Market mechanics | Page 6 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Question: Trade Mechanics of Triangular Arbitrage 6 replies

Managing Money - Fee structure and mechanics 17 replies

Do you understand Forex mechanics? 4 replies

Forex Market Mechanics 19 replies

Attachments: Market mechanics
Exit Attachments

Market mechanics

  • #101
  • Edited 3:10am Jan 23, 2019 2:44am | Edited 3:10am
Quoting alphaomega
You have a lot to learn my friend. But don't worry. Have patience!
@alphaomega -- no harm done, I have a sense of humor (I would hope). Unfortunately, time I have, but not patience...

BTW, you do realize you didn't provide anything even close to evidence -- you simply waved your hands and assumed everyone would follow. And even though I sort of tried to engage you to see if there was anything more to go on besides evil Swiss bankers and "magic", you instead call me a fool. Sort of follows the pattern of most conspiracists -- i.e. hand-waving followed by insults. Oh well - I tried...

Actually -- I would like to try once more. Forget about the part of who controls what. I'm more curious to learn why that even matters to retail traders who are simply following price. As an individual trader I'll make decisions based on how the price moves -- maybe I'll go with the crowd or maybe I'll go against the crowd. Why do I care what goes on behind the scenes and / or who makes prices go up and down? I mean -- setting aside moral issues -- how would that affect my (or my EAs) trading decisions?

Isn't it sort of like driving? I don't understand how a car works and I certainly don't trust the automakers, but I'll still drive my car every day.
  • #102
  • Jan 23, 2019 3:21am Jan 23, 2019 3:21am
Quoting robots4me
@alphaomega -- no harm done, I have a sense of humor (I would hope). Time I have, but not patience... BTW, you do realize you didn't provide anything even close to evidence -- you simply waved your hands and assumed everyone would follow. And even though I sort of tried to engage you to see if there was anything more to go on besides evil Swiss bankers and "magic", you instead call me a fool. Sort of follows the pattern of most conspiracists -- i.e. hand-waving followed by insults. Oh well - I tried...
You are a smart dude... how would you even attempt to explain in this form of communication medium, the extremely complex dynamics of an ever-changing hybrid, homogeneous environment across 28 pairs with unlimited influencing market factors at each and every pip of price movement? 10+ yrs of Experience watching a basket of currencies is simply NOT enough as the naked eye can only see so little and the brain can only decipher/track moves to a certain extent. Rapid moves at session open/close/news release etc will toss all your research and models over and over until you come to some very foundational model to build the blocks. The volume of data and variables is overwhelming complex! You will need extremely advanced computing power with big data coupled with deep learning capabilities imo to even begin the understand this interior mathematical dynamics of this fabulous and never ending "fiat game". This is no conspiracy theory but tremendous amount of research and in-depth analysis just to come above the surface before you are forced to drown again and again back into your analytical and recursive framework. I am 100% confident, this model will be broken one day with advanced computing (if not already to a certain extent) and recent developments in AI. It is just a matter of time for manipulative algorithms to beat the price manipulations done by these big banks. Decentralized model of currency markets will seize to exist whenever that happens imo and global centralized regulatory board will come to rescue (in some form of bailout) to preserve the reserve currencies of sovereign nations. I strongly believe, there is a way to break this model (or whatever hidden formula there is towards a win-win algo) and the folks who designed the fiat currency model (and the smart/dumb/clueless/disadvantaged countries who opted to peg their country currencies) know this and designed an unbreakable network of market structure to rinse profits from one entity and give it to another entity by design to avoid anyone to win more in any form of consistency. There are global business economic growth and bust cycles for a reason and when it gets out of hand, a crisis a deliberately created to shake out the stronger hand and to allow rebalance of power (back to the USD....by design). I am no economist or fundamentalist but appears to be a strong connection with 100% of world financial transaction volume going thru the currency markets.
Price Trapping Algorithms will NEVER work for long! I have proven this fact and that was the end of this nasty journey for me!
Staying in my lane...
  • #103
  • Jan 23, 2019 3:27am Jan 23, 2019 3:27am
Quoting VEEFX
{quote} You are a smart dude... how would you even attempt to explain in this form of communication medium, the extremely complex dynamics of an ever-changing hybrid, homogeneous environment across 28 pairs with unlimited influencing market factors at each and every pip of price movement? 10+ yrs of Experience watching a basket of currencies is simply NOT enough as the naked eye can only see so little and the brain can only decipher/track moves to a certain extent. Rapid moves at session open/close/news release etc will toss all your research and...
and if you have read my posts on this topic, I am implementing my "brute force" algo using the same principles in the regulated Futures market.... with just one position open at a time (yes, just one!). Once it is implemented, I will post a video of it to show how price trapping works.
Staying in my lane...
  • #104
  • Jan 23, 2019 3:37am Jan 23, 2019 3:37am
Quoting robots4me
{quote} @alphaomega -- no harm done, I have a sense of humor (I would hope). Unfortunately, time I have, but not patience... BTW, you do realize you didn't provide anything even close to evidence -- you simply waved your hands and assumed everyone would follow. And even though I sort of tried to engage you to see if there was anything more to go on besides evil Swiss bankers and "magic", you instead call me a fool. Sort of follows the pattern of most conspiracists -- i.e. hand-waving followed by insults. Oh well - I tried... Actually -- I would...
You have my apologies in case you feel "insulted".
I have no desire to engage in pointless debates and honestly I really don't care if you anyone else pays attention to what I have to say.
I know what I know, and 99% of people will not listen anyway.
There is no fake imaginary "conspiracy" here. Only real conspiracy with real facts.

Fact 1. The FX market is almost completely controlled by HFT Market Making algos owned by the largest banks! Not by the traders.
Fact 2. The market makers control over 80% of the orders supply. They control the SELL side!
Fact 3. The central banks control 100% the money supply and the interest rates. And we all know they create money out of thin air.
Fact 4. The Bank for International Settlements in Basel Switzerland controls the central banks!

If you are too lazy to check the facts and to do your own research - that's not my problem!
  • #105
  • Jan 23, 2019 4:12am Jan 23, 2019 4:12am
Quoting VEEFX
how would you even attempt to explain in this form of communication medium, the extremely complex dynamics of an ever-changing hybrid, homogeneous environment
Quoting alphaomega
There is no fake imaginary "conspiracy" here. Only real conspiracy with real facts.
@VEEFX and @alphaomega -- thanks for your responses. Okay -- let's say I agree that it is extremely complex and / or there is a real conspiracy. I'm not so interested in that part and it was my mistake (and ego) that initially took me down the path of questioning your perspective -- I apologize.

What I am really more interested in is -- so, how will all this affect my trading decisions tomorrow? Or, are you saying, just sleep-in and don't bother? My point is that often times "understanding" why things are they way they are is the booby prize. Do you understand how a car works and do you trust automakers -- does that prevent you from driving? Do you understand women -- does that prevent you from entering or staying in a relationship?

Everything in life (and that includes Forex) has it's trade-offs -- everything. For every negative point there is a positive point -- you just need to adjust your perspective to see the other side. That doesn't mean you have to like the other perspective -- only that it is important to acknowledge it exists.

If there weren't the current financial infrastructure in place then I don't know what would take it's place and there certainly wouldn't be any Forex the way we know it. @VEEFX claims to understand how things work and his goal is to figure out a way to take advantage of it -- that's really noble and admirable. That's what humans should do. @alphaomega -- I read your posts about evil conspiracies -- but you then stop there. Regarding fact checking -- well, not only am I lazy I also don't care (sorry...). What I do care about is learning about things that will *directly* affect my trading *tomorrow*. Conspiracies -- though they may exist -- are way to abstract for me. I don't know what to do with them. And if I don't know what to do with something then I try not to worry too much about it. Unfortunately I often fail to follow my own advice.
  • #106
  • Jan 23, 2019 4:40am Jan 23, 2019 4:40am
Quoting robots4me
{quote} {quote} @VEEFX and @alphaomega -- thanks for your responses. Okay -- let's say I agree that it is extremely complex and / or there is a real conspiracy. I'm not so interested in that part and it was my mistake (and ego) that initially took me down the path of questioning your perspective -- I apologize. What I am really more interested in is -- so, how will all this affect my trading decisions tomorrow? Or, are you saying, just sleep-in and don't bother? My point is that often times "understanding" why things are they way they are is the...
Just to clarify my POV in no uncertain terms.... I am not a subscriber of any Conspiracy Theory. I am only expressing my observations and experience based on my own findings. No one has come and whispered in my ears to quit SpotFX or SpotFX is unbeatable or manipulated. Purely based on my own data driven research. Can anyone make money in Spot? absolutely! If you are profitable, stay off the forums and continue what you are doing... would be my humble advice. If you are not, then it is about time you stop wasting your valuable time and look elsewhere... which is the path I have personally chosen. Not as a acceptance of self-defeat or failure but as a decision point in my life tuning 50+ and sacrificing my 20+ hours every day towards this endeavor. I did not see any ROI in continuing my effort plus my wife and kids were ready to throw me out the door thinking I have gone crazy staring at spreadsheets and piles of charts all across my office room and door shut for most of the days/weeks/months for 2.5 yrs since I learnt how to code in MQL.... worst decision of my life to get into coding. Now, I just cannot stop seeing anything else but black and white when it comes to trading. Even if I have a successful trade and I cannot quantify it, I question the validity of the trade and end up considering myself to be just lucky if I cannot come up with substantial evidence to prove the continuation of the setup. Worst decision ever and this is coming from a professional software engineering background for over 3 decades. I have no choice but to leave manual trading and go algorithmic. Damage is already done lol
Staying in my lane...
  • #107
  • Jan 23, 2019 5:30am Jan 23, 2019 5:30am
Let's just look.
GBP intensify.
CHF weakened.
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-23_gbp_pump.png Size: 155 KB

Because of this:
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-23_gbpchf1.png Size: 140 KB
  • #108
  • Jan 23, 2019 5:46am Jan 23, 2019 5:46am
Quoting mlaci65
Let's just look. GBP intensify. CHF weakened.{image} Because of this:{image}
Fun fact, if you open up a chart of a pair where both currencies are equally strengthening/weakening than you will see nothing but consolidation whipsaw.
The truth is hidden from you
  • #109
  • Jan 23, 2019 6:20am Jan 23, 2019 6:20am
Quoting MaxenshteinD
{quote} Fun fact, if you open up a chart of a pair where both currencies are equally strengthening/weakening than you will see nothing but consolidation whipsaw.
The second fun fact you can't make money on that since arbitrageurs closed the inefficiency already. I see no point checking cross-covariances because basically you get same information about the market state.
  • #110
  • Jan 23, 2019 6:55am Jan 23, 2019 6:55am
Trading closed.Because on the 1p board CHF became neutral.
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-23_gbpchf_end1.png Size: 149 KB

From the table gbpjpy long,eurgbp short!
  • #111
  • Jan 23, 2019 8:41am Jan 23, 2019 8:41am
If it was already there
gbpjpy long
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-23_gbpjpy_long.png Size: 146 KB
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-23_gbpjpy_long3.png Size: 152 KB
  • #112
  • Jan 23, 2019 9:31pm Jan 23, 2019 9:31pm
  •  WSoar
  • | Joined Jun 2018 | Status: It's a businessNot "Get rich quick" | 56 Posts
Quoting dispersion
{quote} The second fun fact you can't make money on that since arbitrageurs closed the inefficiency already. I see no point checking cross-covariances because basically you get same information about the market state.
The third fun fact-people like mlaci65 think their indicators can predict something.
==
  • #113
  • Jan 24, 2019 12:44am Jan 24, 2019 12:44am
He predicted this today
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-24_euraud.png Size: 140 KB
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-24_euraudend81pip.png Size: 148 KB
  • #114
  • Jan 25, 2019 7:17am Jan 25, 2019 7:17am
Hi everyone!

I made a video with my son to make some things clear about my system.
It's short and maybe we missed some points, but if needed we will make another one.

Inserted Video
  • #115
  • Jan 25, 2019 8:37am Jan 25, 2019 8:37am
That's what happens if you blog, don't watch the market and get into a position later than optimal.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_long.PNG Size: 197 KB
  • #116
  • Jan 25, 2019 9:40am Jan 25, 2019 9:40am
I
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-25_eurchf_long.png Size: 179 KB
t could have been
  • #117
  • Jan 25, 2019 9:46am Jan 25, 2019 9:46am
it could have been
Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-25_eurjpy_long.png Size: 184 KB
  • #118
  • Jan 25, 2019 10:18am Jan 25, 2019 10:18am
[quote = WSoar; 11919496] {quote} A harmadik szórakoztató tény, az emberek, mint a mlaci65, azt hiszik, hogy a mutatók valamit megjósolhatnak.

The second fun fact you can't make money on that since arbitrageurs closed the inefficiency already. I see no point checking cross-covariances because basically you get same information about the market state.
END bla bla bla

Attached Image (click to enlarge)
Click to Enlarge Name: 2019-01-25_eur_mind.png Size: 182 KB
  • #119
  • Jan 25, 2019 11:05am Jan 25, 2019 11:05am
Quoting WSoar
Hello and happy new year everyone. Newbie trying to learn so bear with me. I have questions, would like to hear your opinions. So first question: Books and trading websites say that currency pair charts go up/down because: 1.There is more buyers/sellers 2.One of the currency appreciate/depreciate. They also tell us that if currency pair doesn't move much in any direction (stays flat/range) it means that both currencies in that pair is equally strong/weak. So... Here is a thing Let's look for example at Gbp/Usd during the London session(only London...
You are basically right in describing what causes the price to tick either up or down, but unless you are trading tick for tick like a market maker trying to profit from the spread (have people market order into your limit orders), you need to zoom out and look at the bigger picture of price as a whole.
  • #120
  • Jan 25, 2019 12:46pm Jan 25, 2019 12:46pm
Hi
My opinion predict market is very hard with naked eye .
I think with right strategy we can see how market is repeated it self. You can call it scenarios and these scenarios we can trade
Very good example of how to trade is Porodox system .
Green pips to all!
0 traders viewing now