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Forex Trading Laboratory

What Do We All Think About the New Forex Rules?

Now that the CFTC has finally weighed in on the proposal to reduce the leverage allowed in forex I'm curious what you all think?

Here is a summary from them:

These go into effect on October 18, 2010 so about 6 week or so.

MACD Dots Method?

A few days ago I happen to come across a video by Phil McGrew talking about his MACD Dot method. I understood most of it, but I was wondering if anyone here knows how the Dot signal filters works? He said on the MACD histogram that it has to be a certain hight and and the rate of change - roll over of the histogram or market has be a certain amount or how fast it happens, before a Dot appears on the charts. I am not really sure about this.
So I was wondering if anyone happens to know the part about the rate of change and knowing when a Dot is placed on the chart? How is that calculated ect.
Any info about this would be great.


Oracle Trader - Experiences/free Software Uses?

I'm surely not the only one to have received copious emails recently about Oracle Trader (see for their promo). This is effectively a guided news announcement trade service. They have a piece of software that gives a calendar of likely FX data announcement trades, and then flags up buy/sell recommendations based on their opinions as to tradeable divergence levels between expected and real. It can automate buy/sell signals, apparently by setting up to shadow those buttons on your trading platform.

Retail Forex Platform

I know this question has been asked millions of times but I have been away for a while (making money working) and now I want to risk some in FX. I am looking for a retial broker who is not scam (difficult I know) has a user-friendly platform that does not freeze (by chance or intentionally) during fast markets. Other than IB. Thanks

Some Newbie Question for Forex.......

I was thinking of doing some night time trading on the forex EUR/USD and I had a few math questions as some others as well. If anyone has patients for me that is:confused:............

1. I hear that I can leverage with some brokers up to 400 times capital, is this true?
2. I have $5,000 and really only want to do 50 times capital, is this a good idea or should I use more/less?
3. I believe that I am good enough at paper trading to predict 0.001 price moves, should I be trying to get better predicting bigger moves, and how big?
4. What brokers that are reputable should I use for forex?

Where would you recommend a newbie like me to start if I want to do day/night trading?

Thanks in advance.

FX Training - Let's Share the Cost

Hello Everyone

I was recently referred to a man here in Toronto that has been a professional FX Trader for the last 3 years full time.

I actually went over to his home and met his family and saw his workstation and saw his monthly PnL Statements.

With a 20,000 FX account he has averaged $4000 per month for the last 3 years pretty consistently.

He was referred to me by a personal friend that took his training 3 months ago and was thrilled with the results.

I worked out a deal with him for training and I asked him if he would mind if I found a partner to share the cost with and he said he didn't mind at all, so long as I teach them separately from our time.

Higher Lows Lower Highs

Markets go from highs to lows with bounces along the way. These retracements provide good opportunites to enter into a move with a relatively small stop loss. A good trader said to me that the first retracement is the best trade, ie the first higher low/lower high.

I have previously used indi's but my best results come trading naked so I'm back to that.

There are 3 trades to consider:

1)Higher lows and lower highs from 5 min can be taken at extremes (also known as 1 2 3 tops/bottoms) and are great trades. I want to see some supporting information from the 15 min chart ie a nice reversal candle and for the turn to be at a key level ie pivot, round number etc etc.

Carry Trade

Do you think that it Is possible to build a portfolio that using most or all of the currency pairs in the world it counteracts the net movement of the whole currency market in a way that produces zero losses from those changes but it gives you a nice net 0.20% or higher for the carry trade interest? I mean, I think it is possible and a 0.20% riskless annual yield is very nice in the long run considering a 100+ leverage, thats a 20% to 40% return on your money, plus the compounding. The problem is how can you prove it to be possible or not, we are talking about a lot of pairs and the complex dynamics between them, plus how to deal whit the changes in interest.

EURJPY Trading

I was going to put this in the GU thread but felt it was better served with it's very own dedicated thread.

Post anything you want about the EJ, anything at all for further discussion.

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