Scaling in, scaling down, averaging down…..Losers average losers?

It is said that the market spends most of the time reverting. If this is true, then why is there so much focus on trend strategies? By focusing on Trend strategies we miss out on most of the opportunities the market presents us.Because of this, I recently have come to decision that reversion strategies are the way to […]

Ticks

A possible issue with FXCM and Tick Data

A reader contact me after my post last week and told me two interesting pieces of information. One was that the blog comments weren’t working (so that’s why you were all so quiet! Thanks for the heads up), and the other was that they believed that FXCM deliberately throttles tick data in Trading Station when compared to MT4. The […]

Spreads

FXCM Spread Changes re-visited!

Hi everyone, You should all be aware of FXCM’s recent spread changes. If not, please read this post. Today, I was running some manual unit tests against the SuperTrend strategy on some old test data. The tests failed, but in a good way – they reported the strategy had made more money than before. Specifically, this […]

Real Volume Indicator

Real Volume Indicator

If you have not seen it yet, FXCM have produced a Real Volume Indicator. This is a fantastic move for traders as this information has been critically missing. If you don’t know about it, you can read more on the DailyFX page here: http://www.dailyfx.com/forex_forum/tradera-s-tool-box/632673-real-volume-transaction-indicators-only-available-fxcm.html and you can also watch the Webinar on YouTube here: https://www.youtube.com/watch?v=e1K8mfnOwJg I have been playing with […]

Multiple Instruments Featured

Trading multiple strategies/instruments and max draw-downs

Hi all, One thing I’m greatly interested in at the moment is branching out my fleet of strategies. Ideally I would like to have multiple uncorrelated strategies trading at the same time such that when one is in draw-down, the other is making money. Not only does this apply to multiple different strategies trading simultaneously, but […]

Scaling, Entry Price, Net Price, and Martingale

To win at forex, it ultimately comes down to your net position and final close price. So, every time we enter into an existing position, we modify our net position in hope that our final position will be in profit…. but does it really work? For the longest time, I believed that scaling in or out […]

Spreads

Importance of checking the spread

I cannot stress enough how important it is to check what the spread is before entering positions – especially for scalping or low pip target strategies. This took me a while to learn, but it is now mandatory in all my strategies and I never forget to include it, even in prototyping because it can […]

Arin Grid on MQL5

Last week, a reader known as Matt sent me a comment pointing me to a Grid on MQL5 that might be of interest. I thought it would be fun if we did this analysis together so I’m going to bump up this post. So let’s see, the Arin grid can be found here: http://www.mql5.com/en/signals/35388 Its equity profile looks very […]

Never buy and sell simultaneously

While researching other Grids, I noticed from their trade history they worked differently to mine. Actually, I really had a lot of trouble finding Grids which traded in both directions all the time, like my proposed strategy. I did find one here http://www.myfxbook.com/strategies/grid-stoch/14597 and if you look at the trade history you can quite clearly […]

Probabilities and Black Swans

Grid Trading’s most appealing aspect has to be that you don’t need to know which direction the market will head, you can always make money. To be honest, anyone that tells you they know what the market will do is fooling themselves, and you. What is the probability that the price will go up 1%? […]