Time Cell Trading

http://www.theforextrader.net/forex-money-management.php

And another reason to have appropriate money management is that in the beginning, you may make mistakes in your trading. So your losses in the beginning days may be higher than necessary.
That's why money management is important for any trading, including forex trading.

http://www.theforextrader.net/forex-money-management.php

So let’s summarise these two crucial points so far:
1. Money management is important, as it lets you live to tell the tale, and profit well!
2. The performance of a system, in terms of profits, drawdown, or any other parameter you want to measure, depends on both the system itself and the money management rules it uses. A system should suggest a range of acceptible money management method or rules which gives best results, that is, good profits and an acceptable drawdown.

http://www.theforextrader.net/forex-money-management.php

Let’s have a look at a method of money management that’s often used, called the percentage risk method.
Note that this is not the only method of risk management, and some systems do use a different risk method. But it is frequently used, and is good one for you to understand, so that you can then compare risk methods to each other.

Money Management Part 1: Percentage Risk Method

The percentage risk method as a money management method, aims to “risk” the same percentage of your cash float (not the same trade size) per trade. Note that you won’t have the same trade size for each trade necessarily.

This method relies on knowing:
1. The stop loss size of the trade, and
2. The percentage risk (of your unleveraged cash float), that you want to risk per trade.

So this percentage risk method says that there’ll be a certain percentage of your cash float that is at risk per trade. And to know how much is actually “at risk” in a specific trade, you need to know the above two parameters: the stop loss size for that trade, and the percentage risk that you’ve chosen.

As an example, let’s say that you’ve chosen a percentage risk of 2% of your cash float. If your cash float is $5000, this means that you’d want to risk 2% of $5000 per trade, which is $100. So with every trade, the maximum you’d lose (assuming no gapping or slippage) would be $100.

With this chosen percentage, it would take you 50 losses in a row before you’d lose all of your float (50 x 2% = 100%). Assuming that your system is a good one, then 50 losses in a row would be very unlikely.
If your system for example has an 80% win loss ratio, and that the maximum number of losses in a row historically was 7, then getting 50 losses in a row is very unlikely. The chances of this happening in fact is 0.2 to the power of 50, a very small number.

On the other hand, if the risk chosen was 4%, then it would take 25 rather than 50 losing trades in a row to lose the entire float. So as you can see, the number of losing trades required to lose the float decreases as you increase the percentage risk.

So now that we know how much is at risk per trade, how do we calculate our actual position size for a particular trade?
For currency pairs where the USD is the terms currency
Let's firstly take the situation where we're trading a currency pair where the USD is the terms currency, such as EURUSD, GBPUSD, AUDUSD. To work out our trade size (face value), you would need to know the stop loss size of the trade. So:

Assuming:
Cash float is $ 5000 USD
% risk is 2%
Risk per trade is $100 USD (500 x 0.02), and
We’re trading a currency pair where the USD is the terms currency
Face value (of base currency) = risk per trade in $USD / stop loss size in $USD

So for example, if we’re trading the EURUSD, and the stop loss size for that trade was 30 pips, then our stop loss size would be equivalent to 30 pips in USD, because if you make a profit or loss, it is in the terms currency.

Therefore:
Face value (of base currency) = $100 / $0.0030
Face value (of base currency) = 33 333

That is, 33 333 of the base currency, which in this example, is the EUR.
For currency pairs where the USD is not the terms currency
What happens if your float is in say $USD, but the USD is not the terms currency? This occurs when you’re trading the USDCAD, USDCHF, USDJPY for example.

In this case, you’d need to do an extra step, which is to adjust the stop loss size in the terms currency, to its value in $USD. That is:
Stop loss size in $USD pips = Stop loss size in the terms currency (eg CAD, CHF, JPY) in pips / Price of the currency

For example, if you’re trading USDCHF , and the stop loss size was 55 pips, and the currency rate for this pair was 1.2878, then:
Stop loss size in $USD pips= 55 / 1.2878
Stop loss size in $USD pips = 43 USD pips.

You’d then use this number in the formula above to calculate your trade size or face value:

Face value (of base currency) = risk per trade in $USD / stop loss size in $USD

Face value (of base currency) = 100 / 0.0043

Face value (of base currency) = 23 255 USD.

Now, when looking at money management, also take into consideration your maximum number of open positions.

http://www.theforextrader.net/forex-money-management.php

Position Sizing Part 2: Maximum Number Of Open Positions

A final point to consider would be the maximum number of open positions, that is the maximum number of trades that you want to be in at one time.
This is the other factor to decide when managing risk.

If for example, you chose a 2% risk, you may also say chose to be in a maximum of 4 positions at any one time. If all 4 of those positions close out at a loss on the same day, then you would have had an 8% decrease in your cash float that day.
This is a decision that you will have to make for yourself, though many systems will have a guide about this for you. In the beginning, your maximum number of open trades may depend on how well you know the system. You may find yourself starting with fewer trades on at the same time in the beginning, and considering a larger number as you get used to trading the system.

Forex Money Management: Putting It All Together

So putting it all together, all the way from how much float you have to how much profit is made from a trade...
As an example, let’s say that you had a cash float of $10 000 and so your leveraged float is $1 000 000, and you used the fixed % risk model.

For a trade where the stop loss size was 30 (terms currency) pips, and assuming a fixed % risk of say 3% (which is $300) of your cash float , your trade size in this trade would be 300/0.0030 = $100 000 worth of base currency.

If your profit was then 75 pips, then this would be $750 worth of the terms currency (as the face value traded was $100 000).
So there you have it.

An extra tip here for calculating the stop loss size:
Remember that when you’re looking at a chart, that you’re looking at the bid prices (most charts display bid, not offer, prices). Then as you set your stop loss, on many platforms, you have the choice of “stop if bid” or “stop if offered”. So say you were in a short trade, having entered at 1.2880, and your stop loss is at 1.2840. And according to your system rules, all stops are set as “stop is bid”.
When you’re stopped out, you’d be buying when the bid price reaches 1.2740 because you’ve used “stop if bid”. But because you buy at the offer, your actual buy price would be at say 1.2843, due to the spread. Your stop loss is therefore actually 37 pips, not 40 pips. A small point, but one which often causes confusion.

Hi, here you can hang that last template and indiadores using cci and arrows, so that you have the rest?

Greetings

Position Size Calculator

Position size calculator — free Forex tool that lets you to calculate the size of the position in units and lots to accurately manage your risks. It works with all major currency pairs and crosses. It requires the minimum input values, but allows you to tune it finely to your specific needs. All you need to do is to fill the form below and press the "Calculate" button:

http://www.earnforex.com/position-size-calculator


Calculating the amount you can risk is very important if you carefully follow money management strategy. I advise using it every time you manually open a new Forex position. It will take a minute of your time, but it will also save you from losing money you don’t want to lose. Position size calculation is also a first step to the organized Forex trading, which in its turn is definite property of the professional Forex trader.
Importance of the thorough position size calculation is stressed out in many influent Forex books. Sizing a position should be done in line with setting the right stop-loss and take-profit levels. And it’s hard to lose all the account’s money if you manage risk and position size every time you enter the Forex market.
You might also find our pip value calculator useful. It can help you to find the value of the pip for different currency pairs and for the nonstandard account currencies.

Pip Value Calculator

Use this pip value calculator if you want to know a price of a single pip for any Forex traded currency. Use this free Forex tool to calculate and plan your orders when dealing with many or exotic currency pairs. All you need to do is to fill the form below and press the "Calculate" button:

http://www.earnforex.com/pip-value-calculator

Although knowing the actual value of a pip in the U.S. dollars is trivial for such currency pairs as EUR/USD, GBP/USD, it is quite hard to tell the pip value for these currency pairs if your account is denominated in other currencies, or for any other pairs, which have a base currency other than your account is. These currency pairs also require the knowledge of the bid/ask price to convert the pip value to the account currency.
You might also be interested in our position size calculator. It can help you to calculate the optimal size of the position depending on your stop-loss in pips, risk tolerance and account size.

Risk and Reward Forex Calculator

The risk and reward calculator will help you to calculate the position's best targets and their respective reward-to-risk ratios based on the Fibonacci retracements from the local peak and bottom. It's a powerful tool to determine the potential risks before entering any positions.

http://www.earnforex.com/risk-reward-calculator


Attention! It's not recommended to enter a trade if your reward-to-risk ratio is less than 2.

Our position size calculator may also come to use for you as it allows you to calculate the optimal position size depending on the risk you tolerate, the stop-loss level, and the total size of your account.

hi FC,

on the terminal mt4, klik market watch and rigth klik chose symbol and u will find the lite fx index, and klik show

cheers

Oh, sorry, I was at lite forex broker. Now I see at your snapshot,... it's SIG. Have change the broker demo and can choose all here: Commodities, Major Indices, CFD, Lite Forex Index, here it is.

Thank you.
Bon week-end!
FXcube

Hi mrhb30jr


Looks fine!

Thank you!

Could you explain me please, where the red and green arrows are making its signals? It's great, when it doesn't repaint! It's only an .ex4 file, so it's not possible for me to take a look at the mq4-code.

Is it possible to code an extra at all question marks too, say at all CCI(14) 100/200 level tops and bottoms, which the trader could discrete switch on or off?

Kindest regards
FXcube

The USD Index measures the performance of the US Dollar against a basket of currencies: EUR, JPY, GBP, CAD, CHF and SEK. It includes 9 chart types, 1 up to 1,000 periods and a vast range of customizable technical indicators.

http://de.wikipedia.org/wiki/U.S._Dollar_Index

USD Index

Der U.S. Dollar Index (USDX) stellt das Verhältnis von sechs Währungen im Vergleich zum US-Dollar dar, wobei der Euro mit dem Handelsvolumen aus zwölf EU-Ländern berücksichtigt wird. Diese machen einen Anteil von 57,6 Prozent im Index aus. Die weiteren Währungen sind der japanische Yen (13,6 Prozent), das britische Pfund (11,9 Prozent), der kanadische Dollar (9,1 Prozent), die schwedische Krone (4,2 Prozent) sowie der Schweizer Franken (3,6 Prozent).
Anhand des Verlaufs des U.S. Dollar Index lässt sich die Stärke oder Schwäche des US-Dollars ablesen. Ein steigender Index bedeutet eine Aufwertung des US-Dollars gegenüber den Währungen im Währungskorb, ein fallender Index dagegen eine Abwertung.
Zusammenhänge zum CRB-Index, der die Preisentwicklung von 19 Rohstoffen misst, sind erkennbar. Ein fallender U.S. Dollar Index bedeutet tendenziell steigende Rohstoffpreise. Dies gilt insbesondere für die Agrarrohstoffe und den Ölpreis. Selbst der Goldpreis korreliert mit einem fallenden Index. So markierte der U.S. Dollar Index am 17. März 2008 ein Allzeittief und der Goldpreis in US-Dollar am gleichen Tag ein Allzeithoch.
Die Formel für die Berechnung des U.S. Dollar Index ist 50,14348112 multipliziert mit dem Produkt aller Bestandteile im Währungskorb, die zu einer Hochzahl angehoben werden, die ihrer prozentualen Gewichtung gleich ist ((EURUSD ^ - 0,576) * (JPY ^ - 0,136) * (GBP ^ - 0,119) * (CAN ^ - 0,091) * (SEK ^ - 0,042) * (CHF^ - 0,036)). Alle Währungen werden in den Maßeinheiten der Währung pro US-Dollar ausgedrückt.[1]
Vergleichbar mit dem U.S. Dollar Index ist der „Broad Index“ der US-Notenbank (FED). Der Index der FED misst im Vergleich zum U.S. Dollar Index viel akkurater den Wert des US-Dollars, da die Gewichtung der FED die Wettbewerbsfähigkeit US-amerikanischer Güter im Vergleich zu anderen Ländern und Handelspartnern stellt.

http://en.wikipedia.org/wiki/U.S._Dollar_Index

The US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies.
It is a weighted geometric mean of the dollar's value compared only with

 

1. Euro (EUR), 57.6% weight
2. Japanese yen (JPY), 13.6% weight
3. Pound sterling (GBP), 11.9% weight
4. Canadian dollar (CAD), 9.1% weight
5. Swedish krona (SEK), 4.2% weight and
6. Swiss franc (CHF) 3.6% weight.

USDX started in March 1973, soon after the dismantling of the Bretton Woods system. At its start, the value of the US Dollar Index was 100.000. It has since traded as high as the mid-160s and as low as 70.698 on March 16, 2008, the lowest since its inception in 1973.
The makeup of the "basket" has been altered only once, when several European currencies were subsumed by the Euro at the start of 1999.
USDX is updated whenever US Dollar markets are open, which is from Sunday evening New York time (early Monday morning Asia time) for 24 hours a day to late Friday afternoon New York time.
USDX can be traded as a futures contract on the IntercontinentalExchange (ICE). It is also available in exchange traded funds (ETFs), options and mutual funds.

What is the U.S. Dollar Index?

If you’ve traded stocks, you’re familiar with all the indices available such as the Dow Jones Industrial Average (DJIA), NASDAQ Composite Index, Russell 2000, S&P 500, Wilshire 5000, and the Nimbus 2001. Oh wait, the last one is actually Harry Potter’s broomstick.
Well if U.S. stocks have an index, the U.S. dollar can’t be outdone. For currency traders like us, we have the U.S. Dollar Index (USDX).
The U.S. Dollar Index consists of a geometric weighted average of a basket of foreign currencies against the dollar.
Come again?! Okay before you fall asleep on us after that super geeky definition, let’s break it down.
It’s very similar to how the stock indices work in that it provides a general indication of the value of a basket of securities. Of course, the “securities” we’re talking about here are other major world currencies.

The Basket

The U.S. Dollar Index consists of six foreign currencies. They are the:

 

1. Euro (EUR)
2. Yen (JPY)
3. Cable (GBP)
4. Loonie (CAD)
5. Kronas (SEK)
6. Francs (CHF)

Here’s a trick question. If the index is made up of 6 currencies, how many countries are included?
If you answered “6”, you’re wrong. If you answered “21”, you’re a genius.
There are 21 countries total, because there are 16 members of the European Union that have adopted the euro as their sole currency, plus the other five countries (Japan, Great Britain, Canada, Sweden, and Switzerland) and their accompanying currencies.
It’s obvious that 21 countries make up a small portion of the world but many other currencies follow the U.S. Dollar index very closely. This makes the USDX a pretty good tool for measuring the U.S. dollar’s global strength.

see more at:
http://www.babypips.com/school/what_...lar_index.html

Forex Training Class Lessons in College: U.S. Dollar Index

 

1. What is the U.S. Dollar Index?
2. The USDX Components
3. How to Read the U.S. Dollar Index
4. Trade-Weighted U.S. Dollar Index

The USDX Components

Now that we know what the basket of currencies are, let’s get back to that “geometric weighted average” part. Because not every country is the same size, it’s only fair that each is given appropriate weights when calculating the U.S. Dollar Index. Check out the current weights:

http://www.babypips.com/school/image...ex-weights.gif

As you can see, with its 12 countries, euros make up a big chunk of the U.S. Dollar Index. The other five make up less than 43 percent.

Here's something interesting: When the euro falls, which way does the U.S Dollar Index move?
The euro makes up such a huge portion of the U.S. Dollar Index, they might as well call this index the "Anti-Euro Index". Because the USDX is so heavily influenced by the euro, people have looked for a more "balanced" dollar index. More on that later though. First, let's go to the charts!

see more at:
http://www.babypips.com/school/the_usdx_components.html


Forex Training Class Lessons in College: U.S. Dollar Index

 

1. What is the U.S. Dollar Index?
2. The USDX Components
3. How to Read the U.S. Dollar Index
4. Trade-Weighted U.S. Dollar Index

How to Read the U.S. Dollar Index

Here’s a chart of the U.S. Dollar at the Dollar Index:

http://www.babypips.com/school/images/usdx.gif

First, notice that the index is calculated 24 hours a day, seven days a week. The USDX measures the dollar’s general value relative to a base of 100.000. Huh?!
Okay. For example, the current reading says 86.212. This means that the dollar has fallen 13.788% since the start of the index. (86.212 - 100.000).
If the reading was 120.650, it means the dollar’s value has risen 20.650% since the start of the index. (120.650 – 100.00)

The start of the index is March 1973. This is when the world’s biggest nations met in Washington D.C. and all agreed to allow their currencies to float freely against each. The start of the index is also known as the “base period”.
The U.S. Dollar Index Formula

This is strictly for the grown and geeky. Here is the formula to calculating USDX:

USDX = 50.14348112 × EURUSD^(-0.576) × USDJPY^(0.136) × GBPUSD^(-0.119) × USDCAD^(0.091) × USDSEK^(0.042) × USDCHF^(0.036)

see more at:
http://www.babypips.com/school/how_t...llar_inde.html

Forex Training Class Lessons in College: U.S. Dollar Index

 

1. What is the U.S. Dollar Index?
2. The USDX Components
3. How to Read the U.S. Dollar Index
4. Trade-Weighted U.S. Dollar Index

mrhb30jr Hello, can you send me the last template that has created together with its complementary indicators? I mean to you emailed to Forex Cube. Sorry for my English. A greeting.

GBPLFX, H1, 2010 September 12

Take the risk over and Enter Long at 2.678 with 3 positions.

Set pending order Enter Long at 2.6725 with 2 positions.

NZDLFX. Daily, 2010 September 12

Trade the Range at Daily Chart between 1.24/1.23 - 1.29