Archive for the ‘General’ Category
Is Fap Turbo the kind of Forex trading automated software you should be looking for?
January 11th, 2009
The Forex trading is also referred to as the FX trading. With the spike of interest in the Forex trading, there are many types of Forex trading robots that are exploding out on the Internet, but in reality, they are just scams. What kind of Forex trading automated software you should be looking for?
If you want to learn about the Forex trading and join the millions who are making money in the Forex markets, but you do not want to risk your personal wealth, FAP Turbo is the perfect solution for you. FAP Turbo Robot is one of the best online Forex trading programs that offers ‘demo’ account while you are learning the methods involved in Forex trading.
You will open a ‘demo’ account using the FAP Turbo system. You will then be able to read the news, find and compare markets, and you will be able to make ‘phony’ trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the FAP Turbo Robot to make real money.
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Placing Trades Using the 14 Day and 100 Day Moving Averages as Indicators
January 7th, 2009
#1—This only works on Daily Charts.
What this entails is being short on a pair when the 14 day Moving Average (MA) crosses below the 100 day MA, or vice versa, being long when the 14 day MA crosses above the 100 day MA.
When I do enter a trade using this method, I want to be able to put a stop loss in at 100-200 points below the previous day’s close—This is how I will calculate my risk—If I need to place my stop loss 200 points below my entry, then I adjust my trade size accordingly.
Finding the best entry point of 100-200 points stop loss (your 100-200 point stop being outside the previous day’s range being the crucial factor), is part and parcel of this advanced strategy……
Placing pending orders that only get filled if the price lands within this crucial risk-management range…..then just taking some time off and checking back 12 hours later to see if it got filled is another crucial method that would have to be employed here ie: patience and discipline.
According to all my scenarios that I have back-tested (I back tested them candlestick by candlestick by hand, just advancing my screen so I only see one candlestick at a time using daily candlesticks only), in that if you can enter a position and keep your stop outside of the previous day’s range then good. If you can enter a position and you are able to keep your stop outside of the previous 3 day’s ranges, then great.
Using that mindset as a guide, I went back on 6 pairs starting August 2008 using daily bars (candlestick) by daily bar, and rolled my stops up to just below (assuming it was a bullish trade) the last 3 days’ range——
Almost without fail that would have kept me in trades right up to very close to the point where they crossed the 14 MA going against me, and would have earned me 500 to 1000+ points every month—only when the 14 ma was on my side of the 100 ma though…..
14 MA is Bear of the 100 MA–I bet Bear.
14 MA is Bull of the 100 MA I bet Bull.
This works on all pairs traded against the USD…it works in theory on every chart I’ve tried it on…….It works on crude, corn, sugar, wheat, pork bellies you name it…Thing is in Forex it needs to have a close par value with the USD.
Take the South African Rand for example (USDZAR)…
It had a 27,500 point move in October 2008 against the USD, but it was only worth around $.08 cents USD per point.
EUR, GBP, CHF, SGD, AUD, NZD, JPY & CAD are all close enough to being 1-on-1 with the USD to make each point worth your time.
Let’s say I risk 3% of my account on EURUSD and it takes off, and I am able to roll my stop up to a guaranteed profit by following my rules above….that means that money is no longer at risk, so I should be looking to ADD to (pyramid) that position.
Imagine trading 8 pairs and pyramiding each one over a 2-3 month period, and doing that 2-3 times a year.
This isn’t the Holy Grail–keeping a sharp eye on the fundamentals along with being able to see what a “selling wick” or “buying wick” is & a few other basics though, can enhance this strategy.
Brought to you courtesy of ForexCornerstone.com
Best Forex Trading Indicators – 4 Simple Effective Ones For Bigger …
December 12th, 2008
Best Forex Trading Indicators – 4 Simple Effective Ones For Bigger Profits
Here we will look at some of the best Forex Trading indicators and how you can combine them into a simple robust Forex trading strategy for long term gains…
No single Forex trading indicator works all the time by itself and the way you combine them is essential. Many traders make the mistake of the thinking the more indicators they combine the better – Wrong!
If you do this the system has too many elements to break; you only need a few and your Forex trading system will be simple and robust in the face of ever changing prices.
Right lets build our Forex trading system and look at some of the best Forex trading indicators to help you build a trend following Forex trading system.
First Identify the Trend.
This is obvious by looking at a bar chart but you also want to use moving averages as well. Simple moving averages are great in terms of smoothing out the fluctuations and two great periods to use are first, the 40 day MA to identify the long term trend. Secondly, use the 20 day MA to buy and sell back to in a strong trend and you will find this moving average is excellent for getting in on a trend in motion, with optimium risk / reward.
Spotting the Set Ups
We don’t have time to cover this in detail here but there are a couple of points that are the key to maximizing profits. Firstly, be patient and only trade high odds set ups and secondly, make sure you trade breaks to new highs and lows all the big trends start and continue from them so you need to trade them.
Bollinger Bands – Check Volatility and Standard Deviation
Ask most traders what standard deviation of price is and you will probably get a blank look but an understanding of standard deviation of price and volatility is something that all forex traders need to know about and if you don’t, make part of your forex education and learn about Bollinger Bands.
Bollinger Bands are not used to for market timing – but give you an all round view of volatility price and when you understand this concept, Bollinger Bands can help you in 3 ways:
They can alert you to potential big moves, help set targets and spot market value and entry levels.
Best Forex Trading Indicators for Confirming
When you spot a potential opportunity, you need to confirm the move and make sure price momentum is going the way you wish to trade. There are plenty of momentum indicators but for the last 25 Years I have found the following two the best. There easy to learn and apply, lets take a quick look at them.
The Relative Strength Index (RSI)
A great leading indicator to time your trading signals with. If the RSI supports your view of the market you can use it in strong trends – or when it diverges from the prevailing trend ( from over bought or over sold) to enter trades against the prevailing trend.
The Stochastic Indicator
The best Forex trading indicator of all for better market timing and when combined with the RSI you have a dynamite combination. The stochastic is a simple indicator but is the ultimate timing tool for timing trading signals in my view. If you use stochastic crossovers to confirm your move, you will get the odds on your side. It’s also very effective for timing contrary positions. A stochastic cross, from over bought or oversold levels, against the trend is a highly effective way of getting in on the big contrary trades.
Simple and Effective
There are other great indicators around such as the ADX indicator, MACD and many others but as a blend the above 4 indicators with a bar chart are my best forex trading indicators for profit and they have served me well over the last 25 years.
The indicators are easy to learn, apply and if blended correctly, can add a new dimension to your forex trading strategy.
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Making Money From Forex Trading Systems
December 12th, 2008
Making Money From Forex Trading Systems
The Currency markets never sleeps and several trillions dollars are traded everyday, making the Foreign Exchange Market the World’s biggest and most exciting investment market. In recent years, mechanical currency trading systems, using technical analysis to predict trend movements have become increasingly popular as a way of locking into, and profiting from the longer term currency trends.
Forex trading systems are ideal for generating profits from longer-term currency trends, and they occur in all currencies. The longer-term trends in Forex markets reflect the state of the economy. As economic cycles are relatively long and take years, so do the currency trends that reflect these cycles. A good Forex trading system can enable traders to lock into, and make profits from these longer-term trends. When choosing currencies to trade, it is important to have good long-term trends, but just as important is liquidity, which enables traders to lock in profits and exit losing trades quickly.
Currencies that offer good trends and liquidity include:
- The US Dollar
- Swiss Franc
- Euro
- Japanese Yen
- British Pound.
Forex trading systems remove emotions from trading, which is the major reason the majority of traders end up losing. There has been plenty of material written about using currency trading systems, and the works below provides informative reading for anyone thinking of using a Forex trading system.
Traders should try to read the following authors:
Edwin Lefeurve, Jake Bernstein, Larry Williams, Ken Roberts, Van Tharpe and Jack Shwager whose books “Market Wizards” and “The New Market Wizards” interview some of the most successful traders of all time, including the turtles. The Turtles are group of traders who had no prior trading experience, but went on to earn hundreds of millions of dollars, using very simple mechanical trading systems.
The developments in recent years in computer software, the growth of the Internet, and online trading, has seen Forex trading systems become more popular than ever. Software Packages such as Tradestation, Supercharts, Omni trader, and many more, allow traders to back test systems, using a variety of technical indicators that include:
- Forex Autopilot (F.A.P. Turbo)
- Stochastics
- Bollinger bands
- RSI
- moving averages
- ADX
And many more.
The Forex trading system picked can then be analyised, to see how it would have performed in the markets with commissions and slippage deducted. Traders, who don’t want to develop a currency trading system, can buy systems off the shelf from vendors.
How do you Choose a Successful Forex Trading System?
If you are buying a Forex trading system, there are several things to consider before parting with your hard earned cash:
1. Are you interested in being a day trader, or a trader looking for longer-term trends? You need to pick a system that you’re comfortable with and this is mostly down to personal preference. Some traders like the excitement of day trading others prefer a longer-term approach.
2. Do you want to have any input into the system, or do you want it to be totally mechanical?
3. Do you want to trade just one currency, or a basket of currencies? Using a Forex trading system that trades just one currency can be more profitable but keep in mind, the converse is true, i.e losses and drawdowns can be larger.
4. When choosing a trading system you need to have confidence to trade with it, and follow the system through losing periods. To do this you should know the logic the system is based upon. If you understand the system and its logic, you will derive confidence and be more likely to follow it – in contrast to one where the logic is not revealed.
5. What are the average profits you can expect in relation to drawdowns? All currency trading systems will have periods of drawdown and losses. Generally the larger the profits the bigger the drawdowns tend to be over time – so pick a system that reflects your investment aims and risk tolerance.
6. When you are buying a currency trading system, check out the system seller’s experience, track record, customer support. See whether they have a real-time track record, or a hypothetical one.
A real time track records means the system has performed in the market and made money. Trading systems that simply rely on hypothetical track records mean they have been back tested and with the benefit of hindsight we can all make money.
While hypothetical track records should be treated with a degree of caution, you can find out a lot about whether the system is likely to make money, by knowing the logic the system is based on. When considering a hypothetical track record, look for one where the logic is revealed and not a “black box system” where you have no idea how to system works.
In conclusion, you can make your own Forex trading system, or you can buy one from a vendor. When choosing one from a vendor make sure you do your homework, and remember, if it looks too good to be true, it probably is.
By: Jason Hamilton
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Jason Hamilton has been successfully trading the Forex market since 2002. He recently reviewed the popular Fap Turbo – Forex Trading Robot, which can be read at: Fap Turbo Review
Learn To Trade Forex Successful Using The 4 Types Of Forex Trading …
December 12th, 2008
Learn To Trade Forex Successful Using The 4 Types Of Forex Trading Indicators
If you are new to forex trading, do you know which types of technical indicators are for what kinds of usage? And if you are already an experienced forex trader, are you using the correct combinations of technical indicators to help you profit consistently in the forex market? If you are still not sure, we’ll discuss the following 4 different types of forex technical indicators below:
1. Trend Indicators – Also known as Directional Indicators. I have always reminded my students, ‘Trend is your best friend and always trade in the direction of a trend’. A forex trend may be quite subjective to different traders as they may have different views on trendiness. So those trend indicators out there in the forex market can help traders detect the starting and ending of a trend. Some of the more popular trend following indicators includes MACD (Moving Average Convergence Divergence), MA (Moving Average), Parabolic SAR. Depending just on trend indicators is not enough, you may need Momentum Indicator(s) to enter and/or exit a trade.
2. Momentum indicator – Also known as Strength Indicators. It is described as the speed of a move in price over a period of time. They are oscillators which are able to indicate whether the forex market is in the overbought or oversold regions. If they have risen to the overbought zone, there is high possibility that the price will be going down, and if they have fallen to oversold zone, there is high possibility price will be going up. Some of the more popular oscillating indicators in forex trading include Stochastic, Momentum, RSI (Relative Strength Index), CCI (Commodity Channel Index).
3. Volatility indicators – Also known as Bands Indicators. Often, a change in volatility will lead to a change in price. Therefore, we can see how active the forex market is just by looking at the price ranges. You may want to trade when there is a dramatic change in price movements, which suggests that the market is actively trading forex. Some of the more popular Volatility Indicator includes BB (Bollinger Bands), ATR (Average True Range), Envelopes.
4. Volume indicator – They are used to show the volume of forex trading and are useful to confirm the direction of a trend, a reversal or a breakout. Price movements increase when the volume increases, low volume may warn of a reversal in a forex trade. If a currency pair trades from a narrow range and then breaks out on high volume, this is a strong signal and may suggest a breakout. Some of the more widely used Volume Indicator includes Demand Index, Chaikin Money Flow, Money Flow Index, Ease Of Movement, OBV (On Balance Volume).
I’m sure that after the above discussions, you should have a better idea of the different types of forex technical indicators. While they can greatly help you in technical analysis and make trading decisions, I want to stress that NO forex indicators is holy grail. The indicators are just a confirmation of history and a guide for the future. Most importantly, you need to know the right combination of the forex technical indicators to get you profitable consistently in the long haul. You can find a forex trading system which has a very good combination of indicators in my forex ebook which I give for FREE. Good trading to all.
By: DanielPips
Article Directory: http://www.articledashboard.com
To learn more forex tips and discover a time tested, simple but proven trading system, download my 56-page “Forex Trading To Riches” ebook free at www.forextradingpower.com
The author, Daniel S, is the owner of www.ForexTradingPower.com where he provides premium forex tips and resources.
