Forex Intraday Trading Strategies What Forex Brokers Dont Want You To Know - gann forex trading system

Forex Intraday Trading Strategies What Forex Brokers Dont Want You To Know ~ gann forex trading system

If you are an intraday trader Forex, I want to let you in on a little secret ... you are your favorite dealer to customers. It is a well known fact among Forex brokers that trade in typical intraday trading strategies Forex very often, increase profits you pay differentials. You will be surprised to know that if you use one of the many trading strategies Forex Scalping there intraday, your broker can make even more benefits they are!

If its any consolation, youre not alone, unknowingly make your broker rich. There are literally hundreds of thousands of people out there using Intraday Forex trading strategies that are designed to make your broker rich. The good news is, it is a way to get the benefits from your broker right now, just to go against the conventional wisdom of the crowd. At the end of this article you aware of this little-known Forex day trading strategy that will make you more benefits than has never done, just by exchanging 10 minutes a day.


Most Forex intraday trading strategies revolve around the resale market for a few glitches here and there throughout the day. Intraday Scalping Forex strategies are apparently fine at first, because they have a very high probability of making the chain of successful operations. If you really think about it, though, because youre so pick a profit a few pips at a time, while a great loss to open as wide as it hits your stop loss, which have a very good chance of throwing your advantage a week or even months with only a bad loss.

Forex brokers do not want you to know is that there is another form of trade which is much more profitable than most strategies scalping Forex intraday trading. Called Forex breakout trading, and allows you to use much less often and make more profits, all at once! Consider this: Most people are happy to accept small gains each time to the emotional rewards of being right most of the time, with a lot to do with their own emotional needs erroneous and nothing to do with the profitable business in the long term. For the truth above the crowd and reach a level of operating income in the amount of talking, of course, you forget what everyone is doing and even go against them using commercially starting currency.

Boot Forex trading underlines that most Forex trading strategies intraday fall flat, because instead of being killed by the great movements during periods of volatility, Forex trading break allows you to make a killing on these movements spot! Not only the Forex trade more selective rupture and more profitable, more importantly, does not take big risks to make frequent small profits. Instead, pointing to a risk reward ratio of 1: 1, with an accuracy of 60-70% for consistent profits, stable and gives peace of mind to sleep well at night. Business start-change is not new at all, but barely heard because you hate Forex trader you will trade less with this Forex trading strategy intraday.

One of the best starting intraday trading strategy forex trading I found Forex is called Forex Trading applies the morning, and as its name indicates trades once a day. Forex Morning Trade is very low maintenance as well: you can manually change for only 10 minutes a day, or you can use the fully automated version that will do all the trading for you. I personally use Forex Trading morning and in the last six months, I averaged 300 pips a month trading profit. My agent received a blow to extend the benefits of since I started using it, but hey, Im in this to get rich and not rich for my agent. So if you are looking for a Forex trading strategy intraday tried to apply Forex trading successfully escape, then its time to get Forex Trading morning and start making serious money for yourself.
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Forex strategies and how to trade forex profitably - trading forex correlation system

Forex strategies and how to trade forex profitably ~ trading forex correlation system

Forex trading is the business of selling and buying international currencies against one another, for example buying the Euro at 1.36 US Dollars, then selling it back at 1.37, buying low, selling high and making a profit. To trade fx and make a profit you should find a few of the many Forex strategies, that traders use to trade fx. The main issue with these Forex strategies is finding one that works, and one that you can learn and cope with.

Although there are a number of profitable strategies available, none of them can trade and win every single trade, no fx strategyis one hundred percent successful and you should not expect them to be. To trade successfully is to simply win more trades than you lose, or to profit from your winning trades to a larger extent than your losing trades do. This is known as your risk/reward ratio and varies between each strategy.

Some Forex strategieswill use the principal of winning a high percentage of the trades, but each trade is only profitable by a small amount, or a few pips as it is referred to. These Forex strategies are known as scalping methods, and the principal is that, you will win most trades as you are looking to take small quick profits. The problem with these Forex strategies is that you must control your loses, otherwise you may cancel out ten winning trades with one losing one, that is not a good way to trade fx.

Other strategies, will take the opposite approach to the risk reward ratio. Trading Forex in this manner means looking to make large amount of pips on a winning trade, and using small stop loses, and only losing a few pips on the losing trades. Using these types of strategies, means you can trade profitably by winning less than half of the trades, depending on the ration, you may only need to win twenty percent of your trades to trade fx and turn a profit.

Whichever way you decide to trade Forex, whichever of these Forex strategies you use, it is still going to take time, patience, and dedication to master the art form that is trading. To trade Forex is not a science, it is not gambling either, but can feel like it, so keeping control of your emotions is a common problem that must be overcome to trade Forex successfully.

If you are just starting to learn how to trade Forex, then there is a lot of information on the internet describing peoples different Forex strategies. Some advice is free and freely available, some people will sell you their Forex strategies so you learn hot to trade Forex, the same way they do. It is difficult to say which is best, there are some golden rules on how to trade Forex, but no guarantees, it is an art form in many ways, and some people say that to trade Forex well, you must adapt your own style of Forex strategies, just is suitable to your personality.

So if you are going to trade Forex, take your time and do your due diligence. Research as many Forex strategies as possible, and take your time with demo accounts to practice with, before using real money.

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Forex price Action Strategies - forex trading system course

Forex price Action Strategies ~ forex trading system course

Whenever you want to trade the forex market it is very vital that you know what strategy you are going to use before you start trading with a real account. When you trade the forex market with price action strategies, it can be a very efficient way to make your trading decisions. Once you know how forex price action works, you will be able to accurately read a naked price chart. When you have the knowledge to read an indicator free chart, it will also give you the enablement to read price charts in any financial market, not just forex.

When you use price action only setups to trade the currency market, you will be basing all of your trading decisions off of a simple and clear trading mindset because the simplicity of such setups will permeate throughout all of your trading activities. Many armatures and professional forex traders alike get caught up with trying to trade complicated trading systems that seem to be efficient on the surface but in the end bring nothing but losses. If you are know this fact before you go deep into forex trading, you can trade cautiously in other not to fall into this common trap of trying to use complicated trading systems by using a simple yet very efficient trading strategy like forex price action only trading.

Price action forex trading will give you trade set ups that have high probability that can enable you time your entries into the market more accurately than the most lagging indicator methods. This is because you are getting the trade setups as they come up instead of trying to use some indicator to backtest the  past price movement. Many of the forex price action trading setups that various price action tutors teach are simple 1, 2, or 3 bar setups that can be entered immediately after the price bar closes out. This means you have the ability to enter the market as close to a turning point as possible, granted there is some discretion involved and any trading strategy will always experience losing trades including price only trading; however, once you become a professional forex price only trader, there really is no more accurate trading strategy in existence.

To use forex price action trading effectively on an on-going basis it is a good idea to employ the services of a trading mentor you may know. The aspect of price action forex trading is a kind of trading system that is easy to learn from someone who has already a master in it, otherwise you will have to endure a long period of trial and error. If you hold on to simple yet efficient forex trading strategies like forex price action trading, you will have an excellent chance at experiencing a much more profitable career as a forex trader now and in the future.

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Online Forex Trading Strategies - g7 forex trading system

Online Forex Trading Strategies ~ g7 forex trading system

Forex is one of the fundraising activities that everyone can enter. Many people, for some time, even solid or highly skilled riders have won many benefits of currency trading. And with the intensive use of information technology, more and more people find it easier to try their hand at forex trading.



Forex trading online only requires you to have Internet access and some seed money to buy currency. Your initial investment must not be too large. A small amount, if invested wisely, can go a long way. To be more successful in this business, you may also need to be updated in the fluctuations of the exchange rates of various currencies. Fortunately, Forex charts are freely available on almost all forms of media. Trading is followed by the major news agencies and often flashes this data as running headlines for their emissions. Currency chart yesterday, and projections for the day printed in the financial section of the daily newspapers. And of course, you can also find or acquire forex charts aware of the ISP.

For the first time forex traders online, it is recommended to start focusing on some currency first before venturing to maintain a portfolio of several more complex currencies. Some traders and brokers are willing to help define the neophytes, offering free consulting services and use their forex charts. There are also forex software available to assist in the rapid calculation of gains and losses precise trends and projection.

Forex trading online is also more convenient to broaden their experience and network in the Forex market form. Through the Internet, you can follow the currency markets in the world as open in real time.
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Momentum strategies in futures and forex - forex strategy trader software

Momentum strategies in futures and forex ~ forex strategy trader software

I have long found that it is easier to find good (i.e. high Sharpe ratio) mean-reverting strategies than good momentum strategies. Partly, that is because I was mainly a stock trader instead of a futures/currencies trader, and individual stocks mean-revert most of the time. There are exceptions, such as after special corporate events such as earnings announcements, and I have tested momentum strategies based on these events. But the success of even these event-driven strategies has been uneven, especially since more traders become aware of them.

Now that I am focusing more on trading futures and currencies, I have gradually been introduced to the world of momentum investing. There is a good book in this area that deserves to be better known: Joe Duffys The Ultimate Trading Robot, which is an almost step-by-step guide to constructing futures trending strategies that rely on prices alone. Another example would be the London Breakout strategy mentioned by our reader Bernd in the comments here. After studying these examples, I realized why my previous, rather desultory, search for momentum strategies in the futures and FX markets had been in vain: the overnight gap in these markets seems critical. For futures, the overnight gap is obvious, but in the case of the London Breakout strategy, for example, the trader has the task defining for herself what the optimal closing and opening times are in order to compute the gap. Intraday trend without an overnight breakout does not seem persistent enough to be traded profitably. I also wonder if there is a more elegant (i.e. mathematical) way to quantify such breakout phenomena without using the traditional technical indicators.

If you know of ideas for good momentum strategies, you are most welcome to share and discuss them here!
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ACCURATE EXIT STRATEGIES PROVIDE GAINS AHEAD OF SHARP REVERSALS - martingale forex trading system

ACCURATE EXIT STRATEGIES PROVIDE GAINS AHEAD OF SHARP REVERSALS ~ martingale forex trading system

Last month, the EURO JPY and CHF JPY pairs broke their respective Consolidation Setups on their Daily Charts to start downtrends in favour of the Japanese Yen. This was expected to provide several hundreds of Pips in gains for traders over several weeks given the size of the Consolidations that were broken. However, although the CHF JPY did move by over 200 Pips (providing us with a 101-Pip gain), the EURO JPY only provided us with just under 50 Pips in profits before pulling back. 

Nevertheless, despite the combined profitability of these trades being lower than expected, the sharp 400-Pip reversals that took place highlighted the accuracy of the Holding Periods used for these Swing Trading Strategies.

EURO JPY TRADE

A target of 172 Pips was initially set to be captured from the Pennant breakout below its Support boundary. However, due partly to the lack of market activity during the Thanksgiving holiday period, the trade was only up by 47 Pips at the end of the Holding Period - smaller than expected but a win nevertheless.

DAILY CHART

(FXCM Charts used for Entry Signals as they use the New York Close of the Daily Candle - crucial for the Price Action Methodology)


DAILY CHART

(Actual Trades done using the Dukascopy Platform)

The decision to exit this trade was controlled by the Holding Period Rule for this breakout strategy. As you can see from the Trade Sheet, a maximum of 7 Days is used for these trades and once this limit has been reached, the trade is closed - regardless of the floating profit or what we would have wanted from the trade.

TRADE SHEET

(Trading Manual - "Successful Forex Trading With the Daily and 4 Hour Time Frames".
Available at www.drfxswingtrading.com)

CHF JPY TRADE

This was a similar trade that took place during the same period as the EURO JPY breakout. A Pennant Setup was also being broken at Support following a pullback that tested then U-Turned at this boundary. The nature of the candles that started the breakout indicated that we would be using the Swing Trading Strategy for Slow Breakouts.

DAILY CHART

Having determined that the setup and signals conformed to the criteria for this strategy, the trade was executed with an initial target of 180 Pips. However, at the end of the Holding Period for this strategy, the trade was up by 101 Pips - again, smaller than planned but a good trading gain nevertheless.

DAILY CHART

SHARP REVERSALS

The decisions to close these trades at the end of their respective Holding Periods were proven to be spot on given the reversals that took place a few days later. These reversals reflected the market reaction to the decisions made by the European Central Bank on Thursday December 4, 2015.

EURO JPY

CHF JPY

The reversals on both now indicate that we are starting the patterns of False Breakouts that will take us quickly back inside of these Consolidations. Following this, it is likely that they will breakout at Resistance to start strong Uptrends in favour of the EURO and the CHF. 

These sharp movements reinforced the need for Swing Traders to always implement and obey the time limits set for our trades. Reversals of 10, 20 or even 40 Pips are usually the consequences of disobeying these rules, but pullbacks of 400 Pips have a way of sobering us up to the harsh reality of what this market can do to us when we trade based on emotions, greed and our ego. It is often very tempting to want more out of a trade especially after a loss or when the market has only given us a fraction of what we want out of a trade. However, it always better to have smaller gains than large losses. 

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The Perils of Momentum Strategies - best forex trading system in the world

The Perils of Momentum Strategies ~ best forex trading system in the world

Not so long ago I was an agnostic with respect to choosing between mean-reverting and momentum models: I felt that depending on the particular model or environment, each can be profitable. Lately, however, I am increasingly skeptical about the long-term profitability of momentum models. The main reason is the increasing competition among traders, algorithmic or otherwise.

As I mentioned in my previous post, when more and more traders decide to adopt mean-reverting strategies, all they do is to eliminate the trading opportunity. The market becomes efficient, and nobody makes any money, but nobody loses either. In contrast, when more and more traders decide to adopt momentum strategies, the momentum will be established sooner and sooner. For e.g. in the case of event-driven strategies which are mostly momentum-based, the new equilibrium price will have been established almost instantaneously after the event is publicly disclosed. Under this circumstance, any momentum trades that are entered just a little bit late will not only suffer zero profit, but will likely suffer losses as mean-reversion almost inevitably takes over. But how soon do we need to enter in order to avoid this fate? (It cant be too soon either because often a trend need to be established first in order to trigger an entry signal.) It is unfortunately a moving target as competition increases: 1 day earlier might work now, but may not be sufficient a few months from now. (The exit trade also suffers the same problem, as we dont know how long the momentum will last.) It is a dangerous game to play.

Indeed, time is often a friend of the mean-reversion trader: the longer s/he waits, perhaps the more profitable the trading opportunity. And if s/he enters too early and suffers a loss, s/he can always double the position. As I explained in a previous article, stop-loss should generally not be applied to mean-reverting trades on a short time-scale. So even if the trader does not double-up the position, an eventual re-couping of the loss is more than likely. On the other hand, time is an enemy of the momentum trader: if s/he loses the first-mover advantage and suffers heavy loss, I argued in that article that a stop-loss is advised, and thus the loss is forever locked-in.

Given this asymmetry, it is no wonder that algorithmic traders have been warning me long ago that it is hard to find a profitable momentum trade. And I was silly enough not to pay heed to them until now.
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HOW TO MAKE FOREX TRADING STRATEGIES WORK FOR YOU - forex trading system development

HOW TO MAKE FOREX TRADING STRATEGIES WORK FOR YOU ~ forex trading system development

Now that there are hundreds of Forex margin brokers, millions of free Forex trading tips webistes and literally hundreds of thousands of Forex day trading strategy "home based business" Forex traders, we can say that virtually anyone with an internet connection can trade Forex with the pros. In any power trading strategy, a proven trading method will mean that through Forex strategy testing and by using trading risk management, no more than one or two per cent of a total account value is put at risk in a single trade. This is key in the path to big Forex profits. Any trader beginning out will look at the trading methodologies available to them and decide to create trading rules for their Forex trading strategy. Forex trading (currency trading) initiates should be aware therefore not only of technical and fundamental analysis and predicting Forex prices, but also of how to be a trading strategy tester and to have strong Forex trading rules that help them to make the big Forex profits they are seeking. The alternative is to have more experienced Forex trading systems used by more experienced traders end up causing you to lose all your money in your Forex business - the harshest possible outcome. Having the following in place could assist you in getting started right away in Forex trading (currency trading): a Forex trading software platform; a free Forex trading strategy (or a paid for one for that matter); an understanding of fundamental and technical analysis and a trading risk management system. From these elements (and also the support of a daily Forex strategy briefing from a margin broker or some other site) you can start Forex trading in the fx market with your own Forex trading strategy rules. Learning currency trading online needs to begin with sound trading risk management and how to manage your trading account balance by making intelligent risk decisions with your trading account. The risks can be higher with Forex because the moves in a week can be equivalent to a month in stock moves. Volatility is to be expected. Currency trading strategy rules for a Forex business can be developed by amalgamating Forex trading systems of others or simply garnering a Forex education to include: fundamental and technical analysis; trading money management (risk management); a daily Forex strategy briefing from a "third party" and a way of creating Forex forecase signals (in other words a means of predicting future Forex prices from perhaps a technical setup on a currency pair or simply from Forex strategy testing that has been carried out. Forex strategy testing can either be done through using a practice account through your broker or by paper trading your strategy. A third option is to use software such as Forex strategy tester which can run a simulation of what could happen if you trade by your rules with some limitations on accuracy. Free Forex trading strategy tips are available from Forex ebooks webistes all over the web. The truth is that the Forex trading fx market needs to be treated as a business that runs like a Forex trading machine as much as possible. This is key if you are to make big Forex profits in live trading. Lack of regulation means that anyone can sell a "scalping trading strategy" or so-called "foolproof trading method" and make themselves out to be an expert or even say they are a long term bank trader when they are not. There is a need for caution therefore when deciding on where to get your Forex education because not any Forex trading guide is actually going to help in your predicting Forex prices in the near, medium or long terms. It behooves you to go out and look at what is on offer from Forex trading websites and learn more about the global currency markets after you have read this article. Some sites are listed in the resource box at the end to start you off. Trading Forex online then presents challenges. The rest of this article will address those challenges. In order to trade effectively, a Forex trading guide is needed for the initiate in to the Forex markets to be able to learn online currency trading, understand trading risk management and how to manage money, discover technical and fundamental analysis, how these types of analysis of the market differ and how to apply them in creating a Forex trading machine. This means that after all the cogs are set in place you will have a Forex trading machine that enables you to its like a professional and make decisions based in the moment and on the facts that are presented to you, rather than guess or gambling work - although there is invariably an element of risk, your job is to eliminate the risk as much as possible in applying your trading strategy. To make this happen, you will start to think about what you may need in order to implement your trading strategy. For example, will you be needing a daily Forex strategy briefing from either a paid service or a free provider of its strategy briefings - such as perhaps your broker or a third party service. In your technical analysis will you be utilising traditional indicators such as those involved in a bands trading strategy (Bollinger Bands), will you rely on charts created by a its platform or other currency price forecast type service or will you be professional analyst charts to make your decisions? A proven trading method is hard to come by. There are educators who have been trading Forex for banks and other institutions for many years. However they are still going to find it incredibly difficult to pass on their years of knowledge, at least not in the time most people want to go from knowing nothing about Forex trading (currency trading) to being an expert and making money with its as a business. In sum, it is multidimensional. There are several aspects of absolute importance. These include strategy, both in terms of trading and money management, education - both initial and ongoing and focusing in on mastering a specific area whether that be a particular currency pair or aspect within the field - such as global economics of a particular country.
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FOREX Trading Strategies - traffic light forex trading system

FOREX Trading Strategies ~ traffic light forex trading system

FOREX Trading Strategies

The universe of exchanging and speculation can be as disappointing as it can be compensating! Furthermore, Forex (Foreign Exchange) is no special case — regularly portrayed as hazardous, beneficial and confounded. 

Forex is the biggest exchanging market on the planet. 

Forex is the overall business sector for purchasing and offering monetary forms. These business sectors were produced to provide food for the supply and request of various monetary forms by governments, organizations and people — for global exchange and helping merchants and exporters. 

Hence the individuals who exchange this business sector incorporate customers, organizations, financial specialists, examiners and the managing an account industry. 

Diverse nations use distinctive monetary standards — which change in their qualities against one another. Forex exchanging invovles the purchasing and offering of two monetary standards — exchanging sets — you are offering one and purchasing another eg you might utilize the US dollar to buy British pounds — if the supply of the pound reduces — it will cost more dollars to purchase pounds — the Forex broker would like to offer their pounds at a higher cost than the price tag. 

An examiner in Forex is somebody who acknowledges the likelihood of unfavorable conversion scale developments in the trust of making a benefit from great developments in cash. 

As an examiner you ought to dependably begin exchanging with a little sum and have an exchanging framework — which lets you know when to get in and out of the business sector. It is a most loved choice for cash merchants as you can exchange the Forex market 24 hours for every day and the exchange expenses are insignificant. 

This business sector — due to its sheer size — is difficult to be controlled — which stocks can be — it will probably be impacted by worldwide news or occasions. Thus, the open door for insider exchanging is dispensed with. 

However — be careful - Forex representatives gauge that 90% of merchants lose their cash; 5% make back the initial investment and just 5% accomplish productive results.

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FORECASTING TOOLS THAT ALL FOREX TRADERS NEED - forex envelope profit system trading made easy

FORECASTING TOOLS THAT ALL FOREX TRADERS NEED ~ forex envelope profit system trading made easy

The Candlestick Signal and Patterns in the Trading Manual are extremely powerful in forecasting and taking advantage of the Currency Market each week. However, even if you are a Swing Trader or Day Trader with your own trading strategy, the power of these tools to accurately predict major market movements will definitely enhance your trading success.

The Daily and the 4 Hour Charts are undoubtedly two of the most significant time frames in the Forex Market. This therefore means that breakouts and reversals that take place on these charts have a major impact on the other time frames you trade on and your profitability in general. By ignoring them as Day Traders, you could be caught by surprise with reversals that appear out of nowhere while as Swing Traders, you could miss additional signals that provide even more trading opportunities.

There are various patterns of Candlesticks that have been identified to predict the formation of Consolidations as well as when reversals of several hundred Pips will take place. Once you incorporate these into your Trading Plan, you can be better prepared to exit at the right moment before the market has a chance to take away your gains.

FORMATION OF CONSOLIDATION

_________________________________

 CONSOLIDATION FORECAST - CAD CHF 
SEPTEMBER 2, 2015

(FXCM Charts are used for Chart Analysis &Signals as these use the New York Close of the Daily Candle - crucial for Price Action/Candlestick Strategies)

ACTUAL FORMATION OF CONSOLIDATION 

DECEMBER 10, 2015

(FXCM Charts are used for Chart Analysis &Signals as these use the New York Close of the Daily Candle - crucial for Price Action/Candlestick Strategies)

ACCURATE EXITS AHEAD OF SHARP REVERSALS
_________________________________

SHARP CHF GAINS IN JANUARY 2015

(Actual Trades done using the Dukascopy Trading Platform)

 CHF JPY TRADE IN NOVEMBER 2015

SHARP REVERSAL CHF JPY IN DECEMBER 

EURO JPY TRADE IN NOVEMBER 2015

SHARP EURO JPY REVERSAL IN DECEMBER

As you can appreciate from these examples, the ability to forecast Consolidation and spot reversal points will help you to maximize trading gains and side-step the traps that lead to major losses. This is why it is extremely important for all types of traders to utilize and understand the dynamic behind the Larger Time Frames. It is very easy for us to get caught up in getting as much out of a trade as possible especially after a recent loss. However, knowing when it is necessary to cut our profits before they turn into losses will be the determining factor in your long-term success.

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Implementing stock strategies using options - forex trading strategies tutorial

Implementing stock strategies using options ~ forex trading strategies tutorial

There are many stock trading strategies that are quite attractive in terms of Sharpe ratios, but not very attractive in terms of returns. (Pairs trading comes to mind. But in general, any market neutral strategy suffers from this problem.)  Certainly, one cannot feed a family with annualized returns in the single or low double digits, unless one already has millions of dollars of capital. One way to solve this dilemma is of course to join a proprietary trading group, where we would have access to perhaps x30 leverage. Another way is to implement a stock trading strategy using options instead, though there are a sizable number of issues to consider. (I recently brushed up on my options know-how by reading the popular "Options as a Strategic Investment".)

1. Using options will allow you to increase your leverage beyond the Reg T x2 leverage (or even the day trading x4 leverage) only if you buy options only, but not selling them. For example, to implement a pairs trading strategy on 2 different stocks, you would have to buy call options on the long side, and buy put options on the short side (but not sell call options). Otherwise the margin requirement for selling calls is as onerous as shorting the underlying stock itself.
2. The effective leverage is computed by multiplying the delta of the option by the underlying stock price divided by the option premium. If you buy an out-of-money (OTM) option, the delta will be small (smaller than 0.5), but the option premium is small also. Vice versa for an in-the-money (ITM) option. So you would have to find the optimal strike price so that the effective leverage is maximized. I personally choose to buy an at-the-money (ATM) call or slightly ITM call without actually computing the optimized strike, but perhaps you have reached a different conclusion?
3. Naturally, the shorter the time-to-expiration, the cheaper the option and higher the effective leverage. Additionally, for ITM options, their deltas increase as we get closer to expiration, which also contributes to higher effective leverage. However, the time-to-expiration must of course be longer than the expected holding period of your position, otherwise you would incur the transaction cost of rolling over to the further-month options.
4. The discussion of finding the right strike price based on its delta is moot if your brokerages API does not provide you with delta for your automated trading system. In theory, Interactive Brokerss API provide deltas for whole options chains, and quant2ibs MATLAB API will pass these on to your MATLAB exeuction program too. However, I have not been successful in retrieving deltas using quant2ibs API. If you have encountered a similar problem, and perhaps have found the reason/cure for this, please let me know. For now, I am reduced to assuming that all my near ATM calls for different stocks have the same delta, and I increase this common value from 0.5 to close to 1 as time passes.
5. Options dont have MOO, LOO, MOC or LOC order types. If one uses market orders to buy at the open or close, one would incur significant transaction costs due to the much wider bid-ask spread compared to stocks. I try to use limit orders on options orders as much as possible.

If you have used options to implement stock trading strategies, and have experiences with these or other issues, please do share them here.

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Reminder: my next pairs trading workshop will take place in New York on October 26-27th.
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Find out three of the Most Effective Forex Trading Strategies - free forex day trading system com

Find out three of the Most Effective Forex Trading Strategies ~ free forex day trading system com

Currency trading can get interesting once you understand the various forex trading strategies that enable you to profit from this market. Though these strategies may differ in effectiveness depending on individual goals and investor personalities and thus may vary from person to person, there are some that can be used by anyone eager to increase his or her profitability. If you are interested to make money from the lucrative foreign exchange market, here are some effective forex trading strategies that may come handy: Breakout Trading This is touted as the one of the most effective and profitable forex trading strategies and its simplicity has made it very popular. If you participate in this kind of trade, you have to monitor the charts and note the breakouts. Trading break outs will not require any kind of prediction. However, as in other strategies, all break outs may not be equally rewarding. Therefore patience is required and it is absolutely justified if you wait for the right breaks. Carry Trade This is another of the more lucrative and talked about forex trading strategies. Carry trade is a concept by which you will simply use or carry the changes in the interest rates of two different currencies for better gain in the future. You will have to analyze and check the exact benefit that a possible change in the exchange rate of currencies can bring you. Many traders prefer a currency that has the chance of gaining a higher interest rate. Calculating the interest rate differential of currencies is also important while choosing a specific currency. Forex News Trading While strategizing your forex trade, you may also like to put enough emphasis on the trading of news that may influence the market. However, before trading the news, you would do better to understand whether their impact would be long term or short term. Forex news traders normally place their trades just before or after important news has been released, thus taking advantage of the reaction to these news. It is important for you to do your homework in choosing forex trading strategies based on your objectives and personality. Remember that not all strategies suit all personalities. For example, if you dislike looking at charts, you might want to consider forex news trading compared to breakout trading. Also, its important to keep your choices open and not follow a certain technique too religiously. Forex trading strategies can change over time and should be altered if necessary.
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The enduring profitability of mean reversion strategies - forex trading system without indicators

The enduring profitability of mean reversion strategies ~ forex trading system without indicators

Some readers have doubts about my assertion that mean-reversal models continue to be very profitable during this whole year of financial and economic disasters. So I backtested the mean-reversion strategy in Example 3.8 of my book with the most recent one-year SP1500 data. Without transaction cost, the Sharpe ratio is 4.8. Even after subtracting 10 b.p. round-trip transaction cost, it is still at 3.5.

Since the strategy was constructed over a year ago while I was writing the book, this most recent backtest is done on unseen data, with absolutely no look-ahead bias!
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How to develop effective forex trading strategies - the forex daily trading system course

How to develop effective forex trading strategies ~ the forex daily trading system course

There are literally thousands of free Forex trading strategies available on the internet, but the question is if it was any good would someone be giving it away free of charge. The answer; probably not. So what can you learn from reading this article? Not many people know how to start designing their own strategies and that is where this article is going to help you. After reading the following you will be able to experiment with your own strategies and maybe even stumble across a real winner.

First of all you are going to need indicators in your currency trading strategies, readily available through the MT4 platform for free you will have no problem finding mathematically worked out signals hinting on the direction of a currency pair. There are too many of them to go through in one article but all you need to know is that there is plenty of information on the internet explaining how to use each one; all you have to do is seek and one will find answers. In this article we are going to go through the indicator categories so you can compile what will work with what.

Trends

One of the most common Forex trading strategies is trading with the trend, which you can establish using indicators such as Moving averages, Bollinger bands, ADX, Parabolic SAR, Commodity Channel Index and standard deviations. Do not panic if all that sounds complex, because the truth is it is complex but all you need to know is when each one gives you a buy or sell signal, you dont need to know the inner workings and calculations.

Oscillators

Oscillators are an indicator that show the range of a currency, for example a range between 0 and 100. If the indicator is at the top of the range or near the "100" mark then it is an indication that the currency pair is overbought. If the opposite is in effect and the currency is near the "0" then it is an indication that the currency is oversold. There are many different Oscillator indicators such as Average true range, Bulls power, Bears power, Envelopes, force index, MACD, RSI, Relative Vigor Index and many more custom designs from programmers.

Volumes

Volumes give an indication of the buying and selling power of a security. The money flow will be displayed through an indicator that will show as a trend either up or down. An uptrend would suggest that there is more money flow through the buying market and a downtrend would indicate there is more money flow through the selling market. The indicators to look out for that will give volume to your trading strategy are Accumulation/Distribution, Money flow index, On balance volume.

Putting it all together

So this is where you start to see how indicators can make up your strategy. Imagine you have a chart with a couple of moving averages on the price and maybe a Bollinger band giving you an indication of an uptrend. You add an Oscillator to the chart that gives you a signal of overbought. So you are not going to buy off the result of the trend indicators because your Oscillator indicates it is overbought. You could wait until your moving averages cross over and take a sell trade or get in early when the price moves through your mid Bollinger band. Either way you have just developed your first strategy. You could even get more technical and add a volume indicator and see when that buying power starts to decrease and take the sell even earlier.

Experimenting is the key to success and it could take years to get it right. There are some really good strategies out there for free but you will often find they only work in a certain type of market. A good way to start developing your own strategies is taking one of these methods and adding another indicator to tell you when it will stop working and switch to a strategy that will. As stated at the beginning of the article nobody in their right mind is going to give you a mega winning strategy for free. You can either pay a subscription to use the strategy or buy it outright in the form of an EA.


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Hedge funds move to easy to understand liquid strategies - forex trading system secrets

Hedge funds move to easy to understand liquid strategies ~ forex trading system secrets

See this interesting article (registration required) on FT on the state of the hedge fund industry. Paul Tudor Jones, Citadel, and Fortress Investment Group are all said to be moving to "easy-to-understand liquid strategies", otherwise known as "statistical arbitrage".

(By the way, I have been urging traders to do just that in my book.)
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Forex Market 3 Powerful Strategies Big Money - highest rated forex trading system

Forex Market 3 Powerful Strategies Big Money ~ highest rated forex trading system

If you want to catch the serious profit in forex trading you need to w the forex trends which are medium term. Here we are going to give you a 3 step simple methods which if you use it correctly, will help you catch most forex trend sand lead you to long-term term currency trading success.

Most beginner traders dont bother trying to follow the trend that has come about long term - instead they try to trade by forex scalping or day trading. These methods focus the trader on small moves and they hope to catch small profit however as most short term moves are random, this leads to equity eliminate and sending the trader broke.

Also make sure you are using the Best Forex Broker when trading, which a good broker should have great charts so that you can look at the short term movements as well as long term trend lines.

The other alternatives are swing trading and long term forex trend following and this article is all about the latter method. If you look at any forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit - present we will outline a simple method to get them.

Breakouts- Trading on Confirmation of Break outs

By far the best way of catching the serious moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is broken.

Its a fact that most leading moves start from new highs or lows. Right this an sit it next to your computer so that you dont forget it.

While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur. So you will the boat and therefore profits.

Most traders dont buy or sell breakouts and thats exactly why its such a powerful method.

The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the greater the spacing between the tests the more valid the level is.

Confirmation- Dont Guess it, Confirm IT

Of course not every breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your dealing signal.

These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We dont have time to discuss them here (simply look up our other articles) but two of the greatest are - the stochastic and Relative Strength Index RSI

Stops and Targets

Stop points are easy with breakouts - Simply behind the breakout point.

If you have a serious trend then you need to be careful but you can milk it, so dont move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You dont know when the trend is going to end, so dont predict it.

Its ok to give a little bit back, as thats the nature of trading forex. Keep in mind if you got 50% of all leading trend you would be very rich. When you are long-term term trend following you have accept giving a bit back and taking dips in open equity as the trend develops - this is noise and does not affect the long term trend.

The above is a simple way to trade forex and catch the high odds moves that yield the serious profit. If you are learning forex dealing and want a simple method that is robust and will help you get every major move, then you should base your dealing on the above method.

Now that you have all the winning strategies, you now need to have a winning broker, recently the CFD FX Report has reviewed these brokers and have come up with Best Forex Broker to find out this visit the website or email us support@cfdfxreport.com

By forex broker
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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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Are quant strategies in trouble yet again - acb forex trading system

Are quant strategies in trouble yet again ~ acb forex trading system

There were reports that quant strategies have been suffering again in January, given the market turmoil generated partly by the Societe Generale scandal. Mr. Matthew Rothman of Lehman Brothers pinned the blame on momentum strategies (Hat tip: 1440 Wall Street). I partly agree with that assessment, but the full picture is more nuanced.

As I have written in my previous post, December has been a disastrous month for value (or mean-reverting) strategies, based on both public commentaries and personal experience. Yet, as always, mean-reverting strategies bounced back in January and all the pain is gone. In fact, the Societe Generale scandal and the subsequent 1/22 Fed bailout has been a huge bonanza to mean-reversion traders, just like the August disaster had been. (Remember: mean-reversion traders profit from providing liquidity during market panic.) Meanwhile, though December has been a good month for momentum strategies, January has become increasingly inhospitable to them. But one should not be surprised at all. As I have explained before, momentum strategies generally tend to be more unstable and have lower Sharpe ratios than reversal strategies. Any wise quantitative portfolio managers would always allocate a lower proportion of capital to momentum strategies than to reversal strategies. Hence it is no excuse at all to say that a quant portfolio has been hurt by losses in momentum trading -- they are to be expected quite frequently!
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So how much did quantitative strategies actually lose last quarter - forex trading breakout system

So how much did quantitative strategies actually lose last quarter ~ forex trading breakout system

The numbers have started to come in: Morgan Stanley lost $480MM last quarter due to quantitative trading -- about 10% of operating profits.
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Momentum day trading strategies - forex channel trading system

Momentum day trading strategies ~ forex channel trading system

Day tradingrefers to the process of selling and buying of stock of security within the same day. The way day traders make profits is by investing a large amount of capital to take advantage of small price movements in highly liquid stocks or indexes. Two criteria of stock that day traders are usually looking for are liquidity and volatility. While liquidity enables you to enter and quit a share of stock at a good price, volatility represents the estimated daily price range. In order to make maximum profit from day trading, there are several recommended strategies that you can employ. In this article, three of them will be discussed.

Scalping

This strategyfocuses on making profits on small price changes. This is in fact the most popular day trading strategy. Soon after a trade turns to profitable, investors usually sell the share immediately. Because of this, the profits earned are usually in a small amount. Normally, day traders who implement this strategyare placing around 10 to a couple hundred trades within a day. They generally believe that small moves in stock price are easier to capture than large ones.

Fading

Fading strategyrefers to the attempt to short sell stocks after rapid move upwards. The fading market is usually highly risked and demands the investor to have a high risk tolerance. Similar to short seller, a fade trader sells the stock when its price is rising and buy when its falling.

Momentum

Momentum strategyinvolves trading on news releases. In addition, it is also related to finding strong trending moves supported by high volume. While some momentum traders purchase stock on news releases and ride a trend until it exhibits signs of reversal, some fade the price surge.

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