Experience is a guarantee of successful trading outcomes. Though when you are just starting, or want to understand the peculiarities of the market and exercise all possible resources for your improvement, you need to pay attention to trading tools which will bring you only benefits. The most appealing advantage of these tools is that they save your time! Let us go through three reputable useful tools to enhance your trading performance level, save time and increase profitability.
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CM Trading Forex Broker Review 2022
CM Trading – STP broker from South Africa specialized in Forex and CFD-Tight spreads and low commissions Visit Broker Website CM Trading – Forex Broker Review CM Trading is an online Forex and CFD broker that was founded in 2014 in South Africa. As such, the “CM Trading” brand is currently owned by Global Capital Markets Trading and GCMT SA. As … Read more
Calculate the risk of ruin (or probability of success) of a trading system
This is probably one of the most important articles for long-term success in trading that I have written so far. If I am not mistaken, this is the first time I have written about it, although the issue of risk of ruin is of the utmost importance in achieving long-term profitability. It is about evaluating, objectively, the risk I have of losing a certain percentage of the capital dedicated to investment and trading.
We have talked a lot in the past about drawdowns in general and in trading systems in particular. Specifically, we have explained the concept of the historical maximum drawdown as a risk measure of any kind.
When using a trading system in Forex and in other markets we must be able to answer two questions:
- With a certain capital, what risk do I have of suffering catastrophic losses in the system/portfolio due to lack of funds?
- If I want to risk only a certain capital, what probability of success do I have in the long term?
They are two questions that come to express the same thing, the relationship between the probability of long-term success and the capital available for the system/portfolio. Naturally we all know that the more we put in, the better, but it is about optimizing the use of money, right?
Trading System Based on 4 EMA Crossover
The trading strategy that we present below is a system based on the crossover of 4 exponential moving averages (EMA) of 5, 10, 20 and 50 periods. In this sense, it is no different from other similar strategies, but includes indicators such as the RSI and stochastic oscillator to measure market momentum, which allows the trader to confirm the reliability of the crosses. We should recall that in trading systems based on moving averages crossies false signals may occur and therefore it is important to employ means for filtering signals.This system also includes a custom indicator for Metatrader 4 (EMA/EMA Cross Indicator) which serves to signal EMA crossings.
The system and its rules are quite simple as discussed below. As always we recommend trying the strategy on a demo account before risking real money.
World Trade: a key sector in the economic recovery from Covid-19
While in 1970, trade represented about 29% of the world’s gross domestic product (GDP), as of 2018, it exceeded 60% of world GDP. At the beginning of the 15th century, with the arrival of colonization and the discovery of America, what began as a commercial phenomenon that we call triangular trade, became, over time, the seed of what we would … Read more
Tickmill Broker: Platform, Regulation, Deposit | Complete Tutorial
In this guide of the Forex broker Tickmill, we will learn more about this company. Among other things, we will explain how to open a practice demo account with this broker and how to manage its Metatrader 4 trading platform, one of the most popular and widespread platforms in the online retail financial world. You can find more information about … Read more
China’s digital yuan to be regulated as M0 money
- Once the new currency is issued, it will be classified as M0 (cash issued by the central bank).
- Everything indicates that the government refines details, but there is no official launch date yet.
The digital yuan will meet all the requirements to be accepted as legal money and will have all the functions of China’s fiat currency. It will also be regulated like cash. This was pointed out by the vice president of the Central Bank of China (PBoC), Fan Yifei, in a recent publication.
According to the vice president’s opinion article, published on September 14 in the local media “China Financial News,” China’s new central bank digital currency (CBDC) will circulate as M0 (money issued by central banks). This fact means that it will be part of the supply of paper notes and coins of the Asian country, and as such it will be totally controlled by the central bank.
Mcginley Dynamic Indicator For Metatrader 4
The Mcginley Dynamic Forex indicator for the Metatrader 4 platform is an indicator based on moving averages that have a smoothing factor to reduce false signals.
Its trading signals are very simple:
- If the price action is above the Mcginley indicator: look for possible buy signals.
- If the price action is below the Mcginley indicator: look for possible sell signals
The indicator settings (period, smoothing factor) can be changed directly from the indicator settings tab.
As with any technical analysis tool, it is not recommended to use this moving average as the sole criterion for analyzing and opening positions in the market. Use it in conjunction with an oscillator type indicator (such as the MACD, or the stochastic oscillator) to build a complete trading system.
Morgan Stanley strategist predicts good performance for bitcoin and gold in coming years
- Ruchir Sharma believes that next year the inflation of the dollar will be noticed.
- For Sharma, the next few years will be better valued stocks that preserve their value.
Morgan Stanley’s head of emerging markets and global strategy commented that commodities such as gold would do well for the next 3-5 years, and included bitcoin among them. Ruchir Sharma shared his point of view with Julia Chatterley, a CNN reporter. In his conversation, he showed his vision on how the economy and the global financial market will behave from 2021.
Fibonacci Retracement Trading System For Forex
In this article we are going to explain a trading system based on Fibonacci retracements and the weighted moving average (WMA), which can be used in any market and in most time frames. Therefore, it requires a basic knowledge of Fibonacci tools, although nothing complex.
Fibonacci tools can be found in the vast majority of trading platforms, such as Metatrader 4, so this system can be used on any platform that the trader chooses.
If you do not have knowledge about Fibonacci indicators, you can consult the following article: Fibonacci in Forex Trading
Basically, it is a technical trading system that focuses on opening positions in the trend direction, using Fibonacci retracements as price zones to enter the market. In other words, it is a trend following system. The WMA moving average is used to determine the best time to open positions.