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A Revolutionary Idea that Could Change your Trading


Author: Shanda Biggs


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Trading has become a phenomenon that many people want to partake in. Dreams of flashy watches and fancy cars has many lured in. Yet most do not realize the long road they need to embark on in order to make their dreams a reality.

Trading the forex markets is not an easy task. Information overload is what occurs for most newbie traders looking to educate themselves. A bombardment of information and education companies makes learning to trade even more difficult. You have to ask yourself, who do I learn from? What type of trading strategies do I actually want to learn? How do I sift through the vast amounts of information available to find what I am truly looking for?

This can make trading seem like a very complex skill to master. And because of this people tend to look for the easy way out… this is were the misuse of trading robots began. Those wanting instant gratification scour the internet for great performing robots in hopes that they can put some money into an account and watch it grow on autopilot.

THE REALITY…?

Trading doesn’t have to be hard. You do not have to struggle. In fact, learning to trade can actually be broken down into a simple skill to learn.

Simplifying your Trading 

 The trading community really does have good intentions. Those who feel like they have mastered their craft want to share all that they know with you. This is why we have developed a revolutionary trading tool to help accelerate your journey and growth as a trader.

You see… you still need to go through the struggles and obstacles in order to become a successful trader. But what if you could have a trading partner beside you every step of the way. Someone alerting you of great potential setups in the market. This could vastly increase your learning curve because if you have someone telling you where the great setups are, you can learn EXACTLY what great setups look like. Mastering great setups is what makes trading a difficult skill to master. Some trades look different then others and it can be difficult to decipher what a “good” trade looks like vs. a “great” trade.

The Solution…

Identifying great trades in the market is a skill that requires fine tuning and hours and hours of chart time. Now what if I told you there is a way for you to be alerted of these great setups without you having to sit at your computer and look for them?

Introducing DARA… a robot advisor that works as your 24/7 trading assistant. DARA scans the markets for great trading setups 24 hours a day 7 days a week like clock work. Only the highest quality setups are identified that comply with a strict set of rules. It then becomes easier for you to execute great trades on a regular basis.

Your trading partner diligently scans multiple markets according to a set of predefined rules and alerts you of these great setups. DARA will inform you of the trade and require your approval before executing or managing the trade. What this does is allows you to leverage the use of a robot telling you when a potential setup exists in the market while you use your own knowledge to make the final decision.

DARA is in the beta stages and we are currently testing this revolutionary idea with a small group of traders. If you want in on the action click here to be approved for beta testing.

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The Differences between Automated Trading and Discretionary Trading


Author: Shanda Biggs


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In todays post we are going to explore a topic that many traders question. I to questioned this topic on my trading journey. I wondered which trading style would best suit me as an individual and which would be the best for my growth as a trader. What we are going to be discussing today is discretionary trading vs. automated trading. There are similarities and differences between the two styles and we are going to introduce you to both in this post.

What is Discretionary Trading?

Discretionary trading is laying out a trading plan that must be executed manually by the trader. Each trade requires the trader to decide if the setup adheres to their trading plan. If it does then the trader executes the trade. If it does not than there is no trade.

Some discretionary traders are more lenient in their trading plan while others are rigid. What does this mean? To be lenient in your trading means you may take some trades based on “gut feeling” or a “sense” that the market may move one way or another. When the trader feels these feelings they may chose to execute a trader or stay out of a trade. This skill takes years and years of development and only a handful of traders can use their intuition successfully.       

To be rigid in your trading plan means that you have a strict set of criteria and rules that quality potential setups. You then wait for ALL of these criteria to happen and than you execute a trade. As a discretionary trader with a rigid trading plan, you still execute all of your trades manually. Where the risk with this method lies, is that you may not be at the computer screen all the time in order to catch every setup.

What is Automated Trading?

Now that you are familiar with discretionary trading we are going to introduce you to another type of trading that you may or may not have heard about. It is automated trading. Many of you may thing that automated trading or algorithmic trading is only for institutions or big banks. This is not the case. There are many retail traders who have developed automated strategies and trading them successfully.

Automated trading is the process of coming up with a strategy that abides by a strict set of rules. Each rule must be adhered to before the trade is taken. Once each rule is adhered to the Expert Advisor executes your trade without you having to be at your computer screen. It really is as simple as that. Rather than sitting at your computer all day, you predefine your entry, exit and management criteria and the computer will execute your trades.

So How is Each Method Similar?

Discretionary trading and automated trading are actually very similar. They both require a set of rules to be followed in order to be successful. Automated traders know this set of rules must be well defined. Discretionary trades are able to be more lenient with their approach, which can leave room for gaps in their trading plan. They may not have defined the way to manage a trade and therefore when they execute a trade, it could result in unexpected losses. Trading automated systems means that you have already tested and defined exactly what your setup is. This means you execute every trade with no doubt in your mind.

A professional trading system leaves no room for interpretation. Every detail about how the trade is executed is well defined. Your system is the set of rules that will guide your trading. Both discretionary traders and automated traders MUST have systems. This is the only way to succeed in the market.

How is each Method Different?

Although each method of trading has similarities, they also have differences. The main difference is that as a discretionary trader, it is easier to deviate from your trading plan.

After all, you are the one in control. You are making the decisions. This means that there can be room for interpretation with your system and how you define a good setup at different points in time. Some people thrive in this environment while others do not.

To be a successful trader you must have your trading system very well defined. You need to know your action steps when different events happen in the market. Although, successful trading is not all about having the perfect put together plan. It is also about execution. How well are you able to execute the plan? The execution of the system is where I believe the problem lies for most traders and is another major difference between automated and discretionary trading.

A system can be beautifully defined but if it is not executed properly, it will not make money. Your trading plan is nothing without proper execution. Not being able to execute your plan the same way with every trading opportunity is when gaps in your trading plan start to develop.

How can you move forward?

Now that you understand the similarities and differences between automated and discretionary trading you can make an educated decision on which will best suit you and your lifestyle. There are traders who succeed at both types of trading.

But lets jump back to the main point that was reiterated multiple times in this article.

“Successful traders have well defined systems”

They execute these systems flawlessly and this is what allows them to have an edge in the market overtime. For you to develop your edge in the market it is critical that you are trading time tested strategies that are proven to work.

DARA – One Step Forward

For you to take the step to trade systems that are proven to work, requires you to find a mentor or great trader who has developed a strategy that works. You can then follow exactly what they are doing. This drastically improves your learning curve.

Let me now introduce you to our newest trading assistant who we believe will help you on your transition to automated trading.

DARA is a robot trading assistant that allows you to trade automated rules based systems while applying your own trading discretion. The great thing about DARA is that you are able to get alerted of great trading setups and than you can open the charts and decide for yourself if the trade meets your own additional criteria.

How does this help you? DARA is programmed to only find the highest quality setups. This helps you to see exactly what great trades look like. When you are patient to only take great trades, you will have an edge in the market. Successful traders have developed an eye for their ideal setup and that is what DARA will assist you with. Training your eye to only take quality trading setups. To start your trailing our DARA robot click the link here!

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How to Identify a Reversal


Author: Shanda Biggs


In todays blog post we are going to show you how to accurately identify a reversal in the market.  Picking up on important reversal points in the market is not always easy but with the helpful tips we are about to give you we hope it will make it easier for you.

What is a Reversal?

Before digging into how to trade reversal patterns we are going to explain what a reversal is. I am sure by now you are an educated enough trader to know that the market moves in cycles.

We are either in a trending phase or a pullback phase. When the market is not in a trending phase or a pullback phase, it is a ranging market. In a trending market we are making higher highs and higher lows and the pullback phase of those higher highs and higher lows can give you excellent opportunities for reversal trades. The opposite would be true for a down trending market such as the one in the example below.

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To illustrate what I mean take a look at the image above. We can see that price has been in a beautiful trend making lower highs and lower lows. After price forms a new low and begins its pullback phase is the point where we can look for a counter trend move.

This is one area where reversal trades are abundant. Of course we want to ensure we stack the layers of confluence in our favor before taking any types of reversal trades because we are trading against market momentum. We will discuss more of these confluence factors later in the post.

So to summarize, a reversal is any point in the market where the current run or trend is pausing and price reverses in the opposite direction of the current trend.

When do Reversals Happen?

Not only is it important to know what a reversal looks like but it is equally as important to know when and where they occur in the market so that you have the highest probability of success.

The highest probability reversals happen when the market is in an overextended trend or run. When we say over extended what we are referring to is the trend has been going up or down for quite a while.  It is clear that price cannot head in the same direction forever and this is why after long periods of trending markets it is imperative to keep your eye on points where the market could reverse. To give a visual of what I am referring to we will look at EURUSD. As you can tell when price broke out of the consolidation on the upper half of the chart it has made a clear plunge to the downside.

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Price has been dropping and dropping for almost a month. It is wise to understand that the market will never head in the same direction for a long period of time so when we see price starting to slow down it is our best bet to look for reversal opportunities. As we fast forward in time we can see that price formed a large engulfing bar after a long downtrend. This is our first clue that the market may be reversing. This strong candlestick price action pattern is a big clue into where the market could potentially be heading next.

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For an intelligent trader, we know that just trading an engulfing bar after a run in price is a decent setup but we are looking for something more. We want to see more confluence in order to take our long position because the overall market momentum is against our position.

What we can look for now is support and resistance, over sold signals, or MACD divergence (or a combination of the 3). Pairing these confluence factors with our initial setup supports our trade even more. We can be more confident in our direction predication and possibly look at taking a trade.

You can see in our EURUSD example that this engulfing bar formed at recent daily support and this adds confluence to our trading setup.

How to Identify a Reversal

Now that we understand when to look for reversals we need to know exactly what to look for. We have touched on this earlier in the post but now I want to give you the exactly tools laid out so that it is easier for you to look for these types of setups in the market. Here is a check list that you can use when looking for reversal trades.

1.     Look for an exhausted trend or a daily chart that has had several candles of the same color in a row (to show an overextended daily trend)

2.     Watch for a strong price action pattern such as an engulfing or pinbar (to learn how to identify pinbars and engulfings see our other great post)

3.     Always ensure to look for the above to criteria WITH support and resistance or some other type of indicator to show that the trend is indeed reversing

You have probably heard the term “Don’t try to catch a falling knife.” This is very applicable to trading reversal setups.  If we do not have the factors of confluence in our favor what we are doing is trying to catch a falling knife. Instead we stack the confluence in our favor in order to justify a trade. This helps us to always take high quality trading setups.

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Now looking at EURUSD a few days later we can see that our trade would have gone into profit. By looking for strong candlestick patterns in combination with other price action tools such as support and resistance, bollinger bands and MACD divergence you can identify and trade these strong reversal setups.

Exits

Another important point to note is not only entering the trade with proper criteria but also exiting the trade. This can be the most important part of your trading routine because if you do not have carefully planned exits, your entry does not matter much.

It is especially important to know where you are exiting when trading reversals. Why? We are not looking for a full trend change at this point so we need to plan our exits very carefully. What we want to do is exploit the natural pullbacks of the market. Since we are fighting the natural momentum of the market it is wise to have smaller take profits. Once our profit target is hit we can then take our money off the table and await the next opportunity. Common take profit levels could be a standard 1:1 risk reward, Fibonacci extensions or an ATR factor. Whichever you decide to use be sure that you understand why you are taking profit at the particular area and ensure that you have an edge using that method. 

At Evestin Forex we have developed a very successful trading strategy that utilizes all 3 points on identifying reversals. First the strategy looks for high confluence candlesticks at the extremities of price action. We utilize bollinger bands to do this and the results have been nothing short of amazing. To learn more check out the strategy and others that we trade by downloading your free ebook here. Our strategy is powerful and if you want to give it a test, you can sign up for a FREE 30 day trial by clicking the button below.

See Shanda's other Blog Posts here:

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What is Automated Trading?


Author: Shanda Biggs


In todays post we are going to introduce an idea that might be very new to you. Some of you reading this post will already know what we are going to be discussing but to the newbies we want you to listen up. Today we are going to be talking about automated trading and breaking down what it actually means to trade with robots.

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Automated trading is the process of having your trading strategy executed by computers. You can develop a significant edge when trading an automated trading strategy. This edge can come from the computer taking all of your trades and managing them for you. No more worrying about being available for every setup. There is no room for error in your trade management plan. You can have full confidence that you are taking the exact same setup every time.

This is exactly where your edge can diminish as a discretionary trader. If your strategy is in a period of drawdown it can be difficult to continue trading it. When you stop trading exactly how your trading plan states is exactly when your edge disappears. I know it can be difficult to continue trading through drawdown periods and that is why we are introducing a new way of trading to you!

Your ability to make consistent profits overtime is derived from being able to execute the same trading setup without effort or error. Why do you want to execute the same trading setup without error? Because this is how you determine your trading edge. Knowing exactly what gives you the edge in the market ensures that you can execute your edge without error.

Having an edge comes from being able to exploit opportunities in the market. The easier you are able to do this, the more profitable you will be as a trader. Automated trading allows us to exploit your edge in the market, automatically.

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Sounds pretty cool hey? This means you do not have to sit at the computer all day in order for your edge to develop. If you have a sound trading strategy, you are able to go about your day doing the things you love while monitoring your portfolio of trading systems. This is powerful, because while being an automated trader, you can trade all types of systems and thus decrease your risk in the markets. By trading different types of systems such as trend following, reversal or mean reversion strategies you have the ultimate edge.

Markets may not be favouring your trend following system but they have presented powerful reversal setups. If you have 2 different systems to capture both market conditions you will effectively increase your ability to profit in all market conditions while reducing your risk of drawdown.

Making the jump to full automation with your trading can be a difficult thing to do. Mostly if you are a discretionary trader and used to sitting at the computer in order to execute your trades. What the main component of automated trading allows you to do is not get in the way of your own success.

Sometimes as humans we allow our emotions to get the best of us and because of this we sabotage our chances of success. While emotional trading is still prevalent in automated trading, it allows you to remove the emotion of determining if a setup is indeed a setup. Your ability to execute trades is no longer the primary component that makes you successful. Your trading system is.

As an automated trader, you no longer rely on your instinct to execute trades. How many times have your emotions controlled your trading? It is a fact that many traders lose money and do not make it as traders because they cannot handle their emotions. Through automated trading, your setups are predefined and your trades are executed by the computer where your finger does not have to sit on the mouse in order to pull the trigger. Imagine no more beating yourself up over missed trades! Doesn’t this sound good?

I thought so! That is why I took the step to automate my trading. I saw the many benefits to trading an automated portfolio of strategies. At Evestin Forex, we have developed a basket of strategies for you already! We have done the hard work for you by finding a strategy to automate, backtesting it, and then forward testing it! We have strategies that ACTUALLY work in a live market environment! What I would do if I was you and looking into ways to automate your trading is sign up for the free trial. You can pilot our strategies and see if automated trading is something that will suit your style of trading. Until next time… Happy Trading!

 

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How to maximize using the Satoshi Robot


Author: Gregory Lessing


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Today, I would like to write how we can maximize using the Satohsi robot on a currency pair. As traders, we know it is challenging to know when or when not to enter into the market. I also wanted us all to remember how we can take great advantage of the Satoshi robot while we go about our daily lives especially if we are trading on shorter timeframes. 

Over the years that I have been trading I have not seen something quite like the Satoshi robot. It is a valuable piece of my trading journey that I wanted to share as it has allowed me to get some incredible results.

This piece is what I call the sweet spots, (which are support and resistance zones) and trading this in line with the Satoshi robot on any timeframe for good entries and tight stop losses. I prefer the 30M and 1H charts for tight entries. The 15M may work but often I see price gets spiked out before returning to the direction of the trend.

The best way to identify these great setups is to look for obvious support or resistance levels and guessing that price will retrace before the support/resistance level or make a double top or double bottom. (This is my favourite)

So what exactly do you do? (an example here)

When prices are approaching back to the strong resistance level, we turn the Satoshi robot ON in a brand new chart (both 30M and 1H) for the particular pair and let the market give us what it wants to. These are the important things we need to look for to take advantage of the trade.

1.    When prices are retracing back to Resistance, you are only wanting Satoshi to look for sell trades, so we need to turn OFF the buy trades
2.    Start small with minimum lot sizing to see what happens with your picks and get good at it them and than repeat and grow your account when your experience kicks in.
3.    Check the time of the day you are trading at, it is always best to trade in European Sessions into American Session.
4.    You may leave the robot on for 3 or 4 days depending on the speed of retracing back to the Resistance level and may turn off the robot once you have had a nice entry.
5.    Try making your Stops in a form of like -10% of the signal candle, this is to avoid being stopped out by the spread. You can adjust this and make it bigger if it suits your trading style.
6.    Also I suggest to make your Take profits at +1000% of the signal candle, this is to give us space to do an assessment of the market and move the profit targets lower if possible to see the next strong support. If you have multiple entries, you could start taking profits off the table at different levels. (This is a new challenge for us traders to decide when to exit), you could use trailing stops or move stops into profit on the last swing high.
7.    Lastly, the important part, when doing this is to change the magic number on your Satoshi EA to avoid conflicting signals on other timeframes. For example I use 10115 for the 15M charts, 10130 for the 30M charts and 10160 for the 1H charts.

This is an real example of a trade I took recently, giving me some decent returns while doing my everyday life on a small account.

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I picked up the trade while we were entering a strong resistance zone between 148 – 150 on GBP-JPY around 16th July so I decided to turn ON the Satoshi robot on 5M, 15M, 30M and 1H charts to see what the market will give me using 0.01 lot sizing for each signal.
 

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I got in 7x 5M Satoshi signals and they were all stopped out in a range of between $0.50 to $1.50 depending the size of the signal candle.
I got in 3x 15M Satoshi signals and they were all stopped out too. The last one was stopped out just about double the signal candle before the huge move south.

I got in 3 x 30M Satoshi signals, and notice how powerful the Pin + Engulfing Bar combo is. (See picture below) There were a number of signals, but just after I got in 4x entries (3x 30M and 1x 1H), I turned off the Satoshi robot on all timeframes and let it ride. The reason I turned it off was because of the big drop, and I then left the Stops where they were originally placed.

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It indeed did ride south, where I moved my TP levels much lower and just got out of the two positions for a incredible 1:25 R;R each. Now I’ve moved my stops to the last swing high at 147.70

The Risks for the remaining trades I currently have were at $1.77 and $1.90 and now sitting at $41 and $40 profits so that is approx. 1:23 R:R

Imagine you finding those setups and taking the best advantage of the Satoshi signal getting in at a very good entry for you while you sleep, work or do anything! 

I’m wanting to invite interested traders into our Private Telegram group to discuss the possibilities of the next best trading sweet spots to take advantage of the Satoshi robot on shorter timeframes. Would you be interested? Email me at help@evestinforex.com  to get accees to our Private Telegram group. 

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A 3 Step Process to Successful Trading


Author: Shanda Biggs


Have you ever wondering how the tallest buildings in the world were constructed? I know I have! When you see them on mega builders and other TV shows you look at them and think to yourself “Wow, this is truly amazing how this building was constructed.” Some of them are works of art and simply make you feel in awe.

What I am going to dive into in this post is a topic that I hope will improve your confidence in yourself and your trading abilities. It will help you to see the end goal and work through the difficult times.

Lets come back to our building example for a moment. When we look at these mass creations sometimes we forget how what we are looking at actually came into existence. We forget what went on behind the scenes to bring the masterpiece to life. All we see is the finished product.

Sketch out the Vision

The same principle can be applied to trading and success in general. In order to be successful we must first have a vision. We need to see ourselves living the life we want to live and doing the things we want to do. In trading this means that we see ourselves as successful, poised and balanced professionals. When we do this, we take the actions necessary to achieve the desired results that we want.

What this looks like with trading is laying out a plan of action. This keeps you accountable and objective. You follow the plan and nothing else. When you deviate from your plan you are in effect deviating from your goal and the finished product, which would be successful trading.

Sketching out the vision also includes having a trading plan. If you think about the construction of a building it all began after the initial vision was seen and than the architect went to work on the plans. He included every detail that would need to be included in the construction of the building, leaving nothing to chance.

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He knew exactly what every room and every floor would include before even beginning the building process. As traders, before we begin any live trading we need to ensure that we have a plan of action. Everything must be laid out infront of our eyes so when the building process starts, we know how to take action and where our next move lies.

Laying the Groundwork

When you think about these enormous buildings you have to wonder how deep the foundation is to support the structure. When you think about it, would a 10 foot foundation support a 200 foot building? The answer is no.

In order for the building to be sturdy and stand up for many years to come the foundation needs to be at least a quarter of the height of the building. Most of the time spent constructing the building is done on the foundation and ensuring that it is secure to hold the structure in place.

The same applies to trading. You will spend a lot of time learning and growing. Do not let this cause you to become stagnant. Understand that what you are going through is a learning process and that you are putting in the groundwork to be a better trader and that ultimately whatever is happening to you is serving you in some way.

Making mistakes might be the most valuable thing that happens to you. If you can learn from what you did wrong, you will have a better chance of not doing the same thing in the future. Your mistakes can save you loads and loads of money in the markets if you make them early on in your career and learn from them.

This is the toughest part in your trading journey because it can sometimes be difficult to see that you are making progress. You may not see tangible results yet. This is the time more than ever that you need to keep pushing. Understand the process and where you are in your development cycle.

Continue to put in the effort to build a strong foundation. After all, the stronger your foundation, the more room you have to build higher and higher. Small foundation = small results. Big foundation = big results

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Seeing the results

Do you ever notice with construction that it seems like nothing is getting done and nothing is getting built and then bang one day the structure is almost built? Well the same principle can be applied to trading. The early years is when you make the most mistakes and have the most lessons. This is only natural, your still learning and trying to make sense of the markets. No one is a master from the get go. It takes hours and hours of dedication to become great at something.

Only after the vision has been formed and the groundwork laid can you reap the rewards of your harvest. There is no such thing as a free lunch, especially in the markets. You must determine your vision and plan the courses of action before you see the results. Trust in the process and see yourself where you want to be. This is how every successful trader has gotten to where they were. They believed in their abilities to become a successful trader and implemented an action plan to get there!

If you are interested in learning from a successful, full time trader checkout Ivo Luhse at Evestin Forex. He has put in the grunt work and because of his dedication he can say he is a full time trader and has the freedom to do as he pleases. The great thing about Ivo is that he shares all the strategies he has used to become a full time trader and has built them into robots to help assist other traders on their journey to freedom. To learn more click the link below. We hope you take the next step in your trading journey :).

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How to Identify a Trend

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How to Identify a Trend


Author: Alexander Vladimirov


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This article's topic is on how to be able to spot a trend in its beginning and make sure you don’t miss the ride. Being able to catch a trend as it begins is probably the most sought out peace of information and the leading skill aspiring traders want to possess. Catching a trend is what makes trading easy and really profitable. Of course, in practice it’s much different because Identifying a trend is only easy when it has already happened, and you need to arm yourself with a lot of patience if you’re going to be able to do this correctly.  The key is to identify a trend that is just about to take off. So, in this article we’ll discuss 4 methods for identifying an early trend and hope that at least one of them will suite you.

 

#1 - Moving Averages

MA’s are a very simple and great tool for identifying a trend. You must be cautious about the way you set up your MA’s though. The length or period of your MA’s highly impacts when you get a signal for a new trend. Different strategies use different MA’s. My personal favorite MA setup is with 3 EMA’s at 50, 100 and 200 periods. However, these usually take long to fully cross over (which is a pre-requisite for a new trend), so I mostly use them as support and resistance (S/R), until I can really see them start to cross over each other. A higher period MA may be used to identify the primary price trend, a shorter MA period to identify the secondary S/R level, and your shortest MA period to identify the minor S/R level. Here's an example:

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As mentioned, my MA's are slow, so if you want to catch the trend more towards the beginning, and MA's are your only indicator, I would wait for the pullback towards the 200 MA, after all MA's have crossed, like so:

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Highs and Lows

You can add this concept to your MA's. As seen in the charts above, one common trait of a trend is that it has higher highs and lower lows and vice versa. Fibonacci retracement really helps in identifying where those levels would be. Use high and lows to create channels and trend lines in order to give your outlook further structure.

 

#2 - Bollinger Bands

Bollinger bands indicator is one of the best indicators to use for counter-trend strategies, and one of the simplest ways to identify a trend. It's also a volatility indicator.

The rules are simple - when the price is ‘hugging’ the upper Bollinger band and the bands are flaring out its an UPTREND.

When the price is hugging the lower Bollinger band and the bands are flaring out (volatility increased) it is DOWNTREND.

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#3 - Time Frames

First thing you need to look at is your time frames. Daily, weekly trends can be running for weeks and months and provide opportunities for 1000+ pip trades. So these are the time frames you want to focus on. Generally, chart structure is the same on all time-frames with the difference being that there is more noise on the lesser time frames, which make them more uncertain since anything can happen. However, if you think that a new trend is starting soon and want to try to enter it a bit earlier, you would want to look at the smaller time frames.

Typically these are the three phases that a market can be in on any time frame:

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#4 - ATR

ATR (average true range) is one of the best indicators to use in trading. Initially, the indicator was designed for commodities, as ATR measures volatility, and commodities used to be more volatile. Before looking into how it works, it’s important to remember that ATR does not provide an indication of price direction, only volatility.

Here’s a simple illustration of the basic understanding of ATR:

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Here’s a really good real life example of how you could’ve used ATR (with 14-day period) to catch the most recent EUR/USD down trend on the daily:

The price was stuck in a range and surely needs to breakout, either up or down. We can see that the ATR is low, so we would be expecting that it will start to rise. Usually, only when the ATR is starting to rise again can we expect some volatility. Keep in mind that there can be weeks of low ATR and low volatility, however, this price break gives an indication that the ATR will continue upward. Similarly, when ATR is high it doesn't necessarily mean that volatility is expected to decrease.

 

Evestin Forex

Hope you find one of these methods helpful in your quest for catching trends. If you would like to see how we catch trends using our bots - sign up for our free 30-day trial below:

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Trading is a Game of Uncertain Outcomes


Author: Shanda Biggs


Losses seem to be the dirty word in trading that newbies do not want to talk about. Rather, most people want to see strategies that have very little losses and much more wins. Strike rates of over 80% are enticing to new traders coming into the markets. What we are going to discuss today may be difficult for some people to digest. But you must understand the concept we are going to bring to light if you want to be a successful trader.

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Forex trading is a game of uncertain outcomes. What this means is that you never really know how a trade is going to perform. All factors could align which would make your proposed trade seem like the perfect setup but then… it loses. Why is that? If you had the perfect opportunity and all the stars were in alignment wouldn’t it make sense that that trade should win?

The human mind will say yes and to most people that would make sense. But trading the markets is a completely different game. When all the stars align and the setup looks perfect, you can still lose. The reason for this is that the market moves on its own accord and with its own timing. We cannot control how the market moves and what it does. But what we can control is our technical edge and how we take advantage of opportunities in the market.

What is the Market?

The market is simply a collection of buyers and sellers from around the world. These buyers and sellers create supply and demand within the market at certain price levels on the proposed trading instrument. If we can learn to trade along side the momentum of buyers and sellers, we develop a technical edge.

So what allows for this edge to be present? Well you cannot do all of the work on your own. When your order is put into the market a collection of buyers and sellers are pushing price up and down. When you are on the side of the collective market is when your trades profit. This leads me to say that it is when many traders are thinking the same thing is when the market makes its move.

Market participation allows us to potentially capitalize on the said market moves. Being able to identify trading opportunities that present an edge allows us to potentially grab a slice of the pie.

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As forex traders, all we can do is participate in the market with an edge and continue to execute trades based on our set of rules. This gives us the opportunity to grab our slice of pie. When we have strict rules that we adhere to, we reduce the uncertainty of our trades. We give ourselves a higher probability of success.

Trading with an Edge

To have an edge means that there is a greater probability of one thing happening over another. In trading it is essential to understand your edge and know where your edge lies within your particular strategy. By doing so you can embrace the uncertainty in the markets, knowing that overtime your edge will present and you will be profitable.

To trade an edge successfully over time requires that you understand probabilities. Trading is a game of probabilities and the better you understand this concept, the more success you will have. See it is not a matter of the “perfect” trade setup winning or losing.

The mind of a successful trader ponders if the trade is inline with their edge and trading plan and if so, they understand that by taking more of these trades that the probability of success will soon play out in their favor. By trading inline with the probabilities you can expect to be profitable over time. This comes from being disciplined and patient in the markets and having confidence in your strategy to execute every time a trading opportunity presents itself.

Developing confidence in your strategy comes from hours and hours of chart and screen time. When you start to understand where your edge lies, you must develop a plan that allows you to continually execute your edge.

The Trading Plan

It is absolutely essential to have a trading plan to be a successful trader. If you do not have a trading plan you are effectively gambling and you might as well go to a casino. Having a trading plan reduces the uncertainty in the markets. When you have a plan you know your action steps. If you know your action steps then you are well on your way to reducing uncertainty in your trading.

Being able to clearly identify our favorite setups gives us a better chance of success. Then we are able to execute the same trade over and over again. When we can do this, our edge presents itself and we are on our way to profitable trading.

One thing that can help us to become more confident in our trading strategy to reduce uncertainty is backtesting. If we can see that our strategy has successfully performed in the markets in the past we can reasonably assume it could perform in the future. Of course the future is never certain but we can move forward with more confidence then if we had no successful backtested track record.

At Evestin Forex we have successfully backtested multiple strategies and put them into a portfolio that trades on autopilot. These strategies are proven to have an edge in the markets through not only backtesting but multiple years of forward testing as well. If you are interested in knowing more about our strategies and seeing some results click the link below and let us show you more.

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Short-Term vs. Long-Term Trading

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Short-Term vs. Long-Term Trading


Author: Alexander Vladimirov


In this article we're going to take a look at some of the questions you should be asking yourself in order to decide how you want to approach the market - long-term, short-term or maybe even both.

How much time do you have for trading?

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Are you somebody who has to work a 9 hour shift and also has to spend 1 or 2 hours in traffic on a daily basis? If this is your case, your trading time will be limited and thus you would need to maximize your efforts during your chart time. One solution here would be to pull up a weekly fundamental calendar and only highlight the key high impact events.  Once you do this, you will be able to know at exactly what time you can expect a movement to happen, organize your day so that you can have 30 minutes available and use a scalping strategy to make your profits. If you try to trade long-term, it might be difficult for you to have your eyes on the market once a reversal of the current trend and start of a new one starts. Having a good entyr is always important, especially in long-term trading. Evestin Forex will have a new trend trading robot which is currently being tested and will be available by this Autumn.

 What is your Goal?

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Obviously, everybody’s goal is to profit from the markets, but in what way? Would you be happier knowing you’ve taken a certain amount of pips per day, or are you happy to wait for a larger movement, and thus a larger profit after a longer period of time? This is something you have to ask yourself. If you rely solely on trading as your main income, you might want to feel the security of taking profit every day, but if you can afford to wait, a longer trend might be more rewarding for you and less risky at the same time. Longer trends are generally less risky because you can place your stop loss at break even, if you have a good enough entrance, and not think about it anymore.

Do you like trading?

Trading is a skill that can bring you more money than most other professions or crafts out there. This is why so many people give it a try. But it’s true that trading isn’t for everybody. If you are someone who doesn’t enjoy analyzing charts very often, but still want to get the financial benefits from it, then automating your trading with robots such as the ones offered by Evestin Forex would be a good solution for you.

The SWAP secret

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This is a secret not many people know or take into account. Some people who know about swap don’t really think too much of it, but it can really add up over time. The swap secret only works for long-term trading, and it’s one of the tools hedge funds use to turn out on profit at the end of the year.  This also is only worth it if you have a large enough account. A forex swap rate is defined as an overnight or rollover interest (that is earned or paid) for holding positions. The swap can be negative or positve. You have to research which way (buy or sell) is positive for you before entering the position. Different brokers have different swap rates, so you need to check with yours to find out, but an example of this working well would be the following:

Currency Pair: EUR/USD

Trade Size: 10 lots

Positive SWAP on Sell: $44.28/Day

If you combine this with a good technical analysis, you can imagine something like this:

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As you can see from the screenshot above, if you catch the break of the range/consolidation on the daily chart on EUR/USD on 26/04/18, then you would be looking at approximately $3,000 in profit on the day this article is published (04/07/18). This is only for a 2 month period!

 Evestin Forex

At Evestin Forex we understand that you might not always have the time or means to trade the markets, whether it’s short-term or long-term. This is why you will make your life easier by automating part or all of your trading. Sign up now to try our Automated Trading Systems free for 30 days!

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How to Identify and Trade Engulfings


Author: Shanda Biggs


In our last post we discussed the pin bar setup. If you missed this post you definitely will want to take a look at it. Click here to go to the first post of our two part series on the most important candlestick patterns.

How to Identify an Engulfing Candlestick

Before diving into some examples of engulfings on the price chart we are going to take the time to diagnose how the pattern forms. In the image below you will see exactly how a textbook engulfing candlestick pattern looks.

For a bearish and bullish engulfings we look for the 2 candlesticks to form. The first candlestick in a bearish engulfing pattern will be an up candle, the second will be a down candle. The opposite would be true for a bullish engulfing. This two bar formation is very important because it gives us insights into whether the bulls or bears have control in the market.

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When we see this two bar setup we want to ensure that the engulfing bar (second bar) is literally engulfing the first bar. This means that the second candlesticks body must engulf the first candlestick or be much larger than it.

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This pattern is powerful as it symbolizes a shift in momentum. What we often see with good engulfing patterns is that for a bearish setup, the close of the second bar will be quite far away from the open of the first bar. If you look at the example above you can see that this is the case. The close of the red bearish bar is significantly lower than where the first bar opened. You will also notice that the wicks of the candles are very small or virtually non-existent.

What this shows is that sellers pushed prices down immediately. There was no test of previous highs or lows but rather a strong shift in momentum. This gives us clues into the collective market mind as we can see if buyers or sellers are gaining control.

In the above example, after the shift in momentum, prices sold off. Paying attention to engulfing bars and candlesticks with little to no wick is extremely important. If you spot an engulfing at a significant level on the chart this can be a very powerful reversal signal.

Trading Engulfings in the Correct Market Context

As we discussed in the pinbar post, identifying and trading engulfing candlesticks must be done in the correct market context. We want to ensure that price is nearing the end of a bearish or bullish run and is losing steam.

Take a look at the example below. Price has been trending up for the past 9 days. You can then see a powerful engulfing reversal signal at the highs of price action. The engulfing is showing that the daily momentum could be slowing down and potentially reversing in the coming days. Look at what happened next… price make a move to the downside.

Large engulfing candlesticks after a reversal can also be a great signal of market momentum and direction. If we see large candlesticks moving in one direction this can give us clues as to who has control, the bulls or the bears. If you look at the example below we can see that price has made a reversal after a bearish run in price. Two large bodied candles then formed and skyrocketed price to the upside. These large candles show us who has control in the markets and are a great way of determining market momentum. Being able to successfully  interpret what these large engulfing candles are tell you will help you trade in line with the collective market.

Candlesticks provide a great way to interpret price action and analyze charts. When used in conjunction with your current trading routine they can literally change your trading. If you combine candlesticks with other price action analysis I have no doubt that your trading results will improve.

Japanese candlesticks are one of the oldest methods of visual representations on a chart. Great candlestick patterns have stood the test of time. At Evestin Forex we have developed a trading strategy that relies almost exclusively on candlesticks for entries. This allows us to take high probability setups on the daily chart. If you want to learn more about this particular strategy click here and we would be more then happy to show you how candlestick trading can change your life!

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How to Identify Pinbars


Author: Shanda Biggs


How many of you are visual learners? If you answered yes, then todays post is for you. We are going to be discussing a pretty common but often overlooked approach to trading. If you can master and implement the techniques, your trading will be greatly improved!

We are going to be discussing candlesticks and their relevance in the market. In this first of two posts we are going to be discussing one of the most important candlestick patterns. This is the pinbar candlestick setup. But before we dive in… lets look at a brief history of candlesticks and their relevance in the market today.

So what exactly is a candlestick? Candlesticks are said to have been developed by a Japanese rice trader back in the 18th century.  The candlestick itself shows the open, high, low and close of the past price period being measured. Candlesticks are often used in the analysis of currency charts as well as stock charts. They provide a great visual aid in determining a financial instruments next move. This is one reason candlesticks are so important. If multiple market participants from around the world are able to identify common candlestick patterns, price is going to move at these respective points.

To be able to take advantage of these movements in price, we need to know how to diagnose candle patterns and interpret what they are telling us.

How to Identify a Pinbar

The first step to be able to successfully trade with candlestick analysis is being able to identify the pattern itself. A pinbar candlestick is comprised of a long lower wick (for a bullish candlestick) and a small body that sits at the top of the candle. The opposite would be true for a bearish candlestick where we would see a long upper wick and the body of the candle sitting near the low of the candle.

Below you will see an example of each type of candlestick.

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In the examples above you will notice that the body of the candle is very small. This is exactly what we want to look for when identifying pinbar setups. We want to see that the wick size is at least 2 times greater then the body of the candle. The longer the wick the better as this shows an even stronger rejection of price.

For a bearish candlestick, we want to ensure that the lower wick is almost non-existent. For a bullish candlestick, we look for the exact opposite where the upper wick would be non-existent.

How to trade Pinbars in the Correct Market Context

Now that we know how to identify the pinbar, our next step is using the pattern in the correct market context. Is price consolidating or choppy? If the market condition is consolidating, a pinbar candlestick will not provide a great setup. We want to ensure that we are looking for candlesticks at the right places in the market. A pinbar at the end of a bearish or bullish run in price can signal exhaustion of the current trend and be a possible signal of a reversal.

Look at this example below, price has formed what we would call a textbook pinbar, when you look at the previous price action on this chart you might determine that this candlestick is a bullish candlestick after a bullish run in price.

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Therefore the market context where this pinbar formed is not correct. We would not be looking to go long off of this candlestick pattern. So when would we be looking for a pinbar such as the one in the chart above to form?

If you take a look at the below example you will understand what I am talking about. On this chart you can see that there has been a lot of bearish pressure. There has not been any pullback on this chart for quite a number of days. When we see the pinbar setup at the bottom of the bearish run we can begin to think about possible reversals. Again you can see that the bears tested lows (which is shown by the protruding candle wick) and were not able to keep price there. It is after this that we saw a huge reversal in price.

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When looking for pinbar candlesticks we want the pattern to be as obvious as possible. As you can tell from this particular setup below, the tail (lower wick) of the candlestick was very long when compared to the body and the upper wick. The tail of the pinbar was protruding from surrounding price action. What this means is that the low of the pinbar tested lows which had not yet been tested by previous price action. In other words… the tail of the candlestick literally sticks out of previous price action. These are the plain obvious setups we want to be looking for. When a pinbar has a very long wick such as the one in the example, this signals that the bears were not able to keep prices low and the bulls regained control and shot prices right back up. This is a great signal of a possible reversal.

The key takeaway from this post is that identifying these patterns is easy, using them in the correct context is a little more difficult but only trading quality and obvious pinbars is much harder. This requires you to stay disciplined to only trade the highest quality setups.  When you are trading price action patterns, being patient and disciplined is absolutely crucial. If you can stick to the obvious pinbar setups in the correct market context you will be on your way to consistent and successful trading.

Our next post in the discussion on candlesticks is going to dive into engulfing patterns. These patterns, like pinbars, are extremely powerful and give us insights into the collective market mind. Click here to learn more on how you can incorporate engulfing bar analysis into your trading routine.

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Fibonacci: History and Use in Forex


Author: Alexander Vladimirov                                                                                


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Who was Leonardo Fibonacci and what was his contribution?

Born in Pisa during the late 12th century, Fibonacci is one of the most influential mathematicians in the history of our world.  He is seen as one of the main cause for the revival of mathematics in Europe during a very difficult time when the crusades were taking place. Of his most famous works is the book called Liber Abaci meaning "The Book of Calculation".  In this book he describes new methods of doing calculations and also introduces the Fibonacci Number Sequence and Golden Ratio.

Fibonacci numbers in Trading

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As Fibonacci’s work can be used to describe many aspects of the world which surrounds us, it can also be used to make sense of the currency markets. The ratios which he’s found are also valid for us traders. By adding Fibonacci to your trading, you can locate future targets for stops and exits as well as find very accurate entry level, which should increase your return on investment, if used correctly. The most important number or ratio is the 61.8% or .618 levels. Other most commonly used Fibonacci levels are the 38.2%, 50%, and sometimes 23.6% and 76.4%.Choosing the Finonacci level you want to interact with largely depends on the strength of the trend you’re trading with.

If you have a a strong trend, which we always try to catch, you would look for a minimum retracement  around 38.2% or maybe 50%; while in a weaker trend, the retracements can be 61.8% or even 76.4%. In any case the price breaks the 100% mark of the prior move the current move would be invalidated.

Here’s a full list of the best Fibonacci levels to use:

11.40%; 23.60%; 38.00%; 50.00%; 61.80%; 70.70%; 76.40%; 88.60%; 100%; 112.80%; 123.60%; 127.00%; 138.20%; 150.00%; 161.80%; 176.40%.

Keeping it simple with Fibonacci

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Generally, the use of Fibonacci can be added to most trading strategies. However, there are many different types of Fibonacci tools you can use and it can become quite confusing. For a trader looking to keep things simple I would use the regular Fibonacci retracement tool on a 4HR chart. Always go with the trend and look to target the ends of retracements at the 61.8% level. Try to combine the Fibonacci levels with equidistant price channels. If the price is at both a Fibonacci resistance level and a trend line resistance level, then you’ll have a high probability trade setup. Stop loss can be placed slightly above the 88.6% ratio.

Evestin Forex:

At Evestin Forex, Fibonacci levels are that we use in our Satoshi Robot. The Satoshi robot uses Fibonacci extensions for TP
and Fibonacci retracement for Entry's. As we’re on the topic of simple – using trading automation alongside a manual strategy can greatly simplify and enhance your trading. Sign up below and become a part of the Evestin Forex Community! As a 'Robot trader' you get your own copy of our trading robots and space on Evestin Virtual Private Server (VPS).

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What can Automated Trading Teach you?


There are multiple ways to trade the markets successfully. No two individual traders will trade exactly the same. If you give two people the same strategy, they will interpret it in different ways and trade the strategy differently. However, both can still be successful.

Today we are going to explore a way of trading that is not common in the retail trading space. What we are going to explore is automated trading. Most people think that this style of trading is only for hedge funds and institutional investors. This is not true. Automated trading has become increasingly more available to the everyday retail trader. The trading principles applied with automated trading can be very useful to anyone, no matter what type of strategy and method of trading you are using.

The first and perhaps most important thing that automated trading can help you with is learning the art of patience and discipline. You have heard it time and time again that patience is the key to successful trading. Waiting for those “A” grade setups to solidify your trading success.

What I have learned is that it can be difficult to develop the habit of patience while trying to trade a purely discretionary trading system. You are so exited about trading and being in the market that you want to jump in at every opportunity. This is detrimental to your trading success. What you want to do is develop the habit of taking trading opportunities that strictly match your trading criteria.

So what better way to do this then by having it done for you? When the computer executes your trades you are free to go about your day and not worry about your positions. If you have predefined all aspects of your trading system then what is there to worry about? You know your maximum loss, profit targets and how your trade will be managed.

Strict rules based trading forces you to only take trades that match your trading criteria. This is very important as this simple action allows your edge to play out.

When a trade is not inline with your strategy, it is not executed and you do not have the temptation to take trades that do not alight with your trading plan.

This brings me to my next point, which is sticking to your rules with military grade precision. To ensure we are taking proper trades we need a set of rules. Your rules should be in the form of “IF” “THEN” statements. What I mean here is that “IF” X happens, “THEN” B happens, you execute some sort of action. Stacking your trading rules into if then statements will help you to execute your trades like a robot. When we trade in this way, we are less affected by emotions.

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So what exactly is an IF THEN statement and how do you go about building your trading plan around them? Well… it starts with being very specific. You want to be as specific as your can when defining your trading rules. For example, if you are trading a support and resistance based system, you must define EXACTLY what support and resistance means to you. That way when you see it on the chart you do not have to hesitate to add your support and resistance level. So for you… does support and resistance mean a point where price as touched 3 or more times? If yes, here is an example of a rule you could put into your trading plan that refers to support and resistance.

“I only consider support and resistance levels with 3 touches or more”

A simple statement such as this is what will keep you objective and out of trades that you should not be in.

The next component of the IF THEN statement is.. you guessed it.. the THEN. So now that we have our first rule defined, which states you will only take trades with support and resistance of 3 touches or more… then what? Well, in our plan we would want to specify the action that would follow the IF statement. So IF this happens, THEN I will take the following action.

For example, if there is support and resistance as defined in my trading plan, then I will look for a price action candle signal that is rejecting the level. To break this down into another IF THEN statement we will then say IF we have support or resistance, THEN we have a price action signal candle, I will set a pending order. In this example you have your IF statement referring to support and resistance, then you look for the signal and take the action step.

Of course this is a very simple example but this is the mental framework you need to base your trading on. It will keep your mind thinking systematically and when we follow a system perfectly is when we get results in trading. As traders we must allow our edge to develop with no emotional intervention. This is the main point that automated trading can teach you!

Trading with robots will allow you to develop a systematic mindset quicker. Take the steps necessary today to ensure your long term success in the markets. By signing up for your free trial at Evestin Forex you will get access to our amazing portfolio of robots. Not only will you get to trade these robots but you will also develop the mindset of a professional trader along the way. Click HERE to start your free 30 day trial!

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Developing Confidence in Your Trading Strategy - How to be solid as a rock while trading

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Developing Confidence in Your Trading Strategy - How to be solid as a rock while trading


 By Alexander Vladimirov

By Alexander Vladimirov

 

                                 

The importance of Strategy

As with any profession, you need to put in time and effort to be successful at it. Your strategy is the pillar that your trading will be based on. If your strategy isn’t a good one, you will fail in the long-run. A strategy is generally something which is built over a vast amount of time after many trials and errors. Of course, there are a vast amount of strategies that exist, but how do you choose the correct one? We’ll tackle this topic in another article, but this is why it’s so difficult for newcomers to get started and not lose all of their money really quickly.

Evestin Forex robots will allow you to inherit already built strategies and help you develop into a profitable trader no matter what your experience level is. If you have your own strategy – you can combine it with some automation. If you are new, you can see how, over time, a good strategy and discipline equal positive results, until you can develop your own.

The importance of mind-set and self-awareness

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Mindset is very important because things can get really ugly if you’re in a negative trend. You start to doubt yourself, the market, the broker and everything around you. New traders often enter this cycle and will start to revenge trade (this is when you double your lot size after an already lost trade in order to win back your money and even profit). Revenge trading is usually done shortly after the trader closes his trade.

Tip of the day:  After a bad trade – step back, relax, take a walk and come back to the markets in the next day. There will always be opportunities on the market – it’s important you have the money for them. Use losers to learn a lesson and strengthen your trade execution!  Always make your trade with a clear and calm head!

The importance of numbers

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At the end of the day, trading is a numbers game. Before entering each trade you should know a few things.

  • what is the long term trend
  • based on the long term trend – how many pips am I going after (take profit)
  • where will I place my stop loss
  • what is my margin level and risk tolerance
  • If you know your numbers you will build confidence because you will know beforehand what to expect. If you have a good strategy and know your numbers, you will eventually be in profit.

The importance of patience

Last but not least is patience. This skill encompasses all others above. Patience is the skill that allows you to enter the trade at the correct moment. After a certain amount of experience, there are things you see in the market, just by looking at it. You have a better sense of the direction it’s going to go. While you have to follow your strategy very clearly, sometimes it would be needed to withhold from entering a trade, or maybe exiting one a bit earlier. These should be rare cases, of course. Patience is also what generally leads you to be profitable as it will allow you to let your running trades run until the end. Many traders suffer from closing their winning trades too early. This is something that will make the numbers not add up in the end.

Our robots have all of these skillsets integrated. Take your trading to another level by starting your free 30-day trial below:

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The Importance of Trading on Higher Timeframes

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The Importance of Trading on Higher Timeframes


 By Shanda Biggs

By Shanda Biggs


Today’s topic is one that can drastically change your trading results and the way you see the market. If you implement what is suggested you will not only improve your trading but you will also reduce emotional trading. What we will be discussing is the importance of trading on higher time frames.

Most new traders do not want to discuss this topic because it is not pretty or exciting. Trading on a 5 minute or a 1 minute chart can seem much more exciting because markets are moving constantly and volatility can seem higher. Telling new traders to be patient and disciplined by only looking at charts a couple times per day makes trading seem a lot less glamorous

But what if I told you that by implementing this tactic, you would become a better trader and have a better chance of success? This is what we want for you, so we are going to outline some of the positive things that trading higher time frames can do for you.

Clean Price Action

The great thing about trading higher time frame charts, particularly daily charts is that you get clean price action. Take a look at the image below.

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This is a daily chart of AUDUSD and we can see that price is in a clear downtrend. We are able to clearly identify key points on the chart such as the swing highs and lows. This is crucial. We want to be able to analyze the market with clean price action.  When you have clean price action it becomes easier to identify trading opportunities.

Now if we look at the same chart on a 15 minute timeframe, we can see that price action is choppy. It becomes difficult to determine the overall direction and trend on a chart such as the one below. Price moves sporadically and violently in one direction and quickly reverses. We want to be crystal clear with what we see on the charts and from experience, trading on the daily chart and even weekly chart is best.

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The big money in the market, being banks and institutions keeps their focus on daily and weekly charts. If we want to make money trading doesn’t it make sense to follow what the big players are doing? Following the lead of institutions and banks is what we want to do and this is best done when sticking to long-term charts.

Accurate Trading Signals

The daily chart is the most significant timeframe because the most traders are paying attention to it. When more traders are looking at the same signal, there is more demand in the market and price is more likely to move. This makes signals on the daily chart much more accurate.

Price has the chance to move for a whole day before the daily candle closes. This gives us valuable information and insight into what happened throughout the trading day. When we trade on a higher time frame such as the daily chart, there is more price action contained within a single bar, which gives more weight to that price action signal.

The same price action signal such as a pinbar will not hold the same significance on a 5 minute chart as it would on a higher time frame. This is an important point to keep in mind. We want to be sure we are trading high probability setups and these accurate signals come from trading daily and weekly charts.

Clears your Mind

 One of the best benefits of trading higher time frames is it allows you to develop great trading habits. All of the best traders have developed the habit of patience. This attribute could be the single most important thing you develop throughout your trading career. If you do not develop patience, you will not make it as a trader.

When you wait for higher time frame signals, you are not required to stare at charts all day. You can do other things with your time. This develops mental strength and discipline. Being a disciplined trader requires you to only take top quality trading setups. This reduces the tendency to over trade and over analyze the market. Checking your charts a couple times per day makes it easier for you to stick to your initial market bias and not be swayed by each tick in price.

In trading, less truly is more. We want to take less trades but more accurate and high quality trades.  When we are taking the best trades and signals, we are building a strong foundation for success. This is much easier when done on the daily chart.

The trading strategies implemented at Evestin Forex align with all the principles discussed in this post. By trading higher time frames such as the weekly and daily chart we are able to develop a sustainable edge in the market. The highest quality setups and patterns are detected by our robots and executed automatically. You will not find our robots opening trades every single day. There could be a couple days where you see no trades. This strategy allows us to limit risk and ensure that our traders are not over exposed in the market at any given time.

If you are interested in giving us a try, click the link below and signup for your free 30 trial. www.evestinforex.com/pricing Learn how true professionals trade and the strategies they implement.

One last note, by focusing on high quality trades you eliminate the tendency to over trade and trade emotionally. Looking at the charts a couple times per day allows your mind to be poised and relaxed. This is mindset we want when approaching the markets, we want to be as objective as possible. When we are objective and focusing on higher time frames, we have the best chance of success in the markets.  



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Why 90% of Traders Fail

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Why 90% of Traders Fail


 By Shanda Biggs

By Shanda Biggs


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When you first were introduced to forex trading what made you take the leap and want to learn? For most of us, it was the idea of fancy cars and easy profits. This is the perception that is portrayed on the Internet of what trading the forex markets is like. While this sounds like an amazing endeavor to pursue, many are blindsided by the realities of being a professional trader.

In this post, we want to look at some of the reasons why over 90% of traders fail. This statistic seems quite large. But when you think about it, this can be applied to any other area of life.

Becoming a professional at anything takes a great degree of time and effort. For a second lets compare trading to professional sports. Most professional athletes started their career when they were very young and had a vision for where they wanted to be. They worked tirelessly to become a professional in their chosen sport. Not all people who play sports at a competitive level are selected to play at a professional level. It is only the few that work harder than everyone else and go after their goal with massive ambition that succeed. These people believe in themselves and have a vision for their life.

Be a Professional

Trading the markets is no different. If you want to become a full time trader it requires a lot of dedication and hard work. Do not expect to be making large returns in the first few months, or even the first few years. Be patient and trust the process.

Adopting a long term mindset suppresses the desire for immediate gratification. Seeking immediate gratification is what causes people to overtrade, emotionally trade and ultimately lose money.

Most people want immediate gratification and this is why they fail at new business ventures. Which brings me to my next point. Trading is not like a traditional brick and mortar business. You do not have a physical location, inventory, you do not have to make sales, no staff and no products. This clear difference is why most people do not take trading seriously. It is not like a restaurant where you have to show up at the location to sell your sandwiches and then pay your electricity bill.

Your trading revenues and expenses just come in a different form. Your wins are your revenue and your losses are your expenses. If you can think about trading in this way you will be much better equipped to succeed in the long term. Trading is a real business and it needs to be treated like one. So what allows business to succeed in the long term? A plan!

Develop a Sound Plan

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A plan for your trading business will be the guideline that you follow before you execute any trades. You should consult your trading plan before taking any entries and ensure that all of your criteria is met. Sticking to a plan and system is what allows any business to be successful.

For a traditional business, before getting any sort of financing from a bank or investors, a business will have a plan laid out that shows how they plan to profit in the years to come. The same should be true for your trading business. You need a trading plan for how you plan to make your profit over the long term. The more you stick to your plan and do not deviate, the more likely you are to make money and become successful.

So what now?

One way to help keep you on track with your trading plan is through automated trading systems. If you can program your rules into a step-by-step system you can avoid the temptation to trade emotionally. This allows you to stay disciplined and build good trading habits. Professional traders stick to their strategy with military grade precision. If you can have a robot execute your trades for you, you remove yourself from the equation. You do not have to worry about taking entries that do not match your trading plan. Everything about your plan is predefined. If you are looking for some tools and strategies to help you on your trading journey, take a look at Evestin Forex. Here we have pre built trading systems to help you get started with automated trading. Why not trade a strategy that has already been proven to work on a live trading account? To learn more about our strategies check out this link where you can see our live portfolio of trades https://www.evestinforex.com/forex-trades

With anything in life, there will be winners and losers. Trading the markets is no different. Not everyone will be a successful trader. If you can implement the ideas we outlined in this post you will be better equipped to become a successful trader long term.

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What are the new ESMA rules for traders and how it will impact your trading?

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What are the new ESMA rules for traders and how it will impact your trading?


 By: Alexander Vladimirov

By: Alexander Vladimirov


This March, the European Securities and Markets Authority (ESMA) announced its intentions of imposing new rules regarding the trading industry. The new rules are likely to come into effect from late June/early July.

What are the restrictions?

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     ESMA will impose five key measures:

  • An imposition of leverage limits – max 1:30

  • A Margin Close Out (MCO) rule of 50% on a per account basis

  • A negative balance protection on a per account basis – broker still has to pay the liquidity provider though, but you won’t have to pay the broker

  • A restriction on incentivisation of trading

  • A standardised risk warning

  • Prohibits the marketing, distribution and sale of binary options

 

It’s not the end of trading industry, but rather the beginning…

Regulation is something that can either hurt an industry or help it. In most cases, it hurts it. In this case it’s being used well, as all new rules actually favor the trader. The amount of people who go into forex trading not knowing anything about the skill or industry is tremendous. These regulations will, at least, offset their losses somewhat and offer additional stability to the trading account of the retail client. The amount of noise created behind the regulations will also cause traders to seek out more valid information, and thus be more aware of what they are getting into. The new rules are a good step forward to reducing the bad rep this industry has. 

Here’s an example of the margin requirements with 1:100 (A) and 1:30 (B) leverage: 

A. Trading 3 lots of EUR/USD using 1:100 leverage with an account denominated in USD:

Trade size: 300,000

Account currency exchange rate: 1.200

Required Margin: 300,000 / 100 * 1.200 = $3,600

 

B. Trading 3 lots of EUR/USD using 1:30 leverage with an account denominated in USD:

Trade size: 300,000

Account currency exchange rate: 1.200

Required Margin: 300,000 / 30 * 1.200 = $12,000

With a $10,000 account you won’t be able to place a 3 lot trade with the new rules on leverage.  Your highest trade size would be 2.5 lots in this example.

Nevertheless, if you want to take higher risk you still have more than enough opportunity to do so. Placing a 2.5 lot trade with a $10,000 balance would still be deemed quite risky in the eyes of Evestin Forex.

But I want my leverage!

 If you still can’t get around having to deal with the new rules on CFD’s, there is still an option for you. If you have enough experience in the trading industry, you may opt to sidestep the new regulations by becoming an ‘'elective professional'’. This will allow you to receive the old leverage amounts. To do this, you would need to pass a qualitative test as well as a quantitative test. Check with your broker for extra information.

Evestin Forex – where do we stand?

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We welcome this change as it gets rid of high risk strategies that just bring a bad name to robot trading. At Evestin Forex we are known for our low-risk trading. We believe in patience and the long-term game when it comes to the market. The new rules will have no impact on our trading robots as we use small leverage, and no more than 2% risk per trade. If you want to know your trading will be in good hands and feel secure even after the changes take effect – register for a free 30-day trial and get your trading with Evestin Forex started! 

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How to achieve Forex success using Law of attraction.


 By Ivo Luhse, 'Robot Trader' & Founder of Evestin Forex

By Ivo Luhse, 'Robot Trader' & Founder of Evestin Forex

Follow me on social media for latest trading updates


Visualisation helps us to achieve goals

Escaping the workday routine, getting out of a rat race and achieving financial goals is every independent trader's dream. Here, we look at how to apply the powerful law of attraction to work towards life goals, especially in terms of visualising Forex trading success and performing daily affirmations to make progress towards those long-term objectives.

How to harness positive attraction

Successful people including entrepreneurs, sportspersons and traders who follow the law of attraction believe that everyone can attract what they want into their lives – including passive income and wealth – by focussing on it. In life, we receive what we ask for. By using the power of attraction and setting our minds on success, we can attract it over time as our thoughts turn into things. Concentrating on the positive helps considerably – especially when combined with meditation, visualisation and action. Conversely, pessimistic approaches and negative ways of thinking sometimes lead to downward spirals, or at best to overshadowing clouds of doom, gloom and negativity.

What the law of attraction tells us

Although puzzling to some people, it is perhaps the very mysteriousness of the law of attraction that causes so few of us to be aware of how much it can make an impact on our wealth. Its devotees, on the other hand, understand that our human personas transmit and receive emotions, thoughts and energy – both positive and negative. The cumulative effects of these will govern what we receive and, consequently, our prosperity. This hidden potential to create our future or build passive income is not a new principle; Buddha taught that in life, we become what we have thought. The principles of Karma also embody this way of thinking, based on the cycle of cause and effect. Popular as a belief in various societies and at almost every level, Karma holds that what we give out to the world probably returns to us eventually, as part of a full circle. In other words, sooner or later, we reap what we sow.

Why affirmations are important

Writing down our goals at the outset is important, but repeating them to ourselves every day is a key part of achieving them. Regular affirmations propel us in the direction of our life goals, whereas visualising the result(s) of our efforts helps to strengthen motivation, deal with stress, keep us on track and build confidence. To these ends, dream boards or even simple pictures on our trading desk help maintain motivation and focus. Regularly repeating your goals and affirmations every morning and every evening will create a permanent switch in your mind and make your goals a reality.

Here are few sample daily affirmations for Forex trader to be repeated every day: 

  • I'm a consistent winner!
  • I follow my trading plan!
  • I will have an amazing profitable trade today (visualize what you expect the market to do) 
  • I will have very productive day today
  • I will make xxx $ this year
  • I will quit my job and be a full-time trader
  • I will workout today and eat healthily  

Write don't your own affirmations and keep them on your trading desk. Repeat them every day,

Ivo forex trader

What will happen

Meditation releases negative energy and helps to maintain focus on our goals, as does keeping a gratitude journal of our achievements and making it a habit. Taking regular concrete steps towards our goals is important, along with stepping outside our comfort zone to achieve positive results. Every new decision takes us on a certain path and builds confidence.  Finally, apart from improving our health and self-confidence, we can use the power of attraction to move away from rat race towards harnessing financially productive habits, using visualisation techniques and removing negative blocks from our thinking. Success and abundance will follow.

As New Year approaches, this is an ideal time to write down new goals for 2018 and visualise them, regularly. We wish you happiness, prosperity and wealth in Forex trading over the coming year.

Resources: Law of Attraction by Jack Canfield https://www.amazon.com/Jack-Canfields-Key-Living-Attraction/dp/0757306586



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5 reasons why you should trade with a mentor.


By Ivo Luhse CEO & Founder or Evestin Forex


Forex mentor

When I first discovered Forex trading back in 2006 I was excited to go in alone and create my own strategy. I wanted to trade my own way and just be my own boss with my own ideas.  Sadly while I had all this enthusiasm I really had no idea what I was doing. And while I purchased several ready-made strategies online and followed people on forums the real difference happened to me when I actually started to work with a mentor - A real trader. It made a massive difference that I could actually see in a Live trading room how my mentor trades in a Live market. 

Here are 5 reasons why you should trade with a mentor.

  1.  Mentors provide information and knowledge - You can tap into a wealth of knowledge straightaway and make a massive shortcut to your learning curve. 
  2. Mentors can see where you need to improve where you often cannot - We often ‘know best’ for ourselves but having someone else actually looking at your trading can find hidden mistakes you will never find by yourself.
  3. Mentors offer encouragement and help us going forward - We all know how hard trading is. And it is even tougher when you’re on your own. Mentor will push you forward and offer encouragement when you are down and need it most.
  4. Mentors can be connectors - If you do well mentor will back you up and can connect you with amazing opportunities.
  5. Mentors have the experiences you can learn from to prevent making the same mistakes beginners make - Mentors have helped several traders just like you and can immediately put you on the right track so you don't waste years of just doing the wrong stuff (I was stuck doing wrong stuff for 5 years 🙈)

If you’re wondering who is my mentor? 😊 It's none other than 5-star reviewed Andrew Mitchem - The Forex trading coach. If you’re serious about your trading I can’t recommend him highly enough. Also if you trade with my robots you will recognize one of his trading strategies from Satoshi robot. My robot Satoshi was built based on the strategy I learned from Andrew so taking his course will help you to understand all the details how our best performing robot Satoshi trades.

You can check out Andrew’s page below.


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