Tuesday, September 23, 2008

The Way of Consistent & Profitable Forex Trading Technique

Introduction

I have spent countless hours of Trading Forex, spend a heck amount of time reading all kinds of materials, saving and testing all kinds of Indicators. I have loss quite a lot of money before, and have throughout time, learned and unlearned, have the patient, to go through all the difficult time and good time.

I have developed and distributed freely my profitable trading system in some forex forums.

Later, when I am capable to develop an EA, my analysis of the whole Forex Trading system has changed, especially when it involves BackTesting and ForwardTesting of the EAs.

The Problem with normal EAs

I have tested numerous EA, commercial, non-commercial and especially my own EAs based on ALL KINDS of Trading Systems and Rules, backtested and forwardtested. The Result? Almost all EAs fail miserably during RANGING times. In fact, the amount of losses in the RANGING time, even though is quite small compared to gain during TRENDING time, but it is those SMALL LOSSES that will eat up the profit in the long run. A tweak here and there in backtesting will work beautifully, but when forwardtesting, again, if fails miserably.

Nonetheless, there are, I believe, few EAs in the market that work but One has got to really test it out OR One got to fully understand the Rules and When to Intervene into the EA OR the owner of the EA will create A Technical Support Team to support the operation of the EA and this defeat the purpose of having an EA.

That's why I have spent a lot of time in analyzing all kind of trading systems, developed all kinds of EA based on those trading systems including my own, until I finally spend a lot of my time in studying the BEHAVIOUR of the Correlation and the Pseudo Hedge of EURUSD and USDCHF Pairs. That SIMPLE thing is finally found! The rest is history to be taught.

Why Correlated Hedge And Why it works Consistently and Profitably

Correlated Hedge is a term I used to define a trading system or technique based on pairs correlation and trade based on the movement of its cross pair. But, somehow, the information regarding this trading technique or system has never been described properly and it is always painted into believing that this technique is not profitable or drawdown keeps getting higher, or it will never close the trade at the most acceptable amount of waiting time because sometimes it takes months to be in profit zone.

Analyze this. Or Rather do this - in your demo account - BUY EURUSD (or SELL EURUSD) at any price and at the same time BUY USDCHF(or SELL USDCHF) with the same lot no. Then wait. If it goes negative, hold the trade and just wait. Wait until the combination of both trades shows positive pips and if the profit level is to your satisfaction, close the trade. And then, repeat. Repeat this process, again and again.

You will find, no matter what, in a month, or in a year, your equity will gradually increased from time to time (doubling your equity is not a problem with proper Lot No calculation) - the only thing is - you have to have the Patient to wait because sometimes, to close or to achieve profitable trades it can come close to several months of waiting and the drawdown amount can scare a lot of people.

The reason why it works consistently following the market cycle is because for those correlated pairs, the correlation between the two is 94 - 98% 'negatively' correlated almost all the time (refer mataf.net) - and it is at that 'small' percentage of time when it is discorrelated that the profit taking takes place.

Summary

The KAS Correlated Hedge EAs has proven time and again, consistent profitable trade throughout time, utilizing the principal of Correlated Hedge described and one of the best part is, it has minimal drawdown. Its strength come from its calculated algorithm that will take profit at its optimum level, taking hedge to prevent huge drawdown and releasing the hedge at optimum time, so that the 'waiting' time is no longer a pain in the ass. The EA has been tested throughout time and it is robust and consistent enough. This KAS Correlated Hedge EA is truely a Winner.

It is stress free, it is automated and with proper configuration, you are set to your financial freedom, finally.

Auto Forex Enterprise - Your Path to Financial Independence

Thanks to the internet, practically anyone with a computer and a stable internet connection can trade currency. If you're thinking about getting into the forex market or you are currently trading in the market already, you should think about forex automated trading software to turn your ordinary campaign into an auto forex enterprise.

Forex automated trading software can save you a great deal of hardships and help to put you on the same level as the experienced traders. There are a number of programs in this niche which have somewhat given automated trading software a bad name. There are, however, a handful of gems mixed in whose publishers have taken the time to tweak and polish. These are the products I'm referring to when I mention forex automated trading software.

While the traditional stock market keeps set hours each day, the forex market occurs over a large number of international markets and consequently keeps much longer hours. This is a distinct advantage this market has over the stock exchange, but you've got to be able to stay on top of it at all times to completely take advantage of it. In fact, to be successful, it is a necessary that you stay on top of the market at all times. While this is impossible to do yourself, you have a couple of other options. You can hire someone to keep watch over your campaign, or you can turn your manual campaign into an auto forex enterprise. The software keeps a vigilante watch over your account and makes trades for you without you having to be there. With the entry of a bit of guidance information as far as what you want to trade and gain from the program, the program works largely independently of you but to ensure that you'll always be on the right side of your trades, thus minimizing your losses and maximizing your profits.

The program also constantly analyzes changes and trends in the market to accurately predict where it will go next. The most accurate signal generators are almost flawless, so that you can trade ahead of the curve and maximize your profits and again constantly be on the winning side of most of your trades.