Visit www. Today's FX Market 25 fund money ull ocaled 0 FX is esti mated to be around trill ion, even leveragi ng thi s amou nt aggressive ly woul d still leave a gigantic gap in reponing. So w ho is do ing all the trad ing? Where are they trading? How are they trading? The bank the n qui ckl y contacts one of their counterparti es to offset their ex pos ure, which may in turn offset their expos ure through the de ri vati ves market.
Although it is hard to te ll exact ly where these fl ows are coming from, w hat is undeniably true is that FX vol umes have been steadil y increas ing. Volumes are in fac t ri sing at such a tremend ous pace that only a fundame ntal shift in people's percepti on of FX can ex plain the curre nt sit uation. If a large inte rnational mu tua l fu nd wa nted 10 buy European stocks.
Thi s was a case of Ihe simpler the better, since in their minds their core compete ncies lay in picking stocks, Ilot the d irecti on of the doll ar. After the bursting of the stock market bubble and 11 September, times got tougher for asset managers and lhey soon began to look at FX with kinder eyes. They rea li zed lhal the ir FX holdin gs could actuall y be regarded as a separate asset class, whi ch had to be "optim ized" in their consta nt search for alpha excess return.
This change in perception proved to be a radical shift for the in vestment com mu - nity, and continues to be a major driving fo rce in the FX markets today. More and more funds are now actively managing their FX exposure, ei ther in-house or by employi ng a currency overlay manager CO M. This renewed the foclls on FX and the search fo r yie ld has in turn led to the resurgence of the carry trade,3 which in turn ofte n leaves stro ng trends in its wake.
In an age of low yie lds and in creasingly competiti ve effi cient markets, th is new brand of FX participant is here 10 stay. Soros and other speculators had begun to take increasingly large short sterling positions on the groundS that the UK economy was suffering from high inflation and a slumping housing market.
If the rate fell below that level, the Bank of England would have to intervene in order to prop up their currency. On Sep. The UK Chancellor tried to stir up some demand for the pound by raising rates not once, but twice in the same day, yet by evening it became obvious that they could not continue to prop up "Her Majesty" so they decided to throw in the towel and unceremoniously withdrew from the ERM. The pound was then free to trade outside of the fixed range and eventually fell to as low as 2.
Moral of the story: When everything is in your favor, go for the home-run trade. JSoTTowing a low-yieldin g instrument and trading it for a higher yielding one in an effort to make money from the yield difference. For example, you take a to. Although over half of all FX turnover is handled by the interbank market essen tially banks trading with each other thi s percent age has been rap idl y shrink- ing it accounted for two-t hirds of all tradin g 10 yea rs ago due to the increased partici pation of sophisticated and varied investors.
Where FX was once solely the domain o f global banks, nowadays a growing number of speculators such as hedge funds and eTAs actively jostl e for space alongside the more traditio nal players. In a way, it see ms on ly fillin g that the largest market in the world should al so have the most varied group of panicipants, and everybody from the hedge fund crowd to the freq uent flier crowd now has an interest in foreign exchange rates.
In order to simplify things, we can divide the FX market into the four major types of panicipams: marker makers, corporate accoums, speculawrs, and central banks. Banks are the only o nes wi th deep-enough pockets to handle the biggest of FX transaction s.
Unlike bank dealers , whose primary purpose is to m. Speculators can use them to gai n anonymity while trading, prop desks may li se them for arbitrage, and indi viduals may use them because of their smaller size. I good dealer. Along with insur- ance and pension funds. The Coca-Colas and GEs of the world receive and make payments all over the world. These corporate nows need to be carefu lly predicted and hedged in advance so that accurate budgets and projections may be created.
Since corporate clients are not a particularly SpeCll- lative bunch, they arc primarily interested in hedging flows through the forward market. For them. Their primary aim is to generate prolits through their views on the markel, as opposed to simpl y co ll ecting transaction fees brokers or using FX as a mea ns to an end corporates. The big players in this group include prop desks bank s trading their ow n proprietary accounts , hedge funds. These traders have an appetite for ri sk and a put-your-money-where-your-mouth -is mentality.
Along wit h dealers. Each national bank is responsible for their currency. Central banks are loathe to see their currency being used for speculati on. Since C Bs love to sec specu lato rs get hurt. In thi s world, the bottom rung of the food pyra mid is occupied by the "public", us uall y cus tomers whose fie ld of ex perti se li es olltside trading currencies corporates or unsophisticated market participant s retai l.
Since everybody feeds off the publ ic espec iall y banks and brokers this is not where you want to be, and if you are a retail trader pay ing a 5 pip spread for a 20 pip trade then you immed iate ly fa ll in to thi s category. Hedge fu nds and other sophisti cated spec ulators, on the other hand, are at the top of this food c hain , Due LO their speed and market insights, these ad vanced pl ayers are ab le to prey on banks and brokers that are more concerned with coll ecting spreads than ident ify ing arbitrage oppo rtuni ties, It 's a spec ulator's duty to take so me of the bank's risk-free profi ts and pocket them for the mse lves.
Although the odds are stacked aga inst th em, so me retai l traders do, however, manage to overco me the odds with a mix o f confi dence and sk ill that any bank trader wou ld envy. Find her and hire he r! Unfortunate ly these bright Slars seem to be few a nd far betwee n, since the vas t majority of reta il spot FX trade rs a re just not very good in the long run. Aft er a ll , if market makers profit by trading aga inst their client bascothen their client base must be wrong most of the time fo r the m to make money.
Re tail traders in a ny market ma ke great contra ri a n indi cators. Althou gh you may think the ir c hances of success are , so me how a mate ur trade rs have the innate ability to pi ck tops a nd bottom s and con siste ntl y get c hewed up by the market because o f the ir mi sguided trading dec isions a nd lax money manage me nt rul es see below.
The Players 31 Thi s chart illustrates some of the erroneous logic that is habitually exhib ited by the retail crowd and exploited by professional s. On the back of the g reat news, Creative's stock gapped hi gher the next day and traded as high as 7. The volume traded was almost len times the daily average, indicating large retail partic ipation.
Dealers were well aware of the news, but maybe surpri singly they begin to sell soon after the opening bell they were se lling while the masses were buying. Why did Lhey choose La go against the lide? If the lawsui l had c han ged the fundam e ntal s of the industry forcing Apple to stop producing the ir product, for example then their reaction would probably have been different , but in thi s scenario they were happy to sell all day long to the unsuspecting buyers and fini sh the day with a healthy profit when the buying subsides and the price returns to its pre-news leve l.
The trend is obvious. The prices are not interbank, the size is not interbank. So what exactly abollt it is interbank? Their moti vat ion is obvious, si nce the more you trade, the more they make. In a scenario like this, who's looking out for your best interests?
Befo re the advent o f the cum, Europeans were accustomed to dealing with foreign exchange all the time, and anyone who has li ved in a country with a volatile currency will tell you that they always like to keep one eye on the exchange ratc. Throughout the s, US futures exchanges complained to the government that they were drowning under a mountai n of red-tape and o utdated reponing measures.
Under the CFMA , over- the-counter market s were kept exempt from US govern ment oversight and some of the more restri cti ve regulations on futures exc hanges were removed to ensure their g loba l competitiveness. This, combined wi th the internet revolutio n, opened Ihe doors for FX brokers a lso ca lled FeMs 10 largel a relail audience and begin offering on-line margin trading accounts.
Retail FX brokers thu s gained legilimacy by placing Ihe "regulaled by Ihe NFA" logo on Iheir websi le, and Ihe power o f the internet mean t that these start-ups needed little more than a Reuters line and a toll -free number in o rder to compete with traditional brokerage houses. The early years of the retail FX market featured a number o f rag-lag outfits con- sisting of over-caffeinated dea lers in liny Manhattan offi ces offering their clients spreads wide e nough 10 drive a truck through, and mosl would surely have contin- ued to li ve an un eventful life had it not been fo r th e coll apse of the internet bubble.
The three or four firms that recog ni zed thi s opportuni ty and focused all of their anemian on their marketing efforts quickly became the market leaders and have neve r looked back. These retail operati ons that have mu shroomed in the last fi ve years sit in a slill -to- be-defined gray area within the FX markel. In theory Lhey should act as littl e more than middl emen between the true interbank market and their reta il cl ient base. In a time when stock market euphori a was grippin g the nati on.
All of the transactio ns they handled were off-exchan ge wi th the fi rm taking the other side o f all trades. Becau se the orders where not immediately olrset in the market, the shops could either wait until the price moved in their favor be fore fi lling them keeping the difference o r wait until the end of the day 10 match buys and sells at the ir ow n "adj usted" price. The dea lers that ran the shops knew that in a time of delayed q uotes and nontransparent pricin g, cl ients had lillie way of know ing where the market stood at the exact moment they placed their orders.
Because of these ad vant ages. Unfortunate ly, tod ay's retail FX brokers share man y trai ts with these outl awed operati ons, incl uding: Nontransparent pricing. The FX market is an over-t he-counter market, meaning the price your broker gives you is he price you get. You have no choice in the matter. Prici ng is not done th rough a central exchange.
Encouraging overleveraging. Like the bucket shops. Trading against your clients. It is standard practice in the FX world to trade against your clien t base. Card Stacking 37 the interbank market. The bro ker may then wa it until the cl ient fl ow is surfi cient to o rrset with their market maker or Ihey may choose to hold the pos ition and effec ti vely trade agai nst their client s.
A "no dea ling des k" poli cy simpl y means that dealers ha ve been replaced with mach ines. Unfair practices. Although the odds were stacked aga inst the bucket shop client. Jesse Li vermore,4 for examp le, became so good aI pick ing stoc ks th at he was soon banned from all the bucket shops in the East Coast. Casinos do not like winners a nd neither do FX brokers. A cas ino may sen d a crooked deale r to stop the win ner's streak and retail FX firms may resort 10 denying service or complicating execution to such a degree th at it makes trading impossible.
If anything, th is sho uld be a clear sign that your broker is trading against YOll , since it beco mes evident th at your broker is los ing money if you are posting profits. The questi on that co mes to mind is, "Wh y would bro kers behave in thi s manner?
Since stati sti cs show that most traders blow- up their accounts before reaching their first anni versary, it is in a broker' s best interest to gel as much as they can as qui ckl y as they can. There is no such thing as a "long-term" relati onship between a market maker and hi s cl ients, and whil e the degree of dodgy ness may vary fro m shop to shop.
Stories of bi g in vestment banks ripping off large corporate cli ents routinely make the news, so is it reall y any surpri se to hear that retaillraders do not fare any better? Since deal ers routinely change jobs and li ve on a daY-la-day basis or bo nU S-la-bonus, actuall y it should come as no surpri se to learn th at they focus purely on short-term profits.
Arter al1. A dealer's j ob is a risky one, an d he knows that if you could. Although I am sure squeaky-clean shops ex ist somew here, I ha ve yet to come across any. The more accounts they open, the more money they make. According to Drcw Niv. They will try eve rythin g from huge internet adverti sin g ca mpai gns to direc t mail offerings, eve n goin g as far as holdin g trading "conferences" or "seminars".
In the end. Take, for ex ampl e. What could poss ibl y be wrong with rewardin g good traders? A lot, actuall y. Tradin g contests and drea ms of a large payoff pl ace people in direct co mpetiti on with each other. If you are tradin g to beat your ne ighbor. Card Stacking 39 bring up and focus squarely o n the dollars and cents, we st ill find brokers coming out on lOp even when they are the ones paying out to traders on a monthly basis. Layers between the retail trader and the interbank market Each layer represents an e tra cost.
Most probably these guys simply leveraged their accoun ts to the max, picked a volatile pajr, closed their eyes, and bought. Not much ski ll was involved in that brilliant strmegy. The really interesti ng part comes when we sh ift the atlention away from the winners and focus instead on the results of the rest of the field. Out of four hundred participants, Jess than finished the month above breakeven a surpri singly high number, actual ly , and the rest finished with a losing record.
This type of game where lots of small accounts vie for a big payoff is nO new; it is usually just called a lottery. In this sense, forex brokers are simply great at twisting the truth and transforming the laughable into something deemed va luable by traders. Who else cou ld co nvince trade rs that paying twice the spread s imply to be Hat is act uall y of benefi t 10 them?
These guys shou ld run for Congress! Large reta il FCMs have their own market makers, a Citi or Gold man for ex am ple, which offer them a I pip spread or less on the most liquid pairs, whi ch they use as their ind icati ve pri ce. To thi s rate, they add thei r 2 or 3 pips or more! However, because these middlemen are free 0 manipul ate their price feed, they can essenti all y show their cl ients any pri ce they wa nt , and the same person that is do ing the buyi ng and the selling also becomes the person that controls the prices.
If this smell s fis hy to you, it should ; after all, it is the primary reason why exchanges were created in the first place, si nce the lack of transparency always plays into a dealer's hands. If a broke r is convi nced that the curo is going higher, for exa mple, he wi ll shade his quotes s li ghtl y higher to benefit fro m the move.
Th is is all fa irl y common practice in the FX world. If a dealer notices that a bunch of good-sized stops have gathered nearby reme mber, they know where your stops lie! Naturall y, the move will be seen as si ngle blip. If a cl ient co mplains, brokers are shi elded by the fact that there is no ce ntral exchange from which to compare seco nd -by-second pri cing.
We na iled you! Card Stacking An example of price manipul ation. With two feeds from two different FX brokers, you can see how at the same moment one price spikes while the other one does not. T hese days. Do not assume that because they proclaim to be large and "well respected" in the ind ust ry that that makes them upstanding guys. According to the NFA, before choos ing a broker you sho uld keep some of these things in rnind : You arc relying on the dealer's creditworthiness.
Basicall y, if Ihey go down. Since retail off-exchange forex trades are not guaranteed by a clear- ing organ iza ti on, the fu nd s that you have deposited are nOI insured and do not receive a priority in bankruptcy. There is no central marketplace. Un like regulated fu tures exchanges C BOT. The fo rex dealer determin es the executio n pri ce.
The trading system could break down. A sys tem fai lure may also result In loss of orders or order priority. You could be a victim of fraud. As with any investment, you should protect yourself from fraud, Beware of in vestment sche mes thaI promise significant returns with little risk. You should tak e a close and cautious look al the investment offer itself and continue to monitor any in vestment you do make.
AI the time of writing, third-party so licitors for retail spot forex trading were still not su bject to regulatory oversight, and Illay make misleading st3! A Google sea rch on the term "forex" wi ll quickly reveal all kinds of scam s and false promises made poss ible by la x government oversight.
However, one quick visit '0. The problem is that alth ough it is a valuable instituti on. It is just not very effecti ve. These are the guys that send crooked dealers and pOll zi sc hemes to jail, but their FX overs ight is limited beca use of the spot market's over-the-counter nature. The CFfC is set up to regul ate exc hange-traded markets, 50 in FX they can do little more than enforce outright scams and fraud. Because the ri se of the retail forex market caught regulators sleeping, looph oles in outdated year-old mini mu m fundin g regul ation enabled new FX brokers to establi sh themselves with littlc, if any, capital.
Although thi s sho uld have scared the daylights out of their retail clients wi th milli ons of do llars in nonsegregated trading accounts, most of the time they were blissfull y unaware of the consequences until it was too late due to a lack o f awareness programs. The subsequent bankruptcy of several small brokers th at took their client's mo ney with them fi nally led the government to rai se the minimum net capital requirement and begin to crack down on these woefull y underfin anced operati ons.
As of now, the minimum net capit al requirements have been rai sed to several milli on do llars see Notes secti on fo r the full regu lation and the o nce-nonex istent aud its have been stepped up dramati ca lly. A futures commission merchant who is not in compliance with these requirement s has ten business days 10 achieve compliance or immediately cease do in g business and go imo liquidation, which still leaves retail client s o ut in the cold. Slowly but surel y thi s has begun to weed out most of the dangerously under-funded brokers, yet Illany more "borderline" brokers still remain.
The o nly way to ensure the safety o f your funds is to o nl y trade with brokers who are well above their minimum capital requirement s. FCMs are required to file mo nthl y reports with the CITC stating their current finances, but remember that since these reports are only audited o nce a year you are for the st pan relying on your broker's word. Government ove rsight of such a complex and fundamentall y OTe market is very hard to implement, bu t if the shoddy dealings continue then look for much tighter regul ations to be implemented down the line, al tho ugh the retai l FX bro kers will surely not go dow n without a fi ght.
In fact, FX bro kers are raking in so much money these days hundreds of milli ons o f doll ars that they have even hired their ow n lobbyists to keep govern- ment at bay. You know yOll have hit the big time when you can afford to bu y a lo bby! How ca n the FX brokers defend the ir acti ons some of which ca ll for jail time in other markets and continue to tell th e ge neral public that intra-day FX trading is a great "i nves tment " and deemi ng it "easy"?
How can they co ntin ue to do bus iness with people that so li cit clients through fa lse marketing and fraudulent claims? New regul at ion needs to be put into pl ace that will guarantee transparency in pricing and safety of fu nds to the reta il cl ient, but it is up to the average trader to plant the seeds of change by com pl ain ing vigorously to the gove rn ment authorities at the sligh test hint of dis ho norable dealings.
We wi ll all be in 11 bette r place once a fair set of rul es are adopted that lets both brokers and traders flourish. After all. Hundreds of companies now offer clients great money-mak ing trading signa ls or programs. Need less to say , the actual serv ices Lhey provide leave much to be des ired. LeI me put it thi s way: if you had a proven, money-making FX trading system would you sell it La the genera l public?
Probably nol. Hedge funds and private traders spend milli o ns of doll ars developing and safeguarding their trading systems, but you can sti ll fi nd hu nd reds of different trading programs fo r sale on the internet or trad in g magazines. Common sense tell s us that these "systems" are probably not very good to begin wit h. When looking It third-party providers.
For exa mp le, if the "guru" you are look ing at does not trade hi s own recommendations. If the resuhs cannot be veri fied note that simply posting them on a website is not verifying them! To ensure that you are gell ing a fair shake, it is best to make sure that the "expert" or "system" has no relationship with any broker. A dead giveaway is them asking you to trade with their "preferred" broker, which is just another way of saying that they make a pip or two out of every trade that you place.
You want to steer clear of anyone making money from your trading. Looking around the internet I have also seen many " me ntors" popp ing up, who offer to show traders the ropes in exchange for a fee. When a new trader joins a firm he will pair up with a more experienced trader who w ill teach him how to become a great trader.
The motiva ti on there is si mple: they have a vested interest in seein g their pupi ls succeed because of the lime and money they have in vested in them, and the hope is that they make milli ons for the whole compa ny. Now compare that to menLOrs offering 0 leach you for a fee.
What is their motivation? To make their pupils succeed or to simply generate fees'? The truth is that before these guys became popular FX guru s. In the rea l world , mentors choose their stude nt s, not th e ot her way around. The best mentors you ca n possibly find are friends or acqu aintances who m you know to be good Lraders, since they have verifi ab le results and their motivat ion is clear. This is a direct result of the increase in popularit y of forex tradin g and the lax overs ight by governm ent agencies.
Before enterin g into any investment scheme. There are many great analysts and third-party serv ices out there; you just have to make sure you pick the right o nes. A whole commu nity of professional technicians, econo mi sts, and analysts ex ists to service the institutionallrading industry.
The difference is that Lhey mak e their mOlley th rough their calls reputation not through your trading by getting referral money fro m the broker. As the sayi ng goes, you get what you pay for. Not just a coo l website. They can be ex-prop lraders.
It is useless to tell the average trader that the euro will drop to 1. Opportu nity cost is a real cost for most traders with limited liquidity. The last thing you want to do is have your eq uity locked in a trade that is not movi ng whil e bypass ing other maybe betler trading opportunities. The bOllom line is thaI every g rem trader has paid their "t uiti on" to the market, usually in the way of years and thousand s of dollars.
Success is the d irect product of hard work and determination. Remember that self-confidence is a hallmark of all greal traders. RULE 1. Never take the ad vice of someone who is not willin g to put money behind their so-call ed analysis. If they are not will ing to take a hit, then what is their down side to mak ing a prediction? RULE 2, Never listen to anyone "talki ng their book", Most jokers on chat forums are sitting o n positions deep underwater and are desperate to get ou t.
Any advice Ihey can possibly give you is losing advice and shou ld be used as a contrarian indicator if" anythin g, Even the big names routinely talk their book. The brokers may have initially gained the upper hand , but they have by no means left the retail trader without recourse. By limiting yourself to your FCM 's artificially created bubble, you are giv in g up the power to become judge and executioner.
Your Sl OpS may be run or you may trade off manipulated prices, but you wou ld never reali ze that the moves did not correspond to the genera l market. As a trader, you want to remain at all times objective and have as broad a view as possib le of the market, something that cannoL be accomplished using a single feed.
Your platform feed should onl y be used for placing trades, bUL you r strategy and analysis should rely on the purest, most unbi ased price feed you can find. Most retai l traders do not have the luxury of trading with a Reuters or EBS feed, but rest assu red that alternative sources can be found. Every trader should spend some time comparing different feeds and charts to see how they perform in fast-moving markets when reta il platforms regul arly freeze their prices and notice that demo feeds are different from li ve feeds.
Having a stable and faithful charting appl ication is espec iall y vita l to all short-term traders. Do a search for yourself and find one thaI suits you r needs, but remember that mosl of these "informative" websites are ac tuall y run or sponsored by brokers, so make s ure that you know where the price feed is com in g from. Before choosing one. The number o ne reason is that St sli ghted traders find it difficult to take action against their broker owing to lack of ev idence.
Clients may feel cheated when their orders are not fi lled correctl y, orders disappear from their sc reen. When you call you r broker to co mpl ain you may Slate that "my order disappeared! An easy way to do this is to take scree n shot s. You ca n find and down load a variety of applicati ons o n the web, and taking screen shots of your orde rs in the market, trades. Profess ionals do it and so sho ul d you.
Although most brokers wi ll usuall y fold when threate ned with official ac ti on. You do not need to hire a lawyer to fi le a complaint, and usuall y laking thi s initial step is enoug h to sca re a broker into a reasonabl e settlement. Informati on abou t NFA's arbitration program is ava il ab le by call- ing Nl--"A at or visiting the Dispute Resolution secti on of its web site al www.
Similarly, the CFTC offers a reparat ion program for resolving di sputes. In addition. In the end , it is up to traders to monitor and stay on top of all forcx brokers. The C hi cago Mercantile Exc hange operates its own clearing house and virtu ally eli minates credit ri sk by acting as th e counterparty lO every transaction.
An additio nal benefit to the indiv idual is that yo ur funds are held in segregated account s. Bener yet, perform your own due diligence and go visit their office! Don't judge a broker's e xecution by their demo accounts. Demos are marketing gimmicks meant to lure people into trading. The execution on your demo account will be perfect, unlilce when you go "live". Always remember that the cost or switching is low, but the cost of staying with an unfair broker is huge! The blmkIng pnces and constant sWings In equity are used by brokers to distract the trader and amplify the gamblIng instinct.
Try instead to think oC the moves in terms of pips, not dollars and cents. Thjs sounds obvious, but it is true. It is much easier to place the blame on bad dealers, systems providers, CIC. The learning curve can be steep and uncompromi sing, and in thi s market there is no free lu nch to be had. All traders, even the most successful ones, have paid their " tu ition" to the market and all realize that the key to becom ing successfu l is survi val. Simply put, he longer you stay in the market the better you r chances are of turning into a great trader.
For new traders this means establishing your survivability in the market and for experienced traders it means not fa lling into bad habits. Obvio usly, even with all of the sophisticated chan ing and ana lyt ical software avail able nowadays success is still extre mely diffi cu il to accomplish, and moving up the learning curve can take a degree of dedication, capacity.
This leads many retail traders to "olilsolirce" the ana lyt ical work to a third party, whi eh can prove extremely hazardous since before you know it you find yourself bli ndly fo llowing the advice of some market guru, expen, or system.
If it were only so easy! The actual decision-making process is the hardest pan of trading, so make sure that you keep a firm grasp on it. Once we put as ide all of the nonsense handed out by brokers and guru s, it is li me to get into the meat of becoming a greal FX trader. What exactly does it take to post steady profits in thi s business?
What trading ru les do professionals ad here to? What FX tricks exist out there that can help improve you r performance? T he second half of this book is intended to give active traders the information and tools they need to survi ve in the FX market and begin developi ng their own hab its and techniques that will turn the m into successful traders.
Although trading is not easy, many people choose to make it even harder for themse l ves by simp ly jumpi ng in without laki ng a second LO understand the different styles and how they relate to their personality. By trading "against the grai n", you are setting yourse lf li p for a constant personal psychological battle s hould I cut or stay that often leads to bad decision maki ng, losses, and unhappiness.
Matching up your personal it y wi th your trad ing style helps to minimi ze these personal battl es, and if you arc a new trader, the first step should be to figure ou t what kind of trader you have inside you. For example, if you feel you are patient methodical. Do you prefer to play chess or video games? On the other hand, if you arc a high-energy, im pati ent, and emotional indiv idual, you Illay choose to trade intra-day for the in stant gralific3I ion it provides.
Need les.!. If ancr several years you do nO see any improvement in your trading, then you mu st have the courage to ca ll it quits. Some people make good archilcclS, so me make good traders: it is as sim ple as that.
I cannot make a jump-s hot to save my life, so I make no pretension of an NBA career. If, for whatever reason. When you think about it, most trade rs spe nd most of their time tryi ng to figure out when to trade. There is no guaranteed way to make mo ney except coll ectin g spreads , and even the best and the brightest arc often wrong more th an they are right.
Th e market is bi gger than you, biggcr than me, and definitely smarter than all o f us. We are bo und to be wrong and make mi stakes, bUI proper money manage ment tec hn iques enabl e us to weather sustained drawdowns and live to fight another day. Funni ly enough. Whether trading a mechani cal system or in a discretionary fas hio n, all traders should know beforehand how much they are wi ll ing to wager.
Ask yourse lf: how do I determine my positi on size? How do I set my stops? All too often traders choose arbitrary numbers that ha ve little to do with pro per mo ney management , and ex it accord ing to their " pai n threshold" instead. O ur inn ate fear of failure makes us place too much importa nce on not losing.
The good thing about money manage ment is that it is easy to implement. Although good trading systems may be impossib1e to find. For example, if you r losers are substantia ll y smaller than your winners, then you may wa nt to cons ider taking sli ghtly larger posili ons. If you consistentl y post large wi nners and losers, you should consider tak ing smaller pos itions to miti gate th e risk of ruin. Proper money management ma intains the all -imponant ri sk - reward ba lance in check, and although your plans may vary from those I present here, the bottom line of any sys tem shou ld be the same: to minimi ze the chance of blo win g-up.
Lon g-term success in thi s business is achieved by acc umul ating steady profits and occasionall y hitting the home-run trade, and the lon ger you stay in the market, the more times you get to sw ing at the bu ll. This incident brought to life the ri sks of leverage to the corporate crowd. Lever- age. Trading position sizes thi s bi g in re lation to your account size mean th at you are essen tiall y trading yourself into a corner, and any market noi se is bo und to wipe out your account.
The brokers love thi s. If you are overleveragin g your trades. Professional money managers generall y use no more than two to live times leverage. That is a lot of room to maneuver. Flexibility in trading mean s giving yo urself options: optio ns to enter a trade, to stay in it, and to exi t.
By becoming overexposed to anyone position, you essenti ally remove options from your tabl e lI ntil you are faced wi th an "all -or-nothing" trade, and in the FX world your surviva l is measured in days, not years.
Since the currency markets are not one-way streets, the normal gyration s of the market mean that. The only way to gel around these sometimes arbitrary market movements is to Slay flexib le and trade mu lt ip le lots. Besides not being very wise it has a negative expected outco me when you take the spread in to cons ideration.
You should try to thi nk of your in itial entry as your lOe testing the tc mperal llre of the w. If you find out it is too co ld. Trading small unti l you think yOli have all of the informa ti on and confirmat ion YOll need gives you the flex ibil ity to properly posi ti on yourself for the move, or pu ll out with a small loss if your analys is proved incorrecl.
As YOll may well know. Trad ing in this way also means mi ss ing ou t on far fewer trades when compared to the all -in approac h. To properly trade mult ip le lots you must fi rst calculate the tota l amount you are willin g to risk before you enter you r trade. Look back on your trad ing and see how big your losses typicall y are. Th is is the same type of ana lys is that profess iona ls regularly run on the ir tradi ng.
The "more I bet. Avo id ing th is trap simp ly means learn ing to manage your lo! Broadly speak ing, FX traders can be div ided into the funda me ntalist and the tech- nical crowd. On the one hand, fundamentalists choose to pl ace their bets based on macroeco nom ic fac tors such as interest rates. GDP, inflat io n, CUf f e nt account imbalances, etc.. The tech ni ca l c rowd, on the other hand, cares less about the underly in g eco nom ic pict ure and instead prefers to re ly on two things on ly: time and price.
Althoug h the fun damentalist approach may seem li ke the more logical way to go, extens ive researc h in to the matter actua ll y ind icates that techn ical trad ing is a much morc profi tab le way to trade FX.
Although the "value investo r" mindsel may pay off in equ ities, it seems that this line of reasoning is utterl y useless in forecasti ng exchange rates es pec ially in the short run because of central bank intervention and other market nua nces, and it gets dec idedl y beaten by using a simple rando mizer model. Thi s may exp lain why eco nom ists' forecasts are undeni;:lb ly horribl e, and to the short-term trader it means th at they should focus their attenti on on the techn ical side of tradi ng, i f only for the simple reason th at it seems to be more profi table.
Tha i bei ng said, tech nica l trad ing is no sure road 10 ri ches either. As computa- ti onal power increased over time, so did the popularity of technical or quantitative trad ing model s and now a wide variety of these are used, ranging from sim- ple mov ing-average systems to complex neural network algorithms.
Unfort un ate ly most, if not all , models have built-i n biases, so an unquestioning belief in them is eXLrcmely dangerous. To prove thi s point. After an exhausti ve search and counlless regressions, o ne leading indi cator was found that seemed to fit the data pertect ly: buttermilk production rates in Bangladesh! Yet I still have not figured out how to get that on my Bloomberg.
Lon g Term Cap- it al Management and ot her see mingly advanced hedge funds were done in by these "sigma-ni ne" events, something that probabi listically speaking is so unlikely accord ing to their risk model s that it s imply does not happen. If that is the case, then how is it that we keep witnessing these "impossible events" over and over again?!
It is certa inl y not due to a lack of intelligence or computing power on their part. In order to understand beuer why all probability-driven model s have limi tations that will eventuall y lead them to fail spectacul arl y. Imagine yourse lf silting at a stop wa iting ror the bus to come.
You kn ow the frequency of the bus service every ten minutes , but not the actu al arrival lime. If the buses run according to schedule, then the probability of a bus arriving in the first minute o f you getting to he stop is one in ten. More sophisti cated models may take in w account the ave rage time it takes for a bus w arrive, or externalities such as weather and traffic, b ut ei ther way the mode l still essentia ll y says that the more you wa it, the higher th e probabi lit y of the bus arri ving, Of cou rse, the average perso n has enough common sense to begin to di strust the model o nce fifteen or twenty minutes have passed, and you begin to ask yourse lf.
Rest 3ssured that after a sufficient amount of time has passed, there wi ll be no one left at the bus stop - no I Hedge rund managers have long made run or the quant model Today [just had a loss that's a nine s igma event! That' s the third time thb year! Pickins the Right Approach 6S one except the model. People are smart enoug h to reali ze when the ru les of the game have changed the bus schedule becomes useless after a certain amount of time has passed , whi le probability-driven mode ls never take in to account the fact that the Illodel itself Illay be wrong and Lhus conti nue to waiL for a bus thaL may.
This criti cal fla w is essenti all y what makes model-dri ven trading approaches blow-up spectilcul arly, and common sense di ctates that the world is simpl y a lot more co mplex than any risk-model bui lder would have you believe. Technical trad in g proves espec iall y attractive to retai l traders because it offers a way to " make sense" oul of a sometimes se nseless market.
The clear benefit that sys tematic trading gives us is order. Ha ving a clear, orga- ni zed, and coherent strategy is fundamental to trading success. Although in the end your "system" mayor may not prove to be profitable. Generally spcaking, the simplcr the model, he more elega nt and useful it becomes, since charts filled with lin es, indicators, and all kinds of techni cal tool s on ly serve to distrac the trader away from the crucial price action.
A a time when quantitative trading has been fin all y accepted by the general trading com munit y, the intrinsic virtues of techni cal analysis are hard to discern since often it is traders' combined acti ons that turn them into self-fulfilling prophecies.
If everyone follows the sa me indicator. A kind of "chicken and egg" scenario has emerged and. Many funds includ in g ours acti vely front -run other people's models by anti cipating the trading signals their systems will generate and then positioning them selves for the slight pop created by their executi on.
If anything. With the amount of pricc " manage- ment" that goes on in the forex world , fal se breaks are more often the norm han the exception. Dealers know thi s. Learn to use technical indicators. Find something thilt works for you and stick with it. We know that no strategy is always profitable.
This lets you limit you r exposure in tradi- tionally bad times and double-up in the good ones. Does your system work best in hi gh-volatility or slow markets? Does it work best in ranging or trend ing env iron- ments? Does it work best for USD pairs or others? These are the types of questions you should be asking of you r system, since just like the blackjack player YOLI want to end up betting only when the odds are in your favor.
In iso lation all technical tools are essentially the same. This is why I think it is vital 10 keep a discretionary eleme nt to your trading, even if it is simpl y knowing when to turn you r system "on" or "off".
We know that the only in strument that ca n co ns istently beat the market is the human mind, so make sure to use it. Intra-day FX pri ces are shaped by Haws, and as we know these flows may be the speculative bets of a large hedge fund or they may simply be the hedging activity of an exporter. Either way, supply and demand is what sets short-term prices, which is why we say that in FX there is no suc h thing as a fair price. Even if the macro backdrop favors a dollar decline, a large buy order will disrupt prices in the short run and drive the dollar higher until the demand is sati sfied.
For the intra-day trader the thinking beh ind these flows is not important; price is all that matters. Getting a proper "feel" for the market comes down to understanding the price action. Wat ching the bids and the offers get hit is the equ iva lent of the old- jme tape reading made famous by Jesse Livermore and other "pun ters", who used to read the ticker tape attentively in an effort to gauge short -term price trends according to pri ce and vol ume. Price action reflects the tug-of-war that is co nstantly goi ng on between the buyers and the sell ers in the market, and to the experienced trader it can al so be a wi ndow into the market' s footing.
Since shol1-term price movement s are large ly dictated by th e maneuvering of the " big boys" in the market, it is in the interest of every small speculator to close ly rol - low the price actio n in order 10 find the " footprints" that all large players inevitably leave behind. Needless to say, reading price action is easier in exchange-t raded markets, where volume information is avai lable and institutional block orders are more easi ly detected, but in FX those wit h no flow information can still glean the market 's intentions by lookin g at the order How informati on lefl behind in he form of chart patterns and noting how pri ces react near important pivot points.
Correctly reading price actio n is not something that can easil y be ta ught. All reseNed. All mechanical trading systems have built-in biases and flaws that you must be aware of. One way to properly gauge the state of the market is by studying charts. Chart s are so valuable to the intra-day trader because they paint a graphica l representation of the price acti on, and over lime tclhale pallerns eme rge thai ca n g ive us an ins ight into the market 's footing and inten tion. The key now becomes recognizing when a market Is trending or ranging.
All ngflts rtJSfJN8d Systematic trading systems arc all bound to fail systemati call y sooner o r later. Familiarit y wilh price action reading is the key to di scretionary trading and all ows traders to lime mo re acc uratel y their technically or fundamenta ll y inspired emries and exits.
The po int is not necessaril y to trade off the pri ce action direc tl y, but rather to learn to " predi ct" moves so that yo u can antici pate the market reaction and plan yo ur res ponse according ly. With the help o f a fast feed traders ca n Icarn to intcrpret th e pri ce acti on by simply looking at the way pri ces reilcl near important leve ls.
Picking Ihe Righi Approach No demond Opening prIce Should be the price ocHon shows that the regarded as a warning sign I market Is lacking the momentum to sustain higher levels new high that a change In direction may printed but sold off and that profit be Imminent. Bids and offers taking Is entering the market.
The market Is unable to record new highs and Immediately sells-off. Although the sell-off Is bought Into possibly buying the top? If the pair is so ld off as it approaches the bi g fi gure bu t is then quickl y bought back 20 pips lower, th at may be a signa l that the option protectio n guys are rc-Ioad ing se llin g near the fi gure and then covering their shorts.
Typlcollpeculotive price acHon,.. Picking the Righi Approach 71 their option, and you shou ld keep an eye on the London or NY options cut after whic h the sellin g may di sappear and the rate may be free to move higher. Inilial move higher. Dips seem 10 be shallow and lillIe relracemenl is seen real money demand: dealers are working a mountain of buy orders and buy eVelY dip.
The answers to these types of questions wi ll give you an insight into the market 's pos ition ing and let you adj ust your trad in g accordingly. This is because the forex market's unique structu re sets it apart from the major exc han ge-traded markets around the world , and requires most traders 0 go through a period of adj ustmenl. Perhaps the most obvious distinction a nd difficult to handle for individual traders is the fact that the foreign exchange market trades continuo usly 24 hours a day, seve n days a week.
Global commerce does nO take time off, and neither does FX. With the help of technology, trading now takes place around-the-clock, and although your broker may not accept orders over the weekend, you can res t assured that Ihe FX market is awake and that someone, somewhere, is dealing. Si nce there is essentially no market "open" or "closed", tec hni cians strugg le to use their candl esti ck reading tec hniques, wh ich are orten not read il y applicable.
After all , everything is relati ve in FX, and a trader's open in Tokyo is not the same as a trader's open in London. Instead of rel ying on exchange-mandated hours, traders have to therefore find alternative ways to break dow n the day 's trading. A clever way to do thi s is to treat each trad in g session independentl y usin g 4 hour charts, which lets us div ide the trading day into three eight- ho ur trad in g sessions. By doing thi s. Because each center's banks are ill active competition with each other.
The main players in the Asian session are commercial names exporters and regional central banks. London London's "City" still holds its traditional role as the FX capital of the world. All of this liquidity means that the moves generated in thi s session are all -important, since the amount of money needed to move a market this deep can tell us quite a bi t about market sentiment and positioning. New York Although New York comes in second to London in terms of vo lume, trading fall s off precipitously after 12 pm.
To the yen or Aussie trader, the first couple of hou rs after Tokyo opens are all-important since they usually feature most of the fireworks in this session. The lack of market depth means thaI. London, on the other hand. Although the ini tia l moves may not begin in London, thi s is where the large players operate and get a chance to swing their big sti cks.
Moves initiated and extended in London should be taken seriously since it is the on ly money center with deep enough pockets to overco me any "artificial" interference such as central bank interest. Thus you typically see mighty London picking a direction and sti cki ng with it until New York enters the fray , making fad ing moves a dangero us spo rt during these hours.
Liquidity map. Light sect ions indicate deep liquidity, darker ones are "thin" market hours. By the time North America opens for business, the FX baton has been passed around and by th is time most intra-day bets have already been placed. In the first hour of trading, New York traders high on triple espressos will typ ica l ly take it upon themselves to extend any moves initiated in London, trying to squeeze Qu I the last pips from the market before the economic news hit the screen s.
However, because these releases can have dramatic effects on the dollar thi s rapid fe-evaluat ion combined with dealer manipu lation creates some difficult situations for day traders. Vou often find reversals starting in thi s way: at around lOam New York time. Now, if you arc a trader in Europe who is about to head home for the day.
You are careful to tip-toe your way out the door instead of rushing for the cxits. Of course, everyone is thinking the same thing, and the greater foo l theory takes over to get the ball rolling aided by the liquidity crunch. This creates a sudden ru sh in activity that can easily turn winners into losers or losers turn into di sasters. To the nimble intra-day swing traders these late morning New York reversals are a gold mine. A pivot point is that special line in the sand where most traders turn from being bearish to bu ll ish or vice versa , and just like in sports when you feel the momentum shift from one tea m to another, these "shifting points" ca n be used in FX to tell if sentiment has sw itched to being positi ve long or negative short.
This lets you get a feel for the market sentiment, and basically means that if the price is trading abo ve the pivot, you wallt to play onl y the long side, and if below, the short side. C IT-Flnance. Although you should not trade the break of this pivot. By applying this filter to our technical signals. All FX traders suffer the consequences of following the market, and you can usually identify them by the bags under their eyes and the Reuters machine next to their bed.
Depriving you r body of much-needed sleep is so meth in g that many new retail traders overloo k to their detriment, and understanding when to trade ca n be just as important as when to tmdc. Professional FX operations keep up wiLh the market by employing 24 hour trading desks with two or three shifts, splitting up the day's time between traders.
Ailhough Lhey may keep some odd hours. FX dealers Slill wake up, go La work. Similarly, a retai l trader cannot possibly hope to keep up with the whole market and must learn to manage their lime accordingly especiall y for those trading from home. Spending 20 hours a day in front of the sc reen is si mpl y not a good way to foster lon g-term success, since it will eventually eat into you r decision-making and social! New traders must become comfortable with the fact that moves will occasionall y be missed, bUl in general all traders should try to trade the London-NY overlap, since that is where the market is at its deepest and the moves offer the best opportu- nities for day traders.
If seen on a graph, the daily currency trading turnover would feature spikes of activity during the major money center hours and Aatline near some predic table times of illiquidity and abnormal moves. San Francisco never blossomed into the bridge between NY and Tokyo, leaving a liquidity gap between 3 and 7 pm NY time , making for thin markets and abnormal spikes caused by stop-h unting.
YOli want to make it a point to trade no more than two of the three trading sessions. For thi s reason. More likely tha n not you will find the price exactly where you left it. When markets are referred to as being "thin" or " Iight", it means that there is simpl y not enough liquidity buyers and sellers to create a deep and balanced market.
In these situa- ti ons, transacti ons that would normall y be absorbed by an active market can have unusu all y large and usuall y unpleasant ramifi cati ons on price. Thin markets are often used to run stops by dea lers and specs ali ke, since thi s is when they get most bang for their buck. Thus liquidity-challenged hours iate NY, Sydney are prone to see jumps, ga ps, and generall y unaccounted for moves. It makes sense that markets would be th in right before a major economic release, since most people do not want to take a pos it ion gamble ri ght befo re the numbers.
Prices become jumpy, spreads wide n, and stops gel ki ll ed. You can also hedge your positi on with a high ly corre lated pair i. Thc last thing you wa nt is to have your position taken Ollt by a single blip. NFP, etc. This is the kind of setup that dea lers love to explo it, and if you recognize it so can you.
Trading Thin Markets 85 Look ing for a qui ck trade before th e weekend. Joe Tmder will buy near the bottom see above hopi ng to catc h a qui ck over-sold bounce. He pl aces hi s stops below the day's support and is in the trade more because he is bored th an because o f his co nvicti ons. Smart traders will recognize th is leve l and know that before everyone heads home for the day one fi na l stop-hun ti ng move is probabl y on the cards.
After London goes ho me fo r the weekend. All that you have to do is iden tify the setu p and go short with the dea lers as soon as the rate approaches the support level. Added tooltips for the Buy, Sell and Close buttons in trade dialogs. The tooltips contain information about the security to be bought or sold during the operation, to help beginners understand the trading process. To use the functions, add the main library file into your program:. Mathematical statistics functions have been included into the Standard Library.
MQL5 now provides the functionality of the R language , which is one of the best tools for statistical data processing and analysis. The statistical library contains functions for calculating the statistical characteristics of data, as well as functions for operations with statistical distributions:. To use the library, add the file with required functions into your program, for example:.
The Fuzzy library implements Mamdani and Sugeno fuzzy inference systems. A detailed description of the library is available in the Code Base: Fuzzy - library for developing fuzzy models. Fixed calculation of commission as a percentage per annum during testing. Fixed calculation and display of balance on the chart generated in the process of testing.
After two months of public testing, the web version of the multi-asset MetaTrader 5 platform has been officially released. It allows trading Forex and exchanges from any browser and operating system. Only Internet connection is necessary, no software installation is required. The application combines the key advantages of the desktop platform high speed, support for multiple markets and expanded trading functions with the convenience of the cross-platform nature of the web terminal.
The key feature of the release version is the depth of market, which was not present in the beta version. The web platform allows traders to perform technical analysis and trading operations just like in the desktop version. The web platform provides the following features:.
Let us consider an example of the Si New current prices are received in a price stream:. A trigger for Stop-Orders of exchange instruments is the Last price. In the earlier versions, the same price would be used to execute this order. The beta version of the MetaTrader 5 Web Platform has been released.
The new product combines convenience and cross-platform nature of the web terminal with the advantages of the desktop version of MetaTrader 5 — speed, support for multiple markets, and expanded trading functions. You only need to have an Internet connection.
No additional software is required. Netting system With this system, you can have only one common position for a symbol at the same time:. It does not matter, what has caused the opposite deal — an executed market order or a triggered pending order. Execution of both deals resulted in one common position of 1 lot. Hedging system With this system, you can have multiple open positions of one and the same symbol, including opposite position. If you have an open position for a symbol, and execute a new deal or a pending order triggers , a new position is additionally opened.
Your current position does not change. Execution of these deals resulted in opening two separate positions. New trade operation type - Close By The new trade operation type has been added for hedging accounts — closing a position by an opposite one. This operation allows closing two oppositely directed positions at a single symbol.
If the opposite positions have different numbers of lots, only one order of the two remains open. Its volume will be equal to the difference of lots of the closed positions, while the position direction and open price will match by volume the greater of the closed positions.
Compared with a single closure of the two positions, the closing by an opposite position allows traders to save one spread:. In the latter case, a "close by" order is placed. Tickets of closed positions are specified in its comment. A pair of opposite positions is closed by two "out by" deals.
The tickets of orders and positions including history orders are not preserved during import, because one history record from MetaTrader 4 can be imported as up to 4 history operations in MetaTrader 5. New tickets are assigned to all trading records. The account numbers can be preserved or replaced depending on how the broker imports them.
Watch this three-minute video and develop a trading robot without writing a single line of code. What's new in MetaTrader 5 The history of updates of the desktop, mobile and web platforms 21 July Terminal Now it is possible to create custom financial instruments in the terminal. Using the new option, you can create any symbol, configure its settings, import your price data to the symbol and view its charts.
Creating a Custom Symbol Open the symbol management window using the context menu of the "Market Watch" window and click on "Create Custom Symbol": A large number of symbol parameters can be configured. The full list of parameters and their description is available in the documentation. You can quickly configure your custom symbol by copying parameters of any similar instrument and modifying them. Select an existing symbol in the "Copy from" field.
The name of the custom symbol must not match the names of symbols provided by the brokers. If you connect to the server, on which a symbol with the same name exists, the custom symbol will be deleted. The price history is stored in the form of one-minute bars in MetaTrader 5. All other timeframes are created based on these bars. You can also import data of higher timeframes, but charts on lower timeframes will have gaps in this case.
For example, if you import one-hour data, one bar per hour will be shown on the M1 chart. Terminal Added access to the bar and tick history. Now, it is possible to download the full 1-minute and tick history from the server through the trading platform interface, not only using the MQL5 language. Access to price data is expanded as part of preparations for the launch of custom data-feed functions. In the near future, the platform will provide the possibility to build charts based on users' price data, as well as to create synthetic symbols and use offline charts.
To download the data, open the symbol management dialog from the context menu of the "Market Watch" window: The dialog features two new tabs: "Bars" and "Ticks". Select the symbol, the desired time interval and click "Request".
The platform will request from the server all available data, and will immediately display the data if they have already been downloaded. Saved price data can be exported to a CSV file. Added display of time with a millisecond precision for positions, deals and orders. In the trade dialog, fixed notifying about the refusal to execute a Close By request. The function could occasionally select a position different from the one having the lowest ticket number.
Fixed operation of the CopyTicks and CopyTicksRange functions when requesting very deep tick history data. Signals Fixed copying of operations that increase the size of an existing position. The error could occasionally occur on netting accounts. Tester Fixed processing of limit orders for exchange instruments. Orders placed better than the market the buy price is below the market price or the sell price is above that are executed without slippage.
Orders placed worse than the market or at the market price are executed immediately at the market price as of the order placing time. Updated documentation. Terminal Updated the showcase of the MetaTrader Market store of applications. Now, you can browse through trading robots and technical indicators more conveniently.
We have updated the design and added product selections: The main page now features popular experts, indicators, new Market products, as well as top free applications. The Experts, Indicators and Utilities sections now have subsections: grid and hedging robots, trend and multi-currency indicators, and much more.
Fixed the client terminal update and built-in purchases in the Market, Signals and Virtual Hosting when using a Windows account with limited rights. Fixed occasional incorrect sorting of position history. Optimized and fixed display of the Exposure tab. MQL5 Added support for overloading template functions using parameters. For example, we have a template function that writes the value of the second parameter to the first one using typecasting. MQL5 does not allow typecasting string to bool.
However, we can do that ourselves. In case the upper and lower line coordinates coincide, a thin line is drawn. The parameter is set by the ChartSetInteger function and allows hiding all price chart elements to create a custom program interface.
Fixed re-encoding of bit images when placing them to MQL5 application resources. Fixed printing structures using the ArrayPrint function. Updated the MQL5 standard libraries. MetaEditor Added translation of the user interface into Malay.
Tester Fixed the CopyTicks function operation in the strategy tester. Fixed sorting Withdrawal trades when generating a report. Fixed modifying pending orders. Terminal Fast switch between the 'Toolbox' and 'Strategy Tester' windows. New option allows editing prices and volumes of orders using the mouse wheel: Now, when you go to download mobile terminals, the list of your trade servers is remembered.
Then, when you install MetaTrader on your iPhone or Android device, a ready list of servers will be shown to you. You can quickly connect to your existing trading accounts. The server of the currently connected account will be displayed first in the mobile terminal. Significantly reduced load on the terminal, created by invisible minimized charts and objects.
Fixed occasional incorrect triggering of trailing stop levels. Fixed filtering of trades by symbol in the account trading history. Fixed display of the 'Type' field in the history of positions. Fixed presentation of the trading history in the form of positions. MQL5 Fixed template typing using a constant pointer. Fixed control of access to private and protected class members.
Tester Fixed activation of limit orders on Exchange instruments, when the order trigger price is worse than the current market the Buy price is higher than or the Sell price is lower than the market price. Removed restriction connected with testing of custom indicators having more than 64 input parameters. Added UI translation into Hindi. Terminal Now trading history can be additionally displayed in the form of positions.
The terminal collects data on deals related to a position position opening, additional volume, partial and full closure , and then combines the data into one record providing the following details: Position opening and closing time determined by the first and last trade respectively Position volume.
If part of the position has been closed, the record contains the closed volume and the initial volume The weighted average position opening price and its close price The total financial result of deals related to the position On hedging accounts, the new history form is similar to the account history used in MetaTrader 4.
A new command has been added, which allows visualizing trades on a symbol's chart. Appropriate deals will be displayed on all currently open charts of the selected symbol. If there are no open charts of that symbol, a new chart will be opened. Click "Add All Deals" in order to show deals of all symbols from the account history. Appropriate deals of corresponding symbols will be added to all open charts. Added display of the international name of a trading instrument in contract specification, as well as search by the international name in symbol management dialog.
Added command for terminal window resolution setup. The function will be helpful for making videos. The menu provides the most popular resolution options used in various video services, such as YouTube. MQL5 Added support for resource variables.
Development of some programs can be greatly facilitated by using such variables. Before the update, such a code needed to be described as one large string variable. If BOM is absent, encoding is defined by the file contents. All strings are converted to Unicode. Data of such a resource can only be addressed via a variable. The special bitmap resource variable type shows to the compiler that the resource is an image.
In this case, the resource variable gets the uint type. When using a bit image, the alpha channel component is set to for all the image pixels. When using a bit image without the alpha channel, the alpha channel component is also set to for all the image pixels. When loading a bit image with the alpha channel, the pixels are not processed in any way.
The bitmap type array resource variable may have two dimensions. If the resource file size is not a multiple of the array element size, the remaining data will be cropped. Examples of Use resource "data. If false, drawing of any price chart attributes is disabled and all chart border indents are eliminated, including time and price scales, quick navigation bar, Calendar event labels, trade labels, indicator and bar tooltips, indicator subwindows, volume histograms, etc.
Disabling the drawing is a perfect solution for creating a custom program interface using graphical resources. Added new functions for working with OpenCL. The OpenCL program kernel handle is passed as the parameter. The OpenCL program kernel handle, the number of the OpenCL function argument and the buffer size are passed as parameters. The number of open positions simultaneously present on an account can be limited by the server settings. The limitation operates differently depending on the position accounting type: Netting — number of open positions is considered.
When a limit is reached, the platform disables placing new orders whose execution may increase the number of open positions. In fact, the platform allows placing orders only for the symbols that already have open positions. The current pending orders are not considered since their execution may lead to changes in the current positions but it cannot increase their number. Hedging — pending orders are considered together with open positions, since a pending order activation always leads to opening a new position.
When a limit is reached, the platform disables placing both new market orders for opening positions and pending orders. Fixed error that could occasionally cause skipping of ticks in the tick history. Fixed indirect template typing errors. Updated library of mathematical statistics functions. Added TranslateKey function that returns a Unicode character by a virtual key code considering the current input language and the status of control keys. The function uses ToUnicodeEx to convert keys pressed by a user into Unicode characters.
The library allows to quickly create histograms, distributions and line graphs right on the price charts. Added the identifiers of the state of system keys to the list of constants of Client Terminal Properties. Disabled the support for casting of string type to bool. To check strings, one needs to use explicit conditions. For example, in the new build, compilation of the following code will result in an error: string str; We have added the two-factor authentication option using one-time passwords, which improves protection of accounts against unauthorized access.
In order to enable the two-factor authentication, launch the MetaTrader 5 mobile application. The OTP generator can bind all your trading accounts and automatically generate a unique one-time six-digit password for each account. Enter this password when logging in to the web platform. Another new option allows changing the master and investor passwords. Take this opportunity to create an easy-to-remember personal ID.
Also, the updated web platform can automatically generate demo accounts. Now, you can launch the MetaTrader 5 Web platform from any browser and start trading Forex, Stocks or Futures financial instruments immediately. Terminal The order of entries in the terminal and MetaEditor journals has changed. Before the update, the latest log entries were featured first. Now the oldest entries are shown in the beginning of the journal.
A more conventional reverse sorting order makes reading the journal easier. In addition, it is now possible to hide the 'Time' and 'Source' columns using the journal context menu. In the hedging mode, the ticket of a closed position is now displayed for the orders and deals in the trading history. This makes it easier to find related opening and closing operations. The error could occur when using One Click Trading functions for example, from the chart or from the Market Watch window in the hedging mode.
Fixed display of arrow objects on ultra-high-definition screens 4K. MQL5 A new ArrayPrint function has been added, which prints simple types and structures to the array log. If you want to print all fields of a structure, you should use a custom function for the mass printing with a desired formatting.
The new behavior allows optimizing memory usage in MQL5 programs. We have thoroughly checked the quality and accuracy of all functions both in the MQL5 version and in the source R language.
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Attached Files LoopbackTester. Last edited by Fabian; at PM. Last edited by d. Originally Posted by d. I have 16 inputs. What exactly is the plugin looking to see, as a return signal? I think what happens is that the Lynx double-buffer protection kicks in. Anyway, the point is that accurate latency testing can only be done on the exact session you want to know about.
Last edited by Cableaddict; at PM. I actually find it surprising that this is still somewhat unknown to so many users. Originally Posted by Cableaddict. Originally Posted by karbomusic. T It doesn't really matter what the factors are, just compensate for them.
Midas MR18 gives me about 1. Of course, if this is a reliable measurement way. So I guess not bad huh? Thread Tools. All times are GMT The time now is PM. User Name. Remember Me? Mark Forums Read. Attached Files. Send a private message to Fabian. Find More Posts by Fabian. Send a private message to d. It is recommended that prior to using this document, you read the document to make sure you understand what types of problems with a T1 warrant consideration of the ADTRAN hardware as a possible issue.
If provisioning a T1 connection for the first time, please see the Useful Links section of this document to find the proper document to verify your configuration. If you would like to a video demonstrating the troubleshooting steps in this document, please see.
Note: The E1 is a international equivalent of the T1 interface with some slight differences. However, this document does also apply to the E1 as well provided you substitute the "T1" in the commands given with "E1". Sections Included in this Document. Hardware and Software Requirements. Equipment Needed to Perform Loopback Test.
Actions to Take Based on Test Results. Useful Links. Please see the for products that support a NIM interface or built in T1 modules. A loopback test is performed by sending a quasi-random test pattern from the router and looping it physically back to its own receive lines.
To perform this test, a T1 "loopback plug" is required. One can be made from a piece of Ethernet cable using the document. However, it is considered beginner level as it only requires a few simple commands. To run the T1 loopback test, you will need to unplug the T1 connection from the network, meaning that any services that use it will be down for the entirety of the testing.
If you have multiple T1s linked together in the same PPP or Frame-relay bundle, this will just result in loss in the bandwidth of the individual T1 you are testing and not your entire network connection. This may need to be changed during the loopback test so it is important to take note of the setting before starting the test as to make sure it is set back correctly afterward.
If this is not done, the T1 interface could take errors from clock-slips or clock mismatching between the separate ends of the T1 connection. This command is shown below:. Building Configuration. Notice in the above output, the clock source is set to line. In this example, this would need to be set back to line after the completion of the test.
Slots are numbered left to right and the ports are numbered left to right on the individual NIMs in each slot. Therefor the slot will always be "0". Before beginning the test, insert the connector coming out of the T1 port on the back of the unit into the loopback plug you created or received.
Once it is connected, you should see the associated light for the T1 this will either be a "net" light or a "wan" light turn Green. On the CLI, you should see an event if events are enabled showing the T1 interface coming up.
Mathematical Algorithm for trading FX Market A backtest study was conducted for an asset of B3 (Brazilian stock exchange), which demonstrated that the. proficient at it, will enable you to backtest trading strategies much Maybe you will want to upgrade your Internet connection to a T1 line, too. Call with failed continuity testing and successful re-check. (continuity test report) which will then remove the loopback from the circuit.