Category Archives: Strategy

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Why should a trader track the trade of his competitors?

Category : Strategy

Trading in the financial markets implies the constant search of the investment opportunities and tracking the current market trends. The manager should do it on a regular basis. It is a normal process that should be done throughout the time. Also, the manager should know about the competitors’ actions. It is a crucial condition in order to achieve the desired results. Also, it is important because a financial market is a unified platform, where all the players perform. So, if you would be aware of the competitors’ actions beforehand, you would operate more efficiently.

There are various platforms, which are dedicated to the different traders’ communication as well as tracing their trading process if they show their results. Anyone, even your colleague, can be your competitor in fix api trading as soon as you commit different trading operations. Therefore you should always be familiar with and track the most traders’ thoughts.

Of course, it is not necessary to track every statement on or publication of poorly-known managers. On the other hand, the opinion leaders’ predictions are very useful for you. They serve as a valuable tool for the further exchange transactions execution. Almost the entire market follows the opinion leaders. Let’s be honest. If Buffet gives the advice to purchase some valuable papers, you would most likely follow it, right? Moreover, you would not only invest your entire capital in it but also engage your colleagues and friends to do the same.

So, where can the one find the other market players’ opinions? First of all, I want to emphasize a couple of platforms, which you can use for this need or even make your personal account there.

  1. The social networks. Nowadays the social media marketing has expanded beyond any expectations. Each company has its own profile or a company’s page which you can follow online. Some famous traders also have their social media pages and you can follow them as well.
  2. The personal blogs. If the owner feels good about sharing a personal opinion or some predictions, then there is a personal website or blog. It collects the entire information, dedicated to the trader’s experience. You can check it out a couple of times a week to find out if a trader takes a bull or a bear approach.
  3. The websites, which are aimed to connect the traders and market participants on one platform.  Such websites allow to lead an effective networking as well as communicate with other fix api traders and representatives of brokerage or investment companies. Often there is a possibility to publish your trading account to demonstrate the trading results on such platforms. It allows you to attract the new investors and analyze trading results of other players. Fxsocialnet (http://fxsocialnet.com) is one of such resources.
  4. The forums. Perhaps, it is one of the first and large-scale resources for the traders’ communication. Forums are kind of a database, which contains a lot of useful information and would be suitable for both newbies and professionals.

I do not reject the fact that each trader has to have a trading strategy to be able to complete trading operations on fix api forex market. On the contrary, I encourage everyone to create it, if you don’t have one yet. A clear trading algorithm lets you know at what prices it is necessary to open trading transactions, and when it is better to close them. The system represents how you see the market. So, monitoring how the others see it can be a confirming or refuting factor in making an investment decision. Moreover, you would be able to analyze how another trader makes predictions and compare his prognosis to your own one. Only then you can commit any actions.


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Oscillators in trading: what you can expect of them

Category : Strategy

The assets analysis in the financial market can consist of almost any instrument of both a technical and a fundamental approach. The trading strategy helps us determine what kind of approach (patterns, news or indicator) should be used, as every api fix trader has his own trading strategy. But to improve the very process of analysis, today, a huge amount of auxiliary software has been created. The world of automation made it possible to apply various methods and algorithmize the trading process, as a result of which the analysis toolkit expanded.

According to the US Bureau of Statistics, most traders conduct their trading using technical elements, as well as trading robots based on the HFT trading, i.e. high-frequency speculative algorithms, which include fix api arbitration techniques –http://forexzzz.com/product/forex-zzz-lock-arbitrage/. With regard to the use of technical elements, one of the most popular is the use of a group of oscillator indicators.

Oscillators are a group of technical indicators that allow the trader to receive a series of signals about the current state of the market. By identifying the overbought and oversold zones, the manager can fix open trade transactions and with the help of trend reversal signals, to enter the market at the very beginning of his movement.

In order to more fully understand the principle of trading indicators from a group of oscillators, I propose to examine in more details the tradesignals they demonstrate:

  • Oversold zone: it signals to the trader that the quotes have already declined sufficiently and further sales are unlikely. If this signal falls on the achievement of local minima, then this will be a confirmatory filter that it is worth to limit your open positions.
  • Overbought zone: it gives a signal that the quotes on the contrary have already grown sufficiently and their further growth is limited. Similarly, if the quotes are at the local maximum or resistance level at that moment, then they are additional filters that indicate a decrease in currency pairs in the fix apiforex market. I recommend you to use overbought and oversold zones as an exit filter from the open positions, but not as a signal to action.
  • Signals to the trend reversal are carried out by means of divergence, which indicates the divergence or convergence of price quotations with the value of the technical indicator. That is, when the quotes of the financial asset decrease, and the oscillator value grows, this will be a signal to turn and it is worth to expect the asset to move towards the indicator. Similarly, when the quotes increase, and the indicator shows a downward trend, then we should expect the trend to turn into a decline.

Considering the fact that now we know all the signals that arise due to the use of oscillators, we can more accurately enter the market and expand our trading strategy with these elements. However, these signals do not appear to absolutely all indicators, but each signal appears to certain indicators. Therefore, they can also be divided into two groups following the nature of the trading signals formation for fix api trading:

  1. Overbought and oversold zones: RSI, MFI, Stochastic.
  2. Divergence: Awesome Oscillator, MACD (http://forexrobotshub.com/2017/09/26/technical-indicator-macd-use/).

Personally, I use the Awesome Oscillator in my trading to find possible correlation zones by triggering a divergence. Also, this indicator allows you to receive additional trading signals due to its histogram form. Thus, the third directed histogram in a row indicates the purchase or sale of the financial asset of the fix apiforex market, depending on the current position of the indicator itself.

I hope that today’s small review will help you to choose a working tool that you can use in your trading strategy or expand the list of filters to make the final decision.

 

 


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How to automate the process of receiving trading signals?

Category : Strategy

Every trader, manager and even investor have a common goal – to diversify their capital. In view of this, the traders expand the group of assets for which fix api trading is being conducted, the managers select individual parameters for risk and money management, while the investors create correlation matrices and invest in assets of different sectors and markets. To solve this problem and to close the issue, the distribution of a part of the capital under trust management has gained popularity on the market. However, there was another side to the coin: failure to control its investments increased risks, and some traders lost investors’ capital. After that, PAMM accounts received popularity. But the more the PAMM account grew, the more the result decreased, in view of the fact that the traders are able to trade only with their capital. In my opinion, today there is an ideal way to diversify your trading and investments – the services of trading signals (https://1sforexsignals.com/).

Resources, on which each financial market player can receive a ready trading recommendation from other traders, allow you to control your capital. Thus, the decision to open a trade according to the trading signal is controlled by you. To put it simply, you subscribe to receiving trading signals, you get a ready solution with an entry point and exit points from the transaction (StopLossиTakeProfit), and you already decide whether to open a deal or not.

But what to do next, if you like the signals received, and you see their positive result?

It’s simple: you should automate the process of receiving trading recommendations and simplify the process of opening trading signals as much as possible. To do this, there are both automatic resources and special programs. Today, we will consider both kinds.

Resources for Trading Automation

Such resources accumulate trading accounts in the fix apiforex market and allow you to connect your trading account to receive automatic cake signals based on your set parameters.

MQL –this is perhaps the most popular resource for trading signals presentation. On it, you can find a huge number of trading signals and on the basis of statistical data to choose the most optimal option for yourself. Also,the feature of this platform is that the process is simplified for the fix api MT4trading platform. In addition, you can set the necessary parameters for working capital, drawdowns, as well as the amount at which automatic trading will be conducted according to the signals.

1sforexsignal also allows you to automate the process of obtaining trading signals. The logic of the operation is similar to the MQL service, but here the entrance threshold is much lower, which allows expand diversification by diversifying the capital and investments.

Fxsocialnet also allows you to receive a trading signal, but directly from the trading robots. Thus, signals will not be generated by a fix api trader, but by a trading algorithm. This approach allows you to trade more stable, because the robot is not subject to emotional factors and will trade only according to the program code that is embedded in it. Moreover, on this resource, if you like the results of a trading robot, you can purchase a robot immediately, put it on your account and do not pay a monthly fee for subscription.

Special software

These software developments operate on a specific principle, but you don’t have to register on sites for them where an additional fee may be charged. For their implementation, there must be an account, on which the trade is conducted, and an account to which trading signals will be delivered.

Subscriber is a program that connects to the account and allows you to receive signals directly to the trading terminal. All you need is to click on a button that will be used to trade. There are also versions of this software that already automatically open transactions and do not require additional intervention from the trader.

MT4 copier – these are special programs installed on fix api MT4 trading terminals and copy transactions from one trading account to another. The disadvantage is that in this approach it is impossible to implement the parameters of the restriction in the form of risks and capital amount. If the amount of the deposit on your account and the one on the account where the signals come from is the same, then that’s excellent. But if there is at least a little difference, there might be problems in future.

If you automate the process of getting trading signals, and adjust their work directly to your working capital, it will allow you to improve the results of profitability not only from investments in the financial market, but also to reduce risks by diversifying your capital. The main thing to remember is that the trading signals are just one of the multiple opportunities for distributing your investments.

 


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Trading algorithms used by large companies

Category : Strategy

Algorithmic approach in the financial market develops more and more every year. There are new algorithms and strategies that are based on the program code, and not the perception of the traders themselves. All thanks to the large corporations in this sector. Thanks to the hedge funds, as well as to the large investment companies, the first fully-fledged automatic programs for fix api trading on the financial market were created.

A bit of history

The birth of trading robots began in the US stock market. For example, there is a small discrepancy between the values of the stock prices between the New York and Boston stock exchanges. Earlier, this delay was much longer. You may not notice it with an armed eye, not to speak about making a trade operation on it. But the trading robot can do it.

Today’s reality According to the statistics of the US Bureau, about 80% of the total volume of trading operations comes by the trading robots. This is not strange. After all, the hedge funds are much easier to pay for one-time development of an algorithmic program, rather than to pay fix api traders every month. Corporations have large resources, therefore in some of them special departments are created that are aimed directly at the development of algorithmic software. It will facilitate the receipt of passive income while not having inflated risks. There are three main types among the most popular software that market makers use in the financial market:

    • HFT trading
    • Fix apiarbitration
    • Mathematical modeling
  1. HFT trading

These algorithms are based on high-frequency trading (http://www.businessinsider.com/the-fastest-traders-on-wall-street-are-in-trouble-2017-8) , which consists in opening a large number of speculative positions in a matter of a fraction of a second. Algorithm and logic robots of this kind can be absolutely any kind and depend on the goals that the robot should achieve. So there are trading robots that are capable to conduct fix api trading with the goal at the time of stock reduction and thereby massively selling a financial asset, reducing its value.

2. Fix apiarbitration

Above, I already mentioned about the essence of this technique. Arbitration consists in trading on the basis of exchange differences between the same financial asset, but on different stock exchanges. Let’s return to the example of the New York and Boston Stock Exchanges. There are algorithms that simultaneously analyze two different trading platforms and when a discrepancy in value appears on the market, it becomes possible for the robot to complete an arbitration position.

3. Mathematical modeling

Most investment companies are engaged in forecasting both the economy as a whole and of the individual sector. To make this, they use statistical data on the basis of which the forecast is built. Mathematical models serve as an additional filter in making investment decisions, because with the help of this tool the future asset movement is predicted. This can be both forecasts of the asset value itself, as well as the financial stability of the company or the economy.

These three approaches allow large companies to always be in the game and increase profitability without additional costs. But I draw attention to the fact that some of them can be used in the fix apiforex market, in particular, the arbitration algorithm. When it is used by different platforms, brokerage companies can act, which themselves create arbitration opportunities. Thus, the trading robot will analyze the asset value on one platform, which will be considered more rapid, and also will have actual data for the more slowly platform (http://forexrobotshub.com/2017/09/19/experience-using-lock-arbitrage/). Access to the fast one can be done using the fix api financial protocol. Then, the trader will have the opportunity to conduct algorithmic trading, which is used by large companies. And if this approach is used by market leaders, why do not we add it to our fix api trading?


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Speculation vs investment: which is better?

Category : Strategy

When choose his own approach to the financial market, each manager faces a situation where he determines the fundamental data of his trading strategy. Thus, by what method the trade will be conducted, which risks parameters and money management should be used, and the choice of the time interval on which fix api trading will be conducted. All these methods and parameters determine the two most important approaches in trading – speculation and investing.

Speculative trading is based on the short-term opening of positions in various financial assets and it is accompanied by a short hold of transactions. Fixapi trader conducts an analysis of the asset and trades at a time of high volatility of the market to obtain maximum profitability, but together with this, the risk increases.

Investing consists in a comprehensive analysis of the financial asset and the opening of long-term positions with the goal to fix the full potential of the movement or trend. This approach allows us to diversify and reduce risks, but at the same time it has less profit potential than speculative trading.

A lot of traders lead a lengthy dispute, determining which approach is more sustainable or acceptable for use in the financial market. As for me, I believe that speculative trading should be conducted at the fix apiforex market. As for investing, you should allocate funds in the stock market and to a different group of assets in order to increase diversification. The main goal for investment is to demonstrate profitability more than the growth of key benchmarks, such as the S&P 500 and DowJones 30. The purpose of speculation is to make the yield twice as much as the investment.

The choice of which approach to follow is up to you. To facilitate your decision, I propose you to consider the key parameters of each kind.

Speculative trading:

  • Does not require a high threshold for entry. There is an opportunity to use broker credit shoulders to start with small amounts;
  • Must be based on a combination of fundamental and technical characteristics for trading on D1 (http://forexrobotsreview.us/2017/06/21/technical-indicators/). If we conduct intra-day trade, then one of these two types will be sufficient;
  • Trading operations are held for no more than a month;
  • The potential risk is proportional to the yield and may be half of the percentage of probable profit;
  • Can be conducted in a speculative market;
  • Lateral movements make this kind ineffective;
  • Can be based on the output of high-profile news;
  • It does not matter which assets will be traded. The main goal is to make a profit from any movement;
  • An algorithmic approach for fixing transactions is used under scalp or fix api arbitrage transactions (https://fxsocialnet.com/).

Investment:

  • The ratio of risk to profitability can be about 1/5;
  • Itallows you to save capital and earn on dividends (when it comes to the stock market);
  • Trading operations are carried out with a term of more than one year;
  • An algorithmic approach is not used, instead statistical and mathematical analysis for constructing models of the future value of a financial asset;
  • Return shows the best growth in the stock market;
  • Fundamental analysis is used to determine investment, and to open a trading position, a number of fix api traders use technical analysis;
  • A group of assets (funds) can also be invested at the same time, or vice versa, to diversify your risks and divide assets between sectors, core business, potential and a group of securities.

I hope these characteristics will help you make the right choice in favor of one or another way of trading. The main thing to remember isto go for both speculation and investment should be consciously having a ready trading strategy.

 


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The websites for displaying trading signals

Category : Software , Strategy

Searching for the investment opportunities in the financial market is a very long process. The analysis and the prediction about the asset may occupy more time than retention of thetrading position.If we are talking about the speculation trading, then being able to make a profit in this type of trading is a hard task as well. Therefore, each fix api trader creates specific trading strategies, which speed up the investment opportunities search. The traders also look for the competent managers, who are able to control the trading risks. In order to connect these two groups, the market participant establishes special platforms, where traders demonstrate their trading results, while the investors choose the most optimal options for the investment, based on these results.

These platforms can be in a form of websites, which are developed to display trading signals. They all have a similar algorithm:

  • The trader registers the trading account in the system;
  • The trading strategy, which is used by manager is displayed on a website;
  • The investors make a decision about connection their funds to the manager’s trading based on the data;
  • There is a particular price, which should be paid monthlyfor the connection to the signal;
  • The trading operations are copied from one account to another during the month;
  • If the investor is satisfied with the results, he prolongs the subscription.

This algorithm is inherent to the most trading platforms for showing the trading signals. So, if you are looking where to place your trading strategy for the fix api market or you are searching for a competent trader then I recommend starting from this websites:

  1. MQL. This resource has a huge and useful databasefor a trader. It allows placing the accounts for further copying them. You can set your signal and make it private, which means that the results would be available only for you. You can also publish the results in future. This way the investors can analyze the statistics which contains loads of financial indicators, such as the level of drawdown, mathematical expectation, the Sharpe ratio and recovery, the ratio of profit to losses and others. The more subscribers you get and the better level of trading you provide – the higher your signal will be in the ranking.
  2. Fxsocialnet (http://fxsocialnet.com/). This platform allows to learn more about the trading as well as to track the managers’ communication with the other traders.A large list of statistical information on trade is also available here. A feature of the resource is that if you trade with a robot and publish it as a signal, then this software can be immediately sold if you wish so. It means that the investor will see the results of the algorithm work, and if he gets satisfied, there is a possibility to purchase the program.
  3.  eTorro. This website is aimed to provide an effective communication between different managers. The trade signals are given more in the form of discussions with other players, rather than as the ready-made solutions. However, there is also a possibility to connect to the fix api trader. The trader’s transactions will be duplicated directly into your trading account. The algorithm is very simple and reminds of theMQL one. However, it has its own specifications. So, this resource can perform as a broker, placing the duplicatedfunds to the managers’ accounts.

These platforms were developed for the fix api traders. They can attract additional capital, while the investors can place itthere. It also allows getting a profit in the shortest period of time for both traders and investors. It is always up to you which website you want to choose in order to copy the trading signals. The trade specification is also based according to your wish, which allows controlling the risks (http://forexrobotshub.com/2017/09/05/minimal-risk/ ) if you already know the level of profitability.


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Construction of trading systems: what should each trading strategy consist of

Category : Strategy

A systematic approach determines the future success in all undertakings. Whether it’s business conducting, learning process, organization of some activities, as well as fixapi trading. Therefore, each manager tries to create his own vision of the market with the help of certain rules and principles, both of financial asset analysis, as well as trading operations methods. After all, not a person is forming aprofitableness. It is formed directly by the trading system, which in turn was created by a person. And all the success will depend only on how competently and accurately the trader follow his own rules.

If you are just on the way of developing your vision of the market and the strategy itself, today I will help you to come a few steps closer to your goal, becausefurther we will analyze the key underlying principles of a trading strategy creation and from whichunits it should consist of.

So, first you need to highlight the principles of a trading strategy, which you will continue to proceed in the future. I focus attention on the fact, that each fix api trader may have his own principles and purposes, which he pursues. So, I will select the following basic principles:

Trading strategy should be simple and accessible for you;

– Algorithm of actions should be logical, and also eliminating manual intervention in the process;

– Trading should be based on a possible risk;

– The goal is capital preservation, and only then its multiplication;

– Profitability of a trading strategy should cover the main passive sources of income.

Exactly on these key rules the most trading strategies for the fix apiforex market are created. You can expand this list.

Now, let’s move on to the question of what every trading strategy should consist. Here I will also highlight several key blocks, which necessarily must be present and can be the basis in creating the future of algorithmic approach (http://forexzzz.com/product/ctrader-connector-via-fix-api/).

Unit #1 Definition of algorithm

If you have already established the methodology, with which you’re trading, for example, using trading indicators, then you should arrange them in a logical chain and sequence. This is done in order to be able to understand, which trading signal follows which and what should be done in various combinations.

Unit #2 Opening of trading operations

If we continue our example and imagine, that you are using technical indicators in your trading, you should be aware, under what conditions trading operations will be opened. It can be the achievement of a particular zone by an indicator or the intersection of two different technical elements, that will create a trade signal for purchase or sale (http://1sforexsignals.com/). Anyway, the system should answer the question, what combinations should open a trade and which you should skip due to the lack of supporting filters.

Unit #3 Closing trading operations

If you have an entry into the transaction, then there must be an exit. For this youshould also write down, under what conditions opened operation should be closed. It may be the reverse combination of trading signals or achieving of certain levels. Don’t forget to set the Stoploss and Takeprofit levels, because it’s also certain conditions to exit trading positions.

Unit #4 Capital management

Trading strategy should also have a unit, that is dedicated to the determination of the transaction´s amount. And not only the volume, but so that, when closing the position no additional risks will appear. This is a very important point for achieving future goals, which is very hard for every fix api trader.

If you will be able to realize your strategy, then you will have complete mechanism for stable earnings. Moreover, thanks to such sequence and a simple chain of actions, you can implement a trading robotin the future, that will simplify the trading process in the financial market.


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Mathematical models in trading

Category : Software , Strategy

Each and every trader has to make a lot of choices every single day, from taking decision on selling or buying of an asset to selecting the proper way of trading activity. And if we talk about the last option, then it can be considered as the most difficult moment (according to my opinion), because it defines all future steps and action of a FIX APItrader.

As we all now, there are many different trading methods, which can be divided into the following groups:

– Scalping trading

FIX APIarbitraryalgorithms (http://forexzzz.com/product/forex-zzz-lock-arbitrage/)

– Speculativetrading (when trades are open for not more than 1 day)

– Swing trading (when trades are kept open for 2-3 days)

– Midterm investment (when money is invested into assets for a month or a quarter)

– Positionedinvestment (when investments are made for more than a year)

Each of these methods has its own market working mechanism, as well a set of tools to define the perfect moment for investment.

Today I want to offer you one of the methods of analysis that is used by all professional FIX API traders and big companies in order to define the list of assets for investment. We are going to talk about the usage of mathematical models, which are based on the statistic information and allow understanding the future growth or falling potential of a financial asset.

Mathematical models in trading include comprehensive information and a set of specific rules, which allow making recommendations for the asset managers on the future price of the asset. In other words these models can be used to make fast and reliable forecast about the future price of the asset. No doubt, the majority of models and the method itself are widely used in the stock market. However, there are many methods, which can be adjusted to work in the conditions of FIX API Forex market.

Even if we look at the popular trading robots, they can also be considered as mathematical models due to their nature (http://forexrobotsreview.eu/2017/06/20/high-frequency-trading-2/). However, today we are talking about different model creation principles, which are based on the fundamental data, allowing the asset manager to take the right and efficient decision.

In 99% of cases such mathematical models are used as a filter, and not as a base for a decision making. It turns out that if a trader has a trading strategy that shows various buying options, the trader is able to use special models in order to analyze the fundamental data, and create recommendations and the forecast about future changes of the price. After that, if the signal corresponds with the forecast, the trader can open various trades having minimum risks.

What kind of fundamental data from FIX API Forex market can be analyzed by the trading algorithm?

In order to make your model really efficient, you have to analyzethefundamental dataon a regular basis, adding them into your database for calculations. There are specific models, which are able to forecast the future economic growth basing on the historical data. They can also predict such things as inflation or the budget. By using this method one can forecast the following indicators:

  • GDP
  • Inflation
  • Labor market
  • Budget balance
  • Volume of production
  • Level of development in specific economy sectors
  • Volume of sales

Thin information shows the highest level of volatility during the moment of news appearance. In case if you have a tool that is able to make forecasts about such information with high precisions, you will be able to improve the profitability by making speculative trades during the moment of new data publication.

No doubt, mathematical models are simply useless for scalping or arbitrary systems. But in case if you are looking for a tool to get maximal profits and invest money on the long term basis, you definitely need to use mathematical models.


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The characteristics of different types of the arbitrage trade

Category : Software , Strategy

Exchange speculators are looking for a stable and profitable trade every day. The methods are changing, the strategies – optimizing and new methods of money management are developing continuously. The fix api traders are analyzing and sorting out a lot of information, searching for the Holy Grail. Today I am going to help you to identify a stable tool for profitable trading and review it in detail. I will consider the arbitration form of trade that you had might heard of before and that I have mentioned in my recent publications.

The arbitrage trading attracts more and more traders’ attention. Let’s investigate why it is so. The first type of trading allows trading with a zero risk parameter. It is an ideal choice of strategy for those, who want to save their capital and multiply it. After all, most investors are interested in the risk of trading, and only then profitability. Arbitration, in turn, allows you to achieve this goal.

The arbitrage trading attracts more and more traders’ attention. Why is it so? The reason is that this trading type allows trading with a zero risk parameter. It is a perfect strategy option for those, who want to save their funds first and then multiply it. Most of the investors are interested in the trading risk and then the profit. Arbitrage allows you to achieve this goal.

The main idea of the fix api arbitrage lies in the committing exchange operations based on exchange rate differences for the same financial activities at the different trading platforms. It means that when the price is different at the same exchange or at the same broker the trader can make transactions based on these deviations and fixate the positions when the same values are reached.

Thus, there would be a small loss with one operation but a profit with the other. The profit would exceed the loss by 2-3 points. Due to this, the breakeven of trading algorithms which trade according to the arbitration principles is formed, http://forexzzz.com/fixa/

The information technologies development has provoked the emergence of various types of arbitrage trading, which are implemented by the automated programs – trading robots.

According to this, the two key types of trading robots can be distinguished:

  • Fix api Latency Arbitrage
  • Fix api 2-leg Arbitrage

Fix api Latency Arbitrage

This arbitrage trading type is based on the committing speculative positions via comparing the price quotes between the faster and the slower fix api forex brokerage companies. The algorithm connects to the two trading accounts, which are often the prime one, and the ordinary one. The prime one is a fast quotation provider, while the slow one delivers quotes slower. Therefore, the robot opens trading operations on the “slow” broker’s account towards faster data, when the “slow” broker’s quotes deviate from the values of the faster one. For instance, if the price for EURUSD currency pair is 1.1720 at the “fast” and 1.1750 at the “slow” broker, you need to open a sale with a range of 20-30 points of profit.

Fix api 2-leg Arbitrage

On the other hand, this arbitrage type allows committing not only one, but two trading deals. The method is similar to the first type: two exchange sites are analyzed and the deals are opened in the case of exchange rate discrepancies. IN order to understand the essence of this particular arbitrage methodology, let’s take a look at the example, mentioned above. So, the EURUSD currency pair costs 1.1720 at the first broker and 1.1750 at the second one. We don’t mind which is the “fast” and which – the “slow one. The algorithm opens the purchase for 1.1720 and a sale for 1.1750. So, there is an informal lock. However, the deals are opened only when the maximum range of discrepancies is reached (let it be 30 points) and locked when, for instance, 15 points are reached. It means that the robot would close the deal when the difference between quotations would be 15 points. If the price at the first one would be 1.1745 later and 1.1760 at the second one, then the deals would be closed. The result of the first one would be +25 points, while for the second one it would be -10 points. It equals 15 points in the net profit.

Each of these arbitrage trading types is a universal tool for the risk-free trading. As you can see, the whole result from a trading is created by the number of such operations. They are quite easy to implement with the help of trading robots.

 

 


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Pending orders in trading

Category : Software , Strategy

Recently, I found an interesting article that was telling about the proper way to define the best moment to enter the market. The main idea is to open a position in case when all trading signals are available, and I agree with it in general. However, I think that one has to open positions only at the time of the signal formation and not just because such signal is already available.

In case when you open your terminal and choose an asset, and you see the operational confirmation of the trend or the correction caused by trading signals, it doesn’t mean that you have to open a trade (http://investment_terms.enacademic.com/14080/Trade_Signal). That means the signal has already been formed and used. That’s why you won’t get any profits by trading with it.

That’s a very popular mistake among the beginners in theFIX APIForex market. You need to know the moment when you have to open a position more than clearly. It includes both breakdown and recall of the market. You can solve this situation only by using the pending orders.

Pending orders is the method of trading transaction execution based on the future values of financial assets. In case you are going to buy and sell assets using the current market price, your transactions will be executed using the current values. In case if you are waiting for the breakdown, you can use pending orders, setting specific prices, which can be higher or lower than the breakdown level. Such method makes it possible to enter the market without continuous and uninterrupted participation of the FIX API trader.

Main types of pending orders:

Buy stop –allows opening a trade using the future price growth. For example, when rates are showing significant growth, and the trader is waiting for an additional jump after the formation of the technical level or the breakdown, they are able to create buy stop above the upper level of the rates, thus the trade will be executed when the price of the asset starts to grow, reaching the indicated level. Inotherwords, theFIX API traderexpects the subsequent growth.

Sell stop –allows opening trade using the future price reduction. For example, when current rates are decreasing, and the traders note signs confirming further reduction, they are able to create pending orders with the lower price that is usually located beyond the local minimum. Thus, when the rate will reach the selected level during the process of price reduction, a selling trade will be automatically executed for the trader.

The first two types of pending orders are the perfect solution for those asset managers trading using the level breakdown. In such situation both buy stop and sell stop are the main elements for such breakdown trading.

Buy limit – is a pending order that allows buying an asset after the reduction or correction of the price. For example, when rates have reached the level of resistance and bounced from it, but the trader is waiting for the further growth after a small correction. Insuchsituationthetraderisabletocreatethebuy limit order at the lower price (usually at the Fibo level), while the price has to continue its growth after reaching the mentioned level.

Sell limit –is a pending order that allows selling an asset after the growth or correction. We can use a similar example for this case. Let’s say that rates are growing and approaching the resistance level. The trader can use the current level to create an order to open a short position when it’s reached. In other words FIX API trader is waiting for the bouncing from the current level, followed with the reduction of the price.

Such pending orders have to be used at the moment of the trading signal formation. The moment when rates will cross the indicator or break through the level, will be the wake-up call. The trader will be aware of that breakdown and will know how to act. After creating a pending order and setting the limiting levels for losses and profits, one can continue with the analysis of different assets.

The pending order is an efficient tool even for the algorithmic trading (http://forexzzz.com/product/forex-zzz-lock-arbitrage/). EvenFIX APIsupports pending (delayed) transactions, which are used by trading robots in order to execute trading order even more precisely.

 

 


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