How to test and collect strategy or signal statistics

If you do not know how you trade (how successful or unsuccessful), then you will not be able to earn in the financial market. Before you start trading, you need to study your strategy. / Signal far and wide.

Statistics is needed to solve several problems:

  • Psychology: reduce psychological stress. When you know that when testing the signal turned out to be cost-effective over a longer period of time, the losses incurred have a smaller impact on the psyche. This knowledge kills nervousness and gives confidence to enter without emotion (fear, loss of opportunity, fear of under-working, etc.)
  • Profitability: get knowledge about your signal and check it for profitability (it gives profit or loss), as well as how long it takes to get a profit (dring month or two or more)

By collecting at least this information, you can already have a complete picture about profitability of the signal used.

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New MT4 tool to become more profitable forex trader

Visual comparison of history and current patterns

The indicator compares pattern found on chart history with the current price movement. Since history repeats itself, then, by comparing the two patterns, indicator can predict the further movement of the price. The indicator allows you to overlay highlighted history pattern with current movement and you will visually see this movement and will be able to compare the past and the present.

To compare two patterns, you need:

  • It is necessary to find and highlight a pattern on the history chart of a currency pair
  • Then mark the beginning of price movement from which the historical pattern will be overlaid
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2 golden rules to become a permanently profitable trader

There are only two golden rules to become a stable earning and profitable trader:

  1. Risk management
  2. Money Management

No other strategy/tactics will give you profit to your deposit. My experience shows that no any strategy found on the internet, offers risk management within. Basically they offer martingale money management strategy, where stop-loss is not used at all. In other words, if you take a random strategy or a signal from the Internet and use it together with the right risk management, the trading will be profitable.

You need to focus on the process, not on the result. Money will come when the process of finding an entry and calculating risk will be more important than earning money or beautiful charts or 95% of profitable trades. To learn to think by probabilities mean to use the opportunity to enter “here and now”, otherwise in a minute there will be an opportunity that has already gone.

I advise you to take it immediately for an axiom: no one can predict price behavior in the market. Each trade can be both: profitable and unprofitable before entering market. This means that you need to make a decision in total uncertainty.

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Profitable strategy MACD + Stochastic

The stochastic oscillator and the moving average convergence divergence (MACD) are two indicators that work well together.

The stochastic oscillator compares a stock’s closing price to its price range over a period of time. Its K line indicates the number of time periods, and its D line is the moving average of the K line. When the K line drops below 20, the stock is oversold, and it indicates a buying signal. If the K peaks just below 100 then retreats, the stock should be sold before the value drops below 80. And generally, when the K value rises above the D, it’s a buy signal as long as the values are below 80. If they are higher than 80, the security is overbought.

MACD indicates price trends and direction. Subtract a security’s 26-day exponential moving average from its 12-day moving average to create an oscillating indicator value. The trigger line is the nine-day EMA.

If MACD value is higher than the nine-day EMA, it’s a bullish moving average crossover. A bullish signal occurs when a faster moving average crosses above a slower moving average, creating market momentum and signaling more price increases.

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Best indicator Real Divergence on MACD

I am glad to announce that I have made a personal indicator MACD convergence-divergence.

The divergence indicator shows bullish and bearish divergence for RSI, Stochastic, MACD indicators. The strongest signals is on MACD.

Divergence is the most common and easy to understand. It is believed that the divergence is formed after the end of the movement and shows the likely trend reversal.

The indicator has simple, intuitive parameter settings. You can turn your favorite indicator on or off or turn on all divergence signals at once. Each indicator has its own distinctive color.

The indicator analyzes current price quotes and does not show a divergence in history. The indicator finds the first point, after which the second point searching starts and the process of divergence analysing starts: whether the divergence are formed or not.

The indicator does not redraw. All lines on the chart remain visible, so you can see and analyze all divergence signals for the selected indicators. In the indicator, you can turn on sending messages to a mobile (push-notification), by e-mail or throw out notifications (notification).

Buy an indicator through the codebase system.

Купить индикатор HurtLockerPro Real Divergence в магазине систем алготрейдинга

How this indicator works is fashionable to watch on YouTube

I wish you big profits!