Posts Tagged ‘gain’

forex gain

I know this might sound really weird, how do I trade Forex "volatile!" market without the use of my stop loss?

As a forex trader for a few months lots now, exactly three months after having exchanged the currency market and saw the draw down and saw some trades profitable also, after applying my emotions in negotiation, used to stop the loss and the rest, I came to the conclusion that negotiating Currency effectively, you really need to minimize the use of stop loss.

Have you ever entered a trade and you're so conscious of not running your business at a loss and then trade as a result of that when your business gains some little glitches, you move quickly your stop loss to breakeven and before you realize what happens, you stop getting your stop loss with little or nothing to show for the hard work you put the time in the trade?

So, how then can you make a profit without using your stop loss?

Now this piece is not to say that you should not use your stop loss at all, but to be more profitable market currency exchange, you must reduce its use. Listed below are some things I do to ensure I make profitable trades.

1. Believe in yourself and in the negotiation you do as a business succeed. This happens whenever I'm about to take a trade.

2. Make use of leading indicators in your charts as they tell you beforehand that the trend is changing.

3. Always look at the stock prices after confirming your leading indicators, because most times they speak to us, but only one does not listen or watch and we finally get our fingers burned.

4. Use your stop loss when you need to leave temporarily your business. Remember, a shrewd businessman keeps everything in place for successful business around whether or not.

5. What is the size of your equity? I sounds like a warning always. Make sure to use the technique strict money management. This ensures an operation Long term this year, the foreign exchange market and are capable of drilling in even if at a loss.

6. The sole purpose of trading the currency market is to win, right? Wrong! Trading on the Forex market involves a real self-discovery. She begs you to look deep within to discover other who you really are. How do you trade on the market shows how you really are.

7. To be profitable ever use stop-loss, take note that the stock prices are constantly fluctuating and these fluctuations are caused by millions of merchants worldwide emotional negotiation on the foreign exchange market and the traders (including me) put their long or short trades based on emotions and news from the country currency pairs traded. So what do I mean by that?
Now, with the exception of new expectations and how positive the news came to the pair of Currency Exchange, always try to buy in the oversold area of your subject and seek to sell the overbought area of your card and you do not require not always keep your trades with a stop loss.

Need more information trading the forex market? Click HERE

I’m just a start up guy with quite a load of experience and still counting. Forex trading just got better. Learn the trade, Keep the pips.

70 Pip Gain Price Action Trading FOREX

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forex fifo rule

When I look around the various forex forums, you almost always invariably see a post from a newbie asking, “What is the best EA?” or “Which is the most profitable forex robot?”, in the vain hope that relying on a total strangers judgment will save them months of trial and error and reward them with instant riches. If only it were that simple we would all be millionaires without having to barely lift a finger. Since we are firmly entrenched in reality we know it doesn’t happen that way unless you win the lottery.

So what do you need to look for in a Forex Robot? Here are some of the characteristics to look for or avoid when you are looking to narrow down the short list of Forex Robots to buy. This is based on my own experience of testing and developing Metatrader EA’s over the last five years.

1) Avoid forex EA’s that only offer back tests as verification of their profitability. Back tests are simulations only against tick data (price data from a broker or third party source), hence they are not an accurate or true reflection of trading in actual market conditions. Delays in trade execution and slippage can severely effect the profitability of the robot. Another great danger of back testing is that it is easy to “curve fit” or over optimize the settings on the Robot to suit the available data. So what you have is a robot that has been optimized to suit historical data, rather than one that is flexible enough to adapt to current market conditions. The forex market, like all markets changes “personality” over time and hence historical data is in now way a true indication of what will transpire in future.

To sum up the back testing argument, with the benefit of hindsight it is quite simple to optimize an EA to produce a profit, unfortunately in live trading we cannot benefit from this luxury. Hence back testing is not a good indicator of the future profitability of a forex robot.

2) Look for live trading statements of actual real money accounts. ie. Not demo accounts. not only do demo account data feeds sometimes vary in price and speed they also do not give an accurate representation of the speed and accuracy of trade execution, no matter what your broker tells you, even if the price data is the same, the trade execution will vary enough to greatly effect your profitability. The longer the period of live trading statements the better, but be aware of any gaps in the statements which might indicate “cherry picking” or selective use of trading statements for a particularly successful week or month or even 3 months.

3) Be aware of the trading conditions of your chosen broker, that is, be aware of any restrictions on minimum take profits and stoplosses, as well as spreads and leverage which may effect the operation of your EA. Also recent NFA rules regarding hedging and FIFO may also effect the operation of your robot, so be aware of this if you are using an NFA registered broker.

4) Avoid forex eas or robots that rely on a take profit that it too small, or the average win is too small. ie. the difference in the average win and the average loss. If the difference between a win or a loss is too small, relatively small changes in slippage and trade execution can severely effect profitability.

5) Be aware of the type of money management (if any) is used on the forex robot. Many robots use some form of Martingale Theory, which effectively stacks lots or doubles lot sizes when a losing trade occurs. If the robot uses this form of money management there is a very real chance of over leveraging in the event of prolonged periods of drawdown.

6) Avoid Forex Robots which have a win to loss ration of greater than 80%, some might suggest 70%, but we could debate that ad nauseum. The fact is that to achieve these very high win loss ratios you must also carry floating losses or losing trades for extended periods before they may or may not realize a profit. This usually indicates that trades either do not have a stop loss present or carry an extremely wide stop loss, either of which is potentially dangerous to your trading account. Time after time I have seen these types of trading systems come unstuck after the worst case scenario happens.

By observing these 5 rules you will be able to better identify forex robots that are more likely to produce a profit over a longer period of time, but like everything in life there are no guarantees. As mentioned earlier the forex market does change personality and just because a robot has performed well for 2 years it doesn’t mean that it will continue to perform.

Brendan Wilson is an professional Forex trader with 5 years experience. Visit his website for more Forex Information, Broker and EA Reviews.

Visual FIFO Grid 1 of 2

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Forex Frontiers $48.16 Forex Frontiers

Forex Revolution $26.12 Forex Revolution

The Forex Edge $22.4 The Forex Edge

Forex Made Simple $21.61 Forex Made Simple

Rule $10 Rule

Forex Trading Using Intermarket Analysis $14.89 Forex Trading Using Intermarket Analysis