What you need to know about Forex EA – they burrow!

Everyone knows that forex experts are a new “hot” thing in foreign exchange trading. For those who don’t know what Forex EA is, it stands for Forex Expert Advisor. In essence, it is a trading robot. Developer EA creates a trading system with lagging metrics such as stochastics and moving averages, and creates code that your trading platform uses to trade when you’re not around. So basically he can trade for you while you sleep, work, take a shower, etc … Seems incredible? Well, there is one tiny thing you need to know about them. Most fail.

Don’t believe me? This is great. Just browse almost all forex forums online today. You will get a filling of forex experts. They are everywhere. Once you’ve spent 4 or 5 months demonstrating and crashing your account with them, you may want to spend your time a little more carefully.

Successful Forex EA is in many ways similar to the Holy Grail of trading. You hear a lot about it, but never see it, right? There is a good reason for this: the robot cannot trade for you.

I’ve learned this not easily (as I’m sure many do). We all want an easy way out. But simple logic tells you that a robot cannot intuitively respond to market news. This is not how a robot can hear what the federal government is saying about the state of inflation. What’s more, the robot doesn’t know how to trade rhetoric.

The irony is that if I spent time on what wasted my search for the Holy Grail and spent it on how the market moves, I would have been successful much sooner.

Why you should walk with too little Stop-Loss

In the past, I met a lot of traders, the live results were completely different from the back test results. The cause was apparently futility – too little stop-loss. I’ll explain to you today why this can be a problem, what it should be, and how to avoid that risk. The next topic is about these strategies that are using the STOP order to open a position and at the same time are using too little stop-loss (this article is not about strategies that use the market order). What is too low a stop-loss? Well, it depends on the market and time. But in general, our average time frame is smaller than the size of an average bar. I will give you an example. If we are using an average 30 minute chart of $ 250 and stopping our $ 80 loss strategy, we are going to get into serious trouble. The live trading results (and in most cases will almost certainly be) can be very different from the ones we have from the completely back test. Let’s see why.

This problem occurs when the stop loss is so small that some trades have the same order of entry and stop loss in the same bar. Suppose we have a STOP order at price 100 as well as a stop loss of 99. Now, imagine that the bar opens at 98.7, goes to 100.1 and we open a long position – and the stop-loss is set to 99. And all of this happens on the same bar – that is, inside this bar, the input order is activated, the position is opened, and the stop loss is set.

It is now important to understand why this can be a dangerous problem. It’s very simple. There are many retrospective analysis platforms that are not able to detect whether the data is incorrectly configured or the data resolution is not adequate enough if the loss is stopped or not. In other words, there are certain situations where the stop-loss actually opens the position and occurs immediately after the entry order is activated because the market starts to move south. However, our back-testing platform is considered profitable trading (from now on I will write about TradeStation because it is mainly the platform I use). How is that possible?

Let’s continue with the demonstration of the situation described above. In this situation we can see a rising bar, which is a price close above the open price and at the same time close to the highest close. It is assumed that the bar was rising all the time and TradeStation assumes that the “inner” movement of the bar, i.e. the way the bar was created, was constantly rising, in a straight line.

TradeStation follows the logic, which is that when the high bar was closed the process of creating that bar was on the rise. In this situation, TradeStation assumes that the bar opened at 98.7 and the price steadily rose to 100.4. In the meantime, he activated our order for over $ 100.

However, the hypothesis is very vague and dangerous. What if the bar went up for the first time, our buy order was activated, but then it reversed and fell again, below our stop loss, and then began to rise again to approach the highest?

It’s a completely realistic scenario that happens every day, which would result in a clear loss (as soon as the position is opened) – and yet it is defined as if TradeStation (and possibly other software as well) doesn’t define the situation. any correction within the bar. So no stagnant loss has occurred and the trade has been profitable. This is the cause of serious problems. The back test clearly shows a lot of profitable trading, which would really be a loss, and this strategy starts trading directly and then everything starts to fall apart …

1. protection

Fortunately, the situation is not as serious as it looks and the platforms behind the study generally take this risk into account.

The first protection against this threat is simple and effective on a certain level. TradeStation calls it LIBB (Look-Inside-Bar-Backtesting), while others call it different names, such as Bar Magnifier. The fact is that when activating this function the program looks inside the bar to the level of the best available data resolution (in most cases it is 1 minute), if there is no internal correction after activating the input command. , or if there has been a correction in the same bar when we have entered and hit the stop-loss.

While this may seem like a great solution (it’s now the standard part of most platforms), it shouldn’t be enough when it comes to small losses. Why? Imagine your state loss when it is 80 USD, but the average bar for your best LIBB resolution (i.e. especially 1 minute) is 150 USD. In this case you are having the same problem described above, when the platform cannot determine whether or not the loss has stopped inside the bar, and again, only the inaccurate approaches driven by the previous ones are made. if the closed logic bar closes closer to the lower or closer to the highest. In other words, you’re back at the beginning and with too little loss, LIBB won’t help you either and the problem continues.

2. protection

So we’re getting to the point where we need to dig a little deeper to solve this problem. One solution would be to use an even finer data resolution – up to the markup level. But this is not as easy as it seems. First, the history of tick data is not so easily retrieved, or in a very short period of time. And if that data is available, it’s really expensive. But if you still buy tick data, you have to fix a number of technical issues – since tick data tends to be very large, most platforms won’t handle so much data, crashes or back tests are incredibly slow (I can confirm).

3. protection

So we need to use a much easier solution – and that’s a pretty big stop-loss to use. And what is a relatively large stop-loss? Simply use a stop-loss that is 1.5-2 times greater than the largest one-minute bar on your board. It’s simple and you can avoid many problems. For example, if the largest one-minute bar in your data history is $ 300, use a stop-loss of at least $ 450. Time. It’s easier and safer to get used to bigger stop losses than to lie to ourselves and then wonder why a nice backtest equity is against the results of live trading.

Happy trading!

RSI Paint Indicator looks for divergences and reversals for Forex traders

If you have been in Forex trading for a very long time, you can read about divergences. Divergences are important because they tell the trader that there has been some change in price and momentum and that the price is moving against the trend. But if you do more research, you will see that there are also reversals. The reversals are important because they tell the trader that the price and speed have started to accumulate in order to deal with the trend. Here you will learn about both and how you can automatically track the currency pairs of your choice and at any time frame using RSI Paint Indicator.

Divergence

Here is the definition of a bullish change from a leading Forex website: If the price is low then the pendulum is making a higher low, this is considered a bullish deviation. And a bearish deviation: if the price makes it higher then the pendulum is lower then your bearish deviation occurs. Divergences are located in price and momentum performance and RSI, a top indicator.

These two divergences are best used when a current trend is reversing although many books will tell you that they are signals for a trend reversal. These traders have researched extensive statistics on bullish and bearish reversals and found that divergences do not indicate a trend reversal in most cases. This is a decision shared by many top RSI traders; Cardwell, Hayden, Bynes, Brown and others.

The opposite

Now, that’s only half of the story. There are two other signals similar to reverse divergences. Conversely tell a trader that the momentum has turned in favor of the trend. This is a much better way of doing business because there is market strength behind continuing a trend then a retracement which means more pips and more profit. Reverse is the key to a successful business. Statistically they are much more productive in terms of profit per trade.

RSI Paint Index

Divergences and reversals can be drawn manually but it is tedious and for learning it further lengthens the learning curve. The RSI Paint Index is an index that takes a national basic index used in a charting package and “paints” all the deviations and contrasts in the RSI chart in four separate and distinct characters.

Once the trader sees the actual deviations and reversals in the chart, he can start using how he can take advantage of the change of momentum in the market. Currently RSI Paint Index works on MT4 (Metradar) which is the most popular trading platform offered by many brokers in the Forex market.

Forex traders can automatically detect dynamic changes in multiple currency charts by learning how to track divergences and reversals and then decide which one to trade. Every time there is a deviation or reversal in a chart and a warning is sent to a computer, email or cell phone depending on the trader’s choice.

These unique trading signals are used by many expert markets for trading because they are mathematically located on the chart and cannot be interpreted. This means they are purposeful. Read e-book, RSI Fundamentals to know more about RSI; Starting from advanced.

After the swing trend

There is a strong reason for writing so many articles “on trend” about trade. The reason for this may be the most important thing you can do to put the odds in your favor when it comes to trading success.

Still, many traders forget this trading wisdom or do not think it is important. Thus, most traders fail.

One of the biggest complaints I’ve read about “trading with Trend” is that it’s all relative. That is right! It depends on several factors, such as the time frame of the table you are analyzing, the time frame you want to trade, and what you do (the method) to determine the trend.

Some argued that the definition of a trend was “subjective.” This is not true.

The definition of a trend is very clear and objective.

It is the “Bull” trend that you have higher swing bottoms. The “bear” trend is where you have lowered tops and bottoms.

So the only thing left here is to explain what the ‘swing’ is at the bottom or top.

In its simplest terms, a “swing” simply refers to a change in direction of a turning line. If the swing line moving from the new bottom to the new bottom is moved to the new peak, the last upside-down is considered the “bottom of the swing”. If the swing line moving from a new height to a new height is moved to a new descent, the final height is considered the “swing peak”.

The rules of movement of the swing line are simple. You must first decide whether it will be 1 bar, 2 bar or 3 bar based. A 1-bar swing represents more short-term swings, where bars 2 and 3 are used for longer swings that occur less than 1 bar.

So let’s say we want to isolate 1-bar swings. Start at the bottom or top of any significant market. In this example, we will start from a basic bottom.

Now, when a price bar is formed higher than the previous price bar, we call it a higher bar. Draw the swing line from the main bottom to a new high level. Now you will raise the line to that new highest level for each height that is higher than the height at which the line sits. However, if a price bar comes down from the previous bar, the line should go down from the last highest. For each downturn that occurs below the current low of the line, the rounded line moves up and down again until the price bar reaches a higher level again and the line ‘swings’ to this point. .

When the line rises to a new height, each bar in the bottom row is called the “bottom of the turn”. When the line descends to a new low, each bar in height is called a “swing”.

There will be times when the bar will be both higher and lower. These are called “outside” rods. To deal with them, we must first determine which day of trading occurred; new low-low or new high-high.

If at the beginning of the day it first formed the lower part, before closing it formed the higher-upper part, the line should be moved first down and then to the highest level of the outer bar. If not, move the line accordingly. However, this method will not apply to a 2 bar or 3 bar swinging approach.

By comparing these swinging tops and bottoms with previous peaks and bottoms, we can determine the trend for any given period of time. If we see a number of higher swing bottoms, the trend is “bullish”. If we see a series of low swing tops and lowered bottoms, this is a “bear”. It is possible that a swinging bottom is formed lower than before in a bull trend and is still considered a bullish trend. However, if it occurs below the last two, the trend has changed a lot. The opposite is true for bear trends. If the top of one swing is higher than the last, if not the last two, it can still be a bear trend. However, if it occurs higher than the previous two figures, the trend may change.

The rules for 2-bar and 3-bar swings require only a small adjustment. Instead of descending each new up or moving down each new, you must reach 2 (for 2 bars) or 3 (for 3 bars) before advancing the turn line.

Thus, if it starts from one bottom, the line will only move to the highest peak after the second highest level. Then, with a 2-form count, each new one would rise to the highest level, as long as it was not below any low. If the swing line moves upwards when it is formed upside down, it is equal to 1. After that, if a new one is formed higher (higher than the height at which the line sits), the line rises to that new height. and the down-count is reset again. However, if a new sub-row is formed that forms the number 2, and the line is reset from top to bottom, bottom to bottom, and top to bottom, unless it is higher-high (where the line sits). zero. The line then moves downwards with each new low, pulling the line back up to a higher number of levels of 2.

WD Gann called it the Trend-Line Indicator to identify the trend objectively.

When trading with Trend, you can use these swings as price points to adjust the rear stops. If a bullish trend continues LONG, each new uptrend is a price level that can be moved immediately below a stop-loss to protect accumulated profits. In a bearish trend, QISA presents a price level at which a stop-loss can be moved from the top to the bottom of each swing.

Price provides the highest success rate as it tends to move in the direction of the trend rather than counter-trend movements. In addition to a simple stop-loss strategy, you already have a simple method to determine the trend. Use only or other methods you deem useful.

Basics of E-Mini Trading Support and Resistance

Support and resistance (SAR) is generally considered to be one of the foundations of technical analysis. In my personal trade, I give it the highest level of analysis at the SAR level, as most of the very good professions I have performed are created by judging the market price direction at the SAR level. Of course, all of this may sound good, but determining these significant price levels and determining their importance, compared to other SAR lines, are really meat and potatoes for learning to trade mini electronics. Let me ask you this; how to know which lines are the most important and which can be discarded? I will try to help you with this decision throughout this short article.

One of the truest statements that any trader has dared to make is based on an idea that if you draw enough lines on a chart, it is imperative to stop price action on a certain line. The idea is to identify useful lines and avoid spurious signals generated by market noise. Market noise is the basic function of the exchange, as non-professional traders enter and exit at random intervals. Note: I recommend a good understanding of the random and market price movement. This is a topic that negotiation educators generally exclude.

Let’s get a viable definition of support and resistance: the price movement of an e-mini contract is likely to stop, reverse, or cross pre-determined price levels. These levels make stops and returns at a pre-determined price. I am a reactive vendor because I do not use support and resistance lines derived from SAR predictive tools; Murray math lines, floor traders pivots, any calculated pivot lines or levels generated by the Market profile. I like to create my lines during daily negotiation so that I can determine how, when and why these lines are formed and the reason for their creation. I have real confidence at the price level that I can actually see the SAR form, and I can better understand why it was created at some point.

After marking the table with SAR, assign the first importance to each line. It gives me the highest priority to identify a significant increase in volume, previous closures, daily highs and lows, and night highs and lows. You will need to identify which lines are most important to your trading style; these examples are fundamental to my personal trading style.

I hope I have shed some light on this issue for new traders. Aid and resistance must be part of an effective trading plan.

Why is Forex Trading with Stochastics Harder Than It Seems?

When people first learn about trading in stochastics, it seems so ridiculously simple. We are all taught that there are several ways to trade stochastics. The most commonly taught methods are usually to buy when the lines cross more than 20 or the stochastic lines intersect in an upward direction. You should sell when the lines fall below 80 or when the lines intersect. Of course, stochastics have other trading methods, but these are the most common methods.

Can’t a child do that? Just when you trade x happens. When learning the rules of trading stochastics, most people immediately draw a table to retest the strategy. It’s like doing a homework test when you test the strategy back. When you see the lines intersect or go below 20 or 80, you almost look like a winner, don’t you? What is it called? false advertising. You do not have to accept my word for this. You can trade stochastics using these methods to see for yourself.

What you will notice is that the lines cross more than 20 or under 80 times more than you see in the back test. Here’s what you don’t see: All the periods when the lines go a little bit, and then all the lines above 80 or 20 go back to go back. This is the problem with indicators like stochastics. They are do not be late. They are delay is a great time.

You have to think about it logically. 95% of Forex traders can’t make money. If something as simple as trading stocks can make you successful, why do so many people fail? Just because statistics don’t tell you anything about market prices and market movements. Do yourself a favor and just eliminate it all indicators try to see this in your schedule as seen by the pros (5% of people who make money). They can look at something like a simple bar chart and read the energy of the market.

Signals for Forex Trading – What are the different types of EA signals offered?

Automated examinations

These types of consultants are installed on your trading platform. While they can offer trading and possible profits on autopilot, with no real work other than installation on your part, most experts of this type do force you to give up control of your own trading account. They have become very popular in recent years, especially among traders looking to make a quick profit in the market. Another aspect that attracts new traders is the relatively low minimum amount you can trade with automated mode. Most offer to trade with just $ 25 to begin with.

Daily live friendship in trade

Some companies offer a membership that allows you to tune in to a daily trade or workshop. This real-time trading experience is led by expert traders who show you their trades in real time, so all you have to do is follow their example. Some advantages of this type of trading: choice, make a deal or not, full control over your account, expert advice and analysis, the ability to interact with an expert trader. Several disadvantages are that you have to trade the currency pair on which the expert trades when attending the workshop to closely monitor the trade, and sometimes you have to use a broker that the expert trader approves.

Forex Trading Signals

Many companies offer trading signals that notify you when you need to buy or sell a particular currency pair, and provide a membership area with charts and graphs that show turning points for trading. Making more pips in this way has become very common. The disadvantage of this type of expert is that choosing the exact one can be difficult, although by finding a quality Forex signal service, it can become a virtual gold mine.

How to make money without day trading "Raising a finger" – Take care of trading software

Everyone wants to negotiate money, but many people don’t know how to do it consistently. Making money on the stock market can be a challenge. With all the price movements going on, there is a lot of chance of winning. However, there is also risk where there is potential. Therefore, it is essential to have a proven system that will guide you through the ups and downs of the market.

There are many systems that claim to be able to help with negotiation. However, most of them are theories and they don’t take you by the hand and do the work for you. Most systems still leave it up to you to make buying and selling decisions. While these systems may work for some people, not everyone can interpret the instructions. The automatic system can be used here. Trading software for this application can be very effective.

What is trading software and how can it help you? Trading software automates all tasks that are not pleasant to trade. A lot of people don’t like to sit in front of a computer screen all day and look at stock charts. It can be very tiring and the results will diminish over time. Through trading software, it will analyze the charts for you and determine when a profitable model is emerging.

Once you have specified a pattern, the trading software will warn you to trade. It will tell you the name of the stock and the exact point you should enter. After the trade has completed its route, it will also tell you when to exit. The great thing about this type of software is that it can be very accurate. In fact, he may be more intelligent because he has the ability to learn from mistakes.

The great thing about trading software is that you can make money without lifting a finger. You just have to turn on the software and let it do its job. You see your account open, trade, and your account balance grow. Wouldn’t it be really nice to have that kind of hand investment? You don’t have to learn everything to know the stocks and the market. You learn enough to get the software going and the rest does.

One of the most popular trading software is the Day Trading Robot. He can do all the dirty work for you. It will allow you to automate your ability to trade and make money. If you want to make money from day trading, it’s probably a good idea to include something like this in your wallet.

Imagine being able to make money without being an expert on the stock market. The potential is endless.

A good forex trading system that works really well

What is the function of Forex trading system

Learn the latest trends and methods associated with the Forex trading system and look for all the updated information associated with it in order to earn high profits. This will allow you to change the way you think about your business.

Browse the internet and grab loaded e-books with the hard forex strategies that banks and financial institutions use for this trade. You will find that it is easy to understand, easy to use and when used properly you will get the best return for your investment. Learning a forex trading system from some truly available materials is not effective without a robot.

Get information on the internet

Choosing a good forex trading system is not an easy task. In this trade the features of each system need to be explored. Check them out on the Internet and browse through the pages, study and analyze the information provided. For the convenience of investors, only experienced people give these updates, trends, charts.

Tips for a beginner

If you are a newbie to this forex trading business and want to take possession of it, it is important not to pay too much attention to finding the right strategy. What is important is a good online training where the advisor teaches you the right things to be a good forex investor.

Updates on the Forex trading system

If you want to get involved in this trade, there is a lot of help and support available to get you started with the Forex trading system. Spend some time studying the technical setups of this trade. Check your own risk profile because profits may not be earned all of a sudden. All you need is the skill to trade the tips from your experienced advisor with confidence. There are tools available to show you when and how to enter the business. These tools are in the form of audio, mobile alerts and electronic mail.

3 Minutes Emin Trading System Review

There are many traders who spend full time buying and selling Emini Futures contracts, such as S&P, DOW, NASDAQ and Russell Eminis. Eminis are mini versions of standard futures contracts on these popular stock indices. There is a lower margin requirement, which makes them more affordable for investors and traders when they are very small.

The futures market is a highly regulated market, unlike the unregulated and decentralized Forex market. Futures markets are huge. There are dozens of markets where you can trade futures. Exchange index futures trading is a way to profit from volatility in the stock market. Instead of betting on just one part, when you trade on stock indexes, you are betting on the direction of the stock market as a whole.

Eminey futures are traded electronically around the clock, five days a week. This means that you can get these contracts at any time of the day that suits you. However, you need a trading system to trade these futures contracts. The development of a trading system requires a lot of trading experience. It takes both time and a lot of testing, something that is not possible for a new trader or even an intermediary trader. Where can I get a good Emin system?

The best approach is to borrow or buy a proven and tested Emin system. However, most trading systems are expensive and cost between $ 1,000 and $ 3,000. The 3 Minute Emin Trading System is an inexpensive system and it is good that it only takes 3 minutes per day to trade. Do you think it is possible to trade confidently for only 3 minutes every day?

Yes, it is! This 3 Minute Emini Trading System uses a series of repetitive patterns where you can trade only 3 minutes every day in the Emin market. There is no need for daily trading in this system. Does not use expensive software or expensive data tapes. How this system works:

1. You will access an online data source and look at the graph

2. You will then compare that chart to a chart of trading strategies

3. If you find a high probability of trading, you will enter the trade.

And that’s it. It only takes 3 minutes to do this. Regardless, the 3 Minute Secure Trading System comes with an unanswered question about the 60-day return guarantee. All you can do is trade paper using this system and see if the sure trade actually takes 3 minutes. Otherwise, just apply for a refund. Good luck!