Something Interesting in Financial Video - page 2

Sergey Golubev  

Learn how to build an automated trading robot - Part 2 (free system)

Sergey Golubev  

Video Lesson: How To Plan Trade Entry Signals

In this video, we will look at different tools that traders will use to help decide when to enter a trade - we are assuming that the trader has used his edge to form an opinion or bias to what price will do next, and now he is ready to enter the trade. 

Entering the trade

After finding an edge to trade, a trader needs a set of tools or instructions guiding them on how to enter the trade. Let's say a trader is trading an overall up-trend. In other words, the overall trend of price is going up over time. However, price does not go straight up. At times, price will reverse and drop down a bit before reversing back to continue the up-trend. A trader attempting to trade the trend may enter on the pull back. In other words, they enter when price drops down hoping to catch the reversal back up.

To decide when to enter, a trader may use support and resistance. So as price reverses back down, they wait for price to hit a level of support and then enter.

Or the trader may use technical indicators. Perhaps the trade enters when a shorter term moving average crosses over a longer term moving average.

Perhaps the trader looks for divergence such as RSI divergence. As price drops, they enter when they see RSI diverge from the downtrend and turn back up with the expectation that price will soon reverse and rise back up as well.

Perhaps they will use fibonacci retracements or pivot points to judge how far price will drop before reversing back up.

Perhaps the trader will use volume. As price drops back down, they will wait if volume is increasing, which implies that price is picking up momentum, and then enter when volume declines which implies that the downward movement is running out of steam.

Let's continue with our range trading plan from the last video. To re-cap- after making a large move up or down, price tends to go into a horizontal range for a bit while it 'figures out' if it is going to continue in the same direction, or reverse back the other way. So our edge is that we look for price to make a big move and then go into a horizontal range. We are looking to enter as price approaches the wall of the range and ride price to the other side of the range.

Ranges are not always so clearly defined by support and resistance lines. For instance, sometimes price reverses close to the wall of the range without actually touching the wall. Therefore, the best place to enter the trade is also not always so clearly defined, and we can use some tools to help guide us on when to enter. Some common tools a trader may use to help enter range trades are oscillators. A trader may enter when price touches the wall of a bollinger band versus the wall of the range, or when Stochastics shows over bought or over sold, or when RSI reverses.

So that was two examples of common ways traders will enter a trade. There are more tools and ways to enter than can possibly be described in one video. However, how one enters is just one part of a complete trading plan that includes trade management and money management, both of which are more important than the edge or how one enters into the trade.

Sergey Golubev  

Trading the News by David Song

Major economic events and fundamental developments are monitored by currency traders as it reflects the strength of a country's economy. Trading the News is often difficult as it producers sharp movements in the exchange rate, but can be used to generate trading opportunities. David Song will go through a basic strategy that will provide tools to help manage the risk of loss, along with a few trading tips that can assist currency traders to avoid being on the wrong side of the market.

Sergey Golubev  

Trading The Martingale and Anti Martingale Strategies

In today's lesson we are going to look at the two categories that most position sizing strategies fall into which are known as martingale strategies and anti martingale strategies.

A position sizing strategy which incorporates the martingale technique is basically any strategy which increases the trade size as a trade moves against the trader or after a losing trade. On the flip side a position sizing strategy which incorporates the anti martingale technique is basically any strategy which increases the trade size as the trade moves in the traders favor or after a winning trade.

The most basic martingale strategy is one in which the trader trades a set position size at the beginning of his trading strategy and then double's the size of his trades after each unprofitable trade, returning back to the original position size only after a profitable trade. Using this strategy no matter how large the string of losing trades a trader faces, on the next winning trade they will make up all their losses plus a profit equal to the profit on their original trade size.

As an example lets say that a trader is using a strategy on the full size EUR/USD Forex contract that takes profits and losses both at the 200 point level (I like using the EUR/USD Forex contract because it has a fixed point value of $1 per contract for mini forex contracts and $10 per contract for full sized contracts but the example is the same for any instrument)

The trader starts with $100,000 in his account and decides that his starting position size will be 3 contracts (300,000) and that he will use the basic martingale strategy to place his trades. Using the below 10 trades here is how it would work.

As you can see from the example although the trader was down significantly going into the 10th trade, as the 10th trade was profitable he made up all the his losses plus a brought the account profitable by the equity high of the account plus original profit target of $6000.

At first glance the above method can seem very sound and people often point to their perception that the chances of having a winning trade increase after a string of loosing trades. Mathematically however the large majority of strategies work like flipping a coin, in that the chances of having a profitable trade on the next trade is completely independent of how many profitable or unprofitable trades one has leading up to that trade. As when flipping a coin no matter how many times you flip heads the chances of flipping tails on the next flip of the coin are still 50/50.

The second problem with this method is that it requires an unlimited amount of money to ensure success. Looking at our trade example again but replacing the last trade with another loosing trade instead of a winner, you can see that the trader is now in a position where, at the normal $1000 per contract margin level required, he does not have enough money in his account to put up the necessary margin which is required to initiate the next 48 contract position

So while the pure martingale strategy and variations of it can produce successful results for extended periods of time, as I hope the above shows, odds are that it will eventually end up in blowing ones account completely.

With this in mind the large majority of successful traders that I have seen follow anti martingale strategies which increase size when trades are profitable, never when unprofitable.

Basic Principles - Trading Operations - MetaTrader 5 Help
Basic Principles - Trading Operations - MetaTrader 5 Help
Before you proceed to study the trade functions of the platform, you must have a clear understanding of the basic terms: order, deal and position...
Sergey Golubev  

Linda Bradford Raschke on Day Type, Taylor Trading, Trade Location, More

Linda Bradford Raschke covers:
- Combining Taylor's philosophy with a 2-period ROC and pattern recognition
- Finding ideal trade location
- Determining trading range vs trending environment
- Conditions that lead to extended runs or persistency of trend
- Two different rule sets depending on which trading environment
- Quantitative backtesting to support a statistically significant edge
- Mechanical vs Discretionary - pros and cons of each
- Linda uses this approach personally in her own trading every day

Sergey Golubev  

The Video from MQ: demonstration of the calculations on the GPU in MQL5 code and the graphics capabilities of the terminal 

Форум по трейдингу, автоматическим торговым системам и тестированию торговых стратегий

Вот что можно сделать с OpenCL прямо в терминале MetaTrader 5 без всяких DLL

Renat Fatkhullin, 2016.12.10 01:10

It demonstrates not only the calculations on the GPU in MQL5 code, but also the graphics capabilities of the terminal:

Full source code in the form of a script is attached. The bug on OpenCL 1.2 was fixed.

This video was created by MetaQuotes.

The articles:

Seascape.mq5  39 kb
Sergey Golubev  

Becoming a Better Trader: Frustrated by Low Volatility? Don’t Be (based on the artcle)

  • "Low volatility is a major source of frustration among many traders as the amount of opportunity to trade – or should I say, make ‘good’ trades – diminishes. Frustration generally only breeds one thing – more frustration. We can’t control how the market behaves just as we can’t control the outcome of our trades, but what we can control is how we react and conduct ourselves."
  • "Volatility ebbs from low to high and back again, across all time-frames. In that statement lies the silver lining; when volatility is low, look at it like this – it will pick back up again (and maybe soon). But until it does we need to accept what the market is providing. It is imperative to lower expectations so as to protect both trading and mental capital (always want to keep your head as clear as possible). To combat uneasiness which can arise by the lack of opportunity, be mindful and think – For every loss I avoid, it’s one less loss I have to make back when volatility or optimal trading conditions return…” And, again, volatility will return."
  • "When the market is ‘dull’ there are things we can do to still be productive; study trade history/review journal entries, read books/websites, listen to and read what seasoned traders have to say, and even – relax! You have to trust that a good trade or better environment is around the corner. So, at the end of the day, if a proper mentality is adopted, one not need to become frustrated."

Sergey Golubev  

Cynthia Kase on Kase Bar Charting - Part 1

A new way to look at bar charts - accounting for volatility. Excellent view of technical analysis for short term trading strategies.

Sergey Golubev  

Cynthia Kase on Kase Bar Trading - Part 2

Part 2 of my discussion with Cynthia Kase on how to use Kase Bars in online stock trading and technical analysis.