Archive for forex strategies

Forex Trading Tips: Lever Factor

Lever Factor
Sheik Zaid road - the main artery of Dubai is dotted on both sides with skyscraper hotels, modern office buildings and luxury condominiums of fifty stories or higher. To an American it looks much like any twelve lane highway in Orange County transplanted into New York or downtown Los Angeles [...]

Forex Trading Tips:Mark This - Why Trading is Harder Than Investing

Mark This - Why Trading is Harder Than Investing
When I was starting out in the business we once had a customer who was long about a million euros on a $50,000 account. The guy had held his position for a long time but by accident he hit the sell button one day and called [...]

Forex Trading Tips: Optionality

Optionality
My latest favorite read is a book called the Flaw of Averages: Why We Underestimate Risk in the Face of Uncertainty by Sam L Savage in which Mr. Savage tackles such mind numbingly complex statistical ideas as covariance, correlation, null hypothesis, the p test and makes them not only understandable but completely relevant to our [...]

Forex Trading Tips: Rules of the Trade?

Rules of the Trade?
Joe Ross posted this clip on Elite Trader as the markets closed on Friday and I thought it was interesting enough to deconstruct. My responses are in italics.

1. Focus on markets, trading vehicles (i.e., equities, futures, options, spreads), strategies, and time frames that are comfortable for you and that suit your personality. The [...]

Forex Trading Tips - Things My Algo Taught Me

Things My Algo Taught Me
This week I finally automated my scalping strategy. Yes it uses Bollinger bands. Yes it’s a reversion to the mean idea. No I won’t reveal the specifics, so please don’t ask me. What I do want to talk about, however, is the idea of algo trading itself. For a purely discretionary [...]

Forex Trading Tips: Four Ways To Beat The Market - The Tao of Trading

Four Ways To Beat The Market - The Tao of Trading
Can you beat the market? Many academics will tell you no. The markets are just too efficient in the long run. Those who appear to be winning are simply lucky fools who will get their comeuppance eventually. Are the efficient theory proponents [...]

Forex Trading Tips: Staying Alive

Staying Alive
This week K and I attended the Bloomberg FX 09 conference and aside from getting a tremendous ego boost when we found out that that we have an enthusiastic following on the institutional as well as the retail side, we also got to spend the day with some of the smartest currency [...]

Forex Trading Tips: The Risk of Uncertainty

The Risk of Uncertainty
“It has long been argued that investment returns were a reward for taking risks, “ writes Justin Fox in his new book The Myth of A Rational Market Justin Fox which deals with the history of the efficient market theory and the birth of the quantitative finance movement.

“The risk [...]

Forex Trading Tips: Context is Everything

Context is Everything
For a guy who wrote a book on technical analysis, I happen to be one of its biggest skeptics. In fact one of my favorite chapters in my own book is called Pattern and Anti Patterns in which I meticulously destroy most of the scared myths about double tops, triangles and [...]

Forex Trading Tips: Luck, Gambling and Trading

Luck, Gambling and Trading
This week we were extraordinarily lucky. On Tuesday we went long EUR/GBP on the assumption that Euro data would be better that forecast and UK data would be worse only to see the results contradict us on both sides of the cross. So there I was sitting dejected in [...]