- Trend Roller-Hedging:OP at same time in spread 1 or less broker (non-commission), use the basic trend analisis to determine when the right time to hold and to close.EX: trend is up, you open sell and buy position then price goes down its the time to close sell if the up trend still valid.
- Hide N’ Seek: Search candle tail,divergence,pattern,wave, and any other sign regarding to price action at all timeframes mainly in bigger one.
WHAT ARE THE MOST COMMON TRADING SYSTEMS?
Here are the main trading systems people use nowadays:
TREND TRADING (= SWING TRADING)
- Most popular among beginner traders
- Based on 2-4 indicators (Moving Average, RSI, SAR, Stochastics, etc.)
- Time Frames: 4H to 1W (1D being the most common)
SCALPING (= DAY TRADING) – SIMILAR METHOD AS TREND TRADING, JUST EXECUTED MUCH FASTER ON SMALLER TIME FRAMES
- Most popular among advanced traders
- Also based on 2-4 indicators like in Trend Trading
- Time Frames: 1M to 15M (5M being the most common)
- Very profitable with a proper strategy
- Doesn’t use typical indicators except for FFCal (“Forex Factory Calendar” Indicator)
- Doesn’t use Time Frames either
- For example big weekend gaps, reversals after important news or big candles, etc.
- Those are very rare “opportunities” (once a week or once a month) and still the outcome is not sure and the probability of winning is around 60-70% (which is good, but trades are very rare).
- No Indicators and no Time Frames are used.
- It’s a very rare way of trading used only by very few traders.
- Generally a losing strategy due to doubling the stake each time it loses
- After losing usually 5-7 times in a row (which happens very often) the whole capital is wiped out.
- Very profitable, but disallowed by most brokers.
- However, big banks and brokerage houses use it themselves to make profits by comparing prices from different sources, they just don’t want the “small guys” win like them.
- And some other systems that in general are similar to one of the above or combinations thereof.
Among others the main reason most traders lose no matter which system they use is the following:
The price movements are in fact unpredictable both short and long term.
The chances of winning when you buy or sell are less than 50% (since you pay the spread or commission each time).
This is a mathematical fact and no matter what you were told by various Forex gurus, what you think or what kind of experience you have, you cannot change this ratio no matter how many years you trade, how many indicators you use, or how smart you are.
50% or less! That’s a mathematical probability of a trade to be closed with a profit.
It’s similar to flipping a coin, but here your chances are 50/50, no less, no more.
No matter how hard you try the statistical chances are always 50/50.
In Forex it was less than 50/50, remember?
I don’t say Forex trading is same as flipping a coin or your chances to win are less or equal 50%, quite opposite.
You have no influence to increase your chances when you flip a coin, but when you trade Forex you can increase your chances of winning to 70-80% or even more using a good system or EA, educating yourself, etc.
Statistical chances are 50% but your real chances can be and should be much higher!
But let’s say 75% is an ideal winning ratio to become a successful trader.
Go to the “METHOD” page to find out how our FX NEWS TRADER works exactly.
It’s simple, but very powerful and you can check results when you login to an account or see MYFXBOOKresults.
|Opening an Order||5-10 pips Price Shift||The EA uses Primary Feed (IQFeed) and then compares it with your broker feed to see if there is a sufficient price shift. If the price shift is big enough, eg. 5-10 pips, it means it’s safe to enter a trade to cover the spread and make sufficient profits.|
|Closing an Order||5-7 pips Stop-Loss3-5 pips Trailing SL||It uses only a Trailing Stop-Loss of 3-5 pips to close winning orders.It uses a tight Stop-Loss of about 5-7 pips to minimize the losses in case the price suddenly moves in the opposite direction.|
|Average Order Time||15-25 min||Some orders are closed earlier due to Stop-Loss activation.|
|Average Number of Orders||5-10 day||Sometimes there are no orders at all during one day due to low market volatility.You can check out some VIDEOS to see a few sample trades.|
|None||All our chart TF are 5M for illustration purposes only, but in fact the EA works on all Time Frames the same way.|
|Pairs||Majors||It’s possible to trade all pairs, (eg. GBPSEK, USDIDR), but due to high spread and low volatility, we don’t use such “Exotics” or “Crosses”. We use only major pairs, eg. EURUSD, GBPUSD, USDJPY, EURJPY, etc.|
|MaximumSpread||3.5 pips||If the spread is too high, it’s risky to trade any system which keeps the trades open less than 1 hour.|
|Indicators||FFCalN||This indicator uses news times based on Forex Factory Calendar.There are no other “typical” indicators like MA, RSI, etc.
No Channels, Fibonacci, Support/Resistance are used.
|Primary Price Feed||IQFeed||This fast custom-made feed allows the EA to execute trades based on the information received from that feed supplier.|
|Default Parameters||Low RiskMed. Risk
|The EA has 3 default parameter sets with various risk levels. You don’t have to change any parameters except for the 2 below.|
|Other Parameters||Lot SizeNews
|You will be able to adjust the Lot Size, for example 0.1, 0.5, 1.0, 5.0 lots etc.
You can also choose the type of news you want to trade: