Interesting detailed explanation of fractal divergence guide. Click the link below to view guide: http://iticsoftware.com/forex-indicator-div/forex-divergence.php
Fractal divergence guide
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Secrets of successful Forex Scalping
July 28th, 2010
Here are many supporters and opponents of forex scalping systems. There is no agreement of opinion even among people who use the same forex scalping system. It happens because success of the forex scalping system depends not only on professionalism of developers and the idea, realized in the system, but also on many external factors:
- Choice of broker. Many brokerage offices allow scalping, but can hinder work of the forex scalping system, especially if you deposit is small;
- Choice of the right money management policy. Many traders expect fantastic profits from the forex market and want to get several hundred percent per month. In order to achieve such goals traders often choose lot size, which makes 30% and even 50% from the deposit. In this case even one losing transaction can ruin the system.
- Professionalism of a trader. Many developers point in the system description that you don’t need special knowledge for trade and it’s true, but, at least, you must know settings of the system and metatrader trading terminal. It will help you to avoid stupid mistakes, which could ruin the system.
You should take into account several important factors when developing the trading system for gaining small amounts of profit during short time intervals (scalping trading systems).
The first and, maybe, the main factor is spread. Spread can ruin up to 20-30% of profit of your system. And if you add dealer’s actions, directed at destroying the system, we can suppose with high probability about 70% of loss.
The second important factor is multiple mistakes, which arise in the attempt to open or close market orders. For this reason many trading systems, which show profit at a test on historical data, may be unprofitable and even loss-making during real trade.
So how to develop a system, which will allow to use scalping and to make profit at the same time?
Many scalping systems have limits in time of trade. If you have a look on currency movement diapasons during so-called “quiet market” hours, you will see that currency deviance exceeds spread by several points. You can solve this problem in several ways.
The first way is to trade night and day, choosing currencies, which are currently match the scalping conditions, move in the linear regression channel or are in the flat channel, limited by resistance and support lines, for a long time. Or you can choose moments of low market volatility, when breakout of resistance lines or channel borders is unlikely.
The second way is to set the system a time limit, but at the same time to improve quality (precision) of entry and exit. Improvement of entry quality can be reached by means of formation of linear regression adaptive channels.
If you use a standard built-in linear regression indicator or other linear regression indicators, you will probably notice that arrangement of linear regression lines depends on number of bars, taken for channel formation. It is also easy to notice that you can form many such channels on the chart. So what channel is the most objective one? The most precise channel is the one, mean square deviation of which is minimal and is becoming lesser. There may be several such channels on the chart, and they will describe currency movement corridors more precisely. LR-Channel indicator will automatically detect all linear regression channels on the chart and will choose only those channels, mean square deviation of which is minimal and is becoming lesser.
Such channel will help you to detect entry and exit points more precisely than the standard linear regression channel or the flat channel.
Learn more about our forex scalping systems =>>> _http://iticsoftware.com/scalping-forex.php
BJF Trading group inc.
July 28th, 2010
Here are many supporters and opponents of forex scalping systems. There is no agreement of opinion even among people who use the same forex scalping system. It happens because success of the forex scalping system depends not only on professionalism of developers and the idea, realized in the system, but also on many external factors:
- Choice of broker. Many brokerage offices allow scalping, but can hinder work of the forex scalping system, especially if you deposit is small;
- Choice of the right money management policy. Many traders expect fantastic profits from the forex market and want to get several hundred percent per month. In order to achieve such goals traders often choose lot size, which makes 30% and even 50% from the deposit. In this case even one losing transaction can ruin the system.
- Professionalism of a trader. Many developers point in the system description that you don’t need special knowledge for trade and it’s true, but, at least, you must know settings of the system and metatrader trading terminal. It will help you to avoid stupid mistakes, which could ruin the system.
You should take into account several important factors when developing the trading system for gaining small amounts of profit during short time intervals (scalping trading systems).
The first and, maybe, the main factor is spread. Spread can ruin up to 20-30% of profit of your system. And if you add dealer’s actions, directed at destroying the system, we can suppose with high probability about 70% of loss.
The second important factor is multiple mistakes, which arise in the attempt to open or close market orders. For this reason many trading systems, which show profit at a test on historical data, may be unprofitable and even loss-making during real trade.
So how to develop a system, which will allow to use scalping and to make profit at the same time?
Many scalping systems have limits in time of trade. If you have a look on currency movement diapasons during so-called “quiet market” hours, you will see that currency deviance exceeds spread by several points. You can solve this problem in several ways.
The first way is to trade night and day, choosing currencies, which are currently match the scalping conditions, move in the linear regression channel or are in the flat channel, limited by resistance and support lines, for a long time. Or you can choose moments of low market volatility, when breakout of resistance lines or channel borders is unlikely.
The second way is to set the system a time limit, but at the same time to improve quality (precision) of entry and exit. Improvement of entry quality can be reached by means of formation of linear regression adaptive channels.
If you use a standard built-in linear regression indicator or other linear regression indicators, you will probably notice that arrangement of linear regression lines depends on number of bars, taken for channel formation. It is also easy to notice that you can form many such channels on the chart. So what channel is the most objective one? The most precise channel is the one, mean square deviation of which is minimal and is becoming lesser. There may be several such channels on the chart, and they will describe currency movement corridors more precisely. LR-Channel indicator will automatically detect all linear regression channels on the chart and will choose only those channels, mean square deviation of which is minimal and is becoming lesser.
Such channel will help you to detect entry and exit points more precisely than the standard linear regression channel or the flat channel.
Learn more about our forex scalping systems =>>> _http://iticsoftware.com/scalping-forex.php
BJF Trading group inc.
New mathematic algorithm for fractal divergence determination.
New mathematic algorithm for fractal divergence determination. MACD Divergence, Stochastic Divergence, RVI Divergence, RSI Divergence, Momentum Divergence, BollingerBands Divergence, OBV Divergence Indicators are available.
Disagreement between the indicator and price is called divergence. Divergence helps the forex trader recognize and react appropriately to a change in price action. Almost all divergence metatrader indicators show divergence of oscillator and price. Divergence is usually price movement determined in relationship to an oscillator indicator. We would like to propose divergence indicator based on oscillators: CCI, Momentum, MACD, RVI, Stochastic etc. Divergence indicators can be used as a leading indicators. Our MetaTrader Divergence indicators based on fractal divergence. Learn more about fractal divergence... Attached file.
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All Mechanical Trading Systems (Metatrader Expert Advisors) work in the Metatrader 4 trading terminal, which is free-of-charge.
You can start to work with our Metatrader Expert Advisors on demo first then take it live.
Our Metatrader Expert Advisors are back-tested fully on data from various brokers and additionally tested going live.
If you choose to buy a Metatrader Expert Advisor you receive free 24 hour a day 7 days a week support.
All new versions and updates of Expert Advisors are free of charge. We employ a flexible system of payment included discounts and bonuses.
Visit our website for more information:
Best regards,
BJF Trading Group inc.
For your attention Divergence Indicators Rating (254 users)
1. MACD Divergence and Stochastic Divergence - 45 positive feedback 3 negative feedback
indicators were tested on currencies: eurusd, usdjpy, gbpusd, usdcad, eurcad timeframes: m15, h1
additional indicators: PowerRVI, Trend- MultiTF
2. BollingerBands Divergence - 36 positive feedback 4 negative feedback
indicators were tested on currencies: eurusd, usdjpy, gbpusd, usdcad, eurcad timeframes: m15, h1
additional indicators: PowerRVI
3. Volumes Divergence - 28 positive feedback 0 negative feedback
indicators were tested on currencies: eurusd, usdjpy, gbpusd, usdcad, eurcad timeframes: m15, h1
additional indicators: MetaTrader Indicator OBV Divergence
4. PowerRVI Divergence - 12 positive feedback 0 negative feedback
5. ADX Divergence - 11 positive feedback 1 negative feedback
Review divergence indicators home page =>>> Attached file.
Other products rating (rating was made on the number of purchases, taking into account the negative and positive feedback)
MetaTrader Account Copier "CopyToolPro" Forex Software
Forex Neural MetaTrader Expert Advisor "NeuralScalpingEA"
Forex Scalping Expert Advisor "SC-Market" v1.0
Forex Scalping MetaTrader Expert Advisor LimitsOffensive 1.0"
Forex Scalping Expert Advisor PRO Advisor 5 3.0
Forex Grid MetaTrader Expert Advisor "ELDORADO" V1.3
Forex Scalping Expert Advisor STOMPER Portfolio V1.0
Forex Scalping Expert Advisor FloatingTarget Portfolio
Forex Scalping MetaTrader Expert Advisor FXPredictor
etc.
BJF Trading Group inc.
1. MACD Divergence and Stochastic Divergence - 45 positive feedback 3 negative feedback
indicators were tested on currencies: eurusd, usdjpy, gbpusd, usdcad, eurcad timeframes: m15, h1
additional indicators: PowerRVI, Trend- MultiTF
2. BollingerBands Divergence - 36 positive feedback 4 negative feedback
indicators were tested on currencies: eurusd, usdjpy, gbpusd, usdcad, eurcad timeframes: m15, h1
additional indicators: PowerRVI
3. Volumes Divergence - 28 positive feedback 0 negative feedback
indicators were tested on currencies: eurusd, usdjpy, gbpusd, usdcad, eurcad timeframes: m15, h1
additional indicators: MetaTrader Indicator OBV Divergence
4. PowerRVI Divergence - 12 positive feedback 0 negative feedback
5. ADX Divergence - 11 positive feedback 1 negative feedback
Review divergence indicators home page =>>> Attached file.
Other products rating (rating was made on the number of purchases, taking into account the negative and positive feedback)
MetaTrader Account Copier "CopyToolPro" Forex Software
Forex Neural MetaTrader Expert Advisor "NeuralScalpingEA"
Forex Scalping Expert Advisor "SC-Market" v1.0
Forex Scalping MetaTrader Expert Advisor LimitsOffensive 1.0"
Forex Scalping Expert Advisor PRO Advisor 5 3.0
Forex Grid MetaTrader Expert Advisor "ELDORADO" V1.3
Forex Scalping Expert Advisor STOMPER Portfolio V1.0
Forex Scalping Expert Advisor FloatingTarget Portfolio
Forex Scalping MetaTrader Expert Advisor FXPredictor
etc.
BJF Trading Group inc.
Forex Systems Risk Diversification - Introduction
* Often at creation of new forex trading strategies trades seek the maximum profitability of a forex system. However, sometimes it is more important to reduce possible risk, which is expressed in the maximum permissible drawdown, but not to raise value of expected profit
* A simple, but rather reliable way of estimation of trading strategy efficiency is to identify correlation between profitability and the maximum drawdown of a forex system on the period under investigation – a so-called recovery factor. For example, if profitability of a forex system is 45% per annum and drawdown is 15%, the recovery factor will be equal 3.
* If to compare two forex systems with different values of profitability and drawdown, the trading system with a higher recovery factor will be better. The forex system with 30% per annum and 5% drawdown will be better than the forex system with 100% per annum and 40% drawdown. It is easy to adjust profitability to a necessary size by means of margin lending, but it is impossible to change risk weighting of a ftrading system, because it is the integral feature of a system. Increase of profitability, accordingly, also increases risk.
=>>> [link removed]
* Often at creation of new forex trading strategies trades seek the maximum profitability of a forex system. However, sometimes it is more important to reduce possible risk, which is expressed in the maximum permissible drawdown, but not to raise value of expected profit
* A simple, but rather reliable way of estimation of trading strategy efficiency is to identify correlation between profitability and the maximum drawdown of a forex system on the period under investigation – a so-called recovery factor. For example, if profitability of a forex system is 45% per annum and drawdown is 15%, the recovery factor will be equal 3.
* If to compare two forex systems with different values of profitability and drawdown, the trading system with a higher recovery factor will be better. The forex system with 30% per annum and 5% drawdown will be better than the forex system with 100% per annum and 40% drawdown. It is easy to adjust profitability to a necessary size by means of margin lending, but it is impossible to change risk weighting of a ftrading system, because it is the integral feature of a system. Increase of profitability, accordingly, also increases risk.
=>>> [link removed]
This is exactly why I joined this forum. So many interesting analogies from similar scalping systems is what keeps this game interesting...
Metatrader's EA's were great when they first appeared. I'd say Metatrader is definitely the most solid thing on the market, but it's going to be a part of the past soon. Companies are creating trading programs with EA's that require no coding. The coding is already built into the system, you just have to select what you want.
You can spend your time writing code after code, or you can quite literally test 15 strategies in less than 2 minutes without any coding. Trader's don't have to walk blindly anymore. They can test which Candlestick patterns and trading theories/strategies are bogus.
I'm certainly looking forward to seeing what the next few years of trading technology is going to offer 🙂
You can spend your time writing code after code, or you can quite literally test 15 strategies in less than 2 minutes without any coding. Trader's don't have to walk blindly anymore. They can test which Candlestick patterns and trading theories/strategies are bogus.
I'm certainly looking forward to seeing what the next few years of trading technology is going to offer 🙂
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