It ‘s essential that a trader has confidence in his trading system. Why? If confidence were to be lost, traders could no longer follow its trading system, strategy, blasting everything that worked. The process of back testing, in this sense, is designed to give greater confidence to the trader, in addition to helping the traders to familiarize themselves with the inevitable fluctuations of capital that you encounter when you open a position.
How does the back-testing of a strategy forex ?Starting from a back-test is able to offer a large amount of feedback and statistics relating to a trading foreign currencies, it can be run on a mechanical or discretionary. There is a greater absolute validity of one of two approaches, because the choice depends on the system that you intend to try. One advantage of the discretionary approach is that you will be familiar with the approach of using the trading strategy.
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We know that when you trade one of the ways in which you can work is to scalping. Basically it is a very fast way of trading, allowing investors to open and close a position in no time, even within a few seconds, realizing gains that usually does not exceed 10 pips. Scalping the trends provides a simple, yet effective, in order to operate in the currency market with the 1 minute charts. The strategy that we look at using the stochastic oscillator and trend lines.
And ‘possible to trade using this strategy for the major currency pairs during the session trading with European and American, since the market is more volatile and moves more quickly, with a 1 minute chart. Let’s see how to open a location: Continue reading Scalping Forex Strategy
Not surprisingly, the Eurodollar fell that night without an agreement between the creditors and the Greek government. Negotiations continue and Greeks are trying to get the maximum, making it difficult to reach an agreement. Our advice on the morning of Monday morning often means consolidation or range and that’s what should happen in the expectation of a financial agreement with Grèce.Le macd 30 mins and 4 hours are bearish, for now signs that the increase is put in brackets. The area of 2880/70 could be a good support before returning to 2920/2950. Nevertheless, and as long as you have not heard, the situation will remain so, or even slightly bearish.
Continue reading Evolution strategy forex and technical analysis of the EUR / USD
A t last December, we wrote “when a vendor at the landfill, it is true that the Swiss National Bank to ensure that parity does not pass under 1.20. Because of this and as long as we stay in- above 1.20 with stoploss around 1945, should continue to play the top of the range to 2450. However, one day it will crack in one direction or another and you must also prepare, hence the stoploss. “Finally, parity remained wisely between 1.20 and 2450 continuing its range since September 2011.
Adviser at the beginning of the year?
Can be simply to continue to play the given points, until it cracks.
Continue reading Technical Analysis EUR- CHF 2012
Technical analysis is concerned mainly with recent movements in the foreign exchange market. So the past is illuminated very strong to draw conclusions about future events could then. Within the technical analysis, the analyst deals with all past volume and price movements and their effects. Coming together is enough information, the analyst is able to create a chart on which he represents all movements clear. The technical analyst pursued as opposed to fundamental analysts, not the goal, a general overview of trends and opportunities to create, but limited .
Continue reading The technical analysis as a forex strategy
A fundamental analyst is not limited to those movements that relate to a particular investment from him, but would so a general overview to say about the events, past, present, and future, get to make the area the most profitable investment opportunity identified to. Within the fundamental analysis, the analyst employs so with all the information available to him, but focuses within this wealth of information on key factors, which may attract a development within the financial movements after themselves.
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Scalping is a trading technique that involves the opening of a position and its closure within a short period of time, with the intention to speculate that the price will move slightly in favor of your position, in order to have a small profit.
Typically, the scalper is able to open a large number of positions and it is not uncommon even come to take over 100 transactions a week.
Most traders who try to make scalping the forex market, however, can not succeed. This happens because to do when you are not scalping the currency market experts, leads to losing money. Assume that one wants to earn 10 pips scalpers speculating on the movement of the exchange rate GBP / USD. Usually, with most of the brokers, the spread of this currency pair is 3 or 4 pips. Also, set a stop loss at 10 pips, as is the take profit at 10 pips.
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European history. Italy and Spain (step and 500 points) make records with their risk premium and their respective government bond markets soar in creating more uncertainty. And is that the problems in the Eurozone will have no where to finish in the short term, and from this platform my advice is to hit (sell) with intelligence and in a timely manner. The forex has the great advantage that should not be missed. Study.
On the other hand, pairs like the Australian dollar and the pound continued to give good trading opportunities in the short term and purely technical contexts (eye here have nothing to do with the fundamental ). We discussed in several of the Webinars that we developed in vivo, a possibility to implement the strategy of the soldiers in the 1.5670 area where you can observe there is a good area of congestion in yellow. Not only that, on October 12 there is a large white candle (a great soldier system) that would not leave the region yellow drill so easy and so carefully was that we were expecting the arrival of the price to that context.
Continue reading We escaped the GBP / USD New
Any sane trader would say that the need for trade: the algorithm, the rules system, call it what you will, and argue with him would be, frankly, just silly. Trading should be reduced to simplicity, at the same time be as formalized. And that means a formalized? Maybe, if everything is so exactly prescribed, should entrust trading robot, a computer program? However, not all that easy for a robot. It’s hard to explain, but the car is significantly different from the person, it just performs pre-specified man of action.
People, in turn, processes the information is not as precise and algorithmic that gives him the advantage over trading robot. Why teach a person to talk to a lot easier? Child after a year or less after birth, says the first words, and soon the entire proposal. The computer has been around for a long time, but on artificial intelligence are still working, and now the iron is still very far from the person in terms of what we call intelligence. The fact that a trader can simply learn to present the robot programming language is very difficult, but man, these rules will be an algorithm.
Continue reading Intuition in Trading
D-day for Europe and its currency with the end of the summit of European heads of state tonight. Many people expect much but it is also likely that in the end it is not much and that eventually the markets will be disappointed. Ausi, the challenge will be to translate this into our strategy. Moreover, the bailout of the Euro zone will be revealed this evening. Our board of the morning, faute de mieux, it will last points upward and downward. Namely, the area of 3940/50 is for sale with stoploss of 3955/60. In above 3960, the price should move quickly to see 3980 4020.
Continue reading Technical analysis of forex market Oct 26,2011