RoboForex - roboforex.com

[RoboForex Contest]

Dear traders!

This week, a RoboForex project called ContestFX will continue, as usual, with the following competitions:

The 146th competition of "Demo Forex" entered its second week.
The 412th competition of "Week with CFD" has just started.
The 546th competition of "Trade Day" will start on 10.05.2023 at 12:00.
The 460th competition of "KingSize MT5" will start on 11.05.2023 at 20:00.

We would like to remind you that all winners of our contests receive prize funds to their real accounts, and they can use those funds for trading in Forex instead of investing their own savings as the starting deposit.

We wish good luck to all of you!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade the “Base 150” Strategy

Author : Victor Gryazin

Dear Clients and Partners,​

In this review article, we will talk about the medium-term indicator strategy “Base 150”. We will explain how it works, how to set the indicators, and how the strategy can be used in trading.

How the “Base 150” strategy works

This indicator strategy uses four exponential moving averages (Moving Average, MA) – EMA (6), EMA (25), EMA (150), and EMA (365) – to confirm the trading direction and search for trading signals. This indicator has long been considered a simple and effective tech analysis tool, which helps determine trend movements and support or resistance areas on the price chart.

The name “Base 150” comes from the first version of the strategy, which used only one slow-moving average EMA (150). This trading approach was later improved to include one more moving average EMA (365), but the name remained unchanged. In this strategy, the Moving Averages not only serve as trend indicators but also as dynamic support/resistance levels, which are used to conduct trades.

How the “Base 150” strategy works:

• To find buy signals for a financial instrument, the quotes should rise above the slow EMA (150) and EMA (365), thereby confirming the uptrend. Next, the trader needs to wait for a downward correction until the price first touches one of the four moving averages, followed by an uptrend reversal – this will be a signal to buy
• To find sell signals for a financial instrument, the quotes should settle below the slow EMA (150) and EMA (365), thus confirming the downtrend. Then the trader needs to wait for an upward correction until the price first touches one of the four moving averages, followed by a downward reversal – this will be a signal to sell

The “Base 150” strategy is primarily aimed at trading the EUR/USD, GBP/USD, USD/CHF, and USD/JPY currency pairs. However, it is versatile enough and can be used to trade other financial instruments. The recommended timeframes on the chart are H1, H4, and D1. Trades are made in the direction of the trend after the price rebounds from the Moving Averages. Risk management for this strategy implies that possible losses per trade should not exceed 1% of the deposit.

How to set up the Moving Average indicators

To set up the indicators on the popular trading platforms МetaTrader 4 and МetaTrader 5, follow these steps:

1. Open the terminal and log in to your account.
2. Select the chart of your desired instrument.
3. From the Main Menu, go to – Insert – Indicators – Trend, and then click on Moving Average.
4. In the settings window that appears, select period 6, the colour and width of the line, MA method – Exponential. Click OK to apply the parameters and close the settings window.
5. Repeat the actions above for the other three moving averages. In the settings window that appears, select the periods 25, 150, and 365, the colour and width of the line, MA method – Exponential. Click OK to apply the parameters and close the settings window.
6. As a result, the chart will show four Moving Averages – EMA (6), EMA (25), EMA (150), and EMA (365).

How to buy with the “Base 150” strategy

• The market is in an uptrend, with the quotes and fast-moving averages EMA (6) and EMA (25) rising above the slow-moving averages EMA (150) and EMA (365)
• The trader waits for a downward correction until the price first touches any of these moving averages, followed by an upward price reversal. Further touches should be ignored as the trade is to be opened only after the very first touch
• For a more accurate entry when the price touches the moving average, a lower timeframe (e.g. H1 for H4 or H4 for D1) can be used to trace how quotes reverse upwards
• In case of an upward reversal, a buy position is opened. If there is no reversal, the signal is ignored, and the trader waits for other moving averages to be touched
• Stop Loss is set just below the local low formed by the correction. The expected Take Profit should be twice the Stop Loss amount

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

False Signals in Forex: How to Detect and Avoid Them?

Author : Maks Artemov

Dear Clients and Partners,​

Having opened a position, many traders ponder at the question: “Why did it close with a loss if I seemed to do everything right? Almost all signals by the strategy were there but in the end, the price went in the opposite direction”. The keyword in the question is “almost”. Sometimes the market makes movements that you cannot forecast or calculate, in which case indicators turn out virtually useless. What was the point? What went wrong? The answer is simple: the trading strategy gave a false signal, and the trade turned out losing.

Let us try to make it clear why such things happen and why false signals appear.

Why do false signals emerge?

News is, perhaps, the most frequent reason for false signals. As you know, the market accounts for everything, and before some news is officially published, the quotations react and start moving in a certain direction. Normally, if some preliminary results turn out better than expected (such as the GDP reports), the quotations will grow. However, practice shows that the quotations start growing before the publication of the news itself, and at the renewal of the data, the market makes an abrupt reversal and starts a steep decline.

At this moment, Stop Losses trigger at the positions opened beforehand, and impatient market participants worsen the situation, craving for a swift and large profit. Several minutes after the publication of the news, the market calms down, and the price starts going in the correct direction.

False breakaways of levels

In tech analysis, the most widespread false signals are false breakaways of levels. There are two options of trading support and resistance levels: to trade bounces off them or their breakaways. Here is where market players get mistaken.

Let us imagine trading bounces off the resistance level. The price reached the level, and the trade decided to open a selling trade. They placed the SL behind the level (in a safe zone) but the price broke the level away and close the trade by the SL.

What do impatient traders do in such cases? Normally, they open an opposite (buying) trade and get their position closed by the SL again. The conclusion is simple: impatience and hurry will never do you good in trading.

How to avoid false signals?

As I have said above, you will hardly exterminate false signals altogether. But minimizing their number is available to almost any trader, just follow several rules:

When trading the news, check the history

Using fundamental analysis for trading, study the influence of some news on the market historically. Quite often, the market reacts to the same news in the same way, so you can forecast the reaction and make the right decision.

Do not hurry to open an opposite order

If your first position closed by the SL, do not rush at opening an opposite one. In most cases, the market will carry on in the direction of your initial position. Note that you usually open an opposite order not by the strategy but emotionally.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

False Signals in Forex: How to Detect and Avoid Them?

Author : Maks Artemov

Dear Clients and Partners,​

Having opened a position, many traders ponder at the question: “Why did it close with a loss if I seemed to do everything right? Almost all signals by the strategy were there but in the end, the price went in the opposite direction”. The keyword in the question is “almost”. Sometimes the market makes movements that you cannot forecast or calculate, in which case indicators turn out virtually useless. What was the point? What went wrong? The answer is simple: the trading strategy gave a false signal, and the trade turned out losing.

Let us try to make it clear why such things happen and why false signals appear.

Why do false signals emerge?

News is, perhaps, the most frequent reason for false signals. As you know, the market accounts for everything, and before some news is officially published, the quotations react and start moving in a certain direction. Normally, if some preliminary results turn out better than expected (such as the GDP reports), the quotations will grow. However, practice shows that the quotations start growing before the publication of the news itself, and at the renewal of the data, the market makes an abrupt reversal and starts a steep decline.

At this moment, Stop Losses trigger at the positions opened beforehand, and impatient market participants worsen the situation, craving for a swift and large profit. Several minutes after the publication of the news, the market calms down, and the price starts going in the correct direction.

False breakaways of levels

In tech analysis, the most widespread false signals are false breakaways of levels. There are two options of trading support and resistance levels: to trade bounces off them or their breakaways. Here is where market players get mistaken.

Let us imagine trading bounces off the resistance level. The price reached the level, and the trade decided to open a selling trade. They placed the SL behind the level (in a safe zone) but the price broke the level away and close the trade by the SL.

What do impatient traders do in such cases? Normally, they open an opposite (buying) trade and get their position closed by the SL again. The conclusion is simple: impatience and hurry will never do you good in trading.

How to avoid false signals?

As I have said above, you will hardly exterminate false signals altogether. But minimizing their number is available to almost any trader, just follow several rules:

When trading the news, check the history

Using fundamental analysis for trading, study the influence of some news on the market historically. Quite often, the market reacts to the same news in the same way, so you can forecast the reaction and make the right decision.

Do not hurry to open an opposite order

If your first position closed by the SL, do not rush at opening an opposite one. In most cases, the market will carry on in the direction of your initial position. Note that you usually open an opposite order not by the strategy but emotionally.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project invites you to take part in the following demo contests:

The 146th competition of "Demo Forex" has gained "full speed".
The 413rd competition of "Week with CFD" has just started.
The 547th competition of "Trade Day" will start on 17.05.2023 at 12:00.
The 461st competition of "KingSize MT5" will start on 18.05.2023 at 20:00

To join the community of winners, all you have to do is to go through a short registration procedure just once, after which you will be able to participate in any of the contests you like with just a couple of mouse clicks.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Why Would Private Trader Become Manager?

Author : Vadim Kovalenko

Dear Clients and Partners,​

Coming to the world of trading and investments, beginners see reaching the desired profitability as their first goal. The only success that is considered truly decent is the situation when a person earns their living by just investments in financial markets.

I would like to remind you that trading is such an occupation that anyone can learn, yet it lacks a career ladder in its classical way. Success expresses itself in the quality of trades and the money you make. Even if you get the maximum from your trading talents, you might still earn less than you need for satisfying your basic needs. Hence, many face the question, what is next.

One way is to start working with investors and attracting money for trust managing. Being a manager, one can increase their working capital several times, and profit will also increase several times in absolute values with the same profitability in relative values. This article is devoted to the correctness of the idea and the underwater rocks on your way to the long-craved financial freedom.

Trading on your own: pros and cons

Let us get started with finding out what means trading on your own, what peculiarities this process has and what conditions it requires. Here we set the rules ourselves, choosing the trading strategy, instruments, and acceptable risks. You only have your own money on the account, so no one will suffer from losses if you fail. Theoretically, your income is limited by nothing but your deposit and psychological peculiarities. This is mostly the main reason to become a financial market player.

Now – to the advantages and drawbacks of retail trading. The pros are:

• An easy start. To become a trader nowadays, you only need to register an account at a broker and deposit it upon verifying.
• A low entrance threshold. To start trading, even 10 USD might be enough. In this case, sure, there is little chance for earning your living.
• Making fast decisions. You do not need to consult or notify anybody of the decisions you make in the market.
• Profit. As long as you change your instruments and risk levels yourself, you are the one to reap the benefits of your work. Moreover, you also decide when to withdraw or deposit funds.
• Tax incentives. In certain countries with developing market economies retail investors have the right to pay lower taxes.

And here are the drawbacks of this job:

• Shortage of funds. A trader can earn up to 5% of their deposit; if the latter is 1,000 USD, you will hardly feel that you make any profit at all. To save a decent sum, you will need at least several years. If you are not employed, you will find yourself in real financial trouble.
• Time. You will spend several years to learn the theory of trading and drill your skills. Learning in this sphere is continuous.
• Commission size. As a rule, brokers provide individual conditions to VIP clients only. An ordinary trader has to trade on general conditions that do not always comply with their trading strategy.
• Psychological load. If your welfare depends solely on your trading, this will be a source of constant stress.

As you see, private trading has both pros and cons. Remember that for making a more stable profit and having a palpable income you need to operate sums starting 100,000 USD. Few traders have such a capital, hence, others decide to attract other people’s money for investments

Asset manager – an important stage of a trader’s development

Overcoming the difficulties of individual trading, a fresh-from-the-oven manager will start looking for money. You can find partners both on the Internet and offline.

Investment account

The majority prefer opening a special account at a broker with public statistics that investors can deposit. In this case, you can avoid personal contact with investors and work just via answering their comments online. To attract partners this way, you need to demonstrate your success and enter the top-10 rating of investment accounts. Money attracted this way are seldom over 5,000 USD.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, a RoboForex project called ContestFX offers you the following competitions:

The 146th competition of "Demo Forex" has crossed its "Equator".
The 414th competition of "Week with CFD" has just kicked off.
The 548th competition of "Trade Day" will start on 24.05.2023 at 12:00.
The 462nd competition of "KingSize MT5" will start on 25.05.2023 at 20:00.

We would like to remind you that all winners of our demo contests receive prize funds to their real accounts, and they can use those funds for trading on the Forex market instead of investing their own savings.

Don't miss your chance to be one of the winners!

Sincerely,
RoboForex Contest

 

[Vlad RF]

What is Volatility and How to Use It on Forex

Author : Victor Gryazin

Dear Clients and Partners,​

In this article, we’ll talk about a term called volatility. It’s a very important parameter of the financial instrument price, which is used for forecasts and trading.

What is volatility?

Financial markets never stand still, they are constantly moving. To understand this, just look at the chart of any financial instrument – prices are either rising or falling and quite often trading sideways. For assessing the market activity and price dynamics, there is an indicator called volatility.

Volatility is a range of movements of the financial instrument price over a certain period of time (day, week, month, etc.). In other words, volatility shows how high or low the financial instrument price may rise or fall in a definite time. Volatility can be calculated in percentage or points (the minimum value of price movements)

The stock market is believed to be one of the most volatile and changes in prices of different companies are often measured in percentage. For example, if a stock cost $100 at the beginning of a trading session and added (or lost) $10 during the day, then its volatility equals 10%. Stocks of large companies usually have daily volatility of about 5-10%, mid-caps and low-liquid stocks – 20%, 50%, or even more than 100%.

On the Forex market, price dynamics of currency pairs are less significant in percentage terms but it’s due to the trading volumes, which are also much lower. The volatility of currency pairs is usually measured in pips. For example, USD/JPY is considered to be moderately volatile and usually passes 50-70 pips a day, while GBP/JPY is more volatile and its average daily range is between 100 and 150 pips.

How to use volatility in trading?

First of all, volatility is used for assessing opportunities to trade any given financial instrument. Traders make money on price movements, that‘s why instruments with high volatility are more preferable for trading. The more actively a financial instrument moves, the more opportunities traders have to make a profit on this movement.

Long-term investors are more careful with volatility because they usually trade without Stop orders, while high volatility implies high risks. As a result, they prefer a balanced approach, when they choose an instrument with moderate volatility but which has a powerful fundamental or technical background for long-term movements.

On exchanges, one may directly trade volatility by means of futures and options. For that, a lot of different volatility indices were developed with VIX being one of the most famous. This index is calculated based on the US stock index S&P 500. VIX is sometimes called the “fear index” – at the time of panic it rises and at the time of calmness – vice versa.cur

Indicators for trading using volatility

For calculating and using volatility in trading, a lot of technical indicators were created. Let’s check three of them, which are quite popular with traders.

ATR (Average True Range)

ATR indicator is famous for assessing volatility, which was created in 1978 by J. Welles Wilder). The major goal of ATR is to calculate the current volatility of a financial instrument. Volatility in pips is calculated by averaging out the highest and lowest values of the price over a specified period of time.

The ATR indicator is built in a separate window below the price chart and consists of one major line, which shows only positive values starting from 0. Average True Range shows changes in volatility, it will equally grow when volatility rises in both ascending and descending trends. The higher the market volatility, the bigger the indicator value.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the holidays in the US and the UK

Dear Clients and Partners,​

We are informing you of the changes to the trading schedule due to the Memorial Day celebration in the US and the Late May Spring Bank Holiday in the UK.

This schedule is for informational purposes only and may be subject to further change.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on CFDs on the US indices (US30Cash, US500Cash, USTECHCash) and the Japanese index JP225Cash

• 29 May 2023 – trading stops at 7:40 PM server time
• 30 May 2023 – trading as usual

Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on Oil (Brent, WTI)

• 29 May 2023 – trading stops at 7:40 PM server time
• 30 May 2023 – trading as usual

Schedule for trading on CFDs on US stocks

• 29 May 2023 – no trading
• 30 May 2023 – trading as usual

R StocksTrader platform

Schedule for trading on US Stocks and ETFs

• 29 May 2023 – no trading
• 30 May 2023 – trading as usual

Schedule for trading on CFDs on US Stocks and ETFs

• 29 May 2023 – no trading
• 30 May 2023 – trading as usual

Schedule for trading on CFDs on the US indices (US30, US500, NAS100) and the Japanese index JPY225

• 29 May 2023 – trading stops at 7:40 PM server time
• 30 May 2023 – trading as usual

Schedule for trading on CFDs on the UK100 index

• 29 May 2023 – no trading
• 30 May 2023 – no trading
• 31 May 2023 – trading as usual

Schedule for trading on CFDs on UK Stocks

• 29 May 2023 – no trading
• 30 May 2023 – no trading
• 31 May 2023 – trading as usual

Schedule for trading on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (BRENT.oil, WTI.oil)

• 29 May 2023 – trading stops at 7:40 PM server time
• 30 May 2023 – trading as usual

cTrader platform

Schedule for trading on Metals (XAUUSD, XAGUSD)

• 29 May 2023 – trading stops at 7:40 PM server time
• 30 May 2023 – trading as usual

Please take note of the above trading schedule changes when planning your trading activity.

* This schedule is for informational purposes only and may be subject to further change.

Sincerely,
The RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project will continue, as usual, with the following competitions:

The 146th competition of "Demo Forex" is reaching its end.
The 415th competition of "Week with CFD" has just started.
The 549th competition of "Trade Day" will start on 31.05.2023 at 12:00.
The 463rd competition of "KingSize MT5" will start on 01.06.2023 at 20:00.

You can participate in our contests after completing a simple registration, and our winners who receive prize money can use those funds to perform trading operations in the Forex market instead of investing their own savings.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest