TRADE FOREX PROFITABLY
Trading Session
Technical Analysis vs. Buy and Hold: What yields more?
Jan 28th
Either Way, Timing More >Regarding the role of the technical analysis in trading, before 1980s most researchers criticised it and concluded that is not able to produce as good results as the buy-hold strategy (Alexander, 1961; Jensen and Bennington, 1970; Fama, 1970). However, later studies have proven the opposite (Pruitt and White 1988, Bessembinder and Chan 1995). Trading rules/systems (using technical indicators) based on past data could create excess returns and prove that usefulness of technical analysis. Such conclusions had Brock, Lakonishok and Lebaron (1992), later Bessembinder and Chan (1995, 1998), Lo, Mamaysky and Wang (2000) and many others — Nikitas Goumatianos
TrendLine Trader?
Jan 14th
Experience“If you are not a trendline trader you should be. By trading breakouts you can drastically decrease your screen time while taking trades that offer the best risk/reward ratios available. You don’t need a high success rate like other short term trading strategies. Even if you only make 4/10 successful trades a month, you’ll still be making a decent income. If you can draw a straight line you can make pips! www.idraw-trading.com ” – Will Schaarrand
Listen to an experienced that had his first success with only trendlines and fibonacci retracement/extension ratios back in 2009. Why did trendline trading make More >
Italy may fall short on Bond purchases: Default?
Nov 27th
Eurozone distress is far from over as media continues to uncover more concerns that will only escalate fear. Recent headlines display that ECB has slowed their purchuses of Italy’s Bonds which could lead to a possible default.
Italy’s new government will have to sell more than EURO 30 billion of new bonds by the end of January to refinance its debts. Analysts say there is no guarantee that investors will buy all of those bonds, which could force Italy to default.
However when you look at the numbers, there shouldn’t any concern of a default in January as the ECB is More >
PIPINVESTMENT FOREX UPDATE: Back on Track
Oct 23rd
In the last 6 months
- 5/6 profitable trading months
- Largest loss was due to iDRAW 1.5 (Beta Automation – Failed)
- Largest gain was from iDRAW 1.4 ( Semi- Automated Break out Strategy)
- Over 4700 pips
- Tested 3 more FX Brokers. Alpari-US 3/5 stars . VantageFX 4/5 stars. PepperStone 4/5 stars.
- Our Best Decisions
- Development of Discipline Trader EA for automated risk management
- Added ScalpMode to iDRAW1.4 for news trading and tight consolidating market conditions
- Moved to Asia for the best trading hours possible
Risk Profile Explained
Aug 31st
What Does Draw-down Mean? The peak-to-trough decline during a specific record period of an investment. A drawdown is usually quoted as the percentage between the peak and the trough(link). For example, you invest $1000 into stocks (Buy and Hold) and during a 1 year period your investment’s value ( equity) reached $650. This would reflect a 35% draw-down. Peak $1000 ( assuming your investment never reached a profit) – $650 = $350 , 350/1000 = 0.35.
Now that we have established what draw down is, we would like to build our Risk profile based off draw-down percentages. If an investment experienced More >
Dodd-Frank Act prohibits Gold and Silver FX Trading
Jun 23rd
After July 15, 2011 Forex brokers in the United States will no longer offer spot gold and silver transactions to their US residents. Dodd-Frank Act imposes
- 50:1 Leverage on most FX pairs
- Trading limitations (No Hedging, FIFO rule)
- 20:1 Leverage on FX Exotics
- No Spot Gold + Silver
- No Foreign Banks or Off Shore FX Brokers
Dukascopy Sends Clients to US Soils.
Jun 15th
After July 16th 2011, US clients can continue to use Dukascopy’s Trading Systems (software – Jforex) with Dukascopy’s US partner. Unfortunately, the US partner has not been mentioned quite just yet but, I will update this post once I have the details. We’ll continue to have access to the feature enriched Jforex platform. However, we will be limited by the US regulations such as obeying by the FIFO ( first in, first out), no hedging, and lower leverage rules. We’re basically leasing the software from Dukascopy and being kicked out their front door unless you are an Eligible contract participant (millionaire).
FairTradingTech More >
Alpari Account Closed
Jun 4th
Alpari US has a floating spread on EURUSD around 1.5 pip, which is excellent and it is about half a pip better than STFX. Zero Commission with a regulated broker is also quite nice, but when considering a day trading strategy I really need ECN instant execution. Through the past month I’ve experienced enough requotes to find it annoying but not enough for me to close my account. I doubled my deposit on June 1st as I had plans to use Alpari for the long haul.
However, I almost forgot about an ECN FX broker less than a 40 minute drive More >
Futures: Top 10 reasons to trade Futures
May 11th
An article by Craig Ross from Apex Futures. Live discussion here.
1. Efficient Market
Emini S&P 500 (ES) futures have a tight bid-ask spread of typically 1 tick or $12.50 per contract. This spread should be considered your cost of entry (not unlike commissions) to enter and exit the market. The wider the spread, the more the trade has to move in your favor just for you to get to break-even.
Since Forex firms “create” the market and therefore, the bid-ask spread, they can widen it to whatever they see fit. Even when Forex firms advertise a fixed spread, they typically reserve More >
Can a Crude Oil Margin hike control demand?
May 10th
CME Group Inc, will increase crude oil margins another 25% at the closing of the bell making hedgers and speculators fill in the gap to cover their overnight positions. For overnight margins, crude will be $8,438 per contract from $6,750. History has a way of repeating itself therefore, we can expect a temporary sell off later on today as traders readjust their positions to compensate for the increased margin. Silver and Gold took a huge drop after margins were increased just a week ago so we are expecting the same to happen to crude oil prices. Currently June Future contracts More >
Unstoppable Rallies
Apr 20th
Gold above $1505
Crude Oil June Contracts above $111.20. A $2 rally since US Open.
EURUSD makes new Highs as Interest Rate Hikes are in near term to control inflationary pressure. Currently trading above 1.4500 with a high of 1.4547
Silver continues to push new highs in each trading session. Currently trading above $45.25
The shocking news… Standard + Poor’s has concerns for US Debt. Possible downgrading in the future. It’s not shocking news to most investors as the dollar continues to slide off the cliff and commodities continue to soar. The US government has held a AAA rating for the More >
