My own experience and insights in using forex trading robots

Most of those, who are trading on Forex market, have probably faced the so-called “missed deals” issue. If you are reading this article, it is likely that you have also suffered from it. I want to share my experience and an insight that helped me to dramatically increase profitability.

It is worth mentioning that I started trading on Forex with a tremendous wish to become “the great trader” and fully correspond to the image, which is imposed by television. However, the lack of financial resources and low level of the market development prevented me from achieving this goal. After a while, I finally designated a set of optimal conditions that fully satisfied my needs using my own experience in working with several trading brokers. However, even my deep knowledge, gained from the dozens of books did not bring me closer to the desired results. It took me at least half of a year to create a full-fledged profitable trading system.

I’ve got a powerful insight that I need not intervene into the working algorithm, but expand trading options in order to gain higher profit. Forex market is a unique platform, which works 7 days a week. However, I used only one third of its potential, as I traded only in the European session. It means that I traded 8 hours instead of 24 hours.

So, after familiarizing with the market for a while I upgraded my knowledge, but not the level of profit. Eventually, I decided to buy a forex robot in order to improve the performance.

It is not an easy task to choose a forex robot. There are paid and free versions of robots, which correspond various needs and strategies, both simple and complicated. The first lesson I learned on a forex market was that I have to invest in quality software in favor of my own deposit.

I started to check the review websites, which specialize on trading robots. You need a forex robot that would consist of the hundreds of algorithms for trading based on the setting parameters. So, spend some time wandering around the web to find some proper reviews on robots from traders.

Here is a list of helpful advice:

1. Read the reviews to understand the robot productivity and check the current clients’ results.

2. Find out how fast a particular robot can be optimized to your needs and keep in mind that the trading market is constantly changing. So, make sure you would be able to promptly adapt your robot to the actual market conditions.

3. Monitor the new robot models that appear on the market and compare their performance. Robots developing companies are constantly trying to develop more complicated systems and adaptive models. They want to provide the trader with the most successful tools.

It was a long and hard way of learning and mastering my trading skills before I found out that investing in software is the best way to avoid mistakes and problems in future. I have even lost my first deposit but still continued to study the trading market for 18 months. After that, I bought a couple of trading robots, tested them and picked the best one. Find out more about the automatic trading here: https://en.wikipedia.org/wiki/Foreign_exchange_autotrading

How to test a forex robot?

Today I would like to tell you how to test a forex robot, relying on the historical data and MetaTrader 4 software. First of all, you need to install the forex robot into the MT4 terminal. Then, set the number of bars in the history of quotes, which is based on the top “Service” menu and at a “Quotes Archive” sub category. After that choose a “Graphs” bar and enter a 100 000 000 number into the “Maximum set of bars in the history” and “Maximum set of bars on a page”. Press an OK button.

To get the quotes on the needed currency pair and test them you need to open a “Service” tab with a history of quotes or hit F2. Then choose a necessary pair with M1 time frame and press “Download” button. After a while the quotes would be downloaded, so you should restart your terminal. After that enter the archive and press the M1 time frame with the left mouse button, until the gray icon becomes yellow. To start the trading robot test open the strategy tester and press Ctrl+R. Then choose a currency pair, time frame and the type of a test. Finally, press the “Start” button and enjoy the results.

So, I tested numerous demo accounts and used various trading robots. I consider it as the main reason why I have become a successful trader. The second lesson, I’ve learned is that thoughtful preparation is a key to success. Learning more about forex market and mindfully investing you are protecting yourself from the losses.

 

Latency Arbitrage vs 2 leg arbitrage

There are many techniques and algorithms for trading financial assets in HFT trading. Strategies, which required a lot of time and efforts, are now completed in a matter of milliseconds. This has become possible by the automated trading robots. Trading robots were repeatedly improved, updated and optimized, as any other software. Therefore, the number of their specifications has grown. The impulse development of this area has also provoked additional improvements for the trading and the FIX API protocol was created. The idea of this protocol is that the financial information including quotes now comes much faster. Moreover, nowadays any trader can access this protocol through the FIX API broker.

Since this protocol allows getting the quotations faster, this is an advantage for trading. This feature influenced the emergence of the arbitration type of transactions.

The arbitrage is divided into two types:

  1. FIX API Latency Arbitrage
  2. FIX API 2-legs Arbitrage

Today I will provide you with a short FIX API tutorial, where we would analyze each type of the algorithmic arbitrage strategy.

FIX API Latency Arbitrage is a strategy which allows performing trading operations based on brokerage “delays.”

FIX API 2-legs Arbitrage strategy simultaneously opens different orders (of selling or purchasing) for the same financial asset at different platforms. It happens when the price for this asset differs on these platforms.

Here are the main principles of these strategies:

FIX API Latency Arbitrage conducts an analysis and monitors the price on the currency pairs. Then it finds the deviation in price and purchases the cheaper pair. The main idea is that it identifies the “fast” broker, who ensures the timely data update and follows a real situation on the market. Moreover, it is crucial to identify the “slow” broker on the market, who gets the quotations slower than the others. The account would be opened in the second broker and the trading would be done through it.

For example, the price for the EURGBP currency pair is 1.22343 from the “fast” broker and 1.22333 from the slow one. The difference of 5 pips is the profit for the algorithm. The robot buys a currency pair from the second broker and fixes the result according to the “quick” broker price at the moment of opening. It is done within the FIX API Latency Arbitrage API strategy.

2-legs Arbitrage analyzes the same asset on two platforms and compares if there are any price deviations. The Latency Arbitrage does the same thing. However, it is not necessary to identify which broker is “slower” as the trading is done on the both platforms. The robot is analyzing the asset, compares the prices on it and if there is an exchange difference it opens a deal with the broker, who has the lower price. Accordingly, it sells the asset where the quotes are higher.

For example the price for EURGBR currency pair is 1.23455 form one broker and 1.23450 from another. The trading robot, which works on the FIX API 2-legs Arbitrage strategy would open the deal for purchasing from the first and the second broker. These 5 pips would be a potential profit for the trader.

So what are the advantages and disadvantages of the fix api arbitrage strategies?

You need to investigate the weak sides of the both strategies in order to identify which one is better.

It is very easy for the broker companies to identify the Latency Arbitrage, as they also work with robots that conduct a search for this type of trade. After all, the deals are concluded in less than a second and are completed in large numbers. Thus, the broker can affect the trade due to an additional spread or delay. 2-legs Arbitrage trade is hard to track. It is because the trader will have a minimum profitability (5 pips in our example), which allows keeping the position from a few seconds to several minutes. This kind of operations cannot be tracked. In addition, the second part of the transaction is traded from an absolutely another broker, which makes the detection process even more difficult. Also, the key disadvantage of the Latency Arbitrage strategy, which is the advantage of 2-legs Arbitrage at the same time is the search for a more “slow” broker, which leads to the constant tracking of trading specifications of brokerage companies. Worth mentioning, that it does not make a difference for the FIX API 2-legs Arbitrage.

Summarizing, I want to emphasize that you need a FIX API forex broker, for a successful robot, which will enable you to trade at market quotes. It is also worth mentioning that each of the considered strategies is profitable, and this is, in fact, the main criterion. Still, the 2-legs Arbitrage strategy is simpler in use and lacks disadvantages.

Latency Arbitrage: what is this?

An automated trading is gaining more and more interest from traders each year. The reason for that is that nowadays digital industry requires all processes to be automated. The trading on the foreign exchange market is not an exception.

There were many resources and helping instruments developed in order to allow traders and significant market players to do the algorithmic trading. The FIX API is one of them. It allows to bypass the brokerage platform (terminal and server) and to trade directly with the market liquidity. However, it may be challenging for an ordinary broker to do it, so one still should use a FIX API broker.

Exactly direct access to the prices and quotes allows using such a popular trading type as an arbitrage for the high-frequency trading.

An arbitrage is a type of a trading system. It is based on the trading on the minimum price difference on the particular currency pair or brokerage time latencies.

Based on this method there are 2 types of the trading operations:

  1. FIX API Latency Arbitrage
  2. FIX API 2-legs Arbitrage

Today we are going to discuss the first one, which is a Latency Arbitrage. We would investigate the crucial advantages, disadvantages and key features of this strategy.

The advantages of the Latency Arbitrage

The Latency Arbitrage is also called 1-Leg fix api arbitrage, which means, that you get an access to the quotes and prices way ahead of other bidders. The direct connection to liquidity through the FIX API or to servers close to the exchange platforms gives an early access to the market prices. For instance, the most of the broker companies in the US work on the NBBО system. It allows HFT traders, who use the Latency Arbitrage to get the data on prices much earlier than the others. It means they can commit several trading operations within milliseconds.

The disadvantages of the Latency Arbitrage

The brokerage houses often block or “interfere” with normal trading because of the tremendous FIX API trading popularity. They set additional spreads, slip or delay execution of orders and it simply kills the trading mode, according to this algorithm. The robot can be easily detectable as it commits about 100-200 transactions per day for a short period of time and fixates approximately 5-10 points. This is the reason why brokers with the non-market liquidity are not welcoming such trade.

The key Latency Arbitrage features

The one only needs one account with a broker, which will be directly used for trading in order to successfully trade according to this strategy. It is worth mentioning, that the account should belong to the “slow” broker”, which gives an access to the FIX protocol. However, there could be some manipulations on the companies’ part, as sometimes the weak brokers are used. To avoid this you need to test the broker with a small amount of money and make sure it works properly on the open trading.

Here is an example of the arbitrage trade, on the arbitration latency principle

The robot provides an analysis of the “lagging” broker and compares its quotes to the market ones. For instance, EUR/USD currency pair costs 1.07122 on the market and 1.07115 from the broker. This 7 pips difference is a profit for a robot, which decides to open a short-term speculative position to buy the asset. Following this algorithm, a robot can compare a couple of algorithms simultaneously and make transactions at the same time. The great amount of the instruments and trading operations guarantee success for 90% of the transactions and the high rate of return.

Finally, I want to emphasize that the robot, working according to this algorithm should use a fix api trading principle. It is an important feature in a robot’s success. This is because any delays or problems from the brokerage company can have a negative impact on the result.

What do you need to pay attention to when choosing a brokerage company?

The trader should be able to cope with all difficulties related to the financial market. These can be illogical assets’ movements, taking positions off the market due to the release of fundamental news or a change in monetary policy. In addition, the fix api forex brokerage company is setting additional spreads and markups for its customers. In order to decrease the pressure of these factors, each trader should know which broker to work with and which one should be avoided.

Today I am going to investigate this issue and identify how to choose the optimal broker for your fix api trading. Moreover, you would be able to find out if your current trading conditions supplier is a reliable partner for working in the financial market.

So, let me distinguish several key features, which the quality brokerage companies should have:

  1. The market spreads;
  2. The ability to select multiple trading terminals;
  3. The possibility of algorithmic trading;
  4. The access to fix api;
  5. The open information on the company’s website.

Let’s look at each of the types in more details.

The market spreads

This parameter indicates that the broker takes quotes from the market or a reliable liquidity provider. If you see a fixed percentage, it means that the broker takes a fixed percentage of your trade. If the spreads are the market ones, then at the time of the strong news, your positions will be opened at a fixed price or at least close to it. Or if there are already open positions, they will not be closed with greater risk than you asked. This indicator directly affects the financial result of the trade and the trader himself is not able to solve it (only using fix api).

The possibility to select several trading terminals

We are accustomed to the fact that if there is one broker, then there should be one terminal. However, this is far from true. You should have a choice of the most optimal software for fix api trading. The best option will be if the terminal is able to receive information from the market. It will be a significant advantage for the brokerage company. The fix api MT4 might suffice for somebody, but I reckon, that it is necessary to have the other options as well.

The possibility of the algorithmic trading

It is a well-known fact, that the robots are capable of trading stably with the minimum risk parameters and a large indicator of profitability (ссылка). If the broker prohibits this approach, then, firstly, it means that he is not able to pay the trader his profit, and secondly, the transactions do not overlap the market and are traded on the server of the brokerage company (the Dealing Desk system). This will immediately tell you that the broker is not reliable and it is better not to place the funds in such a company.

The access to fix api

If the brokerage company doesn’t give an asset to the fix protocol, it guarantees the quality of the company. On the other hand, if you are in doubt then you can independently trade via fix api on the side of the liquidity supplier. You can the trading robots for that. This solves several issues simultaneously.

The open information on the company’s website

The information such as: “our liquidity providers” or “our diplomas” does not tell the trader anything. Therefore, it is better if there is the information on legislation the broker relies on and where it is registered. This will tell you much more about the broker.

You can analyze your broker even now according to the list above. It is a good filter, which is worth using before placing the investment capital for the trading.

Resources to promote your trade

Each trader seeks a stable income in the financial market. We are ready to analyze the charts on a daily basis, to look for both fundamental and technical reasons for market weakening, and to share this information with our colleagues. However, I believe that you need to share this information not only with the other fix api traders, but also with potential investors.

If you have a working trading strategy at your disposal that brings a stable percentage of income, then you need to monetize and earn not only on exchange rate fluctuations, but also directly on the possibility of providing trading signals. We will consider today this opportunity and I will tell you some useful resources, where it can be implemented.

But first, I want to orient you for what it is for:

  1. If you promote your trading among the professional environment, you will be able to attract additional capital to your trade. We all know the standard conditions of the remote control (https://www.investopedia.com/articles/forex/09/using-forex-automation-software.asp ), in which you can take 2% for the fact of account management and 20% of the net profit. So, if you are able to increase your capital from $2000 to 5% a month and can attract $20,000, then your net profit will grow from $100 to $300 ($100 from the trade and $200 from the account management result). In this way, you can even get more from management than from your trading.
  2. Promotion of your trade will create a positive image in the professional environment of traders in the fix api forex market. You can gather around you like-minded people and followers; with whom you can build effective networking (http://forexrobotsreview.eu/2017/10/04/why-should-a-trader-track-the-trade-of-his-competitors/ ).
  3. Together with your trade, you can promote other auxiliary products. These can be paid consultations and a development of investment solutions directly under the client’s request. In this format, you can increase the profitability of your products and your expertise not only in the market situations.

As you can see, popularizing yourself as a trader allows you to significantly improve your financial results, and most importantly to diversify them.

Returning to the topic of resources, on which you can implement these opportunities about which I wrote above, you can refer the following platforms:

  1. Mql: by right, this is the largest and most popular resource on the Internet. Mql is a developer of fix api MT4 trading platforms and publication of the results is not difficult. However, the key drawback is the fact that the popularity of the resource provokes to set a higher price for the trading signals and some potential customers may simply not take advantage of this opportunity. Well, for a trader, this is still a platform with full statistical information on the trading results that allows you to be popularized among the trading community.
  2. 1sforexsignal: this is the youngest resource from my list. However, you should not miss the fact that the platform is intended for work namely in the fix api forex market. Concentration on one platform allows you to improve the quality of the trade signals delivery. Moreover, among the entire list on this resource, you can set a minimum subscription price of $1. Thus, the investor can test the trader’s trading style before entrusting him an investment capital.
  3. Fxsocialnet: the feature of this resource is the fact that the platform allows you to fully describe the algorithm of actions, see historical results of work, as well as current indicators. However, this is far from a key feature. This resource allows you to promote your algorithmic trading and attach a robot, which can be purchased directly from the site. This gives an opportunity to immediately demonstrate the results of the product and immediately sell it.

All these resources allow the trader to raise awareness in the market, and most importantly, they are tools for attraction of additional capital based on the trading results. It is clear that it is necessary first to create a working trading system, and only then to promote it. But for the future, this approach is an excellent option for increasing the profitability of your fix api trading activity.

 

Classical Tools for Analysis: Levels and Channels

A modern fix api trader is in a constant search of an ideal combination of trading techniques that would bring him a high and regular income. However, whatever the trading approach or system is, there are technical elements that have been used on the market for more than hundred years and the first postulates on them were written back in the late 19th century. This is a classic approach. It is this method that employs approximately 90% of all players on the market. Entire trading strategies and even algorithms are built on the classical elements.

Today, I propose you to consider two of the simplest and at the same time the most sought after elements of classical analysis: levels and channels. In addition to the simple theory, I’ll tell you a few tips on how you can easily find them.

Levels

The classical level approach can also be divided into two types: support and resistance levels. The difference between this and that approach is that each of them displays zones that will become reversal after growth/decrease or after correction. This is, in fact, the essence. The level of resistance is the future zones that were achieved in the past. The level of support is the past zones, which formed in the course of the current price movement. In order to understand the levels in more detail, I propose to consider the following schedule.

As you can see, the price is clearly moving from one level to another level and after testing one zone it goes to the opposite side.

Advice on detecting levels: mark the maximum and minimum on the graphic and then set the level in the range where the price lasted the longest time. After that, this range is also limited by lines from the top and bottom of the corridor. Thus, you will get at least 4 goals, to which the price will move.

Level trading has a small risk. Typically, when opening a trade, stop loss is set behind the line. And if there is a rebound, the risk in such fix api trading will be minimal in points. If you take into account the trading signals (https://1sforexsignals.com/ ) at the level of breakdown, the risks are certainly higher.

Channels

This technical element is also based on two lines, but unlike support and resistance, the channels tend to have a more oblique structure. The channel displays the price direction and allows you with a great accuracy to predict the maximum volatility of the trading asset. For this, I also propose you to consider a specific example.

As you can see, this channel displays the directed asset movement. The price of the financial instrument has been repeatedly tested on the border of the channel and is now on the average of its range. Thus, we can say with a high probability that the price will continue its movement in this range, and in case of breakdown, the fix api trader will get a call to action.

The channel allows you to understand the price range between which the price will move in future, and this is very important, because in this case, you can analyze the time factor.

Signals to action on the trade channel is directly its breakdown and fixation – this tells us that the price is accelerating and we should expect an impulse. Also, the signal to action is a breakdown from the channel’s borders, which tells the fix api trader about the continuation of the trend movement.

The use of a particular classical method on the fix api forex market can ideally be combined with different trading strategies. So, if you work on a breakdown after crossing the sliding (https://www.metatrader5.com/en/terminal/help/indicators/trend_indicators/ma ) or the price channel, then you can use the channel to understand the phase of the trend and if the breakdown is in the direction of the channel, you can make a deal. If the breakdown of your strategy happened inside the channel and at the same time against its global movement, then such trading signal can be missed.

The classical elements of analysis from several years have proved their efficiency. I’m more than sure that if you learn these principles in your trading, this will improve your trading result.

 

Algorithmic trading in the foreign exchange market

The automatic approach to trading operations has been popular among the fix api traders for more than a year. New methods and approaches to implementation appear on the market, and every day, they become more and more. It is clear that out of all this variety of algorithms, working strategies may be only 5-10% of the total mass. Thus, even the trading robots confirm the statistics that 90% of all market players lose their funds.

Anyway, I still believe that trading on the fix api forex market should be conducted speculatively. It is best to use trading robots in order to do this.

I suggest that we consider today the types of trading robots for automatic fix api trading. Especially those that should be bypassed and those that are worthy of your attention.

Let’s start with those algorithmic techniques that I would not entrust my capital.

  1. Grid robots. This kind of robots has a feature, which consists in the fact that this group of algorithms is based on mathematical approaches. Grid robots very rarely trade on technical indicators. The logic of their work is “sutured” by a program code that looks at the price dynamics and in the event of a correction, it puts order in the opposite direction from the previous direction of the financial asset and through each step (a few points of profit) opens additional transaction into the same direction. Thus, the robot does not only trade against the trend, it also averages all the positions.
  2. The robots are based on the Martingale principle. They look very similar to the grid algorithms. Often, these two approaches are even combined into one program so that the robot can average transactions with a double volume. However, the logic of the system is a bit different. This principle should be added to the unprofitable deal with a double volume. This approach does not correspond to any classical (and correct!) methods of capital management.
  3. Scalping robots. In fact, there are automatic systems that are able to demonstrate a good profit among this group. However, the percentage of such robots in the market is very low, and if you create your robot with a working approach, this will be your author’s operating time (which I will write about below). These robots are very difficult to control. At the expense of the minimum position hold, which can be less than 5-10 seconds and also 2-3 points of profit, it is very difficult to understand the fact of draining. Fix api trader may not even guess initially that the deposit has begun to drain and regard the decline in the yield as a working drawdown.

Having dealt with those robots that need to be excluded from your field of interest, let’s look at those that you should pay attention to.

    1. Arbitrage robots. This group of trading robots is very similar to the scalping approach. However, the key difference is that the logic of these strategies is simple and understandable. You can more flexibly track transactions and manage the future result. To implement this approach, you need to have an account in two brokerage companies or a robot with access to fix api. Thus, the robot will compare the quotes between the two platforms and automatically open speculative transactions, while not having a risk as in case of scalping. Of course, it is very difficult to implement this approach to fix api forex. But there is ready-made software that can be already used today – http://forexzzz.com/product/forex-zzz-lock-arbitrage/
  1. Robots are based on the author’s approach. This group is interesting because the development of unique approaches, as a rule, brings better results than the use of the existing strategies. It is important to understand that not the new trading rules of the market are included into this category, but the unique combination of the already existing approaches.
  2. News robots. The same situation here is the same as with scalping strategies. Given the risks and returns that the news robots can show, I’m more inclined to their effectiveness for a simple reason – you can control the risks and understand whether the robot enters a drawdown or is it a deposit sink (http://forexrobotshub.com/2017/11/22/trade-time-increased-volatility-worth/ ). Since you will activate it at the time of the news background, the risk control remains with you.

Latency or 2-Leg Arbitrage: what to choose for automatic trading

There are many methods of algorithmic trading in the financial market. Every manager can choose software that on the basis of indicators will demonstrate high profitability results without the participation of a fix api trader. Most of these programs are used to diversify the trading and to reduce the risks of independent trading. This combination of two approaches makes it possible to make the yield curve more even and to hide the moments of drawdown from each other.

One of the first algorithms implemented in the form of a trading robot is the fix api arbitration technique. The fact is that this approach is very difficult to implement in a manual mode and with the development of the market it became even more complicated. Therefore, robots have been created that included the principles of this methodology and had several types of arbitration approach.

Thus, today arbitrage trading has been implemented with the help of two strategies:

Each of these two approaches is trading based on the exchange rate differences and delays between the price of the same asset, but on different stock exchanges. Each technique has its own trading parameters, risks and methods of application. Therefore, I propose you to consider each of them separately and choose which one is more suitable for you.

Latency Arbitrage

This approach is based on the application of arbitration techniques directly on the exchange rate delay. The trading robot performs only one trading operation, but for this purpose the fix api trader should initially determine at which platform the price quotes are delivered more quickly and accurately, and for which there is a small delay. It is this delay that is direct earnings according to the fix api latency approach. To put it simply, when the cost of the same currency pair in the fix api forex market has a course difference between two different brokers, the robot will make transactions towards the fast broker, but on the side of the slower one. For example, the trader has identified a fast and slow broker and installed a trading robot to track exchange rate delays. Let the cost of EURUSD on one platform is 1.1980, and on the second one – 1.1965. At the same time, the value of 1.1965 is located at the faster broker. When the divergence parameter extends beyond the average range (let it be 10 points), the trading robot will open a deal. In our example, a sale transaction will be opened at a price of 1.1980 and will hold until the value of the asset reaches 1.1965.

2-leg Arbitrage

This type of arbitrage approach is traded not on the quotation delay, but directly on the price difference between the two platforms. The robot takes into account the maximum discrepancy between the same asset, but commits two trading operations towards this difference. Thus, it sells the asset on the side where the quotes are higher, and buys on the side where the quotes are lower. For example, the value of the EURUSD currency pair is 1.1950 and 1.1935 at different platforms. At the same time, the normative discrepancy is 10 points. Then, the robot will open a deal for sale at 1.1950 and buy at 1.1935 on different platforms. When the value returns to the regulatory range of 10 points, there will be two trading operations with a total return of 5 points.

Based on the description of these algorithms, we can come to a simple conclusion that all profitability is formed due to the number of speculative transactions. When choosing one or another approach for automatic fix api trading, you need to take into account all the necessary parameters, as well as trading indicators. However, remember that arbitrage will not correlate with the manual trading strategies.

 

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.