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17/44
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Why Average Down Strategy? It is simple.
There are numerous forex trading strategies available for traders ranging from very complex to simple. Some strategies require an extensive level of research, expertise and time, while some are simple but profitable. I opine that average down strategy with the right instrument at right time will be profitable with minimal research and expertise. The strategy is often profitable but losses are less frequent with high severity. We will look at how we can neutralize this risk later in the article.
I will explore the strategy in detail. Average down strategy involves split your orders rather than place the orders at the single price level. Orders sizes are increased with a predefined multiplier as the market moves against the initial entry. As you can see in the above graph, buy order size is doubled each time price drops by 5 pips. As soon as the positions are profitable, trade is closed. It is simple as that.
The strategy takes advantage of market corrections in other words reversals. Even a small reversals are sufficient to capture the profit. It works well in forex market because corrections are often seen than stocks or other traditional in…
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Sanju777 avatar
Sanju777 19 July

interesting article

vadim0223 avatar
vadim0223 19 July

хорошая робота!

Lady_in_Red avatar

nice article

anna_n avatar
anna_n 23 July

Good work .

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13/66
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Introduction
I find it useful to look at the big picture from time to time. In technical analysis terms, that usually means inspection of weekly and/or monthly charts. However, I rarely get to see analysis of "ultra-high" timeframe charts, so I decided to make a couple of attempts of my own. Previously, I analysed long term charts of the Euro, the Yen, the Cable, the Swissie and the Loonie.
Today I'll have a look at yearly and quarterly Aussie charts that are covering the period from 1971 to 2015. While the yearly may be of some use for a quick overview of price action, the quarterly chart offers more detail and makes trends, ranges and patterns more clearly visible. I will be focusing on the latter for my analysis.
Yearly Chart
Quarterly Chart
The Peg
A keen observer would have noted something very unusual about price action in the first couple of years. Volatility jumps from near zero level in one quarter to the level of ten or twenty cents in the next quarter and vice versa, several times. That's something that just doesn't happen in liquid financial markets such as major currency pairs. Volatility may increase sharply when price breaks from a period of tigh…
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Olga18375 avatar
Olga18375 25 Nov.

Good post!

Milian avatar
Milian 26 Nov.

good article))

fxsurprise8 avatar

agree longterm more losses seem likely

al_dcdemo avatar

fxsurprise8 Though the pair is holding up well in the face of all the headwinds. :)

al_dcdemo avatar

Thanks to all for your great comments!

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4/43
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Diversify Everything!
When most traders hear the words diversify, they think of adding more instruments to their portfolio, more and different stocks, bonds from different countries etc. But diversification goes a lot further then this and can take on many forms. Ever thought about adding bitcoin or other non-traditional financial instruments? How about trading a losing system? Even that can make you money in the long run. In this article we’ll go over just some of the ways you can diversify and the benefits of this process.
1. Diversify Across Different Forex Pairs
Let’s start with the lower hanging fruit first. If you have a profitable trading system, test it on other forex pairs. If the system is solid, it will work similarly on other currencies as well. Let’s take a look at a simple trend following system in the Euro. The picture below shows the daily EUR/USD chart with applied 50 and 200 period simple moving averages. The 50 SMA is in red, while the 200 SMA is blue.
When the 50 SMA closes below the 200 SMA, this is called the ‘Death Cross’’. It’s generally considered a bearish trading signal, meaning more losses are likely to follow. The Euro gave out this signal in the su…
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KATRIN_90 avatar

хорошая работа)

Margoshka avatar

great

helenaExpert avatar

nice article!

Lyolichka_Voloshina avatar

очень хорошо написано!

BeautybyLesya avatar

Great article!

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8/43
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Introduction
I find it useful to look at the big picture from time to time. In technical analysis terms, that usually means inspection of weekly and/or monthly charts. However, I rarely get to see analysis of "ultra-high" timeframe charts, so I decided to make a couple of attempts of my own. Previously, I analysed long term charts of the Euro and the Yen.
Today I'll have a look at yearly and quarterly Cable charts, covering the period from 1971 to 2015. While the yearly may be good for a quick overview of the price action, the quarterly chart offers more detail and makes trends, ranges and patterns more easily observable. I will be focusing on the latter for my analysis.
Yearly Chart
Quarterly Chart
The Character of the Pair
The thing that I find the most fascinating on this long term chart is that it pretty much captures the character of the pair that is known to me from trading it on lower timeframes. Long lasting trends with deep retracements; sharp rallies and sell-offs; extended ranges; and plenty of fake breakouts. Were time and price scales removed, I might not have been able to tell that it's not a daily (D1), not an intraday (H1) and not a London session price action (M5)…
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al_dcdemo avatar
al_dcdemo 31 Oct.

Kivetat I'm of the same opinion!

foreignexchange avatar

great article

KATRIN_90 avatar

ты молодец! хорошая статья)

VictoriaVika avatar

al_dcdemo , its insightful - very well done! A brilliant article. Inspiring! Many useful information, informative and helpful, also there are some useful tools introduced, thanks, Vika.

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11/41
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Intent

I have had the pleasure of training several traders over the course of 2 years. I have noticed first-hand the frailties of replicating my trading style on others. Instead of sharing my diverse trading strategies, I would like to set up a consistent weekly blog that presents a view (my view) on various FX pairs.
My hope is that some of you will benefit from this - whether it reinforces your thoughts/trades or presents you with an alternative precautionary view. As I hope to do this weekly, I would relish any constructive criticism and thoughts which I can address or incorporate into my future posts.
Happy reading!

Kick-off

There are broadly two clusters of trading styles - break-out trading and range trading. The emphasis of my blog posts will
be on range trading strategies. I find range trading elegant; it has
pre-set take profit levels and stop loss levels.
As the slide below illustrates, the key ingredients of range trading involved three steps:
1. Identify ranges
2. Rank these ranges in a specific order
3. Apply simulation and scenario analysis to identify risk/reward ratios

To set the scene, the following analysis has identified ranges in trading days
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Faster avatar
Faster 5 Oct.

interesting...

ilonalt avatar
ilonalt 20 Oct.

in my live account i also have some long positions, more longer than yours :) Good luck with this article

Airmike avatar
Airmike 23 Oct.

nice article

Likerty avatar
Likerty 30 Oct.

Pound is a very interestign currency for sure and prob one of the most difficult ones. As I like to say - pound always walks on the extremes, it does its thing when you expecting it the least:) I'm strongly bullish on pound too, seems taht 6380's highs and above are underway..

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9/38
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SituationAs an Australian, I have benefitted from a stronger AUD in recent years. As I am always conscious about my "wealth" in a global context, I am constantly looking at the attractiveness of the AUD relative to other currency pairs and the consequent risks of waning strength. About a month ago, I noticed a significant divergence in bond yields as well as equity returns (total return basis) which led me to access the health of the Australian Dollar. Complication1. The Australian Dollar has historically been associated with risk and the stock markets have been strong locally (Australia) and globally prior to May 2013. 2. The Australian Dollar has been very resilient and hasn't traded below parity with the USD for nearly 2 years.Question1. Should I expect the Australian Dollar to fall below parity and should I trade a short position on the Australian Dollar? 2. If I do trade the short position, what should I set as an estimated target?Executive Summary:The AUD/USD seems poised to test the 0.9340 level after failing to retain the key support level at 1.0324. Using what I will call a "volatility-divergence-analysis" or "VDA" in short, I will share the thoughts that led to my AUD/USD…
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xtrader360 avatar
xtrader360 24 June

Nice article

deliriou5 avatar
deliriou5 25 June

Thanks geula4x, nilsaedagar and xtrader360! I am working on a strategy article that I can hopefully complete by this weekend.

Daytrader21 avatar

Nicely done and very well written. By the way have you took that short position. I've been written an article about aussie when it was trading around 1.0300 and I've said I'm expecting a break down until around 0.9600 and then rally back above parity. It seems the break out was more severe than I thought and we haven't seen any retracement so far. No I've changed my mind:)

alifari avatar
alifari 25 June

Interesting article +1

deliriou5 avatar
deliriou5 25 June

Thanks Daytrader21, yeah, I actually posted my actual trade on my live account above - exact size and risk management as well. I was trading pull-backs and whipsaws so I ended up gaining less than if I held the trade all the way. Thus is the life of trading. I had the capacity to do more but I was long GBP/AUD and EUR/AUD and short XAU/USD and XAG/USD at the same time so I didn't want to over-expose myself.

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