Foreign currency exchange is the most
volatile market and available for trading 24hours a day. Everyday there
is 3 trillion worth of currency change hand on the market. MT4 is a
trading platform for trader to buy and sell currency through a broker
account. This trading platform provides charting and programming
language. This programming which is commonly called Expert Advisor (EA).
Trader can program their winning strategy into EA and use the simulator
to back test them. Back testing will show results base on historical
currency price, which is similar to paper trading.How to get positive results on you MT4 simulator
I will explain some factors which will help the backrest results to be comparable to live result after your EA is enable on live trading account. These factors will help you in your simulation results but you have to understand that trading involve risk.
1) Adding Delay in your EA.
In the simulator, delay is not importance and serve as a pause while executing in back testing mode. But to live trading is actually waiting for price changes in the live server and serve as a delay task for trade opening at server side. The historical data is stored in smallest data of 1 minute interval and a delay of 1 or 2 minutes will help live data server to execute with similar results as back testing.
2) Choose Indicator correctly.Most common trading platform uses 1 minute (M1), 5 minutes (M5), 15 minutes (M15), 1 hour (H1), 4 hours (H4), 1 day (D1) and 1 week (W1) charts. The trading platform also have common chart indicator like Simple Moving Average (SMA), Exponential Moving Average (EMA), Common Channel Indicator (CCI), Relative Stochastic Indicator (RSI) and Bollinger Band (BB). By experiences, choosing a chart time frame of M15 or H1 is idea as this can effective project the trend of the currency in the next few hours to few days. Using of Open, Close, High and Low values of M15 or H1 will yield better results thus closing the difference between Demo and Live trading.
3) 5 to 8 pips of additional stop loss.
Most broker provides a Bid-Ask difference (Slippage) of 2 to 5 pips depending on the currency pair. This Bid-Ask is the buy and sell difference when you execute trades. Many of the EA does not include this slippage and thus product very different results when trading live account. Base on my experiences, you have to put in minimum 30 pips additional to your stoploss. This is because during outbreak of news, the currency slippage may increase up to 20 or 25 pips, and cause many unexpected losses to your live account.
You always have to back test your strategy again when includes the above factor into your EA and review the results. Many good strategies is fine tune to provide maximum results in all trading condition. You can back test using various parameter and different indicator. The results produce will vary with different stop loss and delay.
Finally, the execution speed and fulfilling of trade orders by the live server are also import to yield positive trading results. Always choose a popular trading partner, start live trading after you tried demo trading with positive winning results.
http://www.evancarmichael.com/Business-Financing/7136/How-to-get-positive-results-on-you-MT4-simulator.html
This currency trading book provides readers with real, practical information on how to trade the foreign exchange market effectively. It begins by covering introductory information on the forex market, including basic trading mechanics and the benefits of forex trading, and then goes on to describe specific currency trading methods and skills in step-by-step detail. This includes highly practical information on technical and fundamental analysis, risk and money management, and powerful forex trading strategies. These strategies have proven extremely effective in helping traders play the forex game to win.
JAMES CHEN, CTA, CMT (Montville, NJ) is Chief Technical Strategist at FX Solutions, a leading foreign exchange broker. An expert on forex trading and technical analysis, he is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT). Mr. Chen writes daily currency analysis, leads forex trading seminars, and has authored numerous articles on currency trading strategy and technical analysis for major financial publications. These include Forbes.com, Futures Magazine, Technical Analysis of Stocks and Commodities Magazine, and Stocks, Futures and Options (SFO) Magazine.
Editorial Reviews
Review
"Many customers say Essentials is an "excellent" forex trading resource." (TradersPressWeekly.com, 8/18/10)"…is a concise, easily digested snapshot of the currency market. It is a solid introduction to a trading specialty and probably a better fit for investors already well versed in stocks or futures and looking for a new market opportunity. Chen's edition is a Forex 101, a helpful base that is likely to encourage investors to pursue further study." (SFO Magazine, June 2009)
"…has written this guide to trading in the foreign exchange (forex) market for both novices and experienced professionals. The author explains the fundamental mechanics of the forex markets before launching into the various strategies and insights that have been proven successful in the field." (Book News, May 2009)
"The book is very well suited to the novice trader. The primer on technical analysis offers a great review for CMT candidates. More experienced traders in stocks, bonds, or commodities will benefit from the book's comprehensive explanation of the mechanics in the market. (mta.org (market technician's association), April 28th, 2009)
"Chen's book is the perfect source of knowledge for those who haven't ever traded currencies. Clearly explained, Chen's easy to read style show that he knows what professional currency trading is, focusing on the important aspects that every trader should know. The book covers all important Forex trading related topics." (fxstreet.com, March 11, 2009)
Essentials of Foreign Exchange Trading (Essentials Series) Click here to read amazon customer reviews and rating
The guide for reading long-term trends in the foreign currency market
To thrive in the marketplace traders must anticipate, enter, and stay with trends in the foreign exchange market.
In
this much-needed guide top forex, expert Greg Michalowski clearly
explains the attributes of successful traders, and shows how traders can
set themselves up for success by drafting an explicit mission statement
and game plan. The book also contains the tools and techniques traders
need to read the markets and identify when a market is in a trend.
Michalowski shows traders how to enter an emerging trend, how to manage
the position, and how to exit the position most effectively.
- Includes the technical tools needed to invest in the foreign exchange market: moving averages, trendlines, and Fibonacci levels
- Shows how to identify a trend and stick with the trend through its duration
- Written by Greg Michalowski who was cited by SmartMoney magazine as a "go to" source for making money moves
With this book,
Michalowski offers an important resource for identifying and riding out
long-term trends in the volatile foreign currency.
Editorial Reviews
From the Inside Flap
Making money while limiting risk is something every good trader
strives to do. But in order to achieve this goal you need a firm
understanding of financial markets, as well as the tools that will allow
you to effectively apply sound trading strategies in them.
Nobody understands this better than author Greg Michalowski—a market veteran who has spent the last ten years with retail forex brokerage company FXDD—and now, with Attacking Currency Trends, he shares his experience in this field with you. Following a step-by-step approach and progressing in a logical manner, this practical guide will help swing trading results in your favor by showing you how to better anticipate and attack the trend in currencies.
Divided into two comprehensive parts, this reliable resource opens with a detailed discussion of how to build a solid foundation for your currency trading. Here, you'll become familiar with the attributes of all successful traders and discover the essential characteristics of retail currency traders. Along the way, you'll also be introduced to specific elements that will allow you to excel in attacking forex trends—namely a mission statement, a game plan, and rules.
After explaining how to develop a solid foundation, the book transitions into the technical tools and strategies used to anticipate and manage forex trends, define risk, and control fear. You'll gain valuable insights into three main charting tools—moving averages, trend lines and remembered lines, and Fibonacci retracements—and learn why successful currency traders look at short-, intermediate-, and long-term time periods equally and trade using all three. Relevant examples are also included, highlighting how trading does not always have to be complicated.
Success in currency trading, as in any business, is based on building the right foundation and using the proper tools. Combining his years of trading experience with his knowledge of retail traders and the nuances of the currency market, Greg Michalowski has created an accessible trading guide that will help you minimize risk, keep fear in check, and capture consistent profits in today's dynamic currency market.
Nobody understands this better than author Greg Michalowski—a market veteran who has spent the last ten years with retail forex brokerage company FXDD—and now, with Attacking Currency Trends, he shares his experience in this field with you. Following a step-by-step approach and progressing in a logical manner, this practical guide will help swing trading results in your favor by showing you how to better anticipate and attack the trend in currencies.
Divided into two comprehensive parts, this reliable resource opens with a detailed discussion of how to build a solid foundation for your currency trading. Here, you'll become familiar with the attributes of all successful traders and discover the essential characteristics of retail currency traders. Along the way, you'll also be introduced to specific elements that will allow you to excel in attacking forex trends—namely a mission statement, a game plan, and rules.
After explaining how to develop a solid foundation, the book transitions into the technical tools and strategies used to anticipate and manage forex trends, define risk, and control fear. You'll gain valuable insights into three main charting tools—moving averages, trend lines and remembered lines, and Fibonacci retracements—and learn why successful currency traders look at short-, intermediate-, and long-term time periods equally and trade using all three. Relevant examples are also included, highlighting how trading does not always have to be complicated.
Success in currency trading, as in any business, is based on building the right foundation and using the proper tools. Combining his years of trading experience with his knowledge of retail traders and the nuances of the currency market, Greg Michalowski has created an accessible trading guide that will help you minimize risk, keep fear in check, and capture consistent profits in today's dynamic currency market.
From the Back Cover
Praise for ATTACKING CURRENCY TRENDS
"Greg has put together a comprehensive road map for traders, constructing a sound,logical trading methodology from start to finish. This book succeeds in getting the reader to think and act like a professional currency trader. Trading is a serious business and requires serious planning—and that's exactly what you'll get with Attacking Currency Trends."—Ed Ponsi, Author of Forex Patterns and Probabilities
"Although Greg admits having a true risk phobia, it's evident he possesses the skills not only to capitalize in the currency market, but to transmit his original and yet simple trading approach. A myriad of illustrated examples and clues throughout the text support his educational forte. A market profile explanation right at the start of a forex book is indeed an excellent conceptual backbone readers will appreciate."—Francesc Riverola, CEO and Founder, FXstreet.com
"Attacking Currency Trends provides a simple and logical approach to trading forex that will help any trader make better decisions about when and how to trade. Greg's rules for trading forex trends will be especially helpful to traders looking for a disciplined approachto this massive market. Armed with this information, rookie and veteran traders alike will have the confidence needed to profit from opportunities found on —and off—their charts."—Tim Bourquin, TraderInterviews.com
"Greg Michalowski's Attacking Currency Trends not only provides in-depth coverage of how to anticipate and attack trends in the battle to successfully trade currencies, Greg also empowers traders to be proactive and protect themselves by having a trading game plan with guidelines. This is a must-read for retail traders new to FX and those looking to develop further as successful market players."—Julie Sinha, broadcaster, ForexTV
"I love the down-to-earth simplicity of this book. Attacking Currency Trends puts the truth of effective trading into a format that is executable and understandable. This book will instantly become a must-have reference work for the retail trader."—Scott Cisco, co-founder and President, EuodooTrading.com
"Greg has pulled from his vast experience in currency markets and crafted a book that will lead the retail trader from understanding to successful action. He provides a rich set of tools here and clearly organizes and communicates them. Very nicely done."—Dr. Phil Pearlman, Executive Editor, StockTwits
"Greg has put together a comprehensive road map for traders, constructing a sound,logical trading methodology from start to finish. This book succeeds in getting the reader to think and act like a professional currency trader. Trading is a serious business and requires serious planning—and that's exactly what you'll get with Attacking Currency Trends."—Ed Ponsi, Author of Forex Patterns and Probabilities
"Although Greg admits having a true risk phobia, it's evident he possesses the skills not only to capitalize in the currency market, but to transmit his original and yet simple trading approach. A myriad of illustrated examples and clues throughout the text support his educational forte. A market profile explanation right at the start of a forex book is indeed an excellent conceptual backbone readers will appreciate."—Francesc Riverola, CEO and Founder, FXstreet.com
"Attacking Currency Trends provides a simple and logical approach to trading forex that will help any trader make better decisions about when and how to trade. Greg's rules for trading forex trends will be especially helpful to traders looking for a disciplined approachto this massive market. Armed with this information, rookie and veteran traders alike will have the confidence needed to profit from opportunities found on —and off—their charts."—Tim Bourquin, TraderInterviews.com
"Greg Michalowski's Attacking Currency Trends not only provides in-depth coverage of how to anticipate and attack trends in the battle to successfully trade currencies, Greg also empowers traders to be proactive and protect themselves by having a trading game plan with guidelines. This is a must-read for retail traders new to FX and those looking to develop further as successful market players."—Julie Sinha, broadcaster, ForexTV
"I love the down-to-earth simplicity of this book. Attacking Currency Trends puts the truth of effective trading into a format that is executable and understandable. This book will instantly become a must-have reference work for the retail trader."—Scott Cisco, co-founder and President, EuodooTrading.com
"Greg has pulled from his vast experience in currency markets and crafted a book that will lead the retail trader from understanding to successful action. He provides a rich set of tools here and clearly organizes and communicates them. Very nicely done."—Dr. Phil Pearlman, Executive Editor, StockTwits
About the Author
Greg Michalowski is the chief currency and trading analyst for
FXDD. Prior to joining FXDD, he was an assistant vice president and
trader in the treasury / funding area with Citibank in New York, a vice
president and interest rate derivatives trader at Citibank in London,
and a vice president and trader in the banks funding department at
Credit Suisse First Boston. Michalowski maintains a daily market
commentary and currency analysis website at fxdd.com.His market comments
are quoted in the financial pressby Bloomberg.com, Reuters, and the
Wall Street Journal,and he has written for various print and online
trading publications, including eForex, Equities
magazine,forexstreet.com, stocktwits.com, and forexfactory.com.His
twitter site, twitter.com/gregmikefx, was one of thirteen cited by
SmartMoney magazine as a "go to" source for making money moves.
Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market (Wiley Trading) Click here to read amazon customer reviews and rating
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