Posted on October 27th, 2008 by admin, under online forex trading.

Forex trading strategies example (part 2)

Let’s continue our discussion of Forex trading strategies that can be used as an independent system. Today we will discuss two more Forex trading strategies.

Trading strategy using Stochastic

Though there is an opinion that it is bad to determine the turning points, stochastic index at large intervals does it quite fairly. I do not recommend to use it for 5-60 minutes, or it is necessary to increase the number of periods (Stoch (35), Stoch (55), etc.) I tried stohastik with the period 14 (by default). According to this system entrance is made after a level crossing signal in the direction of the crossing. The levels are determined by trader since a week-long trend is descending, the lower lath is taken (8) and the upper (75) (by the way it can be slightly higher, input will be even sooner, but not more than 78-80!) Stop must be set rather flat, on percent from the deposit (such as 1.5 from 100K i.e. by 150 pips). Profit can be taken off either at target a*stop where a is coefficientfrom 1 up to 4 (your choice) or on by any other signals (parabola) or the target levels, or sliding stop. On adjustment you can play with signal levels, stochastic period, and also include a short while crossing moving (it is usually always built together) behind the signal level.

Trading strategy of game using Fibo-levels

This is one of the most wide-spreaded systems based on the fact that the price, being corrected, will be a distance equal to the movement multiplied by the coefficient 0.236 0.382 0.5 and 0.618. I Can add that 0.5 and 0.618 meet more often than the rest ones… The signal “get ready” occurs when, after a lengthy movement the price was corrected not less than 0.2-0.3 part of this movement. Fibo-levels are drawn, and warrants on sale/purchase about them, with stop above a following fibo-level are established.

For example: After yen’s falling from 107.15 to 105.20 we draw fibo-levels. (Also we will draw level after falling from 106.70 to 105.20). After correction beginning we set a warrant for the sale of nearly 0,382 correction from a large falling (of almost exactly the same as the 50% correction smaller falling). So Sell USDJPY 105.95, Stop is above 0.5 from a large falling, by 106.30 …

The level has appeared punched and following order is selling about 0.5 from a large drop (note that the level is almost coincided again with a fall of 0.618 less) So, Sell is USDJPY 106.15, S/L 106.50 At this time, level of 50% correction sustained (in this case match of 2 levels in one place has given strong support to bears.)

That is what we have in the future:

The first red arrow indicates the point of entry. Almost 2-day consolidation has followed then. After that, accordingtoo all laws of a genre, falling has continued. The second arrow is indicates re-entry into the market after the correction, which ended precisely about the previous low.

Good luck to you!

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Forex trading strategies example (part 1)

Posted on October 22nd, 2008 by admin, under online forex trading.

Forex trading strategies example (part 1)

We want to present you Forex trading strategies that can be used as an independent system, and in combination with other trade policies, or as the basis for a strategy. In any case all represented is a purely subjective opinion and cannot be treated as the “philosophers’ stone” for Forex.

Forex trading strategy using Bollinger Bands (35,2)

The idea is that once the prices will cross one of BB lines, tracking begins, and as soon as next candlestick being closed, will not punch the BB line, entrance in the direction opposite to breakdown.

Depending on desire, may vary period BB (in our case it was equal to 35), time scale (in our case - 4h) as well as confirmation from other indicators. For example RSI.

Forex trading strategy using game on levels

Here the idea is that the price having once reflecting from some point, will reflect from it again, and if it will pass it, the acceleration will be enough to play in the direction of the breakdown. The figure shows the level of yen, arrows show the direction of the game, the lines around them — a lath stop loss, at whose breakdown position automatically deploys.

As acknowledgement of breakdown or rebound from levels it is possible to use: rebound — if the price was a long way to the top without a correction, on the other movements. Breakdown — the price often “poke” in the level, gradually approaching low rebound (see figure).

Forex trading strategy using Moving Average

Even at the simplest indicators it is possible to build a profitable system. This example has 2 movings with periods of 21 and 70. After the breakdown one of movings by the price standby begins. If prices turned, without having reach the 2nd (older) moving, the entrance is carried out at crossing (or a little earlier), MA (21). Stop-loss is places below a recent bottom (peak). The system has drawbacks - one of them is the false signal at the trend end. However, incomparable advantage is that it always follows trend, contrary to the wishes of inexperienced players to play against him.

Forex trading strategy using MACD

One of the easiest ways to play with a trend. On the graph MACD 12/26 with a signal line 7 is used. The entrance is carried out: For Sale — at movement MACD from a maximum downwards, at care of MACD below a signal line.

Pose closing occurs at MACD the crossing signal line upwards. At achievement of low bottom by MACD, with the closure of the next “Short” a long (turn) opens and now pose will close at crossing MACD signal from the top to down, and will open at crossing from below upwards. And again, until formation of top by MACD… Stop is at a price slightly above recent high (low). The system works well in bright trend on 4-hour or daily, but majority advises to abandon MACD on Flat. Nevertheless, it is possible to play for MACD in range also. To do this you need a 15-30 min interval, and slightly other parameters of signal linesand MACD. I suggest you to play with coefficients and see what will be after. This tool has several hidden features starting from the divergence method finishing to usage of ostsilators over the MACD itself. Everything depends on the willingness of the trader to find his own weapon…

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Introducing mechanical trading strategies

Posted on October 20th, 2008 by admin, under online forex trading.

Most peoples after working on Forex market discover that it is difficult to make money with Forex. They could not make a full-time income with Forex using old methods and concepts. They dream of perfected Forex trading system. This is simple and easy system that will tell you exactly when to enter and exit the market - removing the decision making process for you. Decision already exists in form of mechanical trading systems. These are “set and forget” systems that can generate an easy and consistent income for the ones who couldn’t make “the old methods” like indicators and others work.

They require just few minutes per week of your time and are easy to work with. You don’t must to teach and understan complicated financial laws, difficult mathematical formulas, useless terminology and charts to use such systems. Systems that are is 100% mechanical doesn’t make you to think about what to do next and does it for you. They spit out the numbers for you to enter into your trading platform and that’s it.

You don’t have to nervous and feel sick, you don’t must to waste precious time watching market dynamics and lose your money because of inadequate decisions made because of heartache or hurrying. This revolutionary new way is perfect for those entering the forex market for the first time and for those who have wasted their time with other forex day trading systems.
SLP Trading Group
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Online Forex trading

Posted on October 15th, 2008 by admin, under online forex trading.

The Forex market trading is made by market-makers. Market-makers are large banks whose branches located throughout the world. The amount of transactions on Forex market among the market makers typically exceeds the amount of 5 million dollars , U.S., the amount of ad hoc deals of market makers with its customers also quite high. Typically, these amounts are available only to large companies.

In the 80’s medium-sized and small investors began to receive access to the market through so-called margin trading conditions, and more recently in connection with the massive development of Internet technology it has become affordable for everyone. Dealing companies provided them access to it. Dealing companies give customers a credit lever (also referred to as the “shoulder” (leverage), or lending arm). The essence of leverage is that dealing company provides customer trust credit for trade in the Forex market, and a customer makes a deposit under the loan, which is called margin. Often in the market Forex, where the volume of currency fluctuations on the day of up to 2% of the loan is given in the amount of leverage “up to 200″.This means that the client can operate in the market amount to no more than 200 times greater than its own funds. Margin itself (the amount made by the client) becomes a kind of deposit insurance broker for the company in the event that the customer will suffer losses in the market. Such a scheme of work is called margin trading.
SLP Trading Group
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Automated Forex trading system

Posted on October 10th, 2008 by admin, under online forex trading.

Only effective Forex trading system with successful money management strategy can help to make stable revenues on Forex market. This is because only good Forex trading system explains what and when should be done on the market in any trading situation.

When traders use Forex trading system and have to take a decision: they save time and efforts only when they know what actions will prevent them from risking the traded capital and what actions must be done for maximizing trading income. This is what a good Forex trading system gives - set of effective rules to make more money on Forex market.

Such comprehensive set of rules making complex algorithms can be used in autotrading system i.e. system that allows you to trade on your account automatically by means of computer software. Automated Forex trading systems are pre-programmed strategies that automatically execute trades on your account based on the rules of one of the Forex trading strategies. Automated trading systems can run on your home computer, on hosted servers, through autotrading platforms or as managed accounts.

SLP Trading Group

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Forex as a kind of business

Posted on October 6th, 2008 by admin, under online forex trading.

Forex, or international market of currencies, endures popularity peak today. It is an important and legitimate foreign currency business. This business of trading in cash currency around the world is necessary and has been a viable way for major banks and businesses to protect themselves from exchange rate risk for probably hundreds of years.

Forex trading strategies are used by millions of people around the world, successfully increasing their capital. Everyone who has access to the Internet, small financial savings and an analytical mind can take part in the Forex system. Online Forex trading allows you to effectively manage your money, earning only on the difference in exchange rates.

Forex Market is as a matter of fact a subset of the financial world market whose daily cash flow is more than 3 trillion dollars. Thanks to the rich opportunities and the minimal requirements to participants, working with Forex became a special form of business. World central banks, companies putting the investments into Forex, importers and exporters, brokers and Forex traders interacts in it. All of them, participating in the bidding, make monetary operations and aspire to get profit.

Anyone who want to earn on Forex must have relevant information about the financial market – indicators and quotations, forecasts and other news.

SLP Trading Group

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Trading system

Posted on October 1st, 2008 by admin, under online forex trading.

Trading system is a set of different rules that allows to decide when to buy or to sell it and what exactly to buy or to sell. Anotherwords it is the algorithm of trading. You can operate yourself be means of different indicators or entrust computer with this task. In such case trading system will be a kind of a “black box” for you making decisions by itself using complicated algorithms. Trading systems are typically generated by complex computer software (but not always). Each is organized around a general set of principles: “buy undervalued stocks,” “sell futures when price movements accelerate,” “buy Yen when Euros are overvalued,” etc.

Good trading system allows you to trade with profit and gives you a chance to earn money on Forex market. Mechanical trading system does not require any human intervention. Expert advisor can make a market analysis, select a profitable strategy and apply it delivering to its owner a pure profit and no losses.

But to become a professional we recommend you to create your own trading system. You must choose those indicators that you better understand. Also choose the signals that you are most evident for you. You may need to experiment with time intervals: someone wants to trade for five minutes ticks, someone will use daily. There are thousands of options, but to succeed you must find your own Forex trading strategy. Before using the method of any trader, pass it through the prism of your consciousness, ask yourself questions and try to answer them. You shouldn’t to use the system if you do not have been able to fully understand it.

SLP Trading Group

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