Manual or automated trading on Forex. Find out which one prevails.

Forex bots have always had their positives and negatives. The main argument of those who prefer automated trading is that a person can rely on his sole trading experience and can make the right decision at the right time, while at the same time those who advocate manual trading claim that it is imperative to have an accurate trading plan and strategy of entering the market, setting a stop loss and take profit order, along with exiting the market.

I think that these statements contradict each other. If a forex trader is required to rely on his emotions and intuition, he doesn’t need to abide by rules. However, if the trader follows a precise set of rules, being able to validate his strategy, in my opinion it would be wiser to automate the system. I know a lot of those who side with the manual trading, the ones who use scripts and advisors which as a whole simplify the work since that is half way through to going fully automated – forex bot.

Which strategy to choose? Pros and cons of scalping strategy.

In this debate views of traders are radically opposite. I would say that both the opponents and the supporters are right. I think that the most precise market forecast is a long term forecast based on a set of economic factors, however, only large banks and investors can afford to trade using long term forecast. Technical analysis works better within short term forecast. We should also note that majority of the brokers “play” against the trader, and in that case the broker holds supremacy over time and money since the short term strategy has far more chances of success. Scalping strategy also has a big advantage in the fact that you can start trading with a small sum of money and still make a reasonable profit.

On the other hand, it is easier for a broker to terminate a scalping strategy by prolonging the time of execution and pushing the spreads apart in the part of stop loss.

Forex robot TFOT – the best bot of 2010-2013

How to choose a strategy that perfectly suits you.

If you are a trader with a capital of a $100 to $100 000 dollars, this article is must read.

Our choice of strategy will be based on the fact the broker does not play against you using tough trading practices such as throwing in non-market quotas, etc., but at the same time is dealing. Our company BJF Trading Group inc., Canada  Group inc., had designed more than 3000 forex bots based on our clients’ and our own ideas, and is a leader amongst programming for an MT4 platform. Our products are effectively being used by the forex traders and brokers throughout the whole world. Based on the knowledge and experience accumulated over the years, we’ve developed a fully automated trading forex robot TFOT. We spent around a year developing this robot, and for the past 3 years we’ve worked hard to constantly improve it. The key factor that the robot abides by is by using 2 strategies: 

Strategy close to that of Scalping. When I say close to scalping, by that I mean a strategy with goals of 5-15 pips and a position time of more than 1 minute.  Use of higher level strategies is possible only if you are working with a real stp broker.

Medium term strategy.

For over 3 years we are constantly testing the bot using a real account with a capital of 10 000 from an alpari broker. We trade using low risk and are not using the function to increase the lot. Currently there are 50 000 on our account. The bot does not require a constant re-optimization, is reliable and stable to the broker.

Our customers are successfully using the robot at different brokers with different start up capitals. Our current version 7 contains a multilayer neronet that helps minimize the risk and maximize the profitability of the robot. The robot also contains the news filter which disallows the use of scalping strategy during the economic news.

Forex robot TFOT – the best bot of 2010-2013

What new?

We analyzed the results of trade on real account and found important pattern. Some losing trades are the result of random movement of prices during the news. To prevent this, we have developed a news filter. Our news filter based on our free FF news indicator (forex factory news indicator)

Pic. 1 – Forex Factory news Indicator

Indicator shows 5 columns (from left to right):  news impact, news time, news data, currency, news. Using news filter you can prohibit trades during news period for usd and eur currencies.

We have added extern variables to Forex Robot TFOT:

sUrl = "http://www.forexfactory.com/ff_calendar_thisweek.xml";  The news provided by forexfactory site only for last week.

NewsReload.mi = 60; Reload news every, min

SymbolsFilter.On = true; Filter by simbol

SymbolsFilter = "EUR,USD"; Symbols

ShowOnlyCurrDay = false; Show calendar only for current day

IncludeHigh = true;  show high impact news

IncludeMedium = true; show medium impact news

IncludeLow = false; show low impact news

IgnoreFilter.On = true; Ignore: holiday, speaks, tentative news

IgnoreFilter = "holiday,speaks,tentative";

GMT time calculated and passed from EA to the indicator (Broker.GMT.Offset option).

EA cannot caclulate GMT time in StrategyTester mode so Tester.Broker_TZ option is provided

for strategy tester. You have to set it manual.

NewsSite.GMT.Offset = 0; GMT offset for news site

Broker.GMT.Offset = 0; GMT offset for brokerage  company

extern bool StopNewTradesOnNews = true;

 true: Prohibites the open of new trades News.HighLightPrior.mi minutes prior and News.HighLightAfter.mi minutes after news releases.

By default News.HighLightPrior.mi = 10, News.HighLightAfter.mi = 45.

LoadNews option must be set to true.

 

extern bool CloseOpenedTradesOnNews = true;

 true: Closes opened trades and prohibites the open of new trades News.HighLightPrior.mi minutes prior and News.HighLightAfter.mi

minutes after news releases.

LoadNews option must be set to true.

 

News.HighLightPrior.mi = 10; Stop trading before news realize

News.HighLightAfter.mi = 45; Start trading after news realize

Learn more about Forex Robot TFOT

Our company also can add same news filter for your expert advisor for $190

Feel free to contact us: coding@iticsoftware.com

 

I would like to introduce several extra features which can improve your forex robot (expert advisor) performance.

Filters

News Filter

This filter will help you to prevent trading during news period, when price movement is chaotic unpredictable.  Forex robot will load news from forex factory website in fully automated mode and stop trading in the time period specified by you. Filter can also close all open trades in specified period. 

Filter has external parameters:

•        LoadNews = true; 

•        StopNewTradesOnNews = true; Stop trading during news period

•        CloseOpenedTradesOnNews = true; Close all open trades during news period

•        SymbolsFilter.On = true; Filter forex news by currency

•        SymbolsFilter = "EUR,USD"; 

•        IncludeHigh = true; show news with high impact

•        IncludeMedium = true; show news with medium impact

•        IncludeLow = false; show news with low impact

•        IgnoreFilter.On = true; Ignore some type of news

•        IgnoreFilter = "holiday,speaks,tentative";

•        News.HighLightPrior.mi = 10; period before news realize

•        News.HighLightAfter.mi = 45; period after news realize

Neural Net Filter

This filter based on our neural net library – multi layer back backpropagation neural network.

You can read more about backpropagation neural network here: http://en.wikipedia.org/wiki/Backpropagation

This filter analyzes all profitable and losing orders (bars before order) on historical data, identifies implicit connections, and creates rules. Then filter will prevent to open orders, when a combination of a bar before the order does not satisfy the winning rules. This is a simple explanation of the neural net filter. In reality the algorithm of the filter is very complex and its understanding requires special knowledge.

Warning:  you will be able to use this filter only on two computers, because we have protected neural net dll.

 

Trading days filter

This filter allows you to restrict or allow trading for each day of the week. This filter can improve scalping and intraday strategies. For example scalping strategies work not so good on Monday and Friday, because a lot of traders open the  positions on Monday and close on Friday.

Possibility to define work days of the week example:

extern bool MondayOn = true;
extern bool TuesdayOn = true;
extern bool WednesdayOn = true;
extern bool ThursdayOn = true;
extern bool FridayOn = false;
extern bool SaturdayOn = false;
extern bool SundayOn = false;

Trading time filter

This filter allows you to allow trades only during selected time period.  This filter very useful for scalping strategies.

Trade time to open order from hh:mm to hh:mm
example: from 6:30 to 22:45 by ServerTime

Money Management options

Money management is the most important part of any trading system, and surprisingly, few traders understand how valuable a tool it truly is. Put simply, money management is the money you are going to put on a single trade and, conversely, the amount of risk you are willing to take for this trade. There are lots and lots of money management strategies (likely, as many as there are financial strategists) but they all have one central theme: preventing high risk exposure.

Dynamic lot calculation

a) as percent of Account Balance

b) as percent of Accout Equity

c) as percent of Account FreeMargin

So on increase of Account Balance/Equity/FreeMargin the lot size will growth too 

Dynamic lot calculation with RiskPcnt option

You will enter an initial risk % of equity you can loose if StopLoss is triggered.

So if StopLoss = 50 pips, AccoutnEquity = 5000 and RiskPcnt = 10.0

then you will pay only 500$ on StopLoss. 

Dynamic lot calculation by Martingale theory.

New lot will be multiplied by 2.0 (LotFactor = 2.0 is external parameter)

if previous lot was closed in loss.

MaxLot of series will be second external parameter.

Trailing Stop Loss and Breakeven function

We offer different kind of trailing stops. It is very difficult to determine which one will be better for your strategy.  Major strategies can be improved with ATR Trailing stop

•        Standard Trailing: simple trailing, stoploss follows by the market

•      High/Low Trailing: trailing by bars High/Low

•      ATR Trailing: trailing by ATR indicator

•      Fractals Trailing: trailing by Fractals

•      PSAR Trailing: trailing by Parabolic Stop And Reverse indicator

•      ProfitPcnt Trailing: trailing with lock of some pcnt of max. profit reached

•         TLine Trailing: trailing by some TrendLine added manual on the chart

•         MA Trailing: trailing by MovingAverage indicator 

•         Breakeven function
Moves StopLoss to breakeven level when trade is in profit by X pips

 

Other Features

Support of Market Execution (required for ECN brokers)

Open operation will be splitted into 2 parts:

a) Open new order with 0 (zero) stoploss and 0 (zero) takeprofit

b) Modify sl and tp of new order to actual values

Make StopLoss, TakeProfit, TrailingStop hidden to brokers

In this case EA will manage Hidden (or invisible) stops

Standard (or visible) stops will be available too

Read more about MQL4, MQL5, Jforex programming

If you would like to add one or several extra features to your expert advisor, please send your expert advisor (mq4 file) via email: coding@iticsoftware.com

If you would like to programming expert advisor or indicator on MQ4, or MQ5, or JForex (DukasCopy), please send your detailed description via email: coding@iticsoftware.com

I would like to talk about the service of Expert Advisors and Indicator's programming, which our company offers. We can write code in MQL4, MQL5, JForex and other programming languages on demand.

Why our service is one of the best coding services?

For one thing, we are doing this for many years and during our work, we have already written about 3000 advisors and indicators (MQL4, MQL5, JForex). Secondly, our company hires only professional programmers. Our codes are divided into blocks, functionally optimized, i.e. your advisor won’t hang, when you restart your Terminal and will turn on again. There will be no errors, Advisor will work by the algorithm you have setted.

We are often asked to recode expert advisers written by others, and I must say beforehand, that it’s a very difficult task, because it is easier to
write your own correct code from the beginning, then to analyses someone else's erroneous code. For this reason, the best advice for those who want to code their own system will be to work with professionals.

We can examine your strategy and offer you to make some changes, if you have any errors. We can analyse your descriptions and offer additional improving functions. If you encode Indicator, or Expert Advisor based on any Indicator, it is likely that we will notice if your indicator is redrawing and inform you of that. Because coding a strategy based on redrawn indicator may lead to losses.

Since you are going to entrust your money to Expert Advisor, it's better to make sure that specialist are working on it, so you won't risk your account.
Learn more about our expert advisors and indicators programming service

Among the fantastic benefits of trading currencies is that the forex market levels 24 hours a day (from 5pm EST on Sunday till 4pm EST Friday). Economic News oftens be among the most vital drivers for short-term motions in any market, however this is especially real in the currency market, which reacts not just to UNITED STATE financial News, however likewise to News from worldwide. With a minimum of eight significant currencies readily available for trading at a lot of currency brokers and even more than 17 derivatives of them, there is constantly some piece of financial News slated for launch that traders could make use of to notify the positions they take. Usually, no less than seven pieces of News are launched daily from the eight significant currencies or nations that are most closely followed. So for those who opt to trade News, there are lots of possibilities. Right here we consider which financial News launches are launched when, which are most appropriate to forex (FX) traders, and exactly how traders could act upon this market-moving News.

Which Currencies Should Be Your Focus?

The following are the eight significant currencies:.

1. US dollar (USD);
2. Euro (EUR);
3. British pound (GBP);
4. Japanese yen (JPY);
5. Swiss franc (CHF);
6. Canadian dollar (CAD);
7. Australian dollar (AUD);
8. New Zealand dollar (NZD).

This is simply a sample of a few of the more liquid derivatives based upon the currencies above:.

1. EUR/USD;
2. USD/JPY;
3. AUD/USD;
4. GBP/JPY;
5. EUR/CHF;
6. CHF/JPY.

As you could see from these lists, the currencies that we could quickly trade cover the whole world. This indicates that you could handpick the currencies and financial launches to which you pay specific attention. However, as a general guideline, because the US dollar is on the "opposite" of 90 % of all currency trades, US financial launches often have the most pronounced effect on the marketplace.

Trading News is more challenging than it could appear. Not just is the stated agreement figure essential, however so are the whisper number and the modifications. Additionally, some launches are more crucial than others; this could be determined in regards to both the significance of the nation introducing the News and the relevance of the launch in relation to the various other pieces of News being launched at the exact same time.

When Are News Releases Issued?

Figure 1 details the approximate times (EST) at which the most crucial financial launches for each of the following nations are released. If you prepare on trading News launches, these are additionally the times at which you need to be paying additional attention to the markets.

UNITED STATE -USD: 8:30 - 10:00.
Japan. JPY: 18:50 - 23:30.
Canada CAD: 7:00 - 8:30.
U.K.GBP: 2:00 - 4:30.
Italy.EUR. 3:45 - 5:00.
Germany. EUR. 2:00 - 6:00.
France. EUR. 2:45 - 4:00.
Switzerland. CHF. 1:45 - 5:30.
New Zealand. NZD. 16:45 - 21:00.
Australia. AUD. 17:30 - 19:30.

Exactly what Are the Secret Releases?

When trading News, you initially need to understand which launches are really anticipated that week. Second, it is essential for you to understand which News is necessary. Usually speaking, these are the most vital financial launches for any nation:.

1. Interest rate decision
2. Retail sales
3. Inflation
4. Unemployment
5. Industrial production
6. Business sentiment surveys
7. Consumer confidence surveys
8. Trade balance
9. Manufacturing sector surveys
Relying on the existing state of the economic climate, the relative relevance of these launches could alter. For instance, joblessness might be more crucial this month than trade or rate of interest choices. For that reason, it is essential to continue top of exactly what the marketplace is concentrating on at the minute.

Exactly how Long Does the Result Last?

According to a research by Martin D. D. Evans and Richard K. Lyons released in the Diary of International Cash and Finance (2004), the marketplace could possibly still be responding or soaking up to News launches hours, if not days, after they are launched. The research discovered that the result on returns usually happens in the 2nd or first day, however the effect does appear to stick around till the 4th day. The effect on order flow, on the various other hand, is still really pronounced on the 3rd day and is still visible on the 4th day.

Exactly how Do I In fact Trade News?

The most typical method to trade News is to search for a duration of consolidation ahead of a huge number and to simply trade the escapement on the back of the number. This could be done on both a short-term intraday basis and an everyday basis. Let's consider the chart in Figure 2 as an instance. After a weak number in September, the marketplace was holding its breath ahead of the October number, which was to be introduced to the general public in November. In the 17 hours prior to the launch, the EUR/USD was restricted within a tight 30-pip trading array. For News traders, this would have offered a fantastic possibility to apply an escapement trade, particularly because the possibility of a sharp step at this time was very high.

We pointed out previously that trading News is tougher than you may think. Why? The primary reason is volatility. You could be making the right step however wind up being quit out, or the marketplace might just not have the energy to sustain the step.

Can I Prevent Getting Struck by Volatility When Trading News?

The response to catching an escapement in volatility without needing to deal with the danger of a reversal is to trade FX AREA choices. A lot of various FX brokers provide a range of amazing choices. Amazing choices normally have obstacle levels and will be unprofitable or lucrative based upon whether the shield level is breached. The payout is predetermined and the premium or cost of the choice is based upon the payout. The following are the most prominent sorts of amazing choices to make use of to trade News launches:.

• Double one-touch choice.
• One-touch choice.
• Double no-touch choice.

A double one-touch choice has 2 obstacle levels. Either among the levels should be breached prior to termination in order for the choice to become lucrative and for the purchaser to get the payout. The choice ends useless if neither obstacle level is breached prior to termination. Since it is a pure non-directional escapement play, a double one-touch choice is the ideal choice to trade for News launches. As long as the obstacle level is breached - even if the rate reverses course later on - the payout is made.

A one-touch choice just has one shield level, which typically makes it a little more economical than a double one-touch choice. The exact same standard holds - the payout is just made if the shield is breached prior to termination. If you really have a view on whether the number will be more powerful or weaker than the market's agreement projection, this is an excellent choice to get.

A double no-touch choice is the specific reverse of a double one-touch choice. There are 2 obstacle levels, however in this case, neither obstacle level could be breached prior to termination - otherwise the choice payout is not made. This choice is wonderful for News traders who think that the financial launch will not trigger a pronounced escapement in the currency pair which it will remain to vary trade.

FX AREA choices are a practical option for those who do not care to get whipsawed in the markets by unnecessary volatility prior to they really see the area rate relocate their wanted instructions.

As we have actually seen, the currency market is specifically vulnerable to short-term motions caused by the launch of financial News from both the UNITED STATE and the rest of the globe. If you wish to trade News effectively in the FX market, essential factors to consider to remember are understanding which launches are anticipated when, whiches are crucial offered present financial conditions and, naturally, the best ways to trade based upon this market-moving News. A selection of amazing choices are readily available for traders who wish to catch an escapement in volatility without needing to deal with the danger of a reversal; do your research and remain on top of financial News and you can gain the benefits.

Recommended tools for News Trading:
FREE Forex news indicator
Expert Advisor for news trading

Understanding Pivot Details

A fast background on pivots points, they play a high part as support and resistance. Pivot points are absolutely nothing however support and resistance levels that are created from an average of the previous day's records. To put it in easy terms, use them as walls. They will quit the market and attempt as it approaches them. If the wall is actually high, it will make the marketplace reverse from it, if its moderate - the marketplace will float around it, if its weak, the marketplace will simply break with it. We're going to utilize this details to our advantage in this technique.

Understanding Divergence

I'm not getting into total specifics on divergence on this method page however I'll offer you a review so you understand whats going on. Divergence is a direct indicator that informs you the marketplace is going to reverse. It's a wonderful addition to any trend reversal method for an added verification. When your market is going one method and your indication is heading the contrary method, divergence is formed.

The best ways to utilize this approach

After establishing your signs and charts, the unbiased then is to await a divergence. As soon as the divergence takes place, you have to examine that the existing cost is on / around a pivot indicate permit a hassle-free reversal. At the opening of the next candle you could get in the trade if this is real. Ok so lets number this to actions.

• Try to find a Divergence
• See to it price is on or around a pivot point
• Get in at the opening of the next candle if action 1 and 2 is real
• Usage appropriate threat to reward finance

Professional divergence indicators

I would like to describe several features which can make scalping robot much more profitable.

Hidden Stop Loss and Take Profit (stealth mode)

For scalping robot stop loss optimization almost all developers use step  1 and if you change Stop Loss on 2-3 pips, your profit can be smaller on 20-30%.
A lot of brokerage companies has active dealing desk and dealer can increase spread when price will be close to your Stop Loss. (stop loss "hunting") or inject non market quotes. But in stealth mode robot will keep SL an TP orders in memory or as chart object, and will be send to broker when price will touch specified level. It will help you to avoid manual intervention from dealer.

Spread Control

This feature allows to open order only if spread smaller then defined level. If you test your robot and current spread equal 3 pips, you shoul trade with this spread, in another case your profit will be smaller.

Stop Loss based on Volatility

All scalping system very sensitive to market volatility, for this reaso if we will use non constant stop loss and take profit, and will use the sl and tp based on volatility indicator (for example on ATR indicator) it can help to make scalping system more profitable.

Neural net filter

Neural net (only professional realization) can make your system on 10-20% more profitable.

Feel free to contact us: coding@iticsoftware.com for any assistance.

Forex Divergence Constructor - Free tool

Several month ago we have developed free tool which helps to find best combinations of divergence indicators. Divergence constructor contains 35 divergence indicators. 19 - standard and 16 custom indicators. You can combine any of these indicators and receive super divergence indicators.

 

Super Divergence Indicators

Supper divergence indicator shows buy or sell signal only if all indicators in your combination determing divergence. This approach will  reduce number of false signals on condition if you choose good combination. We recommend to combine indicators from different groups. I mean indicators from different categories. You can combine volatility indicator with trend indicator and oscilator.  This tool allows you to find the best combination for required currency and timeframe. Usually selected combination will work with high accuracy with several time-frames and currencies. I noticed, selected combination for one of  majors will work good for other (or most of) majors. Combination selected for currency cross pair will be good for other crosses. It is not 100% rule, but this rule works in many cases. If you selected combination for H1 timeframe it will work for H4 and m30, etc.

I will provide you with some examples. We have found combination for eurusd: ForceIndex + OnBalanceVolume + ChaikinMoneyFlow Div and this super divergence indicator works with high accuracy on USDCAD, AUDUSD, GBPUSD



 

Super divergence indicator ADX + CCI shows good results on crosses eurjpy, gbpjpy, audcad, etc.

Information:

Divergence Constructor - download for free

Super Divergence Indicators 

There are two of the most common misconceptions and absolutely opposed to the forex arbitrage trading systems.

First one is “arbitrage systems is one hundred percent profitable systems without losses”.

For my opinion it is impossible to create 100% profitable arbitrage system with no losses. Loss can occur for several reasons: errors on broker’s side, slippage, requotes etc. For this reason automated arbitrage system should correctly handle all possible errors and arbitrage situations.

Second - "forex arbitrage trading  systems can be profitable only on demo accounts and unprofitable on real accounts."

If you would like to use arbitrage system, you should be ready to some difficulties.

• Choosing a broker. You should find fast broker. It is not big deal, because a lot off broker offer real ecn accounts with fast quotes and execution time. There is a bigger problem to find slow broker which will allow arbitrage, but it is possible. Try brokerage companies from Asia, small brokerage companies from Europe…
• Choosing symbol for the arbitrage. At this stage, many traders try to compare such pairs as eurusd, usdgbp, usdjpy… lose hope. I can recommend you to try different symbols: gold, silver, exotic symbols.
• Choosing forex arbitrage software.
  

Also for your attention:

Forex Arbitrage EA

Forex Arbitrage System

The world’s forex market is the largest financial market and sees an average $4 trillion in daily trades.
Forex is very popular and traders of all levels of ability are attracted to it from those that have never traded before to some with many years’ trading experience.
Due to the constant sessions, ability to leverage significantly and cheaply Forex is very easy to trade. Likewise, it is very easy to lose money. The purpose of this article is to delve into 10 ways that traders will be able to stop making losses in a market that is as competitive as the forex market.

1. You Should Know What You’re Getting Into – Homework Before Trading

Forex is easy but this shouldn’t be taken as a sign not to do any preparation.  To learn about forex is essential if a trader wants to be successful in the forex market.
The best learning will always come through actually trading forex and the experience this will give but that shouldn’t stop a potential trader from  learning as much as possible to do with the forex market. This includes all of the economic and political issues that will impact the currencies the trader deals in.
As events are constantly happening, keeping up with what’s going on becomes the trader’s homework, as they need to be flexible to react to how the market, regulations and the world will change.
One way to do this is to develop a trading plan.

2. Get A Well-Recognised Broker On Board

Due to the lack of oversight of the forex market, you can wind up with a poor broker dealing with your affairs. In order to keep these shady dealers at bay, make sure you place your account with a broker that is registered as a member of the National Futures Association (NFA) and registered with the U.S. Commodity Futures Trading Commission (CFTC) as a futures commission merchant.

Every country that is outside the United States will have their own regulatory body that the reputable forex brokers will be registered with.
Each trader should be clear on the accounts that brokers can offer and this should include factors such as the commissions charged, spreads offered, leverage amounts, initial deposits, policies on withdrawal and account funding.
All of the answers to these questions should be provided by a good customer service representative who will be able to guide you through their company’s policies and services.

3. Make Use Of A Practice Account

Just about every trading platform like metatrader will have a practice account, which are also known as demo or simulated accounts. Traders can trade hypothetically without using any of their own money. The advantage of this is it allows the trader to practice their technique for order entry.
One of the most destructive issues with a trading account is accidentally pressing an incorrect button when you are opening or closing a position.
A lot of new traders will put money into a losing position when they meant to close it. Numerous mistakes when entering orders can bring about significant and unprotected trades.
As well as being financially damaging, the stress is considerable. So it makes sense to practice when it comes to making orders before you start to do so with your own money. 

4. Charts Should Be Kept Clean

When forex traders open up their accounts, there might be a temptation to use a lot of the technical analysis tools that the trading platform will have to offer. A lot of these tools are very appropriate for trading on the forex markets but it is better to minimise the number of analysis techniques to maximise their effectiveness.
Should you use two of the same style of mt4 indicator, for example a couple of oscillators or volatility indicators, they can become ineffective and even provide conflicting signals. Best to steer clear of them.
If you find that there are some analysis techniques that aren’t getting used a lot to improve the performance of the trades then it is best to clear it from the chart.

Additionally, the general appearance of the workspace of the chart should be taken into account when adding tools to the chart. The key is to create a chart that is easy to read and analyse so fonts, colours and whether you go for a line, bar or candles  are all factors that may affect the trader when they are reacting to how the market changes. The most reliable way to start trading in the forex market is the use of forex robots   For example stable and professional forex robot with real account proof - TFOT 

 

5. Your Trading Account Must Stay Protected

The main drive in forex trading is of course making money but avoiding losing money is vital. You must become equipped with a sound money management technique if you are to trade successfully. The seasoned trader will say that entering a trade at a certain position and making money is possible but how you get out of the trade is what counts.
The skill with this is understanding the point at which you take a hit on your losses and moving on with the next trade.
A protective stop loss is a very good method of ensuring that losses stay reasonable and so should always be used.
A trader can also use a maximum daily loss amount above which any positions are closed and no trades can be started until the next trading session starts.
So as well as putting plans in place to ensure losses are limited, protecting profits is of equal importance.
Some techniques of money management like trailing stops, can maintain profits and still allow for growth in other trades.

6. When You Do Go Live, Start Small

 Now the trader has completed all of their homework, developed a plan and practiced on the demo account they can go live – specifically, use real money to trade.
All the practice in the world does not prepare you totally for real-time trading so you should always start with small amounts.
It is only when you trade live that you will get to understand slippage and how you react emotionally.
What’s more, you may have developed the best plan in the world when in practice but it can still crash when used in a live environment.
Using small sums to start with will allow a trader the opportunity to assess their responses and the effectiveness of the trading plan as well as become more skilled in conducting specific order entries without blowing the full trading account straight away. 

7. Reasonable Leverage Should Be Used

There’s nothing like forex trading for the amount of leverage that can be afforded to those that trade.
A big reason that forex is such an attractive option is that a trade can generate very large profits with only a small investment – it can even be as low as $50.
If used properly, there is potential for growth with leverage although it can equally boost losses the same way.
Leverage can be controlled by a trader by basing the size of the position on the account balance. For instance, a trader has a forex account of $10,000 and one standard lot of $100,000 position would give a 10:1 leverage.
So although the trader is able to open up a much bigger position by maximising leverage, risk can be limited with a smaller position. (More can be read about this in Adding Leverage To Your Forex Trading.) 

8. Good Records Should Be Kept

A very effective way to cement any learning from successes and losses in forex trading is to maintain a trading journal.  Record your own activity by noting down the profits, losses, dates, instruments used and very importantly the emotions and trader performance. This can all be very helpful when looking to grow into a successful trader.
If reviewed from time to time, useful feedback can be gained to improve learning.
It was Albert Einstein that said, "Insanity is doing the same thing over and over and expecting different results”.  If you don’t know what you did before, then how do you know that you won’t do it again and have the same outcome? 

9. You Must Understand The Treatment and Implication of Tax

 When it comes to paying your tax bill, you need to know how your forex trading will be viewed. Accountants or tax specialists will be able to guide you on this point and even help you use specific laws to benefit you. Tax laws are always changing and therefore it is sensible to make sure this is one area to stay on top of. 

10. Trading Should Be Treated As a Business

By viewing your trading as a business, you can focus on the long-term and not get too concerned about any short term profits or losses.
This can help traders manage their emotions and in the same way a standard business will incur expense, taxes, losses, risk and uncertainty, so does trading.
Equally, it is not common for a business to be an instant success and the same will apply to forex trading. By setting out some realistic goals, being organized, planning and continuing to learn, as much from failures as you do from success, you should be able to enjoy a successful and long trading career. You also can attract investment or sell forex signals. For this reason you need Forex Account Copier 

The Bottom Line 

Many traders are drawn to the global forex market due to the continual trading, low account requirements, and access to high amounts of leverage. If viewed as a business, you can have a profitable and rewarding career in forex trading. Finally, four tips to help traders stop losing money are

• Make sure you are well-prepared
• Be disciplined and patient when it comes to research and studying
• Use robust and sensible money management techniques
• Take the view that trading is a business

2012 BJF Trading Group inc  http://iticsoftware.com