To the noobs - I'm a seasoned Forex trader. Today I didn't follow my strategy, and got my teeth kicked in for it. Follow your strategy.
Title pretty much explains it. You have to have discipline. Follow your strategy to a t. Cross that t and dot those i's, too. The "setup" I was looking at looked great, but it's one I never trade; a breakout and retest. "This is a perfect setup - the yadda broke the yadda resistance, and the weekly highs yadda!" I thought to myself. You know the drill. Sure I don't trade that way, but a lot of successful people do! I totally won't get bootyraped on this trade! Well, I might as well have flushed money down the toilet the second I hit the buy button. It's something I haven't done in years, and feel like a moron for it. So this is me venting, but also some advice - if you don't have discipline, you won't make it in this game. Discipline, discipline, discipline.
So I’ve backtested my forex strategy in a number of us stock markets and it works seamlessly. High leverage,no expiry. So my question is given the thousands company shares moving daily why would you stick to a couple of forex pairs??
Let's see who wins the most in this race: My forex strategy that is independent of market scalability, volatility and direction, OR CHSB .......: Beginning 2018 December - Forex 4.55% Profit CHSB = -100% loss Year 2019 January already coming out on the green: Forex 5.88% Profit CHSB - (-100% loss) February has more !!!! Remembering that January is not over.
05-27 14:15 - 'it will be a pleasure for me to introduce you to my strategy and the platform I use to make good profit through BITCOINS BINARY AND FOREX TRADE , whereby you can trade your BTC and you can also trade on both BI...' (i.redd.it) by /u/official-dave removed from /r/Bitcoin within 2-12min
How i came up with my first Forex Trading Strategy
You don’t necessarily need full blown strategy to start back testing. This is what I did. You can take it for what its worth. When I came up with my first strategy.
Decide if you would like to come up with one of the following ( if you are new, stick one of these until you have mastered this)
a. Trend Continuation b. Trend Reversal I would advise newbies to start with Trend continuation since Reversal are bit more complicated and you need to take a lot of things into consideration
I picked Trend continuation. From here it’s an open playing field. But keep in mind that we are still building a strategy. I’m a technical trader who uses candlestick signals to alert me on a possible trade. That’s said for now you are going to focus on two candlestick signals. Let keep it simple and focus on Engulfing candles and Hammer Candles
Now that you know what time of candles sticks you will be focusing on let’s get deeper into the strategy building part. I will be discussing a LONG(Bullish) strategy but reverse this if you want to build a SHORT(Bearish) strategy . In order for price to confirm that the we have Bullish trend we need to first see price making at least one higher Low and a higher High. So using a web application such as Tradingview you will go back in time on a Forex pair to point where the price has a Higher Low and a Higher High.
At this point once price has formed a higher high we analysis how price acted. Most of the time following a higher high price would pull back to a key level. This level could a previous resistance now turn into the support level or key Moving Average. This where you need to be creating and start adding and removing Moving average(MA). In my opinion keep it simple and stick to 2 -3 MA’s. For an example let say once the price formed a Higher high price pull back to a 20 EMA and a support level and printed Hammer candle stick signal. In your next step you want to go back in time may 3 -5 years check to see how price acted every time your criteria was present. NOW THE BACK TESTING STARTS. You want to document every win and loss to understand the W/L Ratio. You can even add an indicator such as MACD, Stoch and RSI as an added level of confirmation. All in all keep the indicator to a minimal and NEVER GET INTO A TRADE BECAUSE YOUR INDICATORS LINED UP. PRICE IS KING.
From this point on keep documenting the process and revising your strategy still you have a working back tested strategy
I want to get your opinion on my exit strategy /r/forex
We've all heard the old adage "cut your losses short and let you winners run".. the other day I was thinking about this and what it meant to me personally and my trading plan. I think they're both equally important. On one hand, if you dont cut your losses short, you will eventually blow your account since the losses will mount.. and on the other hand, if you dont allow your trades to run, you wont truly maximize your trade potential. So with those things in mind, i set about implementing a few basic rules for my exit strategy that i hope will help me accomplish this goal. The first part, as im sure most of us is aware of, is to have a set amount to risk and to have a designated stop loss. They go hand in hand. The amount i want to bet is expressed by how tight my stop is in relation to the size of my position. This is my Risk.. or R (now this is not anything new, im just putting this out there so we have a clear idea of what im talking about. and for the sake of this exercise, the entry strategy is irrelevant. just assume that ive picked a good spot to get in according to my strategy and that i've taken a position which is 1.5% of my account) So ive identified where my stop is going to be and how big my position is. Next i need to figure out where i want to get out. How far away is my exit? In most instances, i wont get in a trade unless i see a potential of 3 to 1 risk/reward. So my exit would be 3R since my original risk is R. So ive plotted out where my entry is and where my stop is and where my target exit is. What else is left to do? well, this is where i usually get in trouble and im guessing some of us have an issue with. What do we do in between when price is fluctuating? Sometimes i get the urge to just take a profit because i see that price is coming back down to my entry.. sometimes i want to cut my losses when i see price approaching my stop. Well, ive come up with these rules that will help mitigate those urges and paint more of a black and white picture for my exit. I break up the profit range into multiples of R. So my overall exit target is 3R. Theres also a subdivision of 1R and 2R. Once i get into my trade, if price reaches 1R, i move my stop to break even (BE). If price never makes it to 1R and eventually gets stopped out, oh well, on to the next trade. Once price moves to 2R, i move my stop to 1R. And finally, once price gets past 2.5R i take off my target exit of 3R, place my stop at 2R and see where the trade goes. If it gets past 3R i put a trailing stop of R and let that baby run to wherever it wants to go. So why am i breaking this up into 1R, 2R, 3R and a trailing stop? Well i want to minimize my losses while also locking in profits when i can. This way i might lose some trades (R) but ill also have trades that "never happened"(got stopped out at BE) or went to 1R or 2R. And i would keep track of this in my trading journal as well. How big was my profit in terms of R (-1R, 0R, 1R, 2R, 3R and so on)? Then after a month or two of trading i can look back and easily see how many R i was averaging per trade. I know that moving my stops around like this gives my trades less chance to breath. If theres increased volatility in the market it could easily hit these stops. But thats the penalty i pay for getting to lock in the profits of 1R and 2R and potentially having huge winners that are larger multiples of R. Anyway, just thought i would put this out there and you could give me some feedback or maybe it could help you. Sorry if it was a rambling mess. Thanks and good luck to you all.
Im picof matthew, a grade 2 forex trader and a trading agent. Are you interested in crypto or forex trading? I trade for individuals who are interested and make huge profits 10.5% daily/ 60% weekly. You can copy all my trades with the signals and learn all my strategies. If you Are interested
After 9 months of obsession, here is my open source Node.js framework for backtesting forex trading strategies
TL;DR There's lots more to the story. But the code is all open source now. Have at it. I'm too exhausted to continue with this. If you'd like more details, feel free to message me. If you happen to carry on with this project or use any ideas from it, I would greatly appreciate it if you could keep in touch on your findings. If anyone has any insights, please feel free to comment or message me. I've spent the last nine months working furiously on this. I started a project for backtesting strategies against data I exported from MetaTrader. I had a very powerful computer crunching numbers constantly, trying to find the most optimal configuration of strategy indicator inputs that would results in the highest win rate and profit possible. Eventually, after talking with a data scientist, I realized my backtesting optimizer was suffering from something called overfitting. He then recommend using the k-fold cross-validation technique. So, I modified things (in the "k-fold" forex-backtesting branch), and in fact it provided very optimistic results when backtested against MetaTrader data (60 - 70% win rate for 3 years). However, I had collected 3 months of data from a trading site (by intercepting their Web Socket data), and when I performed validation tests against that data using the k-fold results created from the MetaTrader data, I only got a ~57% win rate or so. In order to break even with Binary Options trading, you need at least a 58% win rate. So in short, the k-fold optimization results produce a good result when validation tested against data exported from MetaTrader, but they do not produce a good result when validation tested against the trading site's data. I have two theories on why this ended up not working with the trading site's data:
The trading site I collected data from uses Reuters data. The prices in the MetaTrader data I used are different from the prices in the the trading site's data. Basically the the trading site's data is offset and is slightly higher than the MetaTrader data (and there may be other differences). I suspect that the k-fold optimization may have produced a predictor that is tailored to the data exported from MetaTrader (data available here), but it does not work as well on the the trading site's data.
The script I used to collect data from the trading site disconnects from the trading site periodically for maybe 10 minutes every, and so when it does, the strategy indicator calculations used when validating against the collected data have to start all over due to gaps, and so potential trades are lost.
For the strategy I use the following indicators: SMA (Simple Moving Average), EMA (Exponential Moving Average), RSI (Relative Strength Index), Stochastic Oscillator, and Polynomial Regression Channel. forex-backtesting has an optimizer which tries hundreds of thousands of combinations of values for each of these indicators, combined, and saves the results to a MongoDB database. It can take days to run depending on how many configurations there are. Basically the strategy tries to detect price reversals and trade with those. So if it "thinks" the price is going to go down within the next five minutes, it places a 5 minutes PUT trade. The Polynomial Regression Channel indicator is the most important indicator; if the price deviates outside the upper or lower value for this indicator (and other indicators meet their criteria for the strategy), then a trade is initiated. The optimizer tries to find the best values for the upper and lower values (standard deviations from the middle regression line). Additionally, I think it might be best to enter trades at the 59th or 00th second of each minute. So I have used minute tick data for backtesting. Also, I apologize that some of the code is messy. I tried to keep it clean but ended up hacking some of it in desperation toward the end :) gulpfile.js is a good place to start as far as figuring out how to use the tools available. Look through the available tasks, and see how various "classes" are used ("classes" in quotes because ES5 doesn't have real class support). The best branches to look at are "k-fold" and "master", and "validation". One word of advice: never, ever create an account with Tradorax. They will call you every other day, provide very bad customer support, hang up the phone on you, and they will make it almost impossible to withdraw your money.
Forex Algorithmic Trading Strategies: My ExperienceAs you may know, the Foreign Exchange (Forex, or FX) market is used for trading between currency pairs. But you might not be aware that it’s the most liquid market in the world.A few years ago, driven by my curiosity, I took my first steps into the world of Forex algorithmic trading by creating a demo account and playing out simulations (with fake money) on the Meta Trader 4 trading platform.After a week of ‘trading’, I’d almost doubled my money. Spurred on by my own successful algorithmic trading, I dug deeper and eventually signed up for a number of FX forums. Soon, I was spending hours reading about algorithmic trading systems (rule sets that determine whether you should buy or sell), custom indicators, market moods, and more.My First ClientAround this time, coincidentally, I heard that someone was trying to find a software developer to automate a simple trading system. This was back in my college days when I was learning about conc..... Continue reading at: https://www.toptal.com/data-science/algorithmic-trading-a-practical-tale-for-engineers
Started my journey in June when I turned 18, the legal age required to trade in Canada. Ever since I dedicated myself to the craft of trading I can say it has made me more disciplined in many aspects in my life. I had to come up with strategies to remove overtrading and that 9-5 mentality of trading everyday. It took me some time to realize that trading everyday exposes your equity to a high amount of risk no matter how good the setup looks. Fast forward to November life is great I am making 15,000 per month and I am a funded FTMO trader. This is a manifestation of my efforts and energy going into the trading career that I have birthed. I love my life soo much I am financially free and I can consistently generate profits from the forex market. I started trading live in September, September and October were net negative months but the month of October was the month when I made over 1000 dollars in a day, This post is mainly to inspire others to never give up. My future is going to be amazing by the time. Always stay focused and never quit on something that you cant go 3 hours without thinking about it.
I have an 89% win rate over 18 trades, with a 27% profit. How many trades should I do before going live?
So I've been doing some scalping on pairs with high spreads in cryptocurrencies previously with great success, but I finally figured I'd give forex a real shot (was into it a few years ago, but didn't go live). Last time I scalped in crypto, I had 14 out of 14 successful trades, but only about a 10% profit. I haven't heard about anyone scalping the way I do in crypto, but I find my method extremely reliable when I just find the right pair to trade. This is just to say I have some experience with trading, but I'm by no means an expert. Now, I've been scalping the past few days with a paper trading account on TradingView. I've mostly been trading the US Currency Index, S&P 500 and some crypto pairs thus far. I'm scalping on the 1m time frame using bollinger bands and looking at trends, price action and stoch RSI for confirmation on my entries. I started out with 100k a few days ago and first doubled my account to around 200k and then did a 1,3 mill trade, but I was running like 500-1000 USD per pip, so if the market turned against me, I'd be liquidated real quick. While the trades were good, I figured I was disconnected from the risk I was taking because it isn't real money, and I wanted to try doing more conservative and realistic trades, so I reset the account yesterday. Edit (more trades done): Since the account was reset, I've done 45 trades where I've lost on two of them. If my math serves me right, that's about an 95.5% win rate. I'm up around 77.5% currently. I did lose 1500 on one trade, but that's because I by mistake placed a sell order when I was supposed to add another buy order double down on my long position, so I'm not counting that one in (but I'm not counting the 1500 I lost as profit either). I have a very strict strategy I'm sticking to when doing these scalps. I realize 45 trades is not a huge sample size, but that is kinda why I'm asking: How many trades should I do on the paper trading account before I should run it live with confidence? For anyone who might be interested, here's my account history: https://imgur.com/a/zuRSWwd Edit: here's 6 trades more: https://imgur.com/a/CmbyU6n Edit2: some more trades: https://imgur.com/a/q9xqVyq Edit3: I think we're up to 45 trades now: https://imgur.com/a/CsWZEN7
My Forex Trading Strategy. I ventured into the Forex market a little more than 1 year ago. I have tried and tested many different types of trading techniques and styles. Most were failures and some were successful. From my experience, traders making money in Forex will not reveal their trading system, simply because somebody has to lose money in order for you to make money. Currently I have ... Forex Price Action Strategy. My Forex price action strategy was born in 2005 and has been constantly improved over the last 14 years – this strategy has seen it all. It has survived major market changes from the financial crisis in 2008 to the Swiss Franc disaster in 2014, to Brexit in 2016. It really has seen it all. MY FOREX STRATEGY STORY 2; NOKFIKA MSELEKU. Nokfika Mseleku was a Malaysian ambassador’s wife, and was forbidden from being employed considering her status. She knew next to nothing about forex trading, but was determined to find something doing, so she went ahead to learn about it from a really helpful teacher. From what she learnt, discipline and knowledge is the order of the day for ... MACD Forex Binary Options Strategy For M5 Timeframe That Is Very Easy, Simple And Powerful. There are many forex binary options strategies available in the market. Trading forex binary options is much simpler as compared to forex. There is no stop loss or take profit. You just need to get the market direction correctly. That’s all. Now this is a very simple forex binary options strategy that ... And just like my Forex trading strategy, you can beat other investment opportunities. (By a lot). So, now you can have even more ways to build wealth faster and more income streams contributing to securing your financial future. To Your Wealth, Edward Lomax . Take Immediate, Relentless Action “Create a definite plan for carrying out your desire and begin at once, whether you are ready or not ... Forex werden über ein Bankennetzwerk und nicht über eine dezentralisierte Börse gekauft und verkauft. Darum wird der Markt auch als Over the Counter (OTC)-Markt bezeichnet. Die Banken agieren als Marktmacher, d. h. sie bieten einen Geldkurs zum Kauf eines bestimmten Währungspaares und ein Preisangebot zum Verkauf eines Forex-Paares an. Der Forex-Markt ist an vier großen Trading-Zentren an Chcesz poznać rozwiązanie, które odmieniło skuteczność mojego tradingu na Forex i na indeksie DAX? Jeżeli odpowiedziałeś/aś chociaż na jedno pytanie TAK, to mam dla Ciebie absolutną NOWOŚĆ – czegoś TAKIEGO jeszcze nie było! Final Step to Your Own Profitable Forex Trading Strategy. The quickest way to test a strategy is to get a charting software where you can go in the back date and also move the chart forward. Moving a chart forward one candle at a time allows a trader to follow his trading rules and place the trades accordingly. Record all the transactions and analyze them before moving on to the live demo ... While there are plenty of trading strategy guides available for professional FX traders, the best Forex strategy for consistent profits can only be achieved through extensive practice. Here are some more Forex strategies revealed, that you can try: Forex 1-Hour Trading Strategy. You can take advantage of the 60-minute time frame in this strategy. The most suitable currency pairs to trade using ... 1-Minute Forex Scalping Strategy. In the following lines, we’ll cover a simple yet effective Forex scalping strategy on the 1-minute timeframe. This strategy is based on both trend-following and mean-reversing, which lowers the number of false signals to a minimum. Still, you need to apply strict risk management rules and only risk a small part of your trading account if you want to become ...
My Best Indicators For a Forex Scalping Strategy - YouTube
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