introducing broker BFT (Best Forex Trading) Benifits of IB

Forex Signals

Using Forex Signals, do they work?

BY UK BITCOINBLOG.COM ON JULY 6, 2020
Forex Signals are basically someone giving you instructions to trade the foreign exchange market, they can come in the form of a text, email or chat.
There are masses of advertisements offering these signals, but do they really work?

Forex Signals for sale

Although these signals appear free, oftentimes there is a paid option.
So you are paying for someone else’s knowledge and experience – or maybe not. Some signal providers simply resell the signals from another person.

How to spot a fake forex signal provider?

On the right is a REAL advert for forex signal provision, but it rings my alarm bells and here’s why.
  1. Promises of a certain number of pips per week.
You can’t guarantee pips profit per week – the markets are simply not that easy. Sometimes they go very flat and even the best trader loses money.
  1. “FREE” is never FREE when I advertise my forex trading robot and indicator strobotultimate, I am clear about the introducing broker relationship that I have. These others are not clear and there should be clarity.
  2. Trades don’t add up, I saw one advertisement where the trades had been placed on a SATURDAY WHICH is pretty unlikely because the markets are shut.
  3. Trades are all on the same pair. There are methods where you do trade on the same pair but it’s highly risky – this is normally done by adding trades as the pair moves in a particular direction.

What are the problems with Forex Signals?

  1. You may take the trade too late. Having missed the entry.
  2. It may just be wrong.
  3. You are risking your money with someone that you don’t know who may simply be a scammer.
Be careful out there, learn to trade yourself before using tools like Forex Signals or Robots.
from : https://www.ukbitcoinblog.com/general-info/using-forex-signals-do-they-work/
submitted by StrobotUltimate to u/StrobotUltimate [link] [comments]

Started from the bottom and I finally made it! My tips for new traders starting.

A little background, 23 year old dude from Singapore with IT background (Ethical hacker), friend introduced me to Forex which he eventually quit but I didn't. I love challenges and now I plan on taking up Forex trading as a career apart from my passive income jobs.
When I first started trading, I was frustrated! I had so many unanswered questions, why do I keep getting stopped out? Why are my profits so low? Why was my trades always going opposite only once I opened. Is my broker trading against me? So I paused and walked away from the charts for a few weeks, in that break I took it upon myself to understand more about Forex before opening the charts again and here is what I learned. Mind you, I did not buy any course or Indicators! All I did was read articles on the internet, watch a ton of YouTube videos and tried almost all indicators .

Here we go, my tips. These are based on my views
  1. UNDERSTAND BANKS AND BIG FINANCIALS INSTITUTIONS MOVES THE MARKET - No retail traders will be able to move the market like how the Big Banks move the market. You need to understand how banks move smart money and dumb money.(Will explain more later in the post)
  2. STOP SEARCHING FOR THE HOLY GRAIL - No indicators is going to tell you where is the best entry or best exit. They often lag and are behind time so by the time you enter a trade, the trend has already moved a certain percentage causing you to lose precious pips that you could have gotten as profits. Instead look at the charts to search for "low risk, high probability trades" (Will explain more later in the post)
  3. LOOK OUT FOR NEWS (fundamentals) - Big impact news move the markets with big moves, don't get stopped out because you entered at the wrong time without knowing that there is a high impact news in a few minutes/hours. It might hurt your account badly even through you have a stop-loss. Understand the nature of the news and how it will impact the currency.
  4. DO NOT CHASE PROFITS - Chasing profits will be the number one reason you blow your account because no amount of money will satisfy you, you will always want more. Trust me, I've been there and done that . Instead start looking at percentage earned and loss, because in Forex you need money to make money. Lets say you have a target of 5% a month, with a $1000 account that is only $50 and doesn't seem significant but do that with a $100,000 account and you will get $5000 every month. I think you will get it by now. You can't just open a $1000 account and expect to be a millionaire in 1 month. Greed will take over you and you will blow every account you open.
  5. DO NOT OVER LEVERAGE YOU ACCOUNT - By over leveraging you will be able to open larger lot sizes and you will feel good that you can use less money to earn more profit! Then you will start trading, say you profited your first trade and you feel good about yourself. Profited your second trade and feel even better. So you go bigger in the third trade, and guess what? You lost this trade. And this one loss is enough to wipe out your whole $1000 account.
  6. MORE TRADES DOES NOT GIVE YOU MORE PROFITS - As a trader you should understand not every trade will turn out positive, there will always be negative trades. And at times you can have more negative trade than positive but still end up with profits at the end of the week? This is where quality over quantity trades comes in play. Lets say for example you had 4 losing trades and 2 winning trades, your losing trades are 2% each and your winning trades are 8% each, add them up and you will still have 8% profit. This is also a very important part called risk management. YOU MUST UNDERSTAND RISK MANAGEMENT ELSE YOU WILL ALWAYS FAIL IN FOREX.
  7. NEVER CHASE THE MARKET - Markets move 24/7 from Monday 5 AM to Saturday 5 AM (Singapore time, GMT+8). There will be plenty of opportunity to enter the market. You don't always need to have an open position during this time to feel like a trader. Smart traders look for the best opportunity to enter the market at certain levels. Missed an opportunity, don't worry! There will always be another opportunity, trust me! By chasing the market and always trying to open a position, it will only cause you to blow out your account faster.
  8. PATIENCE PATIENCE PATIENCE - I can't place more emphasis on this point. Once you have analysed the market and placed your trade, be patient and let the market work for you. By you sitting at the screen 24/7, the trade is not going to go by your way magically. Remember Bulls will Profit, Bears will profit, only Pigs will get slaughtered! Don't let greed eat you alive.

Now lets talk about the "low risk, high probability" trades and how I trade. Trading is easy, if you take some time to understand it.

How I trade? That's a simple question. I use supply and demand together with fundamentals. I keep my charts clean off indicators. I know I know as soon as I say supply and demand, some of you are going to be like supply and demand doesn't exist in the currency market. But I hope you understand this are my views.
Supply and Demand
Supply and demand levels are zones that tend to be tested again and again till its broken creating another level for supply and demand. You are basically trading against the trend and I know people will be scared and think I'm dumb for saying. But once I learned this theory and started practicing it, I kicked myself in the bum for being so dumb all this while. This zones are also known for when banks throw large amount of money into the market. Bank traders do not have their screen cluttered with tons of indicators like retail trades who is just in search for the holy grail. They practice supply and demand. Let me put it in a easier context, It is basically buying a currency at wholesale and selling it at a retail price. People always practice this everyday in life like buying more of a certain item just because it is on discount at a supermarket but I don't understand why they neglect it when it comes to Forex. It is no different here in the markets. I am not going to say no more, as I want you to google more about it and understand it yourself, that is the best way you will learn better. Watch YouTube videos, read articles, see how bankers trade, understand why they place the trade.
Also understand that there is no supply and demand in lower time frame like M1 or M5, its just noise. For myself, I use H1/H4/D1.
I make 100-200 pips per week and that is enough for me currently, Remember don't be greedy.
However when there is news events, supply and demand may be ignored due to the nature of how fundamentals affect the market differently. Understand the difference and with that I have came to the end.
Remember to treat yourself once in awhile when you do good each month, You will enjoy trading better. Let me tell you the best part about trading, is that you can work from anywhere in the world, be your own boss and never be pressured by anyone.
If you have made it this far, I thank you for taking your time to read this thread. This may be your first step to success.

HAVE A GREAT WEEKEND AND HAPPY TRADING

submitted by Rishanan to Forex [link] [comments]

How to get started in Forex - A comprehensive guide for newbies

Almost every day people come to this subreddit asking the same basic questions over and over again. I've put this guide together to point you in the right direction and help you get started on your forex journey.

A quick background on me before you ask: My name is Bob, I'm based out of western Canada. I started my forex journey back in January 2018 and am still learning. However I am trading live, not on demo accounts. I also code my own EA's. I not certified, licensed, insured, or even remotely qualified as a professional in the finance industry. Nothing I say constitutes financial advice. Take what I'm saying with a grain of salt, but everything I've outlined below is a synopsis of some tough lessons I've learned over the last year of being in this business.

LET'S GET SOME UNPLEASANTNESS OUT OF THE WAY

I'm going to call you stupid. I'm also going to call you dumb. I'm going to call you many other things. I do this because odds are, you are stupid, foolish,and just asking to have your money taken away. Welcome to the 95% of retail traders. Perhaps uneducated or uninformed are better phrases, but I've never been a big proponent of being politically correct.

Want to get out of the 95% and join the 5% of us who actually make money doing this? Put your grown up pants on, buck up, and don't give me any of this pc "This is hurting my feelings so I'm not going to listen to you" bullshit that the world has been moving towards.

Let's rip the bandage off quickly on this point - the world does not give a fuck about you. At one point maybe it did, it was this amazing vision nicknamed the American Dream. It died an agonizing, horrible death at the hand of capitalists and entrepreneurs. The world today revolves around money. Your money, my money, everybody's money. People want to take your money to add it to theirs. They don't give a fuck if it forces you out on the street and your family has to live in cardboard box. The world just stopped caring in general. It sucks, but it's the way the world works now. Welcome to the new world order. It's called Capitalism.

And here comes the next hard truth that you will need to accept - Forex is a cruel bitch of a mistress. She will hurt you. She will torment you. She will give you nightmares. She will keep you awake at night. And then she will tease you with a glimmer of hope to lure you into a false sense of security before she then guts you like a fish and shows you what your insides look like. This statement applies to all trading markets - they are cruel, ruthless, and not for the weak minded.

The sooner you accept these truths, the sooner you will become profitable. Don't accept it? That's fine. Don't bother reading any further. If I've offended you I don't give a fuck. You can run back home and hide under your bed. The world doesn't care and neither do I.

For what it's worth - I am not normally an major condescending asshole like the above paragraphs would suggest. In fact, if you look through my posts on this subreddit you will see I am actually quite helpful most of the time to many people who come here. But I need you to really understand that Forex is not for most people. It will make you cry. And if the markets themselves don't do it, the people in the markets will.

LESSON 1 - LEARN THE BASICS

Save yourself and everybody here a bunch of time - learn the basics of forex. You can learn the basics for free - BabyPips has one of the best free courses online which explains what exactly forex is, how it works, different strategies and methods of how to approach trading, and many other amazing topics.

You can access the BabyPips course by clicking this link: https://www.babypips.com/learn/forex

Do EVERY course in the School of Pipsology. It's free, it's comprehensive, and it will save you from a lot of trouble. It also has the added benefit of preventing you from looking foolish and uneducated when you come here asking for help if you already know this stuff.

If you still have questions about how forex works, please see the FREE RESOURCES links on the /Forex FAQ which can be found here: https://www.reddit.com/Forex/wiki/index

Quiz Time
Answer these questions truthfully to yourself:

-What is the difference between a market order, a stop order, and a limit order?
-How do you draw a support/resistance line? (Demonstrate it to yourself)
-What is the difference between MACD, RSI, and Stochastic indicators?
-What is fundamental analysis and how does it differ from technical analysis and price action trading?
-True or False: It's better to have a broker who gives you 500:1 margin instead of 50:1 margin. Be able to justify your reasoning.

If you don't know to answer to any of these questions, then you aren't ready to move on. Go back to the School of Pipsology linked above and do it all again.

If you can answer these questions without having to refer to any kind of reference then congratulations, you are ready to move past being a forex newbie and are ready to dive into the wonderful world of currency trading! Move onto Lesson 2 below.

LESSON 2 - RANDOM STRANGERS ARE NOT GOING TO HELP YOU GET RICH IN FOREX

This may come as a bit of a shock to you, but that random stranger on instagram who is posting about how he is killing it on forex is not trying to insprire you to greatness. He's also not trying to help you. He's also not trying to teach you how to attain financial freedom.

99.99999% of people posting about wanting to help you become rich in forex are LYING TO YOU.

Why would such nice, polite people do such a thing? Because THEY ARE TRYING TO PROFIT FROM YOUR STUPIDITY.

Plain and simple. Here's just a few ways these "experts" and "gurus" profit from you:


These are just a few examples. The reality is that very few people make it big in forex or any kind of trading. If somebody is trying to sell you the dream, they are essentially a magician - making you look the other way while they snatch your wallet and clean you out.

Additionally, on the topic of fund managers - legitimate fund managers will be certified, licensed, and insured. Ask them for proof of those 3 things. What they typically look like are:

If you are talking to a fund manager and they are insisting they have all of these, get a copy of their verification documents and lookup their licenses on the directories of the issuers to verify they are valid. If they are, then at least you are talking to somebody who seems to have their shit together and is doing investment management and trading as a professional and you are at least partially protected when the shit hits the fan.


LESSON 3 - UNDERSTAND YOUR RISK

Many people jump into Forex, drop $2000 into a broker account and start trading 1 lot orders because they signed up with a broker thinking they will get rich because they were given 500:1 margin and can risk it all on each trade. Worst-case scenario you lose your account, best case scenario you become a millionaire very quickly. Seems like a pretty good gamble right? You are dead wrong.

As a new trader, you should never risk more than 1% of your account balance on a trade. If you have some experience and are confident and doing well, then it's perfectly natural to risk 2-3% of your account per trade. Anybody who risks more than 4-5% of their account on a single trade deserves to blow their account. At that point you aren't trading, you are gambling. Don't pretend you are a trader when really you are just putting everything on red and hoping the roulette ball lands in the right spot. It's stupid and reckless and going to screw you very quickly.

Let's do some math here:

You put $2,000 into your trading account.
Risking 1% means you are willing to lose $20 per trade. That means you are going to be trading micro lots, or 0.01 lots most likely ($0.10/pip). At that level you can have a trade stop loss at -200 pips and only lose $20. It's the best starting point for anybody. Additionally, if you SL 20 trades in a row you are only down $200 (or 10% of your account) which isn't that difficult to recover from.
Risking 3% means you are willing to lose $60 per trade. You could do mini lots at this point, which is 0.1 lots (or $1/pip). Let's say you SL on 20 trades in a row. You've just lost $1,200 or 60% of your account. Even veteran traders will go through periods of repeat SL'ing, you are not a special snowflake and are not immune to periods of major drawdown.
Risking 5% means you are willing to lose $100 per trade. SL 20 trades in a row, your account is blown. As Red Foreman would call it - Good job dumbass.

Never risk more than 1% of your account on any trade until you can show that you are either consistently breaking even or making a profit. By consistently, I mean 200 trades minimum. You do 200 trades over a period of time and either break-even or make a profit, then you should be alright to increase your risk.

Unfortunately, this is where many retail traders get greedy and blow it. They will do 10 trades and hit their profit target on 9 of them. They will start seeing huge piles of money in their future and get greedy. They will start taking more risk on their trades than their account can handle.

200 trades of break-even or profitable performance risking 1% per trade. Don't even think about increasing your risk tolerance until you do it. When you get to this point, increase you risk to 2%. Do 1,000 trades at this level and show break-even or profit. If you blow your account, go back down to 1% until you can figure out what the hell you did differently or wrong, fix your strategy, and try again.

Once you clear 1,000 trades at 2%, it's really up to you if you want to increase your risk. I don't recommend it. Even 2% is bordering on gambling to be honest.


LESSON 4 - THE 500 PIP DRAWDOWN RULE

This is a rule I created for myself and it's a great way to help protect your account from blowing.

Sometimes the market goes insane. Like really insane. Insane to the point that your broker can't keep up and they can't hold your orders to the SL and TP levels you specified. They will try, but during a flash crash like we had at the start of January 2019 the rules can sometimes go flying out the window on account of the trading servers being unable to keep up with all the shit that's hitting the fan.

Because of this I live by a rule I call the 500 Pip Drawdown Rule and it's really quite simple - Have enough funds in your account to cover a 500 pip drawdown on your largest open trade. I don't care if you set a SL of -50 pips. During a flash crash that shit sometimes just breaks.

So let's use an example - you open a 0.1 lot short order on USDCAD and set the SL to 50 pips (so you'd only lose $50 if you hit stoploss). An hour later Trump makes some absurd announcement which causes a massive fundamental event on the market. A flash crash happens and over the course of the next few minutes USDCAD spikes up 500 pips, your broker is struggling to keep shit under control and your order slips through the cracks. By the time your broker is able to clear the backlog of orders and activity, your order closes out at 500 pips in the red. You just lost $500 when you intended initially to only risk $50.

It gets kinda scary if you are dealing with whole lot orders. A single order with a 500 pip drawdown is $5,000 gone in an instant. That will decimate many trader accounts.

Remember my statements above about Forex being a cruel bitch of a mistress? I wasn't kidding.

Granted - the above scenario is very rare to actually happen. But glitches to happen from time to time. Broker servers go offline. Weird shit happens which sets off a fundamental shift. Lots of stuff can break your account very quickly if you aren't using proper risk management.


LESSON 5 - UNDERSTAND DIFFERENT TRADING METHODOLOGIES

Generally speaking, there are 3 trading methodologies that traders employ. It's important to figure out what method you intend to use before asking for help. Each has their pros and cons, and you can combine them in a somewhat hybrid methodology but that introduces challenges as well.

In a nutshell:

Now you may be thinking that you want to be a a price action trader - you should still learn the principles and concepts behind TA and FA. Same if you are planning to be a technical trader - you should learn about price action and fundamental analysis. More knowledge is better, always.

With regards to technical analysis, you need to really understand what the different indicators are tell you. It's very easy to misinterpret what an indicator is telling you, which causes you to make a bad trade and lose money. It's also important to understand that every indicator can be tuned to your personal preferences.

You might find, for example, that using Bollinger Bands with the normal 20 period SMA close, 2 standard deviation is not effective for how you look at the chart, but changing that to say a 20 period EMA average price, 1 standard deviation bollinger band indicator could give you significantly more insight.


LESSON 6 - TIMEFRAMES MATTER

Understanding the differences in which timeframes you trade on will make or break your chosen strategy. Some strategies work really well on Daily timeframes (i.e. Ichimoku) but they fall flat on their face if you use them on 1H timeframes, for example.

There is no right or wrong answer on what timeframe is best to trade on. Generally speaking however, there are 2 things to consider:


If you are a total newbie to forex, I suggest you don't trade on anything shorter than the 1H timeframe when you are first learning. Trading on higher timeframes tends to be much more forgiving and profitable per trade. Scalping is a delicate art and requires finesse and can be very challenging when you are first starting out.


LESSON 7 - AUTOBOTS...ROLL OUT!

Yeah...I'm a geek and grew up with the Transformers franchise decades before Michael Bay came along. Deal with it.

Forex bots are called EA's (Expert Advisors). They can be wonderous and devastating at the same time. /Forex is not really the best place to get help with them. That is what /algotrading is useful for. However some of us that lurk on /Forex code EA's and will try to assist when we can.

Anybody can learn to code an EA. But just like how 95% of retail traders fail, I would estimate the same is true for forex bots. Either the strategy doesn't work, the code is buggy, or many other reasons can cause EA's to fail. Because EA's can often times run up hundreds of orders in a very quick period of time, it's critical that you test them repeatedly before letting them lose on a live trading account so they don't blow your account to pieces. You have been warned.

If you want to learn how to code an EA, I suggest you start with MQL. It's a programming language which can be directly interpretted by Meta Trader. The Meta Trader terminal client even gives you a built in IDE for coding EA's in MQL. The downside is it can be buggy and glitchy and caused many frustrating hours of work to figure out what is wrong.

If you don't want to learn MQL, you can code an EA up in just about any programming language. Python is really popular for forex bots for some reason. But that doesn't mean you couldn't do it in something like C++ or Java or hell even something more unusual like JQuery if you really wanted.

I'm not going to get into the finer details of how to code EA's, there are some amazing guides out there. Just be careful with them. They can be your best friend and at the same time also your worst enemy when it comes to forex.

One final note on EA's - don't buy them. Ever. Let me put this into perspective - I create an EA which is literally producing money for me automatically 24/5. If it really is a good EA which is profitable, there is no way in hell I'm selling it. I'm keeping it to myself to make a fortune off of. EA's that are for sale will not work, will blow your account, and the developer who coded it will tell you that's too darn bad but no refunds. Don't ever buy an EA from anybody.

LESSON 8 - BRING ON THE HATERS

You are going to find that this subreddit is frequented by trolls. Some of them will get really nasty. Some of them will threaten you. Some of them will just make you miserable. It's the price you pay for admission to the /Forex club.

If you can't handle it, then I suggest you don't post here. Find a more newbie-friendly site. It sucks, but it's reality.

We often refer to trolls on this subreddit as shitcunts. That's your word of the day. Learn it, love it. Shitcunts.


YOU MADE IT, WELCOME TO FOREX!

If you've made it through all of the above and aren't cringing or getting scared, then welcome aboard the forex train! You will fit in nicely here. Ask your questions and the non-shitcunts of our little corner of reddit will try to help you.

Assuming this post doesn't get nuked and I don't get banned for it, I'll add more lessons to this post over time. Lessons I intend to add in the future:
If there is something else you feel should be included please drop a comment and I'll add it to the above list of pending topics.

Cheers,

Bob



submitted by wafflestation to Forex [link] [comments]

Preparing for the Impulse - GBPUSD, Traps to Expect and Trades to Make

Preparing for the Impulse - GBPUSD, Traps to Expect and Trades to Make
Part One
Perquisite Posts;
https://www.reddit.com/Forex/comments/clbxk2/shorting_noobs_common_trend_following_mistakes_im/
https://www.reddit.com/Forex/comments/clx0v9/profiting_in_trends_planning_for_the_impulsive/
https://www.reddit.com/Forex/comments/ctyr3p/gbpusd_shaping_up_for_good_sell_but_not_quite_yet/

It will benefit your understanding of this to take some time to read through at least all of these post, and also my other ones. Over the last weeks I've introduced some concepts I think are useful, demonstrated how a person could use them to make profit and presented for consideration ways you can go and test if what I am saying is true in your trading. Now I am going to start to bring this all together to show you how a person can plan well ahead and be well prepared to profit in Forex.

Three weeks ago I gave a swing analysis on GBPUSD (as part of speaking about a broader idea of trend following). It said this.
https://preview.redd.it/q60ia0ophhi31.png?width=691&format=png&auto=webp&s=cf7495e47ea212e5f094bae232f49d700805579a
Source https://www.reddit.com/Forex/comments/clbxk2/shorting_noobs_common_trend_following_mistakes_im/

Long term bearish picture here of 1.190. An area I expect us to have a big move in possibly feature a 100 plus pip candle (dare I speculate ... news event, or random fundamental). We got into 1.199s, and then price started to stall.
I then explain by "ping swing" theory and pointed out all the indicators this ping swing was coming.

https://preview.redd.it/wsdjmcb9ihi31.png?width=685&format=png&auto=webp&s=8aad9d994b85d076397a6f07493a0d174012d144

https://preview.redd.it/oe7823ncihi31.png?width=756&format=png&auto=webp&s=91dd90e89bf8d3514e63fe0abd6ac6ecdeba26d1
When explaining what the ping swing was all about, I said it set up the really big move in the other direction. The breakout. What I more commonly refer to as the impulse leg.

https://preview.redd.it/bqd1nzmpihi31.png?width=702&format=png&auto=webp&s=e5a20bc5373448056b37b2fc155c7889ce7a3739
Source https://www.reddit.com/Forex/comments/clx0v9/profiting_in_trends_planning_for_the_impulsive/

So based upon all of these factors I am prepared to trade a move that may be surprisingly strong from a really specific area (will get into trades later). Everything in my analysis form and strategies design allow me to be ready and position my trades to profit from some wild event there may be in the coming week or two weeks (maybe three ... four, eeek. I'm hedging). Now I'm not saying I know there is going to be a certain type of Brexit news ... I do not care. I'm not saying we should think it's very possible the FOMC spikes high and then fucking crashes (surely something to do with that illusive "pricing in" thing) ... I do not care. I am not predicting these fundamental events.

What I am saying is based upon the information I have shared with you so far, a person can design a trade plan that would position them for this sort of price action, and this sort of price action almost always happens when there's a news event. Got that? Think it's very possible there is a huge swing coming, entirely unrelated to any news events that may happen in the future that I could not know about now.

What sort of price action could we expect ... ?

We already have the trade plan for that last week.
https://preview.redd.it/ymsbcbc7khi31.png?width=723&format=png&auto=webp&s=77468b23e015a36b2fffc693f7a899facd7b82e1
Source https://www.reddit.com/Forex/comments/ctyr3p/gbpusd_shaping_up_for_good_sell_but_not_quite_yet/

GBPUSD closed near the high on some of my brokers but crashed 30 pips in the last minute of the day on another, and this probably means it's opening up gap low. Exactly what we'd expect.

Why?

https://preview.redd.it/uai4g2blkhi31.png?width=893&format=png&auto=webp&s=df1c62af4605534a942753a5a311c28f8ae6b1ac
Do this experiment, find this double top pattern. Find the "confirmation" move I explained, and then honestly think where you'd set a stop "safe above the highs" here. Count how many pips it went past that. Probably about 5 - 7 and then crashed. That's the trap.

Lays the next trap. For this let's recap the traps I've shown you and see where we are in the cycle of possible mistakes.

https://preview.redd.it/2mkipd82lhi31.png?width=711&format=png&auto=webp&s=bc48f68d785cef1a46c3d4e96fbe675c2cf056dd
Last week I said we were at the transition from black to blue. Then "the news" made that happen. Then late in the week I said look for spike out trend continuations. All this happened.
So selling into that event was either devastatingly unlucky, there was nothing you can do about it and it is what it is if it happens again (frequently). Or, it was selling mistake #2 (shown as 4 here near the low)
https://preview.redd.it/4xrmb3pilhi31.png?width=717&format=png&auto=webp&s=825bc81b68fc5a465b65d87634f7888a4be87c97
What do we have after selling mistake number #2. Selling mistake number #3 (no need to re-invest the wheel).
#3 is a 5 (just to be confusing), and this is "deep correction" selling mistake. Would you think it would be fair to agree anyone selling the double top like move we've discussed here would have made the mistake of thinking a deep correction was a trend continuation? People will have. They do every cycle. This is why I can "predict" it. Or, it's lucky and there's no way you can know. Pick your flavor.
Mistake #4 . Single candle price action. In this case I am forecasting this to be the crash pre-close (on some brokers) or the gap down (a gap is just a big swing). This looks like the real deal on the trend continuation. People will sell into this early in the week. It may be in the form of a big gap down, it making it's low early in the week and then people sell the gap fill (or part retrace). Anyway, the better trade is on the other side of this. We have not yet hit the 61.8 fib and this sort of sell off would be a "known" seller trap.
#5 tends to form when price first hits the 61.8, There is an immediate and dramatic sell off. Then there is a spike out of the 61.8 and the real trend move begins. We should watch for this sort of action Tue/Wed and should expect to be seeing it (very specifically) close to 1.2343.
Which is no surprise to see shaping up since this specific PA is what I started speaking about when it was at the lows.
https://preview.redd.it/frstw4dinhi31.png?width=609&format=png&auto=webp&s=97b635c00a004352b990e322524d48400b809888

So if we see these further confirms;

1 - Price spikes/gaps down and then returns aggressively to the high
2 - Price hits 61.8 and falls quickly
3 - These things happen in the immediate foreshadow of a news event (FOMC?)

All of these things would be consistent with things that happen before the following scenario:

1 - News is released. It's unexpected. Either the number is off, it was random (tweet etc) or the market just moved totally different from how it would be expected to (cue theories to fill gaps).

2 - Price moves rapidly up. It makes a "new breakout" of a "key level", and then capitulates. 100 + pips can be moved in very short periods of time.

3 - After this move has happened, there is a sharp low made and we uptrend for the next few weeks.

I am not "predicting the future", but this is a viable trade plan for the coming week(s). We sell GBPUSD 1.2340 area. Stop 1.2410 or so. We target 1.1900. Then we look for the market to make a low (after a very volatile fall) in the 1.1850 sort of area. As a rule of thumb (and I am not being flippant, this is true), if you see people in forums asking what just happened, that will probably be your cue to go and find this trade on your chart. This is a regular indicator.

I think if this is to happen this week, the high will be made Wed/Thurs and crash late week. If it's not to happen this week, a ranging week may be ahead. Even a couple weeks. These would not invalidate the analysis, for the market to range a few weeks to form a "strong high" and then do this take out move I've described is also something to be expected. I would be surprised to not see GBPUSD drop 300 pip from the high in coming month.

Prepare for the Impulse!
submitted by whatthefx to Forex [link] [comments]

some helphul common terms for forex traders

Common terms:

submitted by livmarsh1992- to u/livmarsh1992- [link] [comments]

[Request] I was looking for some insight on low spread brokers in the US.

Hey everyone.
I’ve been trading crypto for a while and have been out of the forex game for a bit and was hoping to get back into it since the crypto market has been flat for so long but I ran into some trouble when trying to find a new broker. The 2016 ruling on eligible participants put my previous broker out of business and made it impossible for me to trade with certain brokers such as Interactive Brokers.
I was looking for a new broker that has low spreads which seem to have all but died in the US. I’m okay with commissions but the spreads at Oanda, forex.com, TD, and Ally are all way too high for my blood; especially for my bread and butter pair GBP/USD. ATC brokers actually seems like a pretty good brokerage for my needs but after some research I found troubling news with their bankruptcy and I don’t quite understand how an introducer brokerage works. (maybe the answer lies with ATC and you guys can take my mind off the drawbacks.)
I have a pretty decent strategy that after back testing with commissions and spreads equal to ATC’s under sub-par* conditions has max 30% drawdown, avg 15-20% profit per month, and 1.23 sharpe over 10 years. The downside of this is that with my strategy I have a very tight stop, 6-12 pips most of the time. The larger the spread the worse off I am. A 10$ per lot commission is nothing compared to an additional pip of spread in my case.
Can anyone suggest a US brokerage that suits my needs other than ATC or do I have to take the risk on them not going bankrupt again?
*Sub-par trading conditions include 3x the avg spread taken into account as slippage, including Friday as a trading day even though the strategy doesn’t work near the weekend, and optimized for a different timeframe and currency pair.
TL;DR - Is ATC Brokerage the only low spread broker for the US and are they trustworthy?
submitted by GgMc to Forex [link] [comments]

TD Ameritrade and Forex (Gain)

So the general idea is that TD is an introducing broker to Gain (Forex.com) and it even says on the sticky info thread here. Thing is, I pulled up both live accounts and Forex.com and TD do NOT have same spreads. TD also has floating margin requirement that is not present on Forex.com.
Right now there is 3% margin requirement on EUUSD while Forex.com has usual 2%.
Forex.com usually has 1.2 - 1.5 pip spread on EU while TD majority of time is 09 to 1.0 pip spread.
USDCAD spread is 0.2 - 0.4 pips worse on TD than Forex.
So clearly there is some differences here.
Meanwhile ATC is completely identical in everything to Oanda.
So what is TD ameritrade??
submitted by Mozdar to Forex [link] [comments]

Derivatives Trading is on the Edge of a New World With Artificial Intelligence on Level01

Derivatives Trading is on the Edge of a New World With Artificial Intelligence on Level01
https://preview.redd.it/2r0yyzpr9z321.png?width=640&format=png&auto=webp&s=4d3d9fa506588761696133140ca38af266215f29
Could artificial intelligence in trading become the new normal? Advances in technology and new standards surrounding automated trading are pushing us ever closer to transforming the industry. If this sounds very much like a science fiction movie, we can assure you it is not.
In fact, artificial intelligence (AI) is already being utilized by banks, but its going to take a little longer for people to catch up to the idea that their investment is as safe, if not safer than it would be if their investments were handled by humans. An analysis by Accenture indicates that between 2018 and 2022, banks that invest in AI and human-machine collaboration at the same rate as top-performing businesses could boost their revenue by an average of 34 percent. AI’s application is proven to improve efficiencies or customer outcomes and the software-development team at Level01 is working hard to achieve a human-machine collaborated future in derivatives trading — to help people trade better, with ease and peace of mind.
As far as discernment in artificial intelligence in trading go, algorithmic trading is perhaps the most discussed of all. If we take a closer look at its application today, automated trading reflects our attitudes towards technology and how it is evolving the way we invest. Yet much of the discussion is still fixated on the hypothetical scenarios that automated trading would take over human jobs. Much less weight is being placed on the fact that AI through its fundamental form known to many as algorithmic trading has been used by institutional and retail investors for almost a decade now. “But there’s an obvious gap between institutional and retail users when it comes to trading and we aim to bridge that gap by creating a ‘level playing field’ for Level01 users. We do this by empowering them with our AI price discovery mechanism known as ‘FairSense’” says Naglis Vysniauskas, Head Quant Developer at Level01. “The AI was built using cross-stream analytics that were previously available only to institutional organizations.”
From helping investors to assess true market value of the contracts to enabling them to continuously update their bid or offer price relative to the implied fair value by FairSense, plenty of functions were built in to support human-collaborated trading, rather than substituting it. Introducing these features on a sleek user-friendly app is a strategic step-by-step approach to help the public get used to a whole different way of investing on an efficient and trustworthy Peer to Peer Derivatives Market platform like Level01. “People will experience trading at speeds, liquidity, freedom, accountability and transparency that have never been available before” says Vysniauskas. Those that find it hard to believe, can now experience trading on Level01 without limitations traditionally set by brokers, who would force their clients to accept their given price, disallow clients from dictating the best execution and insist that clients to trade at a ‘spread vs. mid’ (clients have no power to negotiate the level of spreads which they pay). The level of freedom granted to users on Level01 is enticing and highly persuasive.
“On the Level01 Derivatives Exchange platform, retail investors (or users as we call them) can trade against multiple peers or brokers, and this enables them to find best execution available,” says Vysniauskas. “Also, the ability to specify a fixed spread to fair value of an instrument could potentially reduce trading spreads significantly for large investors.” The practicality of this feature though may not fit small investors though, because leaving fixed bid or offer prices without continuous adjustment would be risky in markets where sudden movements are common. “That is why we built Level01 to give users the freedom to continuously update their bid or offer price relative to the implied fair value by FairSense, this is so that if the trade is not a match, the bid or offer price is updated continuously as market moves to ensure that it is always priced competitively relative to the most recent fair value” adds Vysniauskas.
HOW DOES FAIRSENSE WORK TO LEVEL01 USER’S ADVANTAGE? For the purposes of explaining how FairSense AI helps users on Level01, we take a look at this case study of a Binary Option Example on EUUSD Forex Pair.
https://preview.redd.it/qqiilcks9z321.png?width=600&format=png&auto=webp&s=cfff89ed36c8051751e93f072c5c5f89b2ecace5
A 10-minute binary put option is being offered at a $59.73 (fair value +$0.50). The order is not filled or matched almost immediately, and after 4 seconds, the EUUSD spot price has moved by 1.5 pips and the fair value has not moved above the investor’s offer price.
In this case, a contract is being offered below fair value.
Now take a look at Chart 01 below. You can see that the relationship of the fair value of an option with the spot EUUSD price. You can tell that the fair value is highly dependent on the spot rate. Thus, if a retail investor submits an offer to an exchange, it might be filled at a time when it is already below the fair value — an undesirable scenario for investors. Such scenarios will stop investors from submitting further offers to the exchange.
https://preview.redd.it/v9gfxbit9z321.png?width=600&format=png&auto=webp&s=fea9e3720a679b5f79e0306409c73f71844210ac
To resolve this common problem, Level01’s FairSense AI enables all investors to quote ‘relative offers’ to FairSense’s fair value. This allows investors to simultaneously compete for the best offers without imposing them with a requirement to have their own algorithms for price estimation and having them continuously updating the quote manually.
https://preview.redd.it/4lmbz3du9z321.png?width=600&format=png&auto=webp&s=dd59e23b3bab3d0d0097f5a0016bf489ddbbae4f
In many ways, having AI as the norm will become essential to creating investment outcomes that are optimized for every type of investor, truly transforming the way trading is done. With an advanced Blockchain platform, AI and inbuilt frameworks that are designed to favor the user, Level01 will shape the future of automated trading on its Peer to Peer Derivatives Exchange at scale and speed that the world will come to marvel.
submitted by Level01Exchange to u/Level01Exchange [link] [comments]

Binary Options Trading: What You Need To Know

Binary option trading is a relatively new development in the retail trading world. Five years ago, no one had even heard of it.
Since 2012 however, the popularity of binary options surged as a result of aggressive marketing by binary option brokers, and the promotion of binary trading software by the trading "gurus".
Right now, interest on the topic continues to grow at record levels. Given its current popularity, binary options are likely to be the first "asset" that beginners start trading with.
However, just because something is new and popular... doesn't mean it's worth doing. (Who remembers the fuss over bitcoin trading?)
Opportunities come and go all the time in the retail trading space... and it's important for us to tell the difference between sustainable business models and short-lived fads.
So let's take a moment to examine binary options, and see if it's something we should be paying attention to.
But before we do that, let's first take a quick look at traditional (i.e. vanilla) option contracts.
VANILLA FOREX OPTIONS
Traditional option contracts were initially introduced for people to hedge against future uncertainty.
For example, a German company selling cars in the United States would worry about high EUUSD exchange rates in the future.
Why?
Because then they would be getting revenue in a weaker currency (USD) while having to pay expenses in a stronger currency (Euro) in their home country. This results in a significantly lower net profit, or even worse, a net loss.
Forex option contracts were thus introduced to solve this problem, as any losses stemming from currency fluctuations could be offset by profits made from buying options contracts.
To continue with the example, the German car company may choose to buy EUUSD call options, which would profit from an increasing EUUSD rate. Thus, any operational losses in the future (due to a high EUUSD rate) can be offset by the profits gained from those option contracts.
This is, and continues to be, the main purpose of Forex option contracts.
Now of course, in order for the German company to buy call options, someone has to be willing to sell it to them.
Perhaps, a financial institution in France does not believe that the EUUSD will continue to strengthen over the next 12 months, and so is willing sell call options to the German company.
(This, by the way, is how financial markets work. Participants have varying views of the future, and so trade against each other in line with their own expectations.)
In this transaction, the German company pays a fee (in buying call options) to protect against future currency risk, while the financial institution gets paid to take on that risk.
To summarize:
- The German car company looks to limit future currency risk by buying call options - The financial institution (or speculator) collects a fee from selling call options and assumes the currency risk 
More generally:
- Option buyers pay a fixed fee for the potential of a very large profit - Option sellers collect a fixed fee for the potential of a very large loss 
FOREX BINARY OPTIONS
In a vanilla option trade, the buyer does not know in advance the amount of money he stands to win. Similarly, the seller does not know in advance the amount of money he stands to lose. The amount is ultimately determined by how far the market price moves.
In a binary option trade however, the trader will know in advance the exact amount he stands to win or lose, before taking the trade. Binary options are named as such because there are exactly only two possible outcomes: you either win a fixed amount, or lose a fixed amount.
Binary options ask a simple question: will the price be above [price level] at [time]?
For example: will the EUUSD be above 1.3000 at 4.30pm? If you think so, you buy the binary option. If you don't, you sell.
That's pretty much all there is to binary options.
UPSIDE OF BINARY OPTIONS
As you can see, binary option trading can be simply explained and is easily understood. This is a big benefit to new traders, as they can quickly learn the basic mechanics and start trading right away.
A related benefit of this, is having to make fewer trading decisions.
In spot forex trading, for example, one has to decide:
- Where and when to enter the market - The appropriate trading lot size to use - How to manage the trade - Where and when to close the trade 
In binary option trading however, there are only 2 decisions to make:
- Whether the market price will be above a certain price level at a certain time - How much to risk on the trade 
As such, binary options offer a much simpler trading process. You don’t have to think about (or calculate) leverage and margin at all.
And, since the potential loss on each trade is fixed, you will never get a margin call.
Lastly, options offer traders the unique ability to make money by predicting where prices will NOT go. (This goes for all types of options, not just binary options.) This can’t be done in the spot Forex market.
So… does binary option trading sound good?
Sure it does!
Well... at first glance, anyway.
Now let’s take a look at the downsides of binary option trading. These are the things your binary option broker won’t tell you.
DOWNSIDE OF BINARY OPTIONS TRADING
The most obvious downside of binary option trading is the lack of flexibility.
For example, if the market price moves even one pip against you upon option expiry, you’ll lose your entire stake. You can’t choose to defer your trade exit under any circumstances.
Also, with some binary option brokers, you can’t change your mind and close or modify a trade before expiry. In this sense, a binary option trade is typically an all-or-nothing proposition.
These points on inflexibility can be summarized by the following comment (found in the Forex Factory forums):
"I once traded a forex news item where I closed a wrong call with a 20 pips loss, and ended up making 350 pips on the reverse trade, giving me a net profit of 330 pips. This scenario cannot be replicated in binary options.”
Lastly, the value of a binary option is fixed between 0 and 100, with the broker charging a bid-ask spread and often, a commission as well. The implication of these factors is that the average loss per trade will always be larger than the average profit. This is a structural (i.e. inherent) characteristic of the binary option game.
Thus, in order to break even, a binary option trader would have to win at least 55% of the time. Compare this to spot Forex trading, where a trader can be profitable by winning just 40% (or less) of the time.
MY PERSONAL OPINION
On paper, binary options are an opportunity seeker’s wet dream.
The promise of regular fixed payouts and a focus on short-term profits are exactly the characteristics that appeal to people looking for a quick buck.
Unfortunately for them, what feels good in trading is typically a losing approach.
You see... the only way to keep making money with binary options is to accurately predict market prices at least 55% of the time, AND get the timing right. This is an exceptionally difficult feat to accomplish.
In other words, you can correctly predict future market prices AND STILL LOSE because you got the timing wrong by a few minutes.
HOWEVER
All this said, there may be a genuine opportunity here… and that is to be a seller of binary options.
Why? Because it’s a lot easier to estimate where prices will 'not go', rather than trying to predict where it will. Whenever the market settles at a particular price level, it is not settling at a dozen other price levels.
Does this make sense?
This root concept may then be expanded to form a complete binary option trading strategy that you can use.
Note however, that this is a benefit available to all types of options, not just binary options.
SO, ARE BINARY OPTIONS JUST A FAD?
One reservation I have about binary options is that they do not serve a major commercial purpose. Unlike the spot and derivatives markets that serve to benefit society, binary options exist solely for speculation purposes.
In other words, it can be reasonably argued that binary option trading is not much different than a casino game.
Without a commercial purpose, binary options could be banned tomorrow and not impact anyone else other than the brokers and speculators.
Compare this to spot Forex trading, or Forex futures trading, upon which global commerce relies. These markets are unlikely to be closed or banned, because they serve a useful purpose beyond speculation.
As a retail trader for the past 10 years, I’ve seen all sorts of gimmicks and fads come and go. Some years ago, expert advisors were the hot topic. Slowly but surely, people are now gradually realizing that "automated trading" isn't as amazing as it's cracked up to be.
Will binary options follow suit?
My opinion is yes, I think they will.
Binary options do not provide any major benefit to serious traders, and I think that once the opportunity seekers get bored or lose enough money, they’ll lose interest and turn their attention to the next shiny object.
WHAT DO YOU THINK?
So... do you particularly agree or disagree with any of the points I’ve mentioned? Did I miss mentioning any important points?
Let me know what you think!
The original article is published here
submitted by pipmavens to investing [link] [comments]

Become A ForexTime Introducing Broker (IB) PIPS MASTERS - YouTube FBS IB ( Introducing Broker ) Review  Tani Forex Broker tutorial in hindi and Urdu introduction to Forex Market ( For beginners ) Forex Best Broker  PIP Calculation  Tamil - YouTube

Pip Calculator; Profit Calculator; Contact Us; Blog; Introducing Broker Lorem ipsum dolorsit amet consectetur adipiscing elit sed. Home Introducing Broker. Introducing Broker Our introducing broker program is designed for traders who want to earn a significant amount as commission for referring their clients. Bring your clients to a powerful global trading system and get benefits from our ... Introducing Brokers (IBs) are companies or individuals across the globe who make money by introducing clients to only pips. In return for referring clients to only pips ,our Introducing Brokers receive a commission. Becoming an Introducing Broker can be the easiest method to increase your income, as there’s no cost to sign up. As an IB you can work from anywhere, even promoting your services ... Join our Introducing Brokers Program at Pip Affiliates. Click Here to Join Our Forex Affiliate Program; The Introducing Broker (IB) Program is a great opportunity for any individual or organization that has contacts in the FX trading community, to receive remuneration for introducing clients to Trading Point. As an IB you can introduce clients to Trading Point and will receive commission on ... Forex IB Programs - Forex introducing broker commission plans Forex IBs (Introducing Brokers) receive a fixed or variable commission (aka rebate) for every trade made by their referred clients. Forex brokers come with different types of partner commission structure, the most common type is Commission per lot which is a fixed rebate per each lot (Trade size of an FX Trade). The term “Introducing Broker” or “IB” (also known as a “Referring Broker”) comes from the commodity futures market. The simple definition refers to a broker or referral agent who introduces futures business to a brokerage firm and is compensated for the business or transactions generated by these referrals. This article will breakdown the Forex IB business. Introducing Broker. Become a Partner. Our Introducing Brokers (IB) program allows organisations and individuals around the world to be remunerated for introducing new clients to us. We offer a total solution, from provision of the trading platforms to execution and settlement of transactions. An account manager is appointed to each IB to help them develop their business and to ensure we ... Viele Broker geben die Kurse ihrer Instrumente heutzutage mit fünf Nachkommastellen an, ... Wir hoffen, dass dieser Artikel die Frage nach der Bedeutung des Begriffs Pip im Forex Trading beantworten konnte. Achten Sie darauf, den Begriff immer im Kontext zu sehen und sich so immer sicher zu sein, welche Größen Sie verwenden. Hoffentlich konnten wir Ihnen auf Ihrem Weg zum erfolgreichen ...

[index] [1869] [23742] [19332] [6923] [2715] [7675] [16089] [5315] [13669] [17386]

Become A ForexTime Introducing Broker (IB)

Hey everyone! This is a video that I feel like all beginner forex traders to take into account when starting their forex journey. If you would like to join m... In this video i shared few best Forex brokers , Lot Calculation and PIP Calculation. Follow me here 👇👇👇 #TELEGRAM GROUP: https://t.me/instaeducation http://t... this is Part One of our introduction videos and we will keep it coming, a lot to share and this is just the beginning. Get my latest Books " Golden Start " Using the link below: https ... Become an Introducing Broker for ForexTime (FXTM) - all you have to do is refer clients to us and we will reward you for it! Find out more at www.forextime.com. FBS Russian Forex trading broker. In this tutorial information about Forex IB program. Introducing broker is one of the famous way to profit. FBS provide 10$... PIPS MASTERS. Subscribe Subscribed ... LESSON 1: BASIC INTRODUCTION TO FOREX. 1. What is Forex trading 2. Brief history of Financial Markets (Forex). 3. How Forex Markets work. (currency exchange ...

http://binaryoptiontrade.edertere.ml