Forex Trendy Review - Best Forex Trend Scanner

What is Forex Trendy?

Forex Trendy is trendy scanner to avoid trading during uncertain market periods. You can get a lot of trading signals software for Forex and binary options but at the current time Forex Trendy is the best trendy scanner software. It's used no Forex indicator but the Forex trendy is determined by pure price action.

Is Forex Trendy a scam?

Forex Trendy is not provided scam signal. It's have live trading room services, providing user with access to live chats, strategic guidance, price action setup, ongoing support, audible alert, email alert, user friendly interface and mach more. Forex Trendy provide 60 days money back guarantee, So that you can make a the best own decision.

How dose work Forex Trendy

Forex Trendy automatically detects the best possible trends. It's observed Forex market and providing signal depend on markets condition. Forex Trendy have simple tools and live charts so that you can get best possible entry point and increase your daily profit.

Forex Trendy Features for member

• Live Charts
• 24/7 Customer service
• Audible alert and Email alert 
• 34 currency pair
• E-book
• Friendly interface
• 60 days money back guarantee

Buy Now Forex Trendy

Free forum submission sites list

Dear Friends,

Forum discussion is also a part of off-page optimization.Forum discussion give more traffic on

your website and also make high Page rank of your website.

If you want forum submission plz follow give list with founding your product category.


Webmaster's Forums List with PR:
* http://forums.digitalpoint.com 4
* http://forum.kahuki.com 3
* http://www.webproworld.com 5
* http://www.sitepoint.com/forums 6
* http://forum.blogexplosion.com 5
* http://www.redflagdeals.com 5
* http://www.small-business-forum.com 4
* http://forums.seochat.com 3
* http://www.v7n.com 5
* http://www.seo-guy.com 4
* http://www.highrankings.com 5
* http://www.ihelpyou.com 4
* http://www.searchengineforums.com 6
* http://forums.seroundtable.com 3
* http://warriorforum.com 4
* http://www.5staraffiliateprograms.com 4
* http://forum.ableton.com 4
* http://www.affiliateseeking.com 4
* http://www.theadminzone.com 5
* http://www.allcoolforum.com 2
* http://www.affiliates4u.com 4
* http://www.businesss-forum.com 3
* http://forums.cnet.com 7
* http://www.dnforum.com 5
* http://www.dnlodge.com 3
* http://www.ewealth.com 3
* http://forums.gentoo.org 6
* http://www.googlecommunity.com 4
* http://www.idnforums.com 3
* http://www.moneyfanclub.com 2
* http://www.namepros.com 5
* http://talk.iwebtool.com 3
* http://www.clicks.ws 2
* http://forums.seo.com 4
* http://www.simplemachines.org 7
* http://www.v7n.com 5
* http://www.talkfreelance.com 3
* http://forums.webicy.com 0
* http://www.web-life.org n/a
* http://www.hostingforum.ca 4
* http://www.webhostingtalk.com 7
* http://www.webmasterforumsonline.com 1
* http://www.webmaster-talk.com 3
* http://www.webproworld.com 5
* http://www.webtalkforums.com 4
Business Forums with Page Rank:
* http://www.ukbusinessforums.co.uk 5
* http://www.smallbusinessforums.org 3
* http://www.small-business-forum.com 4
* http://forums.teneric.co.uk 5
* http://www.businessforums.com 1
* http://www.a1businessforums.co.uk 4
* http://www.thewholesaleforums.co.uk 2
* http://www.blogtrafficschool.com/forums 4
* http://www.businessknowhow.com 5

AUTOMATED TRADING

We have noted in Chapter IV the difficulties of the work of each trader. The presence of this difficulties gives rise to different disputes around the question who is more successful in trading: a human being or a trading robot.

A person who carries on trading at the market depends on emotions and mood swings, level of health, tiredness, the influence of external information (news, gossips, analytical materials) etc. This list is endless. The exceed self-confidence is another factor that has to be taken into consideration. It appears among the beginning traders after their first success, and can influence badly on the further results. The positive side of all this is a human intellect and experience, and also creative (in good sense) methods of work.

A computer of nowadays has no creativity, and AI achievements (achievements in development of artificial intelligence) in general are not that good in comparison to a human mind. Nevertheless a computer has the whole number of advantages: it can work stably very long time, it does not need to take a rest, or to sleep, he does not make decisions that depend on emotions. In its actions it follows strictly and implicit the algorithm, that in its turn, realizes that or this model of the situation at the market.

A trading robot (Mechanic trading system (MTS) or EA is a computer software that has special program language or the language of special purpose (It can be MQL4, MQL5, EasyLanguage, Qpile and other languages included in the relative trade platforms as well as such languages like С+ or +C#, Delphi, VisualBasic etc). In case if the language is a part of trade platform (installed in trade terminal), then it can use directly the opportunities of the terminal for trading operations. To program using main languages for that or this platform API functions are needed that are provided by some brokers companies. LiteForex propose to its client either MetaTrader4 or MetaTrader5, that has installed MQL4 and MQL5 languages respectively. It allows to an IT-manager to get access directly to all possibilities of trade terminal and make different trade operations without any additional means (so-called "bridges", "connectors" etc).

The main feature of a trading robot is that there is a possibility to test the strategy that is presented as a program using historic data (i.e. to model its behavior as if it worked in the past and to estimate the results of this work). Undoubtedly it has to be remembered that the strategy profitability in the past is a guarantee of the profitability in the future. However due to testing it is possible to a certain extent to estimate the strategy profitability and its risks. From this point of view it can be noted that a trading robot does not "guess" the market, but uses statistic advantages of his strategy. The modeling of the work of the strategy in the past can has mistakes and should not be regarded as absolutely accurate.

In case of the positive results of the strategy, that satisfy a trader, a trading robot can get the possibility to make an operation at the real market. LiteForex company provides to all client VPS service (virtually honest server), that allows to set a trading robot to remote machine. You will not need to leave your PC switched on: LiteForex server will work for it. 

With such instruments (VPS+EA) you can fully organize automated and authorized work of your own strategy at the Forex market. As it was said abode, the server can be provided by LiteForex company (along with it you can use the services of any other companies, that provide with such a server or use your own PC, however in the last case it has to be switched on with stable Internet access and uninterrupted power supply). Thus, the question of the place of installation of a trading robot we consider as a technical matter. And now let us see the process of creation of a trading robo

IDEA

First of all you need a trading idea. Trading idea is a certain method of work at Forex, that, as the author supposes, can bring profit. There are dozens of good trading ideas on the Internet. Some of them are formalized and described very good, the others are shown in general terms. The ideas of "scalping", "arbitrage", "trading in the channel", for example, are wide-spread and make together the whole class, each of which has many separate strategies. Each of these classes is a generalized approach to the gain of profit at the financial markets, that is general for all or most of strategies. that make part of it. That is why this class ("scalping", for example) cannot be regarded as a trading idea.

One of the classic example of a good trading idea is "Turtles". Using this example we will review all the stages of building of mechanic trading system (MTS), excluding only a concrete program of realization, as it is a topic for another discussion, and we cannot include it in our course. 

It is no coincidence that we have chosen exactly this example. The case is that in accordance to the most wide-spread version of the history of origins of this strategy, it was created to solve the arguments around the question if a trader needs a special talent, a God's gift or "sixth feeling" ("vision of the market"), to understand the art of trading or it is enough just to obtain a certain set of strict rules and follow them.

The sense is if the idea to gain maximal profit of long-term trends, when they appear. (For note: it is considered that about 35% of time any market is in state of ascendant or descendant trend, and 65% - is in flat). The flat period for "Turtles" strategy is an unprofitable one, however when it forms the trend then all the loss accumulated during flat-period is crossed by one-two transactions and profit appears. The business here is that the strategy "Turtles" supposed strict limit of loss positions at the stage when the loss could not become too big. Thus the unprofitable transactions were small. At the same time if a trend starts to form, then Turtles allows the profit to grow without closing of profitable position, when the size of profit is too small. Thus it is possible to say that Turtles realizes one of basic rules of trading: "Limit the losses and give rise to the profit!"

Before we will start another chapter, it has to be noted, that primarily Turtles was developed for the trading of futures contracts at the exchange market. We will consider it at the Forex exchange market. We will make some simplifications to help to a beginner to understand the most important information without insignificant details that may be considered independent

FORMALIZATION

The building of mechanic trading system requires more than just one idea. It may be enough for introduction of so-called "intuitive trading". But it requires the gift and, of course, well-developed intuition. It should not be denied that there are people with such abilities. But we do not take this variant into consideration. We will describe here the things that are connected with building of mechanic trading system, that will follow strictly to certain rules.

The rules of trading system should be simple and understandable: available for formalization and exposition in one programming language. The definition of complex of such rules will be the formalization of trading system. All together these rules should give strict, accurate and informational answers to the following questions:

• What financial instrument should be chosen for trading (the building of a backlog, diversification)?
• What volume should have each transaction (the size of the position)?
• What conditions are required to open the positions (the conditions of enter)?
• What level is needed to leave the loss position (stop-loss)?
• What level is required to leave the profit position (take-profit)?
• What methods should be used to open and close the positions (by pending order or the market)?

The systems that have answers to these questions are considered to be "full" systems.  

Let us formalize the Turtle trading strategy using following rules (it is noted, that the original description of Turtle trading system is a little bit more difficult and can get a beginner confuse):

• There are seven currency pairs should be used, that make part of "Majors" group, including EURUSD, GBPUSD, USDJPY, USDCHF, AUDUSD, NZDUSD, USDCAD.
• Each transaction margin should be equal to 1% of deposit. Rounding to 0.01 lot.
• The opening of the position should be made with the exceeding (at least to one point) of the maximum level (buying) ir minimum level (selling) within last 20 hours.
• The closing of position with loss should be made after reaching the loss equal to 2% from the current deposit.
• The closing of the profitable position should be made after exceeding the size of floating profit by 2% - after reaching 10-hours minimum (for the buying position) or 10-hours maximum (for selling position). 
• The opening and the closing of positions should be made by pending orders: buying - buystop, selling - sellstop, quiting - stoploss.

In our small (very simplified) complex of rules we do not regard the moments, that are connected with "resupply" (increase of volume of the position in case of movement of the market in desirable direction), and also some other moment, that we consider to be insignificant ones. Also the primary Turtle system was meant for a longer time interval.

Let us leave comments for each rule. 

The usage of several currency pairs will permit to reach two goals. Firstly, it is a diversification (distribution of deposit between several instruments with the goal to minimize risks and optimize profit). Secondly it increases chances to "catch" the trend: meanwhile one instruments will fluctuate in the flat, the other may make part of the trend.

Singling out the separate small volume for the transaction allows to exclude practical possibility to lose the whole deposit (it will need a big quantity of transactions one after the other). It is necessary to open a transaction with 1000 dollar deposit using the volume equal to 0.01 of lot (marginal deposit for 1:100 leverage in this case $10, i.e. 1% of deposit). 

Speaking about the level breaking, there are different rules in different systems, that allow to identify the break. The case is that it is useful to decrease the quantity of system reactions for so-called "false breaks" - when the price breaks the channel position for some time, and then returns. However it will make the system more difficult. In our case we will not add additional rules of filtration of false breaks, we will count that any increase of price limit of the channel for at least 1 point is a break and it should initiate a transaction.

The price of one standard point in case if the volume of transaction will make 0.01 of lot, will be equal to $0.1 (10 cents). It means that 200 point loss ($20 or 2% of deposit) requires the closing of transaction using stop-loss.

When the price starts moving in favorable direction (for buying transaction - it is the growth, and for selling transaction it is a decrease), then we start gradually to move stop-loss, setting it every our at corresponding 10-hours minimum (for buying transaction) or 10-hours maximum ( for selling transaction). 

The usage of pending orders for opening and closing of the position will increase the accuracy of rule following, avoiding losses with the help of quoting.

TESTING

The rules described above can be exposed in any programming language including MQL4. We will not take into consideration the refinements of programming in this language. Those who desire can find on the Internet not only ready guides, that help to realize Turtle algorithm, but also step-by-step manuals for the writing of such strategies. Let us discuss some other things.

In case if that or this algorithm is exposed in the form of programming language, the possibility appears to define its strong and weak sides using historic data. MT4 also gives such a possibility. It has to be noted that modeling of trading system behavior may have some mistakes and should not be considered as absolutely accurate.

To make the testing to give important statistic data we should take into consideration the following recommendations:

• Within testing available time the system should make big enough quantity of transactions. If n accordance to the system the average transaction has 10-hours-period, that the strategy has to be tested at the 1000-hours interval (to receive about 100 transactions). In other words it can be exposed as a demand of representation of statistic output.
• As the results of testing may depend on the moment of beginning of testing period, it is reasonable to test the system, changing the point of start of the test.

As the result of tests of Adviser a trader gets statement and graphic of changes of account features like balance and equity. The data analysis - it is a separate task, that, unfortunately, cannot be described in this course. It should be noted that it is necessary to analyze attentively and estimate such important test results as correlation of profitable and unprofitable transactions (in accordance to the quantity and total volume of profit and losses), profit-factor, maximal drawdowndown in one transaction, maximal drawdowndown in continual series of unprofitable transactions, and also maximal profit in one transaction and maximal profit in continuous series of profitable transactions.

You should also pay attention to the even interchanging of unprofitable and profitable transactions. The results of analyses allow to make a conclusion about the most suitable strategy of money management for given trading strateg

SETTINGS (ADJUSTMENT)

In accordance to analysis results of the test a trader can make a decision about the changes of those or these features with the goal of optimization or maximization those or these features of trade strategy. In particular, you can try to maximize profit or find optimal correlation of profit and risk at the current level of risk.

The most important nuance in the question of trade strategy - is segmentation of all available massive of work of historic data into two general intervals: test and valid one. The size of valid interval should give representational statistical sampling. The size of test interval can be larger or the same (it is desirable for this size to be twice larger).

Picture 19. Test and valid interval

The deal is that any given historic period can choose those settings of the strategy that will make it more profitable. The strategy in process of such setting is "matched" to the given data. The effect of so called "resetting" is when the strategy with definite settings gives good profit at the test interval, but at the valid interval ("unknown" for the trade work) the profit goes down.

On the basis of Turtle strategy let us see what settings can we change in process of optimization:

1. "Sensitivity" of the system to appearance of new trends increases, of the entering follows the break of less important levels (for example, instead of 20-hours maximum or minimum you can use 10-hours one). This will lead to the situation when the system will enter the market more frequently, and it means, that it will make more transactions. n the one hand, it is a plus. However on the other hand this more "sensitive" system will react to the bigger quantity of false breaks, and thus, the quantity of unprofitable transactions with those of them that follows one another, will grow. If the "sensitivity" of signals become smaller, the system will catch more significant trends. However in this case the system will enter the market significantly rarely and most of the time, the funds will not work, and will just stand idle.

2. In the same way you can change the "sensitivity" of the system to the turns, decreasing the degree of importance of extremums that give signals to quit.

3. Changing the capital share that is given for each certain transaction, you can increase the efficiency of money usage (i.e. the capital percent that makes part of investments will increase). However you should take into consideration that this increase of some long series of losses can bring strategy to deposit loss.

In case if the change of those or these settings bring to the successful results of the work of system at the test interval, the system should be tested at the valid interval to make sure that there was no "resetting" to the concrete historic period. The system, the settings of which are chosen optimally will give approximately the same results during testing both at test and valid intervals.

Apart from this the similar settings should be done (choosing test and valid intervals from the whole available historic period) for several different currency pairs. Thus the system will work normally with forecasted results for the chosen currency pairs (In our example it is the group of "margins"). 

It is strongly unrecommended to fudge settings of the system to the valid interval. In cases when you see that the system changes its behavior sharply at the valid interval, you should make a conclusion about probable "resetting" of the system to test interval and make a step back. 

Among other mistakes it has to be noted the situation when very good results of system work are obtained only at concrete test interval. The market dynamics at this interval can be very suitable for your strategy. For example, for Turtle strategy it is a very long trend with insignificant drawdowns. Even if test period is very long, but within this period the market behavior was characterized as monotonous (for example, trend only or flat only), you should try another interval and estimate the given difference. You should not try to chose the optimal settings for each definite period: in future the market will make such a position to which the system will not be rea

THE SIGNIFICANT INDICATORS OF RISK ANALYSIS

In the framework of this course we cannot research too deep the appropriate material. We will only note that the risk analysis - it is independent area of science, that is based primarily on mathematics and statistics. Due to the research in this area  it is possible to come to some conclusions about the results that may be expected from the system in future on actual basis (on basis of the information about results of transactions, i.e. of statement).

We will consider here (only with the aim of illustration) two important indicators:

• MDD (Maximal Drawdown Down)
• RF (Recovery Factor)

These two indicator in combination give us the image of system ability to return at the first level of balance after the transaction. Let us discuss it more profoundly.

Originally at the fund exchange market, where trading is led by sessions (for example, from 9 a.m. to 18 p.m. in accordance to a time zone), MIDD indicator was used (Maximal intra-day drawdown). Taking into consideration that in the end of the day all the transactions should be closed, this indicator could be interpreted as the maximal drawdown of the whole period of trading.

Look at the illustration.

Picture 18. Maximal growing drawdown

Here we can see that changes in balance was developed as follows. The stable deposit growth with relatively small drawdown took place before a-point, and this is of not our interest right now. the first significant drawdown appeared at a-point, that, however is not maximal growing drawdown, as later (after small recovery) the decrease of the balance level continued and b-point saw another local minimum. However b is not maximal drawdown. C-point saw absolute minimum of deposit of the whole history of the trading, and the distance from the "x" local minimum (blue line) is MDD indicator.

What should be reviewed with attention. Here we will not take the probability theory, however we should note that it is clear intuitively for any person. If there were several unprofitable transactions and that led to drawdown at "a"-point, then an analytic, that reviews this graphic should think of what will happened. for example, of this situation repeats. We have the second drawdown at "b"-point, that is remarkable of the fact that after the first drawdown the balance has not recovered yet. The third drawdown (at c-point) was less deep, however, it kook place until balance could recover  to "x" point.

Here we came to the point where the second indicator should be introduces - Recovery factor. It is the correlation between the absolute profit (for the whole period) and maximal increasing loss, i.e.

this indicator reflects indirectly the system ability to recover after drawdown, and consequently its stability and efficiency. Most analytics agree that 1.6. recovery factor is a ground one. Under condition that the system has demonstrated the recovery factor more than 1.6, this system can be regarded as stable and effective one. If the recovery factor is less than 1.6. the loss of deposit is more probable, as the speed of recovery after drawdown can be not fast enough.

In conclusion to this chapter it should be noted that two reviewed factors can be used for the most general analysis of the given statement of system work. Nevertheless this method is quiet simple and effective. You can find more detailed information among books in The List of Recommended Literature

SEVERAL GENERAL RULES OF MONEY MANAGEMENT

These rules of money management increase the money deposit security and provide secure work with operations with the highest possible profit. In other words they are called The rules of money management. The contemporary trading demands to stick to MM rules strictly without any guarantee of a profit though.

To provide security of money deposit it is necessary to stick to the following rules:

1. Total sum of invested money should not be higher than 50% of total fund. This rule is a foundation of the rule of estimation of margin under the opening of the position. many analytics think that the percent of invested means should be smallest than 5%-30%. It has to be noted, that we talk about the total sum (for several transactions). Thus this rules does not mean, for example, that it is reasonable to put all 50% to one transaction.

2. Total sum of money invested in one transaction should not exceed 10%-15% of total fund. In this case a trader has a guarantee that he will not become a bankrupt. In general, it means: don't put all your eggs in one basket.

3. The norm of risk for each opened position, that is defined by the stop-class level, should not exceed 5% of total sum of money. Thus if a transaction is unprofitable, a trader will be ready to lose 5% of his money. 5% is taken from Murphy works, however, for example, Elder takes 1,5 - 2%.

4. Total sum of deposits to the opened positions in one group of markets should consist of no less than 20%-25% of total capital. It is concluded from the fact that many other currencies behave the same way against dollar, especially after publication of economic news in the USA. That is why to diversify risks it is necessary to world both with currency pairs, that include dollar, and with cross-rates. Under such a condition the losses only in the opened positions will be covered partly by the profit gained from other ones.

There are certain rules that concern stop-loss and take-profit levels setting at the moment of opening the positions. All currency pairs are divided into those with high and low volatility. Most traders work with so-called "intra-day" trading, where the position are opened from 1 to 3 hours. These positions work with general "intra-day" market movement. To leave the position opened for the next day, you should have compelling reasons. The size of currency volatility defines the level of so-called "price noise", that is defined approximately as follows: 24-hours candlesticks are taken from zero-point GMT to zero-point, their size between shadows is measured (the distance between points "high" and "low"), and the given value divides by 24. The experience shows that the minimal value of price noise is approximately equal to 30 points, these currency instruments are called "of low volatility". If the minimal value of price noise is from 40 points the currency instruments are called "of high volatility". For the "intra-day" trading there is no sense to use stop-loss smaller than the price noise value, i.e. the invoiced value of stop-order cannot be smaller than 35 points.

5. The invoiced stop-loss/take-profit balance for one opened position cannot be lower than approximately 1:2; in other words, from mentioned above it is clear that invoiced stop-loss value cannot be lower than 35 points, and the take-profit value, respectively, higher than 60 points. This rule permits to have a small profit on account if the balance of successful and unsuccessful transactions is equal to 1:1.

There is a number of rules that has to be followed in trade operations. Generally speaking, a trader should be highly disciplined and organized to work in Forex, he should use certain systems in his work. Considering the intra-day trading, it is necessary to stick to the following rules:

1. It is necessary to analyze the situation at the market before opening the trade terminal in the beginning of the day. It means you should answer the questions: where are prices situated right now and why, what has happened at the moment when a trader did not track the movement of prices.

2. It is also necessary to meet with economic news calendar for a today. In what time (GMT) what news are published, and can they influence on the market and the movement of prices. The skills in the fundamental analysis are gained only with experience, thus the practical experience in trading is needed.

3. It is necessary to define current strength levels of basic currency instruments, used in trading, and current intra-day price diapason.

4. Using the results of analysis, it is necessary to make a trading plan for a day, that will include: the price limit of entering the market, the stop-loss level, the possible size of profit and, relatively, take-profit level. The conditions of entering the market and its quitting. The price situation, that will be freelance and will require immediate market quitting. It is necessary to understand that you should take into consideration the analysis conclusions in your decision making about entering the market and do not react on current losses in opened and transferred-to-the-next day-positions. It is necessary to make a strict plan of the term of the transaction while opening the positions, and after this term it is necessary to estimate the possibilities of quitting the market before significant changes in prices that can take place after movement during the night.

5. It is necessary to stick to the trading plan. You should answer the question: "What is the reason of entering the market?". The reason should be the combination of coincidence of analysis conclusions with current price situation, confirmed by technical indicators (no less than two).

6. It is forbidden to move the calculated earlier stop-less level in the direction of increase of possible losses, independently of situation. The work without stop levels is regarded to be even more risky.

7. While entering the market it is necessary to take into consideration possible currency rates moves after the publication of economic news. Short-term strong moves of currency rates may break stop-orders, and then the market will follow the direction that was defined by the trader. It is recommended to refuse to open additional positions and to save the current ones within 30 minutes before the publication of economic news that can influence on currency rates to a greater extent. You can do this by moving stop-orders to the point of no losses, or by closing the current positions taking into account the possible rate fluctuation.

The given rules can be used for the preparation to the transaction making and to the process of trading. Now we are going to discuss how you can analyze history of transactions on actual basis and what general indicators should attract special attention except of the growth of deposit or funds

GENERAL IDEA OF MONEY MANAGEMENT

Important parts of financial market trading is money and risk management. If market analysis (either technical or fundamental one) exists to give answer to the question "when and to which direction a position should be opened", money and risks management answers to the following questions:

• How to provide higher speed of money growth when risk is optimal;
• How to minimize risk when money growth speed is optimal;
• With which volume certain positions should be opened (including dependence of results of trading for previous periods);
• What a maximum consolidate volume position should be etc. 

First of all every trader should understand and accept the fact of losses: they are essential part of trading as well as profit. They exist like day and night, or like two sides of one coin. No matter how simple this truth is, not any beginning trader can accept it. The beginning traders' strive to make only profitable positions (an idealism, if it can be said so) leads to the breaking of general rules of money management. It works this way: unprofitable transactions are not closed (because of the hope that sooner or later the situation at the market will change and these transactions will bring profit), and profitable transactions are closed at once after the appearance of any small floating profit (see p.5.2). 

It is not right to hope that in process of practicing of trading skills you should strive to define with the help of analysis the direction of the market and open transactions only in the direction of the future movement. It is not possible to reach this goal. In any case, nowadays science does not find any hypothetic possibility of solving this task.

What does it mean? It means that at any moment the position has its risk. In particular, there are risks of unprofitability or of gaining the profit but not in appropriate size. Also there is risk of losses. The tasks of money and risks management are:

• to minimize size of losses;
• to minimize the influence of series of losses (of forecasted sequence);
• to minimize the losses in time of unfavorable conditions for market strategy;
• to maximize the profit;
• to compensate the earlier losses in favorable conditions of market strategy, and to gain maximum profit from this situation.

Here it has to be noted that that risks and money management takes place if a trader has a certain formalized strategy. In other case (if a trader took part in trading this morning because he was in high spirit, and yesterday because of the pain in his neck) we can discuss only factual possibility (1taking into consideration the given statement) of analysis of this result. Unfortunately, the experience shows that if beginning trader (that has lack of skills and knowledge) understands suddenly that he "sees the market" (i.e. using intuition he foresees the future of the market), it leads to "spontaneous" transactions-making, that will have for the result full loss of deposit, and statement analysis will be just a try to understand, what was the reason of such a result and where the most significant mistakes were made.

It is not necessary to turn strategy into mechanic trading system, but it should include some general rules, that give answer to the main questions (see p.6.3).

The second moment that has to be noted, it is tied connection between the potential profit of strategy with its risk. From the first sight it is possible to say that this connection looks like proportional one with a note that it is of line character. It means that in general case it is possible to expect that risk decrease will lead to the decrease in profit, and the profit increase will lead to increase in risk. But there are cases when increase in risk does not lead to increase of profitability, and vice versa. The ideal goal of money and risk management is to achieve the opposite situations: the increase in profit without increase in risk and decrease of risk without decrease in profit. This goal can be achieved.

Let us note an important thing, that from mathematical point of view is an doubtless fact: if a strategy includes positive mathematical expectation (even the smallest one) with the help of money management it is possible to achieve exponential deposit growth. In other words if there is a strategy where the trading of the constant volume, it gives a growth of deposit, no matter how small it is, there is a possibility to choose for this strategy the rules of money management that will make the exponential deposit growth instead of leaner one. The conclusion of this is the existence of some optimal volume of transaction for every strategy (for self-education we can recommend to meet with materials, that are devoted to optimal Phi (a letter in Greek alphabet)). We have no such a possibility in our course to make deeper research and mathematical calculations. The general rules of money management are given below. 

FACTORS OF SUCCESSFUL TRADING AND ADVICE FROM EXPERIENCED TRADERS

There are lots of different "Advice for traders", "Golden rules of Forex" etc. We did not bring them together in this course. We propose several general rules for a trader, so he can do the first steps. Unfortunately, our experience shows that you will break the rules. This is the process of education. Breaking the rules and making mistakes, you will form your trading skill and your own rules and laws. They, in the long run, will bring you to success.

From our part we propose several general recommendations. using them you will avoid too large losses at first stages. It is very difficult to give recommendations for all occasions. That is why you should not regard them as a doctrine.

• Deposit and volumes of transactions:
  • In the beginning define which sum of money will not bring significant difficulties in case of loss.
  • Use no more than 10% of deposit (10% for all consolidated positions at any time intervals for all instruments and in all directions).
  • Do not work for borrowed money, use your own means. If you get a bonus or a credit from the company, you have to think nevertheless that you can count only on your own means until you obtain the bonus in full.
  • Do not make too many transactions at the same moment. It increases the probability to make a mistake.
  • If it is not a tactic mean of your trade do not make "averaging" (do not add the volume to unprofitable position).
• Analysis
  • Analyze no less than two informational sources (for example, graphic analysis + news).
  • Do not work against general trend.
  • Analyze the situation before entering the market. Do not change your opinion under the influence of other people forecasts, when your position is already opened. If your strategy means more or less long-term transactions, you can switch the terminal off after the setting of the positions.
  • Follow important macroeconomic events in the calendar. take into consideration the possibility of sharp movements of price at the moment of news publications.
• Psychology
  • Refuse to trade if you are overexcited (excitement, aspiration, happiness, euphoria or melancholy, irritation, uncertainty and feeling of worry).
  • Make at least 24 hours-rest, if you get large profit or if you lose lots of money;
  • Improve your discipline and normal, stable professional estimation of your possibilities.
• Transactions
  • Do not make a transaction if you do not know when you have to close it with losses and when you have to fix the profit.
  • Install the Stoploss to cut losses, and TakeProfit to fix profit. It is recommended to install TakeProfit at least twice larger than StopLoss.
  • If you know the entering level for sure, then use pending order, and nor market one. Pending order is elaborated more precisely. Fast market speed may take away from desirable point of entering, then it will be difficult to open position using market order.
  • If you do not understand what is "lock" - do not use this method.