Monthly Archives: June 2018

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ATR Technical Indicator

Category : Uncategorized

Each trader defines his own set of tools for analyzing a financial asset. These can be combinations of both technical and fundamental analysis, which, in synergy, are able to be united into a single trading system and demonstrate a stable result from the fix api trading.

The most popular are technical approaches in the form of patterns, technical figures, and indicators. Today, at the trader’s disposal a number of indicators has been developed that demonstrate the trend direction and display signals to enter the market. But there are very few technical indicators that point to the exit point from the market. But the Average True Range indicator was developed exactly for this purpose.

Average True Range (ATR) is a volatility indicator indicating the average movement of quotations for a certain time interval. This helps the fix api trader to understand the maximum possible volatility on the instrument and set the stop loss level, which will be greater than this parameter in points. Thus, if a trader opened a deal to buy EURUSD at a price of 1.1640, and the value of the ATR indicator is 30 points, then the stop loss should be placed below the opening price by at least 30 points.

Advantages of this technical indicator:

  1. It allows you to determine the exit point from the transaction;
  2. It can be used as a trailing stop;
  3. It is suitable for use in every trading strategy;
  4. It does not pile up the graph, because you can implement it in a text format;
  5. It is a built-in indicator in the fix api MT4 trading terminal.

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Arbitrage as a kind of speculative trading

Category : Robots

Speculative trading every year attracts more and more new players, because in the short term speculation they are able to demonstrate a greater profit potential than investment transactions. But everyone forgets about a simple logic: each kind of speculative trading consists in a correct distribution of risks and a proper capital management. However, this combination is not obtained by every fix api trader. Most stock speculators want quick and easy money without realizing that the market does not allow it. It is because of such chaotic decisions and blind faith the statistics are formed, in which almost 90% of the market players lose their funds.

I want to note the fact that I think speculation is the basis for the market movement and that huge amounts of money are being made on them. But newcomers who are only getting acquainted with the market are not able to correctly analyze the situation and enter the market. For speculation, it is necessary to enter the market correctly. Thus, at the right time, enter and exit the transaction. And if you just get acquainted with the market and do not understand the basic principles of its movement, then you will have a loss with a probability of 90% (which is again indicated by the statistics).

If you choose speculation as a source of earnings from the fix api forex market, then I highly recommend you to use auxiliary algorithms. Fortunately, we live in the era of information technology, in which you can automate every process including the fix api trading. If we consider algorithmic strategies for speculative trading, then I would single out the arbitrage method of trade.

Arbitrage is a type of speculative trading, which is based on a paired analysis of the same financial asset, but on different brokerage platforms ( ). To put it simply, fix api arbitration allows you to analyze the same asset for the presence of exchange rate differences or delays, in order to open a short-term transaction. The very logic of the work is not new, but it is only recently used in the currency market. In order to understand the logic of work in more details, I propose you to consider a specific example:

The value of the EURUSD currency pair in one broker is 1.1630, and in the second one – 1.1620. Thus, there is a discrepancy in the size moment of 10 points, with the fact that the normative value equals 5 points. The trading robot ( ) or the auxiliary algorithm sees this discrepancy and makes two transactions: to buy at the price of 1.1620 (on the trading account in the first broker) and a sale at a price of 1.1630 (on the trading account of the second broker). When the price reaches a standard deviation (5 points), the robot will simultaneously close both transactions. Let the price was 1.1667 and 1.1662 respectively. Thus, the trader will receive a 37 points of loss on the first account and a profit of 42 points on the account of the second broker. The overall financial result is equal to 5 points of net profit.

This kind of speculative trading has a number of advantages:

  1. Minimal risk with high yield potential: due to the fact that the robot will trade with the minimum retention time, the trader will be able to make multiple positions with a profit of several points. But if you take into account the number of transactions per day (about 20-30), then you get an excellent percentage of return on a monthly basis.
  2. Automatic trading: it allows you not to waste time analyzing the asset and generate a passive source of profitability.
  3. Ability to select the key parameters for trading: setting up the necessary functionality and the method of work of the trading robot will enable allow more flexible management of the risk/yield parameter.

Arbitrage trading as a kind of speculative trading is perhaps the best option both for getting to know the market and for forming a high and stable percentage of profitability in the financial market.

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The need for social trading in the current market conditions

Category : Robots

With the development of the Internet technologies, the process of trading has become much simpler. By using the Internet, the fix api trader was able to independently send applications for opening and closing of the trading operations. And the modern computers allow you to process the market information and use trading terminals ( )  to conduct a qualitative analysis of the price quotations for the final adoption of the investment decision. This automation certainly greatly facilitates the trader’s life, but at the same time leaves him alone with the market. If earlier, all the stock speculators have floundered in the brokerage communes or directly in the exchange chambers, today it is not that way. If you do not work in a hedge fund or an investment company, then there is none to discuss the market, the current state of affairs and share your forecast with. But I believe that it is necessary to support the social component. After all, if you communicate with other market participants, you can always adjust your forecasts, confirm the calculations and make the right investment decision. The market is very large and it is not necessary to remain completely alone. Only general communication and social component will improve the trading result. In order to enhance this social activity, it is not necessary to go to a brokerage office, but it will also be quite sufficient to use modern solutions, such as blogs, forums, social groups, and websites. A trader can also conduct a dialogue without leaving home, which is very convenient in the conditions of a volatile fix api forex market.

To more accurately use the sources of such a necessary social market promise, I will more specifically consider each of them:

  1. Blogs. This type of social activity is based on following a particular fix api trader or a group of traders. Today, blogs fill the Internet and the financial sector is not an exception. If you track someone’s personal blog, it will help you to know the opinion of a major player in the market in relation to a financial asset.
  2. Forums. There is no personalization anymore and everyone can write from themselves and share their personal analysis. For many years of their work, forums have become a kind of database that fits both beginners and professional market players. On the forums, you can see the forecasts of various market players regarding one group of assets. Due to the fact that everything is divided into “branches”, it makes it possible to track the assets you are interested in.
  3. Thematic public relations in the social networks or websites. I singled out these two different sources of information into one, for the reason that like-minded people gather on the websites or in thematic groups. Therefore, if you have the same method of analyzing assets, then you can collect the same trailers and conduct a common analysis and share it with the other participants, which simplifies the process of finding trading signals.
  4. Websites of trading signal duplication. This method is used by those who do not have the opportunity to conduct asset analysis and make transactions. Such websites allow you to duplicate the fix api traders‘ transactions for a paid subscription, do not waste time for asset analyzing and generate a passive source of income ( ).

The social component in trading plays an important role, because a trader cannot keep track of all the events in the financial market and may miss a profitable investment opportunity. But if he reads about it or sees an analysis of another market participant, he can supplement it with his knowledge and conclude a profitable deal. That’s why, I advise you to not only track information on blogs, forums and other sources, but also become an active part of the entire social process.

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