Low-frequency trading: Find out about trading advantages at Forex.ee
In view of active proliferation of algo-trading and the desire of traders to make large profits in short periods of time, we have not been hearing a lot about low-frequency trading lately. With this regard, we decided to do justice and draw your attention to this specific trading approach and to the advantageous trading conditions for low-frequency trading at Forex.ee.
Low-frequency trading (LFT) assumes low intensity of trading operations. The basic postulate of LFT is that profit volumes should come from the quality of trades, not their quantity. There are many factors that affect the quality of open positions – let’s define the main ones!
What needs to be taken into consideration when applying LFT:
• The size of deposit should be determined by the longitute of opened positions. For instance, when placing orders that are meant to be open during one month or longer, the deposit size should exceed $100,000;
• The ability to predict the market direction and to locate the entering points;
• The volume of open trades solely depends on the applied risk-management practices;
• The selection of trading instruments (please pay attention to the spread and degree of volatility);
• The choice of trading strategy: long-term, mid-term or short-term.
In our opinion, applying LFT in short-term trades is not always justified. If you are willing to open just one position per day, its volume will need to be big in order for you to make a significant profit, while the deposit would be placed at risk. In case of LFT, the best option would be to open mid-term (up to one week) or long-term (up to a year) positions. This makes the market more predictible and allows generating profit and keeping risks at a reasonable level at the same time.
The benefits of using LFT:
• Increasing the profit/risk ratio;
• Greater predictability of the market direction in comparison with smaller timeframes (as in case of HFT);
• Lower exposure to daily market volatility, as stop-loss levels are usually placed at a distance;
• You are able to free-up plenty of time by not monitoring your positions as frequently;
• Psychological comfort due to lower level of stress related to intraday market shifts;
In view of the specifics outlined above, there are certain trading conditions that need to be provided by the broker for successful LFT.
Advantageous trading conditions offered by Forex.ee for LFT:
• Low SWAP rates;
• Narrow spreads and low commissions. Forex.ee is among top-five ECN/DMA brokers with the tightest spreads and commissions in the Forex industry;
• There are no time restrictions for closing and modifying open positions;
• Hedging/locking allowed;
• A wide range of trading instruments;
• Analytics: Daily and Weekly FX market overview, Economic Calendar;
• Ultra-fast order execution at the best available market price (Market Execution);
• No requotes or interventions;
• Licenses:VVT000334, FFA000133
Whichever timeframe you choose, LFT at Forex.ee will be the safest and the most winning of all offers for every trader regardless of experience level or deposit size.
Looking forward to cooperation!
In view of active proliferation of algo-trading and the desire of traders to make large profits in short periods of time, we have not been hearing a lot about low-frequency trading lately. With this regard, we decided to do justice and draw your attention to this specific trading approach and to the advantageous trading conditions for low-frequency trading at Forex.ee.
Low-frequency trading (LFT) assumes low intensity of trading operations. The basic postulate of LFT is that profit volumes should come from the quality of trades, not their quantity. There are many factors that affect the quality of open positions – let’s define the main ones!
What needs to be taken into consideration when applying LFT:
• The size of deposit should be determined by the longitute of opened positions. For instance, when placing orders that are meant to be open during one month or longer, the deposit size should exceed $100,000;
• The ability to predict the market direction and to locate the entering points;
• The volume of open trades solely depends on the applied risk-management practices;
• The selection of trading instruments (please pay attention to the spread and degree of volatility);
• The choice of trading strategy: long-term, mid-term or short-term.
In our opinion, applying LFT in short-term trades is not always justified. If you are willing to open just one position per day, its volume will need to be big in order for you to make a significant profit, while the deposit would be placed at risk. In case of LFT, the best option would be to open mid-term (up to one week) or long-term (up to a year) positions. This makes the market more predictible and allows generating profit and keeping risks at a reasonable level at the same time.
The benefits of using LFT:
• Increasing the profit/risk ratio;
• Greater predictability of the market direction in comparison with smaller timeframes (as in case of HFT);
• Lower exposure to daily market volatility, as stop-loss levels are usually placed at a distance;
• You are able to free-up plenty of time by not monitoring your positions as frequently;
• Psychological comfort due to lower level of stress related to intraday market shifts;
In view of the specifics outlined above, there are certain trading conditions that need to be provided by the broker for successful LFT.
Advantageous trading conditions offered by Forex.ee for LFT:
• Low SWAP rates;
• Narrow spreads and low commissions. Forex.ee is among top-five ECN/DMA brokers with the tightest spreads and commissions in the Forex industry;
• There are no time restrictions for closing and modifying open positions;
• Hedging/locking allowed;
• A wide range of trading instruments;
• Analytics: Daily and Weekly FX market overview, Economic Calendar;
• Ultra-fast order execution at the best available market price (Market Execution);
• No requotes or interventions;
• Licenses:VVT000334, FFA000133
Whichever timeframe you choose, LFT at Forex.ee will be the safest and the most winning of all offers for every trader regardless of experience level or deposit size.
Looking forward to cooperation!