Currency Traders

[badcompany]

Which platform do you use?

I don't do too much currency trading, as I'm mainly a stock market guy, but I have an account with Oanda and have no major beefs.

[RaceBookJoe]

Which platform do you use?

I don't do too much currency trading, as I'm mainly a stock market guy, but I have an account with Oanda and have no major beefs.

I trade futures through NinjaTrader and am pretty sure that you can trade forex with them. Lots of people run Ninja through Interactive Brokers and also assuming that they handle forex.

[Dick Schmidt]

Ninja does indeed work to trade Forex. Depending on your account size, there may be a charge to use it and get a live feed. Same with TradeStation, it can cost as much as $200 a month, but discounts are given depending on account size and broker.

The more or less defacto standard of the industry is Meta Trader, which is currently in it's fourth version, normallly called MT4. It is free to use, has a free data feed and is offered by just about every Forex broker in the world. It's real advantage is the active developer community and the massive number of indicators that it can run. Downside is that it is badly written in Russia and can be a pain in the butt some times. Can drive programmers mad, but it is what most private traders use because you can get it to do almost anything if you seek out the correct indicators.

I've used MT4 for about 4 years now and it sometimes gives me problems, but works well enough that after two days of trading this week, my setup is up about $2800, so I use it and put up with its flaws.

PLEASE download and practice with a Demo account (play money) before you try trading Forex. Every broker offers them. You are trading live against people and institutions who can move billions at a time (think European Central Bank or Bank of Japan) and you can get hurt in a hurry. Forex trades more in a week than the stock market does in a year and can move very fast, with no controls or oversite. Be careful out there.

Dick

Whenever I fill out an application, in the part that says, 'In case of emergency, notify:' I put 'DOCTOR.'

[lamboguy]

i don't trade currency's but i do trade paper gold. i use THINK or SWIM because everything is right in front of you with one screen without having to go back and forth.

[badcompany]

Good post, Dick.

A few questions, if you don't mind:

Which are your favorite indicators?

What time frames do you like?

How do you choose which pair to trade?

Thanks

[badcompany]

The Metatrader4 app has a free practice account


http://i95.photobucket.com/albums/l142/thinlizzy21/cc0f49fff14fa25e973f5c0f0c4d77e0_zpsfd92cd5c.jpg

[RaceBookJoe]

You can also choose to trade the currency futures ie 6J=yen, 6A=aussie,6B=british pound etc

[Dick Schmidt]

Good post, Dick.

A few questions, if you don't mind:

Which are your favorite indicators?

What time frames do you like?

How do you choose which pair to trade?

Thanks

I use a combination of several indicators that I have put together over the years that I find work well together. My favorite (the one I base most of my trades from) is the Supply/Demand level indicator based on the work of San Saiden from OTC.

I trade almost exclusively the 5 minute charts. Obviously this is not an investment, but rather a job. When in a trade, I keep my butt in the chair and watch it like a hawk.

Depends on the time of day. During the afternoon Asia session I trade mostly the Aussie pairs, as that is the market that is open. During London, I scan about 15 pairs looking for trade setups.

Dick

All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation. ~John Adams

[badcompany]

Found this online.

It's a PDF of a Barclay's/Lehman Currency Taining Manual. It's basically a course in Currencies.

http://jenner.com/lehman/docs/barclays/LBEX-LL%203356480-3356609.pdf


http://i95.photobucket.com/albums/l142/thinlizzy21/04a88ef30bf55d714f204acbc82f07fa_zps4d93a750.jpg

[badcompany]

Man, this is some cool stuff. Trading currencies on your smartphone:

http://i95.photobucket.com/albums/l142/thinlizzy21/B151D1B7-2171-4830-9CC1-B5B24E2FDD99-801-000000CDE7B428DD_zpse6e526b6.jpg

Dick,

If you're still around, how many pips is a median winning trade on a 5 min chart?

Thanks

[sammy the sage]

I was at my bank today; there was a short line. There was just one lady in front of me, an Asian lady who was trying to exchange yen for dollars. It was obvious she was a little irritated . . . She asked the teller, "Why it change? Yesterday, I get two hunat dolla fo yen. Today I only get hunat eighty? Why it change?"

The teller shrugged his shoulders and said, "Fluctuations." The Asian lady says, "Fluc you white people too"

[Tape Reader]

I was at my bank today; there was a short line. There was just one lady in front of me, an Asian lady who was trying to exchange yen for dollars. It was obvious she was a little irritated . . . She asked the teller, "Why it change? Yesterday, I get two hunat dolla fo yen. Today I only get hunat eighty? Why it change?"

The teller shrugged his shoulders and said, "Fluctuations." The Asian lady says, "Fluc you white people too"

Pisser! I needed a laugh like that after a very dull trading day.

[Dick Schmidt]

Badcompany,

My usual win is 10-15 pips, though I don't really track that number. The best 5 min trade ever was 209 pips, and I break even on about 10-15% of trades and lose about 20% with a 7 or 10 pip stop loss.

As you can see, I am in and out of the market frequently and don't hold many trades for the long haul. I occationally take a long term trade, but I prefer the quick in and out trades that you can find in almost any market at any time.

Dick

The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet.

[fast4522]

"The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet."

The best post I have seen this year.

[RaceBookJoe]

Badcompany,

My usual win is 10-15 pips, though I don't really track that number. The best 5 min trade ever was 209 pips, and I break even on about 10-15% of trades and lose about 20% with a 7 or 10 pip stop loss.

As you can see, I am in and out of the market frequently and don't hold many trades for the long haul. I occationally take a long term trade, but I prefer the quick in and out trades that you can find in almost any market at any time.

Dick

The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet.

That's really good, maybe you mentioned it before, but are you trading off of price action or which indicator/s do you use for your trading. Thanks and keep it going !!!

[badcompany]

Badcompany,

My usual win is 10-15 pips, though I don't really track that number. The best 5 min trade ever was 209 pips, and I break even on about 10-15% of trades and lose about 20% with a 7 or 10 pip stop loss.

As you can see, I am in and out of the market frequently and don't hold many trades for the long haul. I occationally take a long term trade, but I prefer the quick in and out trades that you can find in almost any market at any time.

Dick

The difference between a Socialist and a Communist is that the Socialist doesn't have all the guns yet.

Thanks, Dick.

It seems like you need a high batting average when trading such a short time frame as the spread makes the effective takeout pretty high.

Here's an interesting chart regarding Forex trading and why I think it's a game on the rise. I believe this trend will continue as the game lends itself well to mobile trading.

http://i95.photobucket.com/albums/l142/thinlizzy21/5f02216d2a7b2abba4d6b6a6e1732ad6_zps950f3330.jpg

[PaceAdvantage]

Forex is the one market I have never placed a trade in. Stocks, futures (currency, oil, index) and options I have plenty of experience in. But never Forex.

I think the one thing that is stopping me is the lack of a centralized market. Am I correct on that? Doesn't each broker effectively have its own trading floor, so to speak, or something to that effect?

I know Forex is supposedly the biggest market in the world, but you're not trading in one big market, are you?

There is no volume reported with Forex trades, the little I know about the game. It's not like with futures, for instance, where all trades clear through the CME.

Maybe someone can clarify this for me...

[RaceBookJoe]

Forex is the one market I have never placed a trade in. Stocks, futures (currency, oil, index) and options I have plenty of experience in. But never Forex.

I think the one thing that is stopping me is the lack of a centralized market. Am I correct on that? Doesn't each broker effectively have its own trading floor, so to speak, or something to that effect?

I know Forex is supposedly the biggest market in the world, but you're not trading in one big market, are you?

There is no volume reported with Forex trades, the little I know about the game. It's not like with futures, for instance, where all trades clear through the CME.

Maybe someone can clarify this for me...

That's what has always kept me away from Forex, but that could be mainly my not understanding it well enough. Also, even though its a huge market, how much of that is bank-to-bank, govt-to-govt action etc. Best thing for forex traders is that they can trade based around their own personal schedule...not everyone is free when the futures or US market opens/trades.

[badcompany]

Forex is the one market I have never placed a trade in. Stocks, futures (currency, oil, index) and options I have plenty of experience in. But never Forex.

I think the one thing that is stopping me is the lack of a centralized market. Am I correct on that? Doesn't each broker effectively have its own trading floor, so to speak, or something to that effect?

I know Forex is supposedly the biggest market in the world, but you're not trading in one big market, are you?

There is no volume reported with Forex trades, the little I know about the game. It's not like with futures, for instance, where all trades clear through the CME.

Maybe someone can clarify this for me...

It's an organ of the financial establishment and not suprisingly the same group of suspects contra it that controls the stock and bond markets.

My broker is Oanda which uses JP Morgan as its custodian bank.

http://i95.photobucket.com/albums/l142/thinlizzy21/BEEFD7BD-C4BC-4126-B2FF-D28284D6856C-1639-000001EB54A95E18_zps898a5a89.jpg

[badcompany]

Mike,

I found this PDF. It's a pretty comprehensive work about foreign exchange:

http://study2.academy.sumy.ua/files/86974.pdf

http://i95.photobucket.com/albums/l142/thinlizzy21/372CEE9E-F54D-4500-9202-00AF88D44F5B-1639-000001EF7C041EDB_zps1532b1d6.jpg

[PaceAdvantage]

Cool...thank you...

[badcompany]

Cool...thank you...


No problemo,

I found this paper informative, as well.

http://m.norges-bank.no/Upload/English/Publications/Working%20Papers/2011/Norges_Bank_Working_Paper_2011_10.pdf

http://i95.photobucket.com/albums/l142/thinlizzy21/25BF243D-57EA-444F-B8B9-C21964DFB142-1639-000002155610316A_zps76b32776.jpg

[Tape Reader]

Anyone design or trade “robots” for FX?

[Dick Schmidt]

Anyone design or trade “robots” for FX?


I like to play with trading robots, or EAs as they are called in MT4. It's become sort of a hobby of mine and I have a computer that I use to do nothing else. I know a guy who buys a lot of this stuff, and he lets me have copies. I also know one of the premier programmers in the Forex world who asks me to test some of his stuff.

So far, no commercial robot has produced a significant profit over any reasonable testing period. Most are just scams, but a few are sincere attempts that just aren't reliable enough to use with real money. My programmer friend wrote one based on some input from me and some other traders that has shown a 40% return per year for the past three years, so I know it is possible. This EA is not for sale.

Dick

A master is one who, after studying a thousand techniques, finds three he can use any time, and to perfection.
--Shaolin adage.

[Tape Reader]

I like to play with trading robots, or EAs as they are called in MT4. It's become sort of a hobby of mine and I have a computer that I use to do nothing else. I know a guy who buys a lot of this stuff, and he lets me have copies. I also know one of the premier programmers in the Forex world who asks me to test some of his stuff.

So far, no commercial robot has produced a significant profit over any reasonable testing period. Most are just scams, but a few are sincere attempts that just aren't reliable enough to use with real money. My programmer friend wrote one based on some input from me and some other traders that has shown a 40% return per year for the past three years, so I know it is possible. This EA is not for sale.

Dick

A master is one who, after studying a thousand techniques, finds three he can use any time, and to perfection.
--Shaolin adage.

Thank you, Dick Schmidt. I agree with you about the scams. The ads are very appealing to a novice, until one finds out that the spectacular results are usually from a “martingale” technique.

I also think that it is possible. Good luck with yours.

[badcompany]

The inherent flaw of a system that has you buying and selling "Roboticly" is that you're playing the game with your cards face up. It's no different than 100 years ago when chart formations were all the rage. Eventually, the dealers figured out when traders could be counted on to buy or sell, and then worked them at every opportunity.

[badcompany]

Dick,

Are you a believer in Trailing Stops or Take Profit orders?

Thanks.

[Dick Schmidt]

Dick,

Are you a believer in Trailing Stops or Take Profit orders?

Thanks.

Bad,

I usually sit and watch my trades and use an EA which allows me to "drag and drop" my stop level. I only use a trailing stop if I have to step away from the computer for some reason. I have never seen the point of Take Profit orders. All they do is limit your profits. Let the trade run until you think it is turning around. The trailing stop works fine instead if I have to step away.

Dick

To be sure of hitting the target, shoot first and call whatever you hit the target.

[badcompany]

Bad,

I usually sit and watch my trades and use an EA which allows me to "drag and drop" my stop level. I only use a trailing stop if I have to step away from the computer for some reason. I have never seen the point of Take Profit orders. All they do is limit your profits. Let the trade run until you think it is turning around. The trailing stop works fine instead if I have to step away.

Dick

To be sure of hitting the target, shoot first and call whatever you hit the target.

Dick,

I was wondering what you think of this chart. Notice all the spikes are towards the downside but the Aud is inching upward.

Is there a typical direction the currency would go?

http://i95.photobucket.com/albums/l142/thinlizzy21/07c6dc31faf4a1177111d5946784c5a9_zpsa0317d78.jpg

[Dick Schmidt]

Hi Bad,

I tried to match your chart with my 5 min chart, but couldn't find the exact match. I'm guessing late in the NY session. The chart is rather flat during that time and I don't see any good trade oppertunities. As for the chart itself, I don't think 3 simple moving averages are enough to trade with consistently, but if you can make them work, go for it.

I did trade the Aussie/Yen that day, taking two trades during the Asia session, one early on for 9 pips and another a couple of hours later for 14. Decent setups, but not much movement that day.

If you want to discuss this or any other charts, drop me an email. I chat with other traders on Skype all the time and do a couple of live trading webinars every week.

Dick

Dijon vu - the same mustard as before.

[acorn54]

Which platform do you use?

I don't do too much currency trading, as I'm mainly a stock market guy, but I have an account with Oanda and have no major beefs.


hi bad company, i am presently doing paper trades with currency and also use oanda.
here is a link perhaps this will let you size up the various currency trading companies.


http://forex-brokers-review.toptenreviews.com/

[PICSIX]

MB Trading Forex Accounts are being transferred to Trade King Forex :mad:

Does anyone currently use Trade King...good? Bad?

I've been running MB & TK platforms side by side for about a week now and the big difference I see is in the spreads (basically commissions.....bid vs ask). On average TK spreads on the EUR/USD pair are higher by .6 pips or 1.2 pips per round trip. If trading one full lot size that's $12 extra per trip.

Another potential negative is TK is an introducing broker for Gain Capital(market maker), which, I believe, means Gain Capital may be betting against the retail trader at times.

If you trade Forex and are happy with your current broker please post something here.

Thanks,

Mike

[PICSIX]

MB Trading Forex Accounts are being transferred to Trade King Forex :mad:

Does anyone currently use Trade King...good? Bad?

I've been running MB & TK platforms side by side for about a week now and the big difference I see is in the spreads (basically commissions.....bid vs ask). On average TK spreads on the EUR/USD pair are higher by .6 pips or 1.2 pips per round trip. If trading one full lot size that's $12 extra per trip.

Another potential negative is TK is an introducing broker for Gain Capital(market maker), which, I believe, means Gain Capital may be betting against the retail trader at times.

If you trade Forex and are happy with your current broker please post something here.

Thanks,

Mike

Bumping for weekend eyes to see.

[Dick Schmidt]

Quite a few traders I know, including myself, have been using MB Trading and now find ourselves wondering if we should stay. Depending on what you read, Gain owns Trade King, or TK owns Gain. Either way, Gain is a market maker and takes the other side of trades, thus has a vested interest in you losing.

I've been searching for a new broker for a few weeks now, but haven't come up with a really good solution. MB worked so well that I've set the bar quite high and haven't found any brokers who can match MB. So far the best I've come up with is ATC Brokers, who aren't a true ECN but clear through FXDD. Not a perfect solution, but their spreads are very good.

I'm still shopping for a new broker as I don't really want to trade with Gain. I'll let you know if I find a better solution.

Dick

No trees were harmed in posting or transmitting this message, but trillions of electrons were horribly inconvenienced.

[PICSIX]

Quite a few traders I know, including myself, have been using MB Trading and now find ourselves wondering if we should stay. Depending on what you read, Gain owns Trade King, or TK owns Gain. Either way, Gain is a market maker and takes the other side of trades, thus has a vested interest in you losing.

I've been searching for a new broker for a few weeks now, but haven't come up with a really good solution. MB worked so well that I've set the bar quite high and haven't found any brokers who can match MB. So far the best I've come up with is ATC Brokers, who aren't a true ECN but clear through FXDD. Not a perfect solution, but their spreads are very good.

I'm still shopping for a new broker as I don't really want to trade with Gain. I'll let you know if I find a better solution.

Dick

No trees were harmed in posting or transmitting this message, but trillions of electrons were horribly inconvenienced.

Thanks for your response. I forgot to mention the "big" positive about TradeKing/Gain Capital is that trader's accounts are segregated.....if TradeKing goes bankrupt the trader's account (money) is safe.

This reviewer clearly recommends ATC: http://forex-brokers-review.toptenreviews.com/atc-brokers-review.html

Mike

[Dick Schmidt]

Thanks for your response. I forgot to mention the "big" positive about TradeKing/Gain Capital is that trader's accounts are segregated.....if TradeKing goes bankrupt the trader's account (money) is safe.

This reviewer clearly recommends ATC: http://forex-brokers-review.toptenreviews.com/atc-brokers-review.html

Mike

Talked with Trade King today. They do segregate some accounts, but not Forex, which are all held by Gain Capital. Nuts.

Dick

My whole body cries out against the inhumanity of regular employment.

[thaskalos]

My whole body cries out against the inhumanity of regular employment.
Great movie! :ThmbUp:

[ReplayRandall]

Great movie! :ThmbUp:

"Reuben, Reuben" a great movie?.....I don't know what to say, never mind.

[thaskalos]

"Reuben, Reuben" a great movie?.....I don't know what to say, never mind.
OK...I'll ask for your opinion the next time I get ready to call another movie "great".

[ReplayRandall]

OK...I'll ask for your opinion the next time I get ready to call another movie "great".

Not a bad idea.... ;)

[PICSIX]

Talked with Trade King today. They do segregate some accounts, but not Forex, which are all held by Gain Capital. Nuts.

Dick

My whole body cries out against the inhumanity of regular employment.

Order execution at Trade King was horrible during the EUR session both Monday and Tuesday. Opening, closing and modifying orders took up to 10 seconds many times. For some reason it got better during the New York session???? :mad: It is quite scary watching price action continue for 10 seconds after your stop has been hit :mad:

This morning there were 2.5 hours of price data missing on their MT4 platform?? :mad:

I mostly trade from 2:00am to 11:00am EST and only the EUR/USD. Please let me know if anyone from your group has a broker they like.

Thanks,
Mike

[cbp]

"Reuben, Reuben" a great movie?.....I don't know what to say, never mind.
'They dropped like hangmen'. What a great line. Becoming increasingly relevant as I age.

[Hoofless_Wonder]

This thread is a bit discouraging. I was thinking about giving FOREX another whirl, but if it's tough to find a decent broker, maybe I'll just stick with futures trading.

About six years ago I tried the paper/practice trading from one of the sites, I think it was FXCM. I was lured by the easy money and the 24x7 action, but had enough sense to know that there were lots of scams out there. I successfully turned $50K into $0 in about three days. A week later, I get a call from their sales force asking about whether or not I'm interested in funding a trading account. I laughed and said my "practice" results were not so encouraging. I was assured I just needed some more practice, and my paper account was funded with another $50K. The second round I think it only took me about 20 hours to drive my account into the dirt, with a final balance actually negative - like $700 bucks, as there was some delay getting out of a position.

I have not heard from FXCM since then..... :)

[PICSIX]

This thread is a bit discouraging. I was thinking about giving FOREX another whirl, but if it's tough to find a decent broker, maybe I'll just stick with futures trading.

About six years ago I tried the paper/practice trading from one of the sites, I think it was FXCM. I was lured by the easy money and the 24x7 action, but had enough sense to know that there were lots of scams out there. I successfully turned $50K into $0 in about three days. A week later, I get a call from their sales force asking about whether or not I'm interested in funding a trading account. I laughed and said my "practice" results were not so encouraging. I was assured I just needed some more practice, and my paper account was funded with another $50K. The second round I think it only took me about 20 hours to drive my account into the dirt, with a final balance actually negative - like $700 bucks, as there was some delay getting out of a position.

I have not heard from FXCM since then..... :)

Here is one trade set-up that works well for trading the EUR/USD on a 5 minute chart:

1. Mark the high and low of the time period from 2:00am-3:00am EST with horizontal lines.

2. Take the first break-out high(buy) or low(sell) of those horizontal lines.

3. Place a stop-loss below(buy) or above(sell) the break-out bar.

4. Close the trade after 30 minutes or if stopped out.

[thaskalos]

This thread is a bit discouraging. I was thinking about giving FOREX another whirl, but if it's tough to find a decent broker, maybe I'll just stick with futures trading.

About six years ago I tried the paper/practice trading from one of the sites, I think it was FXCM. I was lured by the easy money and the 24x7 action, but had enough sense to know that there were lots of scams out there. I successfully turned $50K into $0 in about three days. A week later, I get a call from their sales force asking about whether or not I'm interested in funding a trading account. I laughed and said my "practice" results were not so encouraging. I was assured I just needed some more practice, and my paper account was funded with another $50K. The second round I think it only took me about 20 hours to drive my account into the dirt, with a final balance actually negative - like $700 bucks, as there was some delay getting out of a position.

I have not heard from FXCM since then..... :)

As usual...Thaskalos comes to the rescue: :ThmbUp:

http://www.amazon.com/Steps-Making-Living-Trading-Forex-ebook/dp/B0176XGS6S/ref=sr_1_42?s=books&ie=UTF8&qid=1446780589&sr=1-42&keywords=forex+trading

[Dick Schmidt]

After an extensive search, I have decided to move my principle trading account to ATC brokers. They are here is the US (actually about a mile from my house) and offer great spreads, though with an $8 commission. They may not be for everybody as they require a minimum account of $5,000 and don't trade micro lots. Geared towards the professional, they are an IB for FXCM. Not sure how they manage it, but they have better spreads than FXCM itself.

Dick

A clear conscience is the sign of a fuzzy memory.

[Dick Schmidt]

Here is one trade set-up that works well for trading the EUR/USD on a 5 minute chart:

1. Mark the high and low of the time period from 2:00am-3:00am EST with horizontal lines.

2. Take the first break-out high(buy) or low(sell) of those horizontal lines.

3. Place a stop-loss below(buy) or above(sell) the break-out bar.

4. Close the trade after 30 minutes or if stopped out.

A very interesting way to trade. I use a very similar technique called ACD based on the work of Mark Fisher. He wrote about using it in the commodities markets and I modified it to work on FOREX. It has provided steady profits for about 3 years now. I'll give your time settings a look. Thanks.

Dick

To steal ideas from one person is plagiarism. To steal from many is research.

[PICSIX]

After an extensive search, I have decided to move my principle trading account to ATC brokers. They are here is the US (actually about a mile from my house) and offer great spreads, though with an $8 commission. They may not be for everybody as they require a minimum account of $5,000 and don't trade micro lots. Geared towards the professional, they are an IB for FXCM. Not sure how they manage it, but they have better spreads than FXCM itself.

Dick

A clear conscience is the sign of a fuzzy memory.

Thanks for the update. My plan is to open an new account with ATC, keep Trade King (for awhile) and run my EA on each to compare them.

Thanks,

Mike

[PICSIX]

After an extensive search, I have decided to move my principle trading account to ATC brokers. They are here is the US (actually about a mile from my house) and offer great spreads, though with an $8 commission. They may not be for everybody as they require a minimum account of $5,000 and don't trade micro lots. Geared towards the professional, they are an IB for FXCM. Not sure how they manage it, but they have better spreads than FXCM itself.

Dick

A clear conscience is the sign of a fuzzy memory.

I downloaded ATC's MT4 platform yesterday and ran my EA on a demo account. The commission is $8 for a standard lot(1.0), $4 for a .50 lot, $ .80 for a .10 lot. The commission is 8/10 of a pip based on lot size, not a set $8 per trade.

The EA only needs minor coding changes for this commission plus spread trading compared to spread only trading.

Mike