Showing posts with label forex blog. Show all posts
Showing posts with label forex blog. Show all posts

Friday, May 17, 2013

Profitable trading using Forex Robots (2)


Due to huge interest was shown in the previous post about commercial Forex robots. I have decided to extend the list of recommended ones by two new ones.

  • WallStreet Forex Robot
    • Trading pairs:  EURUSD, USDJPY, GBPUSD, USDCHF on 1-hour time-frame
    • Average weekly gain: 2.24%
    • Min. deposit: $1000
    • Independent test results #1: Link
    • Independent test results #2: Link
    • Order website

  • Forex MegaDroid
    • Trading pairs:  EURUSD on 1-hour time-frame
    • Average weekly gain: 0.38%
    • Min. deposit: $1000
    • Independent test results #1: Link
    • Independent test results #2: Link
    • Order website
Once again, I remind you that before you start trading on a live account follow the procedure explained in the previous posts about the robots and keep in mind the rules about the testing.

  


Wednesday, May 15, 2013

Profitable trading using THV strategy


THV is a legendary free manual trading strategy that was developed by Cobraforex. The strategy is originally designed for scalping (trading on smaller time-frames), although some traders successfully use it on larger time-frames. It can be applied to any trading instrument, but since it is a scalping strategy the better results are carried out on currency pairs with smaller spreads.

THV manual and indicators can be downloaded from here. Well, my intention is not to explain to you the strategy, but to point out on few additional things that can improve your trading results. Since it is a scalping strategy, I have applied it to a 5-minute time-frame.

First, I advise you to take only those trades that are in accordance with bigger time-frames. If on 5-minute time-frame buy signal is met then check out if according to THV strategy the pair is in buy zone on 15 minute and 1 on hour time-frame. If it is not, do not enter the trade. Also, if a sell signal is met, check if the pair is in sell zone on 15 minute and 1-hour time-frame.

Second, take a look at Economic calendar. Do not enter the trades half an hour before highly and moderately volatile news release for one of the currencies in the pair.

Finally, check the volume. Do not enter the trade if the volume is low. It should not be the problem if you are trading on a business day during London or New York session.

Hopefully, these remarks will help you to improve your trading results. Good luck!     

Wednesday, May 1, 2013

When is your Expert advisor ready for live account trading?

Whether you have developed or purchased an Expert advisor there is a certain procedure that has to be followed before the Expert advisor is ready to trade on a live account. 

The first step is called Back-testing. Back-testing can be performed with the Metatrader platform using a Strategy Tester tool. Back-testing is not reliable, however, it is the first step, it is fast and it can give you some picture of your robot. Back-testing results should not be considered at all if your modeling quality is under 90%. Modeling quality can be improved if you import the history data. That data can be found at forextester.com

Strategy tester has two very useful back-testing features: optimization and visual mode back-testing. Optimization compares the trading efficiency with different values of robot entry parameters. It can help you to choose the most profitable combination. Back-testing in visual mode is very interesting when you are developing your own Expert advisor, so you can check does the robot follows your strategy completely.
 
When your Expert advisor accomplishes satisfactory results on back-testing, it is ready for the testing on a demo account. So, put the EA using the best performing back-testing entry parameters on a demo account and leave it for 3 weeks to three months. The duration depends on the time-frame EA has been using. For EAs trading on 1-minute charts, 3-week testing is fine; those trading on 4-hour charts should be left for 3 months on the test. If your EA has achieved satisfactory results on a demo account, it is ready for live trading.
 
Optionally, to be more certain you can start live account trading on a smaller account or using a smaller amount of lots (if is it available) as an entry parameter. Then after one month, you can switch to live to trade on the normal account. 

Well, if you have followed the testing process completely and if your EA has successfully passed all steps. You will certainly enjoy live account trading.

Monday, April 15, 2013

Safe Scalping with EURCHF – A trading strategy


In September 2011 when SNB introduced 1.2 floor, the pair EURCHF has been trading in relatively tight range reaching the highest value at 1.264. Since September 2012, I have been using a simple scalping strategy for that pair and it helped me to earn 20% per month on average.

The strategy is based on the assumption that 1.2 floor will remain. Well, in the past year and a half SNB has been very successful in defending that floor and it states that will continue to defend it with utmost determination. It is realistic to believe that in the long term the pair will not only remain above the floor, but also will return to the values that are much higher than the current one, as Europe and USA are slowly coming out of the recession.

The prerequisite for the scalping strategy is that your broker has a small spread on EURCHF pair (not higher than 2.5 pips) and a positive swap on long entry. If your broker does not meet these demands, try the strategy with a different one. If you have a problem with finding such broker I warmly recommend Exness, I have been trading with them for the past six months and I am very satisfied. Another prerequisite is that the price of the pair is lower than 1.24.

The strategy itself is very simple, enter the long trade following the rules for any other scalping strategy. I was very successful using a 5min blue trend rider and THV3. Just in case, when I enter the trade, I always put stop loss at 1.1980 level. Next, wait till exit rule for your scalping strategy is met (by scalping strategy I meant here 5min blue trend rider or THV3), and if your trade is in gain exit the trade. If your trade is not in gain leave it and wait till it will become profitable. Swap is working in your way now! In the meantime, you can enter another trade on a new long entry signal. In a period while I was using the strategy I never had more than four trades opened.

Money management I was using is 0.1 lots for every $400 on my account balance and I am careful that I have enough money for 4 trades. So, if I have $1600 on my account, it will be enough for four 0.1 long trades.