Sideways Markets and MACD, RSI

MACD loses money in a sideways market and if we can do something to identify that the market is so, then we can get the MACD to ignore trade signals until it appears to be trending again. The use of Bollinger Bands can help identify sideways markets it seems. –       If the price has moved […]

Cautions

–       Need to be careful when trading near market open and close (mon/fri) because there is usually less liquidity and such the spreads can be much wider –       Need to be careful when trading near significant news events as the market is volatile and spreads can be much wider. –       Need to be careful of […]

Backtesting – it’s easy!

Ok so today I was playing with the backtesting if the Omar_MACD strategy more and I noticed the difference between the two Moving Averages seem to be different when I backtested multiple times. It turns out that this is because the start date was different. The start date has to be more than n-periods away […]

First day: Best systems and lessons learned.

After looking into FXPro, their system was immature and didn’t offer a lot of functionality. Therefore, I’ve decided to stick with FXCM. So since this is the first journal post, here’s the current situation. FXCM’s Trading Station is an excellent tool for day trading. They have another tool called MarketScope 2.0 which offers charting and […]