Forum on trading, automated trading systems and testing trading strategies
newdigital, 2014.06.05 09:41
USDCHF Breakout Hindered by 200-Day Moving Average (adapted from dailyfx article)
The 200-Day Simple Moving Average
The 200-Day Simple Moving Average is one of the most popular indicators
in the world. When price breaks through a 200 MA on a daily chart, it
can often be seen as a topic of conversation on financial news stations,
websites and newspapers.
It is primarily used to give traders and investors an overall sense of how strong or weak a currency pair is.
Typically, when a currency pair’s price falls below the 200 Day MA, it
is a sign of weakness with a potential for further price decline. And
when a currency pair’s price breaks above the 200 Day MA, it is a sign
of strength with a potential for further price increases.The chart above shows the recent price action surrounding the 200 Day
MA. We see a large run up in price breaking through multiple resistance
levels until it met this powerful MA line. We have had 6 consecutive
days where price has temporarily broke through the 200 Day MA or price
has come within 10 pips of the line before retreating lower. So this
level is acting as strong resistance.
If price were to remain below the MA, it could propel it lower back into
the pair’s price channel. However, a breakout to the upside could add
yet another reason to buy the USDCHF. Until we witness a larger price
move, we are in a state of limbo.
newdigital, 2014.06.06 09:25
3 Steps to Trade Major News Events (based on dailyfx article)
Today, we are going to cover three steps to trade news events.
Step 1 - Have a Strategy
It sounds simple, yet the emotion of the release can easily draw us off
course. We see prices moving quickly in a straight line and are afraid
to miss out or afraid to lose the gains we have been sitting on.
Therefore, we make an emotional decision and act.
Having a strategy doesn’t have to be complicated. Remember, staying out
of the market during news and doing nothing is a strategy.
A strategy for the trader with a floating profit entering the news event
could be as simple as “I am going to close off half my position and
move my stop loss to better than break even.”
For the trader wanting to initiate a new position that is technically
based, they may decide to wait until at least 15 minutes after the
release, then decide if the set-up is still valid.
The active news trader may realize they need a plan of buy and sell rules because they trade based on what ‘feels good.’
Step 2 - Use Conservative Leverage
If you are in the market when the news is released, make sure you are
implementing conservative amounts of leverage. We don’t know where the
prices may go and during releases, prices tend to move fast. Therefore,
de-emphasize the influence of each trade on your account equity by using
low amounts of leverage.
Our Traits of Successful Traders research found that traders who
implement less than ten times effective leverage tend to be more
profitable on average.
3 - Don’t Deviate from the Strategy
If you have taken the time to think about a strategy from step number
one and if you have realized the importance of being conservatively
levered, then you are 90% of the way there! However, this last 10% can
arguably be the most difficult. Whatever your plan is, stick to it!
If I put together a plan to lose 20 pounds of body weight that includes
eating healthier and exercising, but I continue to eat high fat and
sugar foods with limited exercise, then I am only setting myself up for
You don’t have to be stressed or frustrated through fundamental news releases.
Discussion of article "Time Series Forecasting Using Exponential Smoothing"
newdigital, 2014.06.06 21:48
Becoming a Fearless Forex Trader
There is one commonality with traders who can trade without fear. They
build losing trades into their approach. It’s similar to a gambit in
chess and it takes away the edge and strong-hold that fear has on many
traders. For those non-chess players, a gambit is a play in which you
sacrifice a low-value piece, like a pawn, for the sake of gaining an
advantage. In trading, the gambit could be your first trade that allows
you to get a better taste of the edge you’re sensing at the moment the
trade is entered.
James Stanley’s USD Hedge is a great example of a strategy that works
under the assumption that one trade will be a loser. What’s the
significance of this? It pre-assumes the loss and will allow you to
trade without the fear that plagues so many traders. Another tool that
you can use to help you define if the trend is staying in your favor or
going against you is a fractal.
If you look outside of the world of trading and chess, there are other
businesses that presume a loss and therefore are able to act with a
clear head when a loss comes. Those businesses are casinos and insurance
companies. Both of these businesses presume a loss and work only in
line with a calculated risk, they operate free of fear and you can as
well if you presume small losses as part of your strategy.
Another great Mark Douglas quote:
“The less I cared about whether or not I was wrong, the clearer things
became, making it much easier to move in and out of positions, cutting
my losses short to make myself mentally available to take the next
opportunity.” -Mark Douglas
PriceChannel Parabolic system
newdigital, 2013.02.08 14:35
This is the image about how to use AFL Winner indicator:
newdigital, 2013.02.11 06:48
I started to trade this scalping setup but it is not easy for now - market is in flat and we need particular market condition to trade this scalping. Just to see:
Scripts: Drag and Drop Support and Resistance lines with color differentiation
newdigital, 2014.06.11 14:17
Static Support and Resistance in the Forex Market (based on dailyfx article)
As with most forms of technical analysis, the longer the term being used
in the analysis the stronger the response that may be elicited. Pivot
points of monthly and weekly flavors will often attract significant
interest, and should be followed by traders even if using shorter-term
hourly and four-hour charts.
Monthly and Weekly Pivot Points can bring value on long as well as short time frames
One of the most alluring aspects of technical analysis is the ability of
statistics and mathematics to show patterns in human behavior. Nowhere
is this more prominent than in the study of ‘psychological’ levels in
Most human beings think in even rounded whole numbers. We can’t help it;
our species has evolved to value simplicity. As an example, ask someone
how much they paid for their car or their jacket, or even their latte.
They’ll likely round their answer up (or down) to the nearest round
number. This type of rounding will often happen in markets as well; as
traders place their stops or entry orders at or around these levels in
the same way that most human beings will respond when asked how much
they paid for their coffee.
GBPUSD Weekly chart with ‘Major,’ and ‘Less Major’ levels identifiedAs you can see, these levels can come up quite often in a market,
particularly during strong trends as new prices run into fresh
resistance levels (or support levels in the case of a down-trend).
This study of support and resistance can be taken a step further with
the ‘minor’ prices that are set in 25-pip increments; known as the
‘minor’ psychological levels. In the chart below, we’ve moved down to
the hourly chart in the same market looked at above (GBPUSD) with the
addition of these more granular ‘minor’ levels:
Hourly GBPUSD with Minor psychological levels added (25-pip increments)
With psychological levels taking place every 25 pips, there are numerous
opportunities for traders to ‘catch swings’ in a market.
To put more power behind psychological levels or pivot points, traders
can look for confluence amongst these analytical methods; including the
dynamic support and resistance mechanisms that we’ll investigate in our
newdigital, 2014.06.13 07:43
Traders can use the Fibonacci tool available in most trading platforms
to define the move, and then levels at the proper intervals of .236,
.382, .500, .618, and .786 can be drawn in. So, when prices move down to
the .236 line, we can say that 23.6% of that trend has been retraced.
Or if prices move down the .618 level, 61.8% of the trend has been
How to Start with Metatrader 5
newdigital, 2013.07.24 10:00
I just want to remind about how to insert the images to the post - read this small article
MQL5.community - User Memo :
All your texts in Forum, Articles and Code Base are edited in a single environment with a convenient and easy-to-use interface. Let us take a look at its capabilities.
The drop-down list where you can select one of the three
languages in which your message will be automatically translated by
the Google Translate service.
The button (Ctrl+Alt+L) is used for adding links into messages. The Link window appears as soon as you click this button (shown next).
In the Link field, you should specify the address of the link and then click the Insert button.
The button (Ctrl+Alt+I) is used for inserting pictures into messages. The Image window appears as soon as you click the button (shown next).
In the Upload image field, you should specify the picture file. To do it, click the Browse button that opens the standard window to choose files. Select the necessary file and click the Insert button to confirm the choice, or click the Cancel button to end without uploading a file. In the Title field, you can specify the comment that will be displayed as a pop-up help if you move the mouse cursor over the picture.
In HTML mode, it is prohibited to insert external links
to images (HTML tag "src"). It is also prohibited to insert text,
containing such images.
When you try to save text that contains external links to
images, such links will be automatically deleted. This is done to
ensure safety of MQL5.community members.
newdigital, 2014.06.19 09:11
How to Scale-In and Scale-Out of Trades (based on dailyfx article)
So now that we understand the benefits of scaling in and scaling out of
trades, in what situations should we consider it? Well, for starters, we
should only look to add to positions that are in profitable territory.
We don't want to throw good money after bad if the trade is already
proving us wrong. It's best to cut losers short, lest we add fuel to the
We also only want to scale out of positions only when they are
profitable as well. There is no reason (other than hope) to partially
close out a trade once its proven us wrong. So rather than setting a
single profit target for the entire trade, we can set 2 or 3. It's also
possible to leave a part of our trade open without a limit at all, and
letting an indicator or a trailing stop decide when it should be closed.
Where Do We Add-To or Partially Close Trades?
Using this method is actually much easier than many traders try to make
it. The way I look at scaling in is the same way I would look at opening
up a single trade, but locating several times where opening up a trade
is warranted. Stay away from setting "blind" entries 50, 100, or 200
pips away from our original entry. We want to have just as much reason
to add to a trade as we did when we initially opened it.
Take the simple CCI strategy below where we decided to take a buy trade
when CCI crossed above -100. This is a classic trade that found itself
in a pretty tight range for the next 20-25 bars. There were times when
price ran up in our favor; but never a definitive price move that would
catch the attention of AUD/USD bulls, until the range was broken and
price closed above resistance. This breakout would justify buying the
Aussie in its own right. But since we already had a trade, we can simply
add to our existing trade.
After we added to our position, we witnessed another "top" creating
another resistance level. When the AUD/USD broke this 2nd resistance
level, that was another time where we could add to this trade. So it
isn't anything too difficult. We just look for opportunities where buy
trades look good, and allow those entries to add to our existing trade.
As for scaling out, we want to use the same method as we would normally
use to exit trades, but pick multiple levels that fit that criteria. So
for the chart below, we can see that we bought on an initial break of a
previous high. We then targeted a profit just below the next potential
resistance level and then targeted an exit just below the resistance
level after that. So rather than taking a quick profit on our entire
trade at the first resistance level, we were able to let part of the
trade run and obtain greater profits.
Scaling for Success
So we understand that our strategies' trading logic is important, but so
is how we enter and exit our trades. Scaling in and scaling out can
enhance our gains but also at times reduce our risk. Using the methods
above can improve your strategy, but remember to perform your own due
diligence before placing any trades on your own account.
Error 145 Trade Server Return Code
angevoyageur, 2014.03.01 14:27
This forum is about MT5/mql5, please post your question about MT4/mql4 on mql4.com forum.
newdigital, 2014.06.20 16:51
How to Develop Forex Trading Skills
Foreign exchange is the most liquid financial market because it involves
trading currencies on a global level. It includes individuals, banks,
corporations and governments, and is not solely for investment. News at
the national level directly impacts the currencies, and it takes some
time to develop Forex skills on the technical and fundamental level.
However, if you intend to trade in the Forex market, it is important to
gain a strong understanding of these skills. The amount of leverage used
in Forex trading can create large losses off one mistake.