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Trading is a Game of Uncertain Outcomes


Author: Shanda Biggs


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

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

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

What is the Market?

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

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

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

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

Trading with an Edge

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

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

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

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

The Trading Plan

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

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

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

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

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Short-Term vs. Long-Term Trading

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Short-Term vs. Long-Term Trading


Author: Alexander Vladimirov


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

How much time do you have for trading?

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

 What is your Goal?

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

Do you like trading?

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

The SWAP secret

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

Currency Pair: EUR/USD

Trade Size: 10 lots

Positive SWAP on Sell: $44.28/Day

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

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

 Evestin Forex

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

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How to Identify and Trade Engulfings


Author: Shanda Biggs


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

How to Identify an Engulfing Candlestick

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

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

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

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

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

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

Trading Engulfings in the Correct Market Context

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

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

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

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

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

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How to Identify Pinbars


Author: Shanda Biggs


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

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

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

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

How to Identify a Pinbar

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

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

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

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

How to trade Pinbars in the Correct Market Context

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

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

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

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

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

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

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

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Fibonacci: History and Use in Forex


Author: Alexander Vladimirov                                                                                


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Who was Leonardo Fibonacci and what was his contribution?

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

Fibonacci numbers in Trading

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

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

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

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

Keeping it simple with Fibonacci

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

Evestin Forex:

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

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What can Automated Trading Teach you?


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


 By Alexander Vladimirov

By Alexander Vladimirov

 

                                 

The importance of Strategy

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

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

The importance of mind-set and self-awareness

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

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

The importance of numbers

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

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

The importance of patience

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

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

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The Importance of Trading on Higher Timeframes

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The Importance of Trading on Higher Timeframes


 By Shanda Biggs

By Shanda Biggs


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

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

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

Clean Price Action

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

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

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

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

Accurate Trading Signals

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

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

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

Clears your Mind

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

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

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

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

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

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



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Why 90% of Traders Fail

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Why 90% of Traders Fail


 By Shanda Biggs

By Shanda Biggs


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

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

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

Be a Professional

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

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

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

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

Develop a Sound Plan

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

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

So what now?

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

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

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

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


 By: Alexander Vladimirov

By: Alexander Vladimirov


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

What are the restrictions?

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     ESMA will impose five key measures:

  • An imposition of leverage limits – max 1:30

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

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

  • A restriction on incentivisation of trading

  • A standardised risk warning

  • Prohibits the marketing, distribution and sale of binary options

 

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

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

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

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

Trade size: 300,000

Account currency exchange rate: 1.200

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

 

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

Trade size: 300,000

Account currency exchange rate: 1.200

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

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

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

But I want my leverage!

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

Evestin Forex – where do we stand?

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

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How to achieve Forex success using Law of attraction.


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

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

Follow me on social media for latest trading updates


Visualisation helps us to achieve goals

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

How to harness positive attraction

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

What the law of attraction tells us

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

Why affirmations are important

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

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

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

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

Ivo forex trader

What will happen

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

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

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



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5 reasons why you should trade with a mentor.


By Ivo Luhse CEO & Founder or Evestin Forex


Forex mentor

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

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

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

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

You can check out Andrew’s page below.


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Why do Evestin Forex robots work?


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Is robot trading better than manual trading?


Ivo Luhse

By Ivo Luhse, Robot Trader & Founder of Evestin Forex

Follow me on social media for latest updates


Robot is better trader

 

While manual trading still has its place, the future belongs to automated trading. However, a good robot manager aka 'Robot Trader' is the key to having to correct balance between a trader and a machine. This is not a about Human VS Robot but rather Human + Robot. Both have a very important role to play. A good robot trader is needed to take the advantage of the automated trading. Moving onto robot trading is natural progression each trader will need to recognize if he is to succeed in this new world of trading.

Listed below and the 6 main reasons why you need to seriously consider robot trading if you want to be a successful trader.

 

Reason #1 Gives confidence in trading strategy

Since you can run very detailed backtests for your trading strategies and trade ideas any guess work has been taken out of trading. You can fully rely your trading decisions on probabilities and statistics. No more trading on “Guru” recommendations.
Back in 2012 when I started to learn the candlestick trading strategy (the strategy Satoshi robot trades) I felt frustrated with my lack of confidence sticking to the strategy when trading it manually.  And while my mentor who thought me this strategy provided his full strategy and gave me his recommendations it was only when I build my first robot to do automated backtest I could use this strategy effectively. I had finally a statistical proof that this strategy works. On black and white, I had the proof that this strategy has an edge.This was my eureka moment and I have never looked back. Now I have full confidence in all my trading systems I trade because I have statistical proof they work.

Reason #2 Removes emotions

Since you’re not in the heat of the moment trading scenario anymore (you are not taking the trades anymore), using robots drastically reduces stress in trading. If you find hard to follow your own rules - trading with robots will be a game changer for you.

Reason #3 Promotes discipline

Ties in the with the rule above about emotions. A trading robot will do exactly as it was coded to do and will not deviate from your trading rules or risk parameters. This will make you a better trader and make you stick to your own rules. After all, if robot can do it, I can do it too.

Reason #4 Robot runs 24/7

A trading robot will trade while you sleep. The robot will never get tired or need a holiday. When trading manually a break off trading is a must to recharge and switch off from the market. The problem is holidays cost a lot of money. I remember feeling stressed and trading from my laptop in case I miss something. Now when I go on trips I enjoy them 100 times more because I know my robots work for me 24/7 and are paying for my pomegranate martinis 😀 It is one of the best feelings ever to go on a holiday and still make money. 

Reason #5 Double, triple of even quadruple you trading income.

Since your robot runs 24/7 and you no longer need to sit at the computer to take the trades, you will have free time to learn and develop new trading strategies. With manual trading, you can only trade one single trading strategy at best. Since building my 1st robot (Satoshi) I now have gone and build another 3 robots and looking to build a new robot every year. This has drastically increased my trading income something I would never be able to do trading just one trading system manually.

REASON #6 Consistency

Let's face it one single trading strategy can't perform consistently well in all market conditions. Some strategies perform well in trendy markets, some in range markets, some will only return a profit in Bull markets while losing money in Bear markets. But since you can run multiple trading robots at the same time on your account you can achieve excellent consistency in any market phase. Most traders still believe that trading multiple trading strategies or multiple trading robots increases the risk were, in fact, the very opposite happens. This is because if one trading robot is struggling other robots will be making a profit and covering for it and then again vice verse. It's a team work! The best robots work in a team. But the key is to have your robot trading strategies uncorrelated and unique.

This is what I have done - I built a portfolio of 4 uncorrelated and unique trading strategies and I run them all the time. This way I can achieve excellent consistency no matter what the market does, it can be trendy, stuck in a range, in an uptrend or downtrend. Trading manually just one single trading strategy will never give you consistency you seek.

Start trading with robots today, do not delay it.  I promise you, You will never look at your trading the same way again. And you never know one day you might build your own army of robots.

To your trading success,

-Ivo


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Great trade? Thank the robot that did it


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Automated trading is the wave of the future
— Ivo Luhse, currency trader, entrepreneur, developer of robotic trading systems.
Ivo Luhse trader

Ivo Luhse is Forex trader who started out, as so many traders do, as a discretionary trader. Now? He wouldn't even call himself a trader, despite the fact he makes his living trading. He describes himself as an asset manager with a number of employees. And every one of those employees is a robot.

Ivo's journey is one that all traders are going to have to make eventually. It's not a matter of embracing complexity, in fact, it's just the opposite. He uses simple manual trading systems but he lets the robots do the work. He just manages them and the money that they are using and making.
We all heard that you should treat trading as a business. But not many actually understand what it means.
He cites the analogy of a burger shop. He has bots flipping the burgers - he's the manager looking after the money and checking up occasionally that the bots are making the burgers properly. And with the new advances in machine learning soon different bots will be managers of the bots flipping the burgers.

There’s still time to get an early advantage – but move now.

Even a trader as sophisticated as Ivo hasn't been doing robotic trading that long. He started to build his robots in early 2015. After the birth of his daughter, he realised that he doesn't want to sit at the computer screen all day long and wanted to spend as much time as possible with the new family. So his started to build robots based on his manual trading strategies.  He currently has four bots working for him each with is own unique trading strategy. This approach lets Ivo diversify his trading portfolio and achieve consistency in any market phase.
In every market, traders are making the same journey and turning to automated trading to give them coverage and consistency that is very difficult to achieve as a human being.

It's extremely difficult for us not to hop from one strategy to another, particularly when we encounter trading difficulties and losses. But automated trading is far less emotional and can help you improve your profits by removing the heat from the trading scenario.

The whole market is moving this way and it's important to give yourself the benefits of an early advantage by getting involved now with automated trading using robots.
When you look at hedge funds vs quant funds. Technology driven quant funds are on a good run and are outperforming its discretionary counterparts. Quant funds are also the biggest hirers, but there are no jobs for discretionary traders. Funds are looking for the smart, analytical people right out of undergrad with strong math, computer science or engineering skills.
If computers can beat world champion chess players, shouldn't they be able to beat the traders on Wall Street?
Eventually, the time will come that no human investment manager will be able to beat the computer.

Ivo trusts the algorithms and strategies that are built into his automated trading robots. He has fully stopped his discretionary trading and has his sole focus on managing and developing automated systems.
But it took him some time to arrive at this point. At first, he found it difficult to let the robots do their job because it involved a loss of control - a bit like the business owner who takes on some employees but doesn't believe they can do the job as well as he can. Most traders will probably have the same problems to begin with and will need to move towards fully automated trading somewhat gradually.

It's clear that he moved towards robotic trading in a spirit of humility, learning what he needed to learn and wanting to move towards a mode of trading that was calmer and more rational. However, Ivo believes that in the next 20 years asset management of robotic traders is what will make money in the markets and that discretionary trading has no future.

Best forex robots

A different kind of trading day.

Traders like Ivo who are using automated trading systems check their robots 1 to 2 times a day to make sure that they are opening the trades correctly. Scanning charts, looking at indicators, fundamental analysis and all the other paraphernalia of traders have become a thing of the past – the software does it all.

Wall Street people learn nothing and forget everything.
— Benjamin Graham

With apologies to the revered Mr Graham, that may all be about to change. With machine learning, robots learn everything and forget nothing.
Already now Ivo uses testing robots that 24/7 scan the incoming price data and look for best settings for the current market conditions. While he still needs to manually input these settings for his trading robots, soon manager robots will be able to do this automatically from the data they receive from the tester robots and tracking robots.
A fully automated machine learning and trading process — trades taken by trading robots, settings set by manager robots, ongoing testing done by test robots and live trades monitored by tracking robots.

A huge wave of automation is coming.

This move towards automated trading is part of the new wave of intelligent robotics which will profoundly change the world of work and affect all jobs and professions where human intelligence is used to collect, synthesise, analyse and act on information. The changes will be dramatic and many people are simply unprepared for the scale of what is about to happen.
So far, most people's idea of a robot has been of a machine with limited intelligence that does something physical in response to a set of instructions. What we are now seeing are robots that inhabit the virtual or digital worlds and act autonomously using our money, and resources. We will allow them to take decisions and act for us in the future because the evidence will plainly show that they take better decisions than we do. They will teach our children, diagnose our illnesses, manage us at work.
Robots will become socially intelligent and will be networked into complex interactive social and work systems.
The current push is to develop sentient robots – those who do not merely have artificial intelligence but who have self-awareness, or consciousness. Which of course means, that they would be capable of loving or hating but also that they could be taught ethics and a sense of right and wrong.
in terms of trading robotics, one of the great advantages of robotic trading systems is that they are not subject to the emotions and pressures that afflict human traders and can lead to fear, greed, overconfidence and the classic "revenge trading" reaction to a sudden loss.
Speaking in MIT Technology Review, Hod Lipson, an engineering professor at Columbia, who heads the Creative Machines Lab, pointed out that people used to think that technology would destroy some jobs but would create better ones to put in their place. Lipson says the evidence now is that yes technology is destroying jobs and yes it is creating better jobs as well. But unfortunately, it's also creating fewer jobs. And this may cause all sorts of problems in the future as people find they need skills they don’t currently have, in order to get a job.
Technology, particularly robotics, is coming towards us like a large wave. It's up to us whether we grab our surfboards and get on top of it, or just watch it fearfully until it breaks over us.
When it comes to trading, we do at least have a choice. Why not start by dabbling a toe in the water - trying some automated trading in part of your portfolio and seeing how you get on?
You may find that you start to see yourself much more as an asset manager and much less as the hapless person flipping the burgers at the beachside bar.

 

To try Ivo's trading robots 30-Days for FREE click the bottom below



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