FXCM/DailyFX Signals and Strategies

[quote=Jason Rogers;4174337]Hey Sloanman,

I checked several accounts from my side and was able to replicate what you are experiencing on one of them. I'm going to have our technical support check on this. Could you also check your account and let me know which server it is on. You can find the server name down at the bottom of the platform to the left of your username. See image below with example:

http://img219.imageshack.us/img219/4260/demoserver.png

Jason, thanks. MICROREAL03

You knew me when I just started. I'm actually making money now. So thanks for your patience and help way back when. That is...if you are the same Jason as then ha.

[quote=sloanman;4174414] That's great to hear and congrats!!!! It sometimes takes a while to get things on the right track but good to hear you stuck with it.

Same Jason here , and I don't plan on going anywhere. I'll have to add a pic to my profile one of these days!

Michael Wright of DailyFX pointed out the below range developing in GBP/JPY earlier this morning and the range is still holding. This is a 15 minute chart, so there's the possibility of a breakout during the US session. I'm watching stock futures which are down this morning, and if GBP/JPY shows signs of risk aversion, it could break to the downside. Should be an interesting one to watch today:

http://img405.imageshack.us/img405/5...yshortterm.png

For anyone trading EUR/USD, there are rumors of a statement at 17:00 GMT from the Irish government, though maybe people are confusing this with today's regular meeting of finance ministers in Brussels. Seems like news out of the euro-zone is starting to snowball against the Euro. The below statement from the EU's permanent president Herman Van Rompuy hasn't helped the situation:

The horrible truth starts to dawn on Europe's leaders
...“We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union,” he said.
Source: http://blogs.telegraph.co.uk/finance...ropes-leaders/

You'll remember that the last debt crises from bank in June of 2010 resulted in EUR/USD trading down towards 1.19. It may be too early to jump to conclusions on this, for as Businessweek mentioned in this article (no offense to Idaho):

A Mighty Euro Made in Germany
...Greece, Ireland, and Portugal are less consequential because "in GDP terms they're tiny, they're like Idaho. Right now it's the Germanic aspects of the euro area that are driving" the currency, he says. Ireland's gross domestic product accounted for just 1.8 percent of the euro region's $12.6 trillion economy last year. German output, in contrast, amounted to 27 percent.
Source: http://www.businessweek.com/magazine...4017325145.htm

And for a general sense of dollar direction, below is a copy of the USD Index chart. The 80.00 level looks to be next resistance area:

http://img405.imageshack.us/img405/1...ex11162010.png

The Marketscope charts in the FX Trading Station II have over 35 built-in indicators. If there's an indicator you would like to use which is not available from the list, you can either code the indicator yourself in LUA or download the indicator from FxCodeBase. Searching FXCodeBase is the easiest option since there are over a thousand custom indicators on the website. Below is a step by step guide on how to download custom indicators and add them to Marketscope:


Step 1: Download the Indicator from FXCodeBase

FXCodeBase lists the custom indicators in a forum format. I would recommend using the search field to quickly find indicators.

FXCodeBase.COM: Forex Chart Indicators and Development • View forum - Custom Indicatorshttp://img440.imageshack.us/img440/7317/fxcodebase.png

Once you find the indicator you want, download the indicator onto your computer. Save the file somewhere you can easily find it, like Desktop.


Step 2: Add the Custom Indicator Into Marketscope

After you have created a chart, goto the top of the chart and click on Chart > Manage Custom Indicators > Load. Below is an image of what it looks like:

http://img101.imageshack.us/img101/2059/chartupload.png

Find the custom indicator you downloaded onto your computer (i.e. located on your desktop) and add it to the custom indicator menu.


Step 3: Using the Custom Indicator

Now that you've added the custom indicator into Marketscope, you can now find it in the indicators list. Open the indicator menu by clicking on Insert > Add Indicator at the top of Marketscope. In the indicator window, scroll to the bottom and you will see the custom indicator you just added in the "Other" section. See below where I added the Donchian Channel indicator:

http://img574.imageshack.us/img574/8...1162010121.png

Price Improvements: What are they? How they work? and

A price improvement means that your order was filled at a better price than requested (positive slippage). There are 3 times during which price improvements will be most noticeable during trading: weekend gaps, news trading, and scalping. Every order can receive a Price Improvement. This includes market, entry, limit and stop orders. However, FXCM recommends that traders use limit entry orders to open positions and limit orders to close positions because these order types can only receive your requested price or better.

We've put together 3 short videos with examples of price improvements during each of the 3 times I mentioned above.

Weekend Gaps




News Trading




Scalping



* All Price Improvements are contingent upon available liquidity at execution.

Hi Sloanman,

The chart should no longer reflect a daily candle for 11/14. Can you check your chart and confirm if it is fixed on your side.

Thanks,

-Jason

I was actually logging on specifically to tell you that the candle is gone. Thanks for that.

about news trading video , I think the idea there is based on very fast drop ( less than second maybe) , if the price waights a bit and than drop than the order will be executed i think.

And 2.6 pips for Euro/dollar is too much this should be maximum of 2

Good to hear.

Quick update on SSI positioning this morning since we haven't taken a look at it in a while:

http://img208.imageshack.us/img208/8...10103150am.png

Notice that USD/JPY positioning has pulled back considerably from previous weeks extreme long readings as it approached 80. Nothing really jumps out at me except for GBP/JPY which has the largest bias by traders to the downside; however, the trading signals are mixed at the moment with breakout giving a signal to the upside and momentum giving a signal to the downside.


Lastly, if you've been trading the EUR/USD, you've no doubt been aware of the events happening with Ireland. Here's an interesting fact that jumped out at me this morning from a Bloomberg article detailing which countries banks are most at risk if Ireland runs into trouble:

British banks have the world’s biggest “exposure” to Ireland, totaling more than $222 billion at the end of the first quarter, according to the Bank for International Settlements.
Source: http://www.bloomberg.com/news/2010-1...the-banks.html

There are lots of economic reports on the calendar for next Tuesday and Wednesday, before the US Thanksgiving Day holiday. Take a look:

http://img534.imageshack.us/img534/5...cocalendar.png

I will also be out of the office next Tuesday through Friday, so I won't be making any posts during that time.

A nice channel in AUD/USD pointed out by Jamie Saettele a couple of minutes ago. Here's what he had to say on twitter:

amazingly clear pattern. time to step on the gas...res 9910

http://desmond.yfrog.com/Himg97/scal...=640&ysize=640

This Thursday Nov. 25, 2010 is the U.S. Thanksgiving Day holiday. Below are important announcements regarding trading hours and rollover.

Forex
There are NO CHANGES to forex trading hours. Forex trading will continue without interruption until the normal close time of 4:00pm ET on Friday. Even though there are no changes to trading hours, please be aware that there may be less liquidity due to the holiday which could affect market volatility and spreads.


CFD's
Certain CFD products will have modified trading hours due to the holiday. Below is a table and all times are in ET (New York time).

http://img813.imageshack.us/img813/6...10115435am.png

Rollover

Due to bank holidays this week, there will be 4X rollover on Tuesday Nov. 23rd and 0 rollover on Wednesday Nov. 24th. You can find the monthly rollover calendar on DailyFX www.dailyfx.com/frollover. For reference, I have a tutorial for the rollover calendar here http://www.forexfactory.com/showpost...&postcount=566 . Please let me know if you have any questions or if anything is unclear.


Lastly, I will be out of the office starting tomorrow (Tuesday Nov 23rd). Any questions posted after today will be answered on Monday Nov. 29th.

Cheers!

-Jason

Dear jason, My question is in breakout2 strategy , when signal generated than there is three stop loss and three limit order , how can i set it, when i set the first stoploss and first limit order than my trade book the stoploss but in dailyfx plus the trade is going on and all the stop loss and limit order as it is as before what this means for three stop loss and three target if one met than there is no change in daily fx plus signal site . And second question is in dailyfx plus signal there is stop loss shows i set it as it is written but when i see in the next morning the stop loss does not me but trade is off(close trade) due to going in negative, how can i judge when to close trade and when it is very difficult to watch the screen of daily fx plus signal site 24 hours , please suggest me how to use the signals in dailyfx plus signal site.
Thanks

Hi ashaab,

Thanks for your post and these are very good questions.

The DailyFX+ signals will sometimes show multiple stops and limits as you mentioned. If the trading signal is displaying 3 stops and 3 limits, then you should open 3 separate trades in that currency pair and set the corresponding stop and limit to each ticket. The open positions window will only allow you to set 1 stop and limit per ticket, so you should break the order into multiple tickets.


Below is an example using the current EUR/USD Breakout2 signal. Breakout 2 is currently giving a signal to sell EUR/USD with the following stops and limits:

Stop1: 1.3434 Limit1: 1.3016
Stop2: 1.3365 Limit2: 1.2946
Stop3: 1.3298 Limit3: 1.2876
Stop4: 1.3295 Limit4: NONE

Here is how the open positions would look on the FX Trading Station II:

http://img823.imageshack.us/img823/7...201022317p.png

Notice I opened 4 separate tickets of 10k rather than opening 1 ticket of 40k. Separating the position into 4 tickets allows me to create a stop/limit at each level. You may also have noticed that there is no limit listed for the 4th position. The signals can generate a limit order later as the price action changes therefore you should check the signals later for any updates.

This leads me to your second question. The signals can change dependent on price action. So if market conditions change, the strategy can modify orders or even close all the positions at any time. This means you will need to check DailyFX Plus for any updates. I know it may not be easy to do this if you don't have access to the website which is why we plan to give traders access to the signals through Strategy Trader to automate the signals. I don't know exactly when this will happen, but we are working on it!

-Jason

"I know it may not be easy to do this if you don't have access to the website which is why we plan to give traders access to the signals through Strategy Trader to automate the signals. I don't know exactly when this will happen, but we are working on it!"



Was wondering how it's been progressing since you mentioned it a couple months back. Waiting with eagerness to start using this. Traded the signals with some success, but near impossible to do so consistently without gluing my monitor to my head. Breakout2: 61% win rate, with an average of 36 pips, win or lose... across 14 pairs... COUNT ME IN!

Any significant progress that has been published internally milestone wise?

Thanks for being patient! I'm looking forward to adding this to Strategy Trader for testing myself.

Reading over this morning's news articles, you get a sense of a market on edge as the bailout in Ireland causes more and more concern over Portugal, Spain, and Italy. It's even come to the point where Belgium and Denmark are being mentioned as possible targets if worse comes to worse. Take a look at this Marketwatch article from this morning:

Marketwatch: Contagion crisis intensifies; Spain yield soars

The euro zone’s sovereign-debt crisis intensified Tuesday, with yields on Spanish, Italian and other peripheral government bonds soaring in the wake of a weekend meeting of European Union finance ministers that failed to soothe fears of the potential for future defaults....

...“Ireland’s bailout did nothing to ease the euro-zone debt crisis: it might have even made it worse,” said Steven Barrow, currency and fixed-income strategist at Standard Bank. “For now the market sees a pattern emerging and the next piece of the bailout puzzle seems to be Portugal, with Spain to follow after that.”

Source: http://www.marketwatch.com/story/spa...ist=beforebell

Don't forget that Spain is the world's 8th largest economy, so we're not talking about relatively insignificant GDP's anymore. And the next article from "Sudden Debt" at Seeking Alpha has great graphs showing the recent increase in CDS's which gauge default risk.

Seeking Alpha: CDS Barbarians at Europe's Gate

But now things are getting serious: "the market" is attacking Spain, the world's eighth largest economy with a GDP of 1.1 trillion euro ($1.4 trillion). And "the virus" is spreading to Italy, Belgium and even to that paragon of financial probity, the most admired country in the world, Denmark. Yes, Denmark....

Source: http://seekingalpha.com/article/2392...-europe-s-gate

Looking at EUR/USD technical analysis from Jamie Saettele, he says "A 3rd wave decline is likely underway from 13785. The drop below 13350 (former resistance) shifts focus to 12950 (100% extension and former resistance in September) 12590 (former support) and 12430 (161.8%). 13290 and 13350 are resistance levels."

http://media.dailyfx.com/illustratio...ody_eurusd.png
Source: www.dailyfx.com/ftechnicals

Not looking too good for the Euro at the moment...

Today a trader asked me if it is possible to display two indicators in the same window on Marketscope. For example, I want to view RSI and Stochastic in the same window, rather than having a separate panel at the bottom of the chart for each indicator. This will save me valuable chart space.

The short answer is YES, and I've created a brief tutorial below on how to set this up.

The first step is to add the first indicator to the chart as you normally would. In the image below I have added RSI to the chart first.

http://img3.imageshack.us/img3/3284/...10120431pm.png

That was easy enough. Next, you will need to add the Stochastic indicator and this is where you will choose the location where Stochastic will appear. Whenever adding the second indicator, click on the Location tab at the top of the indicator window (see image below). You will need to uncheck the option to "Show indicator/oscillator in a new area below the following areas" and select the previous indicator as the area the new indicator should be displayed. See image below where I selected the RSI window as the new location for the Stochastic indicator being added:

http://img574.imageshack.us/img574/4...2010115557.png

After doing this, you should now have the RSI and Stochastic indicator displayed in the same panel. Here's an example from my chart:

http://img255.imageshack.us/img255/6...lay1130201.png

And that's how you display two indicators in the same panel.