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One of the main techniques for having a winning strategy is to find patterns in the past that are a huge probability to repeat in the future. So, there are lots of patterns but among the best known standards are the BULLISH ENGULFING CANDLE and the BEARISH ENGULFING CANDLE. In this article a practical approach is proposed in an automated jforex strategy using these two well-known patterns with a detailed explanation about the strategy code and the related results.
Following again my previous article in April, I chose 2 more patterns to present the code in JForex and study to what extent these patterns are profitable or not in forex. The chosen patterns were as follows:
BULLISH ENGULFING CANDLE: This pattern is characterised by a large white body engulfing a preceding smaller black body, which appears during a downtrend. The white body does not necessarily engulf the shadows of the black body candle, but totally engulfs the body itself. This is an important bottom reversal signal. Bullish engulfing candles indicate immense buying interest that swallows the range of the prior candlestick low and surpasses the candlestick highs. …
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RahmanSL avatar
RahmanSL 7 Oct.

Another follow-up educational article. Well done!

fx_lmcap avatar
fx_lmcap 12 Oct.

A estratégia apresenta um excelente rácio entre o número de posições com ganhos e o número de posições com perdas. O incremento de 30% na equity num período de sensivelmente 3 meses faz desta uma estratégia a reter.

antoniogreenblue avatar

Well done. I like trading with patterns. have you tried other indicators (eg. SMA) for the main trend?

md1fk1 avatar
md1fk1 21 Oct.

Linnuxfx, I think, it is well done. But seems not useful for others as screen(code) itself not readable even if highlighted. Can not you upload it in contest and give the reference in article? So that we can test it ourselves. thank you.

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Some instruments have daily variations quite limited, and in some cases small or very small variations. The purpose of this article is to present a strategy for using the indicator Bollinger Bands and making some Martingle, taking advance in the limited variations of EURCHF.
The selected pair for the implementation of this strategy fluctuation between maximum and minimum was the EURCHF. The EUR/CHF currency cross (Euro/Swiss Franc) is the relation of the Euro against the Swiss Franc. This instrument is characterized by having very small variations in the day (which does not apply this strategy), or for similar variations in the length of the bars.
The volatility of the pair is also in favor of implementing a strategy of this kind, because the changes are not too large. Thus, is possible the application of Martingle technique. The technique of Martingale [1] is in the event that is applied when an order is faced a negative result. In this case the following order must have a larger amount to cover the previous loss and get profit. If the second order fails again we came back to make a new order and so on. One of the problems of this technique is that it is not possible m[/1]…
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LinnuxFX avatar
LinnuxFX 15 Sep.

Thanks for your comments, next month I will disclose the code for automate trading this strategy.!!

fx_lmcap avatar
fx_lmcap 15 Sep.

Nice strategy!

Milian avatar
Milian 21 Sep.

nice job!

TInna avatar
TInna 22 Sep.


scramble avatar
scramble 25 Sep.

looking forward to see some test results soon :) quite interesting setup!

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1.Forex is Not a Get Rich Quick Opportunity

Today My Article Is About Forex Mistakes Which I Do Not Know When I Was Start Forex Trading But You Will Know About It Before Starting Forex.
Everyone comes to the Forex market for a reason, ranging between solely for entertainment to becoming a professional trader. I started out aspiring to be a full-time, self sufficient Forex trader. I had been taught the Perfect' strategy. I spent months testing it and backtests showed how I could make $15,000-$25,000 a year off of a $5,000 account. My plan was to let my account compound until I was so well off, I wouldn't have to work again in my life. I was dedicated and I committed myself to the plan 100%.Sparing you the details, my plan failed. It turns out that trading 105K lots on a $5,000 account is not very forgiving. I lost 23% of my account in 3 weeks. I didn't know what hit me. Something was wrong. Luckily, I stopped trading at that point Then I spent the next couple of years working with traders around the world and continued to educate myself about the Forex market. It played a huge role in my development to be the trader I am today. 3 years of profitable trading later, it's been my plea
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VictoriaVika avatar

Good luck with article, its nice :)

anna_n avatar
anna_n 9 Dec.

nice job!

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What is a fools game? - Trying to Catch A Falling Knife. Knife cuts people and that is where this phrase came about in Forex trading. It is the act of trying to predict where the price of a currency pair will stop falling. Understandably, every trader wants to feel like a superior trader that can predict or think ahead of the market by anticipating price direction and of course catch market bottom or top. However, good and brilliant that may sound and most importantly the feeling of being ahead of others with trade profits for catching market price top/bottom, yet experience has shown that there are very few forex trading situations where prices fall and immediately reverse. Rather, prices fall further and faster than anyone could predict.
I am compelled to write on this subject because the preceding week between Monday the 31st of August 2015 to Friday the 4th of September 2014, we witnessed loses felt in the market even by experienced traders on the Traders Contest. Thorough assessment shows that many fell victim trying to catch a falling knife situation.
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WallStreet6 avatar

Very interesting article! Every trader's dilema whether the trend is over or not. How many times I tried to catch a turnaround in short term consolidation. And another concern after a solid movement should I enter the market and ride the trend or is it too late already. Important aspects- Great Job!

KATRIN_90 avatar
KATRIN_90 16 Sep.

nice job:)

DEMO2TZeHs avatar
DEMO2TZeHs 16 Sep.

great article

Airmike avatar
Airmike 21 Sep.

nice article

Koryphaeen avatar
Koryphaeen 24 Sep.

I really liked your idea, it is very characteristic to newbies and greenhorns to trading. That is why newbies are required to do trading on a demo account first, to self check these kind of account bursting methods and throw them away before putting hands on real accounts. ;) 

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This article tests the the volatility of the EUR/USD exchange rates related to the European Central Bank setting interest rate decision between 11/2013 and 12/2014 and provide a profitable trading strategy. In contrast to previous articles and about NFP strategy and US GDP announcements which employed an hedging strategies at 20 and 10 Pips profits, this strategy provide a 69.9 Pips TP with a risk/reward ratio RR of 0.286.This strategy also differ from the previous in the magnitude hedging from the slippage and the spread of the news. It is improved the efficiency of the strategy considering that the ratio Efficient Profit/Slippage and Efficient Profit/Spread are different from the previous of around 1/10 order of magnitude. In this empirical analysis it is find the support for the hypothesis that central bank intervention is related to a negative differenence between ex ante and ex post measure of the exchange rate volatility. Instead, central bank…
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foreignexchange avatar

al_dcdemo  yes the test did not have a great statistical consistence but as you can immagine the interest rate decision that differe from the forecast are not so many ......
It probably could be possible to try with RUB but the slippage and the spread could absorbe the hedging pips.

Ann7293 avatar
Ann7293 28 Jan.

Useful article!!

Ann7293 avatar
Ann7293 28 Jan.

Good job!

Vale avatar
Vale 29 Jan.

thanks a lot for great and usful information!!

Mariia avatar
Mariia 29 Jan.

You made greate job!Well done!Wish you good luck!!!Going to read!!!

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1.0 What is Price Action and what is its Purpose?
There are different markets that cater to active trading and different concepts apply to these markets. Most of them are subject to interpretation, not to mention criticism, because they offer bits of information which may not be all truth. Most of these pieces of information only serve as predictions or projections, which means that they are uncertain, but this is not the case when it comes to price action.
Price action focuses only on past trading prices. Because these prices have already been traded, price action only offers traders information that is completely true. This does not make it the ultimate trading tool though and unless traders have special mental powers, they will have no ability to foretell future market occurrences. Every decision that they make will depend on how well they think they know the market and its participating companies.
Because of the uncertainty of risks that come with currency trading transactions, market participants prefer day-trades over prolonged asset accumulation. The concept of day-trading involves transactions that last from several minutes to several hours. Basically, day traders only hold…
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robsmyth avatar
robsmyth 26 Nov.

I would try at least 1/2 risk/reward ratio. Did you maby test this strategy with EA ?

fxigor avatar
fxigor 26 Nov.

Yes I did Rob. There are a lot of fake trades. I suggest manually trading and to watch manually momentum.

robsmyth avatar
robsmyth 26 Nov.

Nice. If you have time send me message with trading results. I want to know winning ratio and monthly profit. Thanks.

svetic avatar
svetic 26 Nov.

This strategy we can use on higher timeframes as H4 or daily or weekly charts. In that case - different Fib. levels.

traileriana avatar

Nice article, but could I suggest Shroom blots instead of the Fibonacci levels for setting the stop losses? ;)

Alternatively, one may use volatility to compute a sensible value, because that would actually make sense. Volatility  is also useful for deciding how much you want to risk (higher volatility => smaller amounts).

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As everyone knows, the latest version of the Visual JForex (build 1.1.224) was launched last May 1. In this new version, several bugs have been fixed on Interface, Processor and Server Side. CDLDOJI pattern indicator was added to the Indicators Library. So with this tool brand new, there is no better time to begin writing an article about the potential and somehow also a help to those who want to start but are still a bit lost. Even myself, I am a little used to this kind of tools I had some difficulty in building my first strategy. So in addition to all the help that is now available on DFC about Visual JForex, I will write a series of articles that may help overcome some difficulties that I also had._____________________________________________________________________________Firstly what is Visual JForex, and it's for?Visual JForex is a Drag and Drop tool that allows all members of DFC, to create automatic trading strategies. This tool has effective and intuitive GUI functionality. With is drag and drop technology, most of the work is done with a couple of mouse clicks. On this page you can see the main features of this tool:…
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Likerty avatar
Likerty 21 May

This VisualForex thing is really inovative - 10 points to Dukas for that!:)

tcanuto avatar
tcanuto 29 May

Very good this JForex Visual! It was what was missing!

egidijus avatar
egidijus 29 May

Nice article!

Metal_Mind avatar

like, like , like

ericksegura avatar


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Yes, it is true, for those who do not know or do not remember the Strategy Contest makes this April Three Years, since its first edition was launched, in 2010. In May 2012 I wrote an article about the Second Birthday of the competition and after a year I am back with the same theme as I think there is a need to do something to restore the credibility of the contest as well as the motivation of contestants.The Strategy Contest has always been somewhat controversial as to compliance with the rules by the participants, which further implies in the final results. As in last months, this contest has again been the subject of debate in our Community Forum, my purpose is to bring an article to debate this matter further so we can definitely have a fair contest according to the rules. The problem here are not just participants that break some rules, but we also have to put some weight on the Dukascopy Team for not enforcing the rules strictly. The issue of non-compliance with the rules is not a new issue regarding this contest, perhaps because the rules are far from be the best, perhaps because some participants do not worry whatsoever fulfill them or simply because Dukascopy forgotten how…
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LinnuxFX avatar
LinnuxFX 11 Apr.

I the past I submit my idea to Dukascopy Team, why do not have same rules like annual EA contest from MT4 / MT5. Provided strategies are filtered before they could participate in the contest...

sircris avatar
sircris 16 Apr.

I agree with you, LinnuxFX. I sent a complaint about the issues that You cite here: the contestant involved did not fix their strategy, and he responded with an arrogant attitude, when I gave him the chance to fix his strategy before contacting Dukascopy. But Dukascopy response was no better than that of Pontius Pilate. The rules are, it is necessary to enforce them! I am waiting the Dukascopy response to the clear violations of the last month.

Brasileiro avatar
Brasileiro 17 Apr.

+ like

alifari avatar
alifari 28 Apr.

Some very important points raised which could be useful, if implemented in future strategy contest rules.

xiaozuwei avatar
xiaozuwei 28 June

Excellent point, strategy contest is like a gambling! Sooner or later will hit the prize.

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The Elder Impulse System was designed to identify when the trend is really "taking off". When you think "Impulse", think the energy to launch a rocket. When the system triggers, you should be thinking rocket, and expect the market to be really "taking off"...!!! This trading system was developed by Alexander Elder. According to its author, "the system identifies inflection points where a trend speeds up or slows down". Basically, the system is based on two indicators:a 13-day Exponential Moving Average, that identifies the trend;the MACD-Histogram, to measures momentum (based on MACD(12,26,9));This unique system combination was color coded into the price bars for easy reference, giving origin to a useful indicator that combines trend following and momentum, to identify tradable market impulses.Indicator Calculation:After this short introduction, I will explain how the Elder Impulse indicator is calculated and what are its inputs and outputs. When we attach this indicator to a chart, instead of two color candles, as normally we are used to seeing (bullish and bearish candles), they will appear with a third color, which helps us to identify when the trend is slows down. 1-GREEN PRI…
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Bluedragon avatar

interest article. I wish you good luck. That this bring you the proper recognition

highwayman avatar
highwayman 12 Mar.

Helpful Article +1 But The Link Returns 404 Error, Fix It If Possible - Good Luck This Month :)

Efegen avatar
Efegen 22 Mar.

thanks for explaining Elder's system. More info on exits is appreciated. :) +1

gynexx avatar
gynexx 5 Mar.

Where I can find this indicator for MT4?

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There is no secret that 95% of retail FOREX traders lose money and only small minority 5% are making money long-term. Having said that there are lot of professional traders worldwide trading professionally and making exceptional living from it. So how to get form losing “I have no idea what I’m doing” trader to “best job ever” pro trader? Here are 10 simple steps that will improve your chances and put the odds back in to your favor. STEP 1. TRADING PLAN. Clue is in the name – professional traders are pros, trading is there business and no business will succeed without a business plan. Trading plan is your bible it should guide you and protect you. Things to include in your trading Plan: 1. Reasons why you trade Forex - simply write down why you like trading, is it your passion, hobby or just simply for the money 2. Your trading edge – what is your trading edge, you should know this in the middle of the night 3. Your Targets and goals – we all need targets to reach for 4. Your Money management and risk management rules – state your risk per trade, position size calculation, your maximum exposure and maximum possible drawdown. 5. Your trading system – right down everything you know…
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Likerty avatar
Likerty 26 Mar.

I would argue strongly about smaller tf's as noise:p

Ivolux avatar
Ivolux 27 Mar.

@Likerty You could use Smaller TF for pinpointing entrys, but just using small TF on its own to look for setups is very difficult as you have so many false setups, having said that if it works for you then crack on my friend. I personally love daily charts, stress free forex :)

SpecialFX avatar
SpecialFX 29 Mar.

LOL at that dog! :))) I agree with most points, not so much about the trading journal which is something most traders advise doing...If you have a systematic approach then all your trades will be the same, or have the same rationale behind them, so a trading journal would not be necessary, in my opinion. Yes, Likerty, shorter time frames is mostly noise, certainly much much much more than longer time frames :)

Efegen avatar
Efegen 29 Mar.

Ivolux, curious about your strategy. I love simple and working strategies.

Delossan avatar
Delossan 30 Mar.

3. "when there is nothing to trade i don't trade". That's the way to profit:)+

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I’ve been engaged in algorithmic trading for five years. During this time, I’ve learnt about performance and source codes of over 1000 various Forex robots and indicators. Just alone Strategy Contest contains some hundreds of different Forex robots and their source codes. That is very helpful for beginners in learning the algorithmic trading. I’d like to share my experience with others. So, this article presents the basic principles of creating a profitable Forex robot. Where to start? First, you need to type “Forex robot”. You can find a plenty of different strategies (robots) in Dukascopy Wiki, Strategy Contest, Forex Community. Use the sources to choose the most suitable robot for your personal Forex strategy and customise it. If you do not have your personal Forex strategy – choose whichever robot you like and upgrade it. While going deeper into Java, you will need Java documentation for JForex API. If you cannot learn programming yourself, you can always seek help from a professional programmer. How to evaluate profitability of a strategy? There are many different indicators to evaluate a profitability of a strategy. The main objective of each strategy is profit. In order …
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Paulito avatar
Paulito 25 Feb.

Thanks for the information

Dieselfx avatar
Dieselfx 26 Feb.

ok, im ready for part 2

GreenTrader avatar

good work...

Santificado avatar

Hello, friend, how can I get more detailed information about this your robot?
And if you have used in live operations?

olchik0012 avatar

удачи тебе!).

orto leave comments
Hi there. My articles will be simple and deal with the issues that the everyday trader has to confront in the market every single day. One of these is the breakout trade. What constitutes a market breakout? A breakout occurs when the price of the asset (which has otherwise been contained within a specified range by key levels of support/resistance) receives a momentum that causes it to push through these key levels, and usually accompanied by heavier trade volume. The critical factors in deciding how to trade a breakout are the key levels of support and resistance. A trader can decipher the support and resistance levels in three ways: a) The daily pivot points (R1,R2,R3, central pivot, S1, S2 and S3) . b) The supports and resistance levels (minor and major) from areas where the price action stalled to the upside (resistance) or to the downside. c) Psychological support/resistance levels. Three things happen when the price action reaches these key levels. - The price may bounce off the key levels after striking them repeatedly without breaching them. This is known as a “test of support” or “test of resistance”. - The price may breach the key levels but reverse and still end the c…
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Sintano avatar
Sintano 25 Jan.

Breakout trades are at their best when price is trapped in tight ranges. This not only allows higher target levels but stop loss levels are also very tight. Totally agreeing with SpecialFX's recommendation of adding further validations.

A breakout with 200 SMA directional movement followed by any signal indicator can be very helpful in trending markets and a breakout with bollinger band breakout (20 candles, 2.2 deviation) could yield a further win ratio.

Likerty avatar
Likerty 28 Jan.

You could expand more on the topic as it is one of the essentials in trading.. For me best indication of the upcomming breakout is early momentum changes (M5, M1 time frames) near tech level and preferably during European session

megatron avatar
megatron 31 Jan.

Nice article

Nicco avatar
Nicco 2 Feb.

Very good, but breakouts can be false, and may not yield the desired results. There are ways to cope with false breakouts, and in many cases, the preliminary false breakout is a preparation for the big move. The wider trend longer term trend has a better chance of being the winning one....Breakouts will make one loosing when shorting a pair approaching a resistance line, if the general direction is up ...A false breakout can be only a correction...corrections are smaller... Breakouts are usually stronger than corrections....We use Fibonacci lines to measure the potential of the correction...

Nicco avatar
Nicco 2 Feb.

Using this theory, a correction is 38.2%, 50% or 61.2% of the move while a breakout has a larger potential of covering 100% of the previous range, according to the same theories....And so on...

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Being a good trader, you must be more
disciplined than any other professional. There are numerous factors which influence
consistent profit making and being a most successful trader. Most successful
traders have simple practice of following their own set of rules on trading
plan and trading method and timing. Unsuccessful traders makes simple mistake
again and again and deprived of easy profit making opportunity.           . 
Discipline in observing personal trading
strategy, trading plan, trade timing are crucial factor in determining
consistency of being successful trader. Missing these facts will delist from
consistent profit makers.
Most of the traders are lonely fighters whether
they trade from home or office. Each trader’s idea is distinct and no one can
lend their helping hand to them. Even Mentor cannot mend their ways.  Because  we fight to establish our own trading Empire.
The great way to sink difference between
successful and unsuccessful trader is to keep practicing desired trade strategy
with strict discipline. Analysis the feedbacks from continuous practicing and
make necessary correction in trade strategy, plan and timing to get optimal
results. Traders refrain fr…
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positive avatar
positive 8 Feb.

I agree cent per cent. Please ensure that you do not use capital letters for the entire post.

positive avatar
positive 8 Feb.

Sorry .Its not capital letters. Read as bold letters.

doctortyby avatar
doctortyby 10 Feb.

Indeed a beautiful article about discipline... Men sana in corpore sana(Latin)+1

ritesh avatar
ritesh 26 Feb.

get this edited by help of dukascopy. it's a nice article though about trading psychology +1

belman avatar
belman 23 Apr.

Good luck to you

orto leave comments

Hello again, all members of DFC, I hope you have a Good 2012 full of Green Pips!
My article for this month is based on a Scalping Strategy I used to use in MT4 with a group of friends and now decided to make a tool for Jforex, but the main idea is, with the help of those who want to be here in the community, to create a strategy to compete in Jforex Strategy Contest!
This tool is based on an indicator and price movements in 1 Hour Chart. With the Tool I used in MT4 I only entered the market in the last 15 minutes to the closing of the 1 Hour Candle, but here on the platform of Dukas I just enter in the last 5 minutes, if the setup gives me the signal for SELL or BUY.
Strategy Description:
In 1 Hour Chart  in any major currency pair (EURUSD, GBPUSD, USDCHF) apply the MA Indicator, as you can see in next image:MA Type SMMA, with Time Period : 1 and Price: Tipical Price(HLC/3).
This SMMA is for viewing only proposes, because the developed TOOL  give us the desired values.
Run the TOOL (strategy), I developed using some code found in Dukascopy Forum, and improved for my trading needs. This TOOL give us the setup for entry on Market. So, when the current price is greater th…
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aaalisher avatar
aaalisher 18 Apr.

looks nice bro,,i shal b grateful if u email me at [email protected]

flicar avatar
flicar 1 Dec.

Hello! thanks a lot for sharing the tool! My e´mail is [email protected]
Thank you!

flicar avatar
flicar 1 Dec.

I´m sorry. The e-mail is  [email protected]

lfspinho avatar
lfspinho 18 Mar.

Olá Linuux! A tua estratégia parece-me interessante. Caso ainda estejas disponível para dar acesso ao ficheiro agradeço o seu envio para [email protected] Votos de bons negócios. Até breve!

kangur avatar
kangur 5 May

Hi, I like to have tool, can you send me to [email protected]


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