Be Prepared !

Be prepared to see some selling pressure in the next 3 weeks. Short term view is still bearish, however the long term view is still bullish as the KLCI is still trading above the 200-day Moving Average.

Doubleplay v 4 0 expert advisor Live Forward Testing

I have just started the forward testing of Doubleplay v 4.0 on one of my live accounts. I will rely solely on the trading made by Doubleplay to profit.

The account I am testing the expert on is a mini IBFX account so I have set the mini variable to true. I have kept all further settings at their default value with a 5% risk factor.

Since live testing results made by Hal himself and other traders (link at the bottom of the left column) have shown this expert to be profitable (and I have found Doubleplay v 3.5 to be profitable also) I find it reasonable to give this expert a chance in forward testing. As usual, statements and results will be commented weekly.

I hope this expert delivers as much as its predecessor !

Forex Expert Advisors The Forex Robot WorldCup Experts an Unbiased Review

Through the past few days I have been receiving several spam emails as well as requests from Asirikuy members to review the Robot WorldCup set of expert advisors. These expert advisors were run on a 2 month competition on live accounts through the past few months proving to give profitable results on this period of time. Now the people who run the competition are trying to sell these experts for 999 USD with the claims that this set of trading systems is able to produce very high profits in a proved, reliable fashion. On todays post I will review these claims against the evidence provided. I will also tell you my opinion about the likehood of long term profitability of these trading systems.

First of all, it is clear to me and it should be clear to anyone who has been trading with automated trading systems for a while that a system developed for a competition and a system developed for reliable long term trading are too completely different things. The aim on a competition is simply to win the competition while the aim on long term investment is to increase ones capital with the least possible risk on equity in a long time frame. On a competition the participants are not risking their money and they are trading on a very limited amount of time under very limited market conditions. This of course encourages the use of curve-fitting and very high risk levels which would undoublty not be used in live trading.

Is there any value to a 2 month live test ? The truth is that trading a system on a live account for 2 months does not give any significant information about a trading systems performance in the long term. Why do this people think that a 2 month test can guarantee the continuity of those same results indefinitely ? It definitely CANNOT. A 2 month live test only shows that the system was profitable under a given set of market conditions under a given amount of risk. For example, if Watukushay No.2 had been run with a Risk of 20% per trade (as some of these experts were) for the past two months it would have made more than a 140% profit in live trading. However this does NOT mean that the system can get a very high profit every month, it merely means that the system was very profitable within that period but a 10 year backtest reveals that this is not the average case and that running the expert with such high risk settings eventually brings the system to a deep draw down and wipeout owing to the appearence of unfavorable market conditions and the EXCESS risk used by the system.

This sales pitch the forex robot worldcup experts are based on is nothing but a misleading half-truth. Yes, the experts were profitable for 2 months but no 10 year backtest is given to compare results and check for live/back testing consistency or even to have an idea of the performance of the experts under different market conditions (if live/back testing consistency is indeed existant). In fact, the backtests are limited to one or two years, something VERY suspicious given the fact that 10 year backtests are clearly available and easy to perform on the systems. Do they have something to hide over long term results ?

To me it seems evident that the whole point behind the competition was to get some very high profitable results for a short period of time on some systems only to have them sold after to make a MUCH higher profit that what they made on live accounts (and what the other systems lost). Why arent the experts still being traded ? Why was the live testing stopped ? Chances are that if you run any given set of trading systems curve fitted to the last year of trading for 2 months with high risk settings, some of them are bound to give you very high returns. Will they give you the same returns in 10 years ? It is highly unlikely and the people who are selling the forex robot worldcup expert advisors have NO evidence of long term profitability. The danger in trading this systems is extreme as no idea of the performance under unfavorable market conditions is known and therefore people have no idea of the amount of draw down (or wipeout) they will go into.

For all the reasons mentioned above, the misleading profit targets, the lack of 10 year backtests with live/back testing consistency tests and the fact that the tests were overly limited and have been stopped I consider these expert advisors NOT worth buying or testing. If they add 10 year backtests, back/live testing consistency analysis and continue the live tests of this experts I will be more than glad to redo this review. Meanwhile this forex robot worldcup are nothing to me but a bunch of yet more short term profitable systems with no evidence or support for long term profitability.

If you would like to learn more about the systems I have developed with long term profitability and controlled risk in mind please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Forex Expert Advisors Nitro FX by New England Forex Technologies an Unbiased Review

After a suggestion from a fellow trader and receiving several spam emails about the system, I decided to review the nitro-fx trading system developed by the new england technologies company. The expert claims to be a high accuracy trading system being able to produce profitable trades that make 20 to 50% with just a 3% account equity risk per trade. The system trades only once per week and is based on support and resistance trading according to the authors. The following paragraphs will describe my opinion about the trading system based on the evidence provided by the authors.

First of all, the system description claims that support and resistance trading is able to bring immense profits with a small account risk per trade. This can be the case since a support resistance trading style usually aims at big profits when breakouts are produced but fails a lot when false breakouts happen. Another important problem with resistance support systems is that defining them, while easy for a human being in front of a computer, is hard for a computer since the mathematical basis of a support or resistance level is far from "strict". Up until now, this has proved a challenge for the development of computer based support-resistance breakout systems.

Now, even if they have achieved this very difficult task, they do fail to provide any reliable proof of their claims. The only thing they seem to mention on their sales page are very limited backtesting results (only one year) with no live testing. I mean, it is completely worthless to have a backtest if there is no actual forward testing information to either confirm or deny the realiability of the backtesting results. There is also no point in looking at the backtests since they do not procvide the statements which would be necessary to give a clear assesment about the systems trading style. In my opinion, the fact that they are ommiting backtesting from 1999 and live testing is a clear indication that non of these two things support their claims.

Well, as for most systems out there, it seems that our friends at new england technologies can talk the talk but fail to walk the walk. Again, some graphs showing some arrows with numbers is no proof of profitability. I can draw arrows and text on a trading chart. We need live account information that can be compared with backtesting as well as extensive backtesting that can show us the perfomance of this system under several different market conditions. Of course, after evaluating their claims and their evidence, I would have to say that this system is definitely NOT worth buying since they absolutely FAIL to provide any reasonable proof of their claims.

If you would like to learn more about how you can evyou too can realize profit in the forex market using automted trading systems with realistic profit and draw down targets please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed this article !

Weekly Chart Update 18 4 2014

The US Market

Since the beginning of March, the US market has been on a rough ride. It passed through the 20 day moving average line as many as 8 times! This shows how unstable the market is. On Thursday, although the S&P 500 closed above the 20 day MA again, but Im still skeptical about this chart pattern development as the rising prices were accompanied by falling volume. I will step aside and wait for more confirmation on this. Resistance at 1890, support at 1800.

KLCI Market

I did a comparison on the regional markets PE ratios I discovered that KLCI is on a pricey side with 17 times PE ratio. Hang Seng and Shanghai are among the lowest with 10 - 11 times. STI is 14 times while Thailand is 16 times. This probably explains why KLCI is lacking momentum to move higher. Support at 1820, resistance at 1870.

STI Market

Since end of March, STI broke out from the bearish trendline and currently it looks overbought. If you are looking for opportunity to buy into the STI stocks, perhaps you could wait for a pullback to add more positions in it. For long term investors, I always advice invest in stages, or invest during the cycle low months such as February, May, August and November. Support at 3150, resistance at 3300.

Introducing Variety A New Blogging Project

Today we are going to go a little bit away from the usual articles about currency trading so I apologize to my regular audience if you were expecting the usual - hopefully well written - article dealing with forex automated trading or other revelant aspects of the forex market. However today and tomorrow I am going to be talking to you about some interesting developments that have happened within the last month (dont worry, tomorrow it will be about automated trading), which have prompted me to make some new projects to improve the way in which things are evolving.

This post will be dealing with a new project I came up with which has absolutely nothing to do with automated trading or forex for that matter. This new project started as a need for variety as I felt my life and projects were being limited by my work as a currency trader. Certainly being a day trader is fun and automated forex trading is an amazingly complex and wonderful field but in addition to developing systems, investments, asirikuy and this blog I needed to do something else which stimulated other areas of my - now heavily left hemisphere oriented - brain.
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What did I come up with ? Well, since I love helping people and I do feel I have substantial knowledge in other fields which I developed within my quest for profitability in trading and my studies as a scientist, I decided to start a new blog about just whatever I could think off that I could write to help people improve their lives. This new blog called "Entirely For You" (you can always access it directly at http://www.entirely4you.com) is my attempt to show people another side of me which will have- hopefully - a lot of practical and theoretical knowledge to help people in their everyday lives. (for those of you who have read my blog for a while- yes- I did have a name in Quechua :o) but it was already taken !)

My objectives with this blog are clearly not financial but only recreational in the sense that I love writting and writting about other things besides automated trading is a way to "ease my workload" and prevent a burn out which would have certainly happened in a few months or years ifI had continued this excessive focus on automated trading systems. Sure, I will continue to post daily here and do all the weekly work as usual but my new blog will provide me with some relief when I feel like writting about something else and hopefully it will also give people a good deal of information derived from the little but applied wisdom that I have acquired through my life.

Of course this blog also means that you will get to know me better as a person, something which I think is vital when you need to develop trust in someone else, you will learn about my opinions relevant to other subjects and definitely some other aspects of my personality. This not only means that you will know that I am definitely a flesh and bone human being but that I have absolutely nothing to hide from you and that everything I do in my life is approached from the most ethical, honest and proffesional way I can :o). So I hope you enjoy this new website and you visit it often ! (update frequency will vary but probably I will post once or twice a week) Please leave any comments or opinions you may have ! :o)

On a side note, there is also another surprise for you related with automated trading which will be released tomorrow (hint : notice that new orange box at the bottom of the page ?)

If you would also like to learn more about my work in automated trading please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Forex Expert Advisors Forex Lightning an Unbiased Review

Ending this week of heavy revieweing of recently released expert advisors I present you the Forex Lightning trading system. A website visitor left me a message on the websites chat a few days ago asking me to review the system and therefore I am writting this post to honour his request. Within the next few paragraphs I will talk about the evidence provided on the experts website as well as whether or not this evidence is able to backup the claims of profitability made by the author. I will also analyze the trading evidence provided and give you my opinon about the trading systems potential for long term profitability and whether or not I consider it worth buying and testing. Is the forex lightning the answer ? Well see within the next few paragraphs.

The Forex Lightning website must be one of the most simple websites I have seen selling a trading system. The website merely has two pages, one for the system and one for support with the first one being just a little bit more than two screens long. The systems page also contains the evidence of profitability provided by the author as well as some testimonials (which we cannot know to be true). The claims made are very simple with the expert showing some profit figures on the top left showing more than 1000% profit for the past three years of trading.

The evidence of profitability provided is not conclusive. There are two statements which are said to be "live" but have absolutely no investor access confirmation. Why wouldnt the author provide investor access or load the statements into myfxbook for investor access confirmation ? In my mind it seems that these statements are more the product of demo testing than live testing, proof of this seem to be the account numbers which have the length of demo and not live accounts for FXCM (however if this is not true Ill be glad to correct it when investor access is provided). The fact that the initial balance for the accounts is large (100K) also points out that the accounts may more likely be demo than live accounts. There is also the possibility that the statements have been made up since there is simply no verification available.

The trading statements are also very limited with only 1 or 2 months of trading results and no live updating ability (that I could tell). The average risk to reward ratio seems to be favorable (about 1:2) but there are some things within the statement that I dont fully understand such as the placement of orders with double lot size somthing which doesnt seem to be a Martingale strategy but the result of some other money management tactic given the fact that the amount of money is not doubled after loses but two limit orders with different lot sizes seem to be placed everytime.

I have to say that there is no evidence at all to backup the figures of profitability for past years given and even more, there is no evidence to say that the EA has been trading on live accounts or that it can achieve those targets in the long term. There are no investor access confirmed live accounts or 10 year backtests so that a full long term profitability analysis with back/live testing consistency analysis can be carried out. For this overwhelming lack of any reliable evidence I have to consider this system NOT worth buying and testing. Once live-update investor-access confirmed live accounts are added and 6 months of results can be compared with a 6 month period backtest with a 10 year backtest also available I will redo this review. In the meantime I think that the forex lightning system has no evidence to be called profitable and running it would be a pure bet with no true idea about the systems potential for long term profitability.

If you would like to learn more about automated trading and how you too can learn to trade with sound trading tactics using automated trading systems please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

RenegadeFx Chameleon Forex Expert Advisor Review

I have been asked by some of my newsletters subscribers to take a good look into renegadefxs Chameleon expert advisor trading system. Of course, this is not the first time my eyes have shifted to their expert advisor website but I had refrained from reviewing them until they showed enough information so that I could issue my opinion about their system.

The first thing I noticed abou the Chameleon expert advisor is that it is really expensive. Now, this has nothing to do with its profitability but its price is far superior to the average ea which is between 100 and 400 USD. Creators that put such high prices on expert advisors usually consider that they are offering something much better than what the competition is selling. However, if the ea is actually profitable, their price would not be so high to pay.

When starting to analyze the way the ea trades according to their back and live testing I realized that most of the trading strategies used by this expert advisor often hold large amounts of open draw down. You can see that most of their trading strategies hold open draw downs far superior to their already adquired profits. The most profitable strategies, such as the martingale, is based on taking huge amounts of risk at certain times so it is obvious that it is highly prone to blow an account.

In my opinion, having such a large amount of acumulated draw down is an excesive "transparent" risk. The thing with this type of experts is that the true maximum draw down is "hidden" as it is never actually realized. Nonetheless, the experts are at some point or another losing very large chunks of capital. For some of the Chameleon strategies shown in live testing this can be as huge as 10 or 15 times the amount of already realized profits. Another interesting factor is that backtests are conveniently cut to one year. I have never considered this a good sign as it often point to previous years being unprofitable with the same settings.

I would not consider this ea worth buying as there are several lower priced expert advisor which offer more trading evidence and less suceptibility for the accumulation of high open draw downs. If you would like to learn more about automated trading and other free and commercial expert advisors I have bought and reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Forex Expert Advisors Pipboxer v5 an unbiased review

This one will be a good one. Today I am focusing on the review of the pipboxer v5 system. The pipboxer system is a quiet old automated trading system that has actually been out there since late 2006 and that I traded before (older versions) with very bad results. This version claims to be different than previous versions and it claims to achieve profitable results in forex trading. Since a newsletter subscriber has recently requested a review of this trading system I felt inclined to write this post and give my opinion about the current state of the art of the pipboxer v5 system. I will compare their evidence with their claims and evaluate their logic in roder to give my opinion about the long term profitability of this expert advisor.

First of all, the pipboxer system seems to have done a certain effort to provide people with a good amount of live testing evidence. However, the way in which this evidence is displayed is quiet awkward and difficult to navitage through, something which makes it harder to get to where I wanted. Second, the evidence is not always given as statements but sometimes they are just some spreadsheets, something which I dont like, I always like trading statements to be available so that I can watch the evolution of the system trade by trade.

When it comes to the profitability of the expert, it becomes obvious that the expert suffers from some serious problems. Almost all profitability comes from the GBP/JPY pair (which is not what you would expect from a system trading 12 pairs) and also and most important, this expert is veyr likely NOT to be long term profitable because of its horrific risk to reward ratio which I calculated to be near 90:1, that is, a losing trade needs almost 90 profitable trades to come out to the other side. This is evidenced when you compare SL and TP values on the live statements they do give. Then another important fact,why are statements from 2009 trading missing ? Why are they only test for previous years ?

This becomes a little bit clearer when you start looking at peoples results online, you will see that most people have lost very good chunks of money in 2009 with this system. This system is of course not long term profitable, from a simple glance at the statements and the risk to reward ratio I could have inferred that. The creators do say on forexpeacearmy that they are looking at ways to correct these issues in 2009 but come on, it did not surprise me at all. This system was a bad one in 2006 and it continues to be a bad one in 2009. If their original system had fulfilled half the claims they had at the time they would now have 3 years of live testing. They actually dont have enough evidence for long term profitability and their impossibility for backtesting (due to the use of several pairs) and lack of live testing from 2009 (which is supicious) makes it very difficult to believe their claims.

Of course, if in 2012 they have 5 year long profitable statements I will reconsider this review. Meanwhile, I urge you to stay away from their system, they dont have enough evidence to prove their calims, and in my opinion, their system is just flawd by design. However, if you would like to learn more about automated trading systems and which free systems you can trade in a long term profitable fashion, preserving your capital and having realistic profit targets lease consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Forex Expert Advisors Turbo Robot an Unbiased Review

Today I found out a new robot which has been recently released into the forex automated trading arena. This trading system - called turbo-robot - promises to deliver consistent profits with unrivaled profitability, low draw downs, diversification and overall, just awesome results. Within this post I intend to review this trading system, specially the evidence provided by the author and whether or not this evidence is able to backup the authors claims of profitability. I will also look into this evidence and through my analysis tell you if I think the system has the potential to be long term profitable. After evaluating all these different aspects of the strategy I will then conclude my review by telling you whether or not this trading system is worth buying and testing. Is the turbo-robot up to the challenge of forex automated trading ? Lets see.

The turbo-robot website starts with the usual speech telling you how most robots suck but this robot is the best you will ever find. The author points out that the problem is that people should look for consistent profits and not systems that just make profits and then wipe accounts. Then when we turn to look at the evidence this system may have to prove that it is actually profitable we find nothing but the usual faulted tests.

This forex automated trading system offers backtesting results as the only proof of profitability. However not only does the author only offer these tests but the statements from the tests are not actually shown so things as simple as the actual time period of the tests, the average risk to rewards ratio, maximum draw down, etc, become absolutely useless. Then we are faced with something even worse which is the fact that the modeling quality of the tests is not 90% but n/a. This means that the simulations are not accurate since either 1 minute data was not used for modeling or a lot of mismatch errors occur within the test.

The author then shows us a part of the backtests which are supposed to be a part of the graphs shown. We do find that the system has a very favorable 1:5 risk to reward ratio which is absolutely great for any trading system. However since we do not have access to the actual backtesting statements it becomes absolutely impossible to determine whether or not this is the average risk to reward ratio or just the outcome of a few trades.

There is also an additional problem pointed out by the people at project4x which say that the backtesting results are NOT reproducible and that actual reproduction with 90% modeling quality generates nothing but loses. I think that this not surprising given the fact that the tests made available by the author of the turbo-robot website do show an n/a modeling quality pointing out that the results shown by them are the result of errors introduced within the data (or the lack of accurate data) and therefore their tests are nothing but meaningless and useless.

I believe that the people who setup this website and put up the tests are either very ignorant of how automated trading systems work and how to run simulations or they are doing an elaborate and conscious effort to deceive buyers. In either case the lack of any investor access verified live trading results and the lack of back testing statements does point out that the sellers are not being fully open but absolutely dishonest with the websites visitors. In the end, the overwhelming lack of any reliable evidence and the absolute lack of completness and accuracy of the evidence presented I consider this system NOT worth buying or testing. In the future, I would recommend the people at turbo-robot to consider their audience less retarded and do their homework regarding proper backtesting and the ABSOLUTELY necessary posting of FULL backtesting statements and investor access verified live trading results. If they are not willing to risk their own money on their own "wonderful" system, why should you ?

If you would like to learn more about my teachings in automated trading and how you too can design and trade your own long term profitable systems based on realistic profit and risk targets please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Developing an ADX Based Strategy My First Non trend Following System

If you have followed my blog for a while you may remember my post some time ago about the ADX indicator as a part of the "indicator series". If you have never read my blog before or you have never seen these posts, these articles attempt to describe the mathematical meaning of different indicators and how these indicators can be engaged in automated trading for the development of long term profitable systems. The main objective with these posts is the real understanding of the underlying math behing the indicators and what they truly mean. It is my firm belief that absolute understanding of any indicator is necessary if a person wants to use it successfuly in any trading system- indicators are not just lines drawn on a screen - they are calculations done over price which give us important information about price action. However, in order to understand this information we need to understand the truth about the calculations. On todays post I want to share with you my initial developments on the design of an automated trading strategy dealing with the ADX indicator and how it manages to achieve a good like hood of being long term profitable.

If you remember my post about the ADX I said that this indicator is usually not used properly as it does not "signal" the difference between ranging and trending market conditions and using it as a "filter" usually only leads to worse performance and a diminishemnt in the statistical significance of a system expressed as a reduction in the number of trades. However I talked about ways in which the ADX can be used successfuly to develop a trading system, particularly how it can be used to detect retracements and enter trades after a trend has partially reversed. However I then realized that there might be good potential to use the ADX to exploit consolidation periods in trading instruments, reason why I decided to try such an approach and see what I could get.

The strategy used is very simple, the system waits until the ADX reaches a level above 50 to "detect a trend" and then the expert advisor waits for a drop below the 20 level in order to enter a trade in the direction opposite to that of the trend. This means that the EA will actually assume that after the ADX reaches extreme levels and drops, a reverse movement in the form of a consolidation is bound to be happening. The EA is able to achieve high profits in periods where trends develop strongly and then consolidate. The fact that high ADX levels have to be reached for trend detection with a subsequent drop protects the EA from entering trades when strong trends are developing since a drop in the ADX is unlikely until a consolidation periods is reached. Note that this is not the usual way in which the ADX is used and the design of the strategy comes from an understanding about the mathematical meaning of the indicator.
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The implementation of this system- without any optimization of any variables- leads to the results shown below. Positions exits and lot size are adapted against volatility using the 14 period daily ATR and the ADX 10 period indicator on the one hour charts is used. Results are very good preliminary results for a trading system pointing out that there is great potential for long term profitability. The system is able to successfuly adapt to changes in market conditions and with this it is able to remain profitable. It is very worth noting that without the ATR adapted SL, TP and lot size this system is NOT profitable, again it is very important to say that entries merely determine the potential of a trading system while the exits used determine a systems profitability. (Backtest was done from Jan 01 2000 to Jan 01 2010, TP and SL values are 50% of the daily 14 period ATR so interpolation errors should be almost non existant)
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There is still a lot of room for improvements, mainly through the addition of internal closing mechanisms based on logic around the same ADX indicator something which should take this expert advisor to the level of Watukushay FE and other trading systems developed within the Watukushay project. I have to point out that this EA is an achievement for me in the sense that it is the first time I am able to develop a likely long term profitable system exploiting a market inefficiency different from that of pure trend following. Will this inefficiency be exploitable to a significant extent ? Will such a trading approach have the same potential of trend following ?

I will try to answer these questions during the following few months as I continue to develop this system and analyze its trading results. If you would like to learn more about the Watukushay series of expert advisors and how you too can develop your own long term profitable systems based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Forex Expert Advisors Forex Ultimatum an Unbiased Review

A few days ago, a new expert advisor called forex ultimatum was released into the forex automated trading system market. At the request of two of my customers I have decided to review this system. Please remember that my review focuses on the evaluation of the expert advisors claims against the evidence provided by the author. Through this evidence I also always try to estimate the expert advisors potential for long term profitability and the likeness that the system will or will not work in the future. At the end of the review I will say whether I consider the system worth buying and testing.

At first glance, the forex ultimatum website looks just like every other automated trading system website out there. It is plagued with hype about the potential benefits the system can bring without any reference whatsoever to the risks assumed by traders when using this system. There is never reference to the potential draw down associated with the strategy, an ever present measure of risk that should always be looked into by traders.

The first claims made by the website are nothing short of misleading. The website tells people that they can "generate a steady flow of cash into their accounts" without working "more than 5 minutes a week". Of course, as you would expect from most commercial EA sellers, the forex ultimatum website has absolutely no evidence to backup their claims. The creator of the EA also says that the expert is able to turn 5000 into 50,000 USD in less than a year, a claim which is totally unfounded and for which no evidence exists.

The closest thing to evidence shown on the website is just a bunch of "performance" charts which by the looks of it seems to be backtesting data which has been replotted by another program, probably to avoid the association with back testing which people are fairly aware of right now is no guarantee of profits unless consistency is proved through extensive live testing. This is further reinforced by the fact that they never make any claims about these pictures being from "live trading". These people are very diceiving because by their phrasing it seems that this graphs are actually from "forward testing" something which could greatly confuse their visitors (which seems to be their target anyway).

As you may have suspected, this forex ultimatum system is totally NOT worth buying because the seller does NOT supply any sort of convincing evidence to support his claims. Extensive backtesting and live testing are needed to even have the intention to publish such bold and unrealistic claims. More over, the seller clearly states that all sales are final, reason why people who may have differences with their results cannot even get their money back in the short term. I do think that these people need to think a little bit more seriously about the business and generate at least a year of live testing with a ten year backtest in order for any of their claims to be believable.

If you would like to know more about automated trading systems that can generate capital in the long term as well as program and design your own long term profitable systems please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Why Nobody Reviews Free Expert Advisors

When automated trading began its furor a few years ago, everybody was ecstatic at the possibility of automating their trading strategies and becoming successful in automated trading. However, we began to learn that turning profitable manual strategies into robots is not as easy as it sounds and that introducing a computational variable into the matter revealed problems we didnt use to have.

Now the matter became a little bit more complicated when people realized that automated trading strategies could be packaged and sold as "get rich" schemes for people who wanted to be profitable traders but lacked the skills to do so manually. Anyway, some people out there decided to give out their trading strategies for free and this is when the world of free expert advisors began.

Since the beginning it was completely clear that most free expert advisors lacked quality and even coherence. One after one, programmers started to create martingale beasts, hedge experts, grid systems, etc. It was clear that free trading systems, for the most part, where just the dreams of programmer/traders who most of the time were not profitable manual traders, manifested in a piece of code. Now dont think that commercial expert advisors where any better ! Nobody had had significant experience with automated trading in mt4 and many commercial expert advisor sellers were just free expert advisor makers who decided their ideas could be marketed. Then there were also people who robbed free expert advisor ideas that seemed good and made websites and auctions on ebay to sell them.

Things became even worse when someone had the great idea of introducing referrals into forex products. If you search the web, 99% of all expert advisor reviewer web pages are tied to the expert advisors they review by commissions. I have always believed that commissions automatically bias the reviewer towards making the product more interesting in order to sell it (I know it would bias me). This of course, is not a good thing for free expert advisors since there is no insentive whatsoever to review experts who offer no referal bonuses.

So we have several factors that have affected the way in which free expert advisors are perceived. First, there is no incentive for reviewers who want commisions (which are sadly most) and second, good free expert advisors are terribly hard to locate. It demands experience and a certain know how of what can and cannot be profitable in automated trading in order to filter the 99.9% of experts that simply will never work and work with those that have an opportunity to do so.

Since I have no referal interests whatsoever, I decided to continuously search, test and review free expert advisors, with some of them having more than a year of forward testing (Gods Gift) I am now almost sure that quality, profitable free expert advisors can be found out there and that they can as well match the quality of commercial experts. Now if you are interested in looking at the testing results of this experts or learning more about the free and commercial experts I have reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Trading Strategy Dogs of the Dow

Dogs of the Dow Strategy

How this works is very simple. All you need to do is to rank the FTSE Bursa Malaysia top 30 largest companies according to (1) PE ratio from lowest to highest; and (2) Dividend yield from the highest to lowest. The aim is to select those companies with the highest dividend yield and lowest PE ratio. Heres the top 5 stocks for the lowest PE and the highest DY as at 28th August 2009.

Top 5 PE Stocks
Hong Leong Bank 9.60
RHB Capital 9.65
Berjaya Sports Toto 13.00
YTL Corp 13.14
AMMB Holdings 13.26

Top 5 Dividend Yield Stocks
Digi.com 8.51
Telekom Malaysia 8.33
Malayan Banking 7.99
Berjaya Sports Toto 6.76
UMW Holdings 6.00

Hence the best stock from this strategy is BToto as it appears twice on the lists. (For more info on BToto please visit this website: http://www.pg8.net/viewtopic.php?f=4&t=119&start=10 )

Different people will need to establish their own trading strategy according to their lifestyles, investment knowledge, debt obligation, and risk preferences. The above strategy is suitable for busy individuals who do not have much time to monitor their portfolio and yet they want a low risk portfolio with longer term perspective.

The Economy Stimulus Story

In the midst of the European sovereign debt crisis, I would like to share with you a story that I came across a few years ago about the economy and how it is stimulated through spending. Heres the story:

The story started with a rich tourist came to a town in which everyone living there was in debt. The tourist put down a 100 Euro note for the hotel owner as a deposit while he went round to check the conditions of the rooms. With the 100 note on hand, the hotel owner quickly ran to pay off his debt – his supplier, the butcher. The butcher received the money and he quickly settled his debt with the pig grower. Next, the pig grower used the receipt to pay off his debt with his supplier of feed and fuel. And this supplier ran to pay off his debt to his creditor - the prostitute, and finally, the prostitute went to the hotel owner and settled her debt with the hotel owner with the same 100 Euro note.

The hotel owner then put the 100 Euro note back on the counter as it was the deposit of the tourist. The tourist decided not to stay and took his money back.

After all these drama, amazingly, the whole town is now without debt and everyone looks to the future with a lot of optimism. In the final sentence of the story, it says: “This is how the United States Government is doing business today.”

“Does the story make any sense?” I’m sure most of you are pondering hard about this story. In fact, I’m truly amazed that this little story has embraced a number of important economic concepts that I’m going to explain next.

First, the story has brought out one major economic theory - the Keynesian mulitiplier theory. The initial 100 Euro note has changed a number of hands, from the hotel owner, to the butcher, to the pig grower … and back to the hotel owner. Starting with 100 Euros, the economy has created 600 euros worth of market transactions. In order for the Keynesian multiplier theory to function, the initial 100 Euro has to be an autonomous (independent) injection in the form of investment, government spending or exports to the economy. In this case, the rich tourist’s 100 Euro note is treated as exports because the rich man is a foreign tourist, the money is considered as an outside independent source of injection to the economy. (For simplicity, I have left out the multiplier formula here)

Next, we come to the most important concept of the multiplier theory that says that the injection of money creates round after round of spending. In other words, the cycle of ‘one man’s spending creating another man’s income’ repeats itself round after round just like the story.

But the story says each of them “pay back” their individual debt, not “spending” as stated in the multiplier theory. I would argue that the spending has been performed before each one received the 100 Euro note, which means they spend first and pay later. Just like most of us are doing now.

So, did the people in the town really get rid of their debt? The answer is “Yes!”

Because during each round of spending, income is created at the receiver’s end. This means that no matter what is the source of income (be it borrowed money or earned money), the economy is stimulated in the form of more economic activities created by the many rounds of spending. As long as the rate money earned is faster than the rate of debt increased, by theory, we can settle the debt. But in real world, most government in the world is building their debt at a much faster rate than the collection of taxes because in a democratic society when the government is elected based on peoples votes, the ruling party tends to run into budget deficits.

Hence, this is how most of the governments in the world are doing business today!

Chart Patterns Part 2

In this video, I continue on a few more chart patterns, they are: Double top and double bottom, rectangle and triangles chart patterns.

Forex Expert Advisors Forex Dynasty an Unbiased Review

Today I will be revieweing another new expert advisor which came out during last week. This new trading system, called Forex Dynasty, promises to deliver very large profits in a very small amount of time. As with all my other reviews I will first go through the experts evidence and I will compare it to the claims made by the author to see if the forex dynasty system has enough proof to validate the claims provided. After analyzing this evidence and its reliability I will then analyze the trading systems tactics to evaluate its like hood of long term profitability and finally, after all this analysis, I will be able to give you my opinion about whether or not the forex dynasty trading system is or is not worth buying and testing.

The forex dynasty website greets us with what seems to be a misleading and meaningless claim of being able to make more than 100K in under 20 minutes. First of all - as I have said several times - saying that you can make X profit without mentioning the risks involved or the capital needed is absolutely pointless. Sure, a system can make 100K with a 1 million dollar investment in under 20 minutes with a moderate (yet high) account risk, I can assure you that. However saying that a 10,000 USD account is able to make more than 100K in 20 minutes is simply VERY misleading, sure, it could be possible under very volatile conditions and an EXTREME risk but achieving such a feat would be a one-time success based on luck rather than an achievement based on sound mechanical trading. So, the claim made simply doesnt say anything, it doesnt mention risk or initial capital, it is simply worthless.

Moving on we see that the evidence presented to backup the systems profitability is limited to a single backtesting statement which gives us a LOT of evidence about this trading systems tactics. First of all, we can see that the system trades the EUR/CHF on the 30 minutes chart. I have to say that the historical data for the EUR/CHF is not very reliable (diverging significantly from sources of reliable tick data like Dukascopy or Oanda) and I am inclined to think that data before the year 2006 is actually pretty much useless so there is a very limited usability for a 10 year backtest. Moreover, backtesting on the EUR/CHF seems to generate extremely profitable results with an astounding frequency, without these results ever being reproducible in live trading. I have to say that the profits made on the backtests are not realistic and a simple consequence of backtesting faults inherent to the use of the 30 minute charts, the EUR/CHF and probably the experts trading technique.

Looking upon the trading tactic used by the EA we realize that the forex dynasty system has an unfavorable 4:1 risk to reward ratio, meaning that you need to win 4 times to make up for a single loss. This seems to be quite common for EUR/CHF systems and in general for systems which generate an equity curve similar to this one in backtesting. As always, you simply CANNOT believe the backtesting results presented by commercial EA sellers because there are simply too many things which can be done to aritificailly generate very profitable tests, evenmore, some of these problems may be present without knowledge of the EA creator, programmer, since sometimes these programmers are not very knowledgeable regarding metatrader backtester limiations and they are merely eager to get a profitable equity curve.

One good thing I can say about the forex dynasty trading system is that there seems to be an honest effort to present demo trading results verified through myfxbook. Although FAR from ideal (since a live account is always mandatory), the fact that the currently losing results are not being removed points that the creator is willing to be honest - if only to a small extent - with his or her audience. The forward test is currently too short but my best guess is that the large difference between demo/back testing results will be shown clearly within the next few months.

Now what I absolutely HATE about this website is that the creator of the system is lying the whole time. The story is - in itself - the way in which the author hangs him or herself and shows his or her dishonesty. The creator points out that with this very system he or she was able to gather a 17K profit from the market. Why in the world does this person NOT show live tests with these results ? Moreover, why didnt this person take 100 USD from this 17K and fund a live account to test the EA ? Obviously this story about the origins and initial trading of forex dynasty is simply an unecessary lie to increase the hype around the system. If it was true, then why not show all the evidence which would naturally arise from the story ?

Overall, I can say that the forex dynasty trading system currently lacks evidence for long term profitability and its claims are therefore not proven. The backtest shown is not validated by live trading evidence and the only forward testing evidence presented is a demo and not a live test. For all this reasons I consider the forex dynasty trading system NOT worth buying and testing since there is simply NO reliable proof of profitability. If the author provides a 2-3 month live test coupled with a back test of this same period to gauge back/live testing consistency, Ill be glad to redo this review.

If you would like to learn more about what I have learned in automated trading and how you too -through effort and knowledge- can arrive at long term profitable trading using automated trading systems please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Reversing Strategies It Almost Never Works !

It is curious how many times during the past few years I have read posts from people in forums or people in other websites asking for a "strongly losing" trading system. It seems that many new traders have thought that given the fact that building a long term profitable system is so difficult it might as well be easier to find a system which is "long term unprofitable" and reverse the logic to get the valuable profitable results. Within this post I will tell you the reasons why this logic is inherently faulted and why reversing a trading systems logic almost never leads to a profitable system. You will see why a logic reversal does NOT imply that all trades are triggered in the opposite direction and why it leads, 99% of the time, to another unprofitable trading system.

To understand what happens when you reverse a system, it is vital to understand trading to a good extent. When you have a logic that buys at A with TP at B and SL at C and the SL is hit, then many people tend to think that reversing the logic to sell at A, with TP at C and SL at B will get them a profitable trade. This assumption is wrong. Why ? The problem is that when you buy at A you are buying at an asking price so selling at A wont happen at the same time because a short trade must be entered on a Bid price which will reach A at a different time (or not at all). The same applies for the SL and the TP. The fact that B was reached as a Bid price does not imply that it will be reached as an Ask price. So effectively reversing the logic can cause the system NOT to reach the same SL and TP values, causing the effect of a reversal to be an overall change in logic which may not correspond to a positive change in profitability.

However the Ask/Bid differences only amount to be a part of the problem. The second part, which is the most overlooked by many traders when they are presented with the "long term unprofitable system" (a system with a 10 year down slopping equity curve) is that the losing character of many of these systems which have "smooth losing curves" is caused by the spread. For example, a system may be losing globally because its TP and SL are too close to the market spread and therefore the system loses money independently of the trading logic (something which many coders which attempt to code scalping systems fail to understand), reversing the logic does not cause any improvements in profitability (because the spread is the same on both entries).

Even if most reversals do not have any positive effect, it is true that the reversal of a long term profitable trading logic will generate a "long term unprofitable" system, however, such systems must be geared so that the above mentioned problems are not important. What people tend not to realize is that coding a "long term unprofitable" system which is NOT so because of the spread and which upon a reversal will not be significantly affected in an unprofitable manner by Bid/Ask differences is JUST as hard as coding a long term profitable system in the first place. Many times people believe they have such a system but they fail to realize that backtesting of a system to see if its equity curve is "smoothly losing" must be done in six month increments (rather than in a straight ten year test) due to the fact that the lowering of equity would cause profitable periods later on in testing to appear insignificant, when the logic reverses, these periods show to be extremely losing. The lot sizing characteristics of a trading system which are made to lower loses and increase profits may indeed make the finding of such a reversable system MUCH more difficult.

I strongly believe that the failure most programmers and traders face when trying to code long term profitable automated systems is mainly because they are NOT approaching the problem in the right way. They almost always fail to understand the indicators they are using, they fail to add adaptability to their systems, adequate money management, etc. The solution is not to attempt desperate things, such as the finding of systems with 10 year smooth losing equity curves but to build an understanding of automated trading and what has to be done to generate long term profitable systems using sound strategies, this of course, comes only as a consequence of gaining an understanding about trading which requires a lot of effort and study.

If you would like to learn more about my experience with automated trading systems and how you too can design and program your own long term profitable trading systems with sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Strategy Diversification Higher Profits Higher Risks

If you look into the Asirikuy website, one of the main objectives around my development of automated trading systems is to develop experts we can use to makeup a successful porftolio of long term profitable trading systems. Most traders - new and experienced - believe intuitively that adding several strategies to a portfolio will diminish risk in the sense that the possibility to attain significant draw down levels will be reduced. However, through my experience and analysis of portfolio diversification I have found that - although portfolio trading is great - great care must be taken in both the makeup of the systems and the evaluation of the actual risk levels used to avoid catastrophic loses due to a "massive" portfolio failure. During this post I want to talk a little bit about the things you must take into account when designing a portfolio and how risk must be carefully studied to come up with a reasonable "worst case" scenario.

Why is portfolio trading great ? Well, we all know that having all our eggs in one basket is not so good. When we use a single trading strategy we are exposed to several problems which can be avoided when many different strategies are used. For example, we are not subject to the "hard hand" of the market as when one of our strategies is unable to profit from its set market inefficiencies another one will most likely be able to. So in the end what we get is a diminishment in our market exposure without a reduction in our profitability since - in the end- we will reach the same profit levels on all systems as if we had if we had run them by themselves. There is also a very positive psychological effect of running portfolios in the sense that "someone" will be winning and you will have something good to look at almost all the time. A shield you wont have if you have to endure the draw downs attained by a single trading system.
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However, new traders generally take portfolio design too lightly. It is simply not a matter of putting all the systems you can within an account, put a very high risk level and hope for the best. No, it is not about that and that strategy usually leads to account wipeouts and other such problems. You need to make up your portfolio with a very clear plan and knowledge of what you will do when certain scenarios present themselves.

First of all, each separate system must have its OWN risk projections and its own worst case scenario (the point where the system has simply become to risky to continue trading). You need to know into how much draw down each system will go because each draw down will contribute to the overall loses of the account. Second - and most important - you need to calculate your portfolio risk accurately. To do this you need to calculate the sum of all the projected draw downs and have this as your worst-case portfolio scenario.

In the end each system will be able to reach twice its historically worst perfoming point (the worst case individual scenario) and the portfolios worst scenario will be the addition of all the systems historical maximum risk levels. In the end, systems have a flexibility to reach higher than expected draw downs (which are likely going to happen in the future) and the portfolio will be able to reach larger than expected risk additions since its "worst point" is an addition of draw down. This in turn means that portfolios have a lower risk thresehold than the systems, mainly because they need to reduce risk through diversification -if this doesnt happen - the portfolio is simply not working.

In the end doing this analysis will ensure that you have CLEAR targets for your risk and clear "stops" in your accounts loses (since you know when to stop individual systems or the whole portfolio). One of the most important things in trading is to have a plan and trading a portfolio with a previous risk analysis is VITAL for survival. Of course, making sure that each one of the systems used is long term profitable is also of extreme importance and something which will make the success of a trading portfolio much more likely. (for those of you who are Asirikuy members a video will be out this Sunday better explaining a lot about portfolio makeup and analysis).

If you would like to learn more about automated trading systems and how you too can build trading systems to achieve long term profitability please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

Are People Rational

Economists argue that people are rational. Rational people make decisions or judgement using reasoned thinking, based on facts, applying rules; and those decisions are consistent over time. How far is this true? Do you spend time in analysing mundane simple task such as what to eat, where to shop or what to wear? Very often we make these simple decisions based on intuition or “gut feeling”. But when it comes to investment or children’s education, we will spend more time to gather information, do some analysis and then make a decision. Hence, decision making is a complex process, involving both analysis and intuition: analysis involves computation and more “rational” thought, but is slower; intuition, by contrast, is much faster, less accurate, and relying on intuitions or “gut feeling”.

A study conducted in United Kingdom shows that people with autism related disorders are less likely to make irrational decisions, and are less influenced by gut instincts. This is because of the tiny brain tissue called “amygdala” which is involved in processing human emotions. And according to research, people with autism-related disorders have a different density of amygdale in their brains than others.

Further research done by a Nobel Prize winner, Professor Kahneman, the founder of behavioural finance found that this “amygdale” trigger the fear factor in our brain causing us to feel “risk”, which can gets in the way of successful investing.

What is amygdale?
Deep in the center of your brain, level with the top of your two ears, lie two small, almond-shaped knobs of tissue called the amygdala (ah-mig-dah-lah). When you confront a potential risk, you will trigger this hot button of the brain that acts as an alarm system – shooting signals up to the reflective brain like warning flares. Because the amygdale is so attuned to big changes, a sudden crash of the stock market tends to be more upsetting than longer, slower decline, even if it is greater in total.

On October 19th, 1987, the U.S. stock market plunged 23%, so sparking the amygdala and disrupting the behaviour of millions of people for years. Anyone who has ever been a teenager knows that peer pressure can make you do things as part of a group that you might never do on your own. When the fear factor strikes, people tend to follow the herd; not because you want to but because it hurts not to. Neuroscientist Gregory Berns says: “Social isolation activates some of the same areas in the brain that are triggered by physical pain”. Hence, being part of a large group of investors can make you feel safer and less painful.

Neuroscientists discovered that amygdala is responsible for our fear, emotional responses, and social behaviour. As a result, during the event of a stock market crash, our bio-instinct will tell us to be part of the larger community by following the crowd’s action.

In Professor Kahneman’s research, he got together a group of people whose brains had been damaged due to tumour removal or accident, and let them play a little game with the other group of normal people. Starting with $20, each one flipped a coin and called it: heads or tails. If the participant called it correctly, he won $2.50. If he called it incorrectly, he would lose only $1. If he was feeling unlucky, he could pass.

Given the odds of winning were tilted to participants favour, any player who wanted to maximise his or her returns would never pass. But the result showed that the “normal” group passed more than the “damaged head” group. Does that mean the best investors are mental defective? No, the conclusion was that emotions get in the way of successful investing. Emotions cause participants to react to “illogical” ways by refusing to bet, even when the odds were clearly in their favour. The un-emotional players, by contrast, did the “rational” thing more often and won more money.

However, another study published recently claims the opposite view. It says “adding emotions to decision-making process can enhance creativity, engagement and decision efficiency”. This is contrary to the popular belief that level headed people are more rational and make better decisions.

No matter whether we are cool headed or hot headed, rationality depends on how we see things and in whose perspective. If we apply our own reasoning to the event, we can come up with different results. I believe most people are rational in their own minds, even if we may think otherwise. Some investors would rather feel ‘safe’ than ‘risky’. Others enjoy playing for short term gains even though it costs them more time and money. Some do not even realise they have made the wrong decision simply because they have made the wrong assumptions or are given the wrong information.

By Pauline Yong
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Effective Advantages of Forex Trading Training

Forex traders who wanted to deal seriously on the forex market needs forex trading training to ensure that they will be able to learn the ropes. It is very important because forex markets are highly competitive, fragile and volatile. Forex trading business is a 24-hour business which involves tremendous risks. Proper education on forex trading enables the traders in minimizing some of these risks. Remember that there is a very large trade volume, so several decisions should be made just within seconds. Novice traders should really take forex trading training to increase their chances of surviving in the forex market.

Forex trading training involves learning different forex trading terminologies, processes, and concepts. These are essentials that would help a beginner to immensely gain confidence in trading forex. Take note, the condition of forex markets are not constant. It could change in a wink of an eye. Therefore undergoing forex trading training can prepare you on how to handle such fluctuations. It also reduces the risks of losses.

Forex trading training helps in molding the trader's skills and sharpening it especially on forex market internal works, it teaches the beginners to make forex charts. In this manner, they are also oriented on making proper analysis and enhance their decision making in a more accurate way in times of selling or buying forex. These are the best characteristics that beginners should acquire because the forex trader's future depends on their ability to take charge of forex market order flows.

The things that are learned in the forex trading training also involve the basics about order types, margins, bids, leveraging, and rollovers. These are important common terminologies that should be learned by the traders before getting started. In addition to this, beginners also learn about trading psychology on how to deal with discipline, patience, stress, risk management, and commitment. It teaches the traders to use their head when doing the trade instead of their heart.

Forex trading courses can be acquired through live seminars, books, subscription services, classrooms, or online trainings. However, these also have advantages and disadvantages. Make sure to weigh everything before finally deciding to get the type of forex trading training that you want. It should always answer your needs and survival of the risks involved in forex trading.

It is not ideal to enter into forex trading without the proper knowledge. So, forex trading training is one of the most important aspects to be done. This will significantly increase your chances to achieve greater success.

If you are reading forex reviews, then you will learn that those traders who have gained success in forex trading business are those who have undergone forex trading training. It will be a very big mistake if you just jump-in to forex trading without proper orientation. You will not survive such a high-risk environment. Always keep in mind that forex market decisions are done in accordance to real time which are usually within a matter of seconds. So, forex trading training can really give benefits to beginners. They are equipped with better training on handling demands and stress compared to those people who solely rely on their experience and instincts.

Forex trading training also tackles about market mechanics, forex trading software tools, reading forex charts, closing a trade, and knowing the best bidding time. Beginners should first focus on charting because the most important factors in forex trading are being studied.

Forex trading training helps especially the beginners in tracking the reasons why market shifts happens. If traders understands and read forex charts properly, then they would be able to identify market problems. Since charting is considered the basic of forex trading.

Forex trading training also teaches forex market history. It explains the common mistakes that were done before that should be avoided. There are developed techniques on how to solve these problems which are also discussed. Take note, these important features should become a part of the online class or real life forex trading training.

Forex trading training has proven to make a big difference. However, it will depend on the traders if they are going to choose the benefits of it. But the things that were immensely learned from it will be useful in turning your investments into profits. It also helps you in creating a definite and systematic plan to win forex trading.