Simple systems stand the best chances of succeeding by not becoming overly curve-fit. However, adding a simple filter to a robust system can be a great way to improve its profitability, provided you also analyze how it may alter any risks or biases built into the system. The Moving Average Crossover System with RSI Filter … Read more
Correlation strategies appeal to forex traders because it removes the stress associated with picking market direction. When two correlated pairs diverge from one another, the idea is to simply buy one pair and sell the other. What are correlated currency pairs? Correlation offers a mathematical probability of two “time series” moving in the same direction. … Read more
The short summary is that time based orders in MT4 are possible. You just need to keep in mind some of the technical limitations. MetaTrader 4 EAs work based off of incoming ticks. Whenever the bid/ask changes by a micro pip or more, that event triggers the EA to do something. When the markets hum … Read more
Trailing stops let forex traders lock-in profits as well as reduce the overall risks of trades as they advance. A trailing stop protects profits by allowing a winning trade to remain open for as long as possible. By choosing the right stop parameters, your mechanical trading system can manage trailing stops to maximize profits in … Read more
A major concern of newer traders is which is the best indicator for them to use in their trading. Also, they want to know if indicators can be broken down into beginning, intermediate and advanced trading categories. Personally, I don’t think of indicators as being in categories or this one is the best and that … Read more
If you’re not a new trader, you’ve probably had the urge to simultaneously deploy several trading strategies. That way, most of the time, you can make money. Of course, that’s theoretically. But the fact is, quite often, combining two different strategies can do more harm than good. I advise traders in their formative years to … Read more
The forex carry trade is a type of strategy in which traders sell currencies of countries with relatively low interest rates, and use the proceeds to buy currencies of countries that yield higher interest rates. Forex carry trading leverages the differences in interest rates between countries. For example, one country’s central bank may lower interest … Read more
One of the top questions scalpers want an answer to is whether their broker allows scalping. Among scalpers, it’s constant fear that if their profits swell to significant amounts they’re going to get black listed. But the real question is can you scalp trade without your broker noticing? Theoretically, yes; but in practice it’s not … Read more
The paranoia of retail forex traders is legendary. Some of the more popular sites like forexpeacearmy.com focus heavily on the idea of a scam or someone trying to rip you off. The idea extends to the brokers as well. Traders frequently blame their losses on broker manipulation or games. This undoubtedly happens. I worked as … Read more
Candlestick charts, using the individual candles as well as the patterns that they form, can provide an abundance of information to the trader. An oftentimes overlooked aspect of these charts is the trading information provided by longer wicked candles – especially when it comes to stop placement. Many newer traders will decide where to place … Read more
