# New to forex



## ivanyo (8 June 2011)

Hello friends,

I'm new to FOREX trading. I have an account with IB which I opened to trade shares/stocks in. However, more recently I've been trading forex blindly because the ASX opens after I leave my house for uni and closes before I get home 

As a result, I'd started trading forex a little bit. At the moment My base currency is in USD (which is really annoying), but I hold a few k's worth of AUD because intuition tells me AUD is still on the rise. (may be wrong lol)

So here are my questions to you my fellow traders:

- Will the IB system be suitable for me to trade on? (Anybody know how I can change base currency to AUD?)

- is MetaTrader offered by IB? Can somebody please give a light explanation of why it's so good?

- I only have a few K's to play around with, so should I be trading speculatively or taking more of a "buy and hold"  position? (Less than 20K)

Many thanks in advanced for those who can help me out. 

-ivanyo


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## Baiazid (5 July 2011)

I use MT4 because I develop indicators and strategies very easy with this program.
This is the only reason.

For technical analysis is not so good in my opinion.


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## tothemax6 (5 July 2011)

One option is to go with a dedicated forex broker (like OANDA), since they are forex-focused and you can generally trade with lower spreads. They should also allow you to use AUD as your base currency. Generally they tend to provide mobile phone apps to trade on as well (I know OANDA does). And of course most importantly - they provide practice accounts so you can play before you put money down.

Of course what sort of broker you choose will depend on what method you intend to trade by. If you want to join the 'read into the squiggles' department (technical analysis), you will probably want a more comprehensive service than say, if you were buying longer term based on fundamentals. 

Note that 'buy and hold' and 'speculative' are not really appropriate ideas for forex. It is _all_ speculative, it all involves buying and holding for some period. The length of time you hold a position for will depend on a multitude of things.


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## Baiazid (5 July 2011)

Agree with Oanda. They are okay, easy to use.


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## Forex Dan (23 July 2011)

Leave hold & pray with the girls next door. Forex is different ball game. 
What FX trades in 1 day, Wall St trades in 1 month 


_Will the IB system be suitable for me to trade on? (Anybody know how I can change base currency to AUD?)_
Go for 4 decimal broker man, Hy Markets, ACFX or someone similar.

_is MetaTrader offered by IB? Can somebody please give a light explanation of why it's so good?_
Not sure if offered by IB. But Metatrader is awesome platform to use.

_I only have a few K's to play around with, so should I be trading speculatively or taking more of a "buy and hold" position? (Less than 20K)_
lol, save it and open up a demo account first. Practice for a few weeks/months then open an standard account with $750 ($1 pip value with 8 lots =$8 pips) and trade till you hit next account level (just an example), but never rush in to start FX


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## tayser (23 July 2011)

tothemax6 said:


> They should also allow you to use AUD as your base currency.




Not to be picky - but you're talking about an Account currency denomination.  "Base currency" is the currency on the left hand side of the pair and the "Quote" currency is on the right hand side of the pair.

If you hold a broker account in AUD, it simply means P&L will be in AUD.  You must have sufficient AUD equivalent in your account to open an order on the base currency of the pair you are trading.

Account: AUD

Pair: EUR/USD (EUR is the base, USD is the quote)

Order: BUY 100,000 EUR/USD

current EUR/AUD rate: 1.3229

You need to have at least 132,390 AUD (inclusive your margin) to open that position

_______________

Anyhow - on topic, if your new the only piece of advice I will give is to read this: http://www.moneybags.com.au/default.asp?d=0&t=1&id=5016&c=0&a=74  Explains the mechanics very well.


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## G-Zilla (25 July 2011)

You should be able to create a new account in a base currency AUD then move your cash over to it.

IB can be confusing at first as profit is in the base currency you trade in.

e.g
I trade GPYJPY and the profits are in Yen
I trade AUDUSD and the profits are in USD
on the other hand I also trade Aussie shares and the profits are in AUD.

You will need to remember to convert your balance back to base currency, not so much an issue but you do see your balance jump up and down until you do.


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## Wysiwyg (17 August 2011)

ivanyo said:


> Hello friends,
> 
> I'm new to FOREX trading.
> 
> ...




First of all, my experience back-testing forex strategies and expert advisors over several years has turned up zilch. It is a big suck if you believe the hype and want to waste time. Secondly, actually discretionary trading FX has never been consistently profitable enough for me to continue.

Don't believe it is easy and glamorous though for some the best lessons are through  experience. Fore warned.


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## sinner (17 August 2011)

Wysiwyg said:


> First of all, my experience back-testing forex strategies and expert advisors over several years has turned up zilch. It is a big suck if you believe the hype and want to waste time. Secondly, actually discretionary trading FX has never been consistently profitable enough for me to continue.
> 
> Don't believe it is easy and glamorous though for some the best lessons are through  experience. Fore warned.




 I think if you want to listen to Wysiwyg first you should go and read all his posts in the AUD/USD thread.

A good site with plenty of free, backtested forex strategies which *work* can be found at www.myforexdot.org.uk

I managed to develop a profitable short term trend following model for EURUSD in a single (last) night Wysiwyg, and even posted the backtest results to ASF because I was curious about some aspects of the system. Zilch? You are just lazy.


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## sinner (17 August 2011)

I decided that to counteract Wysiwygs post I would actually release some code for free.

I've coded up the "Strange Currencies" trading system from www.myforexdot.org.uk for MT4.

Here it is, you can test it on any of the majors which have a corresponding CME Globex futures contract set (i.e. EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD, NZDUSD) on the daily charts for yourselves all the way back from 1999.

This version is the original which uses time based exits with no hard stoploss, but I've coded a version with volatility based position sizing/stoploss as well (not included), it performs even better.

View attachment StrangeEA.mq4


```
//+------------------------------------------------------------------+

//|                                                    StrangeEA.mq4 |

//|                           Copyright  © 2011, MyForexDot by sinner |

//|                                     http://www.myforexdot.org.uk |

//+------------------------------------------------------------------+

#property copyright "Copyright  © 2011, MyForexDot but coded in mt4 by sinner"

#property link      "http://www.myforexdot.org.uk"

datetime timebar=0;

double lots=0.00;

//+------------------------------------------------------------------+

//| expert initialization function                                   |

//+------------------------------------------------------------------+

int init()

  {

//----

   

//----

   return(0);

  }

//+------------------------------------------------------------------+

//| expert deinitialization function                                 |

//+------------------------------------------------------------------+

int deinit()

  {

//----

   

//----

   return(0);

  }

//+------------------------------------------------------------------+

//| expert start function                                            |

//+------------------------------------------------------------------+

int start()

  {

//----

   if(timebar==Time[0]) return(0);

//----

   

   double highclose=Close[iHighest(NULL,0,MODE_CLOSE,120,1)];

   double lowclose=Close[iLowest(NULL,0,MODE_CLOSE,120,1)];

   

   for(int i=0;i<OrdersTotal();i++)

   {

      if(OrderSelect(i,SELECT_BY_POS,MODE_TRADES)==false) break;

      if(OrderSymbol()==Symbol() && (OrderMagicNumber() == 1 || OrderMagicNumber() == 2))

      {

            

            if(OrderType()==OP_BUY) {

               if(highclose==Close[12]) { 

                  OrderClose(OrderTicket(),OrderLots(),Bid,3,Green);

               }

            }

            if(OrderType()==OP_SELL) {

               if(lowclose==Close[12]) { 

                  OrderClose(OrderTicket(),OrderLots(),Ask,3,Red);

               }

            }

      }

   }

   

   if(OrdersTotal() < 1) {

      if(Close[1]==highclose) {

         OrderSend(Symbol(),OP_BUY,0.1,Ask,3,0,0,"Buy",1,0,Green);

      }

      if(Close[1]==lowclose) {

         OrderSend(Symbol(),OP_SELL,0.1,Bid,3,0,0,"Sell",2,0,Red);

      }

   }

   

   

   

   

   timebar=Time[0];

   return(0);

  }

//+------------------------------------------------------------------+
```


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## Wysiwyg (17 August 2011)

sinner said:


> I managed to develop a profitable short term trend following model for EURUSD in a single (last) night Wysiwyg, and even posted the backtest results to ASF because I was curious about some aspects of the system. Zilch? You are just lazy.



Two weeks ago (05 - 09 Aug.) I made in four days what one of those MT4 strategy testers made in over four years. 

10k to 15k in four years and five months?? Not fooling me with any strategy test results nor EA for free. Been around long enough to know better.


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## sinner (17 August 2011)

Wysiwyg said:


> Two weeks ago (05 - 09 Aug.) I made in four days what one of those MT4 strategy testers made in over four years.
> 
> 10k to 15k in four years and five months?? Not fooling me with any strategy test results nor EA for free. Been around long enough to know better.




No idea what you're talking about, you must be misreading. The systems I posted in the other thread (the only one discussed over a 4 year timeframe) posted a total net profit of 48.4k and 9.8k respectively from 10k starting balances. Do I need to work those numbers out on an annualised basis for you?

The system in question posted above is an unleveraged *raw edge* try adding position sizing and see what happens


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## Dracuu (17 August 2011)

sinner said:


> The system in question posted above is an unleveraged *raw edge* try adding position sizing and see what happens




I must admit that although simple in design the system does show potential. I have just played around with it by adding some dynamic stops and variable position sizing and the results look interesting and worth further analysis. Thanks for sharing.


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## sinner (17 August 2011)

Dracuu said:


> I must admit that although simple in design the system does show potential. I have just played around with it by adding some dynamic stops and variable position sizing and the results look interesting and worth further analysis. Thanks for sharing.




It's not mine, the author of the website in question designed it. I really admire its robust simplicity, tested with some tweaks over the EURUSD daily from 1990 does not disappoint that impression. The author points out trend following strategies seem to work where liquidity is highest. But I note that particular edge seems to work in raw form across most USD forex pairs. 

The code above uses only one set of parameters (the most profitable) which the author has already backtested, but all of the parameters tested showed an edge.

It's just to give you an idea that edges exist, plenty of other edges revolving around 3 concepts trend following, momentum and support/resistance trading are posted on the same site. If someone can't figure it out from there then they probably have no business attempting forex trading (or acting like they know what the deal is when newbies ask for help).

Wysiwyg has decided forex is unprofitable and acts like he knows, but not so long ago he was posting his trading opinion for AUDUSD in the thread like he knew then too.


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## Wysiwyg (17 August 2011)

sinner said:


> I decided that to counteract Wysiwygs post I would actually release some code for free.
> 
> I've coded up the "Strange Currencies" trading system from www.myforexdot.org.uk for MT4.
> 
> ...



I decided to back-test and lo n behold it showed a negative return over 2 (two) years. I don't want to know about tweaking or different dates or adding this or that. 

Simply not interested.


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## sinner (17 August 2011)

Wysiwyg said:


> I decided to back-test and lo n behold it showed a negative return over 2 (two) years. I don't want to know about tweaking or different dates or adding this or that.
> 
> Simply not interested.




LOL you quote my post but didn't read it, this system is for daily charts tweaks not required! Again 

Nobody cares if you are interested, the stuff in question was posted as a counter to your claims not for your benefit! Your forex tantrum including faulty backtest just serves to confuse those who are learning.


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## Wysiwyg (17 August 2011)

sinner said:


> LOL you quote my post but didn't read it, this system is for daily charts tweaks not required! Again
> 
> Nobody cares if you are interested, the stuff in question was posted as a counter to your claims not for your benefit! Your forex tantrum including faulty backtest just serves to confuse those who are learning.



Wake up dreamer. Experienced traders can see through your B.S. 'cause they been there and done that. This is a daily over the last 2 (two) years which threw an excruciatingly painfull 8 (eight) trades in 2 years for a negative result.

You're dreaming.  & Goodnight .....


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## sinner (17 August 2011)

Wysiwyg said:


> Wake up dreamer. Experienced traders can see through your B.S. 'cause they been there and done that. This is a daily over the last 2 (two) years which threw an excruciatingly painfull 8 (eight) trades in 2 years for a negative result.
> 
> You're dreaming.  & Goodnight .....




I am really having a hard time understanding Wysiwyg. What B.S could I possibly be spouting? All I've done is dispute your claim that there are no edges in forex and provided code for a freely availably algorithm designed by someone else, which anyone can download and test. What do I stand to gain from aside from your vehemence?

Since I've seen you post IGMarkets screenshots recently, I'll assume you are actually doing your MT4 backtesting on crappy demo data from a broker which (like IG) prints weekend bars on daily charts. 

On my *live, ECN* account with Pepperstone, the result for daily over the same timeframe you specified is a net profit of $854, or 8.5% (a respectable amount considering no position sizing is implemented!). I challenge anyone who has access to live data to verify, very easy to do, the author of the strategy has his own backtest results posted across all parameters and currency majors for 10 years worth of trades!

Good luck to you mate, no surprise you found forex unprofitable! 

Advise all who are reading and interested to do their own research on forex rather than taking this guys word for it.


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## Dracuu (17 August 2011)

I get $1036 on Alpari Live and $1012 on Oanda Live over the same period. Trades per annum is low but it is consistent over the 20 years that I ran it for and across multiple pairs. It is just a raw example but there is merit in the strategy and worth experimenting with.

I think the point is that finding a profitable trading strategy and then coding it into an EA is definetley possible. 
Every single commercial EA available that I know of loses money in the long run so it would be easy to have the impression that they are a waste of time. I have created and tested litterally hundreds of systems trying every idea I could possibly think of over the years and I have ended up with just 3 robust systems that I have proven to work consistently over the long term over multiple pairs. Every other system has failed. It's very hard but it is possible.


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## Daniya FBS (12 September 2011)

ivanyo said:


> Hello friends,
> 
> I'm new to FOREX trading. I have an account with IB which I opened to trade shares/stocks in. However, more recently I've been trading forex blindly because the ASX opens after I leave my house for uni and closes before I get home
> 
> As a result, I'd started trading forex a little bit. At the moment My base currency is in USD (which is really annoying), but I hold a few k's worth of AUD because intuition tells me AUD is still on the rise. (may be wrong lol)




Hello! Welcome for the world of forex, this is a really interesting thing. Sometime you feel as if you are the artist as you have to have a good imagination, mathemathis skills and predict the future 



ivanyo said:


> Anybody know how I can change base currency to AUD?




You do not have to worry about changing the currency as broker will do if for you! ;-) you can open account in EUR or USD and deposit with any currency you want as it will be automatically converted.


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## AubreyThompson (12 October 2011)

tothemax6 said:


> One option is to go with a dedicated forex broker (like OANDA), since they are forex-focused and you can generally trade with lower spreads. They should also allow you to use AUD as your base currency.




I am also new to forex, and never knew about Oanda. But now I am using it for currency converter and other stuff, which I find very easy to use.


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## forexmaster (15 October 2011)

i have been trading forex for a very long time and don't see any reason why i shouldn't use the mt4 platform...for me i think if you have a good broker with that platform you should be good to go. all the best man.


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## kimleow (20 October 2011)

checkout babypips.com and I would suggest using an Australian based broker. Your funds will be in AUD, transfers easier as its aussie bank to aussie bank, and if you have a problem its easier to complain to relevant authorities. I currently have live accounts with GMFX and axi trader.



ivanyo said:


> Hello friends,
> 
> I'm new to FOREX trading. I have an account with IB which I opened to trade shares/stocks in. However, more recently I've been trading forex blindly because the ASX opens after I leave my house for uni and closes before I get home
> 
> ...


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## billv (29 November 2011)

Hi, I'm also new to forex.
I have signed up with GFT so that I can watch their webminars) (have put $3K into my trading account.
Are GFT good for forex?
I'm very keen to learn, do you have any suggestions on what to do next and are there any good websites I can learn from?
Many thanks in advance


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## builder2818 (29 November 2011)

billv said:


> Hi, I'm also new to forex.
> I have signed up with GFT so that I can watch their webminars) (have put $3K into my trading account.
> Are GFT good for forex?
> I'm very keen to learn, do you have any suggestions on what to do next and are there any good websites I can learn from?
> Many thanks in advance




If you wanna learn about trading FX, check out Chris Lori.....if you're looking for a "system" of "when to get in and when to get out" you will never find one.


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## billv (30 November 2011)

builder2818 said:


> If you wanna learn about trading FX, check out Chris Lori.....if you're looking for a "system" of "when to get in and when to get out" you will never find one.




Thanks, I'm not looking for a system.
I want to built up my knowledge in preparation for proper training which will take place in December. (similar course to what Chris Lori is offering)
I did find some useful video's on Utube
cheers


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## Trex123 (10 January 2012)

billv said:


> Thanks, I'm not looking for a system.
> I want to built up my knowledge in preparation for proper training which will take place in December. (similar course to what Chris Lori is offering)
> I did find some useful video's on Utube
> cheers




can you share the videos you found?


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## billv (11 January 2012)

Trex123 said:


> can you share the videos you found?




There are thousands of videos on Utube uploaded by brokers and traders

Go to this page and on the right hand side there are links for more videos
http://www.youtube.com/watch?v=IZDxC3S7VgY

Alternatively you can search Utube for a particular trainer

eg: 
nial fuller
top dog trading
www.learntotradethemarket.com
www.yourtradingcoach.com

or search for an area of interest
eg: 
learn to trade forex
how to place my first forex trade

Visiting forums such as the forexfactory.com or trade2win.com and reading the various threads will increase your knowledge but just like anything, to be succesful you need to put the time in and to practice practice practice
I hope this helps


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