When trading in FX, scouting for just the right currency pair can be time consuming. Of course, you’re looking for the pair on the verge of producing the next lucrative trade. Many times it’s hard to decide which pair is the one with the most momentum. And even if you do invest all your time […]
One of the best trades of my life actually made an extra mad extra due to the appreciation of the same currency. I sold USD/JPY several years ago when it traded at 118.75. I knew there was an important G7 meeting over the weekend, so I placed an anticipatory sell stop on the expectation of […]
Stochastic oscillators can be a valuable tool for mechanical forex traders. Yet, traders often use stochastics together with numerous unrelated indicators, and the results are generally ho-hum. Like some other traders, I’ve found that using a single stochastic oscillator usually doesn’t produce consistent winners. One stochastic by itself doesn’t seem to yield eye-popping gains. The […]
Grid strategies are common alternatives for traders that do not have an opinion on market direction. They are almost exclusively associated with forex trading. I’ve never seen grid trades in any other context. The goal of a grid strategy is to outline a ranging or trending bias without committing to the underlying direction. That may […]
Much ink has been devoted to pinpointing the causes of mechanical trading systems failures, especially after the fact. Although it may seem oxymoronic (or, to some traders, simply moronic), the main reason why these trading systems fail is because they rely too much on the hands-free, fire-and-forget nature of mechanical trading. Algorithms themselves lack the […]
A Martingale forex strategy offers a risky way for traders to bet that that long-term statistics will revert to their means. Forex traders use Martingale cost-averaging strategies to average-down in losing trades. These strategies are risky and long-run benefits are non-existant. Here’s why Martingale strategies are attractive to forex traders: First, under ideal conditions and […]
What can we say about trend line? Is there any trader in the world that hasn’t used them? I seriously doubt it. We’ve been told time and again, “Trust the trend line. The trend line is our friend.” The visual appeal of a trend line is just irresistible… trimming the trend and showing you the […]
Day trading is challenging. Don’t let anyone tell you otherwise. The odds are stacked against you and the risks of loss seemingly lurks at every turn. That’s why it’s important to understand some ground rules about day trading. The rules are there so that you can safely swim with the sharks. Range is Key for […]
Repainting indicators are one of the most common problems facing would-be EA designers. Sometimes it seems like an indicator really has its thumb on the market. It perfectly predicts when the market will go up or down. Making an EA run off of the indicator is a no-brainer. If this sounds familiar, then you need […]
When you click on the File dialog at the top of MetaTrader, one of the top options is “Open Offline.” Most people have no idea what that option does or why it is useful. Offline charts offer the ability to display custom time frames, although doing so requires programming a custom script. Scripts sort through […]
