Discussion of article "Basic math behind Forex trading"


New article Basic math behind Forex trading has been published:

The article aims to describe the main features of Forex trading as simply and quickly as possible, as well as share some basic ideas with beginners. It also attempts to answer the most tantalizing questions in the trading community along with showcasing the development of a simple indicator.

If you know where to enter and exit the market, you probably don't need to know anything else. Unfortunately, the issue of entry/exit points is an elusive one. At first glance, you can always identify a pattern and follow it for a while. But how to detect it without sophisticated tools and indicators? The simplest and always recurring patterns are TREND and FLAT. Trend is a long-term movement in one direction, while Flat implies more frequent reversals.

These patterns can be easily detected since a human eye can find them without any indicators. The main issue here is that we can see a pattern only after it has been triggered. Moreover, no one can guarantee there has been any pattern at all. No pattern can save your deposit from destruction regardless of a strategy. I will try to provide possible reasons for this using the language of math.

Author: Evgeniy Ilin