Fx Trading Strategy – the Application of Mathematics to Reveal the Theory of Market Movement

Admin — Wed, 30 Dec 2009 06:12:38 +0000

Today, traders all around the world are using complex computer programs and mathematical equations to work out the scientific theory of market movement. What are the results and how can they benefit your FX trading strategy?

Let’s start with a fact:

Today 95% of traders lose their money and it’s the same ratio as 50 or 100 years ago and this is despite all the so called advances in computers, forecasting and number crunching applied and this leads to an obvious conclusion.

Forex markets don’t move the certainties i.e. mathematics, they only move based upon odds and you can try as hard as you like to apply science and maths – but if prices move to the odds this is futile. It’s obvious:

If markets moved to a mathematical theory, we would all know the price in advance and there would be no market! Common sense – but traders love complexity, it makes them feel safe and they think it cuts risk. They may love it but it won’t help them.

Today there is a huge industry in robots and automation is the buzz word and you see extra ordinary profits in hindsight and simulations – but they never work in real time, because no two pieces of data are ever the same and you really are chasing your tail if you try it.

Just as in yester year, simple forex trading systems work best, as they are more robust with fewer elements to break. A simple odds based system should be the basis of your FX Trading strategy. Don’t be deceived a simple odds based system can make a lot of money.

The problem today is we are used to science and maths solving problems in life and making our life easier, more comfortable and it does – but that doesn’t mean it works in all areas of life and the forex market is one, where it doesn’t. You need to keep it simple, have confidence in what your doing and if you do, you can enjoy currency trading success.

So stop trying to beat the market and see it for what it is, a high stakes, high odds game and get the right forex education. If you keep it simple and trade the odds, you can make a lot of money with your FX trading strategy and that’s a fact.

By: Kelly Price

Forex Trading Strategies – a Strategy You Can Learn Easily and Apply in 30 Minutes a Day

Admin — Mon, 14 Dec 2009 23:07:05 +0000

To put together your own Forex trading strategy based upon the enclosed information only takes a week or so and you can then be targeting triple digit gains in around 30 minutes a day. Let’s take a look at it…

The first point to keep in mind is that any strategy you use should be simple and this one is. Why should it be simple?

Why Complex Theories will Lose you Money

The big thing in Forex trading at the moment is using complex mathematical formulas to predict. We apply mathematics in everyday life and it works but it won’t work in Forex, because Forex markets don’t move to mathematics.

You can make complex systems but they will simply get wiped out, because Forex markets are an odds based market and for odds based market, simple systems are best as there more robust with fewer elements to break.

There are those that still believe they can predict and that mathematical formulas exist that work but if there was such a system, we would all know what would happen next and there would be no market.

Simple Systems Work Best

The Forex strategy we are going to look at is simple and is based upon buying breaks to new chart highs and lows and its obvious why this works and that is markets trend. Any big trend starts and continues from breakouts and you can see this on any Forex Chart.

Trading the Reality

Trading a breakout has another advantage, it trades the reality of price change and doesn’t predict. I read a lot about predictive systems, but they don’t work, as predictions are really guesses and you won’t get rewarded for that, in life or in Forex trading.

Why Most Traders Can’t Trade Breakouts

It’s easy to do logical and it works but most traders have a mental block about doing it, as they want to be in at the exact top or bottom and think they have missed the move and want it to pullback, giving them a better entry point. This of course doesn’t happen, the trend continues and the trader waiting misses it.

Breakout trading is all about putting the odds on your side and on good breaks, the odds favor a continuation of the move. You miss a bit at the start but there is more profit on the way and that’s your aim – to make a profit, not try and buy lows and sell highs which is impossible!

Putting the System Together

Not all breakouts are valid and you have to find the best ones and furthermore, to put the odds on your side even more, you need to confirm them by looking at momentum and we will look at this and more in part 2 of this article series, as we put together a simple robust Forex trading strategy for profit.

By: Samuel Leslie Berkovits

Learning Mathematics » Trading Strategy

Fx Trading Strategy – the Application of Mathematics to Reveal the Theory of Market Movement

Forex Trading Strategies – a Strategy You Can Learn Easily and Apply in 30 Minutes a Day