April 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.

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