CIO Magazine Innovation and IT Strategy blog - forex 50 pips trading system by rita lasker

CIO Magazine Innovation and IT Strategy blog ~ forex 50 pips trading system by rita lasker

Ms. Elana Varon who writes the CIO Magazines Innovation and IT Strategy blog quoted me today in saying that some quantitative investment models are over-engineered. This old article of mine is an elaboration of my view on this.


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Best forex trading strategy that can generate huge profit fast - forex candlestick trading system

Best forex trading strategy that can generate huge profit fast ~ forex candlestick trading system

Do you want a Forex trading strategy that works, is easy to understand can be mastered in a few weeks, can get you in all the best trends and profits , be learned in a week or two and applied in around 30 minutes a day? Well read on and you will find a system that can lead you to currency trading success.

Before we look at the strategy, lets look at one of the biggest myths of currency trading and its this - Forex prices can be predicted in advance. This is believed by most new traders and its rubbish because if they could, we would all know the price in advance and there would be no market.

This message is sold by vendors of cheap software packages, who claim you can make money with no effort, with their predictive software and what happens? The predictions of the software are as accurate as your horoscope and the user losses.

Now the savvy trader knows, the best way to trade Forex is to trade the reality of price change and NOT predict and he simply trades breakouts to new market highs - why?

Because if you look at any Forex chart, you will see that this is the way all big trends start and continue from these breakouts and if you dont believe me, look at a chart and you will see it happen in every currency pair.
Most traders cant buy a breakout, because they want to predict and a breakout doesnt allow you to do this, you miss the first part of the move but that doesnt matter - why?

Because if it is a break of a level of resistance which has been firm in the past, the odds are, that the trend will continue in the direction of the break. Sure this trader misses the start of the move - but he has the odds firmly on his side and huge profit potential ahead of him.

Breakout trading is at the heart of some of the worlds top trading strategies and if you want to make a lot of money you should include this methodology in yours.

So learn to trade high odds breakouts and you will have a Forex trading strategy which will always work and can make you huge Forex profits in 30 minutes a day.



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How To Determine The Best Forex Trading Strategy - vsd forex trading system indicator

How To Determine The Best Forex Trading Strategy ~ vsd forex trading system indicator

Learning Forex trading is not a simple task, but in no way it is difficult either. Forex trading is all about regulation, willpower and determination. Leveraging your strength could be extravagant by organizing the apt Forex trading strategy. You may find hundreds and thousands of Forex trading strategies out there. Logic would tell us that there is a foreign currency strategy out there which leverages our strengths. All forex trading strategies use a variety of indicators and combinations. These indicators and studies are just calculating support and resistance and trend in the Forex trading market.

Fundamental Analysis: It is the forex trading strategy used to forecast long-term trends using indicators of currency values that are given at different times. The disclosure of news makes the market unpredictable; hence the traders should have a close watch on the comments of meetings and reports.

Some traders will merely back test historical data, and then run the system to test on simulated data. If they find that the system could generate good results based on the system parameters, they then adopt the system for actual use in real trading instead of a paper trade.

Take the time to actually understand the forex trading strategy. Study the components independently so a deeper understanding of the strategic mechanisms would be mastered. If you recognize the components, internalize its use, and make consistent profits into your forex trading account, then you have your own Forex trading strategy. It does not really matter what the professionals say, your account balance is the final judge and judges for your Forex trading strategy.

A forex trading strategy cannot be learnt and perfected overnight and it is for this reason that you are advised to try any forex trading strategy with a demo account and if you get the hang of it and feel you can make it in the real world of Forex, and then you can proceed to actual trading.

By Ray Lam
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How a mean reversion strategy performed in August - forex trading system blog

How a mean reversion strategy performed in August ~ forex trading system blog

Prof. Andrew Lo and Mr. Amir Khandani at MIT recently wrote a paper on "What Happened To The Quants In August 2007?" (Hat tip to my reader Mr. J. Rigg for the article). Most of their conclusions confirm what many observers already suspected: that the loss is likely due to the simultaneous forced liquidation of portfolios holding similar positions by various quantitative funds. What is noteworthy, however, is that they constructed a mean-reversion strategy and observed what happened to it during August. This strategy is very simple: buy the stocks with the worst previous 1-day returns, and short the ones with the best previous 1-day returns. Despite its utter simplicity, this strategy has had great performance since 1995, ignoring transaction costs. The Sharpe ratio was an astounding 53.87 in 1995, gradually decreasing to 4.47 in 2006. However, the strategy also had a disastrous few days on August 7-9, suffering a cumulative (arithmetic) return of -6.85% in those 3 days. Then on August 10, it rebounded, like the rest of the quant funds, with a return of 5.92%, almost reversing all of its previous losses. For me, this experiment reveals three interesting points: 1) a simple price factor seems to capture most of the performance of the complex factor models run by the gigantic hedge funds; 2) even technical mean-reverting factors suffer losses, not just momentum (growth) factors based on fundamentals; and 3) if one wants to avoid disasters and enjoy spectacular returns, even a one-day holding period is too long. I havent done the experiment myself yet, but I bet that if we were to liquidate the portfolio at market close each day, not only would we avoid the loss of -6.85% in those 3 days, but would probably end up with a positive return of a similar magnitude!
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The Forex Gap Strategy - forex trading system free

The Forex Gap Strategy ~ forex trading system free

The Forex Gap Strategy is an interesting trading system that utilizes one of the most disturbing phenomenon of the Forex market — a weekly gap between the last Fridays close price and the current Mondays open price. The gap itself takes its origin in the fact that the interbank currency market continues to react on the fundamental news during the weekend, opening on Monday at the level with the most liquidity.

This strategy is based on the assumption that the gap is a result of speculations and excess volatility, thus a position in the opposite direction should probably become profitable after a few days.

Here is how it works:

1. Select a currency pair with a relatively high level of volatility. I recommend GBP/JPY as it showed the best results during my tests. But other JPY-based pairs should work too. By the way, its a good strategy to use on all major currency pairs at the same time.
   
2. When a new week starts look if there is a gap. A gap should be at least 5 times the average spread for the pair. Otherwise it cant be considered a real signal.
   
3. If Mondays (or late Sundays if you trade from North or South America) open is below the Fridays (or early Saturdays if you trade from Oceania or Eastern Asia) close, the gap is negative and you should open a Long position.
   
4. If Mondays open is above the Fridays close, the gap is positive and you should open a Short position.
   
5. Dont set a stop-loss or a take-profit level (its a rare occasion but a stop-loss isnt recommended in this strategy).
   
6. Immediately before the end of the weekly trading session (e.g. 5 minutes before close) you need to close the position.

The GBP/JPY chart below shows the last 7 weeks (as of May 24, 2010) and all of them have gaps. 6 out of 7 gaps gave correct signals that result in a lot of profits. The last gap gave a wrong signal and yields a medium loss. The average spread for GBP/JPY was 3 pips during this period and all gaps were much wider than 15 pips, making them all qualifying signals. The net total profit was 1,612 pips in 7 weeks, which is not bad at all!

Before using this strategy on a live account, make sure to try it out on demo first.
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Index change strategy - forex trading system forum

Index change strategy ~ forex trading system forum

Some years ago, I traded a simple index change strategy: buying stocks to be added to the SP500 index at the market open right after the index change announcement and exiting the position at the close, and similarly shorting stocks to be deleted. The results were mediocre at best.

However, new research by University of Edinburgh Business School suggests that a similar strategy works well for FTSE350 stocks (Hat tip to J. Rigg for the link). The trick is to predict which stocks are to be added or deleted 30 days before the announcement ("review date"), buy/sell the stocks, and close out the positions just before the review date.

Since the criteria for inclusion in the FTSE index is well-defined (and primarily based on market capitalization), it should not be hard for the interested traders to make their own predictions and profit from this rebalancing.
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SHARP AUD NZD BREAKOUT BUT PULLBACK NEEDED - forex daily trading system review

SHARP AUD NZD BREAKOUT BUT PULLBACK NEEDED ~ forex daily trading system review

OVERALL SCENARIO

• Consolidation at end of Major Downtrend;
• Possible Start of Move to Outer Downtrend Line;
• Broke Resistance of Pennant; 
• Needs to Pullback to Start New Uptrend;

CHART 1 - END OF DOWNTREND

   
CURRENT SCENARIO

• Pennant Broken;
• Candle Signal Too Large;
• Weekly Range Exceeded;

CHART 2 - PENNANT BREAKOUT

 ACTION STEPS

• Wait for a Pullback/Small Consolidation;
• Wait for another Strong Bull Signal to Start New Weekly Range;
• Enter Based on Daily Signal or 4H Chart Signal;
• Aim for 200 Pips;

RECENT EMAIL FROM CLIENT

____________________________________________________

SUBSCRIBE TODAY

____________________________________________________

US$120.00

Free 

 ___________________________________________

Duane Shepherd 

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

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HOW TO CREATE YOUR OWN FOREX TRADING STRATEGY - cowabunga forex trading system

HOW TO CREATE YOUR OWN FOREX TRADING STRATEGY ~ cowabunga forex trading system

Along with basic Forex education and training, develop your own Forex trading strategy is a very important thing that you should consider to ensure successful trading in the Forex market. A good and sound Forex strategy should be moving according to the effective method of optimizing your wages, limiting losses and making the most of exchange.
If youre serious about online Forex trading and planning to make it your full-time occupation, you should always remember that adhere to a particular trading strategy is not a good idea, since there is no forex strategy is going to work for a long period of time. Due to the volatility of the global economy, Forex market and the ongoing changes in the volumes traded, currency pairs, price volatility, etc., You will not be able to keep pace with modern trends using only one standard Forex trading strategy. Once you develop your Forex strategy and make sure it works fine and delivers profits are not dependent on using it forever, keep changing your strategy flexible and perfect or, depending on the current trends in trading in the Forex market.
While trying to create your own Forex trading strategy to avoid the example of the large financial institutions that are involved in the Forex market game, as international banks, brokerage firms or financial institutions. A Forex strategy that works perfectly for them does not mean it will work the same way for individual traders like you.
The same can be said about copying a Forex strategy of other entrepreneurs. Everyone is different and has its own goals, temperament, tolerance level, and what is successful for a Forex trader usually not successful for another. The best Forex trading strategy before you go to the one that meets your character, goals and your unique trading habits.
Actually, developing your ideal Forex strategy is a matter of thorough Forex education, your individual trading experience and mistakes. If youre relatively new to the Forex market, it would be wise for you to test drive your trading strategy on a demo account without risking real money. You will trade under real market conditions and see how moving currency, each currency pair reacts to these fluctuations, what causes them and what effect they have on the market and trade trends.
And only when you feel that you have gained enough experience, while trading on a demo account, it is high time to start real online currency trading with a real Forex trading account.
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What Is The Right Forex Day Trading Strategy For Me - forex high probability trading system

What Is The Right Forex Day Trading Strategy For Me ~ forex high probability trading system

Trading in forex requires strategic planning. So how does one decide what is the right strategy to adopt about investing in the forex market. The right forex day trading strategy were depends on the objective of the individual traders.Different objective will require different strategy.

So what is the right forex day trading strategy? Before one can decide the answer to the question, you should consult with your broker and discusses what your investment objectives are. Only after you have decided your objectives can you start to formulate a trading strategy.

There are many different Forex day trading strategies out there. Each one is tailored to the individual according to need and desire. Your goals will be discussed and formative strategy will be put into place in order to position you for the maximum benefit when dealing with foreign currency.

As this is a risk venture, you will also be informed of what your risk load will be and what you should expect given the circumstances. The best Forex day trading strategy will then be formed and enacted in order to give you the most result depending upon market value.

Adopting the correct forex day trading strategy, you are able to position yourself correctly in a volatile market. Because forex markets are easily influence by external and internal factors, your trading strategy will guide you on how to play the market when the changes occur.

To formulate a proper forex day trading strategy, you need to study and analyze all the relevant information. The decision regarding buying and selling positions as well as holding positions will depend on market conditions. It is the strategy that you adopt, that will back you can how to react so that you can take advantage of the market changes, at any point in time.

Your Forex day trading strategy may change several times in a day, if not more often depending upon the market and what currency you are trading in. By taking note of and acting on the information you will be able to make that strategy work for you.

Ensure that you formulate proper strategy before actually beginning trading. By taking proper steps of strategizing your investment goals, you are more likely to make a profit and minimize losses in the long run.

By Joel Gardner
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Picking A Forex Strategy - low risk forex trading system

Picking A Forex Strategy ~ low risk forex trading system

Picking A Forex Strategy

Specialized examination and key investigation are the two essential regions of technique in the FOREX market which is precisely the same in the value markets. In any case, specialized investigation is by a long shot the most widely recognized procedure that is utilized by individual FOREX brokers. Here is a brief review of both types of investigation and how they specifically apply to forex exchanging: 

Key Analysis 

In the event that you believe its sufficiently hard to esteem one organization, you ought to have a go at esteeming an entire nation. Central examination in the forex business sector is frequently a greatly troublesome one, and its generally utilized just as a way to foresee long haul patterns. Be that as it may say that a few merchants do exchange fleeting entirely on news discharges. There are a variety of central pointers of the cash values discharged at a wide range of times. Here are a couple of them to kick you off: 

* Non-ranch Payrolls 

* Purchasing Managers Index (PMI) 

* Consumer Price Index (CPI) 

* Retail Sales 

* Durable Goods 

You have to realize that these reports are by all account not the only central variables that you need to watch. There are additionally a significant assortment of gatherings where you can get a few quotes and discourse that can influence showcases the same amount of as any report. These gatherings are frequently conveyed out to talk about any loan fees, expansion, and different issues that can influence coin values. 

Indeed, even changes in how things are worded while tending to specific issues, for example, the Federal Reserve directors remarks on financing costs; can bring about an unstable business sector. Two critical gatherings that you need to keep an eye out for are the Federal Open Market Committee and Humphrey Hawkins Hearings. 

Just by perusing the reports and analyzing the critique, it can help FOREX principal experts to show signs of improvement comprehension of all long haul market patterns furthermore to permit fleeting brokers to have the capacity to benefit from exceptional happenings. On the off chance that you do choose to take after a basic technique, you will need to make certain to keep a financial timetable convenient at all times so you know when these reports are discharged. Your representative might likewise have the capacity to furnish you with continuous access to this sort of data. 

Specialized Analysis 

Much the same as their partners in the value markets, specialized investigators of the FOREX exchanging market break down value patterns. The main genuine distinction between specialized examination in FOREX and specialized investigation in values is the time span that is included in that FOREX markets are open 24 hours a day. 

In view of this, a few types of specialized examination that calculate time must be changed so they can work with the 24 hour FOREX market. The absolute most basic types of specialized investigation utilized as a part of FOREX are: 

* The Elliott Waves 

* Fibonacci contemplates 

* Parabolic SAR 

* Pivot focuses 

A considerable measure of specialized experts tend to consolidate specialized studies to make more precise expectations for your benefit. (The most widely recognized strategy for them is joining the Fibonacci concentrates on with Elliott Waves.) Others like to make exchanging frameworks with an end goal to over and again find comparative purchasing and offering conditions. 

Picking Your Strategy 

Best dealers will build up a technique and flawless it over a particular timeframe. A few individuals will concentrate on one specific study or estimation, while still a few others use expansive range examination as a method for deciding their exchanges. Most specialists would likely recommend that you have a go at utilizing a blend of both principal and specialized investigation, with which you can make long haul projections furthermore decide passage and way out focuses. Obviously, at last, it is the individual broker who needs to choose what works best for him. 

When you are prepared to begin in the FOREX market, you ought to open a demo record and paper exchange with the goal that you can rehearse until you can make a predictable benefit. Numerous individuals who fall flat tend to hop into the FOREX market and rapidly lose a great deal of cash as a result of an absence of experience. It is vital to require your investment and figure out how to exchange appropriately before you begin conferring capital. 

You additionally should be lager to exchange without feeling. You cant monitor all stop-misfortune focuses on the off chance that you dont be able to execute them on time. You should constantly set your stop-misfortune and take-benefit focuses to execute consequently, and dont transform them unless you completely need to. Settle on your choices and stick to them. Else you will drive yourself and your agents insane. 

You ought to additionally understand that you have to take after the patterns. On the off chance that you conflict with the pattern, you are simply upsetting your cash in light of the fact that the FOREX market tends to pattern more regularly than whatever else and you will have a higher shot of accomplishment in exchanging with the pattern. 

The FOREX business sector is the biggest business sector on the planet, and consistently individuals are turning out to be progressively intrigued by it. In any case, before you start exchanging, ensure your agent meets certain criteria, and take an ideal opportunity to discover an exchanging procedure that works for you.

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Online Forex Trading Strategy - forex power trading system free download

Online Forex Trading Strategy ~ forex power trading system free download

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

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Forex Trade Strategy Forex Trading Guide - forex channel trading system free download

Forex Trade Strategy Forex Trading Guide ~ forex channel trading system free download

The Traders Fallacy is one of the most familiar yet treacherous ways a Forex traders can go wrong. This is a huge pitfall when using any manual Forex trading system. Commonly called the "gamblers fallacy" or "Monte Carlo fallacy" from gaming theory and also called the "maturity of chances fallacy".

The Traders Fallacy is a powerful temptation that takes many different forms for the Forex trader. Any experienced gambler or Forex trader will recognize this feeling. It is that absolute conviction that because the roulette table has just had 5 red wins in a row that the next spin is more likely to come up black. The way traders fallacy really sucks in a trader or gambler is when the trader starts believing that because the "table is ripe" for a black, the trader then also raises his bet to take advantage of the "increased odds" of success. This is a leap into the black hole of "negative expectancy" and a step down the road to "Traders Ruin".

"Expectancy" is a technical statistics term for a relatively simple concept. For Forex traders it is basically whether or not any given trade or series of trades is likely to make a profit. Positive expectancy defined in its most simple form for Forex traders, is that on the average, over time and many trades, for any give Forex trading system there is a probability that you will make more money than you will lose.

"Traders Ruin" is the statistical certainty in gambling or the Forex market that the player with the larger bankroll is more likely to end up with ALL the money! Since the Forex market has a functionally infinite bankroll the mathematical certainty is that over time the Trader will inevitably lose all his money to the market, EVEN IF THE ODDS ARE IN THE TRADERS FAVOR! Luckily there are steps the Forex trader can take to prevent this! You can read my other articles on Positive Expectancy and Traders Ruin to get more information on these concepts.

Back To The Traders Fallacy

If some random or chaotic process, like a roll of dice, the flip of a coin, or the Forex market appears to depart from normal random behavior over a series of normal cycles -- for example if a coin flip comes up 7 heads in a row - the gamblers fallacy is that irresistible feeling that the next flip has a higher chance of coming up tails. In a truly random process, like a coin flip, the odds are always the same. In the case of the coin flip, even after 7 heads in a row, the chances that the next flip will come up heads again are still 50%. The gambler might win the next toss or he might lose, but the odds are still only 50-50.

What often happens is the gambler will compound his error by raising his bet in the expectation that there is a better chance that the next flip will be tails. HE IS WRONG. If a gambler bets consistently like this over time, the statistical probability that he will lose all his money is near certain.The only thing that can save this turkey is an even less probable run of incredible luck.

The Forex market is not really random, but it is chaotic and there are so many variables in the market that true prediction is beyond current technology. What traders can do is stick to the probabilities of known situations. This is where technical analysis of charts and patterns in the market come into play along with studies of other factors that affect the market. Many traders spend thousands of hours and thousands of dollars studying market patterns and charts trying to predict market movements.

Most traders know of the various patterns that are used to help predict Forex market moves. These chart patterns or formations come with often colorful descriptive names like "head and shoulders," "flag," "gap," and other patterns associated with candlestick charts like "engulfing," or "hanging man" formations. Keeping track of these patterns over long periods of time may result in being able to predict a "probable" direction and sometimes even a value that the market will move. A Forex trading system can be devised to take advantage of this situation.

The trick is to use these patterns with strict mathematical discipline, something few traders can do on their own.

A greatly simplified example; after watching the market and its chart patterns for a long period of time, a trader might figure out that a "bull flag" pattern will end with an upward move in the market 7 out of 10 times (these are "made up numbers" just for this example). So the trader knows that over many trades, he can expect a trade to be profitable 70% of the time if he goes long on a bull flag. This is his Forex trading signal. If he then calculates his expectancy, he can establish an account size, a trade size, and stop loss value that will ensure positive expectancy for this trade.If the trader starts trading this system and follows the rules, over time he will make a profit.

Winning 70% of the time does not mean the trader will win 7 out of every 10 trades. It may happen that the trader gets 10 or more consecutive losses. This where the Forex trader can really get into trouble -- when the system seems to stop working. It doesnt take too many losses to induce frustration or even a little desperation in the average small trader; after all, we are only human and taking losses hurts! Especially if we follow our rules and get stopped out of trades that later would have been profitable.

If the Forex trading signal shows again after a series of losses, a trader can react one of several ways. Bad ways to react: The trader can think that the win is "due" because of the repeated failure and make a larger trade than normal hoping to recover losses from the losing trades on the feeling that his luck is "due for a change." The trader can place the trade and then hold onto the trade even if it moves against him, taking on larger losses hoping that the situation will turn around. These are just two ways of falling for the Traders Fallacy and they will most likely result in the trader losing money.

There are two correct ways to respond, and both require that "iron willed discipline" that is so rare in traders. One correct response is to "trust the numbers" and merely place the trade on the signal as normal and if it turns against the trader, once again immediately quit the trade and take another small loss, or the trader can merely decided not to trade this pattern and watch the pattern long enough to ensure that with statistical certainty that the pattern has changed probability. These last two Forex trading strategies are the only moves that will over time fill the traders account with winnings.

Forex Trading Robots - A Way To Beat Traders Fallacy

The Forex market is chaotic and influenced by many factors that also affect the traders feelings and decisions. One of the easiest ways to avoid the temptation and aggravation of trying to integrate the thousands of variable factors in Forex trading is to adopt a mechanical Forex trading system. Forex trading software systems based on Forex trading signals and currency trading systems with carefully researched automated FX trading rules can take much of the frustration and guesswork out of Forex trading. These automatic Forex trading programs introduce the "discipline" necessary to actually achieve positive expectancy and avoid the pitfalls of Traders Ruin and the temptations of Traders Fallacy.

Automated Forex trading systems and mechanical trading software enforce trading discipline. This keeps losses small, and lets winning positions run with built in positive expectancy. It is Forex made easy. There are many excellent Online Forex Reviews of automated Forex trading systems that can do simulated Forex trading online, using Forex demo accounts, where the average trader can test them for up to 60 days without risk. The best of these programs also have 100% money back guarantees. Many will help the trader pick the best Forex broker compatible with their online Forex trading platform. Most offer full support setting up Forex demo accounts. Both beginning and experienced traders, can learn a tremendous amount just from the running the automated Forex trading software on the demo accounts. This experience will help you decide which is the best Forex system trading software for your goals. Let the experts develop winning systems while you just test their work for profitable results. Then relax and watch the Forex autotrading robots make money while you rake in the profits.
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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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