Forum on trading, automated trading systems and testing trading strategies
How to Start with Metatrader 5
Sergey Golubev, 2016.12.13 16:06
Just something which newbie may read for example:
A FEW TIPS FOR FIRST-TIME CUSTOMERS
1. Jobs Service - Why Do We Even Need It?
2. Common Types of Orders3. The Ideal RS, What Is It Like? 4. A Few Words About Debugging And Testing
5. Describing Detected Errors 6. Hidden Traps in RS
7. When to Resort to Arbitration?
This is very interesing article: WORKING WITH GSM MODEM FROM AN MQL5 EXPERT ADVISOR
Something Interesting to Read December 2016
Muhammad Syamil Bin Abdullah, 2016.12.14 10:48
Arbitrage: The authoritative guide on how it works, why it works, and how it can work for you : Chris Green
Arbitrage is the practice of taking advantage of a price difference
between two or more markets, striking a combination of matching deals
that capitalize upon the imbalance, the profit being the difference
between the market prices. This is the complete, authoritative, and
exhaustive manual outlining the Arbitrage business model. It has been
compiled and made available to anyone interested in buying products to
be resold online.
In this book, Chris Green will give you the keys to the Arbitrage
Kingdom with the mindset of unlimited opportunities and abundance and
not one of scarcity. Empires are being built by using powerful new
programs like ScanPower to source and evaluate items for resale. Pair
this with Amazon's amazing fulfillment program called Fulfillment By
Amazon (FBA) to outsource the storage, shipping, and customer service of
your items, and you have a completely scalable, nearly risk-free
business model with a near-zero entry cost. The techniques described in
this book can be used by anyone, anywhere to build a small side business
or large empire. The only limit is you imagination.
There is very interesting and simple indicator which can be used together many trading systems just to re-enter of the main trade:
Sergey Golubev, 2016.12.21 06:51
Best indicators for the modern trader (based on Futures Magazine article)
1. Moving Averages
"That is because price trends are characterized by a natural progression that is indeed timeless. Market price activity tends to proceed through phases of directional swings followed by taking a rest. The degree of that directional volatility and length of the rest (‘consolidation’) periods can vary widely. However, within the overall trend psychology, the attempted reversal patterns which inevitably form during rest phases are a key to the health of any trend."
2. Balance of Power (BOP)
"Since most of what we do is mechanical trading, and different algos perform well under different market conditions, we have found we can really increase our performance by actively heeding what the market is trying to show. BOP helps tease those messages out."
3. Price Action with a powerful risk management tool
"Before an indicator is used it is essential to understand the limitations of the indicator. In other words, when does it perform well and when does it not perform well. Often times an indicator is used across all markets with the expectation that it will perform equally well in all market environments around the clock."
4. Oil price
"Oil is a fickle beast. Our indicators used to be all about America’s thirst for oil and geopolitics disrupting supply, we’re channeling the band Kansas and have gone past the point of no return. Now when we’re trading WTI it’s all about U.S. production and the pace of economic growth. We used to talk about how a $10 increase in the price of crude oil would decrease GDP by 0.5%"
5. Stock Indices
6. 100-day Moving Average
'"Take the GBP/USD as an example: the pair’s uptrend has stretched to 400 pips from its 100-day MA on four separate occasions this year, and each time (including just two weeks ago) rates have pulled back by 300-400 pips before finding support, presenting a better buying opportunity for trend-following traders."
Sergey Golubev, 2016.09.06 18:00
About the EA (there was a thread about it): Multi currency EA may be based on some other systems. The only thing
to do (except the system itself) is 'account protection feature'.
Because those kind of EAs may be risky, and this risk is for whole the
account (just my opinion sorry). But it also depends on how it will be
coded for example.
As to correlation so I found the following :
Indicators: MFCS Currency Correlation Chart
Sergey Golubev, 2013.10.26 09:29
Currency Pairs Correlation in Forex Market: Cross Currency Pairs
As a forex trader, if you check several different currency pairs to find the trade setups, you should be aware of the currency pairs correlation, because of two main reasons:
1- You avoid taking the same position with several correlated
currency pairs at the same time and so you do not multiply your risk.
Additionally, you avoid taking the positions with the currency pairs
that move against each other, at the same time. 2- If you know the
currency pairs correlations, it may help you to predict the direction
and movement of a currency pair, through the signals that you see on the other correlated currency pairs.
Now I explain how currency pairs correlation helps. Lets start with the 4 major currency pairs: EURUSD ; GBPUSD ; USDJPY and USDCHF.
In both of the first two currency pairs (EURUSD and GBPUSD), USD
works as the money. As you know, the first currency in currency pairs is
known as the commodity and the second one is the money. So when you buy
EURUSD, it means you pay USD to buy Euro. In EURUSD and GBPUSD, the
currency that works as the money is the same (USD). The commodity of
these pairs are both related to two big European economies. These two
currencies are highly connected and related to each other and in 99% of
the cases they move on the same direction and form the same buy/sell
signals. Just recently, because of the economy crisis, they moved a
little differently but their main bias is still the same.
What does it mean? It means if EURUSD shows a buy signal, GBPUSD
should also show a buy signal with minor differences in the strength and
shape of the signal. If you analyze the market and you come to this
conclusion that you should go short with EURUSD and at the same time you
decided to go long with GBPUSD, it means something is wrong with your
analysis and one of your analysis is wrong. So you should not take any
position until you see the same signal in both of these pairs. Of
course, when these pairs really show two different direction (which
rarely happens), it will be a signal to trade EUR-GBP. I will tell you
and USDJPY behave so similar but not as similar as EURUSD and GBPUSD,
because in USD-CHF and USDJPY, money is different. Swiss Franc and
Japanese Yen have some similarities because both of them belong to oil
consumer countries but the volume of industrial trades in Japan, makes
Generally, when you analyze the four major currency pairs, if you see
buy signals in EURUSD and GBPUSD, you should see sell signals in
USDJPY. If you also see a sell signal in USD-CHF, then your analysis is
more reliable. Otherwise, you have to revise and redo your analysis.
EURUSD, GBPUSD, AUDUSD, NZDUSD, GBPJPY,
EURJPY, AUDJPY and NZDJPY usually have the same direction. Just their
movement pattern sometimes becomes more similar to each other and
What do I prefer?
If I find a sell signal with EURUSD and GBPUSD and a buy signal with
USDJPY, I prefer to take the short position with one of the EURUSD or
GBPUSD because downward movements are usually stronger. I will not take
the short position with EURUSD or GBPUSD and the long position with
USDJPY at the same time, because if any of these positions goes against
me, the other one will do the same. So I don’t double my risk by taking
two opposite positions with two currency pairs that move against each
How to use the currency pairs correlation to predict the direction of the market?
When I have a signal with a pair, but I need confirmation to take the
position, I refer to the correlated currency pairs or cross currency
pairs and look for the confirmation. For example I see a MACD Divergence in USDCAD
four hours chart but there is no close support breakout in USDCAD four
hours or one hour chart. I want to take a short position but I just need
a confirmation. If I wait for the confirmation, it can become too late
and I may miss the chance. I check a correlated currency pair like
USDSGD and if I see a support breakout in it, I take the short position
with USDCAD. Now the question is why I don’t take the short position
with USDSGD and I use its support breakout to go short with USDCAD? I do
it because USDCAD movements are stronger and more profitable. I use
USDSGD just as an indicator to trade USCAD.
It happens that you take a position with a currency pair, but it
doesn’t work properly and you don’t know if it was a good decision or
not. On the other hand, you don’t see any sharp signal on that currency
pair to help you decide if you want to keep the position or close it. In
such cases, you can check a correlated currency pair and look for a
continuation or reversal signal. It helps you to decide about the
position you have.
Sometimes, some correlated currency pairs don’t move in the way that
they are supposed to move. For example EURUSD and USDJPY go up at the
same time, whereas they usually move against each other. It can happen
when Euro value goes up and USD value doesn’t have a significant change,
but at the same time JPY value goes down, because of some reason. In
these cases, you can use the below table to find and trade the currency
pair that its movement is intensified by an unusual movement in two
other currency pairs. In this example, if EURUSD and USDJPY go up at the
same time, EURJPY will go up much stronger (see the below chart).
Or if EURUSD goes up and AUDUSD goes down at the same time, EUR-AUD goes up strongly.
Another important example: If EURUSD goes up and GBPUSD goes down at the same time, EURGBP
goes up strongly. Maybe this is the most important case that we can
trade based on this rule. It happens many times that EURUSD and GBPUSD
move against each other and that is the best time to trade EURGBP. Now
you know why EURGBP doesn’t move strongly most of the time. It is
because EURUSD and GBPUSD move in the same direction most of the time.
For example they go up at the same time and so EURGBP doesn’t show any
significant movement because when both of the currencies of a currency
pair go up or down at the same time, that currency pair doesn’t show any
strong movement and direction (I hope you know why a currency pair goes
up or down. It goes up when the first currency value goes up OR the
second currency value goes down. For example EURUSD goes up, if Euro
value goes up or USD value goes down. If this happens at the same time,
then EURUSD goes up much stronger).
The below chart includes almost all of these unusual movements and their results on the third currency pair.
if EURUSD and USDJPY then EURJPY means if EURUSD and USDJPY go up at the same time, then EURJPY goes up much stronger.
Sergey Golubev, 2014.02.04 09:27
Australian Dollar Strongly Correlated to Gold, Silver, Steel Prices (based on this article)
View forex correlations to the SPDR Gold ETF Trust
(GLD), United States Oil Fund ETF (USO), SPDR Dow Jones Industrial
Average ETF Trust (DIA), UK FTSE 100 Index, and IShares Silver Trust ETF
Sergey Golubev, 2016.12.26 10:34
True Leverage (based on the article)
Leverage is your total maximum possible borrowing ratio.
Margin is the minimum cash deposit required by the broker to cover any open trades. It is sometimes expressed as a percentage.
"Position size" is the quantity of what is being traded.
A "margin call" is when your broker tells you that you do not have sufficient funds in your account to cover all your liabilities.
--------------Leverage in forex = Purchase Power/Capital Invested
Sergey Golubev, 2016.01.28 20:07
This is very interesting scalping EA: Angry Bird (Scalping) - expert for MetaTrader 4
Some people say that this EA looks like 'modified Ilan1.6' in trading but with more secure features concerning deposit and so on and having the following:
This is the description from the author:
This is backtesting for 4 days till now with minimal/minimum risk for deposit:
This EA was improved here (free to download) and this version does not use martingale feature (and some rules for buy/sell was changed too).
Besides, some settings (set files) were uploaded for the old/original version:
This is very interesting indicator which can be very usefull in technical analysis for example:
This indicator shows the % Daily Change of yesterday close with respect to actual price (Bid). It calculates the percentage change between yesterday close price and the actual bid price. It works on any timeframe.
The latest version of this indicator with some improvements and fixing (which I used to produce the images above) was made by roboware (thanks to him) - download from his post here.
Laguerre scalping system
Sergey Golubev, 2013.11.04 17:37
Laguerre Scalping Trading System
Please find template for this system. Do not forget to download Laguerre indicator (other indicators already exist in Metatrader 5).
You will get chart like that (you can see confirmed buy entry on the image) :