Trading textbooks are filled with methods and techniques to reduce the tension you feel when trading. Suggestions range from the most common, i.e. starting with small amounts and low leverage to instilling a disciplined strategy. If you’ve just started your trading adventure then this is exactly what you need. But perhaps you’ve got a different […]

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Lately, I’ve been asked fairly often why I don’t write more for the novice trader. Well, good news! If you are, indeed, a novice trader then this trading strategy is right up your alley. But even if you’re not a newbie, you might still find this tip useful. This rather simple and straightforward strategy doesn’t […]

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Your forex backtests are absolutely worthless if you do not test the statistical entry efficiency and exit efficiency of the strategy. Everyone that runs a backtest inevitably reports the dollars earned as the outcome. Other factors exist like the average win to loss, the profit factor and the Sharpe ratio, but they do not tell […]

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As with virtually any trading scenario, we must first determine the direction that we need to trade the pair for the greatest likelihood of success. By looking at the historical 4 hour chart of the GBPUSD below, there are several reasons we know that we want to go long (buy) the pair.  Price action is […]

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On the first Friday of each month the US Labor Department issues its Nonfarm Payrolls report. Among other labor-related data, that report provides the numbers of new US-based private sector jobs. The NFP, as it’s also sometimes called, is one of the few economic indicators that day traders and investors keenly watch. Usually, when the […]

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The single most evident quality of range bound is, quite simply, falling volatility or Standard Deviation. As Standard Deviation falls, the pair has smaller fluctuations and therefore is “bound” within a range. Likewise, when Standard Deviation is low we are stuck in a range. If we can time Standard Deviation (and we can), we can […]

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You had a great strategy, it was working well and it was making you money. The problem? Suddenly, market conditions have changed and your strategy no longer works. Markets are too volatile, too choppy. It’s as though the only thing your strategy can produce is a screen full of red. It seems like your strategy […]

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