Forex trading system optimization

Discussion in 'General Forex Discussion' started by alnazer, Feb 19, 2013.

  1. alnazer

    alnazer ECZ Newbie

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    Trading the Forex market has enjoyed an increasingly popular over the past few years. But how difficult it is to achieve success in the Forex trading arena? Or let me ask the question another way, how many traders who achieve results continuing profitability in the forex market? Unfortunately, very few, only 5% of traders are to achieve their goals. One of the main reasons behind this result is that forex traders are focusing on the wrong information in making trading decisions while completely forgetting the most important factor: the price behavior.

    Most Forex trading systems are created using the technical indicators (intersection Almovinj lines, cases peak buying and selling on the oscillators, etc.) But what are technical indicators? Technical indicators are just a series of data points plotted on the graph; these points are calculated based on mathematical formulas applied to the price of any given pair of currencies. In other words, is a price movement painted in a different way for us to see other aspects of the price.

    There is an important result can be drawn from this definition. The truth is that the readings obtained from these indicators depend on the price movement. Take, for example, the signal cut long term Almovinj line, when the price moves up enough to allow a short-term the Almovinj line cut its long-term counterpart to the top, giving a buying signal. Most traders believe that "intersection Almovinj lines pay the price to the highest" But what happened is the opposite, intersection signal line Almovinj appeared, because the price is the one who went to the top. What I want to say here is that the behavior of the price in the end is what determines how the index and this must be taken into account when making any decision related to trade.

    Trading decisions based on technical indicators without taking into account the price movement will give us less accurate results. For example, again if we saw bullish signal intersection Almovinj lines created with the approach of the price of one pair of important resistance lines. If the price starts suddenly bounce back from this important level there will not be interested to take this bullish signal in mind because the price movement in the meantime, tell us that the market will not go up. In these cases, and under such circumstances, the market will continue falling down, ignoring the intersection lines Almovinj.

    I hope not get me wrong, technical indicators is one of very important aspects of trade. It helps us to see certain circumstances it would be hard to see once viewed the price movement alone. But when it comes to the pressure trigger, the integration of the price movement in the forex system deliberated definitely will put the odds in our favor which will generate more profitable trading signals.

    So, how can create a perfect system for forex trading?

    First and foremost, we must ensure that the trading system that fits your personality; otherwise find it difficult to follow this regime. Each trader has a different goals and needs, and then there is no system that could be suitable for all traders. Will always need to do your research on the various trading techniques and technical indicators until you find a concept that works well with you. Make sure you understand the nature of the technical indicator that you will use.

    Secondly Combine the price movement in the trading system. Accordingly it will take in mind buying signals only in the event that the price movement Chi that the market will move to the top, and the same logic, the selling signals will become more serious if given the market a signal down trend.

    Third, and most important is that you will always need to follow forex trading system you have chosen carefully. Try it first on one demo accounts. Then turn to open a mini account to work on it and when you feel in the end comfortably in dealing with this system and results can be achieved for continuing profitability apply the system at the expense of your trades usual.
     
  2. Murphy12

    Murphy12 ECZ Newbie

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    Indicators are used for identifying, or even creating patterns from the chaos of the currency market. In all cases, they receive the raw market data as the basic input, and manipulate it in differing ways to create (as opposed to discover) actionable trading scenarios. The natural consequence of this description is that indicators are not tools of prediction. Instead, they are used to give order to the price data, so that it is possible to identify possible opportunities which can be exploited profitably by the trader. No indicator is right or wrong with respect to the signals that it emits, but each of them must be used with an appropriate money management strategy in order to deliver the desired results.
     
  3. Daisy13

    Daisy13 ECZ Newbie

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    I feel like indicators helped me a lot in determining trends and see where the market is going. It helps you if you want to stay in a trade or exit. I feel like its a life saver. Of course, we must always work with the most advance trading platform with high technology to help us use them correctly. Also, we want to avoid snipping from brokers. I think trying out a demo or a mini account will help us a lot.
     
  4. Bonyi2012

    Bonyi2012 ECZ Newbie

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    I agree with you. Indicators help you see and know where price is going. It helps you to know when to exit or stay in the market.
     
  5. Daisy13

    Daisy13 ECZ Newbie

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    Yes, we can use indicators to help signal us in our trade. I feel like these are the guiding light sometimes. Anything I find useful I will use but I think too many can confuse you. I think also analyzing the charts and many different time frame will also help you in becoming the best at trading. Since many time frame can give you a bigger picture in trading. I also prefer fundamentals analysis as it will point out how trends will be and so forth.
     
  6. Decublala

    Decublala ECZ Newbie

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    They are quite some good tutorial you have there. Developing a trading system is not something that happens so easily to any trader and no one has ever found it easy to build a good one for himself. Studying of the chart and indicators helps a new trader get into the trading environment and trading mood so as to have a fairer view of how the market would be.
     
  7. martyn

    martyn ECZ Newbie

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    Optimization of the trading system we use must be tested first in a demo account, because we also need to get the results of the test and if the results are good then we can apply in the real account. Usually we often perform optimization when using a real account and we had first to get a loss before getting the results of such testing.
     
  8. sidejob

    sidejob ECZ Newbie

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    The best thing that you can do to optimize your strategy is by apply your strategy and plus give some attention to your forex robot, in fact forex robot also can help you to optimize your profit, but you must have bigger capital because you trade with forex robot not only by yourselves only.
     
  9. dimemolight

    dimemolight ECZ Newbie

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    the optimization of the forex trading system is really needed .the optimium management of the forex trading system helps in the growth of the profit in the forex traders life and growth in the business .the optimization of the forex trading system helps in the betterment of the forex trading system in which is really great for the forex trader .this is really an cool technique for the profit maximization .
     
  10. Robert Dudash

    Robert Dudash ECZ Member

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    ForexChief provides every type of facility to do forex trading. They are offering traders from all over the world access to their trading opportunities and the trading platform it does go without saying that this broker has plenty of unique qualities. You will find that they offer a comprehensive customer support service which is available 7 days a week and 24 hours a day and that customer support service is available in over 20 different languages with live chat. If you are looking for a good broker to trade with a safe and secure environment then you should select them. They are offerings like various types of accounts, including leverage amounts, commissions and spreads, initial deposits, account funding, and withdrawal policies are amazing. Those can make any type of trader happy with their trade and profits. You can have their customer service representative to answer any question regarding your trading and their services.
     
  11. Neil Dome

    Neil Dome ECZ Member

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    A trader always wants that kind of helping hand who can support him in his long run of trading career. It is very much needed to have all kind of information about the market. As a trader I choose AtoZ Markets as my financial adviser. They always help me to take decisions and help me to make profit . I am impressed with their all time customer support.
     
  12. Mark Burgess

    Mark Burgess ECZ Member

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    There is nothing like hard and fast rules of Forex trading, that means its open and you can use this financial market to your choice. Personally, I don’t like to trade with a fixed indicator based trading strategy or system. On the other hand, live market analysis is my always favorite. That means I change my point of view (technical and fundamental) in order to market conditions. In this process, my financial adviser AtoZ Markets helps me every time. They give me all kinds of advice which help to make a profit.
     
  13. Cris gale

    Cris gale ECZ Member

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    There are various types of Forex brokers in Forex market but you need to choose your broker carefully and as per your trading style. Most of the traders fail to choose the right one but Forex4you as it is the best STP broker in the market I do select and I am using the scalping trading style. They provide me the lower spread from 0 pips, with instant market execution and smart bridge of technology and wide range of trading bonus and many others.
     
  14. Albert Brown

    Albert Brown ECZ Member

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    If you want to start trading in the forex market then you have to gain strong knowledge about forex first. The second and most important thing is choosing a reliable broker. A reliable broker always shows the best trading system to a trader. You should choose a reliable broker. Choosing a reliable broker is not an easy task though. My broker Eurotrader is very reliable. They are one of the best brokers I have ever worked.
     
  15. John Hussy

    John Hussy ECZ Member

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    In forex trading there are many important things we the traders have to make sure for ensuring a better trading life. as like good trading knowledge , good support from a trading broker , real money managing plan , risk management approach , knowing the approach how to use Stop Loss , controlling emotions and much more that are very supportive to lead a comfortable trading life with certainly.