A Couple of Trading Sites To Check Out

November 27, 2007

I wanted to bring a couple of sites to your attention which you may not have visited before. 

The first is Trader Interviews.  This site has interviews with all types of traders dating back from March 2006 to present day.  They are audio interviews, not video. 

The second site is Hive Trader, a spin-off of FXEngines.  You can backtest many different combinations of trade strategies here for free and also view all community created systems.   The system with the all-time best performance is a system called "Buy All Time High" which seems to try to take advantage of the bullish GBP/USD.  The entry signal looks for a price breakout about the high plus 3 pips for the last 100 periods on a 5-minute chart.  The second criteria for entry is that the 21 period EMA is above the 55 period EMA.  The system calls for a trade to be made anytime between 2:00 AM EST and 4:00 PM EST Monday through Friday.  The system looks to exit when the 1-hour 180 period EMA crosses with price.  Maximum drawdown on this system was 786 pips with the worst loss being 640 pips.  The best gain was 1300 pips.  The average positive trade profited 124 pips and the average negative trade lost 54 pips.  You can visit the site to view all other tested systems.

November Trading Update

November 27, 2007

With a couple of days left in the month of November, I'm up 1.9%.  My expectancy is negative though and I've lost more pips than gained.  Pips matter but just because I'm at a negative doesn't mean I'm at a loss.  This is due to the fact that I normally size my positions so that I risk anywhere from .5% – 2% of my account balance.  What I'm not so sure about is whether my expectancy calculation is correct.  My expectancy stands at -.14.  This would mean that I will lose money trading.  It's a lot easier calculating my percentage gain based on where my account balance is now compared to where it was when I started.  For this reason, I know I'm up 1.9%. We'll see where my expectancy goes as my trading continues. 

17 Reasons America Needs a Recession

November 24, 2007

17 Reasons America Needs a Recession.

  1. Purge excesses of housing boom.
  2. Reverse dollar's free fall by giving government a wake-up call.
  3. Expose Wall Street's shadow-banking system.
  4. Force fiscal restraint back into government.
  5. Wake up short-term investors.
  6. Rating agencies have conflicts of interest and favor Corporate America.  Shake them up.
  7. Trigger internal recession in China.
  8. Force energy and auto industries to get serious about emission standards.
  9. Expose core inflation.
  10. Slow the Fed from cutting rates.
  11. Force Washington to get honest about how it's going to pay for wars.
  12. Expose CEO compensation.
  13. Stop privatization of federal government.
  14. Force congress to get serious about Social Security/Medicare disaster.
  15. Pressure consumers to reduce spending and increase savings.
  16. Lobbyists have replaced regulation.  Stop this.
  17. America has always performed better during crisis'.

Read the entire are at Marketwatch.

2007 Automated Trading Championship

November 24, 2007

The 2007 Automated Trading Championship
is coming to an end soon and the MetaQuotes Software Corp., ODL
Securities, Alpari (UK) Ltd., FXDD, TRADERS’ journal sponsored event
has a clear-cut winner.  Trader, Olexandr Topchylo from the Ukraine has
an equity balance of about $89,000.  The second best trader is way
behind at $34,600.  Topchylo has a candidates of science in Mathematics
and Physics and if you're interested, you can read an interview with
him at http://championship.mql4.com/2007/news/303.  Too bad he doesn't reveal his EA or algorithm. 

Forex Website Top Movers

November 24, 2007

Wall Street Bull

Top movers in the top 100 most visited forex websites on Forex On Top this week are:

  1. http://www.profitguideforex.com (+9)
  2. http://www.forexontop.com (+7)
  3. http://www.tradingintl.com (+7)
  4. http://www.fxtsp.com (+5)
  5. http://www.realtrade.lv (+5)

How Profitable Are Candlestick Strategies in Currency Trading?

November 20, 2007

Candlestick charts
In a couple of words…. they could be.

http://www.dailyfx.com/story/topheadline/How_Profitable_Are_Candlestick_Strategies_1195160706372.html 

Forex Project Now Syndicates RSS Full Text

November 20, 2007

My RSS feed is now displaying the full text of the post instead of a link to read more.  Hopefully this will be a more enjoyable reading experience for you.  

 Subscribe in a reader

I had this evil grin on my face one day

November 20, 2007

Globes Online is reporting that Easy Forex is being sued by one of its' customers alleging that the company paid brokers incentives when clients lost money.  

The claim followed a report on Channel 10 in which an Easy Forex broker
was heard saying, "I had this evil grin on my face one day, when a
client lost $35,000 in a quarter of an hour. A guy gets wiped out – I
get my commission. A guy comes up a winner and turns a profit – I pay."

I haven't heard about this in other news outlets, but here's the link: http://www.globes.co.il/serveen/globes/DocView.asp?did=1000276313&fid=1725 

Strange thing is that Easy Forex has an advertisement right about this article. 

Millionaire Traders

November 19, 2007

{mosimage}I picked up a copy of "Millionaire Traders" by Kathy Lien and Boris Schlossberg a couple of weeks ago and just returned it to the bookstore.  I know I've been tough on Lien/Schlossberg in the past with their forex trading service but I just wanted to mention that my thoughts of this book were not influenced by their service.  What a snoozer this book was.  It was impossible to get through.  It's basically a "Market Wizards" style question and answer book but it comes nowhere near to the quality of the Schwager books.   I had never heard of any of the traders profiled in this book and I would have loved to know how Lien and Schlossberg verified that these traders were in fact successful.  Some of them just didn't sound successful and some of the answers to questions were questionable at best.   Sorry, but in this business, you need to show me PROOF and they just don't do it.  This is just my opinion.  Don't take my word for it, check out the book yourself.  If anything, it's a good substitute for a sleeping pill. 

New Forex Website Rankings

November 19, 2007

I figured I'd mention some of the improvements I made this weekend to my "Most Visited Forex Websites" website…   I received comments over the last year that Alexa didn't truly reflect website traffic since only visitors with the Alexa toolbar are tracked.  Critics claim Alexa is easily manipulated and doesn't represent global internet users.  I agree to a certain extent and that is why I now also use Compete.com's traffic statistics which are obtained via a toolbar, opt-in panels, ISP's, and ASP's.  I believe this represents "most visited" much more than before.  After all, it's literally impossible to estimate traffic to any given website unless you personally have this websites access logs.  

As a result of the changes, the rankings have changed substantially.  Oanda is back at #1, with two other brokers tied at #2. 

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