Here is an video produced by Adam about currencies trading and how do tools from marketclub help to analyze the trend and time the your entry. Pretty good stuff. Check it out.
GOLD vs Dollar
It is a brand new year. Shrugging off the dust, let’s start the engine again. I would like to have a long term view of currencies pairs and commodities movement before go into details of my trade preparation. Gold caught my eyes. I see something beautiful in the weekly chart. What do you think? Are we heading to a breakout? And if Gold is having a inverse relationship with Dollar. Where do you think Dollar will be heading to? Let’s see.
And here is some short term technical statistics:
And here let’s have a look at weekly Dollar index:
Charts generated by Market Club.
Fundamental wise, Kathy Lien has written a detailed analysis here. Check it out.
US interest rates have fallen 400bp from 4.25 percent to 0.25 percent in 2008. For most people, interest rates at 0.25 percent are as unattractive as zero interest rates. With US rates pretty much at zero, the Federal Reserve has informally adopted its own version of Quantitative Easing. Some people may even argue that the Fed has been pursuing this strategy for months now. In conjunction with the Treasury department, the Fed has doubled their balance sheet in the past 3 months to more than $2 trillion. They have done this by purchasing direct equity investments in banks, easing standards on commercial paper purchases, made efforts to relieve institutions of their toxic asset-backed securities and are now considering buying Treasury bonds and agency debt. By buying these assets, they are adding money into the financial system. Like the Yen, Quantitative Easing exposes the US dollar to significant downside risks because the Federal Reserve is basically printing money and using that money to flood the market with liquidity, eroding the value of the dollar in the process. However it is a step that the central bank needs to take to stabilize the US economy and to prevent a deflationary spiral. The central bank will not be worried about a weak currency and will in fact welcome one because they know that a weaker currency is like an interest rate cut in many ways because it helps to support and stimulate the economy.
Links : Metatrader & MQL4 development
When I first started looking into automated trading system development, particularly in currencies trading, Metatrader is always one of the candidates. The main problem with Metatrader , in my opinion, is without reputable broker. No, not another debate about Forex brokers. When your account grows bigger you will have more concerns over these issues.
Back to ATS, one of the reasons I like Metatrader is that there are full of free resources (craps as well) around the internet. Here are some links that I’ve found over the past weeks during my program development.
- Historical Data Importing by earnforex
- MQL4 tutorials by Coderguru
- Tricks to set up email alert in MT4 by newdigital (in forex-tsd)
- MQL4 documentation by MQL4.com
- OrderSend() magic number mystery by Coderguru
- Hosting multiple Expert Advisors in Metatrader by Coderguru
- Metatrader development course
Enjoy! And Happy New Year. Here is to a prosperous 2009.
Work in progress
My ATS (or should I say semi-ATS) programming work continues. Expert advisor of my Really Dumb Trend Catch system has been running since early this week, well, of course, in demo account. It is doing what it is supposed to do. So, not too bad, I am happy with it. I am working on setting up email alert system now. The basic idea of my semi-automation is to run the system at home, alerts me via email, so I can enter and manage my positions from office. This is essential to me since Metatrader connection is blocked in my work place. At the same time, the system is also taken care by my private full time trader at home — my wife! 😆
Here is the work flow of my semi ATS .
Here is the example of my trading screen now:
On the side note, I have just received my executive office chair. Pretty cool and comfortable. Now, I can trade from home , in the bossy mafia style…:lol:
Bargain to share…
My frequent readers know I am using Market Club tools (trend analysis, data, charts, news, trading videos etc) in my trading, example here and here. I am glad to know that Market Club is now running a 3-day promotion which offers new subscribers 2 free months to see the tools that helps me in my trading. It is certainly worth to check it out.
In addition, INO TV premium is adding dozens of top experts videos. Have a look.
These are good tools, and I am using them, and I am recommending to my readers now.
Some holiday updates
This year’s Christmas/New Year break, we choose to stay in Melbourne, relaxed and “do nothing”. 🙂 No traveling, no vacation.
So, here is to show you what I have done for the past week. I spent some time coding and testing my system. Well, basically, I am not a big fan of back testing , I was just playing around my programming skills, to prove I am still good enough to code some programs 😆 . This is the system I am trading day in and day out, so I know it works, even without the dumb ass back testing. It definitely makes my life a lot easier after program it to generate automated trading signal. Now even my wife can put in the orders for me…:)
So, the name of the system? ‘Really Dumb Trend Catch’ system. Here is an example of EURGBP trade before Christmas.
I’ve also coded an EA (Expert Advisor) in Metatrader. Well, I do not intend to go for automated trading just yet. Just having fun writing some codes. I found programming keeps my brain sharp. I have been doing research and reading about automated trading, particularly in currencies trading area. Probably, I will write up something later on.
Holidays continue……
