Guys, I will try to reply to other posts in this thread tomorrow or on Saturday, and will also talk a bit about recent market behaviour examples where a trader with relevant market knowledge could have extracted very nice profits with limited risk.
Great EA, I just need a bit of help 116 replies
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Free Advice - Any EURUSD Trade 4 replies
Disliked{quote} Depends what you call scalping ? If it's in and out just taking a few pips, then of course, this is not something that will work unless a trader knows exactly what he/she is doing. Trading off of a small time frame, 10 seconds is mine, doesn't automatically equal a scalp, and certainly not if the profit target is over 30 pips for a 10-15 pip SL.Ignored
Dislikedhi wp3vv, as promised, just wanted to correct some of the things you spoke about {quote} What do you mean by swap-auction market? Not quite sure what that term stands for. Spread / commission business in FX is not that lucrative for banks anymore, because first, liquidity is bad in general (which impairs the ability of market maker to recycle risk quickly and earn the spread), and the reason why liquidity is bad is are post GFC regulations (Basel III in Europe, Volcker, Dodd-Franck etc.) which are putting rules on capital / reserves adequacy / requirements....Ignored
Disliked{quote} As a trader you can either be a momentum follower by nature or a mean-reverting type of trader. Then you have several "sub-classes" of these, like momentum follower looking for range breakouts / trend continuation, or you might be a momentum follower looking for trend reversals.
.... For example a momentum trend followers are more likely using MAs and some other indicator signalling the momentum (like oscillator cross for example).
More likely you are going to be able to implement those things, as you have a good understanding of macro,...Ignored
DislikedGuys, I will try to reply to other posts in this thread tomorrow or on Saturday, and will also talk a bit about recent market behaviour examples where a trader with relevant market knowledge could have extracted very nice profits with limited risk.Ignored
DislikedRules and regulations have a limited impact on what bank makes the most of their profit - swaps. Still non-regulated. As for the auction process, unfortunately that's a line I can't comment as this is a pubic forum. I apologize to disagree but swaps are the most lucrative business they have, still on 2015. That's a fact. Liquidity bad? Not a chance, . The day liquidity runs thin on the banks I assure you, we'll be in deep trouble. besides, central banks won't let that happen despite the dodd-frank act...
The best tool a retail trade has is market...Ignored
DislikedRules and regulations have a limited impact on what bank makes the most of their profit - swaps. .Ignored
DislikedYou can make trading as much complicated as you desire, You can become a "forex philosopher" theory of dow, market randomness, exhaustion, congestion, fractals etc. hey, you can even write books etc. .....or simpler, understanding market structure and ride along whatever happens, as long as you have your risk in check of course.Ignored
DislikedKatrooo, good to hear you're doing well bud. If you want to start setting records straight around here, you'll need patience of a latter day saint but I salute you giving it a go.Ignored
QuoteDislikedRules and regulations have a limited impact on what bank makes the most of their profit - swaps. Still non-regulated.
QuoteDislikedAs for the auction process, unfortunately that's a line I can't comment as this is a pubic forum. I apologize to disagree but swaps are the most lucrative business they have, still on 2015. That's a fact. Liquidity bad? Not a chance, . The day liquidity runs thin on the banks I assure you, we'll be in deep trouble. besides, central banks won't let that happen despite the dodd-frank act.
QuoteDislikedYou must review your source of information is way-off. Spread, nothing to do with commissions at the interbank trade. Regulations were made with the idea of "too big to fail" Again nothing to do with capital trade. As I said, still non-regulated and traded over the counter.
QuoteDislikedTrading as we know in the retail world, hasn't been the bread and butter for banks. Not in their risk tolerance. Yes they do trade in a minor scale, with a high level of risk- controlled rules. HFT- too risky for a bank besides they don't need it. You're talking about market making as, providing liquidity? Man this is 2015. Long way gone.
QuoteDislikedyes, they do make the market for the spot retail industry, other than that, not anymore to any other market whatsoever.. No prop on banks . Never. None. Trading desks are for swaps my friend , not for retail trading.
QuoteDisliked"Traders" the proper word would be "clerks" must meet strict guidelines concerning risk, they don't trade ala retail mode. That's a fact. I believe Barclays had a trading retail room but that was back in the 80's. They soon realized the risk was beyond their comfort zone. What you're describing above is not a bank my friend, possibly a hedge fund.
QuoteDislikedIf you really have traded futures before, especially on the floor, you should know how they stack contracts in the order book. I mean, you should really know. Supposedly you have knowledge on futures. They do hunt stops. Sometimes reading the tape in your terminal is not enough. This is why I keep my subscription to the squawk box(not to be confused with CNBC program). Banks have runners trading on the floor, were big volume is still traded.. That's a fact. Again, the real flow from bank and yes, some fundies are form swapping currency over the...
QuoteDislikedCorrection FX forwards and Fx options belongs to futures market. Banks have no jurisdiction whatsoever. FX Swaps = banks bread an butter. FX spot = that's the currency traded over the counter.
QuoteDislikedAgain, you're probably describing a hedge fund or prop firm. Traders doing their own thing? Trading their own way?. Even a hedge fund has hefty rules on risk control. Everything on the institutional level is controlled and monitored. Retail trading mode at a bank level is very minimal. Their risk models don't allow for that Do You think a bank is going to dump big cash because a moving average is crossing over or EUR-USD is at a round number?. Sorry but that's too far away from their risk models. Yes they do but not at the extent you think they...
QuoteDislikedI sincerely admire you into trying to "fix" what I have "wrong". I don't see that as a bad thing. Most of the information you have brought is obviously researched, which is a good thing. Unfortunately, some of it is faulty and way off. My post was based on facts. I was not trying to be philosophical or speculate based on faulty information. I brought some relevant information for the benefit of traders in this community which has been bombarded with half-truths and misinformation. You're mixing a lot of non-related stuff. Bonds, equities, spot forwards,...
QuoteDislikedI stand on all the remarks I made on the past post because I have lived through the process of currency exchange for years. I know what is to call at 9:00 PM EST to a runner at TSE swapping Marks for Yens, way before the euro's inception in 99. The runner calling out REAL interbank price with volume traded by price, all over the phone. something now extinct. Trading currency was a lot easier back then.
QuoteDislikedYou feel like giving back to the community as you described in your first post? Give them facts.
QuoteDislikedOne last thing - I saw somewhere you said something about 1 lot can move the price in forex. That's far, far away from real. Possibly in futures on stocks, not in forex. I'll explain.
DislikedCongratulations to Katroo for a wonderful thread. My hats off to you my friend. This discussion is healthy and I would like to add some thoughts with all respect to the OP. The foreign market exchange AKA FOREX. is not a trader's market. Forex is in essence, a swap- auction market where banks are trading currency to acquire inventory and make some gravy off spreads. That includes some big shot hedge funds like UBS , Morgan Stanley etc. Futures market IS a trader's market, despite some big shots dump some serious cash occasionally, to hunt stops....Ignored
Disliked{quote} Now I finally understand what you meant by this my friend. Already terrified about how much of a ridiculous wishy washy BS I have to reply to. Even worse is when the people 100% believe they know and understand but they don't have a clue what they're talking about ....Ignored
Disliked{quote} Deep breaths mate, deep breaths. Even if Ray Dalio opened his own thread here, you'd instantly get one twonk telling him he doesn't know how the financial world works. Another would pop up and say he's a statistical anomaly, while a third would try and sell him some EA they made in their grandma's attic for a couple of mill.Ignored
DislikedAt some point I just thought I would stop contributing as I have already done once in the past, quite frankly there is nothing much more I can gain / learn here, and it is just pure sharing from my side.Ignored
DislikedI got a bit distracted by all the nonsense from one of the posters here. Replying to that kind of things have wasted a Lot of my time and energy as I was replying to those in the evenings, as I work 10+h every day. On top of that my anger management skills got challenged as well which made me sleep very badly (which is a normal thing associated with my health condition), and that in turn made me feel more sick. At some point I just thought I would stop contributing as I have already done once in the past, quite frankly there is nothing much more...Ignored