Forex Back Testing

Back testing a Forex Trading System
One you have identified one or more potential FX trading systems that you are interested in using, or even if you are you are working on developing a trading system on your own, it is critical that you take the time and effort necessary to perform thorough backtesting.
Backtesting is the [...]

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Building a Complete Forex Trading System

So far, we have discussed a few simple indicators, but there is more to a complete trading system than an entry indicator. You need to know when to exit, either at a profit or a loss, and how to size your position.
To build a Forex system, we recommend that you purchase trading software such as [...]

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Price Movements in Trading Systems

Some models are based around an assumption of price movements being normally distributed, or Gaussian. For example, if a price has moved from a base by 3 standard distributions, based on statistical princples and assuming that price movements are normally distributed, it is unlikely to move further but revert to the mean.
However, if you actually [...]

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Building FX Trading System

There is a lot of information available about how to use trading systems to make intelligent forex trades, and there’s even more information available about buying someone else’s trading system. But what about if you want to build your own trading system? There’s not a lot of information about how to do that.
This article will [...]

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Selecting a Currency Trading Platform

With so many forex brokers offering their own fx trading platform, why should you even consider using your own trading software?
Good question.
The Forex can be a volatile market where prices swing wildly on a moment’s notice or with no notice at all. Reaction times need to be swift in order to make profits or avoid [...]

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Developing Your Own Forex Trading System

In forex, undisciplined, hit-or-miss and seat-of-your-pants trading will only get you so far. Eventually the law of averages takes over and you start finding yourself upside down too many times. What you need is a trading system. The difference between winning and losing traders is that winners have a tested system that defines entry and [...]

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Forex Price Data

More than any other type of trading activity, your success in forex trading depends upon receiving accurate and timely price data. That’s because the forex market moves so rapidly and small changes can mean big gains or losses.
There are any number of brokerage houses that provide real-time forex quotations. You can also use our free [...]

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How Market News Moves Forex

Forex is a news-driven market. Local, regional or world events can cause sudden spikes and falls to occur in seconds. Depending upon the significance of the news, and how closely it is related to a particular currency, an amazing amount of trading can occur in a very brief period of time.
Considering the potential for a [...]

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Managing Forex Trading Risk

With an average daily volume of $1.4 trillion, the forex market is larger than all the futures markets combined and managing forex trading risks is imperitive to success.
Once the closely held secret of banks and corporations, forex trading is now available to the public along with the same risks and rewards. More than any other [...]

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Learning to Trade Forex

There are two ways to learn how to trade currencies: The cheap way and the expensive way. If you’re new to forex, let me recommend that you seriously consider the former and let the latter go until you’ve got at least the basics figured out.
Obviously, the expensive way to learn how to trade the forex [...]

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Forex Trading Tips and Rules

This lesson sets out some simple currency trading tips and rules .
We have developed these rules from our own experience, and that of successful currency traders. These rules are in summary form, and are elaborated on in other later lessons.
Don’t Overtrade
Overtrading is when you trade more positions than are justified by the amount of margin [...]

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Choosing a Forex Broker

Forex is a fast moving, highly liquid and very volatile market where split-second timing can make all of the difference between profit and loss. Don’t wait until you bail from a position that’s moving against you to test the speed and honesty of your currency broker.
The Best Forex Broker
It’s not really possible which is the [...]

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Avoiding Forex Trading Scams

There’s no end to the trading scams that plague foreign exchange (forex) traders who are too willing to believe the unbelievable. Nearly all of them could be avoided by even the most inexperienced FX traders if they kept this simple rule in mind:
If it sounds too good to be true, it probably IS too good [...]

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Forex Trading Basics

This lesson explains how forex markets behave, and why prices fluctuate. You need to understand this basic information in order to develop your own trading system and to profitably trade in this market.
What is currency trading?
Forex traders make money by selling a currency position for more than they have bought it for. This is similar [...]

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Forex Market Participants

To understand the forex market, you need to understand the following market participants and their motivations:

Banks
Reserve banks
Hedge funds
Individual traders
Brokers

Banks
Banks comprise a large portion of the total turnover. They use the foreign exchange market to buy and sell currencies that are needed for foreign exchange for their customers, to hedge or protect against market movements on [...]

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Forex Market Overview

This first part of this lesson gives introduction to the forex market, and the mechanics of trading. The next part of this lesson explains about the different types of market participants and their motivations. You need to know this to understand some of the factors that influence the market.
Introduction to Forex Trading
The foreign exchange (or [...]

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Why Trade Forex?

Forex Trading Advantages
One of the benefits of forex trading is that the small investor has opportunities that may not be available in other markets, or other forms of investment.
High Yield Forex Trading
FX trading is one of the few businesses where a trader can realise a large fortune starting with a small initial investment. This is [...]

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