HOW DO YOU MAKE MONEY TRADING THE MARKETS?

Comment

HOW DO YOU MAKE MONEY TRADING THE MARKETS?


By Ivo Luhse


Watch the 6-minute video below to learn the 'secret' mathematical formula that makes BIG money for Professional traders (and Casinos) while all the novice traders just chase the winners and end up being broke.

Will your trading strategy make money long-term? Are you trading a strategy that is doomed to fail? Using DARA Strategy Expectancy Simulator you can discover strategy profitability before its too late.



Comment

The Habits of Highly Successful Traders: Part 3

Comment

The Habits of Highly Successful Traders: Part 3

Well here we are. The final habit! In todays post we are going to discuss the 3rd habit that I have seen that successful traders emulate. This is an important one. It actually ties into the other two habits on patience and resilience. Because if you do not have this third and final habit. You will not be patient and you will not be resilient.

Displaying all three together allows aspiring traders to cultivate success in the markets. We all know that trading is a very emotional business. The constant ups and downs in the market along with the news that the media portrays can make your mind spin in a million different directions. It can be difficult to decipher what is correct and what is incorrect. Both sides might actually seem to be right and have valid points! This really can throw your mind into a tailspin! 

Experiencing these emotions is a natural part of beginning to trade. As traders we are constantly bombarded with a mixed perception of the markets and whether to buy or sell a given instrument. This makes trading very difficult. A million opinions are thrown at us and we have to decide which makes sense to us. Even with technical trading… one chart timeframe will tell us one thing and the other chart tells us a completely different story. One indicator tells us to buy and the other tells us to sell.

This all can become very confusing and make it difficult for you to develop consistency in the markets. This brings me to the third and final habit we are going to be discussing.

Objectivity

As a trader, you must learn how to take all the information you are bombarded with on a daily basis at face value. What I mean here is that you cannot let the different opinions you hear about the market effect you. You must remain cool, calm and collected. As a trader you cannot be affected by your emotions and you must become numb to all the other news you hear about the markets. What matters most is YOUR opinion and only YOUR opinion.  

To illustrate the psychology of most investors I want you to take a look at the image below.

emoji Guide to investing.png

I am sure you can relate to the “Emoji” or emotional feelings of investing at the different market cycles as illustrated in the info graphic. Everyone starts as what is called “most investors” on the top of the image. This is a disastrous place to STAY. To be an emotional investor means you will never get rich trading and investing… to put it bluntly.

What you want to do is naturally gravitate toward the bottom. Where no matter what the market or your particular trade is doing, you remain emotion less (cool, calm and collected). Your long-term success in the markets is directly tied to your ability to not be controlled by your emotions.  

How to remain objective and poised as a trader

This is such an important trait that all successful traders have and I wanted to share with you a way that can help you become more present and objective before you begin your trading session.

What I would recommend you incorporate into your routine is a moment of presence. Being present allows you to remain objective and not judge the situation that is unfolding in front of you. It quiets your mind and helps you to relax. You are naturally brought to that state of objectivity through presence. Because your thoughts about what “should” happen are no longer controlling you. You release your opinion of what the market “should” do and instead you live and trade in harmony with what the market is ACTUALLY doing. You become an observer.

 When you are an observer you are able to notice patterns within the market and exploit them. You don’t bring your biases from what the news or your friends from work are telling you the market is going to do. You remain in a state of balance. This is a fundamental KEY to your success. Developing a balanced mindset will ensure that you always take trades that are according to your trading plan. When you make trading decisions that consistently align with your plan… you are on the road to consistency in the markets.

If you missed the first part of the Habits of Highly Successful Traders… it can be found here. We also wrote the second part to this 3 part series which can be found here!

 One thing that has really helped me remain objective with my trading is implementing the use of trading robots. A trading robot has no emotion or bias about the current market condition. It just identifies trades and continues to execute no matter what is going on around it. By using this tool you to can develop a balanced perspective of the markets by only taking trades that are in alignment with your strategy. At DARA trade we have developed a robot advisor that assists traders in taking great trading setups based on a handful of strategies. The robot advises you of a great setup that is based on predetermined rules and you the trader make your decision on if you would like to take the trade or not. This is brilliant! You get the assistance of a trading robot to identify the setup with no emotions, exactly according to plan. While you the trader implement your market knowledge to actually execute the trade. To learn more about this system click the button below and join our telegram channel!

Comment

The Habits of Highly Successful Traders: Part 2

Comment

The Habits of Highly Successful Traders: Part 2

close-up-dark-hand-1458696.jpg

Author: Shanda Matieshin


Todays post is going to be a discussion about the second habit of successful traders. So what is the second habit? Resilience.

Resilience is an interesting topic to discuss. Lets start with the definition

Resilience – “the capacity to recover quickly from difficulties; toughness.”

            - “the ability of a substance or object to spring back into shape; elasticity.”

The two definitions above can give us a pretty good idea of just what resilience means. Think of an elastic band. Just like the second definition says… elasticity… what exactly does that mean?

Being like an “elastic” means that you are be stretched in a million different directions but ultimately come back to your original shape and form. The forces of nature can try to pull you this way and that way but you stand your ground and always come back to your center (original form).

Nothing can permanently take a different shape or form. No matter what happens you remember your center and always come back to this place. 

So now lets apply it to the markets and being a successful trader. Being a long term successful trader will mean that you have endured a few loses and setbacks in the markets. But what will define your ability to keep moving forward is resilience. The ability to bounce back from setbacks is what makes successful traders. When your account is being pumbled by losses it can be hard to remain in a calm and peaceful state. But that is EXACTLY what successful traders do.

Experiencing a losing streak can make it incredibly hard to bounce back and continue trading. Newbie traders will want to adapt their strategy (when it is perfect the way it is) or completely change their strategy all together. Bouncing around from strategy to strategy only continues to pull the elastic and stretch it farther than it can be stretched. What happens when the elastic stretches to far?

It snaps. This is what will happen when you continue to adapt your strategy or move strategies based on spur of the moment decisions. You never truly master any strategy at this point. Continually moving strategies is the actions of a new trader who does not yet understand how to master the markets and wants to find the “perfect” strategy to make money NOW. To put it bluntly… this is NOT the way to success in the markets. Testing multiple strategies and moving from one strategy to the next pulls the elastic farther.

You stretch yourself so far and ultimately you will snap. This snap will represent you throwing in your towel and giving up trading altogether.

So how do you develop resilience in the markets and develop the ability to bounce back from loses with no loss of enthusiasm?

Well… it takes time. Through long hours dedicated to the charts you will find that your ability to bounce back becomes easier and easier. You confidence in your strategy and in yourself as a trader grows as you have more time on the charts.

The first losing streak or setback is always the hardest. But once you have gone through a few losing streaks you know that your winning streak is on the way. You develop an inner confidence in yourself and your strategy by spending hours and hours on the charts. This really is the way to develop confidence in your strategy. Take the time to backtest and identify your ideal setup. By looking at your ideal setup and knowing exactly what will make you take the trade you gain confidence to take trades in real time.

I would suggest you write out EXACTLY what makes you want to enter a trade in the market. Are you looking for a support and resistance level? A daily candlestick pattern? Write these characteristics out and have them beside you each trading session.

Another important list to have with you at all times is what makes you NOT take a trade. Perhaps it is when the market has been moving against your desired position. When the market is trending. Any market characteristics that help you make trading decisions are so important. When you can pinpoint these characteristics you will have a better chance of making great trading decisions in the real market.

Backtesting is an incredibly powerful tool for developing confidence in your trading abilities and your strategy. Through backtesting you can discover all of your statistics. If you find that your maximum losing trades in a row has been 8 in your backtesting and in your live trading you have had 3 losses in a row, you can have more comfort in knowing that your trading is still in line with your strategy. This is the power of backtesting. You really start to understand your strategy, where your strategy is strong and where it is weak. You can then have a new level of confidence trading in the live market with real money!

At DARA we help traders analyze their trading data. It is so important to gather data in your trading so that you can always learn, refine and grow. Backtesting helps traders to learn their strategy, refine it and grow when in live market conditions. Without gathering the data on your strategy you will be lost in the markets. We have developed a journaling software to help traders analyze their trading statistics. Learn more about how you can take your trading to the next level in 2019 by journaling and measuring your statistics!

Comment

Comment

The Habits of Highly Successful Traders: Part 1


Author: Shanda Biggs


background-balance-beach-289586.jpg

Todays post is going to be solely dedicated to YOU…the aspiring trader. Now I know all of our posts are for you but this one in particular. Many people just touch the surface when it comes to the habits that make traders successful but do not identify the TOP habits that you must develop in order to succeed in the markets.

In my time trading the markets I have noticed these 3 habits are a common thread amongst full time traders. If you can develop and cultivate these habits in your own life, I have no doubt that you will develop into a successful trader as well. For this post we are going to focus on what I would consider the most important habit for you to develop. The following posts on habit 2 and 3 will be shared in the weeks to come.

If you have been exposed to the self-development industry for a period of time you have probably heard of the following line…

“Do what successful people do and you will get what they have.”

When you start to study others success you will actually find that these people are JUST like you. Most people are not born into success. They had to develop and cultivate these habits that we are going to discuss as well. They had to go through the trials and tribulations JUST LIKE YOU. It is comforting to know that others living their dream live had a similar story. It makes us feel like we are not alone. Because trust me it feels like that some days and I’m sure you know the feeling as well!

But it really is true that if you do what successful people do and you will naturally follow in their footsteps. There is not much difference between a successful trader and yourself. They have just been in the game longer than you. So if you can learn and develop the traits we are discussing faster and earlier in your trading career, you will become consistent quicker.

 The first thing I would encourage you to do is find a trader who you resonate with. Pick a trading mentor if you will. Maybe it is their lifestyle or the way they talk about life and their philosophies. Find someone who you really admire that is a successful trader and sit down and think about what makes this person successful. Start with a blank sheet of paper and list out 10 qualities that you think makes traders successful.

 After writing these traits down think about how you display each one of these traits in your own life. Every person has every trait it is just shown in different ways. So think about some examples of how you showcase each trait you wrote down. After careful thought and consideration you will find that YOU have EVERY trait that successful traders have. You display them in different ways but ultimately you have every characteristic. Through time and dedication to the markets you can learn how to cultivate and develop these characteristics in the way that successful traders do.

Naturally because you are doing what other successful people are doing… you to will follow in their footsteps and become successful.

Now this is not an overnight process. It takes time, energy and dedication. But I promise that if you follow the correct path you WILL develop the characteristics that it takes to be a trading success story! 

Which brings me to my first point… Patience.

 Patience is one of the most important traits you must develop if you want to be a successful trader. Not only does patience help you with your trading but it also gives you a fresh and new perspective on life. When you develop patience, you find that you do not focus so much and getting things done NOW.

Living while always thinking about the future makes you ungrateful for the experiences and life you are living right now. In order to move forward I have found that you must bring your focus to the present moment in your life and adapt and move forward according to what is happening in this moment. By focusing on the future you forget what is happening in this moment. Even in trading, by bringing your attention to the present now you will develop an intense focus while looking at the charts. You will realize that each NOW moment will build together to form the future you ultimately want to manifest. By being your best today you will see all the pieces coming together to be the trader you want to be a year, two or three years from now.

To bring this future into reality requires patience.  By living in the present moment you naturally will develop patience because you do not have your full attention constantly on the future. You focus on being your best right now and that means making good trading decisions today. Each great trading decision builds on the last and becomes the foundation for consistency in the markets.

We want to bring our attention to the present moment and not consistently focus on the future. This can put us into a state of fear and ungratefulness for the life we live now. We can often forget that each day we live is a stepping stone to that better future and the more we focus on making our today better… the better our future will be. 

So today I encourage you to stop and be present. Realize that each day you have is a stepping stone to creating that better future and focus on that. Focus on TODAY not 365 days from now. By bringing your attention to being the best trader today, you will see great progress when you look back a year or even a month from this moment.

It is encouraging to those of you struggling right now to know that every trader went through the same struggles you did. All successful traders had to develop the characteristic of patience.

At DARA we help traders develop the characteristic of patience. Not only does DARA notify you of great trading setups but we also have an amazing trading community. You can talk with full time traders every day! You can see what setups they are taking and begin to develop the habit of patience. DARA helps traders develop patience because now they do not have to go hunting for trades but rather wait patiently for DARA to alert them of great trading opportunities. To learn more about how DARA works and how it can help you improve your trading results click the button below. Also drop us a comment if you have any questions :). For now… Happy Trading!

Comment

Comment

How the Power of Compounding can get you to your Trading Goals


Author: Shanda Matieshin


In todays post we are going to focus on a topic that is near and dear to my heart. Many people, not just traders simply do not understand the power of the principle we are going to share with you today. If you fully grasp and understand this topic you will be mind blown.

Compounding can literally change your life. It has been said to be the 8th wonder of the world. Running with this concept will allow your mind to open up to the possibilities that are available to you through trading and investing. 

Sometimes when we begin our trading careers we are short sighted. We don’t see the bigger picture and how trading can literally change our lives. As new traders we often focus on achieving huge returns in the first few months of trading and don’t quite know how small gains achieved over a lifetime can impact us. Large gains are great such as achieving 10-20% per month. This is definitely possible but I don’t want you to get down on yourself if you are consistently achieving 2-3% per month as well.  Because achieving these returns consistently can also have a HUGE impact on your trading portfolio over the long term.

When you consider the fact that 95% of traders and investors fail to make money… you should be ecstatic about the fact that you are making a consistent 2-3% per month.

When we understand compound interest we develop a long-term perspective when it comes to trading. We understand that minimal drawdowns in the short term are okay as we see the long-term picture.  This brings me to the two most important topics I want to discuss today.

Compound interest teaches traders two very important things

1.     The Value of Time

2.     Patience 

To see the tremendous results of compound interest we need TIME. Really to see the fruits of our labor in anything in life we need time. It takes TIME to develop something great. Trading is no different.

With compound interest you need TIME on your side. Because the more time you have the greater your compounded returns will be. So my advice… start compounding NOW. You have nothing to lose!

Take a look at the example below. You can see how a simple $10,000 invested at the different rates of return will compound based on different time periods. 

Screen Shot 2018-11-24 at 9.58.03 AM.png

 Now you may be thinking to yourself… these are small rates of return! Cant I expect more from actively trading the forex markets?

The simple answer is YES! I am showing you the impact of what most people would consider as normal to average returns and the impact it would have on your investment portfolio. Now just think if you were making double 16%? What would the results of a portfolio compounded over 20 years at 32% per annum amount to?

After a simple calculation in a compound interest calculator you would find that a small $10,000 investment compounded at 32% per year for 10 years would result in a final balance of $235,253.13. How crazy is that! Look at the chart below to see the figures.

Screen Shot 2018-11-24 at 10.03.11 AM.png

So what is my advice for you moving forward? Well this brings me to my second main point and that is…

PATIENCE

You must have patience in the process and trust that time and the power of compounding are on your side. What does it take to develop patience? Discipline.  You must be disciplined to stick with your trading plan and develop that long-term vision. You will not reach these figures by investing for only 1 year… even 2, 3, 4 or 5 years! You must stick it out! The power of compounding only takes form within the last couple years. This is when we see the big returns. After all, when you think about it… 32% return on a balance of $235,253.13 is a much larger number than 32% on $13,200 which is the investment balance in year 2. This is why in trading you must persevere through the difficult times. If you gave up after 1 year of what you considered “ok” trading results… you are missing out on a lifetime of possible gains.

So stick it out! Realize the power of compounding and how these seemingly “small” returns can have a HUGE impact on your trading results in the long term.  

It is the impact of those long term results and how in the first few years it might seem like you are not achieving anything but when you wait it out you will see that the last few years are where the biggest gains are made.

To display this in a visual form… take a look at the photo below.

Graph w: 100$ added.png

In the first 5 or so years you can see that your gains and interest earned are nothing to brag about. This is when your patience is tested. Do you have the discipline to stick it out and keep your long-term vision at the forefront of your mind? After taking a look at this graph I hope you do! You can see the power of a small investment and making achievable 3% per month returns and how this can impact your life! In this example you only invested $22,000 and you came out with over $400,000 in gains! This is the power of compounding interest and making consistent and regular deposits into your savings and trading accounts!

Now lets also take a look and see how making regular contributions will impact your portfolio value at the end of the same time period. It you look at the revised chart below you will see the impacts of NOT making regular savings contributions into your investment account.

Graph W no 100.png

You can see that you ended up with about $100,000 less than if you simple added only $100 to your trading account every month… so my advice? 

Get in the habit of saving and making regular contributions into your trading and investing account. Just by looking at these graphs you can see the enormous impact that this simple habit can have on your investment portfolio over time. Now think if you were to add even more money into your account every month? Take the time to think about what a reasonable amount of money is for you to be able to save every month.

Then setup regular contributions in that amount every month and have the discipline to stick to it. Those who have discipline are the ones that will be rewarded. If you find yourself falling short keep this graph in the forefront of your mind so that you are reminded of the powerful impact that one decision can make in your life. I hope that you make that decision today. Your future self will thank you!

At DARA we have developed an amazing tool to assist you with measuring your trading progress. It is journaling software designed to help you monitor your results and ensure that you are on track for your goals! If you want FREE access to this software click the button below! Journaling DARA will ensure that you are on track to achieve the desired life you want through trading and investing in the forex markets!



Comment

Comment

Why you Should not be Looking at Charts 24/7


Author: Shanda Biggs


adventure-air-aircraft-36487.jpg

Trading is an interesting profession. I don’t think I know of any other skillset that requires so much mental focus and strength. Now being successful in any endeavor requires you to put in similar amounts of time and effort. But trading is different in a couple different ways. The most important being your mindset and psychology. 

The single most important thing that will determine your trading success is your psychology and your ability to manage your emotions. You will just not succeed unless you are able to numb yourself to what is happening in the markets.

I wrote this blog post to help you new traders or even seasoned traders see why it is not a great idea to be on your charts all waking hours of the day. It is important for your mind to take breaks. If you have your consistent focus on one thing 24/7 you are prone to burn out. Your mind needs breaks in order to bring clarity and order.

When you take breaks, you give your mind a mental break and this gives it room and space to open up for new ideas. Order flows into your mind when you release what you are focusing on just for a moment and bring your attention to something else. Its almost like you forget what you were working on and bring your focus elsewhere. Being in the present moment. This is powerful because it opens your mind up to new ideas.

Have you ever found that thinking so hard about something actually stifles your ability to think clearly at all? Take for instance trying to write a research report. When you think so hard about what you should write your mind comes up with no ideas. But when you are out for a walk not even thinking about the report you get a million great ideas to begin writing about! The same phenomenon can be applied to trading and mainly when you are analyzing charts which brings me to my main point of discussion for today.

Over Analysis

Over analyzing charts is one way to sabotage your trading success. Over analysis most commonly occurs when traders do their initial analysis but then they go back and “review” what they have seen on the charts. By looking at the charts over and over again they begin to see and imagine patterns and price action that is against what their initial analysis pointed to. They then develop doubt in their mind about what they initially saw on the charts.

I like to call this analysis paralysis. Maybe you have heard of this term. It is very real in the trading world and stumps a lot of traders. The trader gets so many conflicting ideas about what the chart is telling them that they literally cannot develop a bullish or bearish bias on the pair. 

How does this happen? It happens when a trader looks at a chart but does not exactly know what they are looking for. They don’t know how to dissect the chart and break it down into a story that the price action is telling them. Instead they look at various indicators, support and resistance and possibly trendlines or other technical tools and find that they all point in different directions. Indeed, this can be very confusing for a new trader and a seasoned trader!

What I have found to help me not over analyze the charts is having a crystal clear strategy so that I know exactly how I analyze charts and what types of setups I will be looking for. Then once I know exactly what I’m looking for I glance at a chart quickly to see if there is a possible setup. I don’t look at the chart for to long because this is when over analysis can kick in… when you stare at the chart for to long!

You may know what I’m talking about when I say your mind starts to develop patterns in the price action that you just didn’t see a few seconds ago! What I always like to say and implement into my trading is that if you look at a chart and do not see a possible trade within 30 seconds of looking at the chart then there probably is no setup.

Why? Because clear setups do not have to be dissected. They are so obvious that they just jump right out at you! Of course you must dig further to see if the setup meets all of your trading plans criteria but at the initial first glance you should be able to see if there is a valid trade on the chart.

I have implemented this strategy into my trading routine and found it to help immensely with over trading and emotional trading. I do not get emotional when trying to find a setup by making up possible price scenarios in my head.

By spending a little less time actually finding trades on the charts I am able to get back to the real reason I started trading in the first place. That is for freedom! I now have more time to analyze, backtest and review my strategy. Which are all vital components to trading success and growth.  Not being on the charts 24/7 allows you to cleanse your mind and come to the charts on the next trading session with a focused and clarified mindset. This is absolutely essential. So rather than analyzing possible setups 24/7 why not go out and enjoy some time with your family? Remember the reason you began trading in the first place! I guarantee you that by taking the time away from the charts between your trading sessions you will come to the charts when you are supposed to be trading with a clear and focused mindset!

At DARA trade we actually have a tool to help you NOT have to look at charts 24/7. When the perfect setups present themselves according to predetermined criteria you get an alert on that particular currency pair! DARA notifies you once your rules are met and ensures that you are only taking the highest quality setups! How awesome is that? If you want to see what DARA is all about click the button below to learn more and become a member. From here you can download our FREE software and begin your trading journey with DARA as your trusted sidekick.

Comment

Comment

The Importance of Keeping a Trading Journal


Author: Shanda Biggs


blank-composition-desk-606539.jpg

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.

 

Comment

Comment

Why Discipline in Trading is SO Important


Author: Shanda Biggs


blur-bulb-close-up-220096.jpg

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!

Comment

Comment

The Traders Mindset


Author: Shanda Biggs


abundance-agriculture-countryside-1166209.jpg

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.

buttons-camera-circuits-1476316.jpg

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.




Comment

Comment

First Ever Algorithmic Trading Event to Be Held in Dublin


By Ed Gould


Trading partner.png

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

Comment

Comment

Are you ready for a totally NEW trading experience?


By Alexander Vladimirov


Trading-Quotes.png

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.

DARA.PNG

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

 


Comment

Comment

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


Comment

Comment

A Revolutionary Idea that Could Change your Trading


Author: Shanda Biggs


art-creative-creativity-5836.jpg

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.


Comment

Comment

The Differences between Automated Trading and Discretionary Trading


Author: Shanda Biggs


battle-black-board-game-411207.jpg

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.

Comment

Comment

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.

Screen Shot 2018-08-12 at 3.07.07 PM.png

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.

Screen Shot 2018-08-12 at 12.03.33 PM.png

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.

Screen Shot 2018-08-15 at 7.01.18 PM.png

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.

Screen Shot 2018-08-12 at 12.08.25 PM.png

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:

Comment

Comment

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.

action-ai-android-595804.jpg

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.

apple-mouse-artificial-flowers-blurred-background-1229861.jpg

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!

 

Comment

Comment

How to maximize using the Satoshi Robot


Author: Gregory Lessing


robot1.png

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.

Daily Chart.PNG

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.
 

GBP-JPY-entries.PNG

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.

GBP-JPY-30M.PNG

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. 

Comment

Comment

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.

architect-architecture-blueprint-271667 (1).jpg

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

architectural-design-architecture-blue-sky-443378.jpg

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 :).

Comment

How to Identify a Trend

1 Comment

How to Identify a Trend


Author: Alexander Vladimirov


pexels-photo-874242.jpg

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:

MA's.png

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:

MA's 2.png

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.

BB.png

 

#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:

start_here.png

 

#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:

ATR.png

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:

1 Comment

Comment

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.

black-and-white-board-board-game-122427.jpg

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.

business-cellphone-chess-910330.jpg

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.

Comment