Viewing entries tagged
Alexander

Short-Term vs. Long-Term Trading

Comment

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?

hourglass-time-hours-sand-39396.jpg

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?

pexels-photo-226579.jpg

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

coins-currency-investment-insurance-128867.jpg

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:

EURUSD.PNG

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!

Free Trial.jpg

Comment

Comment

Fibonacci: History and Use in Forex


Author: Alexander Vladimirov                                                                                


iMAo2Xokwi3Tg1kObxPO_rafaelaraujo4.jpg

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

61.8.jpg

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

simple.jpg

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).

pexels-photo-316466.jpg

 

 

Comment

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

Comment

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

BL.jpg

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

Numbers.jpg

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:

Sign Up.jpg


Comment

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

Comment

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?

eur.jpg

     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?

satoshi.png

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! 

Comment