WHY TRADING WITH AUTOMATED STRATEGY WORKS ?


Automated forex trading systems use the latest technology to simplify navigation of the forex market. These systems are made up of sophisticated computer software that uses mathematical algorithms to analyze the right times to buy and sell currency. These programs also make the process even easier by conducting the trades for you.

Trusting a machine to make choices when large sums of money are at stake may sound like a bad idea, but automated forex trading can actually work better than trading handled by a human. People frequently make mistakes such as math errors, misreading charts, or simply failing to look at all the factors involved.Another common human complication comes from our susceptibility to emotions. Frequently people allow emotions to get in the way of their better judgment, and this can lead to lost money in the forex market.

Using an automated forex trading system eliminates these problems and improves your results by keeping track of all the available data and making the best decisions. Online trading with a automated strategy can streamline the entire trading process.

Traditional trading methods require an individual to invest large amounts of time in studying the market, and training to make the best decisions. Automated training requires none of this since all the expertise is already written into the program. All that's required is that you know the very basics of the market so you know generally how the automated system is operating.

One possible drawback of automated trading systems is their reliance on technical rather than fundamental analysis. The computer programs are only able to examine the performance of the market and general trends, not outside factors that may influence changes in the forex market. Political and social events that have a real effect on the forex market can not be analyzed by an automated forex trading system. However, this does not negate the positive effects of these systems since they have a proven track record of success.





SIMPLE AMPLIFIED TREND STRATEGY (PART 2)


My aim in this contest is to create and illustrate a library of profitable TREND STRATEGIES with trend indicators (MASTERING THE TREND).This week After so many experiment and testing on dukascopy visual jforex Strategy builder in search of more profitable trend trade strategy ,i was able to compile a well profitable simplified trend strategy built on EMA.

The trend trading ideal are simply:
open buy or sell position on EMA crossover .
T.P 100 and S.L 500(Trading without S.L)
close and cancel trade on EMA cross ( trend reversal)


EMA :

A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as "exponentially weighted moving average".An exponential moving average (EMA) uses an exponentially weighted multiplier to give more weight to recent prices.



CREATING A STRATEGY

DUKASCOPY VISUAL JFOREX


INDICATOR SETTING

1) EMA 5 AND EMA 13
2) TIME FRAME 1HOURT.P 100S.L ( trend reversal)


STEP 1

CREATING START POINT

A) Right click and drag IF BLOCK into the workspace right click on variable,
B) click ON CANDLE, click and drag LAST ASK CANDLE. CANDLE PERIOD into the first culumn on thre IF BLOCK.
C) connect the IF BLOCK to ON CANDLE START POINT





STEP 2


ADDING EMA INDICATORS
(to create EMA crossover signal using 4 EMA BLOCKS)

A) Right click on Repositorium, click on indicators, click on MA , click and drag EMA BLOCK into the workspace.
B) Rename and Reset time period on the first two EMA BLOCK: Time period 5 , OUTPUT VALUES EMA_0_5 and EMA_1_5
C) Rename and Reset time period on the last two EMA BLOCKS: Time period 13, OUTPUT VALUES EMA_0_13 and EMA_1_13.
D) Connect all EMA blocks together and link it to IF BLOCK ( start point)






STEP 3



CREATE EMA CROSSOVER CONDITION

A) Right and drag 3 IF BLOCKS into the work space
B) 1 IF BLOCK : first EMA_0_3, second EMA_1_13.
C) 2 IF BLOCK : second EMA_1_5, second EMA_1_133 IF BLOCK : second EMA_1_5, second EMA_1_13
D) Connect the 3 IF BLOCKS together and link it to EMA BLOCKS.





STEP 4



POSITION VIEW

A) Right click on Repositorium, click and drag 2 POSITION VIEWER into the workspace.
B) Right click on VARIABLES, click on POSITION INFO, click and drag OPEN POSITIONS into the 2 POSITION VIEWER
C) Rename the 2 OUTPUT VALUES as index



STEP 5

OPEN SELL POSITION AT MARKET , CLOSE AND CANCEL POSITION

A) Right click on Repositorium, Click and drag OPEN AT MARKET BLOCK into the workspace.
B) Right click on Repositorium, Click and drag CLOSE AND CANCEL POSITION into the workspace.
C) Setup SELL TRADE COMMAND on OPE AT MARKET BLOCK
D) Right click and drag the POSITION VIEWER OUTPUT ( index) into CLOSE AND CANCEL POSITION BLOCK
E) Connect both BLOCK to the POSITION VIEWER





STEP 6


OPEN BUY POSITION AT MARKET , CLOSE AND CANCEL POSITION

A) Right click on Repositorium, Click and drag OPEN AT MARKET BLOCK into the workspace.
B) Right click on Repositorium, Click and drag CLOSE AND CANCEL POSITION into the workspace.
C) Setup BUY TRADE COMMAND on OPE AT MARKET BLOCK
D) Right click and drag the POSITION VIEWER OUTPUT ( index) into CLOSE AND CANCEL POSITION BLOCK
E) Connect both BLOCK to the POSITION VIEWER




STEP 7


A) COMPILE STRATEGY AND BULD STRATEGY
B) RUN AND TEST STRATEGY
C) SEND THE STRATEGY TO CONTEST



BY Peter Nnamaka Ahaotu
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