Automated Forex Trading

Automated Forex Trading

Automated Forex Trading: The best way to make money with Forex sell? Automated Forex trading can be an attractive option if you want to make dollar industry and trade Forex profitably, but have no time or inclination to learn the trade of a program manual. With forex trading software automated program, also known as a forex robot, a personal computer for you automatically. Program some prices are linked to the Forex market, you must pay the difference between cost of supply and demand, but an automated method of trading currencies is likely to be much more consistent as a rookie first, so But that, it can be very useful. And you do not have to spend hours each day in search of maps and analysis of foreign expenditures on the Internet. But it is really that easy? What are the dangers of Forex automated

buying and selling? One is very important to understand that all the speculative buying and selling is dangerous, whether or not stocks, currencies, commodities or anything else. Nobody tends to make each transaction in dollars, and contains the most successful traders. So there is a threat automated procurement and sales program will make losses on their behalf. However, it is true that the benefits of a strong currency robot quality are probably better than yours in the middle of the long sentence, even if the purchase and sale of employment is not finished as well. Second, we must know that for automated trading to run with precision, which should be running the clock. This indicates if the laptop or robot trading is the buying and selling unexpectedly loses power, the robot could not exit a trade in your excess losses, resulting in excessive losses. However, there is another option. A Virtual Private Server (VPS) can be signed. A VPS is a laptop or computer that can be connected to a point away from home or work computer through the World Wide Web. If you use a VPS to host your software program automated forex trading, you will not have to worry about the loss of connection to power and World Wide Web, and that would be guaranteed by the VPS host. There are other risks associated with automated methods of currency trading, which is blind to the actual negotiation technique used the technique. You have to trust the robot to achieve profitable operations and perform consistently. In addition, given the fact that it is “hidden” method, you do not change manually. This does not advance the purchase and sale of the amount of skill. It is very important to run all foreign exchange software robot on a demo account first with a minimum of 3 months to ensure its accuracy. An adequate amount of time should be provided so that commercial software can have a variety of market conditions. Some foreign exchange buying and selling automated system to function effectively in a market trend, even if others best when markets are going. A method of good quality can vary and be able to enter both the problems of the marketplace. It is also advantageous to buy forex robots with a more secure funding. This allows consumers to test the threat of commercial software for free for a period of time. Not all software is developed robot currency equivalent when it comes to Forex automated buy and sell, therefore exercise due diligence. For more information on the automated forex software, click the link below …

Automated Forex Trading: The easy way to make money buying and selling of currencies?

Automated Forex trading can be an interesting alternative, if you want to finance the trade exchange market profitable, but lack the time or inclination to discover the trade itself. With forex trading software automated program, also known as a forex robot, a map of the personal computer business automatically.

Of course, there are expenses related to the Forex market, you pay a fee in the form of gaps, but a currency exchange operator is more likely that a large sum of money much more than a novice user, so can still be very useful. And you do not have to spend hours each day of hunting in the graphs and analysis of the costs of the currency on the web.

But it is really that easy? What are the risks to the automation of exchange buying and selling?

First, it is important to recognize that any speculation is dangerous, whether in stocks, currencies, commodities or anything else. Nobody makes dollars on each trade, which includes more foreign operators productive exchange. So there is a threat that his technique of automated trading losses in its name. However, it is true that the currency of high quality robot will be many more victories to losses, resulting in a network to achieve, even at times when manual trading does not work correctly.

Second, we must know that automatic currency purchase and sale of the system to function properly, you must work 24 hours a day. This means if the computer is a forex trading robot crashes, the robot could stop on a transaction in your stop loss, causing heavy losses.

However, there is another alternative. A Virtual Private Server (VPS) can be signed. A VPS is a computer in a remote area that can be connected to your computer at home or office staff on the Internet. If you use a VPS to host the application of automatic forex trading is not necessary to worry about the loss of power or Internet connection because it would be guaranteed by the VPS host.

There is another range of possibilities related to automated trading currencies, they can not see what happens “under the rug.” You have to trust the robot to achieve profitable operations in a coherent and comprehensive. In addition, since it is a “hidden” program, you can not understand that trade manually. This does not advance the purchase and sale of talent level.

It is very important to use all applications in robot forex demo account for at least three months to ensure its accuracy. An adequate amount of time needed to make trading software can be analyzed through a variety of market circumstances. Some automated programs from comprehensive exchange and foreign trade in trending markets, while others in more detail when the markets are going. A method of high quality will be varied and be able to benefit from market conditions at the time.

It is also useful for robots dollars in exchange for new securities. This allows the user to review the purchase and sale of software threatens free program for a period of time. Not all applications forex robot are created equal when it comes to Forex automated buy and sell, therefore exercise due diligence.

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FX Markets Waiting for New Information

USD was marginally higher as risk appetite shifted lower on a variety of second tier headlines. Looks like the summer lull might be coming in early this year. The FX market seems to be stuck in limbo with little new information to digest and we’re getting fatigued with all the comment-analysis regarding the EU sovereign debt crisis. EURUSD looks content consolidating between the 1.4000 and 1.41300 range while USDJPY remains trapped in daily cloud cover bouncing around 81.50 and 82.20. Commodities have also paused - asking for direction with crude WTI ranging between $95 and $100 bll and Gold lingering around $1525.
S&P futures gave Asian regional indices a bearish tone as the US futures (in large volume) slipped below the 100da MA. Risk correlated FX trades followed with the EUCHF falling to 1.2326 as the typical safe haven trades in USD, JPY and CHF benefited. So what was the actual trigger of today’s conservative trading, take your pick.

Unsubstantiated rumors of snap elections in Spain and Greece, S&P statement that China’s banks face a profit squeeze & could noticeably weaken tightening moves, EU's Rehn comments that “Greek debt could be ‘reprofiled’ and debt maturities could be extended” and a WSJ article which reports that roughly $17 bn in civil lawsuits are flying about over wrongful foreclosure practices.

All of these are ultra-short term and will undoubtedly be forgotten in a few hours. We suspect that the Forex market is clearly focused on the impending Mid July – early august deadline where Greece is expected to run out of cash. The solution is still very much up in the air and begin hotly debated publicly. In recent days, just about everyone in Europe has stepped up and voiced their opinion suggesting a wide diversion among policymakers.
The ECB’s Noyer said that Greece has no choice but to implement the EU/IMF rescue program demand in its entirety including larger privatization to slash debt. While Greek opposition leader Samaras stated they would reject new austerity plans, the ruling party controlling said they may have to.
And what’s a day without a comment from the rating agencies as Moody’s said that Italy and Belgium would be next in line if Greece defaults. Our base case scenario remains that Greece will accept another EU / IMF bailout and the build up to this announcement will be positive for risk appetite.

We are now looking for now is a long risk position with carry and a commodity related kicker. Traders like AUDJPY and NOKJPY – these look exceptional appealing in the mid to longer term trades.
UK releases GDP report today followed by export and import data while the US will release durable goods orders, house price index and oil inventory data. ECB’s Stark and Fed’s Kocherlakota would hold speeches today. Most of the focus would still be on EU debt issues as investors fear contagion spreading to other nations.

Today's Key Issues (time in GMT):

08:30 GBP GDP (Q1 P) q-o-q 0.50% 0.50% 0.50%
08:30 GBP GDP (Q1 P) y-o-y 1.80% 1.80% 1.80%
12:00 EUR ECB's Draghi, Liikanen to Speak
12:20 USD Treasury's Geithner Speaks
12:30 USD Durable Goods Orders (Apr) -2.50% prior
12:30 USD Durables Ex Transportation (Apr) 0.50% prior
12:40 GBP BoE's Andrew Sentance speaks
14:30 EUR ECB's Stark Speaks
17:30 USD Fed's Kocherlakota Speaks

The Risk Today:

EurUsd Yesterday’s recovery bounce only got as far as 1.4133 before the sellers once again stepped back in, and this morning we find the pair hovering just above the 1.4000 level once more. The last few days price action does not, in our view, provide a very clear insight into whether the next big move will be up or down, so for now we maintain our bearish bias and look to sell on rallies. Decent support is expected around 1.3970-80, where we not only have Monday’s low, but also the 17-18 Mar lows and 100-day moving average – all of which have the capacity to attract buyers. Beyond there, next supports are 1.3940-45 (currently downtrend support), 1.3856 (15 Mar low), 1.3744 (2 Mar low), 1.3705 (24 Feb low) and 1.3683 (200-day moving average). Key resistance levels stand at 1.4133 (yesterday’s high), 1.4346 (20 May high), 1.4441 (9 May high), 1.4500 psychological resistance, 1.4588 (6 May rebound high) and 1.4764 (former support last seen in early May).

GbpUsd Although GBPUSD enjoyed a temporary respite from recent selling pressure yesterday, the recovery rally could only get as far as 1.6209 highs (a good 40 pips away from mounting a serious challenge on the overall bear trend channel), and since then the bears have stepped back in to reduce the gains. As planned in yesterday’s report, we used the brief look above 1.6200 as an opportunity to re-load our short positions, and now resume our focus on another visit below 1.6100. On the next push to the downside, supports are seen at 1.6060 (Monday’s low), 1.6000 (psychological support), 1.5973 (1 Apr low), 1.5937 (28 Mar low) and the hugely significant 200-day moving average 1.5941. In the meantime, the upper edge of the current 3-week downtrend channel acts as the first resistance level (1.6220-30 today), so we are using that trend line as a guide for our trailing stop. Further resistance is eyed at 1.6309 (13 May high), 1.6380 (12 May high), 1.6517 (11 May high), and 1.6574 (4 May high).

UsdJpy USDJPY is still engaged in a very slow and laboured ascent within its 3-week uptrend channel, and yesterday managed to re-test the 19 May highs around 82.24. Unfortunately, rather than bursting higher, the bulls ran out of steam at 82.21, and the pair has now drifted back below 82.00. Although the upside momentum is pretty weak, the uptrend channel remains valid and therefore expect buyers to materialize around 81.55-60 today to keep the pair elevated. The key resistance level above 82.24 (the aforementioned 19 May high) will be a zone of supply around 82.68-78 which represents the triple force of 200-day moving average, 27 Apr high and the upper edge of current uptrend channel. Further levels include 83.26 (18 Apr high), and 83.79 (15 Apr high). If at any point the trend line support is negated, then watch for next supports to come into play around 81.33 (Monday’s low), 80.95 (18 May low), 80.16 (10 May low), 79.57 (5 May low), 78.26 (17 Mar low), and the all-time low 76.40.

UsdChf USDCHF has withdrawn from its 0.8893 highs seen earlier this week, and is now consolidating around the 0.8800 level once more. As a reminder, we are short at 0.8800 playing the head & shoulders pattern on the hourly chart, and are aiming for a target on the downside of approximately 0.8660. Given the disappointing progress of this pattern so far however, we have implemented a tight stop at 0.8850 to limit losses in case of another bullish surge. On the topside, next resistance comes into play at 0.8893 (yesterday’s high), followed by 0.8941 (16 May high), 0.9011 (19 Apr high) and 0.9105 (11 Apr high). Supports stand at 0.8783 (yesterday’s low), 0.8748 (Friday’s low), 0.8708 (10 May low), and 0.8676 (6 May low). Below our 0.8660 target the only support remaining will be the all-time low 0.8554 (recorded on 4 May).

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Intro to Fundamental Analysis

There are 2 different schools of thought used when predicting price movement: technical and fundamental analysis. Understanding both can be a great tool in your repertoire of trading tools.
While technical analysis uses price action and charting to anticipate market movement, fundamental analysis takes a look at the underlying reasons as to what caused the market to move (high unemployment, inflation etc). Think of a train station: fundamental analysis can hint which way the train is going, and technical analysis can help tell the passenger when to get on.

What Makes the Market Tick?

As with all other commodities freely traded on the open market - currency is considered a commodity - the price is determined by supply and demand. The choices a country's elected leader makes can affect the global demand for their currency. Here are a couple of factors that influence the market:

Interest Rates

Central banks, like the U.S. Federal Reserve, have the ability to set core interest rates, which use these rates to help steer economic conditions in their respective economy.
Take for example the recent USD/JPY carry trade from 2006. The Japanese central bank had an interest rate of 0.25%, while the U.S. Federal Reserve's interest rate was 5.25%. Traders would borrow Japanese Yen (and pay an interest rate of 0.25%) and invest it in US Dollars (bearing interest of 5.25%), yielding a net gain of 5% interest. This situation attracted many investors which increased the demand of USD in exchange for JPY, and the value of the USD/JPY appreciated greatly as result.

Inflation

The rate of inflation can quickly erode away one's profits: if the rate of inflation is higher than the rate of return, the investment is at a net loss.
A modern example of inflation can be seen in Zimbabwe. Inflation got so out of hand that, for example, if an investor had $10,000 worth of investments in Zimbabwe, that investment would have been worth less than $1 in 15 days. While this is an extreme example, it illustrates the point: even a slow deterioration of an investment from inflation is avoided by major investors. A country with inflation higher than return on investment will be avoided by investors, which will lessen the demand for that nation's currency.

Economic Health

It should be no surprise that overall economic health is a contributing factor. There are many important economic indicators (GDP, unemployment etc) that give insight to a nation's well-being. Visit our education center to learn more about the important economic indicators that influence each currency.

Market Sentiment

As the word "sentiment" describes, market sentiment is simply what investors feel about the market - regardless if their feelings are entirely justified or true. As such, market sentiment could be - and is - influenced by rumors and false reports.
For example, recently a reporter from The Independent reported that the oil states of the Middle East were in talks to stop using the US Dollar for oil trading. Even though the report was repeatedly denied as false, it still had an impression on the market.

Stay in Touch

To help our traders stay in touch with the happenings of the market, we provide a free economic calendar and Dow Jones news streaming straight to the platform.

• View our economic calendar online
• Download a demo account for access to streaming Dow Jones news

 

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MACD (Moving Average Convergence Divergence)

MACD

Introduction

The MACD (Moving Average Convergence Divergence) usually displays the difference between the 12 period and 26 period EMAs (Exponential Moving Averages). The MACD does so by displaying a histogram as well as a signal line which by default is a 9 period EMA of the histogram.
Over the years, we've noticed people prefer to display the MACD indicator differently which we call the "MACD Traditional". This version includes both the main MACD line and the signal line, as well as a histogram.

Files

Indicators Folder
IBFX – MACD Traditional.ex4
Last compiled on October 8th, 2009 on MT4 build 225

Download and Installation Process

Step 1: Download the setup file and double click on it. Follow on screen instructions.
Step 2: Select the tools you would like to install, click next. (Make sure to select your MT4 installation folder).

*This setup will not overwrite any previous version of the tools that was already open source*

*If you want the latest version of the open source tools, make sure to rename or delete them*

Risk Disclaimer

Our multibank liquidity feed delivers pricing from major money center banks right to your trading platform. In volatile or low liquidity market times, spreads may fluctuate and you may encounter slippage. Please take that into consideration when you are trading during volatile time periods. Fills are not guaranteed, especially during fast-moving market conditions, orders may not be filled as placed, and substantial losses may still occur.
Expert Advisors, Indicators and Scripts are not guaranteed to produce any particular outcome. As a trader, you are responsible for any trades created by any expert advisor you use. It is highly recommended that you use any advisor for an extended period of time on demo accounts and verify that it's producing your desired outcome.

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Learn to be Trader

Learn to be Trader

I’ve been thinking that free trading videos would be a big plus for Pipholic. Unfortunately I’m having technical difficulties and time-limitation to provide such learning materials.

There are actually many forex-learning resources which provide free trading videos,  InformedTrades is one of them. InformedTrades tries to help people learn to trade by providing trading courses. They incorporate a bunch of free trading videos within their free courses. I browsed around the site and found tremendous amount of info for those who want to know and learn to trade. InformedTrades cover both technical and non-technical sides of trading.

It seems that the host (David Waring) is trying to present the course-materials as systematic as possible. He categorize the course into 8 categories including course on forex, stock, futures and options trading. Up to this point you can see that InformedTrades is not only about forex trading.

I currently enjoy reading articles within Fundamental Analysis category. You know I’m poor in this field. Articles listed there are pretty well-written and has helped me a lot in learning this topic. This sub prime (loan) crisis article for example, gives “two thumbs up” introduction and explanation about sub prime loans and the issues they are causing for the consumer, the economy, and in the financial markets in general. You know that subprime loan has recently been associated to the current US Economic crisis

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