Trailing Stop Automation With Expert Advisor on Metatrader

With the sophistication of technology and the fast pace of trading, traders always demand quick and precise execution of their trades. Any delay in this execution could result in a loss opportunity to enter the market at the right time. Hence, they try to seek automation whenever they can. In retail investors’ case, the power of the expert advisor (EA) in Metatrader platform comes in handy.

For retail investors who trade manually but do not want to monitor their trade all the time to seek out the proper exit timing, they can always opt to make use of Metatrader’s own trailing stop to manage their trade. Often in my case I do not see that Metatrader trailing stop function is good enough for more flexibility in devising an exit strategy.

In fact, it doesn’t work as well as I thought it to be. If you are like me, thinking that there should be better trading management tool, look no further than using Metatrader’s own mql4 programming language to develop your own EA.

Developing your own Metatrader trailing stop EA is the way to go to automate your trade with proper exit strategies. The trailing stops that you can create are customized to your own needs and that it can be as simple or sophisticated you want it to be.

As managing trade is time and energy consuming, you will be tied up to just 1-2 trades at a time and that the room for error in executing the trailing method to manage your trade will be higher. That is what every trader will not want to happen. Automation of the trade you are having now minimize human factors in the execution process and thus removing delay along the way.

You have full control of what kind of management strategy you want to employ for different market conditions and trading strategies. In addition, you free up your time to further research on other potential trades or just doing other stuff without the worry of not having babysitting your trades.

Although, automation itself have many of its benefits in assisting you in your trade management, you do need to have a strong foundation in mql4 programming to create a good EA which requires lots of time or you could spend thousands of dollars looking for a professional programmer to do it for you. You have to remember that only a properly created EA can help to execute your instructions accurately.

Feel free to use this article on your website or ezine as long as the following information about author/website is included.


Source by Charlie Ng

Online Bond Trading

Online bond trading is a far less risky venture than online stock trading. It is because bonds are usually long-term investments and have maturity date. If you invest in bonds, you get a steady stream of interest because unlike other assets, bonds are not subject to shifts in interest rates.

In the past, online bond trading is lagging behind online stock trading, however as more and more people find the less risk in investing in bonds, the gap between the two ventures will soon start to close.

Before you start in online bond trading, the first thing that you have to know is exactly what bonds are. Bonds are certificates of debt which are issued by states, governments, or corporations which will be repaid later at maturity typically larger than one year. If you buy a bond, you are something loving that amount of money to the issuer on which they will have to pay interest rate at the same time. Until the bond matures, the original investment is repaid to you together with the interest that has been accrued during the entire period.

As mentioned earlier, bonds are less risky than stocks because there is more security in case the issuer suffices financial setbacks and since they are repaid with interest, there is not the same fear of sudden loss of value that is usually associated with stocks. The disadvantage, on the other hand, is that bonds do not convey any portion of ownership or control in the issuing company unlike in stocks.

When you finally decide to go for online bonds trading, you have to keep in mind these important considerations: the issuer, the interest rate that will be paid on the bonds and the issue and maturity dates. You should choose your investment according to these so you will find the bonds that will pay you the most upon maturity.


Source by Marcus Peterson

How to Eliminate the Risk in the Stock Market With a Stock Day Trade Program

The stock market can turn you from rags to riches if you know what you’re doing, but conversely it can be a risky place to make a living as well. The stock day trade program was designed to take the risk out of investing in stocks for those who can’t stake it, and here is what you should know about it.

The stock market largely moves in cyclic shifts and patterns. A stock day trade program predicts where the market is going in the future by taking this into account. It makes use of mathematical algorithms to build elaborate working databases of past trend and market data, then by applying it to current real time data it can pick out the beginnings of trends in the market. It then gives this information to you so that you can trade accordingly, getting in and out of trends at profitable low and high peaks, respectively so that you can safely maximize your profits.

Experts and critics have begun to take notice of the technology that is the stock day trade program which was originally reserved for the trading elite to help guide them. They especially laud the fact that because every move you make should be based entirely on algorithmically crunched market data and nothing else, no emotions or harmful outside subconscious human factors have a chance of polluting your trades. 

Using a stock day trade program is especially recommendable for newbies in the market because it significantly reduces the risk factor but also does all of the work for you so that all you’ve got to do is enact the recommended trades. Busy traders and casual traders can also use this technology as it doesn’t require any of your time beyond the time it takes to enact the trade and check in on your investment from time to time.


Source by Jonathan Langley

A Quick Review on Futures Trading Methods

There has been a lot of talk about futures trading and how much it can benefit a person. For an unknown quantity in the online financial market, it has made some bold statements that include “helping to eliminate all your financial troubles”. This is not the first time that such statements have been claimed by various websites online and I’m sure we all know the amount of truth that lye’s in them. For this reason we have taken the time to carefully examine and test futures trading to see whether or not it is the real deal or just another scam waiting to rip you off from your money.

Before we go into the details of what we found in regards to futures trading, it is important to understand what futures are all about. The same principal that one would follow in terms of investing in stocks and shares also applies here. In this form of trading the key to success lye’s in predicting the correct direction in which the direction flows. Now you may be asking yourself, if stocks and shares offer the same thing, then what is the major difference that makes it so profitable? The key difference is the markets that are being offered by this form of trading. The commodities offered in terms of markets of investment are very unique and you would not expect to see any person investing money in such categories. Some of these commodities include currency, wheat, beef, oil, gold and steel. Some of these may sound like good options such as oil and gold but you may question the authenticity of the site when reading investments in wheat and beef. I mean can that really be possible?

The thing about futures trading is that it goes to the roots of the financial world. For you to understand where such commodities have come from, it is important for you to realise that every commodity in this world has a market that one can invest in. If that was the case, then the way in which major countries trade amongst one another would never be possible. This form of trading was only available to high street investment firms a couple of years ago. Seeing that technology has advanced, this has now been made available to the general public through futures trading.

We have trialled and tested futures trading for about a year now and have seen remarkable results. With in the first month of using futures trading we were able to see an increase of 85% in our initial deposit.

If you are also planning to make use of futures trading then we highly recommend that you do so. There is one thing to keep in mind is that futures trading is based on the volatility of the market. What this means is that sometimes you may see larger profits than others and there will also be days where you see a loss as well. The key to success with this form of trading is for one to take their time.


Source by Jeff C Daniels

Strategies of Binary Options Trading

Previously in the article “Binary Options, The New Investment Tool for the On-The-Go Investor” we discussed the origins and basics of Binary Options.  In this article we are going to discuss the strategies you can use in Binary Options trading.

Conventional Strategies

Typically, when trading conventional futures and options, traders use numerous strategies such as the Collar, Covered Call, Straddle, Spread, Protective Put, and more to minimize their risk of loss when the market is fluctuating up and down in an erratic manner; typically know as a volatile market.  A loss in one CALL trade can be offset or even profitable by a PUT trade made on a different Asset in another trade made at the same time.  Frankly, this type of strategy should be left to the experienced trader.  I could go on for many articles explaining all of the different strategies used in trading, but it would only bore the experienced traders and would greatly confuse the beginning traders.

Simplified Trading At Its Best

The simplicity of Binary Options has enabled the person on the street to get into trading without having to learn the in-depth strategies of conventional trading.  As a result, it has brought a lot of new money into the trading scene to the delight of the average on-the-street investor.  The simplicity of the Price Up or the Price Down and two mouse click trading with as much as an 81% profit has caught the attention of a whole new segment of investors.

“RTSB” – The Simplified Strategy

Along with the simplified trading comes a simplified strategy for trading Binary Options. I like to call it “RTSB” which stands for “Read the Screen Bud”.  Yep, that is right. Open your eyes, turn off the TV, stop texting your friends, close your chat room windows, and look at what is on the trading screen right in front of you.  In addition to displaying the current price and trading period every Binary Options trading screen has a button that will allow you to display the chart of the previous trading period.

While “RTSB” is the visual cue to look at what is in front of you the analytical cue is for you to look at whether the price of the Asset is going Up or Down.  The direction of movement is called the Trend Line and the question you need to answer for yourself is whether the Trend is going Up or is it going Down.

If the Trend is going Up then you would consider making a CALL trade.  However, if the Trend is going Down you want to consider making a PUT trade.

The “DDSS” Strategy

The “DDSS” Strategy is also quite simple, “Don’t Do Something Stupid”.  This strategy is best explained by an example.  As you are looking at the charts for the Asset and you see the current price start to go Up then a few minutes later it goes Down by an almost equal amount, then a few minutes after that it goes Up again.  If you look at the average price during this time period you should see that it remains almost the same.  Some traders call it “Flat lined”, but the trading term is ” Sideways Moving”.  This is where you apply the “DDSS” strategy and DO NOT make any Trades for that Asset.  A Sideways Moving price is very hard to predict and most of the time your prediction will be wrong.  Stay away from it and look for another Asset that has an obvious Up or Down Trend Line.

I must admit, the RTSB and DDSS strategies are really attention getters to highlight that you must pay attention to what you are doing as you can lose money fast if you do not do your own research before trading.

The Spread Strategy

The Spread Strategy is a real trading strategy that has also been simplified by Binary Options trading.  In conventional options trading you use the Spread or Straddle strategy to buy CALLS and sell PUTS on the same Asset.  However, in Binary Options trading you can’t place a Call and PUT trade for the same Asset unless you are using two different trading Brokers which is not recommended.

The basic idea of the Spread in Binary Options is to find two Assets where the Trend line is Up for one and Down for the other.  On the Asset that the Trend line is up you place a CALL trade on it while on the Asset where the Trend line is down you place a PUT trade on it at the same time.

The Spread strategy is often called “hedging your bet”. If both trades end In-the-Money you could receive an 81% payout on both of them.  A $100 Trade Price on each of the trades would result in a $162 profit.  However, if one trade ends Out-of-the-Money you have minimized your loss to $19; $100 loss on one trade and $81 profit on the other trade. However, if both trades are Out-of-the-Money you would have a $162 loss.

Risk Management

In trading, Risk Management is a major process that you must adhere to.  Fortunately, Binary Options are designed to have a fixed payout and a fixed loss per trade thus limiting your risk on each trade.  However, the only limit on poor judgment and gambling fever on your part is your own will power to NOT trade when market conditions are poor or when you are consistently Out-of-the-Money on a majority of your trades. Take a break, step back, and analyze why most of your trades are Out-of-the-Money.  Doing your own research in the Trend Line of each Asset is key to minimizing your risk when trading.

Watch for the next article in the Binary Options Trading series, “Which Market is best for Binary Options Trading?”  We will discuss how you can determine if you should trade in the Forex, Stock, Commodity, or Index markets.


Source by Gregg Sterner

How To Use Bollinger Bands to Make You Profits

The Bollinger band: One of the oldest and best indicators to apply in 2018

Any Kind of proven good technical indicators requires to include several forms of volatility channels. A trend can be identified using a method like a volatility channel. It uses the theory that if the purchase price moves beyond a moving average plus extra

amount, a tendency may have started.

The Bollinger band indicator is a volatility channel created by financial analyst John Bollinger more than 30 years ago. It is still one of the best indicators for trading among the various volatility channel methods.

The Bollinger band indicator uses two guidelines, first one is the number of days for the moving average and the second one is the number of standard deviations that you would like the band deviated from the moving average. The most frequent values are 2 or 2.5 standard deviations.

In stats, the typical deviation is a way of measuring how to spread aside from the values of a data set in place are. But In finance, standard deviation functions as a means of gauging volatility.

What’s actually the bottom line?

A Bollinger band indicator will adjust to Forex market volatility. It widens as volatility rises and narrows as volatility reduces. A long-period trend-following system using Bollinger band indicator might use two standard deviations and a 350-day moving average.

You can start an extended position if the prior day’s close is above the channel peak, and have a short if the prior day’s close is lower than the bottom of Bollinger band. Exit point would be when the prior day’s close crosses back again through the moving average.

No system will win 100% of the time. What every investor should aim for is to have a system in place that will minimize losses while greatly improving their chances for profits. When using this valuable technical tool with other technical indicators that we will discuss in future articles, your chances of having successful trades greatly increase.

Conclusion

Use Bollinger Bands with other technical indicators such as MACD, %Bullish, and others to better determine when to enter your trades. This is specially critical for investors in the Forex market where technical analysis tools will show strong entry and exit points to your trades thus minimizing your losses.

The free e-book Understanding The Myths Of Market Trends And Patterns describes this and many other strategies to trade the Forex market.


Source by Luis Nieves

These Are the 6 Best Indicators You Should Know

Every Forex trader knows that you must supplement the information in your charts with a number of technical indicators. Among the indicators commonly used are strength indicators, volatility indicators, trend indicators and cycle indicators. These indicators not only help us determine in which the market is moving, but also when a trend is about to end and we should either exit the trade or, with a good signal, reverse the trade.

The following 6 indicators are the most commonly used among Forex traders:

  • Stochastic oscillator – The stochastic oscillator helps a trader determine the strength or weakness of a currency by comparing the closing price to a price range over a period of time. When the trader identifies a high stochastic that said currency may be overbought and you should go short or bearish. Conversely, a low stochastic indicates that a currency may be oversold and you should go bullish or long.
  • Bollinger Bands – Bollinger bands contain the majority of a currency’s price between the bands it displays. Each band has three lines – the lower and upper lines show the price movement and the middle line shows the average price of the currency. When the market is experiencing high volatility, the gap between the lower and upper bands will increase. In you candlestick or bar chart, the currency is considered overbought if a bar/candlestick touches the upper band and oversold if bar/candlestick touches the lower band.
  • Average Directional Movement (ADX) – ADX is used to determine whether a currency is entering into a new uptrend or a downstrend. The ADX is also used to determine how strong the trend is.
  • Relative Strength Indicator (RSI) – RSI uses a 0 to 100 scale to indicate the highest and lowest prices over a period of time. When prices of a currency rise over 70 the currency is presumed to be overbought. On the other hand, a price below 30 would most likely indicate that a currency is oversold.
  • Simple Moving Average (SMA) – The SMA is the average currency price for a given period of time compared to other prices during the same time periods. To illustrate how SMA works, the closing prices over a 7 day period will have a SMA equal to the addition of the previous 7 closing currency prices divided by 7.
  • Moving Average Convergence/Divergence (MACD) – MACD is another oscillator that shows momentum of a currency as it relates to the two moving averages. As we discussed in previous articles, when the MACD lines cross, that crossing may indicate the start of an uptrend or a downtrend.

Source by Luis Nieves

A Beginners Guide: Invest or Trade

Obviously if you are just starting learning about investments and trading you may notice all the jargon that this field uses. One of the most common mistakes people make is not knowing what they want to do, invest or trade.

They are very similar but they are also very different. The main difference is that trading is short term and investing is longer term assessing good investment opportunities often makes use of fundamental information, such as earnings, but can also use technical analysis to detect long-term trends. If one is trading they usually do it at an interval of less than a week but this may be even up to a month or more. Traders assess good trading opportunities by typically making use of trading systems or chart-based techniques to detect short-term patterns.

One of the main advantages of trading over investing is that it provides the ability to make money regardless of the overall direction of the market or the price of an individual stock. Investing though is what I consider building wealth. Warren Buffet is the first person that should come to mind with investing. He has built up his empire by investing in several companies and holding them for very long periods of time. Of course there are others who have made millions simply trading, for the beginner because I suggest sticking to basic investing and hold your securities for over a month to be safe. Over time as you get better is when you could shorten you time frames.

I remember when I started moving to trading I was overwhelmed by all the information that I thought I had to learn before I started. Before long though I realized that the best way to learn is by doing, so I started out not knowing everything but enough to get the job done and before long I had learned more from just being in the market than any text or video could teach me .

There are places out there that make it very simple to start, which should be your goal by now. One for instance is Sharebuilder.com they let you buy partial shares of stock on every Tuesday for a $ 4 commission charge which is very low. Another place if you want to move into trading is FXCM they will let you trade Forex for no commission except for course the bid / ask spread and you can start for as little as $ 25.


Source by Jarrod Barber

Make Goal Based Investing to Realize Your Financial Goals

Life is all about setting different goals and achieving them one after another. As Tony Robbins said setting goals is the first step in turning the invisible into the visible. When each rupee you invest has a definite purpose behind it, is called Goal based investing.

Goal based financial planning is done for long term, midterm and short term gains. Long term plans typically yield more wealth comparing the other two. A midterm plan could be buying a home where a short term plan may be having a car.

How it is Different from the Traditional Approach
Unlike the traditional approach of investing, goal based investing does not only focus on your risk profile, rather its focus remains on achieving the target. The investment plans should be designed by keeping the goal at the center.

The focal point of the traditional approach remains in selecting areas that ensure safe returns. It finds a safe and sure path to grow money. Whereas, in Goal based investing, realization of the goals defines its ultimate success. Wealth generation is not the sole target.

Goal based investment plans get designed only after doing a detailed research of the investor's net worth, level of risk-tolerance and financial goals. In case of traditional approach, first the risk quotient is calculated and according to that a pre-designed investment plane gets selected.

Benefits of Goal Based Investing

In life, each rupee you spend is a type investment that yields certain results for you. If your goal based investments are planned, well thought out and work for achieving specific goals then they do not affect each other. The benefits of making goal based investments are-
It engages you in making systematic approach towards a better money management.
It is nothing but a good habit that restricts you from making spur of the moment purchases.
Channelizes your money towards building value assets and wealth through proper financial planning.
Increases the achievability of the financial goals of your life.
You can continuously monitor and make changes to your plan in order to reach close to your desired financial goals.

How to plan a Goal Based Investing

Planning a goal based investment requires-
You have to make a list of important life goals that you need to achieve. You should prioritize them according to their importance.
Analyze your money needs. It will help you in clustering your investments according to the upcoming life events.
Cluster your investments in three sections- 1) Short-term, 2) Mid-term and 3) Long-Term.
Now choose viable investment plans and start investing.

Short Term Goal based investments are made to fulfill prerequisites that are going to arise in next 2 years. You have to choose less volatile and low risk areas to invest as you need to turn them into liquid soon.

Mid-term Goal based investments are those where you need the return in next 3-10 years. Long-term goals may include retirement and child's higher education. To meet such kind of goals, you need to accumulate large corpus. For that, you have to give good effort to identify pre-determined asset class and make systematic investment over longer period of time. During the course of time, you should stay invested in your plan irrespective of the short-term market upheavals.

If you tie your financial investments around a time frame and specific life goals, it gets a lot easier to achieve.


Source by Venki TK

Digital Options Trading Strategy

Successful binary trading and binary options strategies go hand in hand. A trading strategy is a plan on why, when and for how long a trader will take and keep a position. These trading strategies should use derivatives to accomplish initiating risk and are more commonly found in the binary options market. The options market allows a trader to take multiple asset classes to initiate risk for a particular view. The most commonly used binary options strategies are collar, covered call, market conditions, money management, protective put and straddle.Try them out for yourself and choose the best binary options strategy for your needs, also are you not limited to use just one of these strategies, feel free to combine them for even better trading results!

Collar A collar or a risk reversal is when an investor purchases a call and sells a put or vice versa. The main goal of this binary options strategy is to offset the cost of premium for the option that you purchasing by selling another option. If the investor completely offsets the premium from the option purchased, the collar is referred to as a costless collar. A collar is a profitable strategy and benefits the investor in that he does not have to pay out a lot of money on premium and also the risk on implied volatility is greatly reduced.

Covered Call A covered call strategy or a call writing binary options strategy is when an investor or trader sells a call option with a view to enhance his portfolio earnings or to mitigate the portfolios risk profile. It is also defined as a call sold on an instrument that is currently owned by the investor. This binary options strategy is used for three main reasons

(1) the investor will benefit by receiving income from the premium of a sold option

(2) a portfolio will be protected from a market falling, and

(3) to mitigate the downside risk of the market. This option also gives the buyer the right, but not the obligation, to buy the underlying instrument at a specific price on or before a specific date.

Market Conditions The markets can be trending, range-bound or volatile and evaluating the particular market condition can be the difference between a successful trade and a losing trade. A trending market moves in a one direction over a period of time and the trends are classified as secular (for long term time frames), primary (for mid-term periods) and secondary trends (for short-term periods).

If the financial instrument is trending higher, the market is called a bull market trend and if trending lower, a bear market trend. A range bound market on the other hand is when a financial instruments moves up and down in a tight range. The range bound market occurs when supply and demand for a financial instrument is equal. A volatile market occurs when a financial market moves quickly in one direction.

Traders look at the VIX (volatility index) to measure if the market is volatile or is going to be volatile. Bull trending markets have low volatility while bear trending markets have high volatility levels. A trader should examine the type of market a financial instrument is currently experiencing to determine the type of position to take.

Money Management The ability to manage risk appropriately is one of the most important tools of successful trading. Money management is a defensive concept that keeps you trading daily. It uses two concepts trade size and stop placement. A stop placement does not address the question of how much capital should be allocated to a position. This strategy allows traders to form an alternative method to protect their investments.

Protective Put Protective Put allows the investor a full hedging coverage. The investor is protected from a breakeven point down to zero. The buyer has privileges of owning several stock possessions. He can also sell his stock on strike value before its expiration date. In this strategy, the investor is the option buyer.

Straddle This is an investment where the trader purchases both a put and a call at the same strike level, with the hopes that the straddle will make up for the premium invested. Overall, investors who are interested to learn about the binary options strategies find it very easy to trade because they can predict if you are right or wrong, when you will have a bull or a bear market and if you can trade multiple times with the same asset.


Source by B. Huebner