Patterns of trend continuation

There are many different elements of the analysis of financial assets at the trader’s disposal. This can be both summary information fundamental data and computer models for predicting the future value of the asset in the market. Also, indicators, trading robots, and patterns can join these groups. Today we will talk about the last element.

Patterns are market patterns that fairly accurately reflect the subsequent dynamics of an asset based on the previously formed similar price combinations. To put it simply, the pattern is a combination of price bars that allows the fix api trader to learn the future direction of the movement. The patterns may include both the trend continuation and reversal. In fact, the list of patterns counts more than a hundred different combinations. But I propose not to scatter and start studying the key ones, which indicate exactly the trend continuation.

Patterns of trend continuation:

  • Flag
  • Pennant
  • Wedge
  • Rectangle

Let’s take a closer look at each of them.

Flag

This pattern is formed with the help of a pulse and a gradual even set of positions, as well as growing volumes at the moment of the impulse and a decrease in them after growth/fall. According to this pattern (http://forexrobotshub.com/2017/10/05/technical-analysis/ ), one should expect an identical impulse after a set of positions. Therefore, trading according to this technical element should be towards the upper border of the flag with the Stop loss level behind the lower limit and take profit to be set in the same number of points as earlier the impulse size.

Pennant

This pattern is formed just like a flag – there must be a significant impulse that will accompany the subsequent set of positions. The essence of trading methodology is exactly the same – to set SL beyond the pennant’s bottom and TP in the same number of points as the impulse. The difference is that the pennant is not formed by a uniform set of positions, but in the form of a triangle. If the impulse was on H1 and the pennant began to form, go to M15 and if you see the technical figure of the triangle, then you can expect a “shot” in the direction of the impulse. Also, here is the time of entering the market. If we set a pending order on the flag above the top or bottom border, then according to the pennant, it is fashionable to put immediately behind the triangle boundary, which increases the profit potential from trading on the fix api forex.

Wedge

A newly identical figure, which works according to the methods of work of the previous two. There is also a difference here. Wedge, after the impulse, demonstrates corrective movement in the form of the channel as well. Such a rollback can occur in more than 50% of the impulse itself. Only after that, it will continue the strong movement towards the impulse.

Rectangle

This pattern is different from the previous three and is a lateral channel with clearly defined boundaries. There are two types of trading at the same time – in the channel and in the breakdown. To understand where the breakdown will take place, you should look at the whole trend or on the older timeframe.

Trend continuation figures are a reliable source of information that indicate to the manager in which direction it is necessary to open trading positions. The patterns that I have given above are ideal for any trading strategy and can become an additional trading signal (https://1sforexsignals.com/ ) for both an additional transaction opening or exit from the market if the trend continuation pattern does not go in your direction.

I also use these patterns in my fix api trading and they serve me as additional filters to determine the immediate goals of the current move. I strongly recommend that you study this element for a greater reliability and efficiency of the trading strategy.

Why should a trader participate in the networking?

The modern world is completely tied to people’s communications, and the modern technologies have greatly simplified this process. We solve our legal issues with the help of familiar lawyers, consult with the family doctors or get advice on investing from familiar financiers who work in investment companies. All this communication and mutual assistance can be presented with just one term – networking.

Networking is an effective interaction of a certain group of people who share the same interests and goals. Networking helps people more quickly find the desired product or service, because they make use of communication channels, and similar groups are created specifically for this purpose. But how and why fix api trader should participate in the networking?

The trader’s benefit from the condition in this circle of people will be based on the assumption that other managers will also be included in this group, and this will at least give a professional opinion about the market, allow to find an investor or even become an investor for another trader to diversify your capital. In fact, networking is an effective tool for understanding the current trend in the market. Today, it is enough to go to a certain resource and start a conversation for this or that financial asset of the fix api forex market. After that, you will receive a full answer to the question, as well as the forecast of other market participants.

What resources can you use to communicate with the other traders?

Forums

This is perhaps the very first type of communication of traders on the Internet and today these platforms are simply a huge base of knowledge for any novice exchange speculator. It seems to me that absolutely all the topics were discussed at the forums. In addition to the fact that you have the opportunity to track the trading or forecasts of the leading fix api traders, you can ask questions that you are interested in. For example, if you have a losing position, then you can create a topic and ask other market participants or those who also trade with this instrument about their forecast of the future movement of the financial asset.

Blogs

If you have a trader, whose level you would like to reach, then you can subscribe to his opinion and be always up to date on all relevant information. Moreover, you can create your own personal blog and accumulate an audience around you. In this case, networking will be the most effective. In addition to the fact that you can find out the opinion of other players, you can demonstrate your professionalism to attract additional funds in your capital.

Social networks

The modern world provides modern solutions. Today, most of the everyday issues are solved directly in the social networks. It will be enough to publish a post on your page or in a group related to financial markets and you will find a huge number of people who want to participate in this discussion.

There are also platforms that allow you not only to share your opinions on the market, but also to demonstrate the results of your fix api trading. For example, fxsocialnet (https://fxsocialnet.com/ ) allows you to describe your algorithm and connect the tracking of trading statistics. Moreover, if the trading is conducted with the help of a trading robot (http://forexrobots.in/2017/05/30/parameters-trading-robot/ ), it is possible to purchase software for automatic trading based on trading on a real account.

As you can see, the networking for traders allows you to solve a significant part of the issues thanks to communication. I strongly encourage you to participate as much as possible in discussions and ask questions if you have just started your way in the fix api forex. This will help you accelerate the study of the market’s psychology, as well as all the key trends. For those that are already professional traders, networking will help them create a name and recognition, which will increase their chances for getting a capital under management.

Trading signals based on the trend technical indicators

In order to analyze the financial asset, each trader has a set of effective trading tools that allow you to search for the most profitable moment of entering the market, as well as to exit from it. This toolkit can consist of anything: from levels up to analysis of fundamental data. Every fix api trader should know about each of them, but choose only one.

Today, I suggest that you familiarize yourself with one of the most popular trading methods of market analysis, which is based on technical indicators, namely trend ones.

We all know the good old saying “the trend is your friend”. But how to determine in which phase is the market currently? The search for an answer to this question aims at finding the end of the trend and enter at its very beginning. The definition of local extremes on the graph, the Elliott wave theory, and of course, the trend indicators can help you in this.

Trend indicators are a group of technical elements for market analysis that are based on the immediate determination of the current quotes relative to their historical movement in order to compare current values ​​with past data. This approach shows you how exactly this or that situation developed for this particular financial asset and allows you to open a deal when certain signals are reached.

As we understand, the trend indicators indicate the fact of confirmation of the formed movement. But what signals can they bring to us? After all, if you trade based on fact, you lose a significant portion of the probable profit on the fix api forex market.

For this, there are additional elements that can be treated as a signal to change the trend. Thus, I single out 3 possible trading signals that can be obtained with technical trend indicators:

  1. Crossing the lines of indicators. In order to use this trading signal, you must use two different indicators or the same one, but at different time intervals. For example, if you are trading with the Moving Average (http://www.investopedia.com/terms/m/movingaverage.asp ), which has a period of 20, add this technical indicator with a period of 50. Then, when the line with MA 20 will cross the MA 50 line from top to bottom, this will indicate a trading signal to sales, as there is a decline in asset value and dynamics with high probability may continue further. If you use the same indicator, several lines are already laid in technical tools like Ichimoku cloud or ADX, which are also able to intersect and demonstrate the signal to the fix api trader.
  2. Crossing the quotes of the technical indicator line, namely Moving Average. This signal works analogically to the previous one. But the only difference is that the signal is taken into account not at the intersection of the indicator lines, but directly at the asset price. Moving Average technical indicator is often used to search for this signal. If quotes cross MA from the bottom to the top and are fixed above the line, then this indicates to a new direction of the trend.
  3. Direction of the technical indicator value. You can also take into account the direct value of the indicator and its dynamics. Personally, I use this method. When the value of Ichimoku or the same MA grows, it is a signal to the fact that a trend is formed in the market. And even there may be a situation in which the quotes have broken through the value of the indicator, and it is growing. In this case, I interpret this fact as a false breakdown. But if there was a breakdown and the MA value began to demonstrate the reverse dynamics, then this is a signal to the opening of trading positions.

These trading signals (https://1sforexsignals.com/ ) are widely used by most traders in the fix api forex foreign exchange market and I hope that you were able to emphasize useful points for yourself.

 

Overview of the arbitration trading robot

Every year, more and more algorithmic trading strategies appear on the financial market, which are capable of trading in the financial market without additional involvement of the trader. Will there be any robots that control in the future the financial market? No one knows. But this advantage should be used today. Trading robots allow us to automate our process of analyzing the financial assets and searching for trading signals once and for all, so that in the future you will not have to work for the trading system, instead it will work for you. Surely, every fix api trader has repeatedly asked himself this question. I urge everyone not only to think, but to start acting in this direction.

Today, I will consider a trading robot, which is based on one of the most popular trading principles, namely the arbitrage principle – http://www.investopedia.com/terms/a/arbitrage.asp.

If anyone has not encountered this method, fix api arbitrage consists in committing speculative trading operations, which are based on the principle of discrepancies in price quotes between the same financial asset, but on different stock exchanges. And even in the forex market, this approach is already being applied, thanks to fix apiforex brokers, who set mark-ups on their assets and thereby create arbitrage situations themselves.

Returning to the robot, we will analyze this software – http://forexzzz.com/product/zzz-latency-arbitrage-mt4-advisor/.

This robot is based on the principle of unilateral arbitration and is a separate program that connects to your trading account on the fix api MT4trading terminal. Also, to reconcile the data, in order to reveal the arbitration situation, the program suggests to connect to another trading account, which will be used to compare their values. Moreover, the trading robot allows you to trade via fix api, i.e. a financial protocol through which you will compare data based on the most relevant information on the market.

Just imagine, the robot simultaneously conducts an analysis of the asset value on a financial protocol, and simultaneously it takes into account information on the trading terminal. As soon as there is a small discrepancy, which can be as low as 3-5 points, immediately a trading operation towards a delay is committed. Is it possible for a fix api trader to work this way during the entire trading session? I doubt it.

In order to understand the principle of the trading robot in more detail, I propose you to consider an example:

The value of the EURGBP currency pair in a fast broker is 1.2220, and at a slower one is 1.2225. As you can see, the difference was 5 points. Let it be with this discrepancy that the trading robot makes a deal. The goal may also be fixing for the price of a faster broker, or several points from the price of opening. Thus, this discrepancy is 5 points and is the yield for the algorithm. Then, the robot according to the fix api Latency Arbitragestrategy will sell the currency pair from the “slow” broker and fix the result at the price of the “fast” broker at the time of opening or some fixed value.

Despite the simplicity of the trading algorithm, it also has certain drawbacks. So fix api Latency Arbitrage is very easy to identify by the brokerage companies that also have robots to search for this kind of trading. After all, deals are concluded for less than a second and are committed by a large number. Thus, the broker can affect the trading due to an additional spread or delays. However, even today, algorithms are also being created that allow to bypass this moment and “mask” the results of the robot’s work.

I strongly recommend that everyone start automating their trading process or adding trading robots to trade on your investment capital. This will allow you to diversify the risks and improve the overall result of profitability.

 

What trading robots allow you to conduct stable trading

Probably, the modern trader has an automatic tool with which he conducts the analysis of a financial asset, which also allows him to make a qualitative forecast of further trends and prospects of the currency pair in the fix apiforex market. In the world of automatic technologies, each process lends to algorithmization and trading is not an exception. There are more and more algorithmic strategies on the market, as well as ready-made trading robots that are capable of trading without the direct participation of an exchange speculator.

A trading robot is a set of rules and principles of a trading strategy into a single program code that allows you to withdraw profits from the market on the basis of the work logic. Today, robots are everywhere. You can meet them on the Internet, on the mql service, and also order your own trading system for development. However, such an abundance does not guarantee their quality, therefore most automatic trading strategies are nothing more than simply non-working algorithms.

We all know that not all strategiesallow you to earn a stable profit in the market. So is the case with trading robots, which are written according to these methods (

http://www.forexrobotshub.com/). To avoid buying low-quality software for fix apitrading, I recommend you the following parameters, which you should pay attention to when choosing a trading robot, as well as a list of working algorithmized trading strategies.

To select the most optimal and working algorithm, you should pay attention to the following points:

  • Statistics for the last period. Ask the developer for test results on different currency pairs, but take into account when the test was made. You can require that the developer make a test for the current moment, and you would have reliable data.
  • Financial indicators of trading. On the basis of statistics, thus profitability, we should analyze the trading process. The answer to this question will help you find the indicators, namely: drawdown, profit factor, recovery factor, Sharpe ratio, the profitable and unprofitable trades ratio.
  • A list of current clients and results on real accounts. If the last two points suit you, then you need to make sure of their reliability by querying the results on a real trading account or the trading results with current customers. This will allow you to understand whether the software is purchased and to know what to expect after placing your capital.
  • Support. An important factor is the product support offered by the developer. So, if there are new versions of the robot, based on the current market conditions, you will always receive the latest software.

If you pay attention to the list of 4 points, about which I wrote above, this will allow you to find a working trading robot today. But if you are looking for software for passive earnings, then to this list, I also recommend you to pay attention to the principles and rules of committing trading operations that are set into the robot. To the working data elements, I include robots written according to the following trading strategies:

    • Scalping algorithms. These trading robots can be based on virtually any principle and technique. However, due to the large number of speculative transactions, the risk is also controlled. As we know, the main thing is to save the capital, and only then to multiply it.
    • Grid robots. This approach allows you to earn both on trend, and lateral movements of the market. If you can configure the robot to optimally comply with the grid parameters, then it will allow you to take out a stable profit from the market. The main thing is not to use the principle of martingale
  • Fix api arbitration algorithmic strategies. Due to the speculative principle, it is also possible to conduct risk-free trading. Opening trading transactions based on exchange rate differences allows the robot to surely receive several profit points, and a large number of these transactions turn these several points into more than 30% of the monthly yield (http://forexzzz.com/product/forex-zzz-lock-arbitrage/).

Taking into account the current material, I hope you can pick up a quality trading robot in your fix api trading to stabilize the result in the financial market.

 

Advantages of robots over the manual trading

Most exchange speculators like the process of selecting financial assets for trading: the process in which they can conduct a qualitative analysis and predict the future movement of assets. However, today this task is handled perfectly by trading robots, and in order to compete with them, a fix api trader must jump above his head.

Considering the fact that the number of algorithmic trade transactions grows every year, we can conclude that the absolute majority of participants in the financial market felt the advantages of this trading type. And to such participants, it is possible to attribute both professional players in the form of large investment companies, and beginners who use simple algorithms, written according to their strategy for fix api forex.

The popularity of the trading robots is determined by their basic advantages:

  1. Ability to conduct continuous trading. This is one of the first advantages that all traders consider. Surely, you have often regretted the missed opportunity or the omission of a profitable trading signal. However, there are no such situations with the trading robot. A trading robot is a program that will work until it is turned off by you. This makes it possible to use it 24 hours a day, 5 days a week. Thanks to the VPS servers, the robot connects to the trading account and conducts trading, not missing a single signal.
  2. Conduct a simultaneous analysis of several financial assets. The trading robot is able to update its data depending on the specified timeframe. And if there is a signal simultaneously on several assets, the robot can open a trading operation. All because the robot will trade on those assets, on which it is connected or which are written in its program code. This gives a multi-functional advantage and the ability to expand the list of tradable assets and simultaneously monitor the current situation for them.
  3. With their help, speculative algorithms and HFT trading are implemented. Only with the help of trading robots the result of HFT algorithms is achieved, and without them some trading strategies are completely unrealistic. It is very difficult for the trader to implement a scalping algorithm, not to speak about fix api arbitration (http://forexzzz.com/product/zzz-latency-arbitrage-mt4-advisor/ ), in which it is necessary to simultaneously track the same asset at different platforms in real time. But the robot is able to deal with these tasks perfectly.
  4. The possibility of trading through the fix api. The robots have an opportunity to connect not to the brokerage company’s servers, but to the quotations of the liquidity provider, which allows improving the trading result. Thus, the robot will receive more accurate data, which increases the reliability and accuracy of the trade signals (http://forexrobots.in/2017/06/21/fix-api/)
  5. The absence of a psychological factor. The robot does not have emotions, and if it went into a drawdown, it will not make a pressure on it. After all, the robot perceives these data as just numbers. Nothing more, nothing less. That is why the robot can quickly restore its result and continue to trade steadily.
  6. Trading, according to the strategy logic. Agree that we sometimes go around our strategy and it does not always bring the desired result, does it? The robot will act according to the specified algorithms and will follow only those scenarios that are embedded in the program code. That’s why there should not be unexpected results, because if you know the benchmark of profitability and internal parameters of the robot, it will ensure its reliability and stability.

The above advantages of trading robots over the manual trading make this tool a key element for successful fix api trading. I recommend that you think about automation of your trading process. It does not matter whether it’s a robot or a trading panel. The main thing is to take a step towards the more productive trading.

How to use Moving Average in trading

Surely, each of you has several working tools used in everyday trading. These can be just useful sources of information that you are studying before the start of the trading day, as well as various auxiliary filters that make your trading strategy for the fix apiforex market more accurate. Among the list of these tools, I would also highlight the technical indicator Moving Average. Some people use it within their strategy, but for me this indicator is a filter of market movement and price noise. But despite all this, a number of traders do not correctly interpret this technical indicator. Therefore, I propose to go into more details in the specifics of the most popular technical indicator on the financial market.

Everyone knows that the Moving Average is one of the simplest technical indicators (http://forexrobotshub.com/2017/05/19/trend-indicators/), as it is based on a simple formula that calculates the average price for n past bars. In fact, this is a line on the chart, which displays exactly the average value of the price. No more, no less. The popularity of this indicator caused the appearance of several more variations of this indicator. Thus, there are 3 types of Moving Average:

  • Simple Moving Average – a simple moving average, which is calculated by dividing the cost of n bars by their number. Thus, we obtain the average value.
  • Exponential Moving Average – the exponential average method is based more on the weight given to past prices, hence this indicator is more responsive to the current position of the quotes.
  • Smoothed Moving Average – gives weight to the current prices depending on the selected period. For example, if you use SmMA with a period of 5, the current price will be given to the fivefold weight, the previous candle fourfold, and so on (https://mahifx.com/mfxtrade/indicators/smoothed-moving-average-smma).

Personally, for me it does not matter what kind to use, so I take the most standard one –the simplest one. After all, for me the period is important, and if I take a long period, then what I do, then we will not find a special difference between each of these kinds.

Then, how should you use MA in fix api trading?

Yes, of course, you need to take into account the position of prices by the ratio to the technical indicator. And if the quotes are higher than MA, then this indicates an uptrend. But why does no one look at MA itself? To begin with, you need to understand that there are some methods for determining the breakout of quotations of the indicator itself. If the value of an asset on the fix apiforex market breaks the MA line from the top down, while the MA ​​itself is moving downwards, is it worth considering this trading signal as a fact of a new movement? My answer is “no” and this is a false breakdown. I do not recommend entering positions with this signal. But if the quotes of the asset declined, then moved into a corrective weak movement up. Thus. MA also starts to gradually change its direction and move into a lateral trend. Then, when the quotes break through the MA and the indicator itself starts to grow, this will be the confirmatory filter for opening the trading position.

A similar situation occurs when the quotes decrease and break through MA, which is growing. This tells us that the breakdown is false. But if quotes decrease and break through MA, which is also aimed downwards, then it is worth looking for a point for opening short positions in the fixapi forex market.

In this simple rule, the essence of using the technical indicator Moving Average is laid. Do not forget to look not only at the price itself, but also on auxiliary filters and the position of technical indicators. This approach will allow you to save capital and filter out false signals.

The main tools for working in the MT4trading terminal

The first steps in the financial market, after repeated reading of the professional literature and obtaining fundamental knowledge, are due to an acquaintance with the trading terminal. It is on this software that a beginner fix api trader makes his first transactions and conducts an analysis of financial assets. For most traders, this acquaintance begins with the fix api MT4 terminal.

MT4 is quite intuitive for beginners, but you need to learn how to work in it. That is why, in today’s review, I will analyze this platform. We will learn all the necessary functionality for the trader, as well as hidden moments in the work of this software.

MT4trading platform is an integrated tool for financial markets analysis, through which you can conduct both manual and algorithmic trading. The platform has its own development environment, as well as the ability to connect third-party programs for optimization of each trader, which makes it customizable for everyone.

So, let’s now analyze the key features and parameters of the MT4trading platform:

    • To start with, you should understand that MT4 is intended primarily for working in the fix apiforex market, as well as with the CFD contracts. Therefore, if your trading strategy is based on trading currency pairs, you can safely choose this software.
    • MT4 has several ways of opening trading operations, namely sell stop, buy stop, sell limit, buy limit. This allows you to flexibly approach the asset analysis and the opening of transactions.
    • Speaking about analysis, the program has a number of built-in indicators for this purpose that can be divided into trend, oscillators, volumetric, and user. But the most important thing is that you can connect your indicators, and with the help of the development environment, you can create addition to the already existing indicator. That’s why MT4 became so popular. The ability to more flexibly impose their mathematical interpretations on the chart attracted the attention of million fix api traders.
    • Interaction with the external environment. If you need quotes in current time in excel, then you can download them directly from MT4. The reverse process is also possible, when you add the history of quotes in the software.
    • Ability to test strategies directly in the trading platform (https://www.metatrader4.com/en/automated-trading/strategy-tester). There are many individual programs that a trader purchases in order to analyze the performance of a forecasting tool. But with MT4, you can analyze the historical data in the terminal itself.
    • Ability to trade using fixapi. This approach suits you if you use an algorithmic approach in your trading. Fix api will provide you more relevant and accurate data in the form of quotations, which is an important indicator for some trade robots.
    • The most important and unique in my opinion disadvantage in MetaTrader 4 is the lack of a glass of prices. This does not allow us to analyze the depth of the market, as well as the actual volumes. However, there are additional developments in the form of auxiliary scripts that solve this problem.
    • Well, one of the main advantages of this platform is a direct connection to MQL, because this resource is a MT4developer. Therefore, you can easily subscribe to the trading signals or download and install a trading robot.

MT4 trading platform allows you to conduct a quick and qualitative analysis of financial assets thanks to the individual approach to each trader. A wide list of features and analysis tools raise this platform among the rest of the software. If you are just starting to get acquainted with the financial market, then this platform is just for you.

Different types of trading software

Technologic advance and progress are increasing day by day, and every year we become witnesses of incredible changes of our world, while automation covers virtually all processes and fields. New technologies can make both our professional and daily lives much easier. And if we look at the financial market, we will notice that this field also faced dramatic changes. Many years ago FIX API trading was simply impossible without a phone and a feed, while these days we are able to use one single terminal that contains all the required information to perform trading and execute orders.

However, the technologic progress is constantly developing, and those things, which were recently made by FIX API traders in manual mode, are executed with automatic and algorithmic software these days. Today I want to tell you about such programs. You need to know products available in the market, and which software can be used to increase your trading performance.

Firstly, I want to make a list of several software solutions, which have to be used by each and every asset manager.

Main types of trading software:

– Proprietary indicators

– Process optimization scripts

– Trading panels (Signal panels)

– Trading robots

I put all items of the list by the level of their importance and priority. In other words, the higher is the item in the list, the bigger is the role of such item in trading. Now let’s look at each item of the list more closely.

Proprietary indicators

This software is based on your point of view for specific indicators. I’m not telling that you have to create your own indicators, not at all. I recommend learning basic tools ofFIX APIMT4, and only then developing or improving them. Sooner or later you will definitely make it.

There’s a lot of free software these days, and you can start your work with it. Firstly, I recommend choosing indicators, and only then trying to improve something. Your “proprietary” indicator can be based by someone’s tool installed in your terminal. This option is also considered as great one.

Process optimization scripts

The next stage is the usage of small software utilities, which allow improving the common trading operations. I am talking about scripts, which allow buying financial assets after the price closing (or closing open positions using the very same method), as well as those small tools, which can avoid FIX API Forexspreads by executing trades using bid and notask.

This category includes scripts intended to control the level of your risks. In other words, when the deposit is decreased by a predefined value, such script won’t allow executing new trades during a previously selected period in time. To tell the truth, one can use scripts to implement virtually any solutions, which will make the trading process more convenient and profitable.

Trading panels (signal panels)

In case if you already have your own indicators and scripts, you can combine them, creating a single trading panel. By doing so you will be able to use one panel that contains all the information based on your trading signals. In other words, this panel will contain recommendations about financial assets to buy and to sell. You can just execute new trades using the information from the panel. In fact, you will see your assets and trading signals. You can use the notification system in order to receive all the signals right on your mobile phone or sending alerts right to your trading terminal.

Trading robots

The final stage is to create a trading robot that includes all the items, which I described above. Development of a trading robot is the last stage of FIX API trading automation implementation (http://forexzzz.com/product/forex-zzz-lock-arbitrage/). And if we talk about the automation trading tools, you will probably think about trading robots. You are totally right. According to the statistic control unit of the USA, the majority of trading operations is executed by algorithms.

That’s why I recommend you to follow the trend and use your working algorithm to create a robot that will automate your trading. Always remember that you can start creation of such robot only when you already have a working system.

If you start using various software solutions in your trading, you will immediately improve the overall performance and profitability of your business. No doubt, in order to do so you have to use various algorithmic systems or trading robots which is well described here http://www.forexrobotshub.com/. However, I really recommend creating your own strategy and only then start the process of automation implementation. Such behavior makes it possible to understand the specific moments of the market and understand all the pitfalls of FIX API Forex market.

 

How to correctly install stop loss and take profit?

Each trader has his own trading strategy, which should regulate each action of the manager. I strongly recommend using the basic principles of creating a trading strategy to turn a chaotic approach into a system business.

The trading strategy, without fail, should consist of the following blocks:

1. Rules for determining the entry position point;

2. Rules for determining exit points from a transaction;

3. Risk and money management parameters.

In my blog, I have already written about the first and third point, so today we will analyze the second one.

It’s not a secret that there are only two exit points: with a loss or with a profit. In this issue, fix api trader experiences stop loss and take profitlevels. As I already wrote above, the trading strategy will help you understand exactly where to place these levels, which should be clearly state where to set these exit levels from the transaction. They are individual for each trader. I will help you determine the points of these zones exposure based on the key and basic rules. Thus, where they should be, in order to work correctly and safely.

Stop loss

This level allows you to limit losses in the context of a trade operation. Most traders have difficulties exactly with stop loss. I would not even say difficulties, but rather a refusal to place it in a trading operation. For some reason, many do not place stop loss in their system and over time simply lose their money and get disappointed from the fix api trading. Sometimes, you may not install take profit, but SL should present in each operation.

There are 3 types of correct stop loss placement:

  • Taking into account the risk in each transaction. With this type, the exit from the position will be implemented when the maximum percentage of loss is achieved. For example, if you have a transaction risk of 1% and a deposit of $10,000, then when the deal reaches $100, it will be closed. Thus, SL is set based on a round figure loss.
  • After triggering a turn signal or reaching the system indicator. If you have opened a position for sale but the quotes have entered the channel and all the signals have already changed, it is reasonable to close the position if the TS already points to the purchase (https://www.babypips.com/learn/forex/design-your-trading-system).
  • Behind the local highs or lows. When you have opened trading operations for sale, SL should chase a local maximum, the breakdown of which will be a signal for a trend reversal. The case is similar when there are purchases. This is a kind of analogue of the second point but it is more stable and is used by the fix api traders regardless of the system.

Take profit

As for this level, it acts in opposite proportion to the SL –it restricts profits in the context of one trade operation. I recommend to set TP for each trade operation. But there are exceptions, in which TP does not need to be put. Often, they are connected with the fact that the reason for closing position is a reverse signal or trailing stop of the opened positions.

There are also 3 Take Profit methods for setting the level:

  • As SL ratio. This is one of the most popular techniques. We know that the trader’s work is aimed at a positive mathematical expectation. If the SL to TP ratio in the working strategy is not less than 1/4, and better than 1/6 or 1/7, then the MO will be positive. So the trader opens deals with volume from risk, and the take is determined by simply multiplying by 5-6 from SL.
  • Installation under local support and resistance level. If a purchase transaction is opened, it makes sense to install the TP under the resistance level. If it is a sale, then above the support level.
  • At achievement of technical indicators or Fibo level. Everything is simple. The purpose is the level or values ​​of the technical element.

Placing these levels at opening of trading positions will allow you to save the capital. After all, the original purpose is safety of means, and only then their augmentation. If your system has a positive mathematical expectation, use these levels, and you are guaranteed to get a stable result.

Even algorithmic trading strategies for fix apiforex have the logic of exit from the market (http://forexzzz.com/product/zzz-latency-arbitrage-mt4-advisor/). Thus, those parameters in which the robot bury transactions “in plus” or “in minus.” This allows you to save funds and control risks. This is the main reason for the stability of robots. After all, they will not move these levels and “be greedy.” But the trader may do it. And if you learn to work by installing stop loss and take profit, this will allow you to reduce the psychological burden. You will have to take care only for the strategy and its principles of opening a deal and the parameters of capital management.