Wednesday, 17 February 2010
Monday, 1 February 2010
Friday, 29 January 2010
Bespoke Forex Automated Trading Software; the begining
At last! After about 18 months of pushing, shoving, paying out huge sums of money to contacts in other parts of the world, I've finally done it ! My preferred way of trading (manually) has now been fully automated...... And unlike most of the "open-market" automated trading systems (expert advisers) I've seen and used, my very own version trades on a positive risk/reward basis, meaning 1 winning trade is greater in value than 1 losing trade.
Anyone who's tried an automated forex trading system will no doubt, have seen that the usual effect of "the odd loss" has an uncanny way of wiping out several past profitable trades - and they're the GOOD ONE'S ! The not-so-good-one's I've seen take out 8 or 9 past profit trades due to stop-loss levels being placed at over 100 - 200 pips away....... WOW ! You've sure got to be confident that the trading strategy itself not only HAS a very high strike rate of winning, but more importantly, can KEEP IT !
I'll spare you the intricacies here, but you just wouldn't believe the job I had to convince the people I needed to help me produce my "bit-of-kit", that I was serious when I said that it MUST trade on a positive risk/reward........... You see, the vast majority of trading within The Forex Market - manual as well as automated - is conducted on the traditional negative risk/reward basis; ie to go for, say, 25 pips in the market, risk levels would typically be placed 50 to 75 pips the other side to give the market room to breathe. The fact is, The Forex Market is pretty random and does have a tendency to move at a very fast pace which is why this is a common trading methodology, particularly with "scalping" trading strategies.
During my earlier trading days, I had 2 accounts completely wiped out and remember being left that second time, scratching my head knowing on the one hand that serious money IS made in this market, but realising it was never going to come my way unless I changed something.
It was only when I looked at the maths BEHIND any strategy I cared to trade, did I realise that with certain strategies I could stack the odds well-and-truely in my favour. After all, with just a risk/reward ratio of 1:2, if I just got it right 50% of the time, I'd be up handsomely.
From those very next manual trades I adopted this methodology and do you know what ?.............. Hmm, I haven't had an account wiped out since, despite many losing trades I might add. And it was from here, when I learned of the brilliant concept of automated trading, I searched for something that would fit my trading style......... but there wasn't one out there; what a shame, I thought.
It turned out NOT to be a shame because it inspired me to go the distance and create my own system which would have my own methodology and favoured trading strategy, that is the "break out".
I particularly prefer this strategy because there aren't any indicators to look at nor be confused about. In my (humble) opinion, any indicator only lags the actual market price anyway, which can often lead to giving false signals for entering the market and as such, only to be stopped-out a little later (and yes, I've done my fair share of those kind of trades in the past, too. Not any more!)
Of the 3 currency pairs that have been tested, troubleshooted, tweaked and then re-tested, at the time of this post 2 of them are producing r/r ratios of 1:4 and the other at an acceptable 1:2.4. For me, this is great news because in real terms, my accuracy rates with this bespoke automated system need only be around 30% to be better than breakeven. Actual accuracy seems to fall around 55% to 65% over 6 to 12 month periods so there's plenty of room for error. And the only other thing that's needed of course - to let the law of averages do it's thing - is enough trading opportunities, which there are over any given year period (100+).
Anyway, I just wanted you to know where I am with this. My system will not be for sale but I do intend to let a small group of people share in it's profitability......... news of which will follow in later posts. (I'm just learning how to create video files which will help explain what I've accomplished and show the thing in action, so you'll see proof of the greatness that's here !)
Anyone who's tried an automated forex trading system will no doubt, have seen that the usual effect of "the odd loss" has an uncanny way of wiping out several past profitable trades - and they're the GOOD ONE'S ! The not-so-good-one's I've seen take out 8 or 9 past profit trades due to stop-loss levels being placed at over 100 - 200 pips away....... WOW ! You've sure got to be confident that the trading strategy itself not only HAS a very high strike rate of winning, but more importantly, can KEEP IT !
I'll spare you the intricacies here, but you just wouldn't believe the job I had to convince the people I needed to help me produce my "bit-of-kit", that I was serious when I said that it MUST trade on a positive risk/reward........... You see, the vast majority of trading within The Forex Market - manual as well as automated - is conducted on the traditional negative risk/reward basis; ie to go for, say, 25 pips in the market, risk levels would typically be placed 50 to 75 pips the other side to give the market room to breathe. The fact is, The Forex Market is pretty random and does have a tendency to move at a very fast pace which is why this is a common trading methodology, particularly with "scalping" trading strategies.
During my earlier trading days, I had 2 accounts completely wiped out and remember being left that second time, scratching my head knowing on the one hand that serious money IS made in this market, but realising it was never going to come my way unless I changed something.
It was only when I looked at the maths BEHIND any strategy I cared to trade, did I realise that with certain strategies I could stack the odds well-and-truely in my favour. After all, with just a risk/reward ratio of 1:2, if I just got it right 50% of the time, I'd be up handsomely.
From those very next manual trades I adopted this methodology and do you know what ?.............. Hmm, I haven't had an account wiped out since, despite many losing trades I might add. And it was from here, when I learned of the brilliant concept of automated trading, I searched for something that would fit my trading style......... but there wasn't one out there; what a shame, I thought.
It turned out NOT to be a shame because it inspired me to go the distance and create my own system which would have my own methodology and favoured trading strategy, that is the "break out".
I particularly prefer this strategy because there aren't any indicators to look at nor be confused about. In my (humble) opinion, any indicator only lags the actual market price anyway, which can often lead to giving false signals for entering the market and as such, only to be stopped-out a little later (and yes, I've done my fair share of those kind of trades in the past, too. Not any more!)
Of the 3 currency pairs that have been tested, troubleshooted, tweaked and then re-tested, at the time of this post 2 of them are producing r/r ratios of 1:4 and the other at an acceptable 1:2.4. For me, this is great news because in real terms, my accuracy rates with this bespoke automated system need only be around 30% to be better than breakeven. Actual accuracy seems to fall around 55% to 65% over 6 to 12 month periods so there's plenty of room for error. And the only other thing that's needed of course - to let the law of averages do it's thing - is enough trading opportunities, which there are over any given year period (100+).
Anyway, I just wanted you to know where I am with this. My system will not be for sale but I do intend to let a small group of people share in it's profitability......... news of which will follow in later posts. (I'm just learning how to create video files which will help explain what I've accomplished and show the thing in action, so you'll see proof of the greatness that's here !)
Wednesday, 9 December 2009
Best Automated Forex Trading Software - Find the Most Profitable and Reliable Forex Expert Adviser
Today many forex traders are looking for the best automated forex trading software to make trading easier and profitable. In fact if you search online then you will find out that there are several trading programs in the market. You can easily get started with any kind of forex robots but selecting the most reliable and profitable software is a tricky part here. If you try to analyze each and very one then you will definitely get a headache. That's why if you want to discover how and where to get the most profitable forex expert advisers, then read further.
To find the best software we have to first find out what is exactly an expert adviser and what are its basic functions. Today there are numerous forex programs which claim to be the best forex adviser or forex robot. But in reality they are completely useless and unreliable piece of programs which do not deliver their hyped promises of higher ROI.
Basically an expert adviser or forex robot is an automatic software program which performs the different trading functions with little to no user intervention at all in the trading process. Because of its ease and convenience this program has become very popular amongst many newbie and expert forex traders. But in reality many of these kinds of programs are not efficient and effective enough to get higher investment profits.
Many of these programs represent test simulations of past market performances which basically gives better results. But when it comes to live market data, these simulations fail to deliver the end result. So my advice is do not believe these kinds of test simulations which are based on the past market data but you should better believe those programs which shows you results from live market trading.
Most of the times it is found that software with a good track record may or may not necessarily be the most profitable and reliable. Always check their audited track records first. It will at least make sure that the software was successful in the past trading but it will not guarantee any sure shot profits in the future. One more way to find out about the profitability of any forex program is to check out the popular forex trading forums and user communities where you get to know the comments and feedback of the users who have already tested the program in live market conditions.
But the most reliable way to select the profitable forex expert adviser is to actually test it in the live market conditions. It is not necessary for you to purchase the program first but the software creators actually allow you to test their product in live markets. You get to see how actually that particular software works and whether it can provide any profits in trial version. In my opinion this is the best way to find out whether or not a particular forex robot is profitable.
Are you looking for the most reliable and profitable automated forex trading software? If yes then click the following link to read our in-depth reviews on the best forex robots and start profiting from every forex trade now onwards. http://bestforexrobotsreviews.blogspot.com
Article Source: http://EzineArticles.com/?expert=Alan_J._Desouza
To find the best software we have to first find out what is exactly an expert adviser and what are its basic functions. Today there are numerous forex programs which claim to be the best forex adviser or forex robot. But in reality they are completely useless and unreliable piece of programs which do not deliver their hyped promises of higher ROI.
Basically an expert adviser or forex robot is an automatic software program which performs the different trading functions with little to no user intervention at all in the trading process. Because of its ease and convenience this program has become very popular amongst many newbie and expert forex traders. But in reality many of these kinds of programs are not efficient and effective enough to get higher investment profits.
Many of these programs represent test simulations of past market performances which basically gives better results. But when it comes to live market data, these simulations fail to deliver the end result. So my advice is do not believe these kinds of test simulations which are based on the past market data but you should better believe those programs which shows you results from live market trading.
Most of the times it is found that software with a good track record may or may not necessarily be the most profitable and reliable. Always check their audited track records first. It will at least make sure that the software was successful in the past trading but it will not guarantee any sure shot profits in the future. One more way to find out about the profitability of any forex program is to check out the popular forex trading forums and user communities where you get to know the comments and feedback of the users who have already tested the program in live market conditions.
But the most reliable way to select the profitable forex expert adviser is to actually test it in the live market conditions. It is not necessary for you to purchase the program first but the software creators actually allow you to test their product in live markets. You get to see how actually that particular software works and whether it can provide any profits in trial version. In my opinion this is the best way to find out whether or not a particular forex robot is profitable.
Are you looking for the most reliable and profitable automated forex trading software? If yes then click the following link to read our in-depth reviews on the best forex robots and start profiting from every forex trade now onwards. http://bestforexrobotsreviews.blogspot.com
Article Source: http://EzineArticles.com/?expert=Alan_J._Desouza
Tuesday, 24 November 2009
Monday, 23 November 2009
Forex Trading - The Untold Truth About Trading Forex With an Expert Adviser
In this article I separate fact from fiction and take an objective look at how to understand the proper approach to Forex trading in general, how to select an EA for trading Forex and how best to use your EA to capture maximum long-term gains.
Far too many Forex traders approach the Forex market with the idea that Forex trading is about making money quickly. Forex is not a get rich quick solution. It is vital that you understand this concept well otherwise do yourself a favor and don't trade Forex at all.
You must understand that you can accumulate a great deal of wealth by trading Forex but it will NOT happen over night. If you are looking to make an over night killing, you are better off buying a lottery ticket or taking your chances at the casino
Take it from someone who has been around the Forex 'block' more times than he cares to remember: Use a logical and analytical approach in selecting your EA for Forex trading. The key feature I look for is consistency.
Closely examining accurate back test results is one method to use in evaluating the consistency of an EA. The first thing to look for in the back test results is the percent accuracy of the test itself. Look for a minimum of 90 percent accuracy. Next, look at the number of wins and the average amount won. Look next at the number of losing trades and the average loss.
When comparing back test results between EA's be sure you are comparing apples to apples. Compare lot sizes traded, percent accuracy and the results themselves.
It would be nice if you could find an EA that never lost a trade. While I agree that such a 'holy grail' scenario is seductively attractive it simply is not realistic and you should beware of anyone promising such results.
Forex trading is all about numbers. The numbers that matter most in selecting your EA are the number of winning trades times the average win versus the number of losing trades times the average loss. This ratio will help you gauge the consistency of your EA.
Trust me, if your average win were to equal your average loss then you can do extremely well in Forex if you win just 60% of your trades!
Let's talk about two key money management dynamics that can make you or break you in Forex. The first is the concept of consistency. Being able to deal with changing market conditions is a far more important trait for an EA than some pie in the sky promise of winning every trade. Winning consistently - even if they are relatively small wins - is the real key to selecting an EA.
Small consecutive wins add up to a big bank account. Forex trading is never about making a huge amount of money in a short time. It takes time for a Forex trading account to grow. Let me repeat, if you are after big wins in a short period of time then stick with gambling in the casinos and leave the Forex market alone.
The Forex trader's biggest enemy is greed. Don't try to go over the top. Trade a good system. Place small trades and be patient. If you have selected your EA well then it will pay off. I promise.
Far too many Forex traders will purchase an EA, plug it in, and trade it for a few days. The first time it loses a trade they are back on Google looking for a new EA. This is a big mistake.
In Forex, learning to control your greed is a prerequisite for achieving great wealth. Take controlled risks, never let your greed take over your decision making process.
Every EA has good times and bad times. Be ready to treat the bad times just as you would the good times. If you have selected your EA well then the good times will out weigh the bad times and you will make progress. Does that mean that you will never have any bad times? No absolutely not. A losing trade will happen at some point in time.
Maybe not tomorrow, next week, or next month, but eventually you will lose a Forex trade. Your job as a Forex trader is to treat that loss with the same respect that you treat the gainers.
Your job as a Forex trader is to manage your money in such a way that when the inevitable loss comes you stay in the game and recuperate. Not to jump around and find another so-called solution.
Remember the story of the tortoise and the hare: slow and steady wins the race!
The key to long-term success in Forex is to include correct money management into your Forex trading. The bottom line is to control your risk. Never trade more than you can afford to lose.
The key is to grow your Forex trading account little by little over time. Yes you will get losers but if the Forex trading system you are using is accurate enough those losers will be recovered. Again, this is where patience comes in by not jumping from one solution to the next.
The second, and even more powerful, key dynamic is 'profiting on your profits'. In other words, compounding.
It is amazing how an account can grow when you begin to profit on your profits and you are patient and disciplined. That is the secret to winning the Forex game. Small consecutive wins boosted by the profits on your profits concept.
Forex trading is all about numbers. No more no less. As long as your winners out weigh your losers you are on your way. Start small - grow big.
Forex trading is not about making money quickly; it is about intelligently growing your account over time with proper money management. And compounding - profiting on your profits. Taking controlled risks and being patient.
Finding a consistent EA is great but that's not enough. Your job is also to learn how to use the EA properly. It's not enough to just purchase the EA you have to be smarter than the others in using it.
I hope I can bring you closer to what Forex trading is all about. Forex trading can be very profitable so long as it is done correctly and not perceived as a get rich quick solution.
If you:
Apply good money management rules
Avoid the get rich quick mentality
Control your greed
And be disciplined...
Then you will be light years ahead of the competition. You belong to that special top 1% percent group. The group that looks at the 'hares' and understands how silly their approach to trading really is
The name of the Forex trading game is to grow big but at the same time to be strictly disciplined. If you understand that the statistics are on your side then you won't let a losing trade deviate you from your objective of making it big time in this exciting venture.
If you take to heart the concepts we have talked about here today then you will surely get your fair share of the Forex market - the largest and most liquid market on earth.
Disclaimer - This article is for educational purposes only. It is not offered as investment advice. The reader assumes all responsibility for any and all profits or losses incurred by his or her trading activities.
David R. Jaymes makes it easy for you to shorten your learning curve and help you onto the Forex trading Profit curve. To claim your FREE eBook: Successful Forex Trading Secrets Revealed visit this site now: Forex Trading Site
Article Source: http://EzineArticles.com/?expert=David_R_Jaymes
Far too many Forex traders approach the Forex market with the idea that Forex trading is about making money quickly. Forex is not a get rich quick solution. It is vital that you understand this concept well otherwise do yourself a favor and don't trade Forex at all.
You must understand that you can accumulate a great deal of wealth by trading Forex but it will NOT happen over night. If you are looking to make an over night killing, you are better off buying a lottery ticket or taking your chances at the casino
Take it from someone who has been around the Forex 'block' more times than he cares to remember: Use a logical and analytical approach in selecting your EA for Forex trading. The key feature I look for is consistency.
Closely examining accurate back test results is one method to use in evaluating the consistency of an EA. The first thing to look for in the back test results is the percent accuracy of the test itself. Look for a minimum of 90 percent accuracy. Next, look at the number of wins and the average amount won. Look next at the number of losing trades and the average loss.
When comparing back test results between EA's be sure you are comparing apples to apples. Compare lot sizes traded, percent accuracy and the results themselves.
It would be nice if you could find an EA that never lost a trade. While I agree that such a 'holy grail' scenario is seductively attractive it simply is not realistic and you should beware of anyone promising such results.
Forex trading is all about numbers. The numbers that matter most in selecting your EA are the number of winning trades times the average win versus the number of losing trades times the average loss. This ratio will help you gauge the consistency of your EA.
Trust me, if your average win were to equal your average loss then you can do extremely well in Forex if you win just 60% of your trades!
Let's talk about two key money management dynamics that can make you or break you in Forex. The first is the concept of consistency. Being able to deal with changing market conditions is a far more important trait for an EA than some pie in the sky promise of winning every trade. Winning consistently - even if they are relatively small wins - is the real key to selecting an EA.
Small consecutive wins add up to a big bank account. Forex trading is never about making a huge amount of money in a short time. It takes time for a Forex trading account to grow. Let me repeat, if you are after big wins in a short period of time then stick with gambling in the casinos and leave the Forex market alone.
The Forex trader's biggest enemy is greed. Don't try to go over the top. Trade a good system. Place small trades and be patient. If you have selected your EA well then it will pay off. I promise.
Far too many Forex traders will purchase an EA, plug it in, and trade it for a few days. The first time it loses a trade they are back on Google looking for a new EA. This is a big mistake.
In Forex, learning to control your greed is a prerequisite for achieving great wealth. Take controlled risks, never let your greed take over your decision making process.
Every EA has good times and bad times. Be ready to treat the bad times just as you would the good times. If you have selected your EA well then the good times will out weigh the bad times and you will make progress. Does that mean that you will never have any bad times? No absolutely not. A losing trade will happen at some point in time.
Maybe not tomorrow, next week, or next month, but eventually you will lose a Forex trade. Your job as a Forex trader is to treat that loss with the same respect that you treat the gainers.
Your job as a Forex trader is to manage your money in such a way that when the inevitable loss comes you stay in the game and recuperate. Not to jump around and find another so-called solution.
Remember the story of the tortoise and the hare: slow and steady wins the race!
The key to long-term success in Forex is to include correct money management into your Forex trading. The bottom line is to control your risk. Never trade more than you can afford to lose.
The key is to grow your Forex trading account little by little over time. Yes you will get losers but if the Forex trading system you are using is accurate enough those losers will be recovered. Again, this is where patience comes in by not jumping from one solution to the next.
The second, and even more powerful, key dynamic is 'profiting on your profits'. In other words, compounding.
It is amazing how an account can grow when you begin to profit on your profits and you are patient and disciplined. That is the secret to winning the Forex game. Small consecutive wins boosted by the profits on your profits concept.
Forex trading is all about numbers. No more no less. As long as your winners out weigh your losers you are on your way. Start small - grow big.
Forex trading is not about making money quickly; it is about intelligently growing your account over time with proper money management. And compounding - profiting on your profits. Taking controlled risks and being patient.
Finding a consistent EA is great but that's not enough. Your job is also to learn how to use the EA properly. It's not enough to just purchase the EA you have to be smarter than the others in using it.
I hope I can bring you closer to what Forex trading is all about. Forex trading can be very profitable so long as it is done correctly and not perceived as a get rich quick solution.
If you:
Apply good money management rules
Avoid the get rich quick mentality
Control your greed
And be disciplined...
Then you will be light years ahead of the competition. You belong to that special top 1% percent group. The group that looks at the 'hares' and understands how silly their approach to trading really is
The name of the Forex trading game is to grow big but at the same time to be strictly disciplined. If you understand that the statistics are on your side then you won't let a losing trade deviate you from your objective of making it big time in this exciting venture.
If you take to heart the concepts we have talked about here today then you will surely get your fair share of the Forex market - the largest and most liquid market on earth.
Disclaimer - This article is for educational purposes only. It is not offered as investment advice. The reader assumes all responsibility for any and all profits or losses incurred by his or her trading activities.
David R. Jaymes makes it easy for you to shorten your learning curve and help you onto the Forex trading Profit curve. To claim your FREE eBook: Successful Forex Trading Secrets Revealed visit this site now: Forex Trading Site
Article Source: http://EzineArticles.com/?expert=David_R_Jaymes
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