Sunday, 12 March 2017

The Benefits of Forex Robots



The number one  advantage is that forex robots are not emotional with market. They will follow our instructions and they do not respond to any other conditions outside the set-up rules..

Another advantage is that they are tireless and sleepless. When we slept, robot forex still trade. It will stay until we shut down them. We may be sleeping to refresh our mind or take a rest for a while to enjoy with our loved ones. The robot will always  keep it’s eye on the market and trade faithfully with rules that we had set. 

Experience  comes with regular use. Robots are very good in forex trading if we take the time to use them and understand their intrinsic properties. However,it is important to test every robot on demo accounts for a reasonable amount of time before going live.

The foremost advantage of using Forex robot is that it takes the emotional aspect out of trading.  A Forex robot will execute the trade based on the signal provided by the user. It will make order regardless of minor deviation that may otherwise have confused even the most professional of Forex traders. This tool will help the trader to avoid panic when making trading decisions. For instance, it will not close a trade based on fear that the trading session opened a little higher or lower than usual. Automated software will help the trader to execute strategies based on pre-defined rules rather than pure emotion. It enters and exits a trade based on the signals.

Another great yet obvious advantage of using Forex robot is that it remains fully functional 24/7. It does not sleep and keeps on trading both during the day and during night. Using such software, you do not need to keep a constant watch at the market. You just let the Forex robot keep an eye on the market for you.

Another benefit is the ability to backtest various trading ideas.  Such backtesting can be performed in a matter of minutes on multiple currencies. The Forex robot can track dozens of currencies making it easy for you to employ hedging strategies. You can set multiple ending and exit points.    Although human brain is unique, it is weak when it comes to multitasking dozens of different activities. The Forex robot performs this task with ease while reducing common human errors.

Some critics said  that 95% of robots end up failing, either losing a bunch or just barely staying alive. Interestingly enough, about 95% of manual traders fail as well. The EA has a number of potential edge factors over a manual trader, without all the emotional and physical limitations of a human, and yet in the end, the markets are so exceedingly difficult most EAs cannot win against it.



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Thursday, 12 January 2017

My Forex Daily Breakout Strategy [ No Indicators ]

My forex daily breakout strategy is a simple and powerful forex trading system that relies on price action around the daily low of the previous day. It is therefore a momentum based approach.One good thing about this kind of methods is that they enjoy high acceleration towards the profit target and therefore have high success rate.

The trading system is so simple to apply. Let us assume that we want to trade on Tuesday. All we need to do is to  check the low of Monday candle which was the previous day candle. We will place our sell order at 5 pips below the candle and set our take profit  as 120 pips, stop loss of 50 pips and trailing stop of 40 pips.



It is important that we risk between 1% to 2%.
The favourite or recommended pairs for thsi method are
EURUSD,  GBPUSD, USDJPY, USDCAD, USDCHF and AUDUSD.
 I use this method on daily charts and for selling currency pairs. I don`t buy any pairs at all.

Conclusion: Yesterday low is the entry price to sell today until today is closed.

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Wednesday, 11 January 2017

Bosun`s Friday Low Forex Breakout Strategy

 Bosun`s Friday Low Forex Breakout Strategy[BFLFBS] is a weekly breakout strategy that is designed to detect and ride the weekly bearish momentum.It is so simple that any disciplined trader will make a living from it.

The favourite pairs for this method of trading are EURUSD, USDCAD, USDCHF, GBPUSD, USDJPY and AUDUSD. I so much like these pairs that I don`t think of any other pairs beside them. I build my forex trading career around these currencies.Since we shall be using Friday lows, it it means we will have to focus on daily charts.

The method is solely for selling currency pairs and not for buying.This is for some technical reasons.
We will place an order to sell at 5 pips below last Friday low.The magnitude of the stop loss is 70 pips and a take profit of 210 pips. This is a good reward to risk ratio which is actually 3:1. Then a trailing stop of  70 pips also applies.

Taking a practical example of last Friday ( 10th October ), we generate the following signals for this week (13-17 October):
1. EURUSD:
Last Friday low = 1.0572
Sell entry = 1.0572-5 pips = 1.0567
Stop loss = 1.0567 + 70 pips =1.0637
Take profit = 1.0567 - 210 pips =  1.0367

2. USDCHF:
Last Friday low = 1.0077
Sell entry = 1.0077 -5 pips =1.0072
Stop loss = 1.0072 + 70 pips =1.0142
Take profit = 1.0072 - 210 pips = 0.9862

I use this method with a risk of 1% to 2% maximum per trade.It is a simple and powerful forex trading system that relies on price action.


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Friday, 6 January 2017

Moving Average 200 Limits EURUSD Gains On 4-Hour Chart

There are so many questions and arguments about the relevance and power of moving average indicators in the market.Some agree that this indicator is very powerful while some are just critics and nothing more.Personally, I respect anything that works for me, especially over a long period of time.I have been using moving average indicators for as long  as far back as I started trading around 2007.The next question that I am going to answer immediately is ; how do i apply moving average indicators to my trading?

First, all moving average indicators function in the same way and capacity as correctly-drawn trendlines. We have a rising moving average in an uptrend and a falling  one in a downtrend.
The application is to either trade the bounce-off or the break-out.This will be explained in details later.

Now, I use three parameters of moving average. Which are; 200EMA,100EMA, and 50EMA.
I use the three of them to determine the prevailing trend at any time.The wisdom is, choose anyone and stick to it till you master it successfully. Regardless of the parameters, the trend is bullish if price is moving above the moving average and it is down if it is moving under.How do I trade the trend which I have determined?

I like all the three moving averages (200 EMA, 100 EMA, and 50 EMA). However, 200EMA is my most preferred setting.The first thing is to  load the 200 EMA on my monthly or weekly chart to know the direction of the long term trend.Next is to switch to daily chart to find the medium trend. The last effort is to move down to 4hour chart.I always look for retracement on the 4hour chart so that I can trade the pull-backs.Now let us apply this to EURUSD and derive signals for next week.

EURUSD ANALYSIS


The 4hour chart above shows that EURUSD rose significantly from 1.0339 but the gain was technically halted at 1.0614 which is the power zone of the red 200 EMA on the chart.
The bias is to sell the pair during a confirmed downward pull-back. A bearish pull-back is confirmed once a significant support is broken in a strong donwtrend. The bias is to place a pending short order at the break of the near support and target the next important support.
Therefore, we sell at 1.0477(pending order) with stop loss at 1.0580 and take profit at 1.0349.

Our bias relies on the notion that the trend on both monthly and weekly time frames are bearish as price still moves below the 200 EMA on them.It is always sensible to sell high in a downtrend and buy low in an uptrend.

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Thursday, 5 January 2017

EURUSD Is Still Moving Below The 200 Moving Average

EURUSD is moving up significantly today as expected.The pair is pushing above the 200EMA on 4hour chart which was a very strong resistance.However, the move is not yet in harmony with the daily chart as well as weekly and monthly.

 Price moves above the red 200 EMA moving average on 4hour chrt.This is short term uptrend
On the 4hour chart above , we can see that price has just overshot above the red 200 EMA. But we need to check what is going on the big time frames.

It is obvious from the daily, weekly and monthly chart that the trend is bearish.This is because price is still moving below the red 200 EMA on all the the three time frames.

 Price moves below the red 200 EMA moving average on daily chart.This is medium term downtrend 
 
It is therefore logical to conclude that the bullish move on 4hour chart is just a correction which is technically setting up a scenario for the bears to sell high.

The stochs has also shown overbought which gives us the opportunity to sell high.We always sell high(overbought) in a strong downtrend and buy low (oversold) in a strong uptrend.No indicator shows OB and OS like stochs.


  Price moves below the red 200 EMA moving average on weekly and monthly.
This is long term downtrend 

We will therefore sell the pullback at the  break of the near support(1.0482) on 4hour chart and place our stop loss above the resistance 1.0574  with take profit at 1.0349.The take profit is barely above the near support(1.0339) on 4hour.

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Saturday, 17 December 2016

Will EurUsd Remain Bearish In 2017?


The European currency suffered a legendary blow against the American dollar in 2014.It fell from 1.3967 to 1.2000. That is about 2000 pips fall.It struggled to recover in 2015 and 2016 without making it above 1.1713. That means the recovery was limited below the fibo 38.2% of the 2014 fall.





From the chart above, we can see that the pair has recorded another little spike below the 3-year low. If you see what I see now, we do have a bearish flag on the weekly chart above.As such,this shows that there is greater tendency that the pair will make another major low in 2017.Technically speaking, many big boys will add to the big short positions next year until the trend reverses.

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