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The Importance of Keeping a Trading Journal


Author: Shanda Biggs


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In todays post we are going to discuss the importance of keeping a trading journal. A trading journal is a critical component to your overall trading plan and future success.

In any endeavor that you have ever gone through, you cant expect to keep all the information in your head. Take going to university, you cannot expect to get good grades unless you retain the information you hear on a day to day basis. Inevitably you will write some things down, refer back to those notes and then learn from them. 

The same is true for trading. In order to consistently grow as a trader you must have something to measure your progress and keep you on track. This is what a trading journal does. It is a tool that allows you to document every single trade and action you take within your trading account. Such as setting take profits, stop losses and trailing stops. The more you measure, the more you can fine-tune your approach and become a better more consistent trader.

In saying this, there are 3 main things that keeping a trading journal can help you with and we are going to discuss them in greater detail below. But to outline them now, the 3 things are REVIEW – LEARN – GROW.

Every successful business keeps documentation of the work that they do. Progress reports are essential to a company’s growth. It gives the company something to measure their performance by and helps them to fine holes in their current strategy, make improvements and do better on the next project.

This is exactly how you should look at keeping a trading journal. It is essentially your report card. You can measure your success and then make improvements. The more in detail you measure your trades, the more in depth you can fine-tune your approach. 

With that beings said the first point we want to touch on is…

REVIEW

 By documenting all of the details of your trades you are able to do an in depth review of the trades that you take. Things to keep track of are

- entry date

- exit date

- entry price

- exit price

- trade management details

- slippage

- commission

- strategy

- profit/loss

- original target

- notes

Of course do not be limited to this list but these are just some ideas that can get you started on the right foot. By consistency reviewing your trades you are able to see where you may be falling short with your trades.

For example, if you keep track of your original take profit levels and where you actually exited the trade, you may find through careful review that you are closing out positions early that ended up going to your original take profit. This can be very powerful because by simply reviewing all of your trades you are then able to make these changes that can have a huge impact on your results.

Reviewing your trades is essential because by reviewing your trades you become more aware of what your best trading setups look like. When you know what your best setups look like you are able to execute the trades easily and effortlessly.

Other important details to include in your trading journal are screen shots of each trade and detailed notes on why you executed the trade, what the setup looked like at the time, why you managed the trade in the way that you did and why your take profit and stop loss levels were set in the way that they were. These notes are essential to fine tuning your approach. You may find after a large enough sample size that you are not great at executing a particular strategy. You can than make the decision to not trade the strategy entirely or fine-tune it in a way that suits your trading style.

LEARN

The only way to learn from your trades is by careful review. After reviewing all of your trades you are than able to pick out similarities and differences between great setups and not so great setups. By doing this you can tweak your approach and implement action steps to ensure that you do not make the same mistakes twice. When you see a mistake being made multiple times within you trading journal you can than write that mistake down to ensure that you do not make it again.

For example, “I find that pinbar candles in a down market that close as down candles to not make for great buy signals.” By making these observations in your trading journal you can greatly improve your consistency with executing the same great setups time and time again.

GROW

 By carefully reviewing and learning from all of your trades you are able to grow as a trader. Growth only happens by learning from previous experiences and this is exactly what keeping a trading journal allows you to do. You are able to sort through all of your previous trades in an efficient and effective manner. When you identify that you are making the same mistake within your trades you can then put a rule into your trading plan so that you do not make this mistake again. This is how we grow as traders, by careful and consistent review. Keeping a trading journal is an absolute must for all professional traders. This is why we have developed a cutting edge trading journal for those involved in our DARA trading program.

If you want to be a professional trader you must do what professional traders do. They all keep journals and this is why you must as well! We make it easy for you to review your trades, learn and grow as a trader! This is why we are giving away our amazing Journaling DARA software package for FREE. With this software you are able to review and analyze your trades in great detail. All you have to do is create a free account and download the software package. Click here to access Journaling DARA.

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Why Discipline in Trading is SO Important


Author: Shanda Biggs


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I have learnt over the last number of years trading that there are a handful of things that make traders successful. I found a quote that I would like to share with you that outlines one of the most important, if not the most important thing that allows traders to sustain success in the markets.  

“Suffer the pain of discipline, or suffer the pain of regret”

This quote is simple and to the point. Practicing discipline on a daily basis is so important if you are a trader. It simply means that if you are not disciplined, you will not be a successful trader.

It is so important that we do not get caught up in the hussle and bussle of the market.  The market is a fast paced and exciting environment to be in. If you are not careful, the excitement can consume you to the point where you experience massive highs in your emotions while trading as well as lows. It is our job as traders to keep our emotional spectrum in check while being involved in the markets. We want the pendulum to be in complete balance. This allows us to look at the markets objectively and not through the lenses of our emotions.

Have you ever wondered what truly makes great traders successful? It has everything to do with the above quote. Great traders have incredible discipline. They have the discipline to take great trading setups but also to stay out of bad ones. 

They understand that sometimes the most profitable position is not being in a position at all. Yet they also know when to take action. They become masters and students of the game. 

Before you can be a disciplined trader you first need a vision. Why did you start trading in the first place? What drew you to the markets? Do you want to create freedom in your life? Develop and learn a new skill? Whatever the reason is. Be sure that you are clear. Nothing stops progress like a cloudy vision. When you have a vision and see where you are going and what you need to do to get there is when you take the action steps necessary to walk along the path. 

Create a vision for your trading and for your life and see where you are going and what you need to do to get there. Then you will take the necessary action steps to bring the goal closer to you.

How do you develop a clear plan to get to your trading goals?

One of the best goals I have set for myself and I recommend that you set as well is… making it a goal to follow the rules of your trading plan everyday. If you can do this one simple thing I guarantee you will see success in the markets. Creating the habit of following your trading plan increases your discipline.

One tool in particular that has helped many traders stay disciplined in the market is the use of algorithmic trading robots. These bots help keep the trader on track by only executing trades that are according to the trading plan.

Where many traders fall short is they do not have the discipline to follow their plans. Even a small deviation in the plan can be detrimental to a trader’s long-term success. Why?

Making small changes to your plan on the fly is trading based on your current emotions at the time. Someone who is disciplined would trade their plan no matter what. A trader making emotional decisions changes the plan from trade to trade and wonders why they are not improving.

Trading with robots helps you to not get caught in the heat of the market. It helps reduce emotional trading. You do not have to question your setup, you just execute because the bot tells you that there is a great setup available. Then overtime by following your plan, your edge presents itself.

Not following a set routine is why most traders are not improving. When you make changes to your trading plan on the fly you are not basing your decisions on concrete rules and data. If you have the data and back testing proof to backup your decisions, then you can make changes to your trading plan. But until then, stick with the rules you have set out for yourself. Only making real changes once you have the proof that the change will benefit you in the long run.

I have learned that keeping your trading plan concise and to the point is most beneficial. By having a focused trading plan you know exactly how to execute each and every position that you take. When your trading plan is focused, it is easier to be disciplined. You know what you are looking for and can execute accordingly.

A trader can have a HUGE advantage by using robots to aid in their trading. Many traders fail due to their poor psychology and mindset. If trading with the assistance of a robot could help you develop the discipline to be a successful trader than it would be a no brainer. That is exactly what robot trading will help you with. Being more disciplined! Allow trading with robots to help you follow your trading strategy!

At Evestin Forex we have developed some pretty great trading robots! We discuss each strategy that we trade in great detail in our FREE ebook. Click the here to download your FREE copy!

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The Traders Mindset


Author: Shanda Biggs


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In todays post we are going to discuss something near and dear to my successful traders hearts. It is the mindset required to become a profitable trader. There are many attributes that make traders successful but in this post we will narrow down on the two characteristics we believe to be most important.

A certain mindset must be attained in order to succeed in any area of life. Trading is no different. Forex trading requires the fine-tuning of a handful of characteristics in order to be successful. These specific traits will be identified a little later in this post.

But first, I want you to think about something… “Is success for a trader really different than attaining success in any other field of life?” To be a professional sports player, is there a different mindset required than becoming the CEO of a fortune 500 company?  

No. The skill set may be different but the mindset for achieving success is transferable across all fields no matter what you are trying to achieve. If you study the lives of successful people in different areas of life you will find a common thread that runs throughout. 

 People who achieve high levels of success all have one thing in common. No matter the particular area of life they chose to master, they all have a high level of belief in themselves. A confidence in who they are and their ability to achieve what they have set out to achieve.

This is the most important attribute that you need to develop. If you develop an unshakeable belief in yourself there is nothing that can stop you on your journey to success. Why? Because when anything comes against you, you still take action. Because you believe in the end result. You know with total confidence that you will reach your goal so you let nothing stop you. This is the unshakeable attitude you must develop to be a successful trader.  

With that being said. There are two particular mindset characterizes that are essential for success in forex trading.

Discipline 

The first is discipline. You must develop a rigid routine that you follow to a tee. Forex trading requires that you execute the same actions day in and day out. You must know how to follow a plan and stick with it. This will ensure your long term success. Where I see many traders fail is not following a strict trading routine. Their emotions sway their actions and this causes inconsistency in the routine. An inconsistent routine is a mess. There is no structure to follow. Lack of structure makes it easier to trade based on your current mental state and emotions.

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Since this is what we want to eliminate in our trading we want to ensure that we have a strict trading routine and follow it. Having a solid trading routine makes it easier to have discipline in the first place. You know the action steps that are required of you every day and you execute them.   

What is the next attribute that all successful traders have?

Patience

You have probably heard about having patience time and time again. It is so important that you develop an attitude of patience when trading the markets. It will ensure your long-term success. How? 

When you have patience you wait for the right setups to present themselves to you, you take trades that only meet your trading plan criteria and you do no have the fear of missing out. Patient traders understand that the market has an abundance of opportunities and that if the trade does not look quite right, that there will be another opportunity for them to capitalize on.

Great trades happen often but it takes a patient trader to capitalize on them. Not allowing the emotions of the market reel them into “Okay” setups. 

Patient traders play the long game. They understand that trading is not a get rick quick game and that true success in the markets takes time. When you understand that, you do not try to catch every trade. You wait for the perfect trades to present themselves and you execute. Suddenly you are not lured into okay trading setups but you only take pristine setups that perfectly align with your plan.  

I cannot stress enough how important these two qualities are to your success as a trader. If you want to learn how to develop these qualities I would recommend doing personal development. This will help you to get into the mindset of success. Patience and discipline are needed to success in any area of life but they are especially important for trading. If you can master these two areas I have no doubt that you will be on your way to consistent and profitable trading.




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First Ever Algorithmic Trading Event to Be Held in Dublin


By Ed Gould


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Trading the markets using trading bots may seem like it is something out of the future but the artificial intelligence (AI) of the newly developed DARA trading advisor will pit humans vs machines this October in Dublin. The capital will see its first ever algorithmic trading event on 24th October at the Shelbourne Hotel. The event's organisers have designed it so that both traders and programmers can learn about the latest advances in AI and financial market trading and to really test just how humans vs machines bear up under pressure. 

In a first-of-its-kind event, the Decision-Aiding-Robo-Advisor – otherwise known as DARA – will provide all the information needed for traders to make better-informed decisions about which investments to make and, crucially, which ones to ditch. Although financial traders have been making such decisions for a long time, DARA provides the edge that makes a real difference. The developers plan to showcase just how effective their bot is for traders and investors at the event which will see DARA interacting with real people making the sorts of financial decisions that are made every day. 

DARA's CEO, Ivo Luhse, has 13 years experience in trading in the financial markets and five years of experience developing trading bots for the sector. He said: 

Humans are awesome, our brains are like a super-computer that can deal with unexpected and complex problems. But we have a poor memory, we can’t multi-task and we’re slow at processing large amounts of data. This is where computers excel. I believe in the future of humans plus a machine.

The way in which trading bots work is by following predetermined trading rules. In the case of DARA, however, it is the way in which the algorithms behind the system optimise outcomes to each individual investor that make all the difference. Essentially, DARA scans all of the data surrounding the financial markets rapidly – something that no individual trader could do. It then assesses the markets for the best trading opportunities and manages trades on behalf of the individual. The showcase event is designed to demonstrate just how much of an advantage deploying a trading bot that has been built around adding value to professional financial trading can offer. 


What is unique about the Dublin event is that it will show how DARA is different from any other trading advisory systems. Since DARA is an interactive bot that requires the active input of a trader or investor input, the system allows the individual and the bot to build a relationship and to work together as a team. DARA trades using Trend following, Counter-trend, Momentum, Sentiment, Longer-time frame and Shorter-time frame strategies to make its suggestions. Anyone who has harnessed the power of AI in their daily lives from something as simple as auto-suggest algorithms when surfing the web will be able to grasp the potential of multi-tasking in the background to find the best trading opportunities that the investor always retains control of. 


Results from the Humans vs Machines showcase are likely to be exciting and fully demonstrate how trading bots are likely to soon become the norm in the sector. Luhse, who has been heavily involved in developing DARA as well as the Dublin event, went on to add: 

It’s not about recreating the brain. It is about using cutting-edge technology to make our lives better.

The algorithmic trading showcase event will take place on 24th October from 6:30 pm at the Shelbourne Hotel at St Stephens Green. Reserve your free tickets here: http://meetu.ps/e/FSdLW/xbBC3/f


DARA is also showcasing in Web Summit 2018 in Lisbon, Portugal from 5th to 8th November  as a new ALHA start-up in the fintech sector. This is the largest technology event showcasing the latest innovations in new tech on the planet.

Tickets to Web summit 2018: https://websummit.com

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Are you ready for a totally NEW trading experience?


By Alexander Vladimirov


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Being consistently profitable from the Forex market on a year to year basis is definitely not something that most traders or casual investors can boast about. As is well known, most people lose their money mainly because of two reasons – they don’t have the right trader mindset and they don’t have the necessary trading knowledge.

That’s why we’ve worked long and hard in making our new robot trading system which will show you how to think like a trader and increase your trading knowledge. It goes by the name ‘’DARA’’ - Decision-Aiding-Robo-Advisor.

 

Robots are great for doing ‘Robot’ things

The problem is with human perception of robots. Robots are great with doing Robot things like multitasking and processing large quantities of data very fast. When implementing a strategy into an automated trading system, we backtest the strategy for a very long period of time before actually releasing it as a product. The goal is for the robot to show consistent profits on a long-term basis. The bots might not always take trades that end up winning, but the problem comes from people not having the right mindset for trading and not actually understanding the robots and what they are supposed to do.

Robots are tools for traders. Only when traders learn how to use this tool and have the right trader’s mindset will they become successful traders. The whole idea of DARA is to use modern technology to teach the trader how to think like a trader and show you different trading strategies. This way you'll get used to taking responsibility for your trading decisions along with how the markets work. This is why our new system allows you to receive a message regarding any trade the robot wants to take, and also allows you to decide whether you want to enter that trade or not, by simply selecting ‘’YES’’ or ‘’NO’’. 

 

How Can You Grab the Full Potential of the Market?

The market generally has three stages – trend, consolidation, reversal. You want to be able to take advantage of the long-term trends and hold on to the profitable trades. However, during these trends we have pullbacks and reversals. DARA trading system combines all of the above. You will have one strategy dedicated to catching the long trends and one strategy catching the reversals. This way you’ll be able to be sure that you don’t miss out on the great opportunities the market provides us, because you’ll be catching the greater amount of movements.

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Overall, DARA incorporates 6 different trading strategies for any market condition. We'll also have a momentum strategy, a short time frame strategy for intraday traders and long time frame strategy for end of the day traders. Interested in Crypto? No worries - we got you covered there as well with our special strategy for Crypto currencies that exploits the strong volatile moves in this new asset class.

It gets even better!

If you are not sure about some trade and whether to choose to enter it or not – no worries! As our member, you will also be a part of a successful trader community in which our trading mentors will be commenting on the trades which DARA suggests for us. This will give you an extra sense of security in your decisions. We will also be providing you with Live trader training webinars to further understand the DARA systems and improve your trading skills.

The best thing about it is that DARA will be much more personal than any other automated system out there as it can adapt to each traders needs and personality. Do you like to be in lot of trades with small risk and be very active trader? - DARA can do that for you. Or do you prefer to be very selective with your trades while taking larger risk per trade? - No problem DARA can do all that for you. With 6 different trading strategies you'll have plenty to choose from. Traders can choose the risk levels, currency pairs and markets they want to trade in.

 

Sounds Good! How Can I Start?

To learn more about DARA and how to take part in this new revolutionary way or trading CLICK THE BUTTON BELOW

 


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What is the BEST Trading Strategy in the World?


By Ivo Luhse CEO & Founder of Evestin Forex


Best Trading strategies

Trading is so much more than a trading strategy.

Yet every beginner trader is convinced that the secret of their trading success lays in finding the best trading strategies. So they tirelessly use all their efforts and spend sometimes years trying to find the best trading strategies, the 'holy grail' of trading.

Where, in fact, the secret of success lays within the trader themselves.

The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading…

— Victor Sperandeo

The trading strategy is only a small part of what trading for a living really is.

To be a successful trader you need to HAVE:

  • The discipline to follow the strategy,

  • The confidence in your own ability,

  • The grit of a trader,

  • You need to have the mindset of the trader, you need to think like a trader…

To be consistently profitable trader you need to KNOW:

  • How the markets actually work,

  • How the market seasonality works

  • how the probabilities work,

  • What to expect from trading.

  • And truly accept and respect the risk.

And as great as automated trading systems or trading bots are, they can't do any of this for you.

You need to learn how to think like a trader.

Yes, the trading bots can execute the trading strategies perfectly, manage your risk and trade by the rules. But the trading bots will not manage themselves.

For starters, you need to learn the basics of how to manage and operate the bots. How to use your trading platform. How to give instructions to bots and what instructions to give.

You need to master your emotional disciple and only then you will master the bots.

For this reason, With DARA we created an 8-week long Algo trader Mastermind course where you will not only learn how to trade with automated trading systems and all the strategies bots use. You will also learn how to think like a trader, how to set up your trading as a business and how to develop all the skills necessary to become a successful trader.

To learn more about the Algo Trader mastermind course CLICK THE BUTTON BELOW


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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.

To find out more about DARA click the button below.


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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 button below.

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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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