Too Good to Be True Why it is Never True ~ forex trading los angeles

11:37 AM in be, enemy, Forex, good, ignorance, is, it, my, never, to, too, true, why, worst

Yesterday while I was searching some forums and reading the comments of the posters I came across a conversation about the very traditional saying "if it is too good to be true, it probably is". As I read more I saw some very interesting aspects about the way in which the conversation was being carried out, specially the opinion of one of the debaters who was against the hypothesis claiming that is was nothing but mediocre and destructive to a person with an "achieving" personality. Today I want to write a post about my opinion about this "too good to be true" issue and how I feel it is a very valuable piece of common knowledge based on hundreds - or even thousands - of years of human experience. In particular I will discuss its relationship with automated trading and why it is extremely importance in this field
-
First of all, we need to understand the nature of this timeless phrase. Why does it exactly mean and what is the power behind it ? What do people mean by "too good to be true" ? Generally this sentence speaks about the overall human experience in the sense that it reflects the expectations of the general public. When someone tells you that a certain endevour sounds "too good to be true" it means that you may be drastically underestimating the efforts or the actual real possibilities of doing what you are intending to do.

As a clear example, imagine that you lived in the 19th century and you told someone "I will be building a machine to fly in one week". They would tell you that it sounds too good to be true and the actual truth is that you would have found the endevour much more time consuming and difficult than what you originally thought. It is worth noting that the saying does not necessarily limit the possibilities of what can be done but generally the manner in which things can be carried out meaning that if something that was "too good to be true" could be done in that way, you wouldnt be the first person doing it and it wouldnt be too good to be true after all, because it would be true.

So how does this all apply to automated trading ? It applies in a very simple way. If it was possible and so simple to turn 500 USD into 1 million in 5 years, then it would have already been done and it wouldnt be considered too good to be true. However, since achieving this extremely high capital returns isnt something which is being done by the worlds top traders or trading organizations (or anybody else for that matter... if you have an example in automated trading I would absolutely love to hear it) then it simply falls within this category with very good reason.
-
-
Is living from automated trading too good to be true ? The fact is that if you are thinking about placing a robot on a trading platform and letting it to work like an ATM for you then it certainly is too good to be true. Othewise dont you think that the thousands of people who have learned about automated trading would be living from it right now? The reality is that most of these people are actually not making any income from automate trading but they are losing money trying to achieve the situation which is just "too good". However - as I implied before - this does not mean that living from automated trading is impossible, it merely signals that the way most people are following is just wrong. Living from automated trading is possible but the truth is that it will require a LOT of study, a LOT of work and MUCH more capital that what you have been told and - not surprisingly - it is not something everybody can do; it is a long journey filled with frustration and hard work which - alike most non-luck based roads towards wealth- is simply not travelled by the vast majority of people.

In my mind, I dont think that the "too good to be true" saying is intended to be discouraging, mediocre or destructive - on the contrary - I think that it is meant to be protective as it certainly points out that the roads towards wealth exist but they are not short and they are not easily travelled. In the end there is nothing special about you or about me and if the easy ways to achieve massive riches in automated trading were really a reality, we would have both achieved that goal without any effort a long time ago (and therefore it wouldnt be too good to be true either !). In reality the best thing you can do for yourself is to find out what can be realistically achieved and put all your hard work into. Forex automated trading - as I have said several times - is not a gold mine for you to avoid work and sit on a beach to drink Margaritas all day. The journey is far harsher and demanding than your average 9 to 5 job, but so is the end much more rewarding.

If you would like to learn more about my perspective in automated trading and how you too can build systems with realistic profit and risk targets which use sound trading tactics to profit from the market 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 los angeles

Read more

Forex Expert Advisors Forex Wealth Robot an Unbiased Review ~ forex trading live chart

7:19 AM in advisors, an, be, expert, Forex, good, is, it, never, review, robot, to, too, true, unbiased, wealth, why

It seems that new robots keep comming out everyday ! A few days ago someone left a message on the websites chat asking me to review a new forex trading system called Forex Wealth Robot. In order to honour this visitors request I will be writting about this trading system today. Within the next few paragraphs you will find my analysis of the evidence provided on the systems website. I will talk about the reliability of the evidence and if it can or cannot backup the authors claims about the systems profitability. I will then examine the evidence in detail and give you my opinion about the Forex Wealth Robots profitability and whether or not it is actually worth buying and testing. Is this expert advisor able to deliver consistent, huge profits in forex trading ? Can it live up to its work ? Is there actually proof to backup the authors claims ? Keep reading to find out !

The website starts with a very misleading statement, telling you that you could make more than 8K in one day in 2010 with "default settings" however no reference is ever made about initial trading capital or the risk taken to bank those 8K. It always upsets me that these EA sellers target new traders in such a blunt and bold faced manner without any ethics or honesty. The claim made of an 8K profit in one day simply makes no sense. Besides, the fact that there is no evidence that this trade was EVER taken in the real market points out that this trade was never placed and no one EVER banked those 8K.

The Forex Wealth Robot does not do any better after this, the rest of the website talks about an obviously false story about a guy who worked for a "huge bank" and "stole" their automated trading system only to make a metatrader EA and sell it. Yeah right. But well, I dont care about the story as long as the evidence provided is able to backup the sellers claims about the systems profitability.

However, when we look at the available evidence of profitability we find - sadly and not surprisingly - only backtesting results which dont have even full statements available. All we see are pieces of backtesting statementes which are portrayed as being results of live trades. This is absolutely dishonest as it is misleading people not familiar with the statements to believe that the system was traded live and made those profits when the reality is that those trades were NEVER taken on any live account. The messages on top of this hand-picked sections of the backtest are also cleverly placed to hide SL and TP values, reason why we cannot truly estimate the trading tactic or risk to reward ratio of the system.

Evenmore, the extent of the backtesting periods shown is not known and clear 10 year backtesting statements are simply NOT available. There is also a total absence of any live testing information so we cannot trust the validity of the backtesting results as live/back testing consistency results cannot be taken into account. In the end, this trading system seems to be a lot of hype and a complete absence of any real and reliable evidence. Due to the misleading picturing of information, the complete absence of full backtesting statements and - more importantly - due to the TOTAL absence of investor-access verified live trading results, this trading system is DEFINITELY NOT worth buying and testing. This guy who is a so called "proffesional" does not even trust his system enough to risk his own money, he doesnt show any real evidence of his supposed "success" with the system neither does he show his "beta-tester" results, which SHOULD be available according to the story. This truly is not only a display of an untested and very hyped system but a perfect example of dishonest and unethical behavior.

If you would like to learn more about automated trading and how you too can learn how to trade with a high like hood of long term profitability using automated 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 !

forex trading live chart

Read more

Asirikuy Portfolios Increasing Profits Without Increasing Draw Downs ~ forex trading knowledge in hindi

8:09 AM in asirikuy, beginner, does, downs, draw, Forex, from, how, increasing, it, long, portfolios, profits, successful, take, to, trader, without

One of the objectives of Asirikuy is the development of portfolios to trade with high profitability and diminished risk levels. For the past year, the systems tested within Asirikuy and the previously available newsletter had never been traded together due to the fact that the effect of trading them within a single account had not been measured. For this reason it was very difficult to know if trading the experts together would have a positive effect in the overall risk level and the building of portfolios had been postponed until we had enough live trading evidence about Asirikuy systems. During the past few months - and thanks to the contributions of several Asirikuy members who provided several analysis tools - I have analyzed different combinations of Asirikuy trading systems and the way in which they affect each others trading during the long term. I would have to say that the results have been excellent to say the least. Within this post I want to share with you my analysis about an Asirikuy portfolio and how the combination of the different systems allows us to reach a great increase in profit with only slight increases in risk.

To begin my journey in portfolio building with Asirikuy systems I first tried simple combinations of all the systems to see what overall improvements I could achieve within their performance. I will show you today the effect of building a 3 system portfolio from Watukushay No.2, Teyacanani and Watukushay FE which are perhaps some of the most popular systems within Asirikuy. These systems all have a high like hood of long term profitability with 10 year profitable results and a good possibility of being live/back testing consistent. In fact, both Watukushay No.2 and FE have been trading for almost 6 months with consistent results with simulations. Since Teyacanani only has about one month of live trading, consistency cannot be evaluated yet but preliminary results look good.

What was the effect of combining these systems ? I have to say that I was impressed by the synergy I got when I joined these trading systems within a portfolio. By using their 10 year - Risk 1 - backtesting results and combining them using the tools developed by two Asirikuy members I was able to easily analyze the results from these three different systems combined. This is inline with what you would get by running the three within a single account since their internal balance mechanism ensures that they only take into account their own profits and loses when calculating their balance. Below you can see the equity curve for this 10 year combined analysis of their results in simulations.
--
After ten years of trading the systems achieve - by working together - an equity gain of about 309% which is equivalent to a yearly compounded profit level of around 19% (see year by year analysis later on). Perhaps the most impressive aspect is not this but the fact that the maximum draw down level of this portfolio combination was very low, at only 5.15%. Not only is the draw down small but it is actually smaller than the draw down level of almost all the systems used. Watukushay No.2 has a maximum draw down of 5.2%, Teyacanani above 6% and Watukushay FE just above 3% showing that the systems are indeed able to reduce draw down to a lower level. Profitability was greatly increased - since the effect of profitability is additive- while draw downs were globally diminished. The overall consequence is the achievement of a yearly profit to maximum draw down ratio of 19:5.15 or 3.68, a wonderful number for any trading system.

An interesting effect also comes when you consider the length of the maximum draw down periods. The maximum draw down length is also greatly reduced when compared with individual systems. For example, Watukushay No.2 has a maximum draw down length of 259 days, while the combined portfolio has a value of 216 days, showing a diminishment in the duration of the maximum draw down length. This means that not only does this portfolio achieve lower worst-case equity loses but the overall length of these losing periods is reduced.
-
-
It is also interesting to analyze the yearly and monthly performance of the portfolio to see how it compares with the Asirikuy systems by themselves, something which would show us the arrange of possibilities we could expect for our first year, month and subsequent years of trading this combined system portfolio. The results are shown on the images above and below.
--
The images above confirm that the portfolio is a great improvement when compared with the three systems traded by themselves. Overall, we do not get any losing years for the past 10 years and - even though the draw down of the worst losing months does increase - it does so in a much smaller proportion than the most profitable months. The profitability over the years also increases very significantly showing us that the effect of profits is indeed additive while the effect of combined draw downs is "hedging" in the sense that when any of the systems enters a draw down period some of the others are bound to enter profitable periods. The draw down periods of the systems never overlapped perfectly during the last ten years and only a few months of combined draw down are ever seen. As you see above, the largest losing month does not give us even half the profit of the most profitable month and profitable months are overall much more abundant than losing months.

The significance and analysis of this findings is tremedous. The building of these portfolios will allow us to reach higher profit targets with diminished risk and to have worst-case scenarios (double the projected maximum draw down) that are below our profit targets. This could mean that this same porftolio traded with a Risk = 3 would have an average yearly profit near 57% with a maximum draw down near 15.6% and a worst case scenario of about 32%. The use of portfolio trading will become our most important trading tool within Asirikuy and within the next few months several portfolio live accounts both owned by myself and challenge accounts will hopefully be added to Asirikuy.

I am also building a wealth development plan based on combinations of Asirikuy systems (including all systems and different currency pairs) that will be our final test of all these likely long term profitable systems. A plan with regular additions and a 1000 USD initial investment to get to a 5 figure yearly income within 10 years with a worst case scenario below 50% is what I currently have in mind. As you see I am very excited about these developments as the combination of long term profitable systems is proving to be much more than the simple sum of its parts. I hope you are excited as well so feel free to leave any comments, questions or opinions you may have :o).

If you would like to learn more about Asirikuy systems and to begin your journey towards long term profitability 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 knowledge in hindi

Read more

Whats it like to spend a day with Richard Jaycobs President of Cantor Exchange ~ forex trading new york

3:54 AM in a, autotrader, cantor, day, exchange, for, forex, it, jaycobs, like, new, of, president, richard, spend, to, whats, with

Yesterday, I had a great day! My local traders meetup group was having a little meeting at my house and we had a fantastic guest speaker. Richard Jaycobs, president of Cantor Exchange and one of the veterans of the markets spent all day with me and stayed over to talk with traders from all over the Knoxville Tennessee area. Here is how it all went down...

First of all, Richard has an extensive history with the markets. He worked along side Paul Tudor Jones, one of the wall street legends. He founded the first internet based futures exchanges. He worked for the New York Cotton exchange and was a managing director at Finex, among other things. He is currently the president of Cantor Exchange, a wholly owned subsidiary of the financial services firm, Cantor Fitgerald.

Here is a picture of Richard, myself, and my son in his underwear.

One of the things I was most impressed with was the generosity of Cantor Exchange. They are out to work with all kinds of trading related businesses. When a trading exchange sends the president to your house to ask YOU how they can serve you, then this is an amazing thing.  So why did he come to my house?

I had recently met Richard and Rod Drown (managing director at Cantor Exchange) at a traders conference. I approached Rod and the very first words that came out of my mouth were, " If you can do what you say you can do, then I can bring 1,000 traders your way." Now at the time, I had no clue how fast the Cantor Exchange brand would spread through word of mouth alone but I was bound and determined to find out more.

So I started messing with trades on the exchange and researching and found out that these guys are sitting on a goldmine of awesomeness for the retail trader. Some of the ways you can trade on the exchange just blew me away! I was hooked, as are many other traders so I sat down and wrote out a 40+ page document on my thoughts about the exchange and how I saw it from an outsider. Yep, forty flipping pages! Click and away it went to the execs at CX. (By the way CX stands for Cantor Exchange).

So long story short, I had a series of talks with Rod and he asked me if it was ok if Richard Jaycobs flew down to see me for the day. I politely said, " Of course it is ok. I would be happy to talk with him." Inside, I was like a kid in a candy store because I actually caught the attention of someone that wanted to hear my ideas.

So the day came. (Actually that day was yesterday July 13, 2015). Richard arrived promptly on time and we sat at my kitchen table and talked back and forth for 5 straight hours. We went through my ideas list one by one. If I thought something at the exchange was bunk, I let him know. If he thought one of my ideas was garbage, he let me know. We disagreed on a few things and agreed on a whole lot of things.

When we were tired from sitting, we would walk into my trading office and look at charts. I had told him about designing an indicator for trading on the exchange and he wanted to see it. We took a couple of short breaks and then went right back at it. Idea after idea. Line by line. Taking notes and crossing things off. I even got to interview Richard for a Youtube special coming up soon.

One of the most amazing things is the fact that Cantor Exchange wants to work with traders. They are not stuck up and have their nose in the clouds like several other exchanges. I remember calling and emailing a competitor exchange about an idea I had that would have been great and never once received a reply of any sort. Point Blank, Cantor Exchange is willing to talk with the little man.

So anyway, getting back to my story... after hours and hours of talking, the doorbell rang. Lo and behold, it was a member of one of my facebook groups. This guy, Steve Cole AKA Ole Dude as decribed by his high school students, is just about as country as they come. His accent is about as thick as molassas on a winter night. Now Steve was interested in the exchange and Richard talked right along with him and took his ideas as well... By the way, I just found out that Steve is now a Cantor Exchange trader, as of today. I assume he liked what he heard last night.

The doorbell rang again and here they came one after another, trader after trader filled my house with smiles and laughs. Not one of them had on a suit and tie... This is Tennessee by the way.

Then the vittles were on the table and everybody had plate. Boy, was it good. The smell of the food filled the house until after I lit the burners to keep the food warm and the house started to smell like a gas factory for a few minutes. We had pork BBQ, Rotisserie chicken, Mashed taters, Brown beans, Corn salad, Green bean casarole, Cheesecake bites, fudge, Cornbread muffins, and rolls. This was a feast for an old southern boy such as myself.

As all the traders were eating and sitting wherever they could find a spot, the speaking part came and I stood up and tried to talk but everyone was so engaged in their conversations that no one even heard what I was saying Haha! So I gave them a few more minutes to chow down and then I, along with Richard attempted to explain the basics of the exchange and answer questions, mostly coming from Troy.

Now Troy is a friend of mine that works for Ninjacators so obviously he overtook the entire line of questioning almost and started firing off. One right after another the questions came. I answered a few but Richard answered most of them. Now Troy was creating some pretty powerful questions that would have made me feel a bit humbled but Richard just fired back the answer as easy as you could think and answered each and every question that was asked.

Look at the picture above. Richard is showing everyone how to play an air guitar. Just kidding, he is actually answering questions.

All in all, here is the deal. The Cantor Exchange has plans so great that I am so excited to be a part of it all. They want to create a trading experience that is the absolute best possible. They want to allow everyone access to the exchange in ways that are so simple that anyone would understand. They want to create products that traders want. Best of all, they want to hear ideas from you. If you have an idea that would make the exchange a better place to trade, let them know.

For more information about Cantor Exchange, or if you would like to get updates and talk with others about the exchange, please visit facebook.com/groups/cantorexchange or if you would like to sign up for a trading account, visit forestparkbx.com . Forest Park BX is a referring partner to the exchange, can get you set up with an account and answer questions along the way.

So whats all the fuss about? What makes Cantor Exchange so awesome?? You just stay tuned, join the facebook group and watch this thing unfold. You will be blown away soon! Below is a small sample of things to come...

1. Write your own binary options contracts at ANY strike you want
2. No minimum deposit
3.  All contracts are only $1 allowing smaller traders to participate in the market

Now many of the most awesome things, I can not mention at this time but you just wait!


(c) 2015 Ryan Herron of Joaquintrading.com
forex trading new york

Read more

The Indicator Series The Awesome Oscillator A Tool to Measure Momentum ~ forex trading for beginners

8:01 AM in a, arbitrage, awesome, does, forex, in, indicator, it, measure, momentum, oscillator, series, the, three, to, tool, triangular, way, work

On todays article we will be discussing a very interesting indicator which forms part of Bill Williams "chaos trading" theory in which several indicators are used to attempt to trade the markets profitably. This indicator- called the Awesome Oscillator - was developed as a means to get an idea about short term momentum on a given trading instrument. Within the next few paragraphs you will learn more about how this indicators values are calculated, what it really tells us about the market and how we can use this information for the building of likely long term profitable automated trading systems. As a part of the "indicator series" this article will attempt to give you an idea about the essence of the indicator and the real nature of the information it conveys.

So what is the Awesome Oscillator about ? What makes it so awesome ? This indicator - usually plotted as a histogram - uses a very simple calculation to measure what we would call "market momentum". The indicators value is obtained as the difference between a 34 and a 5 moving average calculated around the median price (which is the (high-low)/2 of each bar). Putting it simple, the values are obtained with this simple equation :

Awesome Oscillator = SMA(MEDIAN PRICE, 5)-SMA(MEDIAN PRICE, 34)

You might have also noted that the awesome oscillator contains red and green colors which depend on the increasing or decreasing nature of the values. If the last value is lower than the current values the current bar is green while the opposite case makes the bar red. To sum it up the awesome oscillator tells us if the 34 and 5 period average values of median price are coming closer or falling further apart. When the values are falling apart there is momentum (since short term price is - in average - moving away from the longer term average, when the values are closer then we have the opposite.
-
-
It may now seem more evident how this indicator might be traded. We can build a system that trades the cross of the 0 line (which is equivalent to the simple moving average cross system of the 34 and 5 period MA values calculated on median price) or we can trade changes in direction (changes from red to green) to attempt to capture changes in momentum which may forecast an eventual cross of the moving averages. However the fact that the oscillator only gives us information about the momentum change taking into account a relatively small number of bars means that its success on lower time frames is bound to be very limited. When using this indicator on time frames lower than the daily you will see that it gives extremely confusing signals since the 34 and 5 median calculated moving averages cross a lot, something that makes the finding of an inefficiency quite hard.

Added to that is the fact that the awesome oscillator momentum "changes" (color changes from red to green) can happen during a single bar and therefore give a lot of fake signals. For this reason most people will advice to trade this indicator on three bar signals to gain a better perspective and eliminate signals that are simply spikes that might only "seem" like changes in momentum. By doing this we can gauge changes in momentum better and build a system that reacts quicker to changes in market direction. Exiting trades when the first opposite bar appears also seems to be a good exit strategy since usually this wont happen after the majority of the large move happens. Of course, the success of such an approach is bound to be minimal on lower time frames, again due to the inherent problems of the low period usage of the awesome oscillator on these charts.
-
-
Above you can see a USD/CHF daily chart with some of the possible signals during the financial crisis which was a very trending period for this and other currency pairs. You can see here how the awesome oscillator would have captured moves with very good accuracy. Of course, the system is not going to be perfect and under conditions when the 34 and 5 MA comes close for large periods of time the system would suffer large amounts of losses (this is the systems market exposure so that it can get into this very good trades when they develop). The above mentioned signals also allow us to get back into trends after retracements, so they are definitely a necessary compliment since they help us fully exploit large runs without missing a large part (as if we only entered shorts above 0 and longs below 0).
-
-
So as you see, the awesome oscillator is really not that awesome, it is simply a tool to measure momentum which compares the prices of two simple moving averages calculated on median price values. This information is bound to be useful for the development of a momentum based automated trading system, especially on large time frames - like the daily - where these signals are much more meaningful than on lower time frames when the low periods used by the oscillator will make the finding of inefficiencies extremely hard, if not actually impossible.

If you would like to learn more about automated trading and gain a true education in the development of likely long term profitable mechanical trading systems please consider joining Asirikuy.com, a website filled with educational videos, trading systems, development and a sound, honest and transparent approach automated trading in general . I hope you enjoyed this article ! :o)

forex trading for beginners

Read more

My Currency Trader Magazine June Article Check it Out ! ~ forex trading jobs in london

5:51 AM in a, adaptive, alternative, article, check, criteria, currency, feature, Forex, introducing, it, june, magazine, my, new, of, out, teyacanani, trader

As many of you may already know - if you have been following my blog for a while - I have become a somewhat "regular" contributor to Currency Trader Magazine, one of the most well-known and respected magazines published in the area of forex trading. Besides featuring very famous and well-respected authors such as Barbara Rockefeller, the magazine tries to give people quality articles about both fundamental and technical aspects of currency trading. I have to say that Currency Trader Magazine had become a monthly "must-read" for me before I started writing in it, with its articles being very good to catch both a birds eye view and a practical perspective over current market conditions but being an author now gives me the opportunity to humbly contribute to this great monthly magazine. On todays post I want to talk to you a little bit about my June article and how I think it provides very valuable information about market inefficiencies and the way in which they evolve over time. You can download the June edition of the Magazine -containing my article- for free here(if it is already August and youre reading this then you will have to purchase the issue separately).

The article I wrote for the June issue attempts to address a significant question I had been asking myself for a while. Is the market so inefficient that the movements within trading sessions are predictable ? I wanted to take a look at the Asian session in particular and answer this interesting question regarding whether or not we could look at this session for a period of 4 years and predict the future magnitude of absolute movement and the range within this trading session. Would it be possible that the market moves in a predictable way during this period of low volatility ? I started to do some research to find out.

In the article I go through an analysis of the Assian sessions range and absolute movement within the past 4 years on the EUR/USD, EUR/GBP and EUR/CHF attempting to find a "pattern" of evolution that could signal the existence or absence of a "predictable movement" within this session. Of course, part of this research was inspired in the fact that many commercial system sellers have attempted to exploit inefficiencies around this session that have worked for a while and have then become obsolete. I have always thought that there is some predictability around the Asian session but attempting to exploit it without any adaptability is simply a behavior prone to eventually fail (you really wonder how many of those sellers are really traders).

The results I found were - for me - absolutely breath taking. The analysis of absolute movement values for the three different pairs revealed nothing spectacular, showing that the ranges evolve widely as the market changed. Effectively this proves why Asian session scalpers are doomed to fail, the character of the session changes tremendously with time and exploiting it using such systems in the long term is not going to work. However I then took a different look at the picture and evaluated the range and absolute movements differently - taking certain additional market elements into account- obtaining a wonderful result. As a matter of fact, what I found confirms what I have suspected for a long time.

Not only are the Asian session conditions predictable, but they are almost the SAME for the EUR/USD, EUR/GBP and EUR/CHF. This means that my article found a key part of fundamental market behavior, a characteristic of the market that appears to remain unchanged as time goes by. Of course, the details of this analysis cannot be revealed here (you need to go ahead and read the article ! :o) ) but you will see that my analysis shows clearly that the Asian session is technically inefficient and that creating systems to exploit this inefficiency is indeed possible. During the next few months I will be working on the creation of several different mechanical trading systems to use this research to show that effectively the behavior within the Asian session lends itself to mechanical exploitation.

I hope you have read and enjoyed this post and my June article. Please leave any comments, questions or suggestions you may have :o). As always, if you want to learn more about my work in automated trading and how to use forex trading systems that use sound trading techniques to be likely profitable in the long term 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 london

Read more

Cityboy This is a neat video check it out ~ forex trading pdf

8:19 PM in a, booker, by, check, cityboy, coin, flip, Forex, game, is, it, neat, out, rob, test, the, this, trading, video

forex trading pdf

Read more

Volume Based Forex Systems Can it be Done ~ forex trading games

4:06 PM in an, article, asian, based, be, can, currency, done, exploiting, forex, inefficiency, it, latest, magazine, my, session, systems, trader, volume

When you analyze the forex market one of the first things that becomes clear is that the finding of true volume information is very hard if not actually impossible. Since the forex market has no central exchange it would require a person to track all of the largest banks in the worlds in order to know the real volume and magnitude of the transactions being done. Doing this in a real-time fashion to get volume data like that of stocks or futures would be a gigantic task that would most likely be frustrated by the complexity and "disorganized" nature of the foreign exchange market. So the question becomes, is there any way to measure volume ? is there any way to design a system based on volume information ? During this post I will share with you some of what I have learned about this problem and the best solutions that we have to tackle this issue.

Even though there is no such thing as a source of true volume information in forex trading, we could find a property that is correlated with trading volume which allows us to trade it in a way similar to how we would actually trade "true volume". The only property which has been studied extensively and which does show a strong correlation with true volume (at least we know this from other markets) is the tick number which corresponds to the number of times price is refreshed on your trading platform. This means that if during an hour there are 50 price quotes, then this hour is bound to have much less volume than an hour where there are 1000 price quotes.

Our problem here would be to use this tick volume information in a manner that is as less broker dependent as possible. Since different brokers have different feeds, filtering and liquidity providers it becomes impossible to actually use values of absolute volume as the starting point of any given trading strategy. A system that would attempt to use tick volume absolute values would certainly fail since these values are totally broker dependent and there is no way in which they can be related with actual market inefficiencies.

However the most interesting part comes when we realize that tick volume does go into predictable cycles and that we could build an indicator that normalizes this values so that we can have an "oscillator" that describes tick volume movement relative to the past X bars. This indicator would be similar to the stochastic oscillator used on price charts with the difference that it would use tick volume data. The oscillator would move to high regions when we are trading near the volume tick high of the past X periods and to low regions when we are trading near tick volume lows. By obtaining volume information that is relative and does not rely on the absolute tick volume values of the instrument we are trading we can make sure that broker dependency would be diminished and the design of profitable trading systems could start to happen.

Such an indicator could be used in several ways to find and exploit possible inefficiencies. For example, we could trade breakouts when volume drops below a certain oscillator threshold or we could attempt to trade continuations whenever there a price action movement with enough tick volume towards a given side. We could in fact also use volume information to find meaningful situations where patterns that would normally not be very interesting become relevant when they happen within the high regions of the tick volume oscillator.
-
-
Certainly it is important to see that although there is no exact true volume information in forex the fact that we do have tick volume information and the fact that this tick volume is proportional to true market volume could allow us to develop successful systems since we have a totally new dimension of information which we dont have when we look exclusively at price charts. However it is very important here to realize that normalization of tick volume information is necessary in order to avoid broker dependency and such other problems that would make system development with absolute tick volume information a total nightmare.

The article right after mine on the last issue of currency trader magazine explores the use of some tick volume information and indicators for the development of long term profitable strategies showing that this indeed can be done, leading to very interesting results. Now it is my turn to see if Metatrader 4 is up to the task :o)

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 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)

forex trading games

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

From Beginner to Successful Trader How Long Does it Take ~ forex trading know how

2:37 AM in beginner, diversification, does, Forex, from, higher, how, it, long, profits, risks, strategy, successful, take, to, trader

It is not a secret that most people who begin to search for and study forex trading have the goal of becoming indepedent and successful traders in the long term. However, reality is different in the sense that most people who start their journey in forex trading dont end up as successful traders but as frustrated and tired individuals who sacrificed an important amount of their savings trying to get a grip of forex trading. Is there a magic formula to success ? Is there a quicker or slower way to do things ? On todays article I want to write about this very important question that almost all new traders ask : How long does it take to get from being a new trader to a successful one.

It is not easy to be a successful forex trader (or a trader in general), it requires patience, concentration, time, energy, intelligence and most importantly, it requires a lot of dedication and perseverance. Most people fall for the promises of quick riches and "easy trading" from many online gurus which - truth be told - are most of the time marketers who have not become successful traders themselves. New traders start their journey with high expectations of large profits in small amounts of time something that inevitably ends up with frustration and sometimes even denial as traders find out that trading is not an easy task after acquiring some experience.
--
But how long does it take for new traders to become successful ? Adding my personal experience to that of several experienced traders I know I can tell you : it depends. First of all, what do we consider success ? If success is having two consecutive years of trading in which any net profit is achieved, then - from what I know from others and experienced myself - it usually takes from 4 to 10 years of trading experience to achieve this goal. If enough capital is available, traders will usually also achieve living from trading within this time period.

What determines fast success or slow success ? Definitely I think that a good answer would be : your ability to learn. Traders who take longer to achieve profitability are more stubborn and less systematic when evaluating their trading performance than people who take shorter periods of time. Usually people who are methodical, have fixed periods of time for trading each day and analyze their trading - either done through manual or automated systems - in a very analytical way are those who can achieve success in the smaller time.

It is also true that this does not come without pain, effort and financial loss. Average profitable traders would have spent around 20K in wiped live accounts and their forex education before they can say "I made a net profit last year". A large majority of the successful traders I know have also wiped their first live account clean during their first year of live trading experience. Those who havent had close guidance and personal trading from an already successful trader showing how important it is to actually have advice from someone who is truly successful around this field.

I can tell you that - for me - this process took nearly 6 years. A time in which I wiped several live accounts - learned from my mistakes - and kept on going into my journey towards profitable forex trading. Now I can tell you that it was worth it but several thousands of times more diffcult than what peolpe wanted me to believe in the beginning. I had to discover my trading personality, understand the markets (something which is always in progress !) and learn to control my weakneses, which were evident after I started to analyze trades done by myself or my automated trading systems.

So in the end, what determines your success here - in forex trading - is not that different from what determines your success in life. You need to be consistent, analytical and willing to learn from your mistakes and the mistakes of others. If you would like to learn more about forex automated trading, the systems I use to trade and how you too can build 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 !

forex trading know how

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

Liquidity in Forex Part No 1 What it Means and Why it is Important ~ forex trading game app

3:54 PM in 1, and, characteristics, evaluating, forex, important, in, is, it, liquidity, means, no, part, quality, systems, trading, what, why

The term "liquidity" is used a lot in trading and finances since it is a vital aspect of market behavior. However, people often use this term very liberally in forex trading often without understanding its exact meaning and the implications of high or low values of this particular property. On this article I want to explain to you what the term "liquidity" is, what it exactly means, its implications within a given instrument and why it is such an important characteristic of the market.

Imagine that we had 20 people standing on a circle with 19 of them holding empty glasses and one of them holding a glass full of water. Now we want to see how much time it will take for the person with the glass to pour it onto the next one and so on until the water reaches him/her again. What we find is that it takes a long time for the water to be exchanged along the full circle because only 2 players are able to participate (the one holding and the one receiving) while all the others have to stay on the sidelines, waiting for their glass of water. Now imagine that we give half of them a glass of water, the process is much faster since the number of active participants has now increased to include everyone, all the people are actually exchanging water all the time.
-
-

Liquidity on the market is nothing else than the "water" in the above example, it is the amount of volume exchanged of a given instrument over a given amount of time. When there is high liquidity there is a lot of volume being exchanged and when there is low liquidity there is little volume being exchanged. When we have a lot of volume people can get in and out of the market easily (since there is always a buyer for every seller and vice versa) while when there is low liquidity the market gets "stuck" as people have to fight to get in or out of their positions. When there is low liquidity you also get harsher price movements since a person holding a position may be forced to drastically change the offering price to match what the other end - which is very scarce - wants. So while under high liquidity exchanges are easy and swift, under low liquidity prices move more erratically since the offered and accepted prices tend to have larger gaps between them. The consequences for the little trader are unpredictability and spread widening while for the large players the consequences are mainly not being able to get in or out of positions due to the lack of available exchange capacity.

Liquidity in the forex market is extremely difficult to read and study since the market has no central exchange but it is handled over a wide variety of banks worldwide in an over-the-counter manner. The volume of a given contract that has been exchanged during a certain period of time therefore becomes hard to read since it depends on the particular provider you are talking about. Even though the market is praised as being extremely liquid and huge, the fact is that this is only be true if you can access to all - or a lot - of liquidity providers (banks). If you limit yourself to just a few you will see that the liquidity you have access to is nowhere near the trillions of dollars people talk about.

When we are going to trade the foreign exchange market, knowing the liquidity levels of the instruments we want to trade is important since currency pairs with higher liquidity tend to be "easier to trade" since they show more inefficiencies characteristic of crowd behavior while instruments with low liquidity tend to show a more random walk much more characteristic of individual investor behavior. Therefore, instruments that are very liquid tend to be easier to exploit using mechanical trading systems while those that dont tend to be much harder to trade. However, as the time frames get bigger liquidity starts to become a less important factor and crowd-based inefficiencies still arise. This is the main reason why you should look for strategies based on larger time frames and longer period indicators when attempting to design systems for illiquid instruments.

On tomorrows post I will discuss the inner aspects of liquidity in the forex market a little bit more, I will discuss some of the currently available literature about the subject in economics and the liquidity characteristics of different currency pairs. If you however would like to learn more about automated trading and how you too can start designing and programming your own systems based on realistic and sound 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 !

forex trading game app

Read more

Free Trading Service Sneak Peek April 28 (updated) ~ forex trading nz

9:35 AM in 28, and, april, buy, fly, Forex, free, high, it, peek, service, sneak, trading, watch

You have no idea how many emails I get about trading services being absolute garbage. I hear story after story about how many companies are just scam artists. So I had a thought... I will contact several trading companies I know about and ask them to show their stuff live on camera for a day. 

I did this for several reasons.

1. If a trading signal company is legit, they will have no problem showing off what they have to offer.

2. This is also to show a little snippet of how each company does things.

3. I wanted to offer a free look inside the daily trade calls of different services because many traders are reluctant to try a new service at all. They have been reamed by scam artists for so long that they trust no one.

Now I sent many companies offers to participate. The majority turned me down. Several of these companies had a reason for doing so. Just because they are not on the list below does not mean they are scam artists.  The companies below are the ones willing to participate so I commend them for being confident in their services.

On Tuesday April 28, these companies will open up their services for free for everyone for a few hours. There are no log in credentials or free trial sign ups. Just click on the Live Feed URL and watch them in action. And when its over, its over.



---------------------------------------------------------------------------------


Ok guys, we have a little schedule for that day. There will be several live feeds. I dont know the end times as each company can end their feed whenever they feel the need to do so but I do have start times for you.

Also I have no control over what each company chooses to share with you. If you have questions about their service, please contact them directly. Dont contact me unless you are asking about Joaquin Trading because I cant speak for anyone but myself.



This will take place April 28, 2015



1. Alpha Trading Signals

Our first participant is Joshua Murakami who runs Alpha Trading Signals. He will be calling trades that will be posted in Nadex Trading Ideas around 5:30-6:30pm Eastern on Monday Night, April 27, the night before. These trades should expire on Tuesday April 28. Contact him at  https://www.facebook.com/joel.murakami

2. Slick Trade

Our Second Participant is Slick Trade. They will begin their feed around 7am Eastern on Tuesday April 28. The URL to the feed is https://zoom.us/j/5194900922 so all you need to do to see what they have to offer is just click on the link and watch. You may contact Slick Trade by visiting http://slicktrade.net/

3. Joaquin Trading

Our third participant is Joaquin Trading. We will begin our feed at 9:30am Eastern on Tuesday April 28. We will be focusing on the 5 minute binaries on Nadex and showing buy/sell signals right there on the screen all day long. Our live feed URL is https://www.uberconference.com/joaquintrading so just click the link and start watching. You can visit us at joaquintrading.com

4. TWT

Our fourth Participant is TWT. They will begin their live feed at any time on Tuesday April 28. Just click this link https://zoom.us/j/4427149930 and you can watch to see how Trey does it. You can contact TWT by sending Trey a message on facebook at https://www.facebook.com/trey.redd

5. Traden

Our fifth participant is Traden. They will begin their live feed at 12pm Eastern on Tuesday April 28. If you want to see how they roll, justc click the link here https://zoom.us/j/3023511868 around lunch time. You can visit traden here https://www.tradengroup.com/








Happy Trading!







forex trading nz

Read more

What is Forex Trading ~ forex trading mobile app

6:30 AM in a, cantor, day, exchange, forex, is, it, jaycobs, like, of, president, richard, spend, to, trading, what, whats, with

What is Forex Trading ?

Forex Trading Introduction

Forex (Forex) is an acronym for foreign currency exchange.

Forex Trading (Forex Trading) refers to purchases and sales of currencies or currency trade.
Forex currency trading market, refers to the global market.
The trade in this market is the currency of different countries.
Forex trading via the Internet in the modern era is even.
How to Sell on the Internet is krydu currency.
To know in detail about this study, please visit our web site.

?????? (Forex) ???? ????? ???????? ?? ???? ???

?????? ?????? (Forex Trading) ?? ???? ????? ?? ????? ?? ????? ?? ????? ????? ???

??? ?????? ?????? ?? ???? ????? ?? ????? ?? ????? ?????? ???

?? ?????? ??? ????? ????? ?? ????? ?? ????? ???? ???

?? ?? ???? ??? ??? ?????? ?????? ??????? ?? ????? ?? ??? ???? ??? 

??????? ?? ????? ?? ????? ????? ???? ?? ???? ?? ?

?? ???? ??? ????? ?? ???? ????? ?? ??? ????? ??? ???? ?? ?????? ???????

forex trading mobile app

Read more

Judging by the Amount of Trades Does it Really Matter ~ forex trading income calculator

1:10 AM in advisors, amount, an, by, does, expert, forex, it, judging, kagi, matter, of, really, review, the, trades, unbiased

New traders seem to have a fascination for strategies that trade often. One of the points I have noticed sellers always emphasize when attempting to sell an expert advisor is its trading frequency. People will look for the system that trades the most because "the more you trade the more you make" seems to be the ruling philosophy out there. However few of these traders ever stop to think if trading frequency is really a good or a bad thing. It is important to consider other factors when you take into account trading frequency and this will eventually lead any careful trader to realize that higher trading frequency is generally a bad thing and very rarely a positive characteristic of a trading system. Within this post I will discuss the subject of trading frequency and what the trading frequency of a system tells and doesnt tell us. I will also talk about the consequences of both styles of trading and why an intermediate system - that averages about 1 trade per week - seems to be the best answer.

You may remember that "infrequently trading" robot you bought that didnt seem to go anywhere. It waited and waited and traded only once or twice every month without bringing you any substantial profits (just a draw down) within the first 6 months of trading. You are disappointed and you want a system that trades and brings profits to you lightning fast. For this reason you decide to change for a system that trades quickly and seems to be fulfilling your promises, getting you a 50% profit on your account on your first month. You think - I was right - trading frequency was definitely the answer because the more you trade a "profitable system" the more money you make.

I believe that this is the story that goes around time and time again and what causes the general perception that "higher trading frequency" is better because it achieves faster profitability. In reality it doesnt necessarily do this but it only ensures that there is a faster turn out of the systems character and increases the number of trades per draw down and profitable period. So with a system that trades very often (5-10 times per week) you may get a lot of profit very quickly when the market is favorable and then when the market exposure is cashed you will get a lot of loses.

To be clear here, the trading frequency of a system is only an aspect secondary to the systems profitable character. You can have a system trading twice a year achieving the same profitability as a system that trades 10 times a week with some differences that make the first choice better. The most important thing here is the accuracy of the measurement of profitability. Generally systems that trade very often trade lower time frames and lend themselves to further broker dependency and inaccurate simulations while infrequent systems trading higher time frames will give very accurate and broker independent simulations that will allow you to have MUCH better estimates of profitability.

It is also true that the "effort" a trading logic needs to do to come out with profit if it trades frequently is much higher because it needs to make up much more money in spreads. A system that trades an average of 10 times per year pays only 10 times the spread while a system that trades 200 times each year pays 20 times more.
-
-
The fact is that the only advantage that frequent trading systems have over infrequent ones is the actual statistical significance of the simulations which is higher for a frequently trading system (if the simulations are indeed accurate). So a system that trades only once each year will have only 10 trades for the past ten years (which could not be interpreted as being long term profitable or unprofitable due to the small size of the sample) while a system that trades 100 times each year has more than 1000 trades which are more than enough to establish long term profitability - again - given accurate simulations.

However the advantages we get when we lean towards systems that trade infrequently is higher since we have an overall reduction in trading costs plus a gained accuracy in simulations which are vital to address the profit and risk targets of our different trading systems. For this reason the best compromise between both worlds seem to be systems that average 1-1.5 weeks every week with about 50-75 trades per year. These systems are generally traded on the one hour charts although use of higher time frames would also encourage less broker dependency and higher reliability. For example, the Ayotl trading system - my implementation of the turtle trading system - trades on the daily time frames with about 10-20 trades per year, giving very accurate simulations and a general lack of broker dependency. Systems like Watukushay No.2 trade much more frequently but this comes at the cost of higher broker dependency and spread costs due to the lower time frame used (one hour).

So as you see, more trading doesnt mean better since when this is taken to extremes simulation quality is drastically reduces - to the point of being pointless - and spread costs become a dramatic part of your trading systems profitability. If you would like to learn more about automated trading systems, their characteristics and development 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 calculator

Read more

Fxreviews Facebook Group Feel Free to Join ! ~ forex trading jokes

6:45 AM in article, check, currency, facebook, feel, Forex, free, fxreviews, group, it, join, june, magazine, my, out, to, trader

After talking to several people about the interaction with my website and getting my blog a little bit more online presense I decided to take a very important step forward and do an experiment using facebook. As you may all know, facebook is the most important social network out there and I trust that getting my blog into this environment will allow us to become a stronger community allowing me to better know you and allowing all of you to better know me. Of course, I think that hardly any other forex related individual is as open as me from a personal and business standpoint but I believe in transparency and I believe that only good things can come out when intentions are the best :o). On todays post I want to talk to you a little bit about this decision, the consequences I expect it to have and the decisions I have taken to prevent bad things from happening within the newly formed group.

Truth be told, I have never been the biggest fan of facebook. For the first three years in which I used it I barely had any friends because I kept on rejecting everybodys invitations. I certainly thought that facebook was nothing more than an invasion of privacy and giving everybody I knew the chance to join me as a friend didnt seem like the best of ideas. I certainly opened my facebook account to please my girlfriend, who likes to send me messages, cute stuff, etc, but I had never taken facebook seriously as either a way to keep in touch with people or do any kind of business.

Of course, the years passed and I started to change my mind. After allowing people to become my friends and adding a bunch of people from my high school and university I started to understand the good things about this platform and how to control the "reach" it has over my privacy. Finally you are the person who decides what to post and what not to post on your facebook account and you also decide how sensitive this information is when you accept new friends. Personally I have found facebook much more useful as a business development tool rather than a game-like website many people become addicted to.
-
-
From a blog stand-point I believe that facebook will be very useful in the sense that it will allow me to get a real grasp of how big my audience really is and what your expectations and opinons are. This is the reason why I have created a facebook link which takes you to the newly founded facebook group dealing with this website. You can join this group and become a fan of my blog :o) and this way you can start commenting, leaving messages, suggestions, etc without having to have a gmail or open-access account which is currently a requirement to leave comments on this blog. Of course, I am absolutely sure that there are a bunch of spammers and affiliates lined up to fill my groups blog with trash, reason why I have completely disabled the posting of links on the wall and groups forum.

So my expectations with this facebook group are high :o) I want you to join if you want, leave whatever comments, questions or suggestions you may have and help me take my writing and the contents of my blog to the next level. I will also be able to better hear your requests, your opinions and to help you reach that goal of further profitability and long term sustained growth in forex automated trading. By the way, you can also become my friend if you want by adding me to your facebook using the badge below :o) (thats my girlfriend by my side by the way !)

Daniel Fernandez

If you want to learn more about my journey in automated trading and how you too can become long term profitable using systems 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 jokes

Read more

Three Way Triangular Arbitrage in Forex Does it Work ~ forex trading for maximum profit pdf

5:13 AM in arbitrage, builder, does, forex, get, how, in, it, the, three, to, trader, triangular, umaki, way, work

One of the most interesting ideas in forex trading comes from what would seem to be a fundamental market inefficiency that would seem very easy to exploit by most market participants. Three way arbitrage is a trading technique that seeks to exploit inconsistencies in exchange rates arising from trading activity, inconsistencies that supposedly lead to tradable market inefficiencies. On todays article I will write a little bit about three way arbitrage, what it is, how it is traded and what the potential rewards may be. I will tell you why I think this cannot be done successfully by regular retail traders and why the rewards - if any - would be much lower than those of a regular long term profitable trading system.

When we have a large group of currencies and all their combinations are available as different currency pairs there is a basic consequence that leads to the trading of several pairs being equivalent to the trading of some crosses. For example if you are buying 1 lot EUR/JPY it would supposedly be equivalent to going long an equivalent on the EUR/USD and going long one equivalent on the USD/JPY. The idea is that your profits are dependent on the EUR/USD and the USD/JPY exchange rates such that the USD exposure is canceled and your net exposure comes from the indirect relationship of the EUR with the JPY. The below graph better explains this idea (using the EUR/USD, GBP/USD and EUR/GBP) (the graph was taken from here, where the concept is also further explained).
-
-
The three way arbitrate inefficiency now arises when we consider a case in which the EUR/JPY exchange rate is NOT equivalent to the EUR/USD/USD/JPY case so there must be something going on in the market that is causing a temporary inconsistency. If this inconsistency becomes large enough one can enter trades on the cross and the other pairs in opposite directions so that the discrepancy is corrected. Let us consider the following example :

EUR/JPY = 107.86
EUR/USD = 1.2713
USD/JPY = 84.75

The exchange rate inferred from the above would be 1.2713*84.75 which would be 107.74 and the actual rate is 107.86. What we can do now is short the EUR/JPY and go long EUR/USD and USD/JPY until the correlation is reestablished. Sounds easy, right ? The fact is that there are many important problems that make the exploitation of this three way arbitrage almost impossible.

The first problem is the trading cost. This three way arbitrage is based on taking very small profits from the market and as such it becomes extremely vulnerable to spread variations. A bad spread means that you will lose most of the profitability or that you will need to search for very large arbitrage gaps which are rare and often fall in line with news events when trading spreads are much higher and trading becomes much harder.

The second and biggest problem is execution. Not only will it be extremely hard to get into these orders without any slippage (since your profitability depends on it) but getting out might be even harder as you will be trying to squeeze a very small amount of profit from the market. These arbitrage opportunities are also searched by funds with ultra fast computers and direct connections to banking feeds and therefore the liquidity related to them will dry up terribly fast.

The simple fact when trying to trade three way arbitrage is that for a retail trader it will be almost impossible to profit given the amount of trading cost, the rarity of very good opportunities and the speed in which these opportunities "dry up" as traders with access to much faster computing power take advantage of them. In the end trying to exploit one of these trading techniques is bound to be MUCH harder than trading a simple long term profitable system since their profitability will depend on too many factors which the regular retail trader cannot control. As a matter of fact, the exploitation of every arbitrage opportunity greater than trading costs is something that banks and hedge funds do constantly, a practice that aids to keep exchange rates equalized also making these opportunities for retail traders practically nonexistent.

As always there is no "free lunch" in forex trading and success comes from knowledge and understanding and not from the exploitation of some "magical" trading system that no one else takes advantage of.

If you would like to gain an education around automated trading and learn how you too can make up your own systems with sound profit and draw down 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)

forex trading for maximum profit pdf

Read more