Sixths trading - an EA by macman, Bob and Steve mk 2

SERIOUS WARNING

• Most Forex traders lose all their money.
• Using the robot posted here in trading Forex does not guarantee success.
• Trading this robot could lead to serious financial loss.
• Trading this robot without understanding its underlying trading strategies guarantees traders will lose their money.
• To trade this robot, you have to understand how to use the Sixths indicator. To learn how to do this you need to learn NanningBob's V5 trading system, so go to http://www.forexfactory.com/showthread.php?t=246113

Welcome to The Old Beast. Congratulations on finding your way here. Some of the brightest minds at FF are at work on this project.

There is a comprehensive user guide attached - the pdf. Read it for details of the trading strategy and info about the inputs. The pdf will direct you to the thread that produced the system that led to The Beast's creation (Nanningbob V5). You need to understand that system, but this thread is not a you-must-read-all thread. Read the user guide then keep up with the latest contributions and you will not go far wrong.

Confused, baffled and bewildered newbies, dump The Old Beast on demo charts, make sure the lot sizes are acceptable to your criminal, accept the defaults and sit back to watch until you do understand what is going on.

Live trading
Many of us are trading TOB live and have been for some time. In an average week, it makes 1 - 1.5% profit on the balance at the start of the week. As the balance increases, so does the profit.

DO NOT mortgage the house and start a live account with $50,000. Forex trading requires traders to demostrate two huge personality traits:

1. Patience
2. Balls of steel

The idea is to start with a small account and grow the balance into a large account. This takes time - hence the patience bit. Once your equity exceeds your deposit (equity = balance - drawdown) by a comfortable margin, you are playing with 'free' money and can breathe a sigh of relief.

You need balls of steel because this trading leaves your account in drawdown (i.e. open trades with a 'loosing' balance) most of the time. I run my account with a near-constant floating dd of 5 - 10% of the balance. If you cannot tolerate dd, then go away now.

Lot sizes need to be tiny enough to withstand a colossal move against you without causing sleepless nights. It is impossible to offer accurate advice, so experiment on demo; if your lot sizes regularly cause more than 10% floating dd, then they are too high. For what it is worth, here are mine:

• Broker: IBFX Australia
• Leverage: 1:100
• Lot size: 0.01 lots per $200 balance. Therefore my current lot size is 0.08 on my account balance of $1,531 (3rd April 2011).

Various account-related filters make it possible to trade TOM on umpteen charts without rising blowing the account, so long as your lot sizes are sane. You do need a lot of charts to generate a decent trading volume; TOB is not a trading tart.

Much of this thread concerns development of the first incarnation of The Beast and is of no relevance. I closed the thread for a while; we were developing Beastie and I thought this thread had run its useful course. This turns out to be a wrong assumption. Posts following its re-opening begin at post 620 on page 42 (http://www.forexfactory.com/showpost...&postcount=620.


Ok, have fun. Make profit. The rest of us are.



Temporary section until I update the user guide
___________________________________ ____________________________

Traders familiar with my work need read no further.

Posting restrictions
I have restricted the ability to post in this thread to: traders with at least 1 voucher; and traders on my 'buddy' list. I have done this because I do not want the thread cluttered with 'newbie' questions about the basics. New/inexperienced traders, this is not intended as a direct insult. What I want here is discussion with traders who fully understand what it is they are doing; when you newbs have been around a while, you will come to understand what a difference experience makes to the posts a member writes and shudder at the recollection of some of the questions you asked. I do. Go to your profile page; there is a link to the FF page that describes the voucher process.

Do not attempt to get around this by sending me pm's asking for help with your basic problems. Doing so will earn you an automatic ban from all of my threads.

I have set up a partner thread to this one and Nanningbob's at http://www.forexfactory.com/showthre...66#post3948666
There, you can post the questions that you cannot post here, about anything you need to know. Someone with the knowledge and experience you need will answer. I opened it for Nanningbob traders, but feel free to ask about this robot as well.

Traders/coders with experience who have not yet been vouched for, can get around this restriction be being added to my 'buddy' list; all you have to do is pm me to ask me to do this.

Snow Roller - An Avalanche of Profits

Welcome to the Snow Roller automated currency trading system for forex. Snow Roller is designed as a fully automated trading strategy and uses money management to close a basket of fx symbols based on P&L criteria that you enter. Your results depend on the currencies you choose, the timeframe, and the settings (basket profit/loss, symbol profit/loss, position profit/loss). I have provided the source code, your role is to provide the test results, whether good, bad or ugly.

This system is an expansion on 7Bit's "snowballs and the anti-grid" concept. You can find 7Bit's thread here. This basic anti-grid concept has been developed into a fully automated currency trading strategy. MQ4 (MetaTrader) Source code for Snow Roller is available. (see link below)

Basket_Stats: I have created an additional indicator tool to be used with the Snow Roller EA. It will tell you which pairs in your basket are adding to performance, and which pairs are costing you money. You can find the indicator Basket Stats at the link below.

As with all new strategies - please don't trade this strategy with real money until you have fully tested it for several months. I'm making this EA available to encourage testing and feedback / collaboration. I believe this EA has a sound fundamental basis because it's based on the same key concept as the snowball EA but only time and testing will tell how well this formulation performs. If the selected markets trend, Snow Roller should rack up the pips! Testing starts now.

Pairs being tested: EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, EURJPY, EURGBP, AUDJPY, CHFJPY, GBPCHF, EURCHF
Timeframe: 5 Minute. Settings - OOTB
Pairs that didn't test well: USDCAD, GBPJPY (YMMV)

For 1 minute the pairs that have tested well: EURJPY, CHFJPY, USDCHF, EURUSD, EURCHF, EURGBP. and GBPUSD is on the bubble.

Let the fun begin!

Download the source code here. (please show your appreciation by clicking the ads)


below are some useful scripts:

For those of you using MIG or another br0ker that uses 0.1 minimum lot sizing, I attached my MIG settings file below. Same as the other settings, just changed BalancePerlotsize = 5000.0. Copy file into /experts/presets/ directory and remove .txt from the end of the file.

The Difference Between the Stock Market and the Forex Market

What is the Stock Market?

The definition of the stock market is simply the business of trading stocks for the financial aspect. Stock refers to a supply of money that a company has raised. Investors give the company this supply of money in order to help that company grow, therefore increasing the value of their stock and in turn making a profit.

The stock market is one of the more traditional ways to create a profit from an investment... even without having much knowledge about it. A person with little experience can make decent profits with no much effort with traditional investments, such as stocks or bonds.
There is always a risk that a company will go bankrupt at any time

There can be a lot of risk involved when trading large gains in short amounts of time. It can be difficult to develop a trading system that can provide a consistent 10 to 15% profit on a yearly basis.

The stock market is country specific, and deals only in business and currencies within that region. There are set business hours that typically follow the more traditional business day, and is closed on Holidays and weekends.

Let's check out the forex market for a change

The forex market, also known as the foreign exchange or the fx market, is the place where currencies are traded. It is the largest, most liquid market in the world with an average traded value of over 4 trillion per day and includes all of the forex currencies in the world. Compare that to the $25 billion per day that the New York Stock Exchange trades and you can easily see how enormous the forex market really is.

What exactly is traded on the forex market? It is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker and are always traded in pairs, EUR/USD or GBP/JPY. Think of it as buying a traditional 'share' in a particular country. Let's say you buy British Pound, you are essentially buying a share in the British economy as the price of the GBP is a direct reflection of what the market thinks about not only the current, but future health of the British economy.

Unlike the traditional stock market, the forex market is open 24 hours a day. At any time, somewhere around the world, a financial center is open for business and is exchanging currencies every hour of the day and night.

It follows the sun around the world, so you can trade late at night or early in the morning. Keep in mind that these additional hours also add additional risk for us since we aren't able to monitor our investments 24 hours every day. There are several safety options, such as limit that we will discuss in another chapter.

Forex Trading In Multiple Currencies

One of the most critical things that you must understand in forex trading is hour to correctly determine the value of multiple currencies.

Obviously not everyone will trade in US dollars.


But with so many variables, how can you tell a good buy or sell without complete understanding of the value of foreign currencies?

Your first step is to figure out the current exchange rate between the currencies in question.

Currency conversion is usually expressed in a ratio known as the cross rate. Normally you will see them listed in pairs in a xxx/yyy manner, with the xxx referred to as the 'base' currency (or home currency).

The base currency is usually always listed as a whole number, while the converted currency will be expressed with a decimal that is as close as possible to the base rate.
EXAMPLE: 1 US dollar = 0.61484 British Pound.

You'll notice that the base currency is almost always in single units (such as one dollar instead of ten). And since the whole number (often referred to as the 'big' figure) of the secondary currency almost never changes, it is usually only referred to at the decimal point.

Also with the consolidation of most of the European market using the Euro, many currencies such as franc or the lira have been eliminated, making trading currencies much less complicated.

It will take a bit of time, but once you get used to the base values of each currency, the changes will become more obvious to you, therefore making it easier and less confusing to monitor and you'll be making profitable trading decisions right along with the pros.

Please visit http://www.forexmoneysignal.com for more advice and support and also forex signal solutions

Article Source: http://EzineArticles.com/?expert=Roman_Sadowski
Foreign exchange ("Forex") trading is a complicated business.  The foreign exchange trader must take into account (amongst other things) what may be called the "fundamental" factors of a country's economy (i.e. the qualitative factors that may have a bearing on its currency's exchange rate).  So, what are these "fundamental" factors?  They include political positions and developments (such as changes to a country's government's economic policy) and relevant decisions made by a country's central bank. They also include any relevant pieces of economic news affecting the country in question.  The Forex trader needs to not only be aware of this information at an early stage, but to effectively "second guess" how the money markets will react to it.  It would probably be unwise for traders (even those with considerable market experience) to ignore these fundamental elements and to just base their market decisions on technical analyses.

Approximately three trillion dollars is traded each day on the foreign exchange market (on those days that it is operating), making it the world's most liquid market.  FX trading is vastly different to stock trading. (For example, in the Forex market, currencies are "paired" in that when one is bought, the other is sold, and vice versa.)  As such, investors may find FX trading to be a useful means of diversifying their investment portfolios.

A number of factors make the Forex market unique (in addition to its liquidity, mentioned above).  These include the fact that the market operates 24 hours a day, 6 days a week, and that traders in the market typically generate low profit margins (when compared with other markets).

The Forex market has changed quite dramatically since participation was opened up in the 1970's;  now, it is not just the banks, but a range of institutions and investors (both large and small) that routinely participate in the market.  If you do choose to operate in this market, you would be well advised to enroll in a reputable course to learn the nitty gritty of the complicated world of currency trading, find out about the various different ways that this could be done and to consistently apply Forex trading strategies that work.

The important factors that a Forex trader needs to consider when conducting a fundamental analysis of a country's economy include that country's GDP, employment rate, trade balance and most recent budget.  Much of this information is publicly available on the Internet.

The results of a fundamental analysis could affect a trader's course of action in a number of ways. For example, a trader may use fundamental analysis to determine or predict the direction and extent to which a given country's official interest rate may change. Based on this analysis, the trader may sell the country's currency (if he/she predicts interest rates will fall), or buy the country's currency (if he/she predicts interest rates will rise).  Indeed, large investors may take this process a step further by seeking to effectively influence the value of a country's currency. For example, such investors could fund industrial development in a country (when that country's currency is weak) and subsequently sell back that country's currency at a higher rate (when the currency is strong).


In an overall sense, if a Forex trader understands how to conduct a fundamental economic analysis, he or she will be in a much better position to know when to exit an "over inflated" economy before its financial "bubble" bursts.

Learn more about Forex trading for beginner, intermediate and advanced traders and grab some free ebooks and e-courses at http://www.savvyfinancialtraders.com

Article Source: http://EzineArticles.com/?expert=Daniel_Webb