Watukushay No 5 An Excellent System Ready for Release ~ forex trading gambling

4:03 AM in 5, an, arbitrage, case, cop, currency, excellent, for, Forex, in, no, opportunities, ready, release, system, the, trading, usd, watukushay, weird

After a few months of testing and development I am glad to announce that the first release candidate for Watukushay No.5 is ready to be traded. Some days ago I talked about the first beta release and how I wanted to explore community based development before releasing the EA and after some limited success with this idea I have found enough profitable results for this system as to release the EA to all Asirikuy members. The release candidate of Watukushay No.5 will be ready for live trading featuring adequate error handling and functional decomposition with high-quality code that will allow us to have reliable and well-executed live trading results. During the next few paragraphs I want to share with you the importance of Watukushay No.5s achievements, a little bit about what I was able to achieve with this system and what it represents to the Asirikuy community.

As I mentioned on the previous post about this experts beta, Watukushay No.5 is a universal daily breakout system that is able to enter the market on a wide variety of circumstances adapting itself to the inherent characteristics of each different daily breakout it enters. Watukushay No.5 therefore belong to the same family as the turtle trading system and Kutichiy, aiming to profit from directional movements by entering the market after a given price value is broken towards the same side. However, Watukushay No.5 also includes a "fade mechanism" which also allows it to trade against breakouts and increases its flexibility to be profitable on currency pairs where fading certain movements is more profitable than trading the breakouts.

When I released the beta I had found the first EUR/USD profitable settings and I had some preliminary results for other currency pairs. Right now I am proud to say that I have reached profitable settings for this EA on the EUR/USD, USD/CHF, USD/JPY and GBP/USD. This is important since we only have a few systems that are able to trade the 4 majors and Watukushay No.5 will be able to introduce a lot of diversification power through its results on different currency pairs. Adding to this is the fact that the most profitable results (achieving a higher than 2:1 average compounded yearly profit to maximum draw down ratio) belong to the USD/CHF currency pair and NOT to the EUR/USD, giving us the power to diversify greatly against other trading systems like Teyacanani and Watukushay No.2 which achieve excellent results on this currency pair.
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Perhaps one of the most important things about this EA is its ability to constitute a viable portfolio on its own. The above image shows you the equity curve with yearly balance restarts (meaning that the internal balance of each instance is reset to the general account balance every 12 months) for Watukushay No.5 when trading the 4 majors at the same time. during the past 10 years. The portfolio of this EA achieves an average compounded yearly profit of 44% coupled with a maximum draw down level of 16% an excellent result only achievable up until now with a few other portfolios.

Despite the fact that all instances trade the same system it seems that maximum draw down periods do not tend to overlap since the different currency pairs are able to exploit their particular breakout inefficiency only under select market conditions that rotate amongst them. This in turn allows the different instances to hedge their draw down periods and achieve the above mentioned results which show this to be the case. Below you can also see the monthly profit chart for the portfolio obtained with 10 year backtests and a 1 year balance restarting technique. The system shows a high population of profitable months with a good number of highly profitable months that ensure the portfolios draw down remains under control. It is also worth mentioning that Watukushay No.5 was developed with all Watukushay Project principles in mind. The system was therefore developed with great care so that reliable simulations could be achieved.
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In summary, Watukushay No.5 is a great addition to Asirikuy featuring profitable results with similar draw down and profit targets on the 4 majors, a milestone achievement for Asirikuy portfolio system development. The system also showed excellent portfolio results, reason why its contributions to our long term profitability are bound to be important. Right now I have opened a poll within the Asirikuy community forum to choose a name for this EA and when the name is ready I will release the systems live trading version coupled with at least 2 account for live testing within Asirikuy.

If you would like to learn more about my journey in system development and how you too can develop your own likely long term profitable systems based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Broker Conspiracy Theories Are they True ~ forex trading get rich quick

4:43 AM in 5, an, are, broker, conspiracy, excellent, for, Forex, no, ready, release, system, theories, they, true, watukushay

If people new to forex trading have anything in common it is the overwhelming belief in the broker conspiracy theories. Ask ten people on their road to become successful traders about what they think regarding forex brokers and they will tell you that the main reason (or one of the main reasons) why they cannot profit as much as they want is because their brokers "play with them" in such a way that trading profitably becomes impossible (or much harder at least). The reasons why there is such a widespread belief in the broker conspiracy are many but the real question to ask is, is this conspiracy real ? Do brokers willingly play with their customers and mess with their execution and accounts in such a way that profitability is removed ? On todays post I will talk about these issues, giving you my opinion about the broker conspiracy theory and the consequence this has on your trading.

You have just bought your first extremely profitable scalping system, simulations show great results (although they are unreliable for this type of systems), your demo account shows great results and you are ready to jump into a live account with your first forex broker. You open up the account, fund it, get your VPS and start to trade your EA only to notice that your demo and live accounts almost never agree and your demo account is taking almost twice as many positions as your live trading account. Upon checking your live account you see a lot of spread widening, re-quotes and slippage that makes you think : the rumors were true, my broker is messing up my execution.

To tell you the truth, I do not believe in broker conspiracy theories because it is not in the main interest of a broker to harm their customers performance due to the fact that they make money from the spreads and this means that the longer it takes for a customer to lose their account, the more money they make. Generally what people perceive as their broker "messing with them" is nothing but the harsh reality of trading in the real market. Sometimes if the broker is a "market maker" this may become a little bit shady since the broker may make some decisions to protect itself from quick positioning or scalping, which they do not like due to the fact that they cannot properly hedge their exposure when such small and fast positions are opened. Such decisions may include spread widening, re-quotes, etc.

I have had my fair deal of experience with people in the broker industry (well known brokers at least) reason why I can tell you that most of the things you hear about are nothing but myths. Brokers are not "evil market makers" making money when you lose money, that to me seems like a childish way of putting things such as the brokers are "the bad guys" and you become the poor good guy/gal who could only make it if he or she wasnt screwed as much by the big guys. The first thing you need to do here is to take responsibility for your profits and your losses. Forex brokers are not responsible for your opening and closing of positions and therefore the fact that you attempt to use systems that simply dont work under real market conditions is not their fault.

However I always believe that you should always work with the worst possible case available such that your trading and decisions are as robust as possible. If there is a broker conspiracy and brokers will relentlessly prosecute and make certain systems (like scalpers) totally nonviable then you should focus on trading a system that is shielded from the power your broker has over your trading. Certainly it would not be very intelligent to trade a given system that you know depends greatly on execution variables your broker controls. If brokers do seek to make traders lose, then why in the world would you want to make it easier for them ?

In the end, if you profit or if you dont depends entirely on the decisions you make. If you trade systems that are very vulnerable to your brokers bidding then you will fall prey to the problems of real market execution and - if existent - to your brokers endless hunger for new traders flesh. As I said before the key here is to take responsibility for your trading and find systems that will allow you to trade with the smallest degree of dependency on live execution variables. Systems that trade in the medium or long term which do not have small take profit and stop loss targets will make you "immune" to any conspiracy since your broker will not be able to control your trading through the manipulation of execution variables.

However it is interesting here to note that I have never heard a profitable trader complain about execution related problems as a "broker conspiracy" since experienced traders know that this is a characteristic of the real market and that being successful despite their existence is one of the jobs YOU have as a profitable trader. It is irrelevant if these problems are or arent caused by your broker, if they are there and you want to be profitable then make your trading style such that these problems will have a small effect on your account balance. If you are suffering because of execution issues you should know that your trading style is what gives them the room to harm your wallet.

If you would like to know more about automated trading system development and how you too can design likely profitable trading systems please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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The Metatrader 5 Series Trying Metatrader 5 Porting Watukushay FE ~ forex trading jobs in dubai

2:36 PM in 5, fe, for, Forex, future, getting, metatrader, porting, ready, series, the, trying, watukushay

I have to confess that I was pretty excited last week when I learned about the release of the full metatrader 5 strategy tester. Being a fan of simulations to accurately model past trading I was dreaming about all the great enhancements that were now available and how all current Asirikuy systems would benefit from these implementations. This week I have been playing extensively with this new platform, mainly getting to know the MQL5 new programming language and all the "new ways" of doing things we must now relearn. I started by analyzing and understanding the sample experts released with the platform and later coded a few very simple systems to get to know the way in which things are done, indicators called, etc within this new trading program. On todays post I want to talk to you about my first "real exercise" which involved the porting of a preliminary version of Watukushay FE to metatrader 5. I will describe the process I went through, what I achieved and some of the things that surprised me when comparing results obtained with the Metatrader 4 backtester.

First of all, I have to say that coding experts for MQL4 has almost nothing to do with coding in MQL5. Almost everything is done differently and even though previous knowledge of MQL4 is useful, the truth is that several things like order placement, reading of indicator values, reading of bar values (high/low/open/close) and order selection are done differently. I found the approach implemented in MQL5 to be a little bit harder but yet a ton more flexible. This is particularly true of the new implementation of indicator and order handling which will now lend itself to an incredible coding flexibility. There are also some very useful functions included within the Trade.mqh file (downloaded with the platform) that will make EA programming a ton easier for those of you looking towards an "easier transition" from MQL4 to MQL5.

After familiarizing myself with the platform I decided to code the system that would be most easily available to all of you. Since Watukushay FE is the most widely used Asirikuy system -due to its free character- I decided to give the porting of Watukushay FE first priority. It is however important to say here that I did this porting merely as an exercise and it wont be the final release version of this EA for metatrader 5 which will probably take a few more months of polishing to develop (since we are currently developing a common MQL5 framework for Asirikuy systems taking advantage of the new classes implementation in this language). However the preliminary EA version I coded contains all the logic of Watukushay FE and follows the exact same logic as the MQL4 version in backtesting.

I have to say that I am amazed with the capabilities of Metatrader 5 regarding speed of execution. Simulations are not only fast but about an order of magnitude faster than in Metatrader 4. Watukushay FE runs a 10 year simulation in MQL4 in about 5 minutes while the Metatrader 5 implementation takes a little bit more than 30 seconds. Added to this absolutely great feature is the fact that multithreading is available for optimizations meaning that I can run a full 200 run optimization in less than half an hour when it previously took about half a day. Being able to run optimizations in parallel is a blessing and it will most likely open up the doors towards the finding of many profitable instruments and setups not currently used with Asirikuy systems. Below you can see an image of an optimization running on the 4 cores of one of my beloved quad processors.
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You are probably also wondering how the Metatrader 5 backtesting results compare with the Metatrader 4 results and I would have to tell you that the results are a little bit puzzling to me. Watukushay FE is definitely long term profitable on both platforms but results are overall much better in Metatrader 5 when compared with the MQL4 version. The nature of this difference seems to be the difference between data sets. Since this version of Metatrader is new, we could assume that the data quality and interpolation mechanisms are better but such an assumption would have to be proved. Right now I am pleased to tell you that the EA - with the exact same settings - performs better on MQL5 and the Metatrader 5 data than on the Metatrader 4 version, meaning that -if anything- Watukushay FE is as good or better than what we think.
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There is also a ton more of things to discuss regarding the optimizations of Watukushay FE and the new features and results available within the Strategy tester but for today I think that all the above information is enough :o). I have now started this series of posts called "The Metatrader 5 Series" which will deal with topics related to simulations, programming and overall features of this new Metatrader 5 platform which is bound to become the standard within the next few years in automated trading. During the next few weeks I will release several new posts on Metatrader 5 and probably Asirikuy members will also be able to enjoy a few videos on the matter :o)

If you would like to learn more about automated trading and how you can code your own likely long term profitable systems based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Gold trading strategy medium term release September 11 (updated) ~ forex trading brokers

11:27 PM in 11, 5, and, farm, Forex, gold, medium, non, release, september, strategy, term, trading

Gold trading strategy medium-term release September 11,2014 . Target : 1219 USD/oz.

USD remains near its highest level in six years against the yen and rose against the euro.
In fact, the dollar is at the heart of the currency markets in recent weeks, in part because investors remain concerned about the time the Federal Reserve (Fed) interest rate. Dollar increase is the main cause of the price of gold fell sharply.

Strategy medium-term:
Sell: 1245 - 1250 USD/oz
Stop loss: 1259 USD/oz
Take Profit: 1228 - 1219 USD/oz

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Trading Binary Options through Forest Park BX on Cantor Exchange ~ forex trading news today

9:05 PM in 10, 11, 5, atm, binary, bx, cantor, exchange, forest, Forex, joaquin, on, options, park, results, signals, through, trading, twitter

Earlier this year, Cantor Exchange teamed up with an introducing broker, Forest Park BX, to introduce traders to new opportunities by trading CFTC regulated binary options in a different way than ever offered before. This has been a work in progress but seems to be paying off in a multitude of ways.

Cantor Exchange has a parent company named Cantor Fitzgerald that serves more than 5,000 institutional clients. Forest Park BX has a sister company named Forest Park FX that lowers trading costs for forex traders worldwide.

Traders can now enter the regulated binary options market with small accounts. Before Cantor Exchange (otherwise known as CX) began offering this option, the only way traders could participate in the market was either having large accounts or risking a large portion of their accounts on each trade.

For instance, if a trader wants to trade with the competitor of CX, (Nadex) they have to trade with $100 binary options contracts. Taking an At the money trade will cost $50. CX now offers similar contracts for a very small amount of $0.50 per contract for an At the money trade. The entire contract is collateralized as a $1.00 contract.

I took a survey a while back on the average account size of regulated binary options traders and found that the average account size was $500-$1,000 for the group surveyed. For a trader with a $1,000 account, taking an at the money trade, he is risking a whopping 5% on each trade. This is considered an abnormally large risk in the trading realm.

Cantor Exchange offers fifty cents of risk for that similar trade. A trader with a $1,000 account can easily trade a  fifty cent contract, without the worry of blowing up their account. They can also leg into positions, trade multiple strikes at the same time, and manage risk far better than with the current competitor.

Now where does Forest Park BX fit into this whole arena? This is the company that will ensure you have a quality experience trading on the exchange. Just like when you have trading questions with a stock broker, you would not want to call up the New York Stock Exchange every time you experienced an issue. Forest Park BX is there to make sure your trading is facilitated easily.

Cantor Exchange also offers free API access. The competitor, Nadex, offers API access for expensive fees. This free, open source, access will allow any trader with programming knowledge to program their own indicators and automated strategies for regulated binary options via the mt4 platform as well as any other programming they feel the need to do. This is going to open up the way for tools such as web applications, etc... to work their way all across the internet. So far, this has been limited to only the best funded traders at Nadex due to the sheer cost and capability.

Commissions are another great factor with Cantor Exchange. There are zero fees associated with market orders. Nadex charges .90 commission to open any trade. Limited orders are a penny per contract with CX. 

One of the best things, since sliced bread, with Cantor Exchange is their rolling strikes. A rolling strike is a strike price that opens up no matter how far the market moves. On Nadex, if the market price moves X number of pips, you can run out of strikes. If you run out of available strikes, then you can not trade, you cant manage any open positions, and you cant hedge. On CX, it does not matter how far the market moves, there will always be the available strike so you will be able to trade at any price level.

The asset range on CX is a bit limited because the exchange is growing. As they grow, so will their product lines. Currently they offer 5-6 forex pairs and gold. In the near future, oil will be offered as well as an index.

Education about trading on the exchange is also a bit limited as well but I am looking to change that in the near future. Traders will need to know and understand trading principles before jumping in. Below I will show a few very basic aspects about trading through Forest Park.

1.What is a strike price?

2. What is an out of the money binary option?

3. What is a call?

4. What is a contract expiration?

5. What is an in the money binary option? 

6. What is a put?

7. What does at the money mean?

Above are some simple binary options terms. Stay tuned with Joaquin Trading to bring you more education in the coming days.

Here is what I have in store...

The basics of trading on Cantor Exchange via Forest Park BX.
(A video Series)

Each video will be around 5 minutes long and teach basic structure.

1. What is a binary option?
2. CFTC Regulated binary option vs. unregulated
3. How are binary options different from traditional options?
4. What is a stike price?
5. What is an expiration time?
6. What is a put?
7. What is a call?
8. What is a bid/ask spread?
9. Buying a put or call in the money
10. Buying a put or call at the money
11. buying a put of call out of the money
12. Settling in the money
13. Settling out of the money
14. Settling at the money
15. Closing early at a profit
16. Closing early at a loss
17. Legging into a position
18. Trading multiple stikes
19. What is a GTC order?
20. What is an IOC order?
21. What is liquidity?
22. What is an underlying asset?
23. What are the trading times of each asset?

24. What is hedging?
25. What is Risk Vs. Reward?
26. What is forex?

BASIC TRADING STRATEGIES

27. Trading Support and Resistance
28. Trading Trend Lines
29. Trading Standard Deviation
30. Trading a Triangle
31. Trading a Flag
32. Trading a Moving Average Crossover
33. Trading the RSI
34. Trading the News
35. Trading a Straddle
36. Trading a Butterfly
37. Trading a Binary Collar

MONEY MANAGEMENT

38. Compound Interest
39. Trade Small
40. Martingale Myth
41. Adding to a winner
42. Adding to a loser
43. Risk Vs. Reward

TRADING PSYCHOLOGY

44. Know yourself
45. Why do the majority of trader fail?
46. How to stick with a system

BUILDING A SYSTEM

47. So you want to create a trading strategy?
48. What is back testing?
49. How to Back Test
50. Why to hire a programmer
51. How to Forward Test
52. Automating your System

WEALTH BUILDING

53. Increasing your position size as your account grows
54. Tax Implications

55. Mindset for wealth


Alrighty then! That was my 2 cents worth of thoughts. See you next time and happy trading!



If you are interested in trading with Forest Park BX on the Cantor Exchange, please visit forestparkbx.com . 

If you are interested in learning more about these regulated binary options and how to trade them, visit joaquintrading.com

Follow the fastest growing face book group related to Cantor Exchange.  facebook.com/groups/cantorexchange

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Getting Ready for the Future Metatrader 5 ~ forex trading jobs in bangalore

3:23 AM in 5, about, depth, for, Forex, future, getting, is, it, market, metatrader, not, only, ready, spread, the, understanding

Finally on June the first we saw the first official release of the Metatrader 5 trading platform which has the mission to replace one of the most popular and widely used trading platforms in retail forex trading. Definitely the task for Metatrader 5 is not easy since its predecessor is very powerful and has become the "industry standard" when dealing with automated trading systems for the regular investor. On todays post I want to talk to you about Metatrader 5, some of its pros and cons as well as the journey that I will be taking to produce mql5 versions of all Asirikuy trading systems. Is there anything good about Metatrader 5 ? Is it bound to be a great improvement over metatrader 4 or are we talking about a windows vista Vs XP type change ? Keep reading to find out.

I have to be honest with you and tell you my honest opinion about this new trading platform. I think that the people at metaquotes have done a good effort but I think they have neglected some key aspects that needed to be changed which could have brought an enormous benefit to the retail trader and their platform. Definitely there are several features I wanted to see on metatrader 5 that never got to be implemented like renko charts, tick charts, etc but perhaps the most important feature that wasnt implemented was real tick data logging and accurate backtesting.

Certainly the Metatrader 5 backtester has significant advantages over its current Metatrader 4 counterpart. Amongst these are the fact that data is downloaded and update automatically, there is support for several cores (multi-threading) and there is the ability to remotely login into your computer to see the progress and results of your backtesting results. Overall this will make the Metatrader 5 backtester much faster and robust, however the fact that tick interpolation algorithm is still used will make exploitation of backtesting reliability problems still a significant issue, we will probably still see the regular 97 USD expert advisor based on unrealistic profit targets taken from absurd backtests. However I have some hope in the sense that the interpolation algorithm was actually improved with the objective of removing these problems but we are still to see if this will or will not be true. The ability to use multiple pairs on backtesting- something that was previously not possible - is bound to be one of the greatest advantages of the Meatrader 5 backtester over the current backtester implementation.
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I am also excited about the Metatrader 5 new language- mql5 - and the included debugger within the Metatrader 5 platform. Any serious developer out there will tell you that the mql4 editor was a piece of garbage since no debugger was included and an extensive use of the Print function was needed to see where things were going wrong. However, the new debugger will make developing much easier and the actual addressing of problems in coding much easier. However I think that it was a very big and absolutely awful mistake not to include back compatibility with mql4 in Metatrader 5. Even though the new mql5 language is much better, including support for previous code seemed like something important to do since many people already have their strategies or efforts coded on the language of Metatrader 4. People will now have to pay to have their experts recoded or go through the process of learning a whole new programming language to be able to trade with the new platform.

So is Metatrader 5 a huge improvement over Metatrader 4 ? I would have to say that regarding automated trading the answer seems to be - we still dont know. We need to have a few live brokers that will accept this platform so that we can start testing mql5 systems. We will also need to first translate some systems into mql5 to compare backtests and see the actual quality improvements we get when changing from one strategy tester to another. I can tell you that I am excited abou the possibilities and I hope that the Metatrader 5 backtest will be all that it has been promised to be. I think that obviously our evaluation speed will be increased and our ability to use our systems on other currencies will also be expanded.

During the next few months I will start the porting of all Asirikuy systems to the new MQL5 language so that we can start to see some of the characteristics of the strategy tester and some comparisons between the simulations obtained with both backtesters. You can certainly expect some hopefully interesting blogposts about this during the next few months. If you want to learn more about automated trading and how you can develop your own long term profitable systems using sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Gold and Non farm release September 5 (updated) ~ forex trading app

8:16 AM in 2, 5, and, farm, Forex, gold, medium, non, release, september, strategy, term, trading

Gold trading strategies and non-farm release September 5,2014.
Price trends : fell before rising back
Strategy

Buy limit: 1260 - 1262 USD/oz
Stop loss: 1256.30 USD/oz
Take Profit: 1275.50 USD/oz

 
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Watukushay FE An Intra Instrument Experiment Part No 1 ~ forex trading journal excel

2:46 PM in 1, 5, an, experiment, fe, Forex, instrument, intra, metatrader, no, part, porting, series, the, trying, watukushay

One of the best things about the new metatrader 5 platform - as I mentioned on a previous post - is the extreme quickness in which backtesting and optimizations can be done. It is remarkable how I can now do a 200 run optimization in less than an hour while previously it took more than 5 or 6 hours and even 24-48 for certain trading systems. After porting Watukushay FE and enjoying this very fast simulations capability I decided that it was time to try a multi-instrument approach for this freely available trading system. Certainly I had donde some experiments before on the USD/CHF and the GBP/USD but I had never been able to try as many combinations and settings as I wanted to due to the inherent slowness of MQL4 based backtesting. On today and tomorrows post I want to show you some of the results of my studies on several currency pairs for Watukushay FE and how these results show us a very wide and unique perspective about the Watukushay FE trading system. For those of you who do not know anything about Watukushay FE it is a freely available trading system I coded available at http://watukushayfe.blogspot.com.

It is important to note here that I coded Watukushay FE based solely on my observations of the RSI and trend behavior on the EUR/USD and I had never thought about making this expert trade on other instruments when I first designed and implemented its logic. It is a fallacy that a "good system" should work on "all" currency pairs as it tackles a "vital aspect of market psychology" since different pairs have different trading makeups and volumes which make their particular price action very different. Pairs that people may regard as similar such as the EUR/USD and the USD/CHF are in fact tremendously different with many systems that work on the EUR/USD failing to work on the USD/CHF and vice versa. Some of the reasons why this happens include bank intervention, liquidity, volume, trade deficit difference, etc.

However it is always interesting to look at the performance of systems on other currency pairs since it brings a hint about the differences between instruments, showing us why a system may work on one and not on another. Understanding and knowing the true nature of these differences allows us to develop systems that are "adapted" to each different currency pairs trading nature. An analysis of these differences also allows us to change the design of a system- particularly its exit logic- to better exploit inefficiencies found in a particular instrument.

The first think I did with Watukushay FE was to run the "standard" settings derived from very coarse optimizations on the EUR/USD on the GBP/USD, USD/CHF, AUD/USD and USD/CAD (10 year backtests on Metatrader 5). The results are indeed good -as shown in the graphs below- in the sense that the system is profitable in the long term on all of these currency pairs, however it is important to say here that profitability is much lower than on the EUR/USD with most of these pairs reaching only a compounded yearly profit to maximum draw down ratio of 1:3 to 1:5. This shows us that the system tackles a market inefficiency that is present to a certain extent on all these currency pairs but unfavorable conditions are much more frequent than on the EUR/USD.
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It is evident when comparing the different equity curves that the smoothest of them is the EUR/USD which - of course - achieves the best results. We see that Watukushay FE has smooth periods of profit on most of these instruments but unprofitable periods are simply very destructive for the other pairs while they are only mild for the EUR/USD. Even tough the equity curves seem to show us that all instruments could be traded profitably the potential reward for instruments other than the EUR/USD is simply not enough to compensate for the risk taken. The deeper draw down periods also make Watukushay FE on other currency pairs far more difficult to trade also limiting risk escalation to a great extent.

However it is clear that some very interesting questions arise. Is it possible to do coarse optimizations on other pairs to find more EUR/USD-like results ? It is possible to implement small modification to the logic that improve the trading technique significantly ? Are there any other instruments worth trading for Watukushay FE besides the EUR/USD ? I will tray to address some of these questions on tomorrows post. If you would like to learn more about Watukushay FE and all the Watukushay Project experts please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Watukushay No 5 The Aussie and the Kiwi More Encouraging Results ~ forex trading guide for beginners pdf

10:36 AM in 5, and, are, aussie, broker, conspiracy, encouraging, Forex, kiwi, more, no, results, the, theories, they, true, watukushay

During this weekend I released the first official version of Watukushay No.5 coupled with all its 10 year backtesting data showing profitable results on 6 different currency pairs in Asirikuy. From my last post about this EA you might remember that Watukushay No.5 had been tested on the EUR/USD, GBP/USD, USD/JPY and USD/CHF, however at that time I hadnt completed my analysis on two other currency pairs that also show us great results with this strategy despite their overall lack of liquidity, the AUD/USD and the NZD/USD. On todays post I want to share with you some of the results of the EA on these currency pairs and how the EA is able to use a completely different trading technique to profit from the different trading mechanics of these two instruments.

As you may already know, Watukushay No.5 attempts to exploit breakout inefficiencies on the different currency pairs. On the 4 majors this is done by exploiting periods of low volatility when the currency pairs form significant ranges, entering breakouts when important moves develop within the following trading sessions. However, these trading tactics do not work well on the AUD/USD and NZD/USD, not only because they tend not to form areas of compact trading but due to the fact that this areas do not lead to successful or unsuccessful breakouts with any statistical significance. In the end if you try the same tactics as with the majors you will obtain slightly profitable results which are definitely not worth using in live trading.

Upon my analysis of these two instruments it became clear that I needed to think the problem from another perspective if I was going to find any profitable results for this EA on these two pairs. This meant going back to a meticulous analysis of the currency pairs and the way in which the medium and long term trends develop within them. After spending a few days working on this I finally realized that the key was to rely on breakouts of more volatile sessions but aiming at much higher take profit and stop loss targets. The idea was that this large breakouts do allow us to predict long term trend direction with a good statistical edge in the long term.

Backtesting results were indeed very encouraging showing me that my analysis had been right. When you exploit this different and larger breakouts on the AUD/USD and the NZD/USD, you obtain some very profitable results which are achieved as the EA is able to follow long term trends through the periodical entering of this large session breakouts. The effect resembles the accumulation technique used by the turtle trading system, allowing us to follow a trend and greatly profit from its long term direction. Below you can see a picture of how this trading works on the NZD/USD, notice how the EA got a lot of profit from a developing trend.
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The 10 year backtesting results also give us great results for both of these currency pairs. We arrive at results which have average compounded yearly profit to maximum draw down targets better than Watukushay FE and the same as Teyacanani on the EUR/USD in the case of the NZD/USD. Surprisingly, the best trading results for this EA have been found on the NZD/USD, showing us the robustness of this strategy as a portfolio solution. The EA shows us its robustness and its ability to exploit two completely different market inefficiencies based on the same trading mechanics but aiming for entirely different things.
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Later today 3 live accounts with real money will be added to Asirikuy to start the testing of the system on the USD/CHF, NZD/USD and a full portfolio setup. Hopefully within the next year we will be able to gather some very useful information about its trading system, its tactics and its ability to tackle changing market conditions. The ability of this EA to adapt to each particular market situation and its very large set of adaptive parameters will probably lead it to succeed in this quest against market changes.

If you would like to learn more about automated trading and how you too can develop your own likely long term profitable systems please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Joaquin Trading ATM Twitter signals Results 5 10 11 (updated) ~ forex trading news live

4:07 PM in 10, 11, 4, 5, atm, Forex, free, joaquin, may, results, signals, through, trading, trial, twitter

Joaquin Trading ATM Twitter signals Results 5/10-11/2015


JoaquinTradingNadex ?@NadexTrading   58m58 minutes ago
NADEX SIGNAL(EUR/USD)1.11416, SELL, 42135.5
12:03 PM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   58m58 minutes ago
NADEX SIGNAL(USD/JPY)120.059, BUY, 42135.5
12:03 PM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   2h2 hours ago
NADEX SIGNAL(USD/JPY)119.9, SELL, 42135.416678241
10:11 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   3h3 hours ago
NADEX SIGNAL(USD/JPY)119.902, BUY, 42135.375
9:08 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   5h5 hours ago
NADEX SIGNAL(USD/JPY)119.872, SELL, 42135.291678241
7:02 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   6h6 hours ago
NADEX SIGNAL(EUR/GBP)0.72255, SELL, 42135.25
6:13 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   6h6 hours ago
NADEX SIGNAL(GBP/USD)1.54464, BUY, 42135.25
6:13 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   7h7 hours ago
NADEX SIGNAL(USD/CAD)1.21343, BUY, 42135.208344907
5:10 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   8h8 hours ago
NADEX SIGNAL(GBP/USD)1.54265, SELL, 42135.166666667
4:23 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   9h9 hours ago
NADEX SIGNAL(EUR/GBP)0.72514, BUY, 42135.125
3:03 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   9h9 hours ago
NADEX SIGNAL(EUR/USD)1.11908, BUY, 42135.125
3:03 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   9h9 hours ago
NADEX SIGNAL(USD/CAD)1.2114, SELL, 42135.125
3:03 AM - 11 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   14h14 hours ago
NADEX SIGNAL(USD/CHF)0.93315, BUY, 42134.916666667
10:15 PM - 10 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   15h15 hours ago
NADEX SIGNAL(USD/CHF)0.93255, SELL, 42134.875011574
9:13 PM - 10 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   16h16 hours ago
NADEX SIGNAL(USD/CHF)0.93162, BUY, 42134.833333333
8:09 PM - 10 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   16h16 hours ago
NADEX SIGNAL(EUR/USD)1.11956, SELL, 42134.833333333
8:09 PM - 10 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   19h19 hours ago
NADEX SIGNAL(USD/CAD)1.20877, BUY, 42134.75
6:01 PM - 10 May 2015 · Details
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 JoaquinTradingNadex ?@NadexTrading   19h19 hours ago
NADEX SIGNAL(USD/JPY)119.762, BUY, 42134.75
6:01 PM - 10 May 2015 · Details
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The Metatrader 5 Series When Huge Backtesting Differences Appear ~ forex trading journal

9:35 PM in 5, answering, appear, backtesting, differences, every, Forex, huge, if, intelligent, metatrader, series, the, trading, what, when

If you look at my last few weeks of posts I have been very excited about the new qualities of the Metatrader 5 trading platform and the benefits it brings to system development regarding faster execution, faster optimization and added flexibility. Using my prototype implementation of Watukushay FE I analyzed trading over several different instruments and I finally came up with the "starting point" of intra-currency trading for this well-known freely available trading machine. This week I decided to do a small experiment and compare my results of Watukushay FE for the AUD/USD on Metatrader 5 with those found out with Metatrader 4 and the results found were extremely surprising. On todays post I want to talk about my findings, the possible causes of the issues found and what I will be doing to investigate the nature of this problem and what solutions can be implemented to deal with it.

During the first post comparing Metatrader 4 with 5 and the backtesting results of Watukushay FE we already saw a small yet noticeable difference between the testing results obtained on both trading platforms. I talked about the possibility of these errors being feed-related and the fact that the Metatrader 5 history feed might be more reliable since it has been "remastered and fixed" for this new platform. However the difference was small and therefore there was no substantial issue besides an anecdotical note pointing out this curious fact.

However when I decided to run the initial AUD/USD tests on Metatrader 4 to compare the results I obtained with Metatrader 5 the difference changed from "noticeable" to "abismal". The pictures below show you the results for MT5 and MT4 using the exact same settings on the AUD/USD currency pair backtest from 2000 to 2010. The overall equity curve is very different and the results do point out that something is substantially very changed between the historical feeds of MT4 and MT5. I first thought that the difference would be due to the presence of Sunday candles but this turned out to be false since the MT5 feed doesnt have any of them, so regarding this aspect it is the same as MT4. I then thought about the possibility that the whole difference is caused by important changes in data prior to 2006 (before metatrader 4 was launched) and the fact is that data differences are NOT limited to pre 2006 periods, the whole historical feed is different between both trading stations and meaningful differences are present. If you analyze the results youll notice that almost all candles have different - if only very slightly - high/low/open/close values pointing out that RSI and ATR values will be very different. The change in one minute interpolation mechanisms is also not likely a factor here as Watukushay FE strictly controls bar opening on both its MQL4 and MQL5 implementations.
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What causes such a dramatic change in profitability ? To get to the bottom of this problem I decided to strip down the logic to its simplest form and eliminate the closing logic of the EA, leaving only the entry rules. This shows us that there is still some difference between backtesting results (shown below). This means that differences in results are caused by differences in the RSI and ATR indicator calculations which are dependent on each backtests particular historical feed. Stripping down the logic does reveal that most dependency is located before 2002 with results beyond this date being in better agreement. However there is still some dependency which is caused by differences in data between both historical sets beyond this period.
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Since we simply cannot know for sure which of the two historical data selections is better - and they are probably both valid within normal broker differences (with the 2000-2002 data being very different probably due to differences between feeds in this period) - it becomes a wise decision to run backtests on both and trust the less profitable results to calculate profit and draw down targets. In some cases like the EUR/USD backtests this proves to be trivial but on others like the one I showed you today doing this mixed analysis proves to be extremely important. I will email the people at metaquotes to get some information about the different nature of the feeds and I will let you know once I have more information about their origin. However up until now all backtests of Watukushay FE seem to be more profitable on MT5 (meaning that our MT4 simulations are in fact the worst case scenario). Investigating other issues which may be related with the closing mechanism of orders in MT5 is also something I am currenlty doing since I have seen that the differences when the closing logic is enabled seem to have other strong causes besides simple feed dependency (more on this on a later post !).

If you would like to learn more about automated trading, the evaluation of expert advisors and the programming of your own strategies please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Liquidity in Forex Part No 2 Analyzing the Liquidity of Different Pairs ~ forex trading good or bad

5:10 AM in 2, 5, analyzing, and, aussie, different, encouraging, forex, in, kiwi, liquidity, more, no, of, pairs, part, results, the, watukushay

On yesterdays article - which was part No.1 of this post - we talked about the definition of liquidity and the implications of high and low liquidity levels on the forex market. Today we are going to give an in-depth look to liquidity in the forex market, particularly I will talk about recent literature in economics dealing with the evaluation of liquidity on several different currency pairs and what we can conclude and use from this analysis. After reading this article you will have an idea about which are the most liquid and illiquid currency pairs, something which should give you a good idea of what pairs you would want to focus on for the development of mechanical trading strategies.

First of all, it is important to understand that liquidity in forex in simply a pain to research. In order to investigate the liquidity levels of any given market instrument we need to have all transaction information including, type, volume and time. This means that we need access to the "books", the registry where all the transaction information of a given broker is kept. Since there is no central exchange in forex, we cannot get the real liquidity values but if we choose a broker that uses a large array of liquidity providers and we take a look at all their transaction we might be able to draw some general conclusions regarding overall pair liquidity values (at least relative to each other).

The Swiss National bank published a paper a few months ago dealing with the evaluation of liquidity on the FX market (you can access it here). Besides discussing previous literature findings regarding forex liquidity the authors investigated the liquidity levels of several different currency pairs using data from 2007 to 2008. The authors used a daily reversal measurement (explained within the paper) of liquidity in order to get a comparable to number to use between the different currency pairs.
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The studys first findings show us that the EUR/USD and USD/JPY were the most traded instruments during the testing periods while the AUD/USD and USD/CAD had the lowest trading volume. The authors also emphasize on the fact that even though the GBP/USD is an important pair it is very illiquid when compared to the EUR/USD, confirming the findings of previous studies and pointing to the reason why the development of GBP/USD based systems is far more difficult than for the EUR/USD since the lower liquidity makes inefficiencies harder to exploit in a mechanical fashion.

Another interesting conclusion is the high liquidity of the USD/CHF and EUR/CHF during this period which the authors attribute to the safe-heaven status of the frank and the economic crisis during 2007-2008. The study also shows us that liquidity is not constant but changes considerably over time with most currency pairs starting to lose liquidity around August 2007 (carry trade unwinding) rebounding slightly and then resuming the downtrend at the end of this year. This analysis shows that stressful periods in the market are characterized by important drops in liquidity having a very strong relationship with risk sentiment.

Perhaps the most important contribution of this article is the development of ways to measure liquidity and the finding of correlations of FX pairs liquidity with other financial instruments or markets where liquidity is more easily measured. This in turn would allow investors to watch for drops of liquidity, something that could be especially important to those investors looking to shield themselves from crisis periods (investors involved in carry trades for example).

Of course, for us the most important findings are the relative levels of liquidity of the different pairs and their relative relationship. From the above mentioned study we can see that definitely system development should be focused on the EUR/USD and USD/JPY while longer term strategies aimed at "harder" to trade instruments should be used on pairs like the GBP/USD and the USD/CAD.

If you would like to learn more about system development and how you too can develop systems for these currency pairs with sound trading strategies please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Trading the Noodle Soup Discovering the Power of Guppy MA trading ~ forex trading faq

10:51 AM in 5, and, crosses, discovering, encouraging, first, Forex, guppy, jpy, ma, no, noodle, of, power, results, soup, the, trading, watukushay

I have always believed that the best trading techniques are the simplest ones. I have realized time after time that complexity is not always the key to success in forex trading and system development and that the use of very simple trading techniques that tackle fundamental aspects of market behavior brings us better results and -more importantly- far more robustness than the more "fancy" and complex trading techniques. One such trading technique which I have always found simple and very good at giving us a general picture of overall market behavior was developed by Daryl Guppy, an Australian trader. Within this article I will talk a little bit about the idea behind the GMA technique (Guppy Moving Averages) as well as its application for the development of successful systems.

The Guppy Moving Average method - which is how I believe it should be called - is nothing more than a simple template that puts certain indicators on the chart in the hopes that they will make trending price action much more evident and easier to handle. This method tells us to use the 30, 35, 40, 45, 50 and 60 slow moving averages and the 3, 5, 8, 10, 12 and 15 fast moving averages. The Guppy method teaches that the first group corresponds to the "long term trader behavior" while the short group corresponds to the "short term trader behavior". Guppy seems to have understood these moving averages as the representations of the behavior of short term and long term traders within the currency market.

Obviously when you look at a chart - especially at strong trending periods - through the Guppy lens, things seem to align perfectly with what you would expect and trending price action seems to become crystal clear. Below you can see an example of such a period on the EUR/USD. You can notice perfectly how the fast moving average group "collapses" when we are within the retracement of a long term trend while the slow group remains showing us overall trend direction. Guppy Moving Average charts have always reminded me of noodle soups (because of all the lines and their interactions) reason why when I trade with Guppys indicator setup I like to refer to it as trading the noodle soup.
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However after you spend sometime studying the GMA and its actual use to create a real trading system which succeeds in time you will notice that it is not very straightforward to do. Although many websites on the internet talk about the GMA method, how to setup the charts and the general information given by the interaction of the moving averages none of them describes a real system which allows us to mechanically apply the GMA to obtain long term profitable results. As always it seems that all we have is some pretty noodle soups and no idea of how to interpret this information to arrive at a system that is able to exploit the information shown on the screen to our advantage.

It is fairly obvious that the GMA method is not without its problems and obviously this makes its mechanical application difficult at first. However after analyzing a lot of the characteristics of the GMA and the way the two groups of moving averages interact I was able to come up with a simple yet powerful system that allows us to exploit long term trading behavior within the daily charts in a mechanical way with precise sets of rules on several different currency pairs (ten year backtest of the EUR/USD shown below). This is indeed a fairly simple moving average based system (with the moving averages used by Guppy) that achieves profits in the long term (note that these simulations on daily charts are bound to very live/back testing consistent).
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The specifics of this trading systems rules will however remain hidden for the moment as I believe this idea and its results will form part of a future Currency trader magazine article and they will be further polished to become a future Asirikuy trading system. If you would like to learn more about my automated trading systems and how you too can design and build your own reliable strategies with sound risk and profit targets please consider joining Asirikuy.com, a website filled with educational videos, trading systems, development and a sound, honest and transparent approach to trading systems. I hope you enjoyed this article ! :o)

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