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List of trading styles and strategies

List of trading styles and strategies

Jim Anderson - Public Relations

Trading on the Forex market.

The concept itself is very broad, and the reason is very simple - each person that trades has his own preferences, trading strategies, and style, trading manually, or use the best Forex robot for that.

Manual trading requires a lot of patience and knowledge. You can’t just open MT4 and start making money. You need to know Forex Market. You need to feel it. You need to know what can bring you money, and what can take all your earnings away. So if you’ve decided to trade manually, read the information below.

Before trading, you need to decide, what strategy fits you best. The amount of time that you intend to be trading, the timing of your entries, and the frequency of the trades – all this separates trading styles.

Just to be clear – there are no strict rules. Timeframes could be flexible, but this article will provide you information about typical timeframes that traders are using. So let’s just dive right in.

If you have a full-time job and a busy lifestyle, but still want to trade – you may consider using this trading style. It’s called EOD (End of Day). The main purpose of it is to spend less time in front of the screen.

You have a job to do, right? You have a family to spend time with. Why would you spend too much time in front of your PC?

So what you actually do - you analyze Market on a daily (sometimes weekly or even monthly basis) and set pending orders. That’s all.

But in order to do that you need to know the market, you need to know how it works. Prediction, knowledge, and confidence – that’s what you need to use the EOD trading style.

Intraday traders – people who open and close trades within the same day. The whole point of this style is to make money now, immediately. There are a couple of forms of intraday trading – scalping, news trading, swing trading, and trend trading.

News trading – people who trade during or around the release of very important news. People see an opportunity to make more profit in this very short period of time – before or after specific news comes out, making money on the impact of the newly received information. Big, national wide announcements affect everything and especially Forex Market. But this type of trading is time-consuming and situational. You can’t really rely on it, as it’s considered too short-term trading.

Scalping – basically, you sit in front of the screen for the whole day and getting profit from small, minor changes in a stock’s price. People, who use scalping strategy believe, that it’s easier to make more profit by catching small changes in prices rather than catch large ones. This type of trading attracts a lot of new traders due to the higher potential for profits.

Trend trading. The main thing here is to identify a trend and make deals ONLY in the same direction as the trend, that you’ve chosen, you’re basically “following the trend”, which can be profitable for long-term positions.

When you are using Forex robots to trade instead of you – it simplifies everything. You can choose the most suitable strategy and do your thing – EA will trade while you are not in front of the computer. Robots can take in more data than a human, which increase productivity. Also, robots are not affected by greed or fear, they trade no matter what when people often get carried away by feelings and emotions and as a result – losing money.

What do you prefer? Trading manually or using Forex robots?

or that.

Brexit drives Forex robots crazy

Brexit drives Forex robots crazy

Erik Holm - Head of media

The process of the UK leaving the EU has already had several turns which makes it so complicated that it even stumps computer algorithms.

The Brexit failure has gone from a surprise referendum result to a political swamp that has threatened to bring down U.K. Prime Minister’s administration and cast a pall over Britain’s future. British Prime Minister Theresa May has already tried three times to conduct the agreement with the EU through the parliament. Three times she was defeated and now the risk of the country leaving the European bloc without a deal is higher than ever.

At the same time, Forex robots that are very popular in the international currency market are trying to cope with the analysis of the daily avalanche of news from the U.K. As a result, the speculative trading strategy of the pound sterling has become too risky. So we would recommend you to use only the best Forex robots.

U.K. government is split in its position on Brexit. So does the British Parliament. The number of people that could affect the dynamics of the pound with a word or even gesture involved in this protracted “divorce process” has increased significantly. This fact violates the usual work of Forex EAs as well as the work of manual traders.

Algorithms that “read” news headlines, analyze the background information, and then automatically make a trading decision are a new milestone in the development of automated trading. The problem is that Brexit is now forming an extremely large amount of news, so the trading robots are “dizzy”.

Reuters estimated that for several weeks it publishes about 400 news items per day that are related to Brexit. Before the UK exit from the EU became an obvious problem, the agency wrote about this no more than 15 times a day.

Other systems that analyze the market in different ways suffer as well. Both technical and fundamental analysis Forex robots feel bad about the unpredictable consequences of the political steps the U.K. government and parliament take.

Brexit makes the financial market’s life hard not only for speculators - but market makers are also affected. These are those market participants who provide liquidity at the sites. According to their status, they are obliged to keep two quotes: longs and shorts. They also use trading algorithms, but they fail to reduce the risk.

Some hedge funds have completely abandoned the rate of the pound sterling since the models that they usually use do not fully work in the current environment, Reuters notes.

As a result, the volume of trade decreases as the number of people willing to trade in British currency decreases. In February, according to CLS data, the daily trade turnover of the pound sterling was 65 billion. This is noticeably less than 100 billion a day before the Brexit referendum in June 2016.

At the same time, the volatility of the pound is near two-year highs. The indicator increased 3 times compared to the end of February. Although the volatility of other exchange rates declined markedly during this period.

The pound has depreciated by 13% since Britain voted for withdrawal from the EU. But the market does not know what to do next because it doesn’t understand what will happen next.

Euro drops sharply after Reuters reported a split in the EBC

Euro drops sharply after Reuters reported a split in the EBC

Erik Holm - Head of media

Euro falls on the ECB’s anonymous sources saying that bank members do not believe in accelerating growth in the second half of the year.

Euro broke the two-day rally after Reuters reported that some ECB politicians expressed skepticism that economic growth would recover in the second half of the year. Some European Central Bank politicians believe that the bank’s economic projections are too optimistic, as China’s weak economic growth and trade tensions persist. A significant minority of ECB voting members at a policy meeting last week expressed doubt that a long recovery of growth would take place in the second half of the year and some even questioned the accuracy of the forecast ECB models given the history of downward revisions.

Given that the ECB uses these forecasts as a key factor in monetary policy decision making, a further slowdown in growth and inflation projections would increase the likelihood that the first post-crisis increase in bank interest rates (which is expected next year) will be postponed even further.

EUR/USD fell from 0,2% to 1.1280 against 1.1314, the daily high. According to a European trader polled by Bloomberg, intraday investors closed their positions as the euro was unable to rise to 1.1350.

For trading on the EUR/USD pair we recommend one of the best forex EA in Forexstore FXCharger MAX, which shows very stable results regardless of the market situation, jumps or drops, and brings a stable profit even in the current market situation. Also, check out other best Forex robots

An official representative of the ECB declined to comment. Until now the central bank has argued that many of the growth constraints are temporary so the economy will recover in the second half of the year. The fall in exports and the level of confidence almost brought Germany into recession at the end of the last year.

Euro bond yields are falling amid reports that the ECB’s policy doubts that growth will accelerate in the second half of the year. EBC President Marion Draghi said over the weekend that there are signs that these factors are weakening even though there is still strong political uncertainty. But some of his fellow members of the Board of Governors were not so sure of this and argued that the obstacles to growth were far from temporary so there is no reason to predict any significant recovery.

Some decision-makers of the ECB believed that bias could be presented in the bank’s forecasts, as they always show upward-slope inflation approaching the EBC target (2%). Sources added that ECB President Marion Draghi deemed to be open to discuss problems but showed little interest in deeply immersed in the forecasting methodology just a month before the end of his term.

Others told colleagues at a monetary policy meeting that the main reason for the poor projections was simply the wrong assessment of the failure in the labor market. The Eurozone has created about 10 million jobs since the worst days of its debt crisis and now there more people working in the way that record-breaking employment requires, suggesting that the labor market is more flexible than in the past and the natural rate of unemployment has decreased.

Short overview of currencies G10 and best forex EA for trading them

Short overview of currencies G10 and best forex EA for trading them

Jim Anderson - Public Relations

Here you can find information about G10 currencies and best Forex robots for trading them. 

USD – The continuation of the explosive scenario implies the weakness of the US dollar but an increase in the yield of US binds does not allow it to fall sharply.

The best forex robot for trading USD is FxStabilizer which brings stable profit in any market situation.

EUR – The euro is holding firmly against the USD and rises sharply against the JPY and CHF thanks to hopes for improved economic prospects: expectation for the ZEW index in Germany yesterday showed the sixth consecutive month of recovery. Tomorrow’s April preliminary PMI data may turn out if they exceed expectations for moderate improvement.

EUR is one of the most popular currencies that’s why we have a wide range of robots for trading it. Here are the best forex robots we have for EUR currency FxStabilizer,  Forex inControl,  FXChargerMAX,  FXGOODWAY.

JPY – Yen suffers under the weight of improved risk appetite and increased bond yields. Crosses with JPY are likely to show the greatest beta, both to the continuation of the current complacent mood in the market and to their possible termination.

GBP – A prolonged postponement in Brexit harms the pound. EURGBP entered the reversal zone – from 0.8650 to about 0.8700 – and there is a risk of further upward movement if the level of 1.3000 is broken through the GBPUSD pair.

The most highly profitable and secure Expert Advisors for this currency are FxStabilizer and FXCharger MAX.

CHF – The easing of CHF is now the most stable movement among the G10 currencies and will probably show a high beta for any continuation of the explosive scenario (especially for any increase in bond yield).

The best forex robot for trading CHF is FxStabilizer which brings stable profit in any market situation.

AUD – There is a key test the AUDUSD pair, which looks above the 200-day mobbing average and the area of 0.72000. If today it closes firmly above this level, it will be a technical reason for long positions, although for the past six months this pair has not seen any obvious trend. We are waiting for employment data in Australia tonight.

For trading AUD we have picked out two forex robots: FxStabilizer and FXChargerMAX.

CAD – USD and CAD stand shoulder to shoulder: the spread of rates on two-year bonds has remained within 20 bps for more than nine months. A similar situation was observed in a significant part of 2013 when the USDCAD rate was clamped between 1.00 and 1.05 and the spread rated in the same way stood still.

NZD – The value of the New Zealand CPI for the fourth quarter fully confirms that New Zealand underwent a structural shift to the weak side. But there is an increase overnight in pairs like NZDUSD and NZDJPY most likely caused by the latest data from China. So there is a question now: how much will it affect a pair like AUDNZD. Short selling NZD can be challenging as long as risk appetite is supported by hoped that Chinese stimulus and the US-China trade agreement will improve the outlook for global economic growth.

SEK – Strengthening hopes that the EU economy is beginning to recover (if the following data shows it) should be doubly favorable for SEK but it will need confirmation that the EURSEK pair is able to break through the level of 10.40.

NOK – Mysterious inability of the Norwegian krone to arrange a full-fledged rally against the euro when everything works in its favor.

Forex robots have no problems dealing with the instability at the Market

Forex robots have no problems dealing with the instability at the Market

Erik Holm - Head of media

The most aggressive risk behavior in a few months is now observed, and the main markets are located at a turning point, beyond which the current explosive growth will either begin to subside or accelerate. But Forex robots have no problem dealing with the instability at the market.

This situation arose after the risk-appetite went up on Friday 12th before closing, supported by the latest lending data in China and Donald Trump's powerful political pressure on the Fed. The price activity last week reflected the fluctuations back and forth, which have been observed for many months now due to the fact that traders cannot decide what to do with the US dollar and with risky currencies. The risk-taking environment is more favorable than ever. At the same time, Forex robots show fairly constant stability in their work on the USD currency pairs as well as on JPY, EUR, and AUD.

The AUDUSD pair last week changed direction every day from Tuesday to Friday and is now just below the 200-day moving average. At the same time, the American stock market is again less than 2% of the historical maximum, while the yield on long-term US Treasury bonds is at reversal levels: 10-year-olds are slightly higher than 2.50%, and 30-year-olds are just below 3.0%.

The JPY shows some more steady easing, especially since Friday morning when lending data in China for March showed the strength of the stimulus measures used.

The main question now is how long the current rally can last if yields start to grow again - especially at the long end of the American curve. But aggressive increases in US bond yields in 2018 preceded serious pullbacks. Continued growth in returns, even with increased risk appetite, would mean a steady risk rally under an explosive scenario, based on hopes that China’s stimulus measures and the transition of central banks to more “dovish” positions will support the growth of financial markets, although this will require confirmation over time.

However, it is too early to talk about the growth of profitability, as now only a technical turnaround is seen in the regime of falling interest rates if the yield growth of 10-year American paper continues. But this is still a noticeable stumbling block for the market and it is hardly a coincidence that the main US stock indices are now only two percent of the historical highs of last autumn - and this is just before the reporting season. Another immediate risk is that American consumers will be disappointed with tax deductions. The seasonal decline in the stock market is also close.