Monthly Archives: July 2017

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Inclined Channels in Trading: How to Use Them

Category : Software

For more than 100 years, the tradershave been analyzing the financial assets movement and every year their tools are being expanded and improved. Some elements leave the fix api traders interest because of the changes in the market functioning as a whole, and some are used throughout this time interval. So, classical tools for predicting the future price movement have become a constant in the technical analysis. Sloped channels can be attributed to the list of such tools.

An inclined channel is a graphical tool for assets analyzing to find a “corridor” for the movement of financial asset quotes. There is a phrase that “the market is walking in the corridor.” The inclined channel allows to define the given zone. In simple terms, the inclined channel is the same supportand resistance levels, from which the asset value is repulsed and continues its movement in the opposite direction.

How to build an inclined channel?

To build an inclined channel it is necessary to draw two parallel lines to each other. Classically, it is necessary to stretch the first line through two points, the boiler ones will be support or resistance, and the second line only through one point of the local maximum or minimum, depending on the directed channel. And that’s all. The channel is ready. But the market does not stand still and is constantly developing, which means that the analysis approach is developing. Some fix api tradersare looking for at least three points on the first line and two on the second. This approach is widely used by our Asian colleagues. Personally, I use the classical technique.

How to apply it in trading?

By itself, the inclined channel will not display obvious signals to purchases or sales. But it will allow you to form an understanding of the trend and the current market phase. Thus, if your trading strategy displays signals for sale, and an inclined channel displays upward values, I would think twice before opening a deal. Conversely, if the TS displays sales and quotes are moving in the downlink, then we can boldly open a deal.

In addition, the channel can be used with the help of two methods:

  • When clearing: when the quotes reach one of the channel’s borders, the trader sets a buy/sell order with a stop loss level outside the channel boundary. After all, the breakdown will testify for the beginning of a new cycle. This approach is the most popular type of work with the channel on the fix apiforex market.
  • In case of breakdown. If the quotes have broken through the upper or lower border of the channel and are fixed above it, then a pending order should be installed at the local maximum or minimum breakdown. Thus, triggering the transaction will be a signal for the beginning of a new cycle and the trend as a whole. The stop loss level here will be much more than the first method, but there is a high probability of opening a trade at the beginning of a new trend.

The principle of the price channel was also adopted by some technical indicators. So the Price Chanel indicator is built on the basis of the minima and maxima of price quotes, thereby forming a channel. The Bollinger Bands indicator (http://metatrader4expertadvisors.com/) is also a certain specification of the channel, the calculation basis ofwhich is the standard price deviation. The principles of the inclined channel are also used in the Ichimoku Cloud indicator.

Undoubtedly, the principle of the inclined channel will not be profitable for those who trade based on the fix api arbitration technique (http://www.forexzzz.com/product/forex-zzz-lock-arbitrage/) or the scalping algorithm. But for other strategies, this will be an excellent auxiliary tool for determining the driving force of the market. I apply this tool when there is no clear wave structure on the chart, and the inclined channel helps me understand which way the quotes are moving.

 

 


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What trading platform is suitable for beginners traders?

Category : Robots

If earlier all exchange transactions were carried out through the exchange tape or landline telephones, today, to work in the financial market, it is enough to have a computer with Internet access, as well as a trading account in afix apiforex brokerage company. The development of the computer systems allows you to conduct analysis of the financial assets movement from your house and to make trading transactions. But to do this, the trader will need at least a trading terminal.

The trading terminal is a platform, on which the quotes of financial instruments are displayed and by means of which the deals are actually concluded. The terminal has a huge functionality, which includes:

  • Ability for graphical analysis;
  • Possibility of technical analysis;
  • Connections to various trading accounts;
  • Use of trading robots in fix api trading;
  • Building your own trading algorithms.

This is not a complete list. The set of these instruments depends first of all on the type of trading terminals, which today are multiple.

That is why, there is a need to choose the most optimal software in the form of a terminal, to start trading in the early stages of exchange activities. Most platforms are complex to use, and they simply are not intended for fix apiforex trading. Therefore, I will highlight two key terminals, namely MT4, as well as cTrader, with which the newcomer can easily cope in the financial market.

MT4

Fix api MT4 trading terminal is the undisputed leader among the programs for trading in the forex market. The thing is that this terminal was developed more than 15 years ago and is free software for traders. However, this is not the only merit of the MT4.

This program has a huge functionality for trading process analyzation and automation.

  1. MT4 has the ability to launch the environment development. Including MQL Editor, you get to the compiler with which you can create your own technical indicators, trading robots, and other elements.
  2.  Algorithmic trading. Undoubtedly, if there is an environment development for this, then the very use of automatic strategies becomes many times simpler. The platform is adaptable for robots. All that afix api traderneeds is to place the software directly in the folder with MT4.
  3.  Access from one platform to any other accounts in different brokerage companies. If you have a trading account with another broker, where the MT4 terminal is also used, then you can log in directly with only one software.
  4.  A complete set of necessary graphic and technical elements. For the beginner, the tools that are in the terminal will be more than enough.
  5.  The possibility of trading through fix api. MT4 can be put to work through a financial protocol, which will allow you to trade under more favorable trading conditions.

cTrader

This trading terminal is a novelty in the market, but has already attracted a lot of traders. It’s all about its key advantage over the fix api MT4 – a glass of prices that allows you to explore the full market depth. A glass of prices allows you to see current players in the market and analyze the market sentiment, which allows you to adapt your forecasts to this information. But at the same time, not many companies give an opportunity to trade on this terminal. This is only an advantage. cTrader does not have its own environment development and a possibility of algorithmic trading. In the terminal new versions, cAlgo is implemented (for more information on this software, see https://www.spotware.com/products/client-side-applications/calgo), which conducts automaticalfix api trading. However, given the complexity of auxiliary software developing, it is much more difficult to find or develop ready solution than for MT4. In other elements of analysis and functional,cTrader is in no way inferior to MT4.

Choosing the most optimal platform for transactions, analyze which of the two tools you can trade with on your broker’s platform. I also emphasize that if you cannottake your choice or you already have one of the two terminals listed above, then there are special programs (connectors) that are designed to work simultaneously on two terminals. So this connector -http://www.forexzzz.com/product/ctrader-connector-via-fix-api/, allows trading in cTrader accounts in MT4 terminal.

I recommend you to choose a trading terminal based on the working conditions of your trading strategy. This will make it clear what tools are needed for analysis, which will allow us to analyze where it is better.

 


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Negative psychological factors in trading

Category : Uncategorized

Trade in the financial market is a very complex process when it comes to the psychological pressure. I agree that the process itself is not difficult, because all that is needed for fix api trading is a working algorithm and the ability to conduct both fundamental and technical analysis. But the whole process is tied up with the capital thus, with money. As we know, it’s impossible to do without losing trades on the market. Each reduction of the capital can “painfully” affect the performance of the manager.

Personally, I believe that psychological factors take half of the success in the work on the financial market. And that’s why they need to be fought with and taken under a control.

I will highlight 5 key psychological factors that negatively affect the work of the fix api trader:

  1. Fear. This psychological factor plays a huge role in the future result. If the transactions are opened because of fear, a large number of profitable entry points will be missed, and deals will be closed even before the take-profit level is worked (https://admiralmarkets.com/education/articles/forex-basics/how-to-use-stop-loss-and-take-profit-in-forex-trading). All this as a complex deprives the trader of the possible profit.
  2.  Greed. Likewise, just as fear negatively affects the fixation of the trading results on fix apiforex the greed also affects it. For in this case, on the contrary, many superfluous transactions will be opened without apparent grounds, which will not have a full analysis or will go beyond the scope of the trading strategy. Moreover, greed will also force the manager to close trading operations even before the take-profit level is worked.
  3.  Courage. When several of your trading operations are successful, the main thing is not to give up to courage. 2-3 operations – this is far from complete statistics. Control this emotion, because it only aggravates the probability for losing position and leads to such a moment as a “transfer” of the stop loss level. It is necessary to give time for analysis of the trade operations. What was the reason for achieving the goal? Was it an accident or a result of the effectiveness of your trading strategy? Only after the analysis of transactions, you can proceed with full confidence in the normal trading mode, while not making rash transactions, because the greed will be involved.
  4.  Uncertainty. Before opening an account in the fix apiforex brokerage company, I recommend you to start trading only after repeatedly testing your algorithm. This will create expectations for future results and building confidence in them. Otherwise, you will not know what to expect from your trading and you will not be completely confident in your trading strategy. Trust the statistics. It indicates the formed trend of your trade. As soon as positive dynamic is visible, it is a signal that you are moving in the right direction.
  5.  Excessive confidence. You need to know the boundaries and similar to the previous negative psychological factor, to not rely on your fighting spirit. After all, if you get unprofitable operations time after time while believing that everything is fine and these are single cases, then you will continue to increase losses. Once again, test your trading, and only then go to the real market.

Undoubtedly, if the whole trade problem lies in the inability to counteract these factors, the perfect solution will be to create a trading robot (http://forexzzz.com/product/forex-zzz-lock-arbitrage/), which itself will conduct analysis and commit trading operations, because the algorithm is devoid of psychological moments. However, if you overcome these five psychological factors, you will be able to reach the desired level of profitability, and also you will be able to increase your capital. Moreover, if you can control these emotions, this will be beneficial for you in other fields besides fix api trading.


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