Trading Systems

Forex Intraday Trading System ProEMAGain

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This Forex intraday system is based, mainly, on an interesting custom indicator for Metatrader 4 called ProEMAGain. This indicator consists of three exponential moving averages (EMA), and an RSI indicator. These indicators are common tools for the analysis of the Forex market, but here they are combined, originating a very profitable system. This combination gives the right and necessary information, in addition to being visually effective, to make decisions quickly and correctly.

It is recommended to trade with this trading strategy only in the major currency pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, and NZD/USD.

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Hedging in Forex – What is it and how is it applied?

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hedging in Forex

What is hedging?

Hedging involves making an investment in order to reduce the risk of an adverse movement in an asset in which has been made the main investment. A typical example of hedging in Forex would be, for example, buying EUR/USD as main investment and cover with a buy position in USD/CHF because these two pairs have a high negative correlation and buying USD/CHF reduce the risk of a buy position in EUR/USD as our main investment.

The Hedging is a practice that every trader should know as a possible method of protection and risk management. Throughout this article we will see what the hedging is, how it works and what hedging techniques are most commonly used by traders.

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The Sortino Ratio – good and bad volatility in your investments

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The Sortino Ratio

To correctly analyze the performance of investments in the stock market and other financial markets, it is always advisable to relate profitability with respect to risk. One of the most used ratios for this is the Sharpe ratio. But today we will see that it is possible to further refine this measure using the Sortino ratio. Both ratios serve to measure the expected return of an investment fund, calculated on the expected return of an asset without risk, however, they present a series of subtle differences that we are going to show next.

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6 Steps to Create your own Forex Trading System

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The main objective of this article is to guide you through the process of developing your own trading system to trade in Forex.

Although devising a system may not take too long, it can take a long time to prove its effectiveness. So, you must be patient, because in the long term a good Forex trading system can generate you a lot of money. Therefore, it is worth investing the necessary time to create, evaluate and implement a winning strategy, since a losing system can cause us a lot of losses in terms of time and money.

For this purpose, the following tips can help you in this process of development and evaluation.

Forex trading system

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Trading system with stochastic oscillator and CCI indicator

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In this article we will present a trading system with stochastic oscillator that can be used to trade in any market and in any time frame (although it is preferable that the system is not used in time frames less than 15 minutes), which is based on the MACD, CCI and stochastic oscillator technical indicators. It is a technical trading strategy that provides clear buy and sell signals, as well as exit and take profit signals.

Because it is a system based purely on technical analysis, we do not recommend the trader to operate with this system in the periods in which economic news or important market indicators are published, since the trading signals of technical systems like this tend to fail.

As always, it is recommended to test this methodology with a demo account before using it to trade with real money.

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Trading Systems Based on Moving Averages and MACD

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This is a trading strategy that can provide gains of between 20-30 pips per trade so it can be quite profitable. This trading system is very simple to use and its signals are easy to follow. The main features of this strategy are the following:

This is a trading system that combine the use of two well known technical indicators: moving averages and MACD. Also, the trader can use the Momentum indicator to confirm the trend direction. Basically, this system attempts to profit from changes in the market trend. The MACD and the Momentum are necessary because the moving averages crosses are not too reliable signals.

Risk/Reward Ratio in Trading

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We have already mentioned that all risk management in the Forex market requires a trading system that must be tested to achieve its function: obtain a good return on our foreign exchange trades. One of the practices that, in the long term, can become very convenient is to establish an adequate risk/reward ratio in our trades. Here we will explain the basics of this practice and how to put it into practice.

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Trading The Non-Farm Payroll Report (NFP)

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In this article we will show an interesting way to trade with the data of the Non-Farm Payrolls of the United States.

There was a time when trading with macro data was especially interesting. If the data deviated x% of what the market was waiting for, we could perform a trade expecting the price to have an interesting continuity. In fact, not only can you manually perform the trade, but there are interesting software that could execute the operation in hundredths of a second by clicking the buy or sell button of our broker just by programming it (like Expert Advisors in MT4).

However, after a well-known broker was about to go bankrupt, due to the problems caused by this type of operation, the matter gradually became more complicated. In this way, trading on economic data as soon as it comes out, is no longer a good business. Although demo can be interesting, I assure you that trading in those seconds after the data is released can be a drama. Do not try that at home. However, trading with macro data can be especially interesting with the necessary adjustments.

I will show you one that has been especially useful to me.

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Trading System with RSI and Stochastic Oscillator

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This trading system based on technical analysis combine three of the most used technical indicators. The moving average is a trend indicator and the stochastic and the RSI are oscillators used to determine when the market is oversold and overbought and the strength of the price movement, so this combination can provide safer trading signals.

Introduction

This is a simple trading technique that combines the use of the RSI, the stochastic oscillator and the moving averages. It is an easy to use strategie that can be used to trade in any market. Because this trading technique use oscillators is most commonly recommended for markets that are not moving with a strong trend as it can produce multiple false signals.

If you use this strategy in a trending market, you must open your positions until all specified trading conditions are met.

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