Forex | My Money Blog

Fapturbo Forex Robot Tests

Posted on 16. Feb, 2010 by Casper.

0

The last couple of posts here has been about some daily updates on the performance of the Fapturbo robot. I have decided not to update these per day but rather per week. Untill I start this update (counting from this Monday this week), let me just give you a short update:

Prevously I had great experience with the Fapturbo robot, but this time it really doesn’t impress me at all. It still does make good trades everyday, earning me around $20 -$40 a day on some trades. However it seems to make at least on or two trades a day that reaches the stop loss and therefor kills whatever is gained. I have managed to grow my forex account tremendously, but only by shutting down fapturbo as trades came close to a stop loss, then waited till the trades went positiv and close them manually.

Especially one trade really got me worried: Fapturbo opened a long position which rapidly became a loss. Although the trade didn’t reach the stop loss the fapturbo robot decided to close it with a loss. I don’t mind taking a loss if I have too, but just 20 seconds later it opened a new long position on the same pair. If the Fapturbo robot believes the pair will go up why close a long position?!

I am considering taking of the fapturbo money management, and run it with my own settings. Also, I will probably interfere from time to time, shutting down the forex robot to prevent it from closing or taking small profit if I feel I can do better myself. I will ofcourse mention this whenever such measures has been taking.

Untill next update: Happy trades!

Continue Reading

Fapturbo Forex Robot Results – Part 3

Posted on 05. Feb, 2010 by Casper.

0

Todays fapturbo trading was not impressive at all. As I wrote in my last post, I had an open position which was on the negative side. That position (8804020) ended with a stop loss and a total loss of $66.11. Although the fapturbo had many positive trades last night, it also had another bad trade that also ended with the pre-defined stop loss (8824861). A loss of $69.02. Both of these trades where a long position on EUR / CHF, so it seems the fapturbo robot made some really bad calls yesterday on that specific pair.

Seeing the profit versus the loses, I am wondering why the default settings are set to take profit after 5-10 pips but stop loss is 50 -80 pips depending on currency pair. Why take such big loses when the robot hasmade a wrong decission shouldn’t it cut the loses instead of hoping for a good result…?

I have decided to try with friday tradings on (default settings are off), so we will see how the robot will perform tonight.

Here are todays results:

Lot size 0.1
Leverage: 400 (high leverage for test purposes. NOT recommendable! More info on lot size and leverage here)

The profit for each trade is the far right column.
Total profit for 3. Feb: $ -102.13

Total profit for this account: $ -51.16

Continue Reading

Fapturbo Forex Robot Results – Part 2

Posted on 04. Feb, 2010 by Casper.

0

Another day has past and the forex robot FAPturbo has made some nice trades.

Here are todays results:

Lot size 0.1
Leverage: 400 (high leverage for test purposes. NOT recommendable! More info on lot size and leverage here)

The profit for each trade is the far right column.
Total profit for 3. Feb: $ 33.03

Total profit for this account: $ 50.97

At this momment I have an open position that is on the negative side. The result will ofcourse be uploaded once this position is closed.

Continue Reading

Currency Trading System

Posted on 04. Jun, 2009 by Casper.

2

By: Marc Flachs

The currency trading system came into existence in the early 70’s in order to trade commodities. This system was based on Richard Donchian’s 4 Week Rule which is based on futures’ trading. Richard observed the 4 week cycle in the markets and came up with the following rule: Cut short positions and observe a long position when a price exceeds the highest of the previous 4 weeks. Next, liquidate long positions and observe a short position when the price falls below the low of the previous 4 weeks.
The benefits of this system are that it’s purely mechanical and requires no technical knowledge of its working. Observation plays a crucial role in judging the market conditions and one must make a decision either cut short or observe a long position when prices fluctuate. By using this system, traders feel more comfortable in using trendy indicators and such a system is bound to leave other competitors lagging far behind. Generally these currency trading system are simple to understand and are easy to use. Even if you have never traded before, these currency trading systems make the trading exceptionally easy. The choice of a good currency trading system will undoubtedly lead you to huge profits.
However, for a currency trading system to work effectively, it is important that the currency trading is done realistically and not just for thrill of trading. Also, this system works best on a longer term basis and proves profitable to operate even though it is based on a simple methodology. The 4 week rule can be modified to make it non-continuous by using a shorter time span such as a one or two week rule for liquidation purposes and possibly for day trading. With this system, a four week “breakout” would be needed to come up with a new position, but a one or two week signal in the opposite direction would warrant liquidation of the position. Our trader remains out of the market until the next new four week breakout is registered.
The currency trading system best follows the often quoted maxim – “let profits run, while cutting losses short”. This system is based on fewer trades, which means less commission. Another benefit of this system is that it can operated with or without the aid of a computer, thereby making it more easy for those traders who are not computer literate or prefer working manually.
This currency trading system should be part of any trader’s essential foreign exchange education so as to understand the true benefits of this system and contribute more to the profits of such an organization. If successfully implemented and rightly followed, traders who use this system will experience a higher growth in their profits with the use of futures’ trading and the 4 week rule system. They will also gain an edge over their competitors since this system is simple and does not involve complex calculations. As a result, it becomes fairly easy to interpret trends and make wise decisions accordingly.

Continue Reading

FAPturbo Settings

Posted on 24. May, 2009 by Casper.

2

It seems that many new FAPturbo owners are having some problems or questions about how to set it up.

I will not make a guide here as I believe the videoes included in the FAPturbo members area, are pretty informative.
However, I do think there is a couple of things that is not so clear even after viewing the videos:

FAPturbo GMT settings:

The FAPturbo GMT settings, is the number one thing that FAPturbo traders seem to misunderstand. The GMT difference should be calculated as the difference between GMT time and your brokers time. This means that it has nothing to do with what time it is where you are located. The easiest way to calculate the GMT settings is this:

Find your brokers GMT time (you can find it on the Metatrader4Platform)
Click here to get the current GMT time (Pay no attention to the British time, only the first GMT watch)
Substract your brokers GMT time from the current GMT time.

Eg. Your brokers time shows 21.34, current GMT shows 18.34. Your FAPturbo GMT settings should be set to -3

FAPturbo Stoploss Settings:

The FAPturbo has a default setting of 50 on stoploss. In my opinion this is way to high. As FAPturbo usually takes profit after 5-10 pips, I find it strange that when it makes a bad trade it is “satisfied” with a 50 pips loss. My advice is to lower this to max 20. To have a better understanding of why it should not be this high you can read this post about the scalping strategy.

Continue Reading

Forex Scalping

Posted on 24. May, 2009 by Casper.

2

Using high leverage is the only way to make a small account grow big in s short period of time. But before your start your scalping journey with a very high leverage please continue reading.

A common mistake for scalper beginners trading high leverage accounts is the tendency to trade with full capital to maximize profits. This also means maximizing the risks, and many new scalper accounts reaches zero fast because of this.
A scalper must learn to calculate the size of the positions opened, to make sure
the account is not wiped out with a single loosing trade

The problem with high leverage is of course the high risk. To prevent your entire account is killed by a few bad trades, it is important that you trade with a tight stop loss. If you trade without a stop loss your investment will be gone in no time.

Decide in advance.

Do some simple math in advance on your lot size and exposed risk. Calculate the worst possible scenario, like 5 or 10 consecutive losses, and check if your account can survive such a loss.
(I know 10 consecutive losses doesn’t happen to often, but it can happen!)

Suitable hours for scalping.

The Forex market is open 24 hours a day 5 days a week, but not all hours are suitable for using scalping strategies. Since no-one wants to sit and watch the monitor for hours and hours waiting for
as the prices are moving nowhere, a scalper needs to learn the behaviour of the currency pairs. To trade effectively, a scalper most be able to define the most active session when the market is most
volatile.

Spreads when Scalping.

Spreads plays a huge part when using scalper strategies. Brokers have different spreads, and a scalper must operate with low spreads (the fapturbo forex robot, does not open scalper trades if the spreads is higher than 5, with default settings).
A trader most of course cover the the spread cost, so the higher spread the harder it is to gain the desired pips. Logically it works the other way also; the low spreads means easier scalping profit.

Each time a scalper opens a new trade, the cost of the spread is paid to the broker. Let’s say you open 10 new trades with an average spread of 3. This means you need to gain 30 pips to break even on those spreads.
One long term trade would only cost you 3 pips. The cost of trading is 10 times as high!

Scalping requires much concentration, constant price-monitoring and the ability to make decisions instantly.

Continue Reading

Japanese Candlesticks – Article Index

Posted on 16. May, 2009 by Casper.

0

As I have posted the final chapter of the Japanese Candlesticks, I thought it would be a good idea to create an index page for easy finding. Here are the articles order:

Continue Reading

Japanese Candlesticks – Part Nine: Secondary Patterns

Posted on 08. May, 2009 by Casper.

0

Secondary patterns are not talked about as much as the major patterns. This is because they are not seen as frequently as the major patterns. That does not mean they are of less importance, or effective, only that the market does not usually occur for them to appear.

I have decided to make this post as a list, with some brief explanations. If you wish more info on a pattern I suggest you take a look at the other post about the Japanese Candlesticks. I hope I haven’t forgotten any important ones. If you think I have overlooked some please let me know.

Tri Star Pattern – This pattern is as its name suggests; a pattern of three doji formations. This indicates indecisiveness on both sides of the trading floor.

Three Black Crows – Three long black candlesticks, all close in length. Suggests a downtrend.

Three Identical Crows – Same as the three black crows with the difference being the next days open is the previous days close. Indications suggest buyers are scarce at the next days open.

Two Crows – A top reversal pattern after an upward trend. Prices open significantly higher than the previous days but drops. The farther the third day closes into the white of the last white candlestick, the more sellers there are.

Upside Gap Two Crows – A three day pattern with a upward gap in an upward trend. After a strong upward trend, there is a last ditch effort to buy causing a gap in the price.

Unique Three River Bottom – A three day reversed pattern after a strong downward trend. After a strong downward trend, it would appear that the sellers are in control, but it also indicates a complete reversal of trends.

Three White Soldiers – Three day reversal pattern from selling to buying. Indicates the buyers are overtaking the sellers.

Three Inside Up and Three Inside Down – A three day reversal pattern with a Harami in the middle. A harami shows a stop in the current trend.

Meeting Lines – Opposite color bodies with the same closing price. Indicates a gap in the trend.

Belthold – A trend with a gap in the trend in the same direction as the trend. After a strong trend, there is a gap in the same direction but the price does not hold.

The Breakaway – A downward gap during a decline. Sellers have control and if the gap does not fill, they maintain control.

Three Stars In The South – An obvious downward trend. The shadows indicate that some buying has been done.

Advance Block – A trend of smaller and smaller bodies in an upward trend. Buying is beginning to slow.

Deliberation – Upward trend in stocks with the bodies of the candlesticks dwindling. Buyer weakness.

Concealing Baby Swallow – In a downward trend two large black candles preceding a gap down and reverse hammer. The strength of the trend is diminishing.

Stick Sandwich – One white candlestick sandwiched between two black. New buying trend on the horizon.

Homing Pigeon – Same as a Harami except for the color of the second session. Strong downward trend for sellers.

Ladder Bottom – Downward trend with a gap up on the fourth day. Sellers await a buying takeover.

Matching Low – Downward trend with two days have the same closing price. Price is no longer dropping.

Continue Reading

Japanese Candlesticks – Part Eight: Major Signals of Japanese Candlesticks

Posted on 05. May, 2009 by Casper.

2

Japanese candlesticks are a vital part of the trading business. From beginner to broker, they are used with confidence and are relied upon for decisions concerning buying and selling of stocks, options, futures and in the Forex.

The Doji – A doji looks a lot like the hairs on a gun scope. It shows that the opening and closing of the session began and ended at the same price. It means that there may be a possible reversal of the current trend.

Bullish Engulfing – The body of the first day (white) is completely engulfed by the body of the second day (black). The shadows are not a consideration with this candlestick. This suggests that the buyers are on the rise and that the price of a security will rise as well.

Bearish Engulfing – The body of the first day (black) is completely engulfed by the body of the second day (white). Shadows are not taken into consideration. This suggests that sellers are selling faster than the buyers are buying, and it could drive the prices down.

Hammers and Hanging Man – The lower shadow is at least two times longer than the body of the candlestick. The color of the body is not a factor. The pattern at the bottom of a downward trend is called a Hammer and at the top of an upward trend is called the Hanging man.

Piercing Pattern – A two candlestick pattern where the first is white and the second black with the black day opening higher than the previous and closes in the lower 50% of the of the white body. This would suggest that the buyers began well but by the end of the session the sellers stepped in and began dropping the prices.

Dark Cloud – This is another two candlestick pattern with the first one white and the second black. This pattern suggests the exact opposite of the Piercing Pattern.

Bullish Harami – A two candlestick pattern in a downward trend. The first candlestick will be black in line with the trend. The second should be white and opens and closes inside the body of the first candlestick. This suggests that the buyers opened the session with a higher price than the previous days close. A strong third day would suggest that the trend is in a reversal pattern.

Bearish Harami – A two candlestick pattern in a upward trend. The first candlestick should be white and in the same trend. The second is black and opens and ends within the body of the first candlestick. It suggests that the sellers opened with a price lower than the previous days close and the buyers begin to worry about the prices going even lower and sell to maintain the profit.

Morning Star – This is a three candlestick pattern at the bottom of a downward trend. The body of the first candlestick is black confirming the trend. The second is a faint formation and the third is white and will close at least half way up the black. This signifies that the buyers started the session with a higher price than the previous days’ close.

Evening Star – A three candlestick pattern at the top of an upward trend. Again, the first candlestick is white and confirms the upward trend. The second is a faint candlestick and the third is a black candlestick that should close at least half way down the body of the white. After an upward trend, the sellers start the session lower than the previous days close and finishes lower than the previous day.

Kicker Signals – The first and second day’s opens are exactly the same but the trading goes in different directions during each session. This happens with both buying and selling. This suggests a major change in investor feelings. The longer the body the more the change.

Shooting Star – A one candlestick pattern depicting an upward trend. The shadow will be at least two times the length of the body. After an upward trend the buyers look to be in control of the price, opening higher. At the end of the session, sellers begin to drive the prices back down.

Inverted Hammer – A small body with a long upper shadow located at the lower end of the previous day. There will be little or no lower shadow. The price opens and trades lower than the previous day, but ends the session at an even lower price. A higher open the next day reinforces this trend.

Continue Reading

Japanese Candlesticks – Part Seven: Backtesting the Profitability of Trading With Candlesticks

Posted on 04. May, 2009 by Casper.

0

Some of the most profitable trading strategies in the forex market involve Japanese Candlesticks charts. Depending on the multiple formations and patterns, traders buy and sell currencies in hopes of the price raising or at least continuing along the same rates. Testing these candlestick charts are difficult given the multitude of patterns that may appear. However, we will attempt to analyze the profitability of trading using candlesticks. Given the multitude of formations of candlesticks, it would be impossible to analyze all of them so we will analyze some that are important markers for turning points in the trading market.

The first two candlesticks we will analyze are the morning star and the evening star. A morning star gives us cause to strongly think about buying. If we see a downward trend before a morning star, it would indicate that the price has been dropping and the morning star is a signal to begin buying at the low prices. The morning star should be preceded by a very large downward trend before considering this to be a reversal of the trend.

The popularity of candlesticks is sometimes explained by the appearance of a candlestick chart. Candlestick charts can give additional information about prices and their correlation between the high and low and the open and close of a session. They can show the strength as well as the overall structure. One needs only to remember 12 candlestick patterns although there are about 40 patterns of reversal that can also be trading signals for you while using Japanese candlesticks.

Most investors consider only these 12 patterns to make their trading decisions. They are the most watched by traders most of the time. However, one should not think that other patterns are not worth your time.

The pattern to look for when open and close are even or close is called a Doji. The shadows on this candlestick are not taken into consideration when reading a doji and the Japanese says it shows conflict between the bulls and bears meaning a hesitation of investors. A gravestone doji appears when the close and open both become the low for the day. This signal looks like a gravestone, therefore getting its name.

A Long Legged Doji appears when a candlestick has one or two very long shadows. This is a signal that the trading has reached its apex. The Rickshaw Man appears when the open and close are within the sessions middle range. This is an indication of trading ending its current trend. At the end of a downward trend a Bullish Engulfing candlestick forms. This candlestick shows, by its white body, that its open and close was above the previous days black body. This says that the pressure of the buyers won out over the sellers pressures. The Bearish Engulfing candlestick is just the opposite of the Bullish Engulfing candlestick. It shows, by its black body that the pressure of the sellers won out over the buyers pressures. When a Bearish Engulfing candlestick appears for two days and reaches its highest level, then a Dark Cloud occurs. The first day shows a white candlestick and on the second day, its opening price exceeds all of the previous day’s levels.

The Piercing Pattern is two patterns that appear at the end of the declining market. The first day is black whether or not the one on the second day shows a long white candlestick. This means that this day has a lower opening price than any trading price for the previous day. The pattern closes with a price that is higher than the middle of the black pattern.

A Hammer and Hanging Man shows a pattern with a long shadow at the bottom and small bodies. The bodies form the high price for the session. A hammer appears when the market is in a downward trend. This shows the trend is looking for a bottom. The Japanese call this “trying to gauge the depth” or takuri.

If the market is already in a downward trend, the Shooting Star is a signal that a buyers market is on the rise. One should be patient until the buyers market is verified.