Monthly Archives: May 2018

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Technical figures as a reliable asset analysis tool

Category : Robots

Each trader has his own tools for financial asset analysis, which are combined into a single trading strategy. It is the way the analysis will directly influence on the obtained financial result. Therefore, most fix api traders use classical elements in combination with their approach, because exactly what has been tested by the market for years is able to give a positive result. One such approach is the use of technical figures.

Technical figures are combinations of price quotes that are combined into a set of defined configurations to display a trading signal. These configurations were developed by the majority of market participants and, in the modern interpretation, received tremendous support from stock speculators.

Technical figures can be divided into two key types: trend continuation and reversal.

Figures of trend continuation

Patterns of this category allow you to determine the further trend movement. So, after the impulse growth or decline, a signal can be generated that will indicate the fix api trader that the movement is not over yet and we should expect the price quotes to continue moving to the direction where the price has directed its movement. Technical figures of this category are perfectly combined with signals for channel breakdown or support/resistance levels.

  1. Flag/pennant: these figures are formed in a monotonous manner and are based on an impulse movement, which forms a sharp volatility of the price quotes. After this jump or downturn, a zone of trading is formed, according to which we should expect a growth continuation on the length of the technical figure base.
  2. Triangle: this figure shows the channel narrowing. Quotations of the currency pair should show a consistent decrease in the local maximums, as well as the growth of the local minimums. After the fifth touch of the inclined lines, a breakthrough should occur and the price, according to this technical figure, will be half the length of the beginning of the technical pattern formation. A feature is the ability to set two pending orders (for buy and sell) and enter the trade at any breakdown of the triangle.

Trend reversal patterns

  1. Double bottom/top is formed by double swinging of the same price level. So, if the quotes have reached a minimum and two times have gradually tested these marks, we should expect a retreat from these minima and an increase from the figure’s base to the pivot point (in case of a double bottom). The signals of a double bottom or a vertex are formed identically, but mirror each other.
  2. “Head of shoulders”: the formation of this figure is very similar to the double bottom/top. The only difference is that the formation of this pattern involves three vertices with an explicit peak in the center. The breakdown of the figure’s base will indicate a change in the trend and movement, which will be equal to the length from the central peak to the base of the figure.
  3. Pin bar (http://forexrobotsreview.eu/2017/07/19/pin-bar-pattern/ ): a reversal combination that can indicate to the trader at what moment a power shift occurred in the fix api forex market. Formation is formed when quotes close below the opening price after intensive daily growth (signal for sale on the daily schedule) or after the price of the asset closes above the opening price after an intensive daily decline (buy signal on the daily schedule). This signal is in disagreement with the trend, so you should set short levels of loss fixing.

All these signals can be combined into a single trading strategy, and they will perfectly fit in combination with other elements of analysis. Moreover, the use of these figures is possible in the algorithmic trading (http://forexzzz.com/product/zzz-latency-robot/ ), which improves the quality of trading and increases the financial result. Therefore, I strongly recommend that everyone takes a closer look at this classic element of financial assets analysis.


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The Pitfalls of Algotrade in the Brokerage Companies

Category : Robots

Information technologies flooded the financial sphere. The level of Internet banking and remote systems for making transactions grows each and every day. It’s great when we do not need to wait in lines to pay our bills, but just get the phone and pay for a product or service in a few clicks. Financial markets have also come under the influence of the Internet, and today you do not need to call the broker or send a fax to complete the trade. It is quite enough to have a computer with Internet access and by clicking on the same simple button to perform a trading operation.

Undoubtedly, for a full-fledged, and most importantly profitable trade, you need to have a trading strategy with clearly defined risk and money management policies. However, you do not need to always look at the monitor for making transactions on the fix api forex market. This role was taken by the trading robots that are capable of trading around the clock and do not deviate from the given algorithm even by a single step. Such a simple logic of automatic strategies has provoked the emergence of many automatic programs for fix api trading. I’ll not tell the true if I say that the robot is a guarantor of success. No, it’s not like that at all. The robot is essentially an automatic system (http://forexrobotshub.com/2018/02/14/2/ ). And also like any other system, it is not ideal, because not even every robot is perfect in its trading interpretation. But I do not hide the fact that there are algorithms that are capable of demonstrating a huge interest rate of return. It is this huge profit potential that frightens brokerage companies, and some firms restrict or completely prohibit the algotrade.

In order for such restrictions to take effect, a broker may introduce a number of restrictions, which not every fix api trader knows about:

  1. Setting the delay in the order execution (slippage): this is the simplest and the most common way for the broker to limit trading high-frequency and speculative robots. If the logic of the algorithm is based on the principle that the transaction should be performed in a matter of a fraction of a second, the speed of execution of trading operations is extremely important in such algorithms. But if you limit this parameter, the result from the speculative transactions will be unprofitable and such an algotrade will only provoke a loss of money.
  2. Additional mark-ups: if the trading robot demonstrates a moderate increase in profit and does not overstate the risks, the broker can set additional margins and spreads to reduce the performance of the trading algorithm. The trader will lose an invisible interest rate of return, and the broker will reduce his payment risks.
  3. Non-payment of the formed profitability due to the robot trade: the most dishonest brokerage companies allow trading with algorithmic programs, take commission, but when the trader has a desire to withdraw funds, the problems start. After that it turns out that it is impossible to conduct trade with the help of a robot, or the company claims to use malicious programs, which is absurd.
  4. Display of zero prices in the trading terminal and on the server of the company: brokers that prohibit the use of programs on their accounts can specially display zero prices in the fix api mt4 terminal logs. Thus, they indicate that there was no price for a financial asset. In such a situation, the robot will close all opened trading operations, not at zero value, but at market value. Also, such a hidden nuance distorts any technical analysis with the help of indicators.

To avoid the situations, which I described above, you can use helper programs whose purpose is to disguise the transactions performed by the robot – http://forexzzz.com/product/manual-trading-add-on/ . This module of manual trading operates on the autoclick principle, and when the situation of opening a position arises, the robot’s transactions are directed into the module, and from there the transaction is opened in a standard way. Thus, the broker cannot track your algorithmic transactions and to have an influence on them.


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How to correctly choose a forex trading robot and start making money with it?

Category : Robots

It is crucial to remember that a trading robot is a system, which is based on the multiple factors, from simple indicator strategies to complex mathematical algorithms. Each of the robots can be adjusted for specific parameters of monetary risks and time intervals of trade. At the moment, about 80% of the trading operations are made by robots. So the question arises: how do the experienced traders choose the right robots and earn with them? Let’s figure this out.

A trading robot is any automate trading system that is capable to open and close positions on financial instruments. The robots can be programmed according to the different systems. The simplest robots are trading, relying on the indicators, more complex ones may be developed individually and include multiple high-frequency algorithms. Here is a list on them:

–       Print tape;

–       Wave cycles;

–       Tick volumes;

–       Supply and demand levels.

A trader may face certain difficulties while choosing a trading robot. First of all, there are numerous trading advisors, which have various success rankings. Therefore it is a challenge to identify which ones are actually good. A trader should make an accurate decision, as the wrong choice may lead to the loss of money.

Trading on the forex market cannot be 100% profitable by default as well as it is impossible to always make successful deals. Still, it is possible to minimize the loss by trading with forex robots. They help the trader to avoid psychological pressure, which occurs when entering or exiting the deal. It is critically important, as the correctly chosen robot does not have its own emotions and does not change its decisions. While a person leans to change the strategy during trading, robots don’t do it, as it can have a negative impact on the trading account. An automatic calculation of the financial risks is another great advantage of robots. Moreover, the time that remains for the trader to analyze the fundamental factors of the market is also a benefit from the trading with robots. Choosing the best robot for an automated work on the Forex market is an important step towards stable earnings.

 

How to choose a forex robot?

It is not a simple task to choose a trading robot. Any experienced trader would assure you that they’ve tested a couple of forex robots before got to work with the right one. First of all, you need to determine which strategy you are using and whether you prefer to work with simple or complex solutions. I prefer more complex alternatives such as 2leg Forex Hedge Arbitrage software available at forexzzz.com. There are also free advisors, which you can find on the internet. However, they require a lot of adjustments and support.

If I needed to choose a forex robot now, I would start to read reviews on specialized forex robot websites. You may find several of them but focus on those, which do not sell robots but provide the reviews on them. In addition, it may be a good idea to analyze the results of trading robots for their current clients. Pay attention to the drawdown, yield, recovery factor, etc. Personally, I prefer the robots which are built on the principle of supply and demand levels. They calculate the historical minimum and maximum automatically under any specified time frame.

So, it is important to be aware of the key criteria of the good software in order to choose a right robot and start earning money with it.

  1. There should be positive reviews about a robot on the specialized websites;
  2. A paid robot with good ratings is preferable to the free one;
  3. You should accurately check the free robots on the test accounts;
  4. High-frequency robots are well-suitable for scalpers;
  5. If a robot is based on simple algorithms, that doesn’t mean it’s not good;

The main challenge for the new traders may be a purchase of the paid robots assistants. Still, it is worth mentioning that it is more reasonable to spend money on the deposit than lose them with free unreliable software.


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IS IT REASONABLE TO USE FOREX ROBOTS?

Category : Robots

If you are interested in forex market then you have probably seen various forex robots advertisements many times. The newbies, who lack experience can assume, that it is enough to simply download and install such trading robot. They consider that after the installation the robot would do all the work instead of them. Even though there are many different free trading robots online, it is still crucial to understand if you would get desirable results from them or not.

Firstly, you should analyze the basic algorithms and principles of forex trading to use your robot to the full.

Forex robots are the computer programs, which were designed for the most popular trading platform  Metatrader 4. They are trading your money following special settings and instructions. In other words, they are buying or selling currencies in case of the favorable environment on the foreign exchange market. They are doing it in accordance with the indexes of certain indicators and following strictly specified parameters.

By working with forex trading robot you automatically trust your money to it. So better use a thoughtful approach and don’t download a free robot from an unknown trading forum, especially if it is actively advertised.

Why are some forex robots paid, while others – free? The automatic systems are mainly developed to meet two primary needs. The first group of robots is used for the personal use, while the second – for meeting commercial goals.

It means that most of the robots that are available of different resources are just unsuccessful experiments, which didn’t meet the developer’s expectations. On the other hand, those robots, which work well and bring good profit are usually sold or used in personal trading. Nobody wants to share their successful ideas for free. That’s why paid versions of trading robots are more reliable and trustworthy, while free versions are too risky.

Read the reviews and talk with the traders, who use automatic systems successfully or buy a couple of robots and test them yourself. This way you would have a clear picture and understanding which robot works for your strategy best.

Find out more information on this topic here:  https://en.wikipedia.org/wiki/Automated_trading_system


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What are the Forex trading robots?

Category : Robots

Forex robot is a unique trading platform, which is working 24 hours a day and 5 days a week (from Monday to Friday). Significant market players and speculators are trading non-stop. However, it is an unrealistic task for a trader to trade 5 days in a row or manage 5 trading sessions one by one. Still, there is a comprehensive solution that was developed by etf traders in a world of information technologies. This is a trading robot.

So what are the trading robots, which are also called “the trading advisors”?

A trading robot is an algorithm of the particular actions on the forex market. Basically, the robot is a program that makes decisions based on the parameters which were installed into it. The trading system is a perfect robot algorithm. In simple words – the robot automatically does the trading for a trader.

It is an artificial intelligence that actually works for you.

Forex differs from the other markets (stock and commodity ones) by the increased volatility. That is why scalping robots are the most common type used in the forex market. There are different kinds of the algorithmic systems, so you should pay attention to the key features while choosing a forex robot.

What do you need to pay attention to while choosing a forex robot?

-The type of transactions (scalping, day trading, position trading);

-The algorithm of transactions (trading system or a set of indicators);

– Parameters of maximum drawdown set in the algorithm;

– Mathematical expectations of robot performance;

– The volume of trading.

Worth mentioning, that the trading robot you choose would play an important role in the profitability of investments and would directly affect the further financial results of the trader. If you buy ineffective robot you would not only spend the money but also investment funds, which would be managed by the robot. Therefore, you should be sure in a trading robot you choose.

How to choose robots for the work on forex market correctly?

There is a list of criteria which you should investigate, to choose the robot for the work on forex market.

  1. Check the financial criteria data and the trading operations statistics. Also pay attention to the key indicators, such as drawdown, the rate of return, recovery factor and profit factor. Positive indicators would guarantee getting profit from trading.
  2. Find out if there is an optimization tool in the trading robot. Forex market is changing very fast and currency pairs change their trends rapidly. Your robot should be able to adjust to the trends and optimize itself to the market conditions.
  3. Check the results of the robot’s work for its current clients. Besides statistics, there are also trading results, represented in the client’s accounts. They should be also examined. After you investigate the reviews about the profitability you can make final a decision whether or not purchase a forex robot.

Trading robots allow the traders to save their time by providing the market analysis and the search of the prospective transactions.  Robots are doing all these operations instead of a trader and work the full trading session. It means that trading robots are able to conduct an analysis of almost any currency pair and decide on the purchase or selling, based on the implemented algorithm. This allows increasing the potential of profitable trades and profitability.

According to the data of the US stock market, 80% of the trade operations are made by robots. This number can be much higher, considering the high volatility of the forex market and the big amount of time needed to access it. Large players of the forex market, such as banks and hedge funds use trading robots that can demonstrate a return of more than 1000% per annum. Of course, such robots are not available for public, but the development of this trading segment allows you to find or create a forex robot which would bring a positive result.

There are many types of trading robots. Here is the list of the most commonly used ones, however, there are more:

  1. Scalping
  2. Volume
  3. Grid
  4. Indicator
  5. News

Therefore, these robot types correspond to different trading strategies, which are based on various parameters. So, the first step to get familiar with forex trading robots would be to check their relevant reviews.


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