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Saturday, May 7, 2016

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
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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.
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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

How To Get Umaki The Trader Builder ~ forex trading free

7:53 AM in automated, builder, easy, Forex, get, how, in, its, logical, nonexistence, of, profit, proof, the, to, trader, trading, umaki

If you have been reading my blog recently you might be aware about the development of a trading tool I have built to use the metatrader 4 strategy tester as a "live" trading platform that would let us speed up the process of manual or discretionary system evaluation to a great extent. The tool allows us to use the visual backtesting feature of the strategy tester to trade on "live evolving charts" as we would trade the real market. You can read more about this tool and what it does here. On todays post I want to talk about the meaning of the word Umaki and how you can get this useful tool to increase the speed in which you learn to trade manually and understand the forex trading market.

What does Umaki mean ? Contrary to my general expert advisors which use words in Quechua or Nahuatl as their names (all experts of the Watukushay project use them) this trade-learning tool uses a word in Zulu, the language of a very well known group of Southern African tribes, to describe the EA. Umaki means "builder" in Zulu, I named it this way because I consider Umaki to be a "trader builder" a tool which can be used to get to successful manual trading much quicker - yet with a LOT of additional effort - in currency trading.

Why Zulu ? You might be asking. The reason for this is because of the way in which Umaki will be shared with all of you. Since Umaki does NOT have anything to do with automated trading but just with manual and discretionary trading I decided not to make it available within Asirikuy but to use it as a way to do something better.
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This is when I remembered the "Treasures of Africa" foundation one of my favorite charities dedicated to the protection and shelter of children in Tanzania. This foundation is run by a group of very dedicated and selfless Christians who attempt to do the impossible day after day to bring some hope into the heart of Africa. I have to say that the job they do is absolutely amazing and I have always greatly enjoyed to help them in as much as I can with what they need. I have to say that I also think the name of this charity is absolutely incredible, I can assure you that after you see their pictures youll understand that diamonds are not the true treasures of Africa.

When I programmed Umaki it seemed like the perfect opportunity to help them and to do something to make the world better, even if it is only a grain of sand. If you want to get the Umaki EA to further develop your manual trading abilities please donate some amount of money (any amount you want) to the "Treasures of Africa" foundation. It would be absolutely great if you not only donated some money but also committed to the sponsoring of one of their children. Sponsoring a child is an absolutely wonderful endeavor and I can assure you that it is a true way in which you can make a difference to change some of the bad things happening around the world.

If you have made your donation or have started sponsoring a child please send me an email to ekans_(at)hotmail.com with a copy of your payment receipt and Ill be glad to send you the link to download the Umaki mql4 code along with a small set of instructions on how to use the EA. The download link and instructions will be sent to you within 24 hours after I receive your email. I believe that for people who want to become serious discretionary traders Umaki will be a very good tool and for everyone who sponsors a child rewards will go far beyond those of trading. Also remember that the donations you make to this charity are entirely tax deductible (at least under US law).
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If you however would like to learn more about educating yourself to be successful in automated trading 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 free

Slow Moving Averages Crossover Strategy ~ forex trading experience

8:53 PM in a, achievement, averages, crossover, evolve, Forex, from, fxreviews, mechanicalforex, milestone, moving, o, slow, strategy, time, to

Use time frame and currency which respond the best (1 hour, 1 day… or any other).

Indicators: (multiple of 7) 7 SMA, 14 SMA, 21 SMA.

Entry rules: When 7 SMA goes through 14 and continues through 21, BUY/SELL in the direction of 7 SMA once price gets through 21 SMA.

Exit rules: exit when 7 SMA goes back and touches 21 SMA.

Advantages: again it is an easy set up and does not require any calculations or other studies. Can produce very good results during strong market moves, the system also can be easily programmed and traded automatically.

Disadvantages: System requires periodical monitoring according to a chosen time frame. SMA indicator signal can be confirmed after the current price bar has been fully formed and closed. In other words, when SMA stops changing and the signal is fixed, traders may rely on such information to open a trade.

Source: forex-strategies-revealed

forex trading experience

Staying Single How to Avoid Falling in Love with Trades ~ forex trading income

8:11 PM in a, avoid, falling, five, Forex, how, in, love, not, reasons, single, staying, system, to, trades, trading, use, with

When we embark ourselves in the incredible adventure that is trading, we quickly find that the worst obstacle to achieve our goals is nothing but ourselves. In all the years I have been trading I could tell you that most of the problems I have had have been caused by my own actions which have been a consequence of my - sometimes - irrational thinking. One of the worst ways in which I affected my own trading in the beginning was what I would call my "love affairs" with trades. When we start to trade we tend to make every position we enter too important because in the beginning we all generally lack focus and perspective regarding trading as a business. On todays post I will talk about this great problem I had when I started trading and I will share with you some of the things I did to "stay single" and avoid this disastrous experiences with my trades.

It was a sunny afternoon several years ago when I decided that everything was set. The stars had aligned, my setup had come true and I finally had a perfect EUR/JPY trade ready for entry. I entered the trade, entered my stop loss and take profit levels and waited for a few hundred dollars to go into my account. However, the market decided that the odds were against me and I was facing a position very close to my stoploss in a few hours. Then I remember that the EUR/JPY had done this to me before and I exit my trade only to find out I would have hit my TP after a few hours. My decision -based on this irrational thinking - was to give my trade "more room", I moved my stoploss to allow the trade to continue. Then it moved even MORE against me and it wiped my trade. I ended up losing almost 4 times what I had initially planed to lose and the position never bounced back to the level I had set as a TP.
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This is only one of the several examples of times in which I fell in love with a trade and refused to let it go. The consequence was not only a significant financial loss in my account but a feeling made up of frustration and anger that had a snow ball effect that made me revenge trade the market and end up at an even worse point. When you trade like this you are operating your business like a 5 year old, good things - profitable trades - make you very happy and euphoric while bad things - losing trades - make you absolutely frustrated and angry. It certainly took me a few months but I finally realized that this was a recipe for total disaster.

To change this is no easy thing because the present - the trade on your screen - has an inevitable effect on you psychologically. It is extremely difficult to stay calm and trade your system like you were meant to trade it, to avoid intervention and to avoid feeling like a winner or loser based on some limited trading results. This was the most difficult thing I had to do to become a profitable trader to remove these emotions and become immune to the short term emotional effects trades had on me.

How did I do it (and continue to do it!) ? What worked for me was simply to change my perspective from a short term look to a long term look. I realized that trading wasnt working for me because I was too focused on short term results (turning a profitable trade today) rather than on long term results (obtaining a good average yearly return). My strategies and trading didnt have any long term focus and this was the reason why I wasnt getting anywhere. I decided that if this was going to work for me I needed to have long term targets and I needed to know exactly how my systems would perform in the long term. How long and deep their draw down periods were, how many losing trades I could be expecting, etc.

The change here was from night to day. When I started to have a long term outlook on trading as a business and I had a clear perspective on the way my systems worked, understanding why they were going to be most likely successful in the long term and when exactly I needed to stop trading them if they werent was a blessing to my trading career. Losing trades just became a characteristic of my systems and intervention became a clear thing to avoid since it was obviously detrimental to my systems results. I became a very cold-minded trader and I have successfully managed to avoid "falling in love" with my trades.

To me a trade right now is simply a very small part of what constitutes my long term goals and therefore it simply makes no sense to get happy or sad about the outcome of any single one of them. Certainly if you are a new trader my advice for you is simple, write down a plan that is extremely clear and that has all the detailed characteristics of your trading system laid out (draw down periods, expected loses, expected profits, etc). Know exactly what you are getting into and gain a LONG term perspective into your trading. Treat your trading like a business with long term goals and you will gain an amazing level of control and discipline that will put you on your way to become a profitable trader.

If you would like to learn more about automated trading and how you can use automated trading systems to improve your trading abilities 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

Do you want to Buy secure Trading Expert Adviser ~ forex trading made easy

2:17 PM in adviser, buy, do, expert, Forex, latest, low, risk, secure, technique, to, trading, want, you

Fxtradewar Evenpro is a safe and secure Trading Robot. Even pro is 90% to 96% Secure & Accurate. and this is a very good percentage. And Drawdown is very very Low. Drawdown depend on Your Account Belance, Lot sizE, and Spread. Monthly Gain Profit 80% to 100% or 100% to 200%. if you want to buy this EA contact below address: Email: fxtradewar@gmail.com Skype: Fxtradewar Website: http://fxtradewar.com/ Related Search Kewords: Always Profitable Expert Advisor Forex Trading Forex expert advisor scalping always win Forex expert advisor Forex Trend trading expert advisor Forex swing trading expert advisor Best forex trading EA Trend trading EA Profitable EA Result Automated Make Money with Expert Advisor Low Risk Trading Expert Advisor Forex Robot Make Money without Risk Risk free trading EA in forex Always make money Robot Classic performace Expert Advisor Best Ea in the forex market Always make Good profit with Robot auto trading Ea Strong Strategy Expert Robot EA Best strategy Result in Forex Monthly profit gain with robot Forex Bot gain a lot of money without risk No risk no loss Real money making EA robot Robotic Trading in forex Robot make double your money Gain profit with Risk free Robot Double your account with Fxtradewar Evenpro Evenpro latest trading robot How to make money with EA expert advisor In The Forex Market forexautomatedtrading forextradingblog tradeforex whatisforextrading bestforex expertadvisorgenerator howtotradeforex automatedforextradingsoftware mtexpertadvisorbuilder forexmarket forexexpertadvisorfree forextradingnews daytradingforex mqlexpertadvisor bestexpertadvisors bestforexsystem freeexpertadvisors expertadvisormetatrader forextradingcourses forextradingtutorial bestforexexpertadvisor tradingsystemforex forextradingmarket expertadvisorforum forextradingtraining

forex trading made easy

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
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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
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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

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

Steps to Design a Likely Long Term Profitable Trading System ~ forex trading legit

11:31 PM in a, advisors, an, design, expert, fish, Forex, likely, long, profitable, review, robot, steps, system, term, to, trading, unbiased

To tell the truth, making a likely long term profitable trading system is a very difficult thing to do. When you search online for people who attempt to design profitable trading systems you will find that most of them dont have a mechanical, well-thought approach to system design and the final achievements are usually based on an initial "thought" based on repetitive and almost constant modifications to eliminate short term draw down periods which are natural to long term profitable systems. In the end, the result is a set of dangerous systems - sometimes without even accurate simulations abilities - that will put account equity at a very important risk of long term total loss. On todays post I want to write a little bit about my steps in system design and the main characteristics of my mechanical approach to sound trading system development.

So where do we start ? You will see that most traders who have never coded a likely long term profitable system will start by coding a given entry logic found on a forum or studied briefly through limited demo trading or visual backtesting. What they do then is assign a fixed lot size to trading and some given - almost always arbitrary - stoploss and profit target values with no particular extensive study. What you get then is a system that has no possibilities of success and which is flawed from the beginning since it has no adaptation, no real sound studies behind it and simply not enough focus on money management (which is lot sizing plus exit logic). This is revealed when traders start to put these systems to the test but instead of looking at the development process as a source of the problem they usually end up adding unsound tactics - such as martingales - over optimizing their exit values, adding complexity to the entries and other things which in the end lead to the generation of a system - which is simply - very bad.

First of all, there are probably many ways in which successful system design can be approached. I am going to discuss mine because it has worked for me and has led to the generation of many long term profitable systems but you should use my approach only as a guide to develop your own way of tackling the system design problem, as something different may work better for you.

What are the necessary steps to successful system development ? I have prepared a practical diagram (click to enlarge) showing you graphically the process I take in order to develop trading systems - including all those within the Watukushay Project - and all other experts. You will see that the first step I take is a design of an entry logic followed by a mathematical expectancy analysis which defines the trading systems potential. If the mathematical expectancy analysis is not positive, then I modify the entry logic or the evaluated number of periods and time frame until I am able to achieve a positive value. Most people would be surprised to know how little importance the entry logic actually has as most entry mechanisms have some degree of positive mathematical expectancy on different time frames or periods. The problem with the usual system development tactic used by most new traders is that they dont do a mathematical expectancy analysis at all, therefore, they truly dont know the potential of their system or if it is being used on the adequate time frame or if they are targetting adequate profit and loss values per trade.
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After doing this analysis - and having positive results - I continue to develop the systems money management which will be the KEY to the systems long term profitability. Using the previous mathematical expectancy analysis I figure out what exits (as adaptive TP and SL) and what time frame will be the most beneficial to my system, always taking care to use time frames and profit targets to preserve the reliability of the simulations being done. Defining an adaptive lot sizing technique which modifies positions against both balance and volatility is also vital to ANY trading systems long term success. Many people underestimate the HUGE importance lot sizing has, having a fixed lot size or adapting lot sizes against a fixed percentage of account balance is a death sentence for most trading systems.

The next steps are probably the most important and the ones new traders and most designers never do. You need to do a 10 year backtest and then a TRADE BY TRADE analysis of the results to design adequate internal exit logic mechanisms to increase the profitability of the systems. After you introduce a new trading logic you need to check if the expected payoff (which measures the relationship between profit and draw down) is increased. If it is not, then you need to go back to a TRADE BY TRADE analysis until you come up with a logic that works.

After you find a closing logic that increases the expected payoff you need to optimize variables in an uncorrelated way - one by one - with large steps to prevent any significant curve fitting that may happen (some variables however, like the SL and TP adaptive criteria, may be optimized in a correlated fashion). After this is done you need to evaluate your results and ask yourself if you are satisfied with the draw down and profit targets of your system. If you are, then you are done. If you are not, then you need to go back and analyze TRADE BY TRADE a 10 year backtest to come up with other closing mechanisms to increase profitability.

I believe that this approach, which attempts to increase system profitability through analysis and sound development is incredibly powerful at generating long term profitable systems. Usually people focus way too much on the potential of the trading strategy - the development of entries - when in reality very simple entries have very good potential and only the development of adequate exit mechanisms really guarantees that large profitability levels are achieved. If you see the graph, most of my efforts are around the development of profitability as only the initial mathematical expectancy analysis is devoted to potential.

In the end, profitable system development is NOT easy and requires many hours of hard work and development. Each analysis of a 10 year backtesting result can take me hours - sometimes even days - of work but in the end this analysis is absolutely necessary as it gives me the understanding necessary to implement good exit criteria that will bring my systems to new profitability levels. All this effort that goes into development also allows me to deeply understand my systems and trade them with confidence under very varied market conditions.

The above way of developing systems has allowed me to develop several expert advisors which show success on 10 year backtests and also on live trading accounts, adapting to changes in market conditions and tackling true market inefficiencies. If you would like to learn more about system development and how you too can develop your own long term profitable systems 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 legit

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.
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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.
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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.
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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 !

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Strategy Diversification Higher Profits Higher Risks ~ forex trading kindergarten

7:46 AM in an, diversification, do, easy, Forex, higher, not, of, profitability, profits, proving, risks, scalpers, strategy, the, thing, to

If you look into the Asirikuy website, one of the main objectives around my development of automated trading systems is to develop experts we can use to makeup a successful porftolio of long term profitable trading systems. Most traders - new and experienced - believe intuitively that adding several strategies to a portfolio will diminish risk in the sense that the possibility to attain significant draw down levels will be reduced. However, through my experience and analysis of portfolio diversification I have found that - although portfolio trading is great - great care must be taken in both the makeup of the systems and the evaluation of the actual risk levels used to avoid catastrophic loses due to a "massive" portfolio failure. During this post I want to talk a little bit about the things you must take into account when designing a portfolio and how risk must be carefully studied to come up with a reasonable "worst case" scenario.

Why is portfolio trading great ? Well, we all know that having all our eggs in one basket is not so good. When we use a single trading strategy we are exposed to several problems which can be avoided when many different strategies are used. For example, we are not subject to the "hard hand" of the market as when one of our strategies is unable to profit from its set market inefficiencies another one will most likely be able to. So in the end what we get is a diminishment in our market exposure without a reduction in our profitability since - in the end- we will reach the same profit levels on all systems as if we had if we had run them by themselves. There is also a very positive psychological effect of running portfolios in the sense that "someone" will be winning and you will have something good to look at almost all the time. A shield you wont have if you have to endure the draw downs attained by a single trading system.
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However, new traders generally take portfolio design too lightly. It is simply not a matter of putting all the systems you can within an account, put a very high risk level and hope for the best. No, it is not about that and that strategy usually leads to account wipeouts and other such problems. You need to make up your portfolio with a very clear plan and knowledge of what you will do when certain scenarios present themselves.

First of all, each separate system must have its OWN risk projections and its own worst case scenario (the point where the system has simply become to risky to continue trading). You need to know into how much draw down each system will go because each draw down will contribute to the overall loses of the account. Second - and most important - you need to calculate your portfolio risk accurately. To do this you need to calculate the sum of all the projected draw downs and have this as your worst-case portfolio scenario.

In the end each system will be able to reach twice its historically worst perfoming point (the worst case individual scenario) and the portfolios worst scenario will be the addition of all the systems historical maximum risk levels. In the end, systems have a flexibility to reach higher than expected draw downs (which are likely going to happen in the future) and the portfolio will be able to reach larger than expected risk additions since its "worst point" is an addition of draw down. This in turn means that portfolios have a lower risk thresehold than the systems, mainly because they need to reduce risk through diversification -if this doesnt happen - the portfolio is simply not working.

In the end doing this analysis will ensure that you have CLEAR targets for your risk and clear "stops" in your accounts loses (since you know when to stop individual systems or the whole portfolio). One of the most important things in trading is to have a plan and trading a portfolio with a previous risk analysis is VITAL for survival. Of course, making sure that each one of the systems used is long term profitable is also of extreme importance and something which will make the success of a trading portfolio much more likely. (for those of you who are Asirikuy members a video will be out this Sunday better explaining a lot about portfolio makeup and analysis).

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

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Without Risk 60 to 100 Profitable Expert Adviser ~ forex trading millionaires

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Fxtradewar Evenpro (v1.2) Expert Advisor , has been created by the **Fx Tradewar**.

FxtTradewar Evenpro is a new EA that I particularly like. Evenpro is a safe and secure Trading Robot.
Our EAs can get 60% to 100% profit what ever the amount invested and the most imporatant aspect of our EAs Drawdown which can not be more than 15% in worst case scanerio. For more information visit our site or contact us.

May be Monthly Profit Reach 60% to 100% more than 200%.

Fxtradewar Evenpro EA work only ECN Accounts who have a Low Spread and low Commission.

The Ea strategy is based on Strong High & Low Level.The strategy is called “BreakEven Stop”.
Tradewar Evenpro trades the EURUSD on the M30 or H1 timeframe. The user can set the initial lot size (by default 0.5 lots) & (1.00 Lots).

It also uses a safe compounding strategy that automatically use a very small Stoploss (15 Pips to 20 Pips).
One of the most interesting things is the trailing procedure that is implemented in the EA.

When The Order Executed EA follow the trailing stop (by default Point 1 or Point 3).
This EA Performances are really Good.

If you want to buy Please feel free to Contact given below the address.

Skype : Fxtradewar
Email at: fxtradewar@gmail.com Phone: +92-3456673414 Website: Www.fxtradewar.com/

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Getting the Right Mind Set Distinguishing Between Expenses and Failures ~ forex trading hours today

9:55 PM in and, between, chart, daily, distinguishing, expenses, failures, five, Forex, frame, getting, love, mind, reason, right, set, the, this, time, to

Certainly when people start to get into forex trading every little trade that doesnt go their way seems like a gigantic failure. Definitely the reasons why this is the case are many but perhaps the most important one is that new traders do not have an approach to trading that lets them make the distinction between what is a failure and what is a normal trade that simply went wrong when everything was done "by the book". On todays post I will be talking about the distinction between trades that fail and trades that lose, I will define each one and I will attempt to give you some guidelines so that you can change your mindset and start approaching trading from a more business like perspective. Hopefully after reading this post you will apply this to your trading and you will find out that most of your so called "failures" are just business expenses while many of your profitable trades, are just failures.

Cataloging trades that go "wrong" and end up in losing territory as failures is easy because when we lose money we tend to feel like losers. It is therefore very normal to consider losing trades failures in the beginning. However after you have been trading for a while it becomes obvious that losing is an inherent part of long term profitable trading and that learning to catalogue losing trades differently is important to approach trading with the right mindset. In reality, when every trade is placed there is a natural probability that it may turn out to be a loser (the trades market exposure) and therefore when you execute everything as planned and you lose, it is just a temporary consequence of your strategy.

When you approach trading like a business, this becomes a business expense and the trade become a triumph since you planned you trade and traded your plan. This in turn makes it easier to deal with losing trades since you approach them in a very non-emotional way, simply as some temporary events that will lead to some future profitability. Therefore losing trades that are a consequence of a well laid out plan with accurate long term profit and draw down targets are not failures, they are just part of your business model.
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Failures - on the other hand - are all the trades you take that deviate from your business plan. When you intervene with your plan and make emotional changes to your trading methodology or system you are indeed failing at trading because you are moving away from your "business model". If you made a trade in which you took a decision that generated a lot of profit but that decision led to a road where the long term probability of success was unknown then you have failed because what you obtained was some profit out of some luck. Long term survival in forex trading is about having a plan and executing the plan to get to where you want to be, any deviations from the plan are failures since they lead you a road of unpredictability and uncertainty that will end up with failure.

In order to trade forex successfully I focus on trading as a business and on the trades taken by my systems as a business plan. Any losing trades that happen are merely "business expenses" and all of them are triumphs in the sense that they represent my confidence in the strategy and the business plan. I now understand that any action I take that may intervene with my strategies will deviate me from my long term profitability objective and this for me has become unacceptable since these changes constitute failures of what I want to achieve.

So in the end, loses are a natural part of trading and they will always be there. Dealing with loses is something which is naturally hard to do but you should be able to make the distinction and take loses that are part of a well laid out plan as business expenses while those trades that get you to uncharted territory should be regarded as failures. This mindset will get you on a track of long term thinking and understanding that will ultimately lead to long term profitable trading.

If you would like to learn more about automated trading systems and how you too could use them to succeed in forex trading by building your own systems with reliable trading tactics and accurate 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 !

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How to Create Pakistan forum Account ~ forex trading minimum deposit

6:34 PM in account, create, Forex, forum, how, pakistan, rules, to, trading

How to Create Pakistan forum Account.

Open Below the link and go to forum posting site.

Follow All given Below steps .

http://forex-pak.com/forum.php?referrerid=27272

Registration Link

Step 1: Click on Register Button

Earn Daily 8$ without any investment

100% Real work

Step 2: Type Username Note: No space in your username
Step 3: Set your password (Note) You must type first one word in Captical Letter in password Field. Otherwise you did not complete regitration process.

Step 4: Type Your Email address in email address field and confirm email address field.

Step 5: Type Captcha Code

Step 6: Do not change Referrer you can see given below the picture.
If Referrer Field is Empty then Please type there (smilefile01)

Step 7: Do not Change Time Zone. and Dst Correction Option.
This is very important things for you in future.

Step 8: Enable only Receive Email from Administrators

Step : 9
Click on I have read, and agree to abide by the PAKISTAN Forex Forum rules.
And click Complete Registration Button

See on picture.

Step : 10
After Complete Registration you will receive a mail from pakistan forum.

Check that mail in this mail you can see 2 links

Open First Link for verification. When you open that link your account is verified. and you can see a page like given below screen shot.

I hope this information is very helpful for you.
If you did not Understand anything please Feel free to contact me on my Skype or Phone.

We provide all kind information about Forum Posting.

Phone : 0345-6673414
My Skype ID: Geynstuff

Registration Link

http://forex-pak.com/forum.php?referrerid=27272

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The Ability To Make Money The True Reward of Forex Trading ~ forex trading login

11:00 PM in ability, advisors, agent, an, expert, forex, make, money, of, review, reward, secret, the, to, trading, true, unbiased

One of the biggest reasons why most forex traders fail to be profitable in the long term or the reason why most are unable to achieve their financial goals through trading is usually lack of capitalization. I have spoken several times about this issue and the fact that most - if not all new traders - seek to achieve financial independence with a usually very small account in the order of 5-10K or even less. The truth is certainly that this is not possible in a sustained manner over a long period of time.

Even if your needs were as low as 1K, producing 10% in average every month is most likely impossible as the self-limiting character of inefficiencies in the market would prevent this achievement for a very long time. As a matter of fact, there are no examples - to the best of my knowledge - of people who have achieved this degree of proficiency for at least 5 years with most people who speak about this profit levels being "sustainable" achieving them in small periods of time. It therefore remains true that such targets are unachievable under statistically significant periods of time (5-10 years) (if you have real evidence of an example of someone who has achieved this please do let me know !).
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Why do the best fund managers and traders in the world earn so much money if their returns - to the beginning forex trader at least - seem so humble ? The truth is actually that making money in the market (and keeping it !) is extremely difficult and achieving proficiency that allows survival under many different market conditions is very difficult. The ability to stand through deep and extended draw down periods and the ability to have confidence in ones strategy is a vital part of achieving this hard endeavor.

This is why when you are able to achieve profitability during a statistically relevant period you can say that you have acquired one of the rarest abilities in todays modern financial world : The ability to make money. You have indeed succeeded in the use of trading strategies to exploit market inefficiencies in a sustainable fashion, something which is terribly difficult to do and absolutely valuable. Even if you did so only with a 1000 USD account, the fact that you now master this skill makes your income potential effectively limitless.

After taking this step at mastering the ability to make money it is now time to make forex trading a real business for you. If you really want to make money trading, then you cannot limit yourself to the trading of your own capital, you need to start managing other peoples funds in order to increase your income potential to levels which fit your life style. With a five year verified track record there will be many people fighting for you to manage their funds and I can assure you that you will not have problems finding people willing to get the diversification and "higher than stocks" average yearly return you will be offering.

In the end you need to focus on developing your ability to make money and you need to think about trading as a business to sell this ability. Do not limit yourself to your own capital. If you truly have the skills to make money then there should be no fear in sharing this ability with others. You will explain them all the risk and your track record would also show the ups and downs of a 5 year trading period. In the end your ability will shine on its own and even if you can "only" make a 15% average yearly return, you will have literally millions of dollars lined up for your management.

Tomorrow I will write a post about the technical and regulatory aspects concerning money management in forex so that those of you interested in this path will have a better idea of how to follow it. If you would like to know more about my journey in automated trading and how you too can code systems geared at achieving long term profitability please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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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

Playing with Bollinger Bands A Likely Long Term Profitable Strategy ~ forex trading jobs in banks

1:17 PM in a, bands, bollinger, facebook, feel, Forex, free, fxreviews, group, join, likely, long, playing, profitable, strategy, term, to, with

Last week I wrote a post about the Bollinger Bands indicator and how I thought it could be exploited to achieve good profitability levels in forex trading. After doing a full analysis going through a visual 5-6 year backtest, a mathematical expectancy analysis and the final coding and testing of the strategy I can tell you that I have come up with a likely long term profitable system based exclusively on Bollinger Bands. Asirikuy members would definitely want to checkout last weeks video in which I explain the whole development process in detail showing you all the steps necessary to go from an idea to an actual, coded expert with great possibilities of long term success. On todays post I want to give my regular readers a look into this strategy and the results it finally achieves.

My first idea for coding this Bollinger Band system was taken from the thoughts I had a week ago regarding this strategy. I based the making of this strategy in the fact that when a bar closes above a certain number of volatility adjusted steps outside 2 standard deviations an important "signal" is given that predicts long term movements in that direction to a good extent. As I pointed last week, this strategy also signals a retracement in conjunction with the trend following aspect but definitely I wanted to explore the trend following aspects of the strategy first.

The mathematical expectancy analysis of this strategy wasnt disappointing at all with positive results for almost all period perspectives on the one hour charts. However - interestingly enough - long periods of time revealed a great characteristic of this system which is the predictive power over a singificantly long amount of time with almost no moves into unprofitable territory. This means that the strategy would definitely lend itself to the making of a system that could use an extremely favorable risk to reward ratio. Designing my systems money management around the conclusions of the mathematical expectancy analysis results I came up with a strategy that held a risk to reward ratio of exactly 1 : 4 meaning that the system can take four loses for each winning trade. For me this is quite unprecedented sine most strategies I coded have a risk to reward ratio oscillating from 2 : 1 to 1 : 3 but I had never been able to achieve such a high expectancy for winning trades with success. The results I achieved for a 10 year backtest (2000-2010) on the EUR/USD one hour chart are shown below.
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I have to say that I was very impressed to see that such a simple strategy with absolutely no internal closing criteria besides the TP and SL could achieve such an incredible performance. This strategy definitely shows that it is not complexity what determines the success of a trading strategy but true understanding of the underlying price action. Once you have some idea of how the market behaves and how indicators can be used to exploit an inefficiency a likely long term profitable system from a very simple set of logic can arise. It is important here to say that the above shown results are unoptimized and simply the variable settngs are the result of the mathematical expectancy analysis (for those who are wondering, yes, I tried a trailing stop but a solid TP works much better)

Simulations of this system are also bound to be quite accurate since the average value of the TP is well above 200 pips, meaning that this EA has an incredibly large take profit value that could not be faked by any type of simulation interference. Moreover, the EA only enters trades based on last bars close and therefore explicitely controls bar opening, something that is bound to make trading systems more reliable and back/live testing consistent. Of course, we would need to test this expert to find out but I believe that this system can be improved a lot more before actually releasing it as a Watukushay EA. It is however important to say that GREAT part of this straegys success is based on its volatility adjusted money management that allows it to adjust to changes in market conditions. Using a fixed SL or TP leads to incredible loses showing how adaptive money management is VITAL to achieve profitability.
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As you see on the above image, the success of the strategy is based in the fact that trades are taken almost always after a successful bollinger band breakout. However the fact that we are not focusing on the actual contraction/expansion of the bands but on the statistical meaning of a highly deviated price result makes us enter only meaningful breakouts while others that might have been entered on a contraction/expansion criteria (which is also hard to define) are avoided. The strategy does take a lot of loses (strategies with high reward to risk ratios are often very hard to trade psychologically because of this) however the great thing is that losing trades become evident after only a small move against us, allowing us to preserve the great 1:4 risk to reward ratio.

Currently I have created a forum post within the asirikuy community forum so that we can start improving this strategy and making it become a solid Asirikuy contribution. Of course, the system lacks any internal closing criteria and coming up with relevant ways to improve the systems closing of positions should be vital if this system is to be released for use in the future. If you would like to learn more about automated trading and how you too can come up with and design systems with long term profitability in mind please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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The 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.
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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.
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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).
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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)

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Fast Moving Averages Crossover Strategy ~ forex trading etf

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Trading systems based on fast moving averages are quite easy to follow. Lets take a look at this simple system.

Currency pairs: ANY

Time frame chart: 1 hour or 15 minute chart.

Indicators: 10 EMA, 25 EMA, 50 EMA.

Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).

Exit rules: option1: exit when 10 EMA crosses 25 EMA again.

option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current price bar after so called “touch” has been closed on the opposite side of 50 EMA).

Advantages: it is easy to use, and it gives very good results when the market is trending, during big price break-outs and big price moves.

Disadvantages: Fast moving average indicator is a follow-up indicator or it is also called a lagging indicator, which means it does not predict future market directions, but rather reflects current situation on the market. This characteristic makes it vulnerable: firstly, because it can change its signals any time, secondly – because need to watch it all the time; and finally, when market trades sideways (no trend) with very little fluctuation in price it can give many false signals, so it is not suggested to use it during such periods.

Source: forex-strategies-revealed

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