by Shawn Cannon
There are a variety of trading platforms available on the market that allow for automated trading. The benefit of automation is that once your set up is intact you can step away and let the trades work out without your intervention.
There are a variety of different autotraders on the market. Allow me to introduce you a couple of them.
Zulutrade – Zulutrade is an autotrading service that allows you to select from a vast majority of signal providers they offer. The signal providers allow you to see their entire performance that is monitored by Zulutrade. Once you have a signal provider selected, your trades will automatically be made based on your signal provider’s recommendations. Don’t just seek out those with the highest success rate. Oh no. If your signal provider is an absolute loser, Zulutrade allows you the opportunity to fade their picks. You can profit off of someone else’s …
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by Shawn Cannon
Someone recently shared me with the following money management strategy. I was proposed that if your system can fit the following criteria, you will be a millionaire in 10 shorts weeks with the initial investment of $1,000.
40% Break Even
40% Winnings Trades
20% Losing Trades
Risk Reward Ratio 1-15
Max Drawdown 10% of Equity
With such a money management system intact, the following would take place with a mere $1,000.
Week 1: $2,000
Week 2: $4,000
Week 3: $8,000
Week 4: $16,000
Week 5: $32,000
Week 6: $64,000
Week 7: $128,000
Week 8: $256,000
Week 9: $512,000
Week 10: $1,024,000
It looks like a pretty sweet system when it’s written out doesn’t it? Sound money management as well. Not a lot of huge risk involved as the risk reward is well in place.
The drawback? It’s not realistic. You would need to trade this multiple times a week to achieve such a result. And why would you end after 10 weeks. Heck, imagine the billions you …
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by Shawn Cannon
October 12 is Columbus Day. As such, a lot of banks and businesses take the day off. However, the Forex market will remain open. This is tempting for those that have a desire to get into the market to trade. However, it would be wise for one to refrain.
Liquidity is incredibly low on US holidays. When the major players are not in the game, price is not susceptible to move in logical patterns as it typically would. The benefit one gains from liquidity is that the market offers a better opportunity to take advantage of price action. With low liquidity, price is more likely to move in an unpredictable range as opposed to a trend.
Pricing as well is completely irregular. With low liquidity it doesn’t take much for price to be pushed around if someone stepped up to the plate and placed a large order. As such technical analysis is more …
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by Shawn Cannon
Believe it or not there is an opportunity in Forex for one to guarantee a successful trade. Â Imagine that. Being able to enter the market and have a 100% assurance that you will come out a winner. The concept is called arbitrage trading. An arbitrage opportunity exists when there are discrepancies in the market between brokers.
Allow me to create an example of an arbitrage.
Broker A has GPB/USD currently exchanging at 1.6388/1.6393, while Broker B has EUR/USD exchanging at 1.1832/1.1837, and Broker C is exchanging EUR/GBP at .7231/.7236.
There is a simple calculation to see if an arbitrage exists.
AAA/BBB * CCC/AAA = CCC/BBB
If for whatever reason this calculation does not equate each other evenly, an arbitrage exists and there is an opportunity to create a risk free profit.
If you were trading a standard lot, you would need to buy 100,000 Euros at 1.1837 while selling 100,000 Euros at .7231. Finally, you’ll …
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by Shawn Cannon
I previously warned you in a prior blog post on how to spot and avoid trading in a ranging market. Well, I know there are enough of you to take no heed to my advice and want to trade in a range market anyways. As such, I will provide my recommendations on what to do if you find yourself trading in a range market.
You will never know when you are in a ranging market until it has already begun. This is imperative to understand if you decide to trade my recommendation. While some of the principles can work in a trending market, you want to be sure you are in a ranging market to ensure profitability.
We’re going to forget all about indicators. To trade in a range, all we want to do is look for areas of support and resistance. To find such areas, simply look at the chart …
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