As it turned out, he was using the same charting package I use and had used the back test facility to go over years of data to come up with the method he now used. The method itself was a simple, sound little technique but his money management control was brilliant and that was the genius of his method.

So far there was nothing unusual about this other than he was using the back testing facility. If you have only started trading in the last few years this might not seem unusual to build a little code and go back and test lots of ideas. For me it is different. I started when most charting packages never had this facility and I did everything the hard way. I would sit with a notepad, come up with an idea and literally go over every bar on a chart for the last 10 years. This could take weeks.

Because that’s how I started I never really got out of the habit of doing it any other way. I have lost count of how many of these notepads I have dotted around my office. I have always continued doing it this way until a few weeks ago.

Anyway, He agreed to help me learn a little code in exchange for some help with his approach to the market. Even then I wasn’t particularly enthusiastic about the idea as I have become pretty set in my ways and comfortable with my trading style.

This was all done via email, but luckily he was very good at explaining things and after a few more emails I was beginning to get the hang of it.

Welcome to the 21st century — following his instructions to the letter, I opened up the box he told me to on the charting software and entered the code then pressed the button — BANG. In about 30 seconds flat this thing had worked out the profit and loss of 10 years of data. I sat looking at this for over 10 minutes thinking of the possibilities.

In the past, every time I had a new idea or combination I wanted to test I would write it down for testing later when I got time. With this new power I could do all this in minutes.

After that I idly started messing around with the code and couldn’t get it to work. When I put in my own formula and hit enter nothing happened or I got an error message. I knew immediately this would take some studying.

Luckily I am a fast learner and within an hour or two I had mastered a few basic formulas. I got so involved in this that I missed lunch, dinner and before I realized it, I had been at it for 20 solid hours.

The following days where no better. I stopped watching the markets and even phone calls and emails where beginning to bug me. All I wanted to do was test. This thing was becoming addictive.

The thing that got me hooked was actually a mistake. The first working formula I used gave a result of a 93% accuracy making astronomical amounts of money. It wasn’t until later in the day that I realized that I had made a mistake in the formal and I was calculating the wrong thing.

If you think back to when you started trading, you probably used one of the standard indicators in the standard way. After all, it was your only reference point.

My experience has taught me that most of the indicators don’t work well in the way that they where designed. Now, this is where I can be of some help.

I don’t claim to be a guru or a genius at anything but I do often have an unusual approach to things and here is an example.

Let’s take a fairly typical simple moving average of 50 periods and test it. If there is a close of the daily bar above 50 MA then we will go long and if there is a close below the 50 MA then we will go short. This is a SAR trade (stop and reverse), which means the long position will stay open until we get a short signal at which time we will reverse and go short. This is what you will come up with if you test this idea on the daily bars of the spot Pound/Dollar currency pair (GBP/USD).

Now as soon as you see these numbers it will make most trades walk away. There were a total of 196 trades and only 19.4% of them where profitable and to cap it all it was a loss overall. But wait, there is more here then meets they eye and this is the point I want to make. Be different. If you do the same as everyone else you will get the same results. You only need one little thing that works regardless of how weird it is to make serious money.

What would happen if we had done exactly the opposite of what everyone else would have done. What would happen if we went short when the close was above the average and long when it was below the average?

Again you would have made 196 trades but you would have been correct an incredible 80.6% of the time. The largest loss of -2208 wouldn’t have fazed me, as I know that once I start adding stops and limits it would take care of it. I also know that if something is profitable in its basic form it will generally become more profitable once good money management has been added.

Sounds impressive. However I wouldn’t trade something like this because for every trade you would pay a 5 pip spread, which means it would bring your profit down to 2770 over 10 years to give you an average of 277 pips per year or 14 pips per trade. That’s just not enough juice for the effort. Don’t try and trade this, I am just making a point with the example.

Over the two-week period I tested hundreds of combinations and came up with at least three viable methods. If an old fart like me can do it, you can do it to.

The point is that all the best results of my testing where when I tried weird stuff. Doing the opposite of what an indictor said I should do or using them in an entirely different way.

If your charting package doesn’t have the ability to do back testing or you are on a limited budget don’t worry. Just get out your notepad and start writing.

Start with an idea. Go back through as much data as you can get your hands on. A hundred trades are not enough. You really want to test thousands of trades if you can. You also want it to work on more than the market you normally trade. If you are trading stocks, test it on all the stocks you trade not just one. If it is a good system, it should work on anything.

Just because your method might be discretionary (you decided when to enter or exit a trade) doesn’t mean you shouldn’t back test it. Go through all the charts you can get your hands on and go through each scenario and make a note of whether you would have made a profit or a loss on each trade.

Some methods can’t be back tested because there are too many variables. Especially if each trade set up is different form the next. But test the parts you can.

New traders are obsessed with the entry point – don’t be. The object of trading is to get an advantage. There is nothing wrong with having a system that only has a 30% win rate if overall you have a profit.

There are two main approaches to building a system. You either have to have an advantage of more winners than losers or your winners have to greatly outweigh your losers. If you can invent something that has the advantage and your winners greatly out number your losers then you win first prize.

The common thread that ran through all the methods and systems I have tested is this — money management is easily the most important part of any approach. How you control your loses is probably the most important thing you can do in trading. Even a badly designed method or system can look good if it has good money management. On the other hand, there is no system that will survive bad money management.

Last thing — try and keep things simple. I know there are bright sparks out there that test banks of information with various types of sampling but your approach must be robust and robust approaches tend to be simple.

Independence is indeed a great advantage of having actual time rates displayed. This makes them less dependent on brokerages or foreign exchange bureaus for their needs. Real time FX has made it possible for the trader to monitor everything whenever they want from wherever they want.

That’s up to you. The earning potential is limitless in forex. You can make money fast and easily in forex. Just change your system from making average gains, to making spectacular gains, with simple changes in trade selection, money management, and mindset.

This just one strategy that a trader can used, this one is based entirely on technical analysis. To be truly successful a FOREX trader needs multiple strategies that they can employ based on market conditions.

Becoming a successful Forex trader basically comes down to four things; 1) attaining the correct education, 2) using Forex tools which 3) use your own personal trading strategy, and 4) finding the correct Forex broker to fulfil your requirements.

If you want to be a successful FOREX trader then you need a plan or a strategy to help you decide what trades to make. There are many different types of strategies but none of them are a one size fits all. Each trader needs to develop a strategy that suits them and their circumstances. Some traders will rely only on fundamental analysis where others will only utilize technical analysis however it is far more common for investors to use a combination of both.

A Forex trader depends on the rates to make all their trading decisions, and with actual time foreign exchange it makes that job easier. In order to fully benefit from real time Forex one needs to have Forex software, which will assist in displaying any of the latest rates. Everything, including buying and selling, affects Forex rates and that is why having a server that constantly and accurately updates as well as Forex software is very important to actual time Forex.

Another important aspect to actual time Forex is that these rates must constantly and instantly be made known worldwide to Forex traders. This insures no discrepancies. Highly sophisticated trading applications that are written by skilled programmers help make this real time possibility work smoothly and accurately all around the world.

When you initially become involved with forex online trading you might be overwhelmed by all the information available online. This is because so many organizations have been using the Forex to trade for years, and now want to offer their services and advice to the individual investor who is just starting out.

Each day, more and more people begin forex online trading. A great way to familiarize yourself with forex is to go online and communicate with some of these people through online forums. In these forums, you can discuss new trends and how best to act on them, common pitfalls, trading patterns, and safe ways of investing your money.

Another nice thing about trading forex online is that you can keep tabs on what is happening to the foreign exchange markets by using live streaming feeds. You can also get real time charts to follow your trading. With these tools your forex trading can be done wherever you can access an internet connection.

If you’re interested in forex online trading, I would suggest that you take advantage of the training courses, ebooks and seminars that are available on the internet. These will help to prepare you for the world of Forex trading and help you understand the concepts behind it, why people use it, strategies to use, and techniques that will improve your chances of succeeding.

Forex online trading is not necessarily for everyone; some like the idea of making money through online trading, but do not want to spend the time learning how it works. If that is your situation, you can always hire a Forex broker who can advise on you on when and what you should trade. The disadvantage of using a broker is that the forex trading market changes so quickly that a broker’s advice may not be timely enough.

Now that forex online trading is available to the individual investor, you need to decide whether or not to take advantage of this money-making opportunity. Be sure to make use of the many online resources that are available, in order to educate yourself on the proper way to trade on the foreign currency exchange.

Here’s a closer look at how this method works. Let’s say that you start with an imaginary amount of five thousand dollars in your demo margin account. After watching the news reports closely and studying the currency markets, you think the U.S. dollar will increase in value versus the Yen. Since your margin account allows you to buy at a ten to one margin you buy (theoretically) fifty thousand worth of USD and sell fifty thousand dollars worth of the Yen. The difference between the two called the spread is what gives you your profit.

So why would someone want to have a demo account instead of just jumping right in? It’s quite simple really; it makes it easier and less stressful to learn the strategies and techniques without risking real money. It’s like playing with Monopoly money! Why do you think pilots are trained in flight simulators instead of real airplanes before they are allowed to get at the controls of an actual aircraft? I can’t think of anyone who would want to attempt to fly a plane without spending quite a bit of time in a flight simulator first, can you? Look at learning Forex trading the same way. You wouldn’t want to risk your money on something that you know nothing about. So operating a demo account allows you to learn the business without losing money. Achieving success in the Forex trading market depends upon your own instincts and abilities. After trying a demo account, you may find that you don’t have what it takes to be successful at this business. Or you may find you excel at it. It is far better to find out with a demo account how you would fare with real money.

The vast majority of reputable brokerage houses offering Forex Trading make these accounts available because they know that if you study and learn how to trade effectively you will be comfortable making larger trades, which in turn will make them more money. Some charge for the service and some offer them for free but even if you have to pay a small fee while you are learning it is a small price to pay if you are able to learn the skills to earn huge profits in the Forex market.

Gregg Hall

http://www.articlesbase.com/finance-articles/demo-accountsone-of-the-best-ways-to-get-started-in-forex-94849.html

If you want to install the system will of course you can do and there are video tutorials to guide you. Once the installation of this program is concerned. This software will analyze market trends 24 hours a day, five days a week. So if you want to be a trader, you can start by just following the instructions provided with the software and you can succeed. After-sales service they provide is of superior quality. A short turn around to all requests for information is provided by their team. When you compare this type of software, there are factors that can be used to determine their profitability. The winner of this system is the first factor.

For the last 9 years, the FAP Turbo rate has averaged 95%, with success rates higher in the tests online. The circulation of this system is another important factor. Draw down is the number that shows that the largest amount of money lost Turbo PAF during back testing. Samples from 10% to 20% are typical Forex trading software. But the draw on the turbo FAP is only 0.35%. That zero point thirty-five per cent, which is an explanation of why the graphics on its Web site, are regular and not constantly up and down. It is designed to find more profit opportunities than any other software, but also strengthening risk controls. May you buy the software to be tested on a demo account, and if you’re not satisfied, it is 60 days money-back guarantee. The robot Turbo PAF does not require a lot of money to start, since you can start trading with as little as $ 50.

Forex, the word, means FOReign EXchange market. This is an international market where the buying and selling of money is done freely and 24 hours a day. All forex trading involve the buying of one currency and the selling of another, simultaneously. Currency quotes are given as exchange rates; that is, the value of one currency relative to another. The relative supply and demand of both currencies will determine the value of the exchange rate.

Forex Trading, as with any other form of investing, you must be knowledgeable of what you are trading before you can expect to turn a profit and not trade yourself into a financial hole.

Forex trading looks simple but few succeed. A lot of the so called investment wisdom doesn’t work and is given by people who have never traded in their lives. You must always remind yourself that forex trading is so high profitable and riskful that you must do it carefully.

Remember it is margin trading and expanded more than 100 times as your normal investment. You need to ask yourself how much you can afford to lose. Be extremely honest with yourself about this, in fact, be more than honest so that you are sure to not overextend your budget and cost yourself the family home.

Here are some simple tips that will help you increase your profit potential and prevent you from losing money.

1. Select your first broker

When you first decide to trade Forex you will need to locate a reliable broker. It’s very important that you familiarize yourself with the software the broker uses for making trades, analyzing the market and any other features they may offer. Many have a training, or tutorial, account that will allow you to signup and make trades for free. Use this to your advantage before just jumping in and tossing your money in.

2. Get a simple method you understand

In forex trading many people think that the more complicated a method they use in forex trading the more likely they are to make money.

The fact is that is not a truth and the simple systems work best.

As you know, there are two main ways to analysis the currency rate: fundamental and technical analysis.

Simple systems are more robust and easier to trade with discipline, as you understand the logic and can therefore follow it with confidence when it has a losing period.

3. Trade the big trends and not trade frequently

Although short term trading and long term trading are both good, you have to catch the big long term trends that make the big profits.

The big moves in forex trading, with optimum risk to reward, come just few times a year, so don’t trade for the sake of trading and wait for these moves – These are the ones that will make you the big profits and that’s why you’re trading.

4. Work smart and not hard

Once you have a system your happy with that’s it. People go on about working hard in forex trading to educate yourself but once you have your system stick with it. The market doesn’t give you extra dollars for effort, you get your reward for trading correctly.

Forex trading is risky, so you need to manage your money and place your stop order far enough away from the market action to allow for volatility.

Placing stops too close to entry and not taking enough risk dooms most traders to fail.

Also when you have a profit don’t move the stop up to quickly, be patient and give the trade room to breathe.

5. The formula to success

The formula to success in forex trading is to do the following:

Using Simple Method + With Discipline + Control Risks = Forex Trading Success

Keep these simple tips in your mind and you could make some big profits on forex trading.

bing zou
http://www.articlesbase.com/currency-trading-articles/how-to-do-forex-trading-121336.html

Many Traders failed to make money from trading because of the wrong information and wrong tools that they have been using. Now that the opportunity to make a winning edge is in front of you – with the new Forex Autopilot Software.

You should always take into account that in the any Trading the winning key is to know what to do and when is the perfect timing. And this is exactly what the Software shall give you. It is the exact knowledge and training tool that gives you the winning edge and the ability to supercharge your income. Just to remind you, this is a real business you own and run and it shall produce you passive income like nothing else on the planet. This fact is for Real!!

Detail Analysis -

Unlike the rest, the Forex Autopilot enables you to generate a steady stream of income on Auto-Pilot, 24 hours a day, 7 days a week, 365 days a year. This trading system is based in more than 20 modern trading indicators such as Alligator, Fractals, DeMarker, William’s Percent Rate,etc. The software enables you to detect good trend, confirms it using internal indicators and opens the trade to generate maximum profits for you. It does not use fix stop/loss parameter to prevent getting losing trades.

Forex Autopilot Advisor monitors each open trade carefully and closes it if reaching take profit limit when the trade is successful. If the trade is losing, the system closes the trade using the signals of its internal indicators to prevent draw downs, hence, resulting in ZERO RISK and providing the trader with safe trading.

The software determines the most profitable time to enter and exit a trade. Essentially you start the system and it shall trace it for the most opportune entry point, and then cease trading at a point where the risk becomes too great. There are some important points to note, i.e., it generates and trades Forex Signals on Autopilot, they have informative and interactive video tutorials, based on popular MT4 Platform, member in more than 100 different countries, step-by-step guidance installation instructions, provides a DEMO Account for newbie traders to practice, and more.

Just like with stock trading, there are a large number of software programs you can use to make your foray into the foreign currency exchange markets. You will find that you have two basic choices, either web based or desktop based programs. Which way you choose to go is entirely up to you. If you travel a lot you may want to opt for the web-based variety instead of having to haul around a laptop and trying to find a good Internet connection for it.

Most of the more reputable Forex brokers offer software programs to their clients at no charge, however the software they provide is usually very rudimentary at best and you may have to pay more to get the features you really need. This is another issue to consider when choosing a broker to handle your exchange business. Many Forex websites have free demo accounts available which will allow you to experiment before you get locked in with one company or spend your money on something you don’t like.

Since the Forex market is constantly changing and evolving you will also want a software program that changes with it. Another issue that is absolutely crucial to your success in the Forex markets is a super fast Internet connection. If you do not have DSL, at a minimum you will have a tough time. I recommend broadband. If you have dial up just forget about it. I will tell you again that you need the fastest Internet connection you can afford.

Another really important issue when considering a Forex software program is security. As a rule, web based software programs are much more secure than the ones that you install on your desktop. The problem with desktop software is that it opens you up to a wide range of possible security breaches that could possibly leave your personal financial information vulnerable. Not only do you have the issue of viruses and Trojans, but you are also opening yourself up to loss of data due to hard drive crashes. When you add the possibility of hackers getting into your system, that adds even more skepticism about using desktop based programs.

With web based software programs the majority of the security and maintenance issues will be taken care of by the software provider. Internet based Forex software systems are hosted on secure servers with the most secure encryption technology available. In addition to the security issue is the protection of having all of your information backed up so it won’t be lost.

As I mentioned in the beginning of the article, another great benefit of web-based software is that it is available from anywhere in the world that you can get Internet access. This is the way I chose to go since I do a great deal of traveling and I liked the fact that the software is constantly updated so I don’t have to always upload a new version to my computer.

Gregg Hall
http://www.articlesbase.com/finance-articles/how-to-choose-the-correct-forex-trading-software-for-you-103087.html

If you plan on learning Forex, or foreign currency exchange trading, software developed automated Forex trading systems will be the way you make your real and your practice trades. Most individuals will start out with a demo, or practice account, that will allow them to simulate Forex trades in order to build their level of proficiency. When choosing Forex software, here are some important considerations to keep in mind.

There are many online brokers that will offer a variety of demo and real accounts that are easy to open, along with a variety of learning resources. Some of the demo accounts may have a small fee, which will usually be waived once you become confident enought to open a real account. It is certainly worth paying the small fee to get started, as the first step toward becoming a Forex trader should be practicing with a demo account.

TO make a profit with Forex, it is essential to develop your skills, and to let the learning curve be with virtual money, rather than with real money. Once you are consistently making a profit, you can then take your knowledge to real world trading, and transition to an actual account. Another advantage of using a demo account is that it lets you become familiar with the software and the system itself, so when you do start trading you will be comfortable and can concentrate on the trades themselves.

Automated Forex trading systems usually come as either desktop-based or internet-based software. The internet based versions usually have several advantages. For example, by using internet-based software, you won’t have to deal with maintainance issues, and the software will usually offer more data security than software that is based on your desktop. Normally, the system will be on a data-encrypted secure server, similar to a credit card, which will protect your security.

An internet system will also be more convenient, as you will be able to check your account anywhere, which can be a plus if you travel frequently, and you won’t have to deal with downloading or storing the software on your computer. However, the effectiveness of internet-based trading systems is also determined by the speed of your internet connection. Having a DSL or a broadband connection is usually the best.

Its worth taking the time to find a Forex software system that works for you. Once you settle on a place to house your demo account, you’ll want to keep your real account in the same place. You can then continue to use the demo account to test alternate moves, and also to shadow the moves you make in your real account, to see if you are being too prone to risk, or too conservative.

Forex trading can be both lucrative and exciting, and its worth spending the time finding a forex software trading system that you will be comfortable with, and that you can understand. Internet-based software offers several advantages over desktop-based software, but whichever one you choose, ease of use and the ability to practice are essential.

Amy Wells
http://www.articlesbase.com/finance-articles/tips-on-choosing-automated-forex-trading-systems-and-software-120575.html

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