Pair Trade instructions ~ forex trading on f1 visa

4:23 PM in about, all, Forex, instructions, its, pair, risk, trade

For my clients...

Here are the instructions and rules of the pairs trade I will send to you at 6pm tonight.

1. In order for this type of trade to have a chance to work, you have to take BOTH trades and you have to hold them till expiration OR close them both with a profit of more than $20 (include your commissions of 3.60) so actually hold this till you have a profit of $23.60 or more. You can not take one or close one or it will not work.

2. If you take the trade, do it in DEMO only because this trade may be a bit scary at times. Prices should move back together but they may also move wide apart from each other so remember...DEMO only till you know how this type of trade makes you feel emotionally. This trade is based on price discrepencies in the market

3. This type of trade has a high win percentage and if you like it, I will look for more for you guys. They can be taken every day. They usually win for 4-5 days in a row then lose for a couple of days in a row...win for 4 or 55...lose for 2...so forth and so on.

Here is an equity graph of a test of what it looks like.

Click on the picture to enlarge it. Look at the graph on the right. This is a potential equity graph over 3 weeks. I posted a longer version in the facebook group "nadex trading ideas" for you.

alrighty...until 6pm eastern...

Yall are awesome! thank you for all the neat little chats we have throughout the day!

OK...Until 6pm eastern


Thanks

Ryan

forex trading on f1 visa

Read more

About adding a little bit of risk to bull spreads ~ forex trading optionshouse

11:54 PM in a, about, adding, bit, bull, double, e, Forex, h, happened, hockey, little, of, risk, spreads, sticks, the, to, today, what

Ok Clients, Remember...

This is a different way to trade so if you are not comfortable doing what I am getting ready to layout, you dont have to nor should you. Its all based on how you want to manage your account.

I see a lot of new traders averaging down to try to "BE RIGHT" on their trade. This method blew out 9 of my accounts in the past and I highly suggest NOT doing it with one exception. Bull Spreads. A trader can do this effectively on bull spreads because you know your max risk.

This is about the safest way to "Average Down" because you know what your max loss is. Still remember that averaging down is not for the low funded account. Try it on demo if you are inclined
------------------------------------------------------------------------------------------------------------

Everything I am going to talk about is based on the "Wally World 6 Million" trade below

Daily 415pm Expiration 16000-16400             16030  16036
Daily 415pm Expiration  15400-16200            16002  16007
Daily 415pm Expiration 15600-16000             15980  15985
Daily 415pm Expiration 15600-16400             15995  16000
----------------------------------------------------------------------------------------------------------

If I am going to buy 16000-16400 and sell the 15600-16000 then I want to get the closest price possible to the floor, right? well right now the price shows 16036 which is 30something points higher than the actual underlying price.

If you want to trade 7 contracts but you want to minimize your risk. You can place buy orders:

Buy 1 @ 16036 This will put you in the trade.
Buy 1 @ 16026
Buy 2 @16016
Buy 3 @ 16006

Your average price will be 16016.

Your max risk will be $112 for 7 contracts. You can know that you wil not lose any more than $112 if your trade fails.

Each point will be worth $7 so if price moves 50 points in your favor, then your profit will be sitting at a $280 profit. If price does what it did Thursday and over 300 points in your favor, you will be sitting on a profit of $2,100

If price falls 300 points against you, your max loss is $112.

forex trading optionshouse

Read more

Forex Expert Advisors Forex STF an Unbiased Review ~ forex trading in spanish

12:57 PM in about, accurate, advisors, an, data, expert, forex, in, is, review, simulations, stf, talking, trading, unbiased, what

On this post I will deal with the review of one of the most recently released automated trading systems. This expert advisor promises gains of more than 1440% with small draw down levels and claims profitable trades of +600 trades. Will the Forex STF system be able to live up to its claims ? On the following paragraphs I will be reviewing this experts website, particularly I will take a deep look at the evidence and trading tactics used by the system to evaluate their reliability and whether or not they backup the systems claims of profitability. After doing all this analysis I will then give you my opinion of whether or not I consider this EA worth buying and testing and the reasons why I consider this to be the case. Does the Forex STF system stand a chance ? Keep reading to find out !

First of all, let us CUT the lies right from the start. There is absolutely NOTHING dealing with genetic algorithms within the programming code of Forex STF. Several people on some forums have done decompilations of the code and they have seen that the Forex STF doesnt use any form of adaptive technique. It uses the SAME OLD method used by all regular indicator based expert advisors out there. So right from the start, this is just a BOLD LIE from the developers. There is cutting edge adaptive technology or anything similar within the EA, it is just your regular EA coded like any other trading system and using FIXED none adaptive parameters. I dont understand why the people at Forex STF made up this lie if this fact wasnt true, if a system is good you can just sell it without making things like this up. Come on, people are not stupid.

To say that the systems website is a disappointment would be an understatement. I find it rather insulting to the customer and to the intelligence of any serious forex trader. The "live accounts" shown on the website are NOT investor access verified through myfxbook nor is their investor access information given and their actual html layout seems to be taken out of a simple backtest. It is truly amazing to see the way in which this sellers attempt to deceive people - if not criminal - it is absolutely unethical. It is quite obvious here that NO live accounts actually exist.

Why dont the people at Forex STF show us myfxbook statements of the live accounts ? Why isnt investor access information given ? The answers to these questions are pretty obvious. There are probably NO real live accounts and the so called "evidence" shown is just made-up from backtesting results. However, even when dealing with backtesting results Forex STF fails to show us any evidence. We see no full backtesting statements and NO ten year backtesting proof is shown. This just shows you that Forex STF is a desperate attempt to try to sell you something that isnt worth a nickel a downright dishonest and unethical attempt to lure new traders into buying a piece of software with absolutely NO evidence of profitability, lying about the characteristics of the software and live performance results.

For the overall LACK of reliable evidence and the fact that they have lied about the tactics used by the software I consider this trading system NOT worth buying and testing and in fact, it is yet another example of the EA sellers most people desperately try to avoid. Of course, I would gladly change this review if investor access information is added for the accounts and the TRUTH about the tactics used by the system is given. Why are you saying you use genetic algorithms if you just dont ?

If you would like to learn more about expert advisors and how you too can start to code systems that have a real fighting chance in the market with 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 !

forex trading in spanish

Read more

Nadex ITM V4 Results so far Live Trading ~ forex trading news events

7:08 AM in a, about, am, an, far, Forex, hole, i, itm, live, nadex, results, rules, so, such, trading, v4, why

I am running a live test of one of my indicators this week for Nadex. Several people have asked to see the results. I will update as it goes along.

Sell 02/23/15 10:12:34 AM 1 AUD/JPY >92.81 (11AM) @ 23.75 -$76.25

Fee Payment 02/23/15 10:12:34 AM 1 AUD/JPY >92.81 (11AM) @ 23.75 -$0.90

Settlement Payout 02/23/15 11:00:06 AM 1 SHORT AUD/JPY >92.81 (11AM) @ 23.75 $100.00

Fee Payment 02/23/15 11:00:06 AM Expiration Fee: 1 SHORT AUD/JPY >92.81 (11AM) @ 23.75 -$0.90

Sell 02/23/15 11:28:26 AM 1 EUR/GBP >.7346 (12PM) @ 32.25 -$67.75

Fee Payment 02/23/15 11:28:26 AM 1 EUR/GBP >.7346 (12PM) @ 32.25 -$0.90

Buy to Close 02/23/15 11:34:10 AM 1 EUR/GBP >.7346 (12PM) @ 6 $94.00

Fee Payment 02/23/15 11:34:10 AM 1 EUR/GBP >.7346 (12PM) @ 6 -$0.90

Buy 02/23/15 01:54:55 PM 1 AUD/JPY >92.79 (2PM) @ 59.5 -$59.50

Fee Payment 02/23/15 01:54:55 PM 1 AUD/JPY >92.79 (2PM) @ 59.5 -$0.90

Sell to Close 02/23/15 01:56:32 PM 1 AUD/JPY >92.79 (2PM) @ 82.5 $82.50

Fee Payment 02/23/15 01:56:32 PM 1 AUD/JPY >92.79 (2PM) @ 82.5 -$0.90

Buy 02/23/15 02:45:14 PM 1 AUD/USD >.7791 (3PM) @ 88 -$88.00

Fee Payment 02/23/15 02:45:14 PM 1 AUD/USD >.7791 (3PM) @ 88 -$0.90

Settlement Payout 02/23/15 03:00:06 PM 1 LONG AUD/USD >.7791 (3PM) @ 88 $100.00

Fee Payment 02/23/15 03:00:06 PM Expiration Fee: 1 LONG AUD/USD >.7791 (3PM) @ 88 -$0.90

Buy 02/23/15 08:27:49 PM 1 AUD/USD >.7797 (9PM) @ 80 -$80.00

Fee Payment 02/23/15 08:27:49 PM 1 AUD/USD >.7797 (9PM) @ 80 -$0.90

Settlement Payout 02/23/15 09:00:06 PM 1 LONG AUD/USD >.7797 (9PM) @ 80 $100.00

Fee Payment 02/23/15 09:00:06 PM Expiration Fee: 1 LONG AUD/USD >.7797 (9PM) @ 80 -$0.90

Sell 02/24/15 06:29:52 AM 1 USD/CAD >1.2640 (7AM) @ 27 -$73.00

Fee Payment 02/24/15 06:29:52 AM 1 USD/CAD >1.2640 (7AM) @ 27 -$0.90

Buy to Close 02/24/15 06:36:57 AM 1 USD/CAD >1.2640 (7AM) @ 6 $94.00

Fee Payment 02/24/15 06:36:57 AM 1 USD/CAD >1.2640 (7AM) @ 6 -$0.90

Sell 02/24/15 10:08:05 AM 1 EUR/USD >1.1326 (11AM) @ 29.5 -$70.50

Fee Payment 02/24/15 10:08:05 AM 1 EUR/USD >1.1326 (11AM) @ 29.5 -$0.90

Buy to Close 02/24/15 10:20:03 AM 1 EUR/USD >1.1326 (11AM) @ 64.25 $35.75

Fee Payment 02/24/15 10:20:03 AM 1 EUR/USD >1.1326 (11AM) @ 64.25 -$0.90

Sell 02/25/15 10:29:45 AM 1 EUR/JPY >135.01 (11AM) @ 20.25 -$79.75

Fee Payment 02/25/15 10:29:45 AM 1 EUR/JPY >135.01 (11AM) @ 20.25 -$0.90

Settlement Payout 02/25/15 11:00:21 AM 1 SHORT EUR/JPY >135.01 (11AM) @ 20.25 $100.00

Fee Payment 02/25/15 11:00:21 AM Expiration Fee: 1 SHORT EUR/JPY >135.01 (11AM) @ 20.25 -$0.90

Sell 02/25/15 11:05:08 AM 1 EUR/JPY >135.17 (12PM) @ 20 -$80.00

Fee Payment 02/25/15 11:05:08 AM 1 EUR/JPY >135.17 (12PM) @ 20 -$0.90

Settlement Payout 02/25/15 12:00:16 PM 1 SHORT EUR/JPY >135.17 (12PM) @ 20 $100.00

Fee Payment 02/25/15 12:00:16 PM Expiration Fee: 1 SHORT EUR/JPY >135.17 (12PM) @ 20 -$0.90

Total profit so far $115.30

forex trading news events

Read more

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.
--
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 !

forex trading jobs in bangalore

Read more

Why I am such an A hole about trading rules ~ forex trading news releases

4:06 PM in a, about, am, an, Forex, hole, i, performance, rules, such, this, trading, weeks, why

Please forgive my rudeness but in this article, I will discuss the reason I am such an asshole when it comes to trading rules. I may piss a few people off but there is a reason to my madness. Read on...

I havent written in this blog for quite some time. Maybe I should start back up...

Ok Here goes. Point blank, if you get pissed off, or your feelings get hurt by what I am about to say, please do the following...

1. Take your  trading computer and smash it against the wall.
2. Cry out for mama.

Now why would I say this? The reason is this. Trading is a career choice, not a game. This is a skill that can feed your family or create the life you have always dreamed of. If you are a gamer and get thrills by trading the wild swings... If you get your rocks off by feeling the emotions of fear and panic or greed and thrill, then play your little game and go off to gamers world and find your other cartoon character fake people to play with. Use your magic pack of childhood wonder and play. Play till your heart is filled with joy. But dont you dare ask me why you lose constantly if you can not follow the rules that have been laid out for you.

Take a look at the following equity curve.

Nw this is from my forex signals via twitter. Do you see the dips in equity? Some days, we have several losers in a row. Does this mean we should scrap the system and mark it off as a losing system because we have several losers in a row? Nope.

There are basic rules in place to create this performance. We can back test these rules to show a probability of success. What happens if we begin to break the rules? I will show you in the following little narrative.

Lets create an example set of rules.

Rule #1 - Buy on a break of the high.
Rule #2 - Sell on a break of the low.
Rule #3 - Take profit at 20 pips
Rule #4 - Take a stop loss at 20 pips.

Disclaimer- This is just an EXAMPLE and not an actual set of rules.

Ok lets say that this rule set works and has worked over the past 10 years. Well, one day someone wil come along and say, " instead of buying at the high, what if i buy 2 pips before the high. Then another guy will come along and say, " instead of buying 2 pips from the high, why dont i buy 2 pips from the high only if the rsi is above 70? And then another guy will come along and say, " what if i buy 3 pips from the high when the rsi is above 70 and the macd is turning. Then another guy will come along and say, " I can buy if Rsi is above 70 and macd is turning n high volume. Then another guy will come along and say, " What if  buy when there is high volume and macd is turning and stochastics are confirming?"

Do you see the cycle? Do you see how the trade no longer makes sense and does not in any way resemble the original rules?

This is what happens all the time. A trader has a set of rules that work and then Joe Bow and his cronies come along and think they can do better or somehow make the rules better. Before long, they have a losing strategy and who gets the blame?

The creator of the original rules gets the blame and it goes a little something like this, " Yes Joaquin Trading sucks! I tried his shit, lost 3 freakin trades in a row! I tried everything to make it work with rsi, macd, etc... and his stuff is so bad! stay away!"

Well here is one thing to remember. If you ever find a trader or trading educator that has a nasty results record or loses 90% of the time, you have hit a gold mine. Think about it for a second......

Thats right, just do the opposite of what he is doing and make a fortune!

Now back to the rules...

If you have a rule set that works, why try to change it? If you can prove that it made money over the past X number of years, why screw it up? Thats the same as saying, " Yeah there is a guy who randomly shows up at my house each morning and gives me $100 but I think I can make him give me $300." Before long, you will be the one giving him $100 every day.

Trading is not a game. It is your job, your business, your money on the line. Trading is a way of life to allow you to live life to the fullest. If you want to play, then play on demo or play is a small account. If you want to succeed, find a system that works and do it. Dont change it.

I wish you success!




forex trading news releases

Read more

What Doesnt Change Talking About Inherent Characteristics of the Market ~ forex trading is easy

12:07 AM in about, change, characteristics, doesnt, ebook, Forex, future, holds, inherent, market, my, of, talking, the, what

Perhaps one of the most important questions you can ask yourself when you start using automated trading systems is : how will I survive in the long term ? This is one of the most common inquiries made by traders new to the field since it seems to be evident that the market is an ever-changing beast that does not allow the mechanical exploitation of any inefficiency for too long. New traders often experience this when they first begin to use automated trading systems. Their systems do very well, then fail or they never do well at all. Besides the fact that many of these systems dont have adequate evaluation- leading with inadequate and unrealistic expectations to long term loses - traders almost never ask themselves : what doesnt change ? It is obvious that if you want to exploit a given characteristic of the market for long term profitability you have to look for characteristics of the market that remain constant as a function of time. But are there any ? On todays post I want to share with you my view about market changes and why - even though the market changes- some characteristics of the market remain constant.

When you start to trade the market seems like an invincible beast that behaves in a very unpredictable manner. I remember that the first few months I traded I used to think "I got it" only to discover that the market would rip my strategy apart the next few months. I used to behave erratically - like most new traders behave- modifying my strategy every week in a desperate attempt to "adapt" to changes in market conditions. Of course, my focus at that moment wasnt the understanding of market inefficiencies but the massive multiplication of my money from 500 USD to a few million in a few years.

It wasnt until much later that I decided to stop my journey and build an understanding. If I ever was going to make money from this seemingly chaotic thing, I would need to find the "science" behind it. It became important for me to understand how the market behaved, what changed, what didnt and what strategies could be built that would most likely work for the next 20-40 years. I needed strategies that could work for long enough to build myself a decent income and NOT strategies that would put my capital into excessive risk or work for a year and then wipe my account.
--
The question becomes : what doesnt change ? After reading a lot of books and watching market behavior for many months, I started to realize that the only thing that doesnt change in the market, is the specie trading it. The market is traded by humans and therefore any aspect of the market imprinted with human behavior should remain fairly constant. As many traders have discovered I started to see that - although individual human behavior is very different - crowd behavior doesnt change very much. I then read a few papers on game theory experiments applied to economics on groups of people across very different cultures and the results started to match up as the groups became bigger. I then realized that - what doesnt change - is simply the way in which crowds react to price action.

How do crowds react to price action ? You see manifestations of this everyday - not only in the form of market trends - but in the form of long term reversal and continuation patterns, support and resistance levels, etc. There are some characteristics of the market that simply do not change, characteristics which have appeared time and time again during the past 30 or 40 years. Evidence of this is present on almost all market instruments from the GBP/USD, to gold, to the DOW index. However you will notice when you do a close analysis that - even though these objects are ever-present within market instruments - their AMPLITUDE and LENGTH changes as time evolves. A trend that may have been only 200 pips long in 2004 can be 1000 pips in 2010 and the reason why this happens is related with the markets trading volume.
-
-
As time evolves and there are more people in the world, the amount of money being moved in the markets becomes larger and therefore the extent of inherent characteristics of the market caused by crowd behavior also become larger. Through different market conditions, there may be larger or smaller movements of money, causing overall changes in the extent of market moves that appear like "large changes in market behavior" but that are no more than the same old characteristics viewed under the looking glass of a different volatility. For this reason, the key - I believe- to the exploitation of long term market inefficiencies seems to be the use of an inherent market characteristics that changes only with market volatility. Trends are a perfect example of this fact and there are many examples of successful trend following systems that achieve their long term profitability through adaptive criteria based on market volatility.

If you would like to learn more about automated trading systems and how you can build your own likely long term profitable systems with sound risk and profit targets 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 !

forex trading is easy

Read more

How to calculate Take Profit Levels on Nadex Bull Spreads ~ forex trading or stock trading

11:05 PM in a, about, adding, bit, bull, calculate, Forex, how, levels, little, nadex, of, on, profit, risk, spreads, take, to

It is really simple. I will not over complicate it. There are several hour long webinars out there on the web that shows how to do this but I will tell you in a few short sentences. Nadex profit and loss is equal to $1 per tick. What is a tick? It is the LAST digit on any bull spread. If the Gold price is 1299.6, then that last digit (6) is what you want to look at. If the Wall Street 30 price is 16430, then the last digit (0) is the digit you want to watch. When calculating your TP, all you have to do is erase the point, if there is a point in the quote such as the one in the Gold price at 1299.6 If I want to calculate at what price a $30 profit means, lets pretend I am selling, then this is how you do it... 12996 (take out the point) MINUS 30 = 12966. Then add the point back in. 1296.6 1296.6 is the price you want to take profit at to make a potential $30 profit. Lets look at the Wall St 30 at a price of 16430. If you sold it at 16430 and wanted a $45 profit, where would you set your TP at? 16430 MINUS 45 EQUALS 16385. 16430-45= 16385 So 16385 is where you want to buy it back. So what about buying? how do I calculate buying? Answer... Just ADD instead of SUBTRACT If I want a profit of $30... 16430 PLUS 30 EQUALS 16460. 16460 is where you set your TP And on the Gold trade, if I want a $30 profit when buying... Remember to take out the decimal. 1299.6 will become 12996 12996 PLUS 30 EQUALS 13026. Add the decimal back in... 1302.6 is your TP price. Thats it.
forex trading or stock trading

Read more

It is NOT Only About the Spread Understanding Market Depth ~ forex trading jargon

7:18 AM in about, commandments, depth, forex, is, it, market, not, of, only, spread, successful, system, the, three, trader, understanding

Maybe the first thing that people new to forex learn about brokers is the fact that better brokers have better spreads. Since the spread - the difference between the bid and ask price - is the fixed cost per transaction then any given broker that offers you a better cost per transaction will ultimately be better from a profit wise perspective. This becomes critical when you are using systems that take profit in areas lower than 10 times the spread since the contribution of the market spread to your trading costs is very significant. However what traders often fail to notice is the fact that the spread is not enough to tell a brokers quality from another, often new traders will get involved with brokers who have "the best" spreads only to find that their execution is no where near what they expected. How can you judge the quality of different brokers besides the spread ? On todays post I want to talk about marketp depth, the nature of order execution and what you should look for within a broker besides an excellent spread level. This article will also further pinpoint the difficulties in achieving long term profitabilities with scalping systems and why great care is needed when choosing a broker for such systems.

What ? I thought that the spread was the only cost per transaction, determining broker quality - you might be thinking. However reducing broker performance to their spread level is simplistic and does not give you a full picture about the whole quality of your brokers trading operation. When you buy a given contract in forex trading, you are - ideally - filling a transaction from someone who wants to sell their previously held contract. For example, if you want to buy EUR/USD at 1.2345 you are actually buying a contract from someone who is selling it at 1.2345+spread. The dealer hands the contract over to you and keeps the Bid/Ask difference -the spread- as a comission.

However the problem comes when you realize that the number of contracts available at any given price level is not unlimited. Of course, not everyone wants to sell EUR/USD at a given price level or buy it at another and therefore the amount of liquidity available in the market is very limited. The consequence is that you might have a broker with a GREAT spread but it might have a very dry liquidity pool so you might be unable to get your orders filled at the price levels you want.
-
-
Of course, the problem now comes to the difference between brokers with and without dealing desks. When a broker has a dealing desk it will try to fill all your orders, regardless of liquidity but it might not want to fill your orders at a certain price level if your orders are too large or too fast for them. The solution of the broker to this exposure you cause it is to simply requote you until you get a price level in which the broker has enough liquidity, hedging positions from other traders, etc. The end result is that you feel absolutely tricked because you are unaware of the true causes of why all this requoting has happened.

On the other hand, ECN brokers allow you to have second level market depth, which means that you are able to directly see the orders that are being placed and you can actually SEE how much volume is available for you to get. Of course, there are simply no requotes on ECN brokers because the transactions are done from peer to peer and everything is much more transparent to you (of course, someone can beat you to a transaction but then there is no requote but simply you "failed" to capture the transaction first) . Using an ECN broker allows you to see exactly how the market is moving and what volumes at what price levels are available for purchase.

For systems that need to trade fast having this added volume information and having transparency over execution is absolutely vital to have any chance of long term success. The fact that liquidity at different price levels is limited also points out why scalping systems may not have such a great chance at achieving long term profitability. Many people are fighting for very narrow price ranges with very limited volumes and the people who fail to get their desired price levels will definitely lose a significant portion of their profits. However, systems that swing trade and use very wide targets might no be affected by this fact simply because they can have a lot of flexibility around their entry points and deviations of +/- 5 pips are not bound to cause any disastrous effects in the long term.

So to sum it up, the quality of a broker is not only given by its spread levels but by the quality of its liquidity pool. When you use a regular dealing desk broker you will not be aware of this pool while on ECN brokers you will see all the action directly through second level market depth. Having brokers that allow you to see deeper is vital for people who trade scalping systems while it adds little value for traders who use swing and longer term systems. Nonetheless traders who use long term strategies but trade high amounts of volume may also need to see their brokers liquidity pool to catch better entry and exit points.

If you would like to learn about mechanical trading systems and how you can code your own automated trading systems with sound trading tactics to achieve success in forex trading 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 !

forex trading jargon

Read more

Talking About My Ebook What the Future Holds ~ forex trading income tax

10:06 PM in a, about, ebook, Forex, free, future, fxreviews, holds, my, new, project, starting, talking, the, what

A few weeks ago I gave my almost one year old ebook a new read-through to check the validity and relevance of its content and to see if there were any improvements I could do. After reading the ebook and looking at how my vision through last year has evolved I realized that many changes and additions are due. Although the contents of the ebook right now are very valid and do point traders in the right direction in automated trading I feel that a lot of depth - particularly pertaining to system design - is currently missing from its contents. Of course, there is also the fact that the ebook is missing the last 2 experts from the Watukushay series, something that also must be added if the ebook is bound to keep up with this - seemingly ever-evolving - project. On todays post I want to talk to you about the ebooks future, the changes that will happen within the next few months and what I expect from all this evolution.

The first thing that will be certain is that the ebook will no longer be offered by itself. Through the past few months I have been giving this a lot of thought and I believe that the ebook does a better job at helping traders as part of the overall Asirikuy package. So from the next update, the ebook will be only available within Asirikuy. Of course, previous ebook customers will keep on getting the update but the option to buy the ebook by itself will completely disappear from this website. I believe that this is the way to go since it will allow people to have a "full view" of everything and to get a complete education in automated trading. I hope I will be able to create much more synergy between the ebooks contents and Asirikuy within the next release.

Regarding the contents, I believe that the current version leaves a lot of spaces open that need to be addressed. I reviewed the ebook with a friend who has some basic knowledge regarding automated trading and forex in general and he was a little bit overwhelmed by the amount of content and the ideas within some sections which required a good amount of time to assimilate. It took him a lot of time to follow many of the tutorials but -in the end- he was able to reproduce the Watukushay experts and their analysis on his own. I believe that a lot can be done to improve the teaching of coding within the ebook and a lot of emphasis in initial system development is also missing.

Perhaps one of the most important additions I plan to do is a whole section on mathematical exepctancy analysis which will provide people with some tools and tutorials to guide them through the first - and often the most critical - parts of system development. I will try to teach how to device an initial trading logic and an approach to trading, focusing on systematic building and the analysis of mathematical exepctancy using the EA I created for this purpose within Asirikuy. I think that with these and a few more changes, the ebook will be able to improve on its current state and better help traders achieve their goals to become long term profitable traders using automated trading systems.

I want the ebook to be the introductory and main piece of Asirikuy, a "tome of knowledge" so to speak, that gathers all my basic concepts in automated trading coupled with a lot of practical exercises, tutorials and guides to bring someone from "I dont have any idea" to "I have coded my first likely profitable trading system using my own ideas and analysis". Do you have any ideas about what the ebook should be ? Do you want to suggest any content additions ? reductions ? changes, etc ? What would you like to find in the ebook ? Please leave a comment :o)

It is difficult to say right now when this "major update" will be out, but probably I will be releasing it sometime before Aug 07. If you would like to learn more about the ebook and my journey in automated trading 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 !

forex trading income tax

Read more

These books about forex investment ~ forex trading education

9:04 AM in about, books, Forex, investment, these

1. Elliott Wave Principle: Key To Market Behavior
 
2. Elliott Wave Trading: Principles and Trading Strategies
 
 3. Mastering Elliott Wave Principle: Elementary Concepts, Wave Patterns, and Practice Exercises
4. Mastering Elliott Wave:
 
forex trading education

Read more

Its all about risk ~ forex trading online training

12:00 PM in about, all, Forex, in, its, joaquin, losers, managing, nadex, risk, the, trading, way

I watch other traders and observe their behavior. I look to see how consistent they are, whether they are winning or losing, how happy they are about their trading, and about a hundred other factors. I like to observe.

A question I often get asked is this...

"How many trades do you take per day?" or "Will you send me at least 10 signals per day?" or "Why dont you trade in and out of the market all day, instead of taking one position?"

Here is my answer.

I only trade a few positions while others may take tens or hundreds because I am focusing on trades that I have a reasonably accurate assumption that either they will be profitable or that they will be low risk.

Commissions play a part. Each trade on Nadex has a fee attached to it. $0.90 in. $0.90 out. If the trade expires OTM (out of the money) then there is no fee. If I take 10 trades a week (2 per day), then my commissions are $18.00 roughly for the week. If I take 5 trades per day, then my commissions, for the week are $45.

On the other side, If I were to scalp in and out of the market all day, $15 here $15 there and taking on massive risk with each trade, our costs go up. $1.80 each time. 20 trades per day equals a commission cost at the end of the week of $180. This is a whopping $9,360 in commissions each year.

Here is another reason I do not take as many trades. With each new trade brings risk. Every trade is a brand new ballgame. Why would I risk losing money 100 times when I could do it 20 times instead.

Here is another reason. If I feel that I need to make a certain amount of money, instead of trading more, I will just increase my contract size instead.

For instance, If I am looking to make or lose $1000, Instead of trading $10 for 100 trades, I might trade $50 for 20 trades.

Everyone is different. There is no right or wrong way to do it. It is all on our perceptions of the market. This is just how I see it.

In my opinion, traders should be focused on making money, not trading just for the sake of trading. I am in this business to make a profit, whether it is from 1000 trades or one trade. That doesnt matter. If I can do reach the same goal with 1 trade, I will.

One could say, "Yeah but instead of taking on more risk for less trades, why not spread the risk over many trades?" Like I said, it is all on your own perception of the market. Spreading the risk is a good thing but over trading is a horrible thing that will come back to bite you if you are not careful.


















forex trading online training

Read more