Trading Order Out of Chaos
I’ve been asked lots of questions as to how to determine the next moves in GBPUSD. There have been many arguments for a bottoming out at the current levels, as well as for a continuation given the strength of the downward move experienced post Brexit. In this article I’ll try to get a handle on […]
This indicator will average the bid / ask spread over the last N ticks. The purpose is to be able to monitor the behavior of the currency pair during fast markets, such as occur before and during news announcements. It’s useful for indicating times of increased danger, and can be used as a possible flag to square positions. The parameters are:
- MA: the number of ticks to average the bid/ask spread over. The default is set to 30 ticks
- showTickCount: a boolean flag, which when set t… Read more
For a lot of people day trading represents the attainment of their trading prowess. However, you need markets to move to capture profit, especially if you have to cross the bid/ask spread. It therefore makes sense to trade only during those times in which you have a range-expansion. The indicator Range.mq4 measures exactly that. If you place it on a 1M (minutely) chart, and set its LookBack period to 15 (that is the last 15 minutes), the indicator will show you the height of the range of … Read more
It’s useful to be able to add a trailing stop to your trades. Given I never got my head around the MT4 functionality I wrote this small EA, which does the job. Place it on top of the currency chart and give in the number of pips by which it should trail your trades. You need to put it on currency charts for which you have trades. So if you have USDJPY trades put the EA on an USDJPY chart. This EA will not trail stops for trades that have a non-zero magic number. So if you have trad… Read more
Taking Control of Your Trading Numbers – that means actually being able to replicate the results that others produce. It’s the only way to be sure that you know what’s going on. Well, many people got back after last week’s article asking about the details of the calculations as well as about some of the more technical jargon:
- What do I mean by asset?
- What’s an asset bias?
- What does it mean to risk-adjust returns?
- How can I go about calculating the charts in the article?
- How … Read more
This XLS accompanies my guest article on RectitudeMarket.com describing the performance of short option strategies on EURUSD. It includes the relevant formulas and data so that you can replicate the results or apply them to your own option strategies.
Mean Reversion trading works for equities; and currencies. We saw in the last article how combining two simple ideas for equities produced a stable system over the last 30 years. Can we repeat a similar analysis for currencies? Yes! However, be warned. Currency trading is a different magnitude of difficulty to equity trading. Currency traders have had a real tough time since 2008 (take a look at the BTOP Barclay Hedge Currency Trader Index). As always it depends which pond yo… Read more