In a way, the Monetary Model vouches for the immediate depreciation of a currency due to a potential raise in inflation rates. Basically, you can trade in the forex market via 3 ways: the forwards market, futures market, and spot market, with the spot market being the largest among the three. The futures market used to be the most popular market in the past simply because of the fact that it had been made available to individual traders for a long time – before individual investors gained access to the spot market.
The futures and forwards markets, unlike the spot market where actual currencies are traded, involve contracts between two parties representing claims to a specific currency. Forwards contracts are sold and bought over the counter, with the terms determined by the contracting parties. Both forwards and futures contracts are binding and closed with cash settlements upon maturity, although a contract may be sold or bought before its expiry date.
I have some new ideas with regards to either modifying one of my current Forex Trading EAs (Expert Advisor or Trading Robot), or completely building a new one from scratch. Anyway, this article got me thinking about a post I replied to in one of my threads on the Forex Factory Forum, where I spoke about something very similar.
Eventually I will be hoping to offer a signals type service or even manage private investors money using my own EAs and manual trading methods.
Until I work out how to add downloadable files to wordpress ie the EA and custom indicators, I’ll have to re-direct you to my thread at Forex Factory that covers this topic in detail. And as usual, if anyone wants some further info on any of my EAs or trading ideas, feel free to contact me at anytime. Completing this website not only helps up and coming forex traders gain extra knowledge, it also helps keep me accountable. By me posting my methods and also my trading results, it ensures that I put an effort into my trading and take it a little more seriously.
Ultimately if I can prove my trading expertise in the public domain, then I would consider making my services available as a fund manager, which basically means trading other people’s money.
I have a strong interest in developing my own forex trading systems, where I then convert these systems into EAs. EA is short for Expert Advisor, which is just a flash name for a trading robot software that is attached to your trading platform that takes trades on your behalf depending on what your stipulated trading rules are.
Forex trading is not easy, but if you can be consistently profitable with it, the rewards can be great, whether this means lots of money, getting out of your current job, working your desired hours, more family time, working from anywhere you wish etc etc. Warning and Disclaimer : Something I have put here is to advise everyone that Forex Trading is risky. If you want to be kept in the loop and here more about Forex Trading, then just add your email address below. But if you are just starting out as a forex trader and still learning the basics, you are better off focusing on a single pair rather than trying to study several pairs at once. For instance, it goes against a statement of another economic indicator, the Asset Market Model; while the Monetary Model revolves around the reports on current trading accounts, the Asset Market Model gives importance to capital trading accounts.
It can trigger inaccurate predictions due to incorrect employment, but just like most technical analysis tools, its effectiveness can be fine-tuned with brilliant trading strategies and flawless money management skills. For one, the underlying asset that futures and forwards trading are based on the spot market assets.
However, with the advent of electronic or online trading, the spot market experienced a sudden surge in popularity, particularly with speculators and individual investors.
In many cases, the futures and forwards markets are used by large international companies as a hedge against fluctuations in future currency exchange rates. I love trading forex but I don’t want to sit in front of my trading screen all day either.
They also give me the option of setting emergency stops, or outrageous profit targets, just in case I can’t get to the computer for a day or so.
This was designed for trading forex, but I have run a few successful tests on Gold and Oil via the MT4 platform also. That was a a few years back as part of a trading team that concentrated on three currency pairs only, and only traded the 1hr charts. Successfully trading currencies requires a lot of analysis of the market, and it is easier to do that by completely familiarizing yourself with a single pair so that you can more readily identify trading opportunities.
This may allow you to identify trading opportunities that other traders with less knowledge and experience may not see.
The main advantage of trading one of these pairs is that they enjoy a lot of liquidity and have a lot of volatility.
And, if another set of indicators enter the picture, there’s more than 50% chance of establishing strong positions in the forex market. Having said that, I have another EA that does trade a tad more traditionally, and I even keep that pretty small.
This means that they generate strong trading signals that you can easily detect to open a trade. Anyone that has seen any of my threads in this forum will know that I tend to look for slightly obscure ways to trade.
All my accounts are set up for hedging, so no problems being long and short at the same time on the same pair, which does help with margin issues.
This has had some pretty good results in back testing to date, so I have just lowered my base lot size initially just to see how it performs under forward testing. It may look easy this forex trading, but believe me it isn’t, and you will suffer losess along the way. Other characteristics of currency pairs that you need to keep in mind is that they behave differently at different times of the trading day and their values move at different speeds. If it isn’t working or you are getting the same crappy results, then it may be time for a change. Anyway, I’ve started a thread over at Forex Factory about this system, so instead of doubling up with all the same information, just go to this link and check it out.
This style of trading does take a little bit getting use to as the majority of the time, your account will be in drawdown which would make some traders very nervous.
Anything I write on this site is not to be considered financial advice, so don’t follow my trading. Most of you know I basically use the same two custom MT4 indicators for most of my trading, that being the MACD Platinum and the QQE Adv. So be warned, this trading can be a risky business, so protect your capital so you live to trade another day.
I keep it pretty simple, normally trading off a small time frame in the same direction as a larger time frame.
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