Forex Strategies

[happytrader]

Here is one of my favourite forex sites and trader. www.raghee.com

Cheers
Happytrader

 

[CanOz]

Are these waves tradeable? I'm trying to use support/resistance and fibb to pick an entry point? Is this an acceptable means of picking an entry into a forex trade?

Anyone care to share thier experience here?

Cheers,

 

[Kauri]

Hi cannaussieuck,
I've been trading the aussie long based on my weekly chart (my dubious count ), so my bias has been mostly long. Have found for me the best timeframes to time entries in FX in general for me is 4hourly and daily, too many false starts on the shorter timeframes, for the way I trade anyway. The bouncing volatility associated with US announcements is murder!!!! Also found that a stop set a few points beyond the logical stop point based on fibs/support-resistance is worthwhile, amazing how many times you can be taken out of an otherwise profitable trade by less than 3 pips or so.. stop running by M/M's or professional traders maybe???
Cheers
Kauri

 

[Monkey Business]

I appreciate what you all have said about dummy accounts. Its a well worn arguement (for both sides). As I paper traded before making my first stock trade, I have commenced paper trading forex.

I am using proper money management (</= 2% of capital at risk per trade) and will endeavour to keep it realistic. I have also begun posting trades live (or as close to live as reality permits) in my ASF journal, so you can follow and post abuse there.

I think the ability to virtual trade is essential for novices. I didnt know anything about Forex and found a strategy through some friends. I only decided to try it becuase I could virtual trade. I did that for a month and then went live. In one month live trading I was up overall 101%. I got out for a while and am now back in and in last 3 weeks am up over 40%. I'm using safer strategies now though as I learned a bit more about money and risk management and best of all I learned to know my worst case scenario.

 

[macca]

Hi MB,

Wow, those returns are amazing, do you trade right through the night or on a daily chart ?

 

[wayneL]

Hi MB,

Wow, those returns are amazing, do you trade right through the night or on a daily chart ?

Beware!

Not to disparage Monkey Business at all, but he needs to quantify those returns. i.e. 40% of what? Moreover, without the trading style and money management parameters, it tells us nothing.

I can walk in to a casino, plonk on black for one spin of the wheel and walk out with 100% return in 30 seconds if it goes my way. But one could say my position sizing and money management is diabolical.

Not meant as criticism as I say, but more information is needed.

 

[Monkey Business]

Beware!

Not to disparage Monkey Business at all, but he needs to quantify those returns. i.e. 40% of what? Moreover, without the trading style and money management parameters, it tells us nothing.

I can walk in to a casino, plonk on black for one spin of the wheel and walk out with 100% return in 30 seconds if it goes my way. But one could say my position sizing and money management is diabolical.

Not meant as criticism as I say, but more information is needed.

Happy to show you excerpts from my spreadsheets. The percentages are of the account balance at open of each position: I have 2 accounts
Account A
DATE OPENED DATE CLOSED BALANCE % GAIN
21/03/2007 21/03/2007 0.96%
22/03/2007 22/03/2007 1.86%
22/03/2007 22/03/2007 1.22%
22/03/2007 26/03/2007 1.68%
27/03/2007 27/03/2007 2.62%
28/03/2007 30/03/2007 3.11%
30/03/2007 3/04/2007 6.29%
3/04/2007 5/04/2007 5.47%
5/04/2007 6/04/2007 2.09%
6/04/2007 9/04/2007 3.05%
9/04/2007 12/04/2007 8.08%
12/04/2007 12/04/2007 0.89%
12/04/2007 Total 37.32%

Account B
DATE OPENED DATE CLOSED BALANCE % GAIN
22/03/2007 27/03/2007 1.65%
27/03/2007 28/03/2007 1.68%
28/03/2007 30/03/2007 3.89%
30/03/2007 3/04/2007 4.35%
3/04/2007 5/04/2007 1.98%
5/04/2007 6/04/2007 2.44%
6/04/2007 9/04/2007 3.05%
9/04/2007 12/04/2007 9.01%
12/04/2007 Total 28.06%

The following is my original account with a different broker but I do not trade with them now as their swap rates changed and it was no longer profitable to use the method I prefer.

Dec Jan Closed account: Traded 4 major pairs 20% margin way too risky for me now.

DATE OPENED START PROFIT DATE CLOSED BALANCE % GAIN
20/12/2006 $1,200.00 $54.21 21/12/2006 $1,254.21 4.52%
21/12/2006 $1,254.21 $187.92 2/01/2007 $1,442.13 14.98%
4/01/2007 $1,442.13 $1,442.13 0.00%
8/01/2007 $2,200.00 add funds $3,642.13
4/01/2007 $3,642.13 $276.07 9/01/2007 $3,918.20 7.58%
9/01/2007 $3,918.20 $198.95 9/01/2007 $4,117.15 5.08%
9/01/2007 $4,117.15 $445.29 11/01/2007 $4,562.44 10.82%
11/01/2007 $4,562.44 $623.47 11/01/2007 $5,185.91 13.67%
11/01/2007 $5,185.91 $285.11 12/01/2007 $5,471.02 5.50%
15/01/2007 $5,471.02 $242.35 15/01/2007 $5,713.37 4.43%
15/01/2007 $5,713.13 $191.50 17/01/2007 $5,904.63 3.35%
17/01/2007 $5,904.63 $248.94 18/01/2007 $6,153.57 4.22%
18/01/2007 $6,153.57 $810.65 19/1/107 $6,964.22 13.17%
19/01/2007 $6,964.22 $304.10 22/1/07 $7,268.32 4.37%
22/1/2007 $7,268.32 $342.96 22/1/07 $7,611.28 4.72%
22/1/2007 $7,611.28 $350.65 23/1/2007 $7,961.93 4.61%
23/1/2007 Total 101.00%

These are figures from my live accounts.
I currently trade EUR/USD and UDS/CHF with 400:1 leverage at 15% margin. I am waiting for the GBP/USD to reverse and then I may add it to my trades but I will probably lower my margin if I do that.
My trading is my business and not gambling by any means. I think it's important to take emotion out of the trades to make a clear and informed decision. I also have a pre determined exit in line with my level of comfort for losses as we all know that can happen.
I hope this satisfies your curiosity and I do think it is important to back up statements with fact.
Happy Trading all
BTW when in a casino I prefer red 36 but thats another story:

 

[wayneL]

Monkey Business...

Not one loss?

What sort of trading system are you using?

 

[nizar]

Monkey business///

Not one loss..??

Hmmm....

 

[Monkey Business]

Monkey business///

Not one loss..??

Hmmm....

No I didnt say I didnt have any losses.
I pulled out my capital and some profit before the Feb meltdown and traded all 4 pairs in a new account and lost my my profit. I think alot of traders got burned in February.
But I got back in again in March and traded more wisely i.e. lower margin and safer pairs, using the same system and you can see the results. If I had been trading as I am now I think I would have been able to ride out February hence the change of strategy within the same system.
We live and learn ( and when we learn we can make money )
It works for me anyway. Each to their own.

 

[nizar]

Hi all, Iv been looking at getting into a bit of Forex.

Iv heard that OANDA is good for the same reason, you dont have to buy in lots, so you can more strictly adhere to position sizing that way.

Does anybody here use Interbank FX to trade?
I heard theyve got this Expert Advisor system where they can backtest strategies.

Apparently their demo has live prices and charts and backtesting facility so that might be worth a go.

In terms of trading, support/resistance/trendlines is what iv heard is the best to look at, and maybe short-term moving averages to help with entries and trailing stops?

What sort of timeframes do you guys trade?

Is it possible to trade forex with a longterm trending system? ie. trade off weekly charts ie. end of week, put your orders in for sydney open on monday? AUD/USD would have been one mother of a longterm trend since 74c in september last year

And also, does any1 here use any sort of leverage?
If so how much (i heard 50:1 upto 400:1 is pretty commonplace in Forex) and how much interest do you pay?

Thanks.

 

[Kauri]

Interbank FX platform is the MetaTrader4 platform... has all that you mentioned... you can get it here without linking up to brokers etc, set up a non-expiring demo account ... and learn to stay awake 24Hrs a day .

 

[wayneL]

Is it possible to trade forex with a longterm trending system? ie. trade off weekly charts ie. end of week, put your orders in for sydney open on monday? AUD/USD would have been one mother of a longterm trend since 74c in september last year

Of course it's possible, but deep pockets required. Calculate the average daily range, in dollars of even a 1 lot, and you will see balls of steel are required unless WELL capitalized.

Average daily of the Euro futures contract (similar in size to 1 lot on forex) is in excess of AUD1000. Give that a wide trend following stop and thats a lot of moola for a small/medium account.

Of course if you can trade smaller size to conform to your normal risk parameters, fine.

However, on a trend trading basis, expectancy is better on stocks IMHO. That's why the vast majority trade forex intraday.

 

[nizar]

Of course it's possible, but deep pockets required. Calculate the average daily range, in dollars of even a 1 lot, and you will see balls of steel are required unless WELL capitalized.

Average daily of the Euro futures contract (similar in size to 1 lot on forex) is in excess of AUD1000. Give that a wide trend following stop and thats a lot of moola for a small/medium account.

Of course if you can trade smaller size to conform to your normal risk parameters, fine.

However, on a trend trading basis, expectancy is better on stocks IMHO. That's why the vast majority trade forex intraday.

Thanks for your thoughts Wayne.
I really appreciate it.

So big swings in forex then. Yeh well im far from being well capitalised lol.

How about commodities?
Longterm trend following would they work well with commodities?

 

[nizar]

Interbank FX platform is the MetaTrader4 platform... has all that you mentioned... you can get it here without linking up to brokers etc, set up a non-expiring demo account ... and learn to stay awake 24Hrs a day .

Seems to me like the best way to learn.
Thanks Kauri.

 

[nizar]

Interbank FX platform is the MetaTrader4 platform... has all that you mentioned... you can get it here without linking up to brokers etc, set up a non-expiring demo account ... and learn to stay awake 24Hrs a day .

Kauri.
I downloaded MetaTrader4, but the data i have is very delayed.
AUD/USD is .7521! lol

 

[>Apocalypto<]

Nizar,

I use a broker called xpress trade on forex you can also get a Forex mini practice account with 500 0to 50 000$ practice dollars great platform with free real time charts and news. As close as the real thing.

Also has trade ideas on the pair as well as lot of other information they let you practice with 25 pairs real time chat covers tick by tick all the way to monthly.

I have my GF doing it also use it to determine the weekly monthly trend which IG charts dont do next step i will open a mini account with them i am very impressed.

see link buddy:
http://www.xpresstrade.com/forex_demo_account.php

 

[lesm]

Kauri.
I downloaded MetaTrader4, but the data i have is very delayed.
AUD/USD is .7521! lol

nizar,

If you are seeing delayed quotes using MT4 trying using a different provider whose demo account provides access to live data rather than delayed data.

Cheers.

 

[Kauri]

Kauri.
I downloaded MetaTrader4, but the data i have is very delayed.
AUD/USD is .7521! lol

nizar...
this is the one I use and it is up to date/time... I actually have it downloading automatically from here into my main charting programme...

 

[doctorj]

Which provider do you use Kauri?

Here's a package of config files to let you connect to different MT4 servers without having to reinstall. Just extract them to your \MetaTrader 4\config folder.

Download from here: http://www.sharebigfile.com/file/185505/config-zip.html
Let me know if the above doesn't work and I'll find somewhere else to host.