2017



The Forex broker RoboForex has implemented a multi-level affiliate program (several levels of referrals) in order to promote its services and acquire new customers who open an account through affiliates. For these members, the program offers a range of advertising tools based entirely on the Internet. Thanks to these resources and the payment plans offered by RoboForex, this program is an interesting option for monetizing blogs and websites that are related to the topic of financial markets in general and especially with the Forex.

Summary: In this article we will discuss about the main types of traders' brains and how they affect their way of visualizing and trading in financial markets like Forex.

We know from research with brain scan that our mood and outlook on market behavior depend on our brain type.


In summary, there are five general types of brains. Among the traders and investors, the three most important brains are compulsive, impulsive and anxious.

People with compulsive brains tend to be trapped in a particular thinking about the market. "It's too high." "It's too manipulated." "It's too risky." It's too … "whatever. Individuals with compulsive brains tend to trade completely on their own terms and usually are not open to comments or other options.

The Forex and CFD broker RoboForex (regulated by CySEC of Cyprus), has implemented a trading contest for demo accounts with cash prizes for the winners. This competition of 1 month rewards the traders who obtain the higher incomes upon completion of each round. Therefore, it is a good opportunity for beginners and experienced traders who wish to evaluate their trading strategies without risking capital in the process and that both are interested in earning real money. 

This contest has an annual award fund of 39,000 USD.


The Forex and CFD broker RoboForex (a company regulated by CySEC and IFSC) provides its clients with technical analysis updates and trading signals on currencies, gold and crude oil which can help the trader to take advantage of market opportunities.

The technical analysis and signals are supplied by Trading Central, a leading independent company specialized in technical analysis of financial markets, whose services are used by 38 of the world’s 50 leading banks as a second opinion in addition to their own in-house market analysis. The technical analysis reports from Trading Central cover many asset classes such as Forex, Commodities and Market Indices. Traders can also benefit from a wide range of reports based on a variety of technical indicators, covering multiple time frames that are ideal for short, medium and long-term traders.

Also, the clients of this broker have access to updated market news from Dow Jones.


What is a petrodollar?

A petrodollar is a dollar earned by a country with the sale of its oil to another country.

The term Petrodollar was first used in 1973 by Ibrahim Oweis, professor of economics at Georgetown University.

All OPEC (Organization of Petroleum Exporting Countries) sell crude in US dollars (USD), so that any country that wants to buy oil to these countries has to change its national currency to USD.The term petrodollar should not be confused with petrocurrency, which refers to the national currency of each oil-exporting country like Canada (CAD) for example.

The demand for US dollars for other countries to buy oil significantly affects the United States emphasizing the deficit and inflation. In this sense, most economists agree that trade in oil is in the long term, a charge for the currency in which the trade is conducted.




RoboForex-Broker Review

RoboForex is a NDD/ECN Forex broker from New Zealand and Cyprus which offers the possibility to trade with currency pairs (Forex market), commodities like gold and silver and Contracts For Difference through various trading platforms. This company provides a variety of services to its clients, including solutions of social trading, trading competitions, regular promotions for new and existing clients, various tyes of trading accounts, managed accounts, various trading platforms and many more.

Currently RoboForex is one of the most versatile and varied brokers in its services, as it not only offers trading accounts for the Forex market, but also a platform for trading and investing in shares of the American stock market. This, along with the quality of its ECN execution, the possibility of opening an account and trading with low amounts and other characteristics, make RoboForex an option that we must consider.

Type of broker

RoboForex is a NDD/STP/ECN Forex broker.

The Real Interest Rate Differentials Model indicates that movements in the price of currencies are determined by the levels of interest rates of the countries. Thus, the currencies of countries with high interest rates should grow in value while the opposite should happen with nations whose interest rates are low. 

As we will see below, this model is not able to explain all the movements in the currency market, although much of what happens in the Forex (and in other financial markets) is related directly and indirectly with interest rates.

Bases of the Model 

Whenever a country raises its interest rates, international investors discover that the currency of that nation has a higher yield and therefore these investor start buyin the currency. This theory was very successful in 2003 when the spreads of interest rates were quite close to the highest levels of the past years.

The Model of Interest Rate Parity states that in the event that two different currencies have different interest rates, then that difference will be reflected in the premium or discount to the price in the future, in order to avoid arbitration without risks.

For example, if interest rates in the U.S. are 3% and the interest rates of Japan are 1%, then the U.S. dollar (USD) should depreciate against the Japanese yen (JPY) by 2% to avoid what is known as risk arbitrage. This price or future exchange rate is expressed in the price at future date (forward) indicated on the current date.

Free MQL5 Signals cuopons from RoboForex

For all traders interested in automated trading and copytrading, RoboForex is offering an interesting promotion during 2017. As of April 11, 2017, RoboForex Ltd with the support of MQL5.community (a service of MetaQuotes Software Corp., the creator of Metatrader 4 and Metatrader 5 platforms) will be carrying out a special offer for its customers, in which the company will award 2017 free coupons for the MQL5 Trading Signals copytrading service. Each of these coupons is valued at 40 USD.

-Period of validity of the offer: The promotion will be active until the 2017 free coupons expire. (At the time this article was written, there were 1935 coupons).

Well, now that we know how to calculate the value of 1 pip, calculate the position size that will be used in a trade is really simple.
In this article we will not discuss about how much risk in a trade, which would be the subject of another article, so the first thing to calculate is the monetary amount you are willing to lose in the transaction.
Assuming for example that the size of our trading account is 2,000 EUR and we apply a monetary management in which we risk 1.5% of the account, it is easy to determine that the maximum loss we are willing to assume in a trade is 30 EUR (2000 EUR * 1.5%).
We assume also that the position opened will have a stop loss set in advance. Therefore, as the value of 1 pip is known, then would be easy to calculate the loss in the account in case the price reaches the stop loss for each contract involved in the transaction.

What is an indirect quote?

Is the price of a currency pair expressed as amount of foreign currency per unit of domestic currency.
 
In other words, when an indirect quote is given, the exchange rate is expressed relative to a fixed  amount of the national currency (1 unit),  while the amount of foreign currency is variable.
For example, if we are in the United States, the indirect quote for the Canadian dollar would be 1.17 CAD = 1 USD, so the exchange rate of the indirect quotation is expressed as USD/CAD 1.17 because it is the expression that reports the amount of CAD per unit of USD which is the national currency (for 1 USD we can obtain 1.17 CAD). If we were in Canada the indirect quotation of the US dollar would be 0.85 USD = 1 CAD (CAD/USD 0.85 indicates that for 1 CAD, which is the national currency, we get 0.85 USD). As we can see, in an indirect quote the base currency of the currency pair is the national currency.


What is the exchange rate?

The exchange rate, also referred to as conversion rate or foreign exchange rate is the price at which a currency of a country can be converted ("changed") in the currency of another country.
The system of exchange rates among currencies stems from the need of foreign currency by companies and nationals. In other words, the exchange rate comes from the movement of capital, goods, services and people across borders, that is, the existence of international trade. For example, when a company sells products to a foreign country, it is natural that this company wants to get paid in their national currency; therefore, the foreign company must buy the domestic currency of the manufacturer to pay  the products purchased. There are also many situations in which anyone may need a foreign currency, for example, when traveling need currency of the destination country. The result is a foreign exchange market in which people, companies and other participants buy and sell foreign currencies.

A key aspect when an investor trades in financial markets like Forex is the application of appropriate monetary and  risk management. This includes the use of an appropriate position size based on the total capital account, the risk level accepted by the trader, the level of leverage, the stop loss used and the volatility of the instrument in which the trader is investing.

Financial markets can be extremely volatile and perform strong upward or downward movements that can produce profits or high losses. Therefore it is vital to use an appropriate position size that does not cause the trader to suffer losses too large relative to the size of the account.


The Forex broker OctaFX offers a weekly trading competition for demo accounts using cTrader trading platform. It is a contest offering cash prizes to the top 5 places, ie the 5 traders that have the best performance for the duration of the competition. Because it is a competition for demo accounts, participants do not risk their money at any time and have the chance to practice their trading strategies and make money in the process.

-Duration of the competition: At the moment, competition takes place during every week and is valid for 2015 and 2016 or until OctaFX says otherwise.

Review of the broker OctaFX

OctaFX-Broker Review

OctaFX is a regulated Forex broker which operated under an ECN business model. This company offers the possibility to trade with dozens of currency pairs in the Forex spot market and gold and silver spot. The customer can use any trading strategy including scalping and hedging. In addition, OctaFX provides many extra services to its clients, including various types of trading accounts and platforms, trading contests, regular bonuses for new and regular customers and other.
Another advantage of this broker is that you can open an account and trade the market with a very low deposit.

This trading system is ideal for traders who only have little time to trade in the market during each session. In fact, this is a strategy developed for traders who prefer to carry out short-term transactions in which they open and close positions in minutes and not hours. Usually these types of traders, known as scalpers, use one-minute charts to enter and exit their positions.

Intraday traders in the Forex market can take advantage of the small movements that occur in different currency pairs by watching the 1-minute candlestick charts.

Like any scalping strategy, it requires active monitoring and management by the trader as he must be alert to cut losses and take profits quickly.

 As always, it is advisable to practice this strategy on a demo account before trading with real money.

DeMarker – A good tool for market trends analysis

DeMarker indicator (DI) is a technical indicator (specifically an oscillator) created by Tom Demark and it is used to analyze the trend of the price of an instrument such as a currency pair (Forex) in the market. It can also be used to study the trends of other instruments such as stocks and commodities for example. It is an oscillator created to identify new buying and selling opportunities. In some way, is similar to the Directional Movement Indicators developed by Welles Wilder. In general, Demark goal was to create an indicator that overcome the problems normally associated with other technical indicators and tools used to identify overbought and oversold trading conditions in the market.


The financial markets such as the currency market (Forex), futures, commodities, stocks and other offer excellent opportunities to invest our capital and make money speculating on the price of these assets. But statistics tell us that the vast majority of those who venture into the market end up losing money. In fact, it is interesting that statistically speaking it is easier to become a lawyer, engineer or doctor that a successful trader. More interesting is the fact that the success in this field has little to do with intelligence or preparation of the individual. There have been cases of smart and well prepared academically speaking people who never saw a penny in the market and instead I have known other cases of people with an intellectual and educational average level who earn tons of money constantly trading in the market.


What are currency pairs?

In the Forex market, currencies are traded in pairs. In these pairs each currency has meaning in relation to the other, so always stick together. 

The two currencies in a pair are traded against each other. The rate or price at which these currencies are traded is known as the exchange rate. The exchange rate is regularly affected by supply and demand for currencies that make up the pair.

In this article we will define two basic concepts for trading in Forex: the base currency and the quote currency

 What is the base currency? 

The base currency is the first currency listed in a currency pair traded in the Forex market. Sometimes you can also see this term as primary currency (although this term is not very suitable for its meaning in economics). In accounting base currency is the one used to represent all company accounts.

The Flag and Pennant strategy for trading binary options is a chart-pattern based strategy, like most of the other such strategies out there. What sets it apart from the majority of these schemes though is the fact that the Flag and the Pennant pattern are rather difficult to spot, for beginners and advanced traders alike.

With that in mind, it’s safe to say that the actual identification of the above said patterns is one of the main goals and components of this strategy. How one can then use these patterns to trade is actually quite self-explanatory.


Alvexo-Broker Review

Alvexo is a Forex and CFD broker founded in 2009 in Cyprus which is fully regulated by CySEC and allows to trade with currency pairs (Forex), precious metals and CFD on stock indices, stocks and commodities. It is a market maker broker which offers fixed spreads in all its trading accounts and platforms. This company offers various types of accounts and trading platforms (including Metatrader) with different features designed for traders with different profiles.

Alvexo also offers ECN accounts, in which this broker provides its customers direct market access and does not become their counterpart in their transactions. In this way, there are no conflicts of interest between Alvexo and the client which can trade with total transparency since it has access to the broker´s liquidity providers (in this case the broker acts as an intermediary between the client and the market).

Indicator Parameters

  • ALLBars: It allows the trader to specify the number of bars used by the indicator to calculations. It’s best to leave the default value of the indicator (0, which tells the system that uses all the candles).
  • Otsup: The number of percentages that are cut from the series before comparing the maxima and minima to determine its importance. The higher the value, the more frequent are the plotted points.
  • Per: This is the period in which they are calculated maxima and minima at a given time. The larger this value, the lower the number of points plotted on the chart.


Introduction

This strategy is quite simple, nothing new really. It's basically a simple method of breakouts based on two premises:
-When an asset is in a strong bullish/bearish trend it tends to stay in that way unless there is something in the market that makes the price change its direction. In the Forex market,for example, there are often major trends that last for weeks and months which can be used to trade with the breakouts that occur in the support/resistance. If the market is bullish we must look for breakouts of resistance but if the market is bearish we must look for breakouts of support.
We can see an example of this in the picture below:


Indicator Parameters

-Aroon Period (normal value = 14): It is the period in the candles/bars in which the indicator must look the highs and lows in the market trends. The larger the period, there will be fewer trading signals and the smaller the period, the number of signals will increase.

-Mail Alert: With this option the Metatrader 4 platform send signals directly to the trader email whenever there is a crossover in the red and blue lines.

-Sound Alert: Every time it happens a cross between blue and red line a visual and auditory other will be activated to alert the operator.


The Forex and CFD broker HotForex (regulated by CySEC of Cyprus) has implemented a new bonus program called "Loyalty Rewards" that rewards customers for open an account and continue trading in the market with the company. Basically this program awards points to the client for every transaction made with the trading instruments that HotForex offers, including Forex, precious metals and CFD on different underlying assets.

In other words, the more the customer trades, more points can be obtained. The amount of points, called Bars, depends on the volume and frequency of transactions made by the trader. These bars can be exchanged for cash or trading services, depending on customer choice.

Wedges are chart patterns that sign a continuation in the market trend formed before the wedge. Wedges are quite similar to the triangle formations (simetrical triangle, ascending triangle and descending triangle) and it is formed along with 2 trendlines which are a support and a resistance. This chart pattern is basically a long-term pattern and it lasts up to 3 to 6 months but it can be seen in shorter time frames (in lower time frames is less reliable). In this case the trader can foresee those converging trendlines which remains slant in position.

The trendline remains upward or either in downward direction. This remains quite distinct from the uniform trendlines occurring in the triangles.  Unlike triangles formations, in wedges formations the bands or lines among which the price fluctuates point in the same direction.

HF Social of HotForex

The Forex and CFD broker HotForex (regulates by CySEC), one of the most important in the sector, has created a new social trading service called HF Social, which is based on the concept of copy trading. This service allows customers of this company connect with other traders, make informed decisions and identify more opportunities in the market and specially to build an investment portfolio by tracking and copy the most successful traders in the network. Through HF Social system, any investor interested in the financial markets like Forex, can follow and copy in real time the transaction of any trader belonging to this network of social trading.
The HF Social system is based on the platform of FX Stat, one of the most important companies in the field of social trading, which specializes in solutions of copy trading companies.

Mani features of HF Social

With HF Social, HotForex clients can connect with other traders, discuss trading strategies and important market news, follow and copy the most successful traders and portfolio and carefully expand their networks by identifying more trading opportunities in markets. Among the advantages of HF Social we can include:
  • HF Social has the auto-trading function to build a portfolio of winning strategies and copying market trades automatically.
  • It allows their members to connect with other traders, select the most successful and manage their portfolio of manual and algorithmic traders through HF Social.
  • An investor can build a portfolio with signal providers (traders) that use different trading strategies, so as to have a diverse portfolio that allows to invest under different market conditions.
  • HF Social provides updated statistics of all network members. This allows to select the best traders according to more objective evaluation criteria.
  • HF Social platform is fully compatible with mobile devices (iOS and Android), which allows the trader to connect to their account, react quickly to changes in the market, keep updated with the latest events and news and watch the portfolio of manual and algorithmic traders through their smartphone and from anywhere with Internet connection.
By joining the social trading network HF Social, HotForex customers can instantly connect with more than 250,000 traders, review and analyze any portfolio and its results and follow in real time any trader of their choice. Also, the client can automatically copy the transactions of the most successful traders through an intuitive and easy to use system, even for novice investors.

HF Social account of HotForex

To join the social trading network of HotForex, the applicant must open a HF Social account on the website of the company, which has the following characteristics:
Trading platform
FxStat, MT4, Webtrader and Mobile Trading
Margin Call / Stop Out level
50% / 20% (*)
*Spreads:
1 pip margin on premium spreads of HotForex
Telephone trading
Yes
Trading instruments
Forex, Indices, Metals and oil
Account currency
USD, EUR
Prices with fifth decimal
Yes
Personal Account Manager
Yes
Maximum leverage
1:100
MYFX platform
Free (for deposits over 2000 USD)
Execution
Market execution
Bonuses
No bonuses
Minimum opening deposit
USD $100
Maximum number of simultaneous open orders
300
Minimum transaction size
0.01 lots (1,000 units of the base currency)
Maximum size of trading volume
No limits
Minimum transaction size increment
0.01
Commissions
No commissions
* An additional pip is charged by FxStat for their services.

Account opening with the social trading network HF Social

To open a HF Social account at no cost and build a portfolio of signal providers traders to copy the transactions performed by traders with successful trading strategies, you can access the website of the company through the following link:
HF Social

The candlestick pattern Matching Lows is a formation of two bearish candles presented in markets with a downward trend. It has a moderate reliability and indicates that the price is likely to change from bearish to bullish trend. This pattern can be identified as follows:
  • The current market trend is bearish.
  • During the first period a big black candle is formed.
  • In the second period there is a shorter black candle which has a close that is equal or almost equal to the close of the first candle.


The Forex broker HotForex recently announced a new promotion for the months of March and April of 2013. This offer is a credit bonus of 100% on every deposit of capital made ​​by the customer. With this bonus, the client of this broker can enjoy the following benefits: 
  • Trading account protection against margin calls and stop outs during periods when the trader suffers heavy losses (drawdowns).
  • Increases leverage.
  • The total amount of this bonus can be withdrawn once the trader meets the required conditions. To withdraw the bonus, the client must follow the following conditions:
    • The trader must trade 1 lot (100 000) on the market for every bonus dollar. This means that if you receive a $100 bonus, you must perform a number of transactions equivalent to 100 lots.
This bonus applies to all deposits of capital equal to or greater than $100 and will be available for a limited time. 


The Forex and CFD broker HotForex, one of the most important in the sector, offers a copy trading service an account called Auto Account, which opens the world of financial markets like Forex even to novice investors with no knowledge on the market. Through Auto Account, investors have the opportunity to subscribe to free and paid trading signals from the MQL5 (Metatrader) community. This trading signals service is directly incorporated into the HotForex MT4 terminal (based on Metatrader 4), which facilitates the subscription, implementation and execution of trading signals.

 Investors can automatically copy the signals from any signal provider (trader) belonging to the MQL5 community. In the case of traders who sell their trading signals, they undergo a 1 month monitoring and valuation process in order to check their performance.



Fundamental Analysis of the Forex Market

Forex fundamental analysis is a type of market analysis that identifies and measures factors that determine the intrinsic value of financial instruments such as economic and political environment. It is included in the fundamental analysis any factor affecting supply and demand of the instrument traded. For example, a study of fundamental analysis for a currency  include supply and demand for the currency as well as products and services in the country, government policies, historical and projected performance and economic indicators.

Momentum is one of the indicators used regularly in technical analysis. This indicator measures the acceleration in prices by comparing the closing price of the last session with the closing price of past sessions. The fact that it allows to observe the speed of movement in prices - in its graphical representation this would be seen as a change in its curve - makes it a very useful tool because it allows the trader to anticipate changes in the trends. 

This indicator is calculated using the following formula:

The Forex and CFD broker HotForex started a PAMM accounts service (managed accounts) for its clients which allow to invest in the Forex market through professional account managers who are responsible for operating and managing the market open positions. In this case, the investors only have to deposit funds in their accounts and monitor the performance of the same over time. 


Introduction to Forex market

The Forex market, which is commonly known as Forex (Foreign Exchange Market) is currently the largest and the most liquid financial market in the world with a daily trading volume of around $3 trillion (million million) U.S. dollars, which puts it well above other financial markets such as the stock market of the futures market. It is an Over The Counter (OTC) market.

The operation of Forex is based simply on the purchase of one currency and selling another. In this case the investor tries to make money with the rise or fall in prices of a particular currency against another. In Forex the trader can make money with both long positions (buy) or short positions (sell) as the purchase of a currency involves the sale of another and vice versa.


HFAffiliates Review

HFAffiliates is a Forex affiliate program, which was created in 2010 by the Forex broker Hotforex with the aim of obtaining new clients through the promotion of the company services made by affiliates. To meet this objective, HF Affiliates provides the affiliate with multiple marketing tools of various types, focusing primarily on the Internet. Thus, this affiliate program is an excellent option to monetize web sites or blogs whose topic is related closely to the financial markets such as the Forex market.


The Forex and CFD broker Alvexo (regulated by CySEC of Cyprus) offers a promotion for new customers in 2017 consisting of a free welcome bonus of USD 25, whose only requirement is the opening and verification of a new trading account. This bonus does not require pre-deposit from the trader and is ideal for evaluating Alvexo services and earning money in the process without any risk. In addition, it can be used to trade with all the instruments that Alvexo offers to its clients, including Forex.

 - Period of validity of the offer: At the moment Alvexo has not set a deadline for this promotion and is valid throughout 2017, however the company can modify the terms and even cancel the offer at any time.


The Forex and CFD broker HotForex offers a contest for demo accounts called Virtual to Real Demo Contest which offers cash prizes for the winners. Due to the fact that it is a competition for demo accounts there is no risk for participants, but the cash prizes are real. In addition, through this competition the broker's customers can improve their ability to analyse and trade in the market without risking a single dollar in the process.
-Contest period: This trading contest is held every month and each round has duration of 1 month


Review of the broker HotForex

HotForex-Broker Review

Hotforex is an ECN/STP Forex broker which offers the possibility to trade in the Forex market with dozens of currency pairs, precious metals like gold and silver and with other financial instruments like Contracts for Difference on indices, stocks and commodities. This broker offers many trading solutions for retail traders and institutional clients, including various types of accounts and platforms. 

Also, the clients of HotForex have access to other services as solutions of copy trading, trading competitions, promotions for new and existing customers and more. Currently, is one of the main brokers in the sector of retail Forex with thousands of clients around the world.

In this review we will cover the main services of this company.

General definition

The GDP or Gross Domestic Product is a report that includes the total value of all goods and services produced within a country in a given year, which is equal to the total of consumption, investment and government spending, plus the value of exports, minus the value of imports. The GDP report is disclosed at 8:30 am EST on the last day of each quarter and reflects the previous quarter. The importance lies in seeing the GDP growth during that period. In the case of the U.S., GDP growth has historically had an average value of about 2.5-3% per year.
The GDP can be calculated by three methods:
  • Expenditure method.
  • Method of distribution or income.
  • Method of supply or added value.
Per Capita Gross Domestic Product Worldwide

Relevance of the Gross Domestic Product

The information provided by the data of this indicator is considered a measure of the economic health of the country,  and basically allows the economists to set if there is economic growth or economic recession.

Moreover, GDP represents the size of the economy of a country, which serves for comparing to the economies of other countries.

Effects of the Gross Domestic Product in the market

The GDP data has a great impact on the markets. Its value is taken into account by investors as it indicates whether an economy is growing, stagnant or in recession. Sometimes, a figure that indicates a turning point, as a growth figure after several consecutive quarters of recession, which most likely indicate the beginning of the expansion trend may lead to strong market movements. As immediate consequences of this situation increases would occur in the securities markets, as investors will have positive economic expectations.

When the GDP is rising, investors can anticipate that the stock market will go up due to higher corporate profits. The revaluation of the equity markets and economic growth that shows this indicator implies a stronger currency. Consequently, many investors will be attracted to invest in a growing economy, so the expectations of the economy will improve, there will be more confidence, which at the same time will create new businesses, new jobs, etc.. Given this climate of economic prosperity, global investors have to buy the domestic currency to purchase shares of the stock market of the country or to invest in companies directly, which will cause the appreciation of the national currency.

Also, when this indicator rises, the counterpart is a declining bond market for fear of an increased inflation due to a probably economic overheating which may happen sooner or later. It is normal for an economy where activity grows and creates jobs, that wages tend to rise, and therefore the price of goods and services do the same. Thus it is easy to assume that economic growth will drive an increase in interest rates to curb rising inflation, and as a result, a depreciation of bond prices.


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