Saturday 16 August 2008

Forex trading system

IF you have mastered technical or fundamental analysis, so now you must build some forex trading system through your experience of trading. If you still could not build the good forex trading system then meant you must repeat lessons beforehand. It was not possible for you to take a step more far if you could not build the good forex trading.

Basically all the available matters in and around us always were connected with a system that affected all the available objects in and around us for example our body personally that had the digestion system, breathing et cetera or the other object of air for example or the object anything tried to be paid attention to by you well all of them had the system that terstruktur well..

The system in principle aimed at arranging our steps in doing something. The regularity will cause us to be able to achieve the aim or to take the decision well as well as steps in anticipation or the improvement that will be carried out if something happening that apart from the assumption.

Therefore the trading system was a collection methods trading both technical or fundamental that could guide us did trading in various conditions market and of course produced the profit.


In making one trading system its steps must be carried out was as follows:

Money Management
- Profit management.Determine the profit target that wanted to be reached by you. In reaching this profit target determined whether you will carry out the transaction began lot smallest and increased for example the first transaction 0.1 lot, the two 0,2 lot et cetera or the use lot certain that was appointed by you stagnantly in each one of your transactions to receive the profit.
- Risk management.Determine the level stopped Loss (SL) that will be used by you or that could be borne by you in each transaction that was carried out by you. Remember always the pair stopped loss when you carried out the transaction. Although the risk will always be then there the role stopped loss to reduce the risk that must be borne by us. If your transaction touched the level stopped loss had several steps that could dlakukan as follows:
a.Switching (returned the direction): If you received signal for example buy and evidently the descending price touched the level stopped loss you then you could be opened sell. If you took this step then observation before the movement of the price that happened along with indicators that you with to see whether still enabled to do switching or opened again the position buy earlier because moment the decline in the price that happened was finished and the rising price came back.
b.Averaging (in general): If you for example to be opened buy and evidently the price went down after stopping loss affected then you will at once open the position buy again with lot that was bigger than the first transaction that meant you opened the position buy that was new in the level of the lower price and with lot that was bigger. Your example did buy of 0.1 lot in the level of the price 1000, SL 950, TP 1010 and the price went down as far as 950 then you will experience the loss of 0.1 x (1000-950) = US$ 5 furthermore you at once were again opened buy of 0.6 lot in the level of the price 950, SL 900, TP 960 for example in this second transaction the price increase as far as 960 happened then you will receive the profit of 0.6 x (960-950) = US$ 6. Therefore your profit was of US$6 – US$ 5 =US$1 that meant the loss in the beginning transaction was covered and the profit as big as US$ 1. used the technique averaging this you continued to have to analyse the available situation good the indicator that was used by you or news that emerged at that time because not necessarily if buy you were affected by the level stopped loss him you will do buy still was caused moment to buy was finished so as could you sell with lot that was bigger to cover the loss as a result of the beginning transaction at the same time received the profit. To do averaging you could prepare him automatically by using facilities pending order.
c.Hedging: in this step you opened 2 good positions buy or sell. Hedging is usually used to keep the loss that happened or was often mentioned locking (locked) for example you opened the position buy but the price went down then you were opened sell then the loss buy you will be kept by the profit that was received from the transaction sell you or also could be used to maintain the profit that was received for example you analysed that trend descended will take place long then you put on sell but at several following hours had the indication of the price will experience the rise then and you too put on buy. After having the indication of the price increase that happened began to descend again then you must melikuid the transaction buy you were temporary the transaction sell you stayed proceeding. Like that henceforth until you analysed the transaction sell long-term you must liquid.

Determine technical or fundamental indicators that will be used by you in taking the decision. In this case technical indicators if it being paid attention to by you often late in gave its signal because that carried out the blend from several technical indicators that was liked by you that aimed at reducing the delay or the sensitivity of an indicator for example you could use parabolic SAR and RSI or other could two or several indicator sorts all of them depended with your observation.

So also with the Fundamental analysis better news that were paid attention to by you were big news to facilitate you in analysed.

Determined time frame that was bigger that was used by you as the foundation of the analysis and time frame that was smaller to mengesekusi your decision. For example you analysed and received signal sell in time frame (TF) H4 then paid also attention to TF H1 whether gave signal that was same? If being received signal that was same then to TF that was smaller so you better begin to carry out the transaction. Like the example along with this:





From the table above for example you used the indicator parabolic SAR and Stochastic oscilator could be paid attention to by you to TF H4 on December 21 2007 at 04.00 SAR was supervised candle and stochastic headed to the side of oversold the same thing also happened on December 21 2007 at 04.00 in TF H1 then you could do buy.



source: somewhere forgetable website




Relative Currency Calculator


A nice forex software tools which function is to know what
currencies are appreciated or depreciated function,for example : GBP last month appreciated function was -1.19% and AUD appreciated function was 1.79%.It means that next month possibly have great chance to gain profit by selling on GBP/AUD pair (resembled the indicator real time ix metre)

 

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