of forex trading. It’s amazing how many people simply don’t know what they’re doing. In order to compete at the highest level in the trading business and be one of the few truly successful participants you must be well-educated about what you are doing. This does not mean having a degree from a well-respected university – the market doesn’t care where you were educated.
2. Forex trading is a zero sum game. For every long there is also a short. If 80% of the traders are on the long side ,then the remaining 20% are on the short side. This means further that the shorts must be well capitalized and are considered to be strong hands. The 80%, who are holding much smaller positions per trader, are considered to be weaker hands who will be forced to liquidate those longs on any sudden turn in prices.
3. Nobody is bigger than the market.
4. The challenge is not to be the market, but to read the market. Riding the wave is much more rewarding than being hit by it.
5. Trade with the trends, rather than trying to pick tops and bottoms.
6. Trying to pick tops and bottoms is another common fx trading mistake. If you’re going to trade tops and bottoms, at least wait until the price action actually confirms that a top or a bottom has been formed before you take a position in the market. Trying to pin-point tops and bottoms in the foreign exchange market is very risky, but exercising a little patience and waiting for a proven top or bottom to form can increase your odds of profiting and somewhat reduce your risk.
7. There are at least three types of markets: up trending, range bound, and down. Have different trading strategies for each.
8. Standing aside is a position.
9. In uptrends, buy the dips ;in downtrends, sell bounces.
10. In a Bull market, never sell a dull market, in Bear market, never buy a dull market.
11. Up market and down market patterns are ALWAYS present, merely one is more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped out time and again. Select trades with the trend.
12. A buy signal that fails is a sell signal. A sell signal that fails is a buy signal.
13. Let profits run, cut losses short.
14. Let your profits run, but don’t let greed get in the way. Once you’ve already made a nice profit on a trade, consider taking either some or all of the money off the table and move on to the next trade. It’s natural to hope that one trade will end up as your “winning lottery ticket” and make you rich, but that is simply not realistic. Don’t hold the position too long and end up giving all your well-deserved profits back to the market.
15. Use protective stops to limit losses.
16. Use appropriate stop-loss orders at all times to cut your losses and never, ever sit back and let your losses run. Almost every trader at some point makes the mistake of letting his or her losses run in hopes that the market will eventually turn around in his or her favor but, more often than not, it simply leads to an even greater loss. You win some, you lose some. Simply learn to cut your losses, take your occasional lumps and move on to the next trade. And if you made a mistake, learn from it and don’t do it again. To avoid letting your losses run, get into the habit of determining an acceptable profit target as well as an acceptable risk tolerance level for each and every forex trade before entering the market. Then simply place a stop-loss order at the appropriate price - but not so tight (close to the market) that the stop could quickly take you out of the position before the market has a chance to move in your favor. Using a stop is always the smart move.
17. Avoid placing protective stops at obvious round numbers. Protective stops on long positions should be placed below round numbers (10, 20, 25, 50,75, 100) and on short positions ,above such numbers.
18. Placing stop loss is an art. The trader must combine technical factors on the price chart with money management considerations.
19. Analyze your losses. Learn from your losses. They’re expensive lessons; you paid for them. Most traders don’t learn from their mistakes because they don’t like to think about them.
20. Stay out of trouble, your first loss is your smallest loss.
21. Survive! In forex trading, the ones who stay around long enough to be there when those “big moves” come along are often successful.
22. If you are a new trader, be a small trader (mini account) for at least a year, then analyze your good trades and your bad ones. You can really learn more from your bad ones.
23. Don’t trade unless you’re well financed…so that market action, not financial condition, dictates your entry and exit from the market. If you don’t start with enough money, you may not be able to hang in there if the market temporarily turns against you.
24. Be more objective and less emotional.
25. Use money management principles.
26. Money management increases the odds that the trader will survive to reach the long run.
27. Diversify, but don’t overdo it.
28. Employ at least a 3 to 1 reward-to-risk ratio.
29. Calculate the risk/reward ratio before putting a trade on, then guard against
holding it too long.
30. Don’t trade impulsively ; have a plan.
31. Have specific goals and objectives.
32. Five steps to build a trading system: a) Start with a concept b)Turn it into a
set of objective rules. c) Visually check it out on the charts d) Formally test it with a demo e) Evaluate the results.
33. Plan your work and work your plan.
34. Trade with a plan - not with hope, greed, or fear. Plan where you will get in the market, how much you will risk on the trade, and where you will take your
profits.
35. Follow your plan. Once a position is established and stops are selected, do not get out unless the stop is reached or the fundamental reason for taking the position changes.
36. Any successful trading system must take into account three important factors: price forecasting , timing , and money management. Price forecasting indicates which way a market is expected to trend. Timing determines specific entry and exit points. Money management determines how much to commit to the trade.
37. Don’t cherry-pick your system’s set-ups. Trade every signal.
38.Trading systems that work in an up market may not work in a down market.
39. Establish your trading plans before the market opening to eliminate emotional reactions. Decide on entry points, exit points, and objectives. Subject your decisions to only minor changes during the session. Profits are for those who act, not react.Don’t change during the session unless you have a very good reason.
40. Double-check everything.
41. Always think in terms of probabilities. Trading is all about thinking in
probabilities NOT certainties. You can make all the “right” decisions and the trade still goes against you. This does not make it a “wrong” trade, just one of the many trades you will take which, through probability, are on the “loosing” side of your trading plan. Don’t expect not to have negative trades - they are a necessary part of the plan and cannot be avoided.
42. The place to start your market analysis is always by determining the general trend of the market.
43. Trade only with a strategy that you’ve proven to yourself.
44. When pyramiding (adding positions), follow these guidelines. a. Each successive layer should be smaller than before. b. Add only to winning positions. c. Never add to a losing position. One of the few trade management rules that we can state we never break is ‘Never add to a losing trade’. Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small to risk more money on. If indeed it is a winner disguised as a loser,
why not wait until it shows it’s true colors (and becomes a d. winner)before you add to it. If you do this you will notice that nearly always the trade ends up hitting your stop loss and does not look back. Sometimes the trade turns around before it hits your stop and becomes a winner and you can count yourself very fortunate. Sometimes the trade hits your stop loss and then turns around and becomes a winner and you can count yourself unlucky. Whatever the result, it is never worth adding to a loser, hoping that it will become a winner. The odds of success are just too low to risk more capital in addition to the initial risk. e. Adjust protective stops to the breakeven point.
45. Risk Control A)Never risk more than 3-4 percent of your capital on any trade B)Predetermine your exit point before you get into a trade c)If you lose a certain predetermined amount of your starting capital, stop trading, analyze what went wrong, and wait until you feel confident before you begin trading
46. Don’t trade scared money. No one ever made any money trading when they had to do it to pay the mortgage at the end of the month. Having a requirement to make X dollars per month or you will be financially in trouble is the best way I know to completely mess up all trading discipline, rules, objectives, and leads quickly to disaster. Trading is about taking a reasonable risk in order to achieve a good reward. The markets and how and when they give up their profits is not under your control. Do not trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by another income stream or cash reserve. This will only lead to additional unmanageable stress and be very detrimental to your trading performance.
47. Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful forex trading
48. Never meet a margin call; don’t throw good money after bad.
49. Close out losing positions before the winning ones,
50. Except for very short term trading, make decisions away from the market, preferably when the markets are closed.
51. Work from the long term to the short term.
52. Use intraday charts to fine-tune entry and exit.
53. Master interday trading before trying intraday trading.
54. Don’t trade the time frame. Trade the pattern. Reversal patterns, hesitation patterns and breakout patterns appear often. Learn to look for the pattern in any time frame.
55. Try to ignore conventional wisdom; don’t take anything said in the financial media too seriously.
56. Always do your homework and stay current on global events. You never know what’s going to set off a particular currency on any given day.
57. Learn to be comfortable being in the minority. If you are right on the market, most people will disagree with you. (90% losers,10% winners).
58. Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.
59. Beware of all tips and inside information. Wait for the market’s action to tell you if the information you’ve obtained is accurate, then take a position with the developing trend.
60. Buy the rumor, sell the news.
61. K.I.S.S – Keep It Simple Stupid, more complicated isn’t always better.
62. Timing is especially crucial in forex trading.
63. Timing is everything in forex trading. Determining the correct direction of the
market only solves a portion of the trading problem. If the timing of the entry point is off by a day ,or sometimes even minutes ,it can mean the difference between a winner or a loser.
64. A “buy and hold” strategy doesn’t apply in forex trading
65. When you open an account with a broker, don’t just decide on the amount of money, decide on the length of time you should trade. This approach helps you conserve your equity, and helps avoid the Las Vegas approach of “Well, I’ll trade till my stake runs out.” Experience shows that many who have been at it over a long period of time end up making money.
66. Carry a notebook with you, and jot down interesting market information. Write down the market openings, price ranges, your fills, stop orders, and your own personal observations. Re-read your notes from time to time; use them to help analyze your performance.
67. Don’t count profits in your first 20 trades. Keep track of the percentage of wins. Once you know you can pick direction, profits can be increased with multi-plot trading and variations in using your stops. In other words, now is the time to get serious about money management.
68.”Rome was not built in a day,” and no real movement of importance takes place in one day.
69. Do not overtrade.
70. Have two accounts. One real account and the other a demo account. Learning doesn’t stop when trading real dollars begins. Keep the demo account and use it to test alternative trades, alternative stops, etc.
71. Patience is important not only in waiting for the right trades,but also in staying with trades that are working.
72. You are superstitious; don’t trade if something bothers you.
73. Technical analysis is the study of market action through the use of charts,for the purpose of forecasting future price trends.
74. The charts reflect the bullish or bearish psychology of the marketplace.
75. The whole purpose of charting the price action of a market is to identify trends in early stages of their development for the purpose of trading in the direction of those trends
76. The fundamentalist studies the cause of market movement, while the technician studies the effect.
77. Rising commodity prices generally hint at a stronger economy and rising inflationary pressure. Falling commodity prices usually warn that the economy is slowing along with inflation.
78. The longer the period of time that priced trade in a support or resistance area,the more significant that area becomes.
79. There are three decisions confronting the trader –whether- to go long, go short or do nothing. When a market is rising ,the best strategy is preferable. When the market is falling, the second approach would be correct. However ,when the market is moving sideways ,the third choise –to stay out of the market- is usually the wisest.
80. Channel lines have measuring implications. Once a breakout occurs from an existing price channel ,prices usually travel a distance equal to the width of the channel .Therefore, the trader has to simply measure the width of the channel and then project that amount from the point at which either trendline is broken.
81. The larger the Pattern ,the Great the potential. When we use the term “larger” ,we are referring to the the height and the width of the price pattern. The height measures the volatility of the pattern. The width is the amount of time required to build and complete the pattern. The greater the size of the pattern-that is ,the wider the price swings within the pattern (the volatility ) and the longer it takes to build –the more important the pattern becomes and the greater the potential for the ensuing price move.
82. The breaking of important trendlines . The first sign of an impending trend reversal is often the breaking of an important trendline. Remember however ,that the violation of a major trendline does not necessarily signal a trend reversal.The breaking of a major up trendline might signal the beginning of a sideways price pattern ,which later would be intedified as either the reversal or consolidation type.Sometimes the breaking of the major trendline coincides with the completion of the price pattern.
83. The minimum requirement for a triangle is four reversal points. Remember that it always takes two points to draw a trendline.
84. The moving average is a follower , not a leader. It never anticipates;it only
reacts. The moving average follows a market and tells us that a trend has begun, but only after the fact.
85. Shorter term averages are more sensitive to the price action ,whereas longer range averages are less sensitive.In certain types of markets ,it is more advantageous to use a shorter average and ,at other times , a longer and less sensitive average proves more useful.
86. When the closing price moves above the moving average , a buy signal is generated. A sell signal is given when prices move below the moving average.
87. A buying signal on a two-moving average combination occurs when the shorter term of two consecutive averages intersects the longer one upward. A selling signal occurs when the reverse happens, and the longer of two consecutive averages intersects the shorter one downward.
89. Shorter average generates more false signals ,it has the advantage of giving trend signals earlier in the move .The trick is to find the average that is sensitive enough to generate early signals, but insensitive enough to avoid most of the random “noise”.
90. Cutting losses is painful for every trader.The ability to cut one’s losses in time is the sign of a seasoned trader.
91.A channel breakout suggests a target for the currency price equal to the width of the channel.
92. Long term charts provide important information regarding long-terms or cycles. The trader can get a correct perspective regarding the real direction of the market in the long run, the strength or direction of the current trend occurring within that trend, or the possibility of a breakout from the long-term trend.
93. Common Points All Of Reversal Patterms A)The first signal of an impending trend reversal is often the breaking of an important trendline. B)The larger the pattern,the greater the subsequent move C)Topping patterns are usually shorter in duration and more volatile than bottoms. D)Bottoms usually have smaller price ranges and take longer to build
94. The head-and-shoulders formation is confirmed only when the completion of the three rallies and their reversals is followed by a breach of the neckline. The failure of the price to break through the neckline on closing prices basis puts on hold or negates the validity of the formation.
95. The double-top formation is confirmed only when the full completion of the two rallies and their respective reversals is followed by a breach of the neckline (the closing price is outside the neckline ).The failure of the price to break through the neckline puts on hold or negates the validity of the formation.
96. The flag formation is a reliable chart pattern that provides two vital signals: direction and price objective. This formation consists of a brief consolidation period within a solid and steep upward trend or downward trend. The consolidation itself tends to be sloped in the opposite direction from the slope of the original trend, or simply flat.
97. A Breakaway gap provides the direction of the market.
98. The runaway or measurement gap provides the direction of the market. This gap confirms the health and velocity of the trend.
99. The runaway or measurement gap is the only type of gap that provides a price objective. The price objective is the previous length of the trend, measured from the runaway gap, in the same direction as the original trend.
100. The exhaustion gap provides the direction of the market.
101. Near the beginning of important moves, oscillator analysis isn’t that helpful and can be misleading. Toward the end of market moves ,however ,oscillators become extremely valuable.
102. When the oscillator reaches an extreme value in either the upper or lower end of the band, this suggest that the current price move have gone too far too fast and is due for a correction of some type.
103. The oscillator is most useful when its value reaches an extreme reading near the upper or lower end of its boundaries. The market is said to be overbought when it is near the upper extreme and oversold when it is near the lower extreme. This warns that the price trend is overextended and vulnerable.
104. A divergence between the oscillator and the price action when the oscillator is in an extreme position is usually an important warning.
105.-Oscillator-The crossing of the zero line can give important trading signals in the direction of the price trend.
106.Because of the way it is constructed, the momentum line is always a step ahead of the price movement. It leads the advance or decline in prices , then levels off while the current price trend is still in effect. It then begins to move in the opposite direction as prices begin to level off.
107. RSI is plotted on a vertical scale of 0 to 100. Movements above 70 are considered overbought, while an oversold condition would be a move under 30 .Because of shifting that takes place in bull and bear markets, the 80 level usually becomes the overbought level in bull markets and the 20 level the oversold level in bear markets.
108. The first move of RSI into the overbought or oversold region is usually just a warning. The signal to pay close attention to is the second move by the oscillator into the danger zone. If the second move fails to confirm the price move into new highs or new lows, a possible divergence exists. At that point ,some defensive action can be taken to protect existing positions. If the oscillator moves in the opposite direction, breaking a previous high or low, then a divergence or failure swing is confirmed.
109. Stochastics simply measures , on a percentage basis of 0 to 100, where the closing price is in relation to the total price range for a selected time period. A very high reading (over 80) would put the closing price near the top of the range ,while a low reading
(under 20) near the bottom of the range.
110. One way to combine daily and weekly stochastics is to use weekly signals to determine market direction and daily signals for timing(it depends from the type of the trader). It’s also a good idea to combine stochastics with RSI.
111. Most oscillator buy signals work best in uptrends and oscillator sell signals are most profitables in downtrends. The place to start your market analysis is always by determining the general trend of the market. Oscillators can then be used to help time market entry.
112. Give less attention to the oscillators in the early stages of an important move, but pay close attention to its signals as the move reaches maturity.
113.The best way to combine technical indicators is use weekly signals to determine market direction and the daily signals to fine-tune entry and exit points. A daily signal is followed only when it agrees with the weekly signal. (daily-weekly, 4 hour-daily,4 hour-1 hour).
114. The failure of prices to react to bullish news in an overbought area is a clear warning that a turn may be near. The failure of prices in an oversold area to react to bearish news can be taken as a warning that all the bad news has been fully discounted in the current low price. Any bullish news will push prices higher.
115. -Elliot Wave Theory- A complete bull market cycle is made up of eight waves, five up waves followed by three down waves.
116 -Elliot Wave Theory- A trend divides into five waves in the direction of the longer trend.
117-Elliot Wave Theory- Corrections always take place in three waves.
118-Elliot Wave Theory- Waves can be expanded into longer waves and subdivided into shorter waves.
119-Elliot Wave Theory- Sometimes one of the impulse waves extends. The other two should then be equal in time and magnitude.
120-Elliot Wave Theory- The Finobacci sequence is the mathematical basis of the Elliot Wave Theory.
121-Elliot Wave Theory- The number of waves follows the Finobacci sequence.
122-Elliot Wave Theory- Finobacci ratios and retracements are used to determine price objectives. The most common retracements are 62%, 50% and 38%.
123 -Elliot Wave Theory- Bear markets should not fall below the bottom of the previous fourth wave.
124 -Elliot Wave Theory- Wave 4 should not overlap wave 1.
125 .Support and resistance are the most effective chart tools to use for entry and exit points. For purposes of placing stop loss, support and resistance levels are most valuable.
126. One of the commodities most effected by the dollar is the gold market. The prices of gold and the U.S. dollar usually trend in opposite directions.
127. The Yen is sensitive to changes in the price or structure of the raw material markets.
128. The commodity-producing countries (Canada, Australia, N. Zealand ) are more dependent on Japan than the other way around.
129. The Yen is sensitive to the fortunes of the Nikkei index, the Japanese stock market and the real estate market.
130. The majority of the pound transactions take place in London with a volume decreasing significantly in the U.S. market, and slowing down to a trickle in Asia. Therefore, in the New York market, many banks have to stop quoting the pound at noon.
131. Swiss Franc has a very close economic relationship with Germany, and thus to the euro zone.
132. The major markets are London, with 32 percent of the market,New York with 18 percent and Tokyo with 8 percent. Singapore follows with 7 percent, Germany has 5 percent and Switzerland, France and Hong Kong have 4 percent each.
133. Don’t use the markets to feed your need for excitement.
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Forex Economic Calendar Date (GMT) Country Event Actual Cons. Previous
Oct 21 00:30 AU New Motor Vehicle Sales (MoM) 0.4% -3.5%
Oct 21 00:30 AU New Motor Vehicle Sales (YoY) -8.2% -7.2%
Oct 21 00:30 AU RBA Meeting's Minutes
Oct 21 02:00 NZ Credit Card Spending 2.7% 2.7%
Oct 21 10:00 UK CBI Industrial Trends Survey - Orders (MoM) -39 -30 -26
Oct 21 13:00 CA BoC Interest Rate Decision 2.0% 2.5%
Oct 21 19:10 UK BoE's Governor King Speech
Oct 21 21:00 US ABC/Washington Post Consumer Confidence -43
Oct 21 21:45 NZ Visitor Arrivals -0.5%
Oct 21 23:30 US Treasury Secretary Paulson speaks
Oct 21 23:50 JP All Industry Activity Index (MoM) -1.7% 0.8%
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EUR/USD and GBP/USD EUR/USD and NZD/USD USD/CHF and USD/JPY AUD/USD and GBP/USD AUD/USD and EUR/USD
•
Inversely moving pairs are:
•
EUR/USD and USD/CHF GBP/USD and USD/JPY GBP/USD and USD/CHF AUD/USD and USD/CAD AUD/USD and USD/JPY
Forex market is open 24 hours a day. It provides a great opportunity for traders to trade any time of the day or at night. However, although it seems to be not very important at the beginning, the right time to trade is one of the most crucial points to be successful in trading at the forex market. So, when should one consider trading and why?
The best time to trade is when the market is the most active and therefore has the biggest volume of trades. More active currency moves will create a good chance to catch the trade and make some profit. A calm, slow market is literally wasting of time — turn off your computer and don't even bother!
What to trade, when to trade
During the 24 hours period currency pairs in Forex market experience several hours, when the volume of trades is the highest and so is the pip movement.
Below are Forex market sessions and examples of the most active currency pairs:
London/ New York sessions:
EUR/USD USD/CHF GBP/USD
Tokyo/Sydney sessions:
EUR/JPY AUD/USD USD/JPY AUD/JPY
Sydney session:
AUD/USD EUR/USD
During the week the most active Forex trading days are: Tuesday, Wednesday and Thursday. Sundays (opening) and Mondays are days when traders are mostly watching and analyzing the market and predict further price moves. Fridays are traded approximately till noon, after that all actions slow down and almost freeze before the actual market closing at 5 pm EST.
* Volume
Four easy rules to follow regarding Volume:
1. When prices are rising and volume is increasing, prices will continue to rise. The uptrend is being confirmed.
2. When prices are rising but volume is decreasing, the uptrend is losing momentum and may be near the end.
3. When prices are falling and volume is increasing, prices will continue to fall.
4. When prices are falling and volume is decreasing, the downtrend is losing momentum and may be near the end.
http://www.fxstreet.com/rates-charts/currencies-glance/pair.aspx?id=USD/JPY
http://www.forexstrategysecrets.com/blog/learning-to-trade-step-by-step-or-mistake-by-mistake/
I am guessing that we all have clicked and hoped. Then we clicked again and hoped some more. We have entered trades not knowing what we were doing, having no clue, which way the market was going, or even how to determine which way it was headed. These are frustrating times as well as costly times even if we are only trading a demo account. With a demo account we only lose our confidence, with a live account we lose our confidence and our money.
We make mistakes and don’t even know what the mistakes are. We have perfect hind site and can see exactly what would have made us a lot of money. We go through this over and over until we have blown up several demo accounts and we still do not know what we are doing wrong. This is the Mistake-By-Mistake method. This is the hard way to learn to trade. We think most of us can relate to this type of trading.
When we find a trading strategy that fits our way of trading and thinking, it just feels good. This will be different for everyone. We then will start to make progress in our trading knowledge. We see many traders go from 8 to 10 indicators back to 3 or 4 indicators. We found that less is better. It seems to be a cycle of over analyzing with many losses, then going back to more exact signals with less analyzing and more winning trades.
We go from not using stop losses back to using stop losses, from not knowing what money management is to following a solid basic money management system.
Here is a suggested Step-by-Step approach.
1. Learn a trading platform
2. Learn the currency terminology
3. Find a trading system that fits your personality (day trading, swing trading or position trading)
4. Develop a study program
5. Develop a trading plan
6. Keep a trading journal
7. Learn how to use indicators to trade the market not just price movements
8. Practice simulated, demo, visualization, then live trading
9. Learn good money management principles and use them
10. Start out slow on your live account. When you become a good trader the money will come
It is a well known fact that if you take time away from your skill, it takes a bit of concentration and practice to get back on top of your game. Professional athletes have to work hard on their skills to get back to peak levels of performance after the off season. The same thing holds true for Forex traders. It may be different amounts of time and different levels of effort to get back into trading shape but it does take time and effort.
Learning doesn’t stop once trading with real money begins. In fact, it is the exact opposite; the learning curve actually accelerates. I know of many traders that will trade with a live and a demo account in tandem. They place the same trade on each account and find themselves trading the two accounts differently.
When the demo starts to make more money than their live account it is easy for them to see what they are doing different and correct the difference. The wise traders will learn from tandem trading and those traders that should not have started trading live are still wondering what is happening to them.
Other traders say “it is no fun to demo trade” and other traders say “I don’t learn when trading a demo account”. One suggestion is to trade with a mini account and only place micro mini lots i.e. 0.01 lots. This is trading with a penny. If they do lose 100 pips they have only lost one dollar. If this is what it takes, you still need to practice. Remember perfect practice makes perfect results. Another way to practice is to use the Jump Start trading strategy. Using the Jump Start strategy you will get in and out and not expose the trading account to much risk. Use the 5 and 15 minutes time frames, and signals to get in and out of the market. Using the smaller time frames over many currency pairs you will get a lot of practice in a short amount of time.
Practice, have fun, and trade well.
You should only trade with a forex strategy that you’ve proven to yourself. One of the most important tools you need to learn how to use, even before you start trading at any level is how to use the trading platform. We offer a free forex video tutorial that shows you how to set-up and use the MT4 trading platform. There are people that open a live account, get into a trade and do not even know how to close the trade. Then they want the broker to give them their money back, and make things even for them. Once you can use the trading platform proficiently you can move on to learning the trading strategy you are looking at.
You should always practice trading to become acquainted with the indicators. When enough time has been give to simulated trading and the entry and exit signal are easily spotted then move on to demo trading. When demo trading play money is being used with live data feed and real time results. When the winning trades are happening more often than the losing trades, then consider opening a live account with real money. Use the 80-20 rule to determine the proper time to start live trading. At this point you may feel like you are a great trader but you now have to deal with your emotions. The best thing to do is start out trading with very small trades. If the amount of money you will lose on a single trade is uncomfortable to you, then you may want to lower the amount of money you have in the trade. For example: If you set your stop loss at 50 pips and you do not feel good about losing $50.00 on a one lot trade, then you could place a 0.1 lot trade which would give you a loss of only $5.00 if your stop loss is hit. If you feel comfortable with the $5.00 loss then it is ok to be in the trade.
As we all know that this month has been dedicated
as CB Internet University month - where we shall be
learning vital money making secrets on Nigeria's No. 1
Internet Profit Discussion Board.
First of all, I want to salute my Oga and Mentor -
Oluwafisayo Akinlolu (the Admin of this forum) for
introducing this media where we all can learn
different strategies for creating wealth through
the internet.
The internet has definitely come a long way
and there have been proofs upon proofs that one
can create LEGITIMATE wealth online...
In a nutshell, I will be revealing my Trading Blueprint
(my most jealously guarded secrets for trading success)
for creating unending wealth through Online Forex Trading.
Undoubtedly, the Forex market is the largest financial market in the
world with an estimated $1.9 trillion being traded every single day...
waooh that's a lot of money.
Forex trading is the buying and selling of currencies online through
a Forex broker, who serves as intermediary between the market and you.
The sole aim of trading is to make profit. The Forex market can be
compared with the Stock market where you can buy shares of a particular
company, say, Dangote Sugar Refinery at #18 and sell later at #40 for a
gain of #22 per unit. Usually, the profit margin in the Forex market is
higher than the Stock market.
Like I said earlier, in the Forex market we Buy and Sell currencies,
which are usually in pairs e.g. GBP/USD, EUR/USD, USD/JPY, USD/CHF etc.
A currency pair is purchased based on the fact that one unit
appreciates against the other e.g. Buying GBP/USD pair at 1.2040
i.e. 1GBP = 1.2040USD and Selling later at 1.2100 gives you a profit of
60pips which could amount to $60 - $6000 daily (depending on your lot sizes).
To learn more about FOREX visit:
www.mgforex.com/resource/glossary.asp_fxglossary
www.my-forex.biz
www.realtimeforex.com
www.moneytec.com
www.forexdirectory.net
www.forexpips.com
www.babypips.com
www.actionforex.com
www.mataf.net
www.forexblog.org/2007/04/top_100_forex_r.html
www.forexproject.com
www.forexontop.com
FOREX TRADING BLUEPRINT:
STEP 1: Define exactly why you want to be a trader.
STEP 2: Get your psychology right. Learn how to be a disciplined trader.
STEP 3: Define your portfolio objectives.
STEP 4: Select the currency pairs you would ultimately like to trade.
STEP 5: Affirm today: “I will find a system that fits me and I will
become the world's best trader at this ONE style of trading."
STEP 6: Back test your newly designed or newly purchased system
(including your entry, exits, and money management rules).
STEP 7: Open a mini account with any Online FOREX broker of your
choice.
STEP 8: Begin trading your newly designed or newly purchased system
and remember to follow it flawlessly.
STEP 9: Bank your trading profits.
STEP 10: If you don’t start banking profits, discover why you’ve
got a great trading system but you’re still losing.
REM: Creating wealth through the FOREX market is more of a HIGH
strategy game than a HIGH energy game. So it is important that you
seek EDUCATION that will enable you identify market trends - as well
as monitor your investment more intelligently.
http://www.forexyard.com/en/market-analysis/added_risk_fuels_usd_and_jpy_gains-2008-10-20
http://www.sharetrader.co.nz/archive/index.php?t-323.html
http://www.learncurrencytrading.com/fxforum/usd-jpy/13858-discuss-usd-jpy-dailyfx-analyst-124.html
http://easysolar.blogspot.com/2008_09_01_archive.html
http://duyduyfx.blogspot.com/search/label/Bonansa%20EA
Why using VPS?
There is disadvantage using Expert Advisor (EA)
If the power of your pc is off or internet connection disconnected, your Expert Advisor won't trade.
So if you have floating position, you''ll pray for the power is on or internet connection back to normal,
Expert Advisor can't close position while power is off, except you code the Expert Advisor to use Target Profit and Stop Loss as they are recorded in broker server. Don't forget about Stop Loss hunting by broker if you use this.
So I use VPS to overcome unstability of internet connection.
VPS is cheaper than dedicated Server and make sure the VPS you choosed is for trading forex.
Right now, I use CNS for the VPS. Its for Trader only and have maintenance when forex market is over in the weekend.
So far I'm using it until now, without having a single problem.
http://duyduyfx.blogspot.com/
