|
|
|
A Short Introduction To FOREX.
FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the...
Advantages of Trading FOREX over Stocks and Commodities.
There are many advantages to Trading FOREX as your main income generator. Let’s start by something that may be worrying you already. “Do I need a Diploma or some kind of Certification to trade FOREX?” The answer is this: When attempting to make...
Forex Pivot Points: Mapping Your Time Frame
It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is...
Generate Traffic And Make Money
A quite new wave sweeps over the internet. Websites with
rotating ads offer their members to surf on their websites. The
members can gain free credits in order to generate traffic to
their websites. They also can earn money for surfing on...
Managing The Forex Accounts For You
Managed forex accounts are a boon for those who don't have the time to devote to the foreign exchange dealing. It's also for those who don't have the expertise to deal in the foreign exchange markets. Professionals are there for managing forex...
|
|
| |
|
|
|
|
|
|
FOREX ExpertAdvisor Mechanical Trading Systems: What Every Trader Should Know
iExpertAdvisor
- "information and ideas about FOREX trading systems"
FOREX ExpertAdvisor Mechanical Trading Systems: What Every
Trader Should Know
Most successful FOREX traders use a handful of diverse trading
strategies. Which strategy used may depend on the particular
currency pair, recent price action or patterns, market
volatility and/or a myriad of other variables.
The simple fact that a trader needs an arsenal of strategies
suggests the need for at least one mechanical trading system.
In the recent past, the obstacles to develop, test and run a
mechanical trading system were significant. Expensive, complex
software platforms, coupled with costly real-time data feeds
required a significant investment of time and money. In
addition, the quantity and quality of brokers offering such
services was limited.
Today, this is no longer the case. There are several free
automated trading platforms available from a number of different
brokers. One popular platform is MetaTrader 3.0, which uses the
MQL II language to develop what MetaTrader calls an Expert
Advisor. (In addition to MetaTrader 3.0, there is a newer
version, MetaTrader 4.0. MetaTrader 3.0 is generally easier to
learn by a non-programmer and is a better choice for a trader
creating their first mechanical trading system).
Since this platform is free, and most introducing brokers offer
demo accounts, it is an excellent opportunity for a FOREX trader
to evaluate mechanical trading without incurring any upfront
costs.
But what are the benefits of developing and running one's own
mechanical trading system? Should a trader - especially one who
is a not a programmer - spend their valuable time learning this
skill?
The answer is an overwhelming "yes". There are at least four
reasons developing a mechanical trading system is worthy of a
traders effort .
Reason #1: The trader's strategy must be fully described
The first step in developing a mechanical trading system is to
describe its behavior. The trader is forced to fully articulate
the strategy of their trading system. This includes both the
trade entry and exit.
The trade entry must be described in detail, including concrete
definitions of:the proper market conditions for entry, the trade
setup or confirmation, the final confirmation or trigger.
The trade exit must be fully defined as well. The stop loss and
limit as well as the conditions for exiting must be fully
described.
For many traders, articulating their trading strategy proves to
be both challenging and enlightening. The personal growth a
trader experiences through this
exercise alone justifies
developing a mechanical trading system.
Reason #2: Mandatory backtesting
No trader in her right mind would unleash a mechanical trading
system without first thoroughly backtesting the system. Paper
trading or backtesting by hand is no doubt a tedious and error
prone process. Fortunately, most brokers offering free trading
system platforms also offer the ability to back test - along
with sufficient historical data to perform the testing.
Since the trader has already fully described and translated
their trading system into a working program, backtesting is as
simple as pushing a button. Of course, a great deal of testing
may be required, and the results may defy understanding! But the
fact remains, executing the back test is a relatively easy task.
Reason #3: Increased discipline
An outstanding byproduct of backtesting is that it readies the
trader for the actual performance of the system. That is,
backtesting calibrates the traders expectations of their trading
system.
The main benefit of possessing an accurate expectation of one's
system is an increased level of discipline. When a trader
conducts numerous back tests, they begin to understand the
randomness of any one particular trade. This understanding
prevents a trader from assuming too much risk on any particular
trade - regardless of the quality of the trade setup. While
testing, the trader has seen too many "perfect trade setups"
that resulted in losing trades. Again, this benefit alone
justifies developing and running at least one mechanical trading
system.
Reason #4: Consistent execution
Consistently executing a trading strategy is the single most
difficult task a trader faces. The ability to accurately
interpret market behavior through a smoke-screen of emotions -
fear, greed, anger, elation - is a talent very few traders
actually possess. An often cited benefit of the mechanical
trading system is its ability to execute trades according to its
rules, with no variation.
The actions required to develop, test and execute a mechanical
trading system are consistent with the behavior shared by most
successful traders. If done correctly, the results of these
actions reward the trader for the effort; this positive
experience reinforces the "good" behavior and gradually builds
and strengthens the framework successful traders rely on to
remain successful.
Visit us at
www.iExpertAdvisor.com
About the author:
Co-founder of iExpertAdvisor, LLC, Author of "Automatic Alpha:
How to Build a Winning FOREX Trading System", Author of "The
iExpertAdvisor iBulletin"
|
|
|
|
|
| Currency Trading, Forex Trading, Forex, Online Currency Trading |
| Offers 24 hour online currency trading for institutions and professional traders. |
| www.fxcm.com |
|
| OANDA FXGame - Currency Trading Demo Platform |
| You can start playing the currency trading market with real market conditions ... The platform was created with the goal of making currency trading ... |
| fxgame.oanda.com |
|
| Forex | Forex Trading | Forex Minis | Online Currency Trading |
| FOREX.com - THE site for forex trading. 24hr commission-free currency trading w/ real time execution and guaranteed fills. Forex mini accounts from $250, ... |
| www.forex.com |
|
| Currency Trading News, Forex Trading News, FX News, Forex News |
| Currency Trading News, Forex Trading News, FX News, Forex News - Daily FX. |
| www.dailyfx.com |
|
| Currencies - Currency Converter & Latest Rates at CNNMoney.com |
| Dec 6 1:18pm ET †, US $, UK £, Japan ¥, Euro €. US $, 0.5079, 115.05, 0.7517. UK £, 1.969, 226.50, 1.4798. Japan ¥, 0.008692, 0.004415, 0.006533 ... |
| money.cnn.com |
|
| FOREX Advisory |
| The CFTC urges you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with ... |
| www.cftc.gov |
|
| Forex Trading: Online Currency Trading from Global Forex Trading |
| Global Forex Trading is the premier online foreign currency trading firm and a primary market maker. To learn more about forex trading, visit GFTForex.com. |
| www.gftforex.com |
|
| Amazon.com: Foreign Currency Trading: From the Fundamentals to the ... |
| Amazon.com: Foreign Currency Trading: From the Fundamentals to the Fine Points: Books: Russell Wasendorf by Russell Wasendorf. |
| www.amazon.com |
|
| Forex, Online Currency Trading, FX, Foreign Exchange | ACM Forex |
| Forex Trading with The Forex Broker. ACM offers online currency trading, commission-free, tax-free, lowest forex spreads on the market, guaranteed fills, ... |
| www.ac-markets.com |
|
| OANDA FXTrade - Currency Trading, Forex Trading, Online Currency ... |
| Currency Trading with FXTrade, leader in online currency trading, provides real-time execution, free forex charts and quotes, and 24 hour forex trading. |
| https: |
|
| Forex-Day-Trading.com - Currency Trading with FREE Training |
| Learn how to day trade currencies with our free training. Try a free forex trading demo for 30 days. |
| www.forex-day-trading.com |
|
| Forex Online Currency Trading: Welcome to Global Forex |
| Global Forex offers online currency forex trading at inter-bank FOREX rates. Try our FREE online forex demo trading system. |
| www.globalforex.com |
|
| Forex trading - Realtime Forex online currency trading |
| Realtime Forex offers commission-free online currency trading on live foreign exchange prices. Realtime Forex’s currency trading service also includes free ... |
| www.realtimeforex.com |
|
| Forex Blog |
| Forex news blog with daily commentary. Has a good beginner's article. |
| www.forexblog.org |
|
| Common Questions About Currency Trading |
| Whether you're puzzled by pips or curious about carry trades, your queries are answered here. |
| www.investopedia.com |
|
| OANDA FXTrade - Currency Trading Basics |
| Currency Trading Basics. Exchange Rates and Spreads: ... In currency trading, these codes are often used to express which specific currencies make up a ... |
| fxtrade.oanda.com |
|
| Currency trading, free forex charts, news and analysis |
| Online currency trading with technical analysis, charts and forex news. |
| www.gfforex.com |
|
| Finance - Currency-Trading Ezine Articles |
| EzineArticles.com allows ezine or email list publishers to upload or download free expert content that can be used within email newsletters or websites. |
| ezinearticles.com |
|
| MGFOREX |
| MG Financial Group - Forex, FX, Online Forex Trading. |
| www.mgforex.com |
|
| DirectoryM - Debt Settlement Solutions |
| Simply provide your contact details and describe your needs to receive a free consultation from business or personal debt service providers. |
| www.directorym.com |
|
|