An additional ETF pair - forex trading technical strategies

An additional ETF pair ~ forex trading technical strategies

Many of you know that there are a number of dependable commodity-related ETF pairs that remain cointegrated ever since I mentioned them in 2006: IGE-EWC, IGE-EEM, IGE-EWA, EWA-EWC, etc. (Their latest zScores are available here to my books readers and to Premium Content subscribers.) A recent visit to a client in South Africa prompted me to add a new one: EWA-EZA.

It is worth noting that for those country ETF pairs that cointegrate, their underlying currency cross-rates are often stationary as well. Now, there are several advantages in trading currency cross rates instead of ETF pairs. When trading a stationary cross rate, you can enter a limit order to enter and exit, but trading pairs of ETFs involve market orders on at least one side. Also, ETFs can sometimes be hard-to-borrow, and their margin requirements are much more onerous than that of currencies. However, the one major disadvantage in trading cross rates is that they are not always available on your brokerage. For example, based on the cointegration of EWA and EZA you would think that trading AUDZAR would be quite profitable. And you would be right, theoretically, except that AUDZAR is not available for trading on Interactive Brokers. If you know of a good Forex brokerage that have many emerging markets cross-rates for trading, especially those of Latin American countries, please let the rest of us know!
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Forex Trading Financial Software an indispensible too - forex profit heaper trading system

Forex Trading Financial Software an indispensible too ~ forex profit heaper trading system

Where can I find out the latest on Forex trading financial software? Well if you already have a Forex account you would have the answer to that question. There are many different types of software in regards to the Forex.

This Forex trading financial software has the latest information and market situations so that you have the information right at your fingertips. This will make the decision that you have much more easier as it provides market analysis in order to make an informed choice.

By using the Forex trading financial software in conjunction with your account, you will have the tools and information to choose wisely as far as what you will buy and sell in regards to your foreign currency. It takes time, patience and information in order to make informed choices when you are ready to buy or sell currency.

When you make a choice with Forex trading financial software that is fully informed, you stand the chance of making a financial gain when buying or selling in the marketplace.

When choosing the Forex trading financial software that is right for your situation, you will have an edge over those who do not have that information. Also by choosing whether or not your software is mechanical or automatic can make quite the difference in jumping on the bandwagon as it happens or missing an opportunity. This depends upon the choices that you make.

When accessing Forex trading financial software, you have a choice of whether or not to buy and sell. You also have the choice of the currency that you wish to buy or sell. You also have the choice of the lot set that you wish to purchase. You also have the choice of what is to be sold when.

Custom tailored software, like the forex trading financial software is geared specifically for the forex market. They cannot be found anywhere else except in the forex market. This is because the forex market is unique over other markets.

The uniqueness is of the forex market makes this software. A very essential tool for any investors. With the guidance obtained through using the software, you will allow yourself to be better equipped for making informed decisions in a fast-growing market.

By Joel Gardner
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5 an important number for real estate investors - alligator forex trading system

5 an important number for real estate investors ~ alligator forex trading system

Equity investors like to check out a companys price/earnings ratio before they invest in its stock. Likewise, real estate investors should do the same before buying a house. The equivalent of price/earnings ratio for real estate is the price/rent ratio, or inversely, the rent/price yield.

What is a reasonable rent/price yield for US residential real estate? According to Morris Davis of the University of Wisconsin-Madison, and Andreas Lehnert and Robert Martin of the Fed, the long-term average is 5% (i.e. the annual rent of a house should be about 5% of its market value). As the Economist magazine has reported, at the height of the US housing boom, this figure dropped to as low as 3.5%.

Currently, this ratio is at about 4.3%, which implies that average US housing price has to drop another 14% in order to return to its historical fair value.

Can quantitative traders profit from this prediction? Well, we can always short the S&P/Case-Shiller Home Price Indices futures at the Chicago Mercantile Exchange.
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MATLAB as an Automated Execution System - forex trading weekly strategy

MATLAB as an Automated Execution System ~ forex trading weekly strategy

I just published an article "MATLAB as an Automated Execution System". (It is available to readers of my book and subscribers to my Premium Content website.) It comes with example MATLAB codes executing a simple Bollinger-band high-frequency E-mini trading strategy.

As I mentioned before, I now find MATLAB to be a good platform not just for backtesting, but for automated execution as well. Of course, not all brokerages have APIs that connect to MATLAB. My example codes are for submitting orders automatically to an Interactive Brokers account.

In general, I find that writing execution programs in MATLAB is a breeze compared to C++, Java or even C#. It takes about 1/5 the development time of a C++ program. Any performance limitations will probably not be due to MATLAB, but to the latency of your brokerage in updating positions and order status.
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SEVEN KEYS TO AN EFFECTIVE FOREX TRADING STRATEGIES - forex channel trading system download

SEVEN KEYS TO AN EFFECTIVE FOREX TRADING STRATEGIES ~ forex channel trading system download

Do not start trading without a proper strategy. Unless you acquire proper knowledge regarding the forex market your success maybe sporadic at best and tragic at worst! Without an effective trading strategy you are simply speculating on a market that can wipe you out in no time. If you are looking to invest in the currency markets long term then it is important to treat this as business rather than a poker game. In this article we will look at some simple forex strategies. To begin with we have to stress the fact that unless you make out the market or have in-depth knowledge about it success is not always guaranteed. 1 - You need to understand who all the players are in relation to the forex market including the banks, bankers, the brokers and every other thing in relation with forex. Its important to figure out who does what and how they will impact your trading efforts. 2 - You have to be acquainted with the language of trading and know what things like pips, volume, buying or selling, going long or shorting means. 3 - Also become familiar with the terms Technical and Fundamental which are the two most popular means of analyzing charts. Smaller or private traders tend to prefer technical analysis methods for their trading strategy. This means that they examine price structure and trends. On the other hand institutional investors tend to trust the fundamental examination method more. 4 - The choice of forex strategy is driven by the traders personality and the class of trader he is. So you have to identify the type of dealer you are and based on that you can select a strategy that you feel most comfortable with. A lot of this is to do with your appetite for risk and reward. 5 - A good forex strategy must at reducing your losses. Always try to deal in a higher volume of transactions rather than depending on any single transaction of a huge size. Waiting for the big one could wipe out your profits before you even get started. 6 - You must learn how to keep your finances under control and keep yourself focused and disciplined. This is very important because most people tend to leave this business very quickly as the rate of failure is quite high in forex trading. 7 - Once you have identified and selected a strategy, its now time to put things into practice. Start with paper dealing through brokers who allow such practice and this will let you gain good experience of the trade and your strategy without burning any of your capital. Bonus tip - Make sure that you find a reputable and trustworthy broker so that your trading is executed safely. Following these simple tips in selecting a forex trading strategy will make sure that you get off to a flying start in your forex career.
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An update on why quantitative funds are losing money recently - best forex trading system ever

An update on why quantitative funds are losing money recently ~ best forex trading system ever

A story just came through Dow Jones newswire ("How Black Boxes Became Pandoras Boxes" by Spencer Jakab) suggesting that recent losses are due to factor models gone bad. Given my expressed distaste for such models, that should have been my first guess instead of blaming the "exotic" models!
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An Easy Forex Strategy For New Traders - forex gain code trading system

An Easy Forex Strategy For New Traders ~ forex gain code trading system

Are you a relatively new trader looking for a solid forex strategy?

A challenge facing many new traders when developing their forex strategy is the ability to identify the overall trend for intra-day trading.

The 200 EMA (Exponential Moving Average) can solve the problem.

The 200 EMA is one of the most popular indicators of all time with Forex traders the world over, and for that reason alone is worth noting due to the psychological effect on the market place price can have when hovering around the 200 EMA.

How To Use The 200 EMA

Start using this effective Forex strategy by setting up charts on three different time frames:

A 4 hour chart

A 1 hour chart

15 minute

Now add the 200 EMA indicator to each chart for the 3 time frames. You could color it red or whatever you prefer to make it stand out.

One suggestion is to use the vertical tile feature and have the 3 charts vertically side by side so you can easily eyeball the position of price relative to the 200 EMA. The candles may appear a little distorted but that really doesnt affect your strategy.

Now scroll through the various currency pairs you like to trade.

If you prefer to trade only pairs with a smaller pip spread, they amount to about 9.

Here they are:

EUR/USD | GBP/USD | USD/CHF | USD/JPY | EUR/JPY | USD/CAD | AUD/USD | NZD/USD | EUR/CHF

What you are looking for is any currency pair that bucks the 200 EMA on the 15 minute chart.

So for example, look at the EUR/USD pair and note the position of price relative to the 200 EMA on the 3 time frames.

If price is well above the 200 EMA on the 4 hour chart, well above the 200 EMA on the 1 hour chart, but BELOW the 200 EMA on the 15 minute chart, price is bucking the trend.

So the main trend is going up while price is now in retracement, temporarily going against the overall trend.

You now need to look for a good entry point to get into the market in line with the basic principle of buying the dips in an up trend while selling the rallies in a down trend.

In the example given above you would look for an opportunity to buy the EUR/USD, perhaps watching for a candle signal that price has exhausted its downward momentum, bucking the 15 minute chart 200 EMA and will soon resume its upward momentum.

This simple exercise only takes a few minutes and can be done a few times during the day.

Look Out For Price Going Against The Trend

Sit up, take note, when you see price going beyond the 200 EMA on the smaller time frame, the 15 minute chart, while on the larger time frames, 4 hour and 1 hour, it is well beyond the 200 EMA in the opposite direction. Seize the change to make a high probability trade and bank some profits.

See for yourself how effective this simple Forex strategy is. Practice it for a short time and then, once convinced, add it to your Forex trading tool kit.

By Michael Jones
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