In this lecture, I will demonstrate to you how you can export and download the EURUSD historical data of your broker. Moreover, as a resource file for this lecture, you will find a script that will help you with the download.
EURUSD historical data – medium
Let’s start by opening EA Studio and going to the Generator tab. On the Generator, you will see that the first box says Historical data, and I have Data source below.
MetaTrader-Demo is the data source that comes by default from Expert Advisor Studio and if I just click on it, I see many other sources of historical data from different brokers.
So what you need to do in order to import your historical data in the software is to go back to your MetaTrader platform and place the script.
Placing the download script in MetaTrader
So how can you do that? Go to File, and then Open Data Folder,
after that click on MQL4 folder
and then go to Scripts folder. You need to paste the EURUSD historical data download script in this folder.
Here it is, EA Studio Data Export MT4. And, of course, if you’re using MT5, you need to paste the script for MT5. You will find attached both scripts to this lecture.
After that, close the folder, go to Scripts in MetaTrader, and click on Refresh. This will force MetaTrader to compile this script and you will see it displayed.
How to load the EURUSD historical data
And before I use the script, I will show you how you can take the maximum bars of your MetaTrader. If you install the platform for the first time, what you need to do is to press the Home key on your keyboard and hold it. Now, because I have done that already it’s not moving but if you install your MetaTrader for the first time and you press the Home key on your keyboard and you hold it, you will see that the chart is moving.
Basically, it will move very quickly and it will load more historical data. So do this for the asset you want to trade. If you want to trade EURUSD, just go to M1 first, press the Home key and hold it, after it stops moving, go to M5, and do this for all timeframes. You need to do this just one time in the beginning.
After that, with time you will collect more historical bars when the new data comes. Keep in mind that most of the brokers don’t provide a lot of historical data at the beginning which is very normal so the best way is to collect it with time. I don’t suggest you download the EURUSD historical data from your history center. So if you click on Tools you will see History Center.
But if you download EURUSD historical data from here, you will see that this data is not actually from your broker.
When you install MetaTrader for the first time
So, for example, if I want to download the EURUSD historical data from the History Center and I double-click on it and I double-click on M1, it loads and I click on Download. You will see the message that pops up, “You are going to download data from the MetaQuotes Software Corp. history center but your account is opened on the JFD.” This is the broker I selected to use.
So they are warning you that you are not downloading the data you need. You are downloading the data EURUSD historical from the MetaQuotes Software Company which is actually the company that developed the MetaTrader platform.
What you want to do actually is to create the strategies over your historical data. Or if you are doing a backtest of any of the strategies, it is again a good idea to do it over the historical data of your broker.
And one last thing about the data. If you install your MetaTrader for the first time you will hit the 65K limitation. So if I go to Tools and I click on Options, you will see in Charts that there is a 65K limitation and normally this is how you will find your MetaTrader for the first time when you install it. What you need to do, press 9 and hold it and then do this for Maximum bars in the chart as well, and then click on OK and you will remove this limitation.
Maximum count of bars
Press the Home key again, hold it, and it will load more bars, more than 65K. After that, go to the EA Studio Data Export MT4 script and drag it over the chart. You will see a small menu that will ask you for the maximum count of bars you want to export. Normally, I leave it to 200,000 but if you do it for the first time, 100,000 would be alright because you will not have a lot of bars at the beginning.
And then you have the spread. You can enter the current spread. At the current moment, it’s a little bit higher for EURUSD but this is because I am writing this lecture just after midnight and after that, it will go back to normal. And if you want to enter a value, it’s good. But normally, I leave it to 0 which will round it to the higher number.
So if I leave it to 0 and, for example, my spread with EURUSD is normally 3, 4, 5, this means it will round it to 10. And if you have higher spread like 23, 24, 25 for any currency pair, it will round it to 30. So I leave it to 0 and here is the Commission in currency. For this broker, I have $6 of commission for each lot traded.
The JSON files
So I will leave it to 6 and I click on OK, and you will see what will happen.
On the left upper corner, I will see all of the EURUSD historical data exported.
I have 200,000 bars for EURUSD on the M1 chart, the same for M5, and then for the rest, the number decreases. And EURUSD 1,440 is the daily chart. I have 1,576 days or bars. And after that, I need to go to File, Open Data Folder, and I go to MQL4, and then I go to Files.
This is the data I am looking for, these are the JSON Files that were just created.
And then I will open Expert Advisor Studio. I go to Data, and here is the drop zone. This is where you need to drop the EURUSD historical data files or you can just click to upload them. I normally drop them, so I just take them and drop them in the box.
All the EURUSD historical data is imported and uploaded in EA Studio.
So if I go to the Generator and I click on the data source, I will see the historical data, JFD Demo, EURUSD on M15.
It is from the 21st of February, 2018 till the current moment. And actually, this is the timezone of the broker. For me, it’s just 15 minutes after midnight but you can see the broker uses GMT time. It is a little bit after quarter past 10 PM.
I have the EURUSD historical data and I am ready to use it and generate trading strategies with Expert Advisor Studio.
Today I will talk about the most volatile Forex currency pairs. Now the most volatile currency pairs are not the most popular Forex pairs EURUSD, GBPUSD, USDJPY. These are the Forex currency pairs that are most traded, the most popular but exactly that makes them less volatile and I will explain to you why.
Which is the most traded currency pair?
So let’s start first from what are the Forex currency pairs and what is the volatility?
So if you are a beginner, probably you know already that there are different markets like the Forex market, the Cryptocurrency market, Stock market, there are futures, bonds, a lot of things to trade with.
The most popular is the Forex market with one of the biggest volumes daily over $5 trillion. Now EURUSD definitely is the most traded currency pair, it represents the economies of Europe and the United States.
It’s a lot of transactions, a lot of European companies are working in the States, a lot of U.S. companies are working in Europe. They exchange, they send profits, they convert their income into the national currencies. And it’s a lot of trading volume for the EURUSD. But exactly because many people are buying and selling it, like 20% of the Forex market goes to EURUSD, that makes it not that volatile.
What is volatility?
Let me put that simply, imagine you are in the vegetable market. A lot of people selling potatoes, cucumbers, mushrooms, apples, but there are just a few out there that are selling pineapple, for example. So they can actually increase and decrease the price because it’s a few of them. The others that are selling the most common fruits and vegetables go to average price and they cannot fluctuate a lot with the price.
Same thing on the market, when a lot of people are trading the EURUSD, a lot of transactions, a lot of EUR exchange for USD, and vice versa. Then the price fluctuates less and that is the volatility. The more the price fluctuates up and down, the more volatile is the asset. And these are usually exotic currency pairs or these are commodity currency pairs.
What is a currency pair?
And before I tell you which are the most volatile currency pairs, I would like to explain what is the currency pair for beginner traders. So if we have EURUSD, if it rises, it means EUR rises. This is very important to note before you start any trading. If EURUSD falls, then what that means, the USD is stronger. However, if EUR is not moving, not strong, not weak, neutral, it depends on what happens with the USD, if the USD is weak at that moment, EURUSD will go up.
If the USD is strong at that moment, then EURUSD will go down. So it’s about the 2 of them, which one is stronger than the other one at the current moment. And that’s what drives the price up and down.
The most volatile currency pairs
USDKRW and USDBRL
The first I will share are quite interesting. This is the USD versus the KRW (South Korean won). And the second one is the USD versus the BRL (Brazilian real). So these 2 are quite popular among the aggressive investors, I can say, and traders because the huge volatility in these currency pairs usually makes easier profits.
But at the same time, it could bring you easier losses. So be careful trading these not popular, I can say, but most volatile currency pairs.
AUDJPY and NZDJPY
The second most volatile Forex pairs are the AUDJPY and the NZDJPY because these are economies highly connected to their exports. And, for example, AUDJPY, Aussie stands for AUD. So AUDJPY means AUD versus the JPY and the JPY is considered to be one of the least volatile currency pairs.
Which means that it doesn’t move that much. Actually, the investors consider the JPY as a safe haven currency. This means that when there is some uncertainty on the market, they put a lot of their investments into JPY as a stable currency. So they are not risking with a lot of fluctuations. At the same time, Aussie or the AUD depends a lot on the export that Australia does. So when the price of the exported goods changes, that easily makes the AUDJPY one of the most volatile currency pairs.
Canada-Japan oil relationship
Same thing with the NZD which is known as Kiwi. So when you say Kiwi to Yen means that is the NZD versus JPY. And actually, it’s known to be Kiwi not because of the fruit. But because they have a bird called Kiwi and it’s kind of a national mark for New Zealand. So when the prices of dairy goods, or eggs, or meat, wood, they export a lot of these products. When the prices change, this makes the NZDUSD very volatile and especially against the JPY which is a stable currency.
So when the NZD or the Aussie move up and down and JPY is stable, that makes the 2 currency pairs, the AUDJPY and the NZDJPY or the Kiwi Yen very volatile.
EURGBP and the CADJPY
The next most volatile currency pairs are the EURGBP and the CADJPY. So EURGBP used to be not that volatile but since the vote of Brexit in 2016, and it actually happened now in 2021, what happened is the UK is separated from Europe. Then the EURGBP started to move a lot and became one of the most volatile currency pairs.
However, with some brokers, you can find it as EURGBP. With some, you can find it as GBPEUR but it’s the same thing. So the whole Brexit thing made EURGBP one of the volatile currency pairs that I really like to trade most.
The next one is CADJPY which means CAD versus the JPY. Now as you probably know, Canada exports a lot of oil. This makes the CAD as a currency closely related to the price of oil. And because Japan imports a lot of oil from Canada, they obviously need to buy more CAD with their JPY.
And that makes the CADJPY a very volatile Forex currency pair, related the most of course, to the price of the oil. So when there are some fluctuations with the oil, the CADJPY moves as well very nicely. And we can easily trade it because we usually know what is going on with the oil from the economic news, we know when are the epic meetings, where there are important speeches. And it’s a little bit easier to trade the CAD which is related to the price of oil compared to the export of dairy products from New Zealand, for example.
The next most volatile Forex pair is the GBPAUD. So as we said, Aussie or the AUD is very related to the exports that Australia does. However, before the U.S-China trade war, Australia had a very strong partner in the face of China. But after the trade war, that changed and the value of exported goods from Australia fell which made the GBPAUD a very fluctuate currency pair as well.
USDZAR or this is the USD versus the ZAR (South African Rand). A very volatile currency pair that had a fantastic uptrend for a long time and it was super easy to trade. And a lot of the investors did a lot of profits from trading the USDZAR. Now, why is this currency pair so volatile? The South African export mainly is gold and as you know, the gold is the back up for all currency pairs and especially for the USD. That’s why the price of gold is usually related to the USD.So when the price of gold rises, more rands are needed to purchase USD.
Number 9, USD versus the TRY
The TRY has lost a lot of its value in the last decade because of political events, elections, trade war with the United States. And the lira was one of the best profits I could have ever taken. And together with the RUB, actually, when these 2 collapsed it was super easy to make some quick profits. But that’s not long-term trading. I’m talking about when something happens in the market, we want to take advantage of it and we do it. Basically, this is how I use personally the most volatile Forex pairs.
USD versus the MXN
And number 10 for the most volatile Forex pairs goes to USD versus the MXN. As you know, since Trump became the president, there was kind of a rocky relationship between the States and Mexico which made USDMXN to be a very volatile currency pair. So these are the 10 very volatile currency pairs.
But, one more time, this doesn’t mean that these are the very popular currency pairs we trade. As I said, personally I trade the most EURGBP. And with all the rest, I just take advantage when there is something extraordinary in the market when any of them collapses, crashes, something extreme happens and it moves like a thousand pips, then I would be happy to be participating and to take some quick profits. But that happens honestly rarely.
So this was about the most volatile Forex pairs. If you have any questions drop them in the comments below. Of course, probably by the time you’re reading this article, some others could be the most volatile Forex currency pairs. Because it depends a lot on what’s going on in the market. The exports, prices.
And it’s all about you if you want to be a more risky trader or you would prefer to trade the most popular Forex pairs like EURUSD, GBPUSD, USDJPY, and stay away from the volatile currency pairs.
Thanks for reading. And if you have any questions let me know.
Many traders, beginners, or even a little bit advanced people, fail on the market because they don’t have a Forex money management system to follow. That’s crucially important. This is the base. And that’s exactly what we will be talking about in this lecture.
Hello everyone, I’m very happy to welcome you to our Trading Academy channel. We share a lot of our strategies, ideas, systems for the Forex market, Cryptocurrencies, Stocks, algorithm trading. Basically, everything that we do for years.
We’ve decided to create a vlog as well where we will be sharing more thoughts, tips, and suggestions to beginner traders who are just starting out and have no idea from where to go. And especially the people who already lost money because I can assure you that the mass of people around lose money initially because they didn’t take solid education. They didn’t follow strict Forex money management.
The Profit Factor
Even if you have the perfect strategy (there is no such strategy, but let’s say you have a very good strategy), no matter if it is manual, it is algorithmic trading using Robots, just a strategy that has a bigger Profit factor.
So for the beginners, the Profit factor is the total profits divided by the total losses in the account.
So let’s say I use one strategy and I buy, sell, I follow the strategy strictly. At the end of the month, if I have $1,000 profits from closed trades and I have $500 losses, my Profit factor would be 2. 1,000 divided by 500. And anything above, Profit factor above 1, that’s OK. So even if I have $501 and I have a profit and I have a $500 loss, that’s OK because I have $1 profit.
My Profit factor is above 1, so it’s not a point to be above 0, the point is to be above 1. And why I’m talking about the Profit factor and the money management you will understand just in a second. So every strategy that has a positive Profit factor, and not just positive but a Profit factor above 1 is a good strategy. It brings you more money than losses.
Forex Money Management Strategy
Now the thing is, even if you have such a strategy with a good Profit factor like 2, 2 is a great Profit factor because you will be making simply more profits, double more profits than losses. The thing is, even if you have such a strategy but you have bad Forex money management, then you might still blow your account.
Now every strategy out there, no matter which strategy you’re using, guys, every strategy has losses. That’s why the Profit factor is important, so we can compare the profits and the losses and we can see how profitable the strategy is, especially when we do backtests with Expert Advisors.
So when you start trading, you will see sooner or later that there will be losing trades and sometimes these trades are consecutive. For example, I would be making, let’s say a $100 profit, then I will drop to 50, then I will go up to 120, then I can drop to 30. These are drawdowns. Where our equity goes down and of course if the strategy is robust and if it’s profitable in the longer term, then our equity should continue higher.
Increasing the Lots
But thing is, what happens when you have a few consecutive losing trades? This is where you can blow your account if you don’t have a good Forex money management system. Because what happens with the beginners is they start seeing profits and the feelings start to play. Especially, when you have a few consecutive days, you will be so confident in your strategy.
You will say, OK, I know how to do it now, I know how to trade, and you did just $100. And you say, OK, now if I was trading with double size, I’ll be making 200. And you start to increase the lots, you start to increase the quantity you trade, because you’re so confident in your strategy. You did profits.
But what happens is, it is very likely that when you increase your lots, the lot is the trading quantity in trading, when you increase the lots, what happens, there is a huge possibility that at this time you will hit the losing period. But you increased a lot and then you will have just double more losses into your account and you will go on 0 or even below that.
And then you’re still very confident in your system. You say, OK, I know this system is very profitable, I did profits, I just hit the losing trades. And after the losing trades obviously, I will have the profitable trades. Then you might increase more the lot. And then if there are other losing trades, you can easily blow your account.
Simply one day, you will not have enough margin in your account. The broker will close the existing trades because they cannot handle negative losses and you will lose everything. Using a profitable strategy. And many people don’t even realize what the issue is, they think it’s the strategy.
But most of the time, especially if you use a backtested strategy with Expert Advisor which proves to be robust. The reason of losing or failing and trading is because of the feelings. This is because of bad money management. And one thing, so what’s the solution?
That’s the purpose of this lecture. I’m just explaining first the problem so you can understand where it comes from. And then you will understand what is the solution. Now the solution is algorithmic trading, Expert Advisors. These are Robots that execute the tradesautomatically.
The Expert Advisors will follow your strategy strictly 100%, even when you are sleeping, even when you are driving like me.
This is what I do guys, I trade with Expert Advisors all the time. The EAs are trading on my computer. And that’s what I love the most with the Expert Advisors. But regarding the Forex money management, the Expert Advisors, these are codes. This is a code for the strategy, doesn’t have feelings.
Reasons for using a fixed quantity
So even if it does a few consecutive trades, profitable ones. It will not get greedy to increase the lot. It follows the same amount. And now all the Robots that we use in the Academy and that I attach to our courses are always with a fixed entry.
For example, you set it to 0.01 which is the minimum quantity or you set it to 0.1 or 1 lot if you have bigger capital, then that’s it. It will always trade with 0.1. And the time you decide your account is growing, you can start increasing the lot accordingly.
I will give you some examples at the end of the lecture to let you know what I follow as a Forex money management when it comes to the account and the quantity I trade with. But that’s the reason, that’s why we use always a fixed quantity in the Robots and not what most people want to have. They want to have a percentage as an entry.
Setting the Robot to open trades
So of course, that’s possible to be done with the Expert Advisors. But we do it by purpose this way exactly to lower the emotions into people. Because what’s most popular when trading with Robot, is you set it to open trades, for example, to 5% from your account. It will open every time 5% from your account and it calculates it.
The problem is, when your account starts to grow, your opening entry or your opening percentage for the Robot will grow as well. And again if you hit a losing period or if your strategy has a huge Stop Loss, what will happen is, you can have a much bigger loss than the previous profits the Robot did.
So that’s why it’s better to have 0.1 and that’s it. You follow entry with 0.1 lot. I hope I have succeeded to make that clear and I said I will give you a few examples. So when you are trading, for example, with $1,000, a good Forex money management would be to open trades with maximum 0.5 lots.
Forex Money Management – The Leverage
Then it’s up to you if you want to be trading with 1 strategy using 0.5 if you want to be using 5 strategies using a 0.1. So basically, what happens is all the time, no matter how many trades you have, you will not have more than 0.5 lots. And of course, it depends on the leverage, that’s very important, just mentioning for the beginners. The leverage allows us to borrow money from the broker.
So if you have $1,000 into your account and you use leverage 1 to 30 which is quite popular recently, then you will be able to open trades for up to $30,000. And you need to make sure that you’re using a small portion of this money.
And another thing that many of the beginners don’t understand is that the risk actually is not how much from your account you have opened or you have used. Did you use 5, 10, 20, 50% from your account? But the risk is your Stop Loss. So if you use for your strategy Stop Loss of, let’s say $50 or 50 pips, trading with 0.1 is approximately $50, then this is your risk.
The Stop Loss
No matter what is your account, how much you’re risking out of it, the real risk is the Stop Loss. Because if you have, for example, small Stop Loss, let’s say 20 pips, 50 pips. I’m not a fan of small Stop Losses, but you use 5 or 10 Expert Advisors for different strategies, and if you open trades with all of them, what will happen is that you and all of them go to a loss.
Which is also possible to happen. What will happen then is you will have a solid loss. So always calculate your Stop Loss. And this is what matters, even if you use all the money of your account. But you use a small Stop Loss, that’s still fine. You have a good Forex money management because you’re not risking a lot.
So following the money management strictly, is very important. And no matter what happens, don’t fall into emotions. Don’t fall into the greed that after profitable trades you will take bigger risks. Don’t fall into the fear that if you see a few losses, you will blow your account and you close for no reason trades. You need to accept that there will be losing trades.
Beware of scammers
The moment you accept that is the moment you will understand how everything works. And many beginners always aim to find a strategy that has no losses. I understand that because many of the brokers promise that. That’s a lot of scammers, YouTubers, people who will drive you to affiliate links for some scam companies.
They will promise you Robots without any losses and it’s like accepted. The general mass of beginners thinks that there is such a thing. But the fact is, there is no such thing, guys. There will be always a loss in your strategy. There will be a week, maybe a month even without doing any profits.
But next month will be OK. Next 2, 3 will be all right and you will be on the profitable side, if you use your strategy strictly and if you have good Forex money management. Don’t look for a strategy that will bring you no losses.
Good Forex Money Management
I’m telling you this because I have been through that. And the only solution for having no losses is the never losing formula that I have calculated for the Cryptos where I take hedging trades and I open trades against the initial trade to cover the losses. It’s mathematics that I’ve been using. And then every losing trade just exits with 0 loss.
That’s the maximum you can achieve out there, nothing more. So be realistic, don’t fall into emotions. Follow your strategy strictly and precise Forex money management that will feel comfortable for you. So anything where you’re not risking more than 2% to 5% of your account, is good Forex money management.
And anything that you are not blowing your account in a few trades still works fine.
For the purpose of this article, I will show you an example of an account. I started with 10,000 and now I am at 11,000.
This means that for 1 week or just a little bit longer, I have 10% of the account which is a very good result. And I don’t say it will happen to you when you start trading, that you will have the 10%. Maybe it will be less, maybe you will end up the week losing, it really depends on the market. That’s the one thing you should remember as well, that the results are not always the same. But the better FX training you have, the better results you will achieve.
So we don’t have 1 week similar to the next week or to the previous week. Sometimes we have a good week, sometimes we have a bad week, that’s the market. But the most important thing is that we maintain good money management. In a $10,000 account, what I wanted to show you as an example in this course, I’m trading the Expert Advisors with 0.1 lot. This means that in my account I am blocking about $100 for each trade, 100 and something, like 110.
5 open trades are normal for an account
Because you see I have 5 trades opened at the moment,
with 0.1 and the margin I am using is 549 which is about $110 for each trade. And this is 1% of my account. Or when I started with 10,110 is just 1.1%. And if all the Expert Advisors open trades, which are 5 Expert Advisors but 2 of them, the GBPUSD and the USDJPY, you can add to the position if you want to. From the Expert Advisors, Properties, you can select if you want to add.
If you don’t want to add, you just leave it as it is. So it will not add to the position because the maximum position amount will be 0.1. I keep it 0.3 so I add 2 more times.
So if all the Expert Advisors, the 5 of them open trades, and if the USDJPY and the GBPUSD add to the position, I will have a total of 9 trades opened. And each one is 0.10, I will be at 0.9 lot which will block me about $1,000 from the account. That is the maximum I can have and that is what you need to calculate in your FX training before you open a real account.
Each 110, 9 times, it will be about 990. So about 1 complete lot in a $10,000 account which is 10%. But keep in mind something, I’m not risking 10%. I will have the margin at 10% or at $1,000. This is how much it will be blocked from my account to open the trades. The rest will be a free margin like what we see at the moment.
FX Training: Stop Loss is the real risk
So if at the moment all the Expert Advisors open trades, I will have a blocked margin about $1,000 and the free margin will be about $10,000. So this is how much I use from the account to open the trades, but I’m not risking that much. I am not risking 10%, I’m risking a much lower amount. Because the risk is how much you are able to lose. How much the Stop Loss is.
And if you go through the Expert Advisors when you are learning them and doing your fx training, you will see that each Expert Advisor has a Stop Loss lower than 100 pips. In this case, for the USDJPY, for example, we have 70 pips.
And actually, looking at my account history, I don’t have a loss bigger than $100. All of them are less.
So what I wanted to say is that if you have all Expert Advisors opening trades and they all hit the Stop Loss, this is like the worst-case scenario, you will have a loss lower than 10%. That is something that every FX training education must teach you.
Because it will be 10% if all of them have $100 of a loss with 0.1. With 0.1, if you have 100 pips of a Stop Loss, this will be approximately $100. But, one more time, because all of the strategies have Stop Loss smaller than 100 pips, it is less than $100, and it’s much less than 10% if you combine them all. I will leave that to you.
The worst-case scenario matters
And this is like the worst-case scenario, one more time, if all the Expert Advisors open trades and if all of them hit the Stop Loss. Now, from my experience, this will happen very rarely. It’s not something that happens every day, every week or even every month.
But, one more time, I wanted to say that this is smart money management because I’m never risking more than 10% of my account. So I will just summarize it one more time. If I trade with a $10,000 account, I would be trading with 0.1. So if you are trading with $1,000 of account you can trade with 0.01. And if all of the trades open positions, I will use 10% from the account which will be about $1,000 in this case.
But the worst-case scenario when all the trades hit the Stop Loss which, one more time, is very rare or it might never happen to you, not while fx training and not while real trading.
It will be even lower than 10% because all the Stop Loss are below 100 pips. I hope that’s clear now. And I don’t want to show you how much is the total Stop Loss now because it will change when you’re taking the course.
Test on a Demo account while you are doing your FX Training
So I really hope that makes it clear about the money management, about how much is blocked from the account, and what is the worst-case scenario.
This is something you need to know at all times when you are trading. And the best thing to do is to test it first on a virtual account. Just practice on a virtual account. If you’re planning to open a real account with $1,000 then open a Demo account with $1,000, test the Expert Advisors for a week to 1 month, 2 months, 3 months, depends on how much time you need to test the Expert Advisors for yourself just to be confident with the results.
And don’t hurry to risk real money until you are confident with the strategies. Spend more time on FX training until you are ready. It doesn’t matter if you are trading manually with the strategies, it doesn’t matter if you’re trading automatically,
With the Expert Advisors, the most important thing is to be comfortable trading with them, to be convenient in the strategies. And this is the only time when you should be risking real money.
And, one more time, don’t hurry with that. I know a lot of people want to make profits quickly but it doesn’t really work this way. You need to test for a longer time, practice, and see how it goes.
Alright, traders, in this lecture, I wanted to talk about money management because this is very important especially if you are a beginner trader. And when taking your FX training you need to pay attention to that.
Because having smart money management will keep you longer on the market and most of the beginner traders blow their accounts because exactly of not having good money management. And this is what I want you to remember from this lecture.
Let me know if you have any questions. Share with me in the comments below what are your thoughts about Forex money management. What you’re using at the moment, so we can discuss it and see if that is the right one for you or you can improve it more. I will see you in another lecture, guys. Take care.
Hello everyone. As you already know, in our blog we share our experience, trading strategies, and many Forex trading basics tips.
In this lecture, I will cover some of the basic Forex terminologies. Moreover, I will share some tips that will help you to get started with Forex trading if you are a complete beginner.
These Forex basics tips might be very useful to some of you as this way you won’t repeat the common mistakes that most beginner traders do.
Forex Basics: Choosing a Broker
So the first step you take, even before you start trading, is to choose a broker.
For the beginners who aren’t familiar with the basics of Forex trading, the brokers are the companies that provide access to the trading platforms.
We use them to participate in the market. How usually does it go? You choose a broker and fund your trading account.
You open an account, you fund it, for example with $1,000. And then you use this amount of money to trade, to buy different assets, to sell, and so on.
One of the major problems in the trading industry at the moment is the scam brokers.
As you may know, I’m originally from Bulgaria. And unfortunately, Bulgaria is the spot where there are hundreds of scam brokers located. They don’t work just with Bulgarian clients. Actually, they don’t accept Bulgarian clients as well, at all. But Bulgaria is the place where they found it easiest in Europe to locate their offices.
There are hundreds of scam brokers. And it’s very hard for beginners to recognize when a broker is a scam until they lose their money.
What these brokers do usually is to find the so-called leads. These are the contacts they gather, usually from online ads. It could be a fancy YouTube video where traders are showing off with jet planes and expensive cars. They tell you that you can earn the same money very quickly.
And you just register, you leave your email, phone, and immediately you will receive a call from the experienced trader who will sell you anything very well. And they will ask you to deposit even through the phone, to give your credit card details over the phone to fund your account, and unfortunately, you will never see your money again.
There are thousands of people scammed daily.
Go For a Regulated Broker
Forex trading basics Rule #1 – go for a regulated broker.
We had so many people in the Academy coming after they were scammed, but unfortunately, we cannot help with anything.
Don’t ask us for that. There are some institutions that help scammed people from brokers, not sure. At the same time, there are scam companies that are helping you to get rid of the scam and to get your money back. So they will make more money from you promising they will give back your money from some scam broker.
It’s a really bad practice, and I hope you’re reading this Forex trading basics lecture before you experience such a scam broker.
To make iteasier for our students, we have created a trusted brokers page. If you visit our website and you click on the Brokers section, you will see trusted brokers that I’ve been using personally.
So, for example, in Europe, it’s a very strong regulation to have FCA, which is in the UK actually, the Financial Conduct Authority. In addition, we have CYSEC in Cyprus, and there are different regulators around the world.
There are different regulators in the United States, there are different regulators in Asia, in Africa. And actually, the scam brokers usually do not mess with the US. This is the only country they avoid for some reason.
Understanding Forex Trading Live Account & Demo Account
So you choose a regulated broker, this is the number one thing.
And then you have 2 options. To open a Demo account, or you can open a live account. The Demo account is a virtual account and if you’re a beginner, I would suggest you go for it to get familiar with Forex trading basics. Moreover, there, you have no limitation with the starting amount.
With most of the brokers, you can open a Demo account with $1,000, with $15,000, with $50, $100,000, anything. I would suggest you choose an amount that will be similar to the amount you would be investing or when you open a live account. If you are planning to open a live account with $1,000, then go for a Demo account with $1,000.
This way, you will see realistically what are the risks, how much you can achieve. And, for example, many people want to start trading with $200 which is absolutely fine. If you can afford that much, of course, you will be starting with that much.
But don’t expect from $200 to make $1,000 at the end of the month. This will be unrealistic to have 500% of a profit. I don’t say it’s not possible, I say it’s not realistic to have it as a constant result.
So start with a small amount that you feel comfortable with and you are not risking a lot. Basically, this should be an amount of money that you are capable of losing.
And before you open the account, keep in mind to choose good leverage or appropriate leverage for your trading.
Forex Basics: Leverage in Trading
Now, what is the leverage?
This is the amount of money that the brokers will give you. To trade with as an extra. Or if I will try to explain it in simple words, this is the money that the broker will borrow to you.
For example, if you use leverage 1 to 100, this means that if you fund an account with $1,000, you will be able to trade with $100,000.
And if you put all of your money into a single trade, of course, you can do a huge profit. But at the same time, you can blow your account immediately.
So this is where money management is crucial, and you should never trade with all of your money. Especially if you are not familiar with Forex basics and you are trading with huge leverage.
And for the beginners who are still getting a better understanding of Forex trading, the leverage, the money the broker borrows you is not a loan. You’re not supposed to give that money back to the broker.
This is just a financial practice and it’s not only with the Forex trading leverages, it’s used in many different fields. But with the Forex trading, it works that way. And, for example, in 2018, in Europe, we accepted the ESMA restrictions where now in Europe, we are limited with the leverage.
For example, with Cryptocurrencies, we have a maximum of 1 to 2 leverage. This means that if I have $10,000 in the trading account, the maximum I can trade with is $20,000 which is a very huge limitation compared to what I was used to and many of our traders in Europe. But that’s it.
These are the regulations and obviously, we have to follow them. And in different countries it’s different. And, of course, if you see leverage 1 to 2000, for example, I have seen such brokers, pay attention that this could be a scam broker.
Basic Forex Trading Strategies
Now, the next thing when you open an account and you choose your broker, you open an account, you set up, you install the platform, is to have a trading strategy.
Now, there are so many strategies. The first thing is it’s important to use a strategy. You cannot just buy and sell randomly by looking at the chart especially if you don’t have experience. You will end up losing money.
From where to get a strategy? I can talk a lot about that.
Definitely, YouTube is a fantastic place from where you can find free video tutorials on Forex trading and get some free strategies. And personally, I have uploaded many free videos with strategies on YouTube. Moreover, we have a separate category with articles about trading strategies in our blog.
Forex Basics Courses in the Academy
Why do we do that?
We do a lot of things in the Academy. We do paid courses, we have free courses. And usually, with the paid courses, we upload some of the videos as free lectures on YouTube so the students and the traders can see what this course is about or what we cover, what type of strategies.
And, for example, I have a few courses where I show 5 strategies. I have one course for Forex, I have one for crypto where I show 5 strategies, how to be executed manually and how to trade them automatically.
So what I would normally do, I will just upload one of the strategies free on YouTube so everyone who wants to use it, it’s OK to use it. And at the same time, if you like it, then you might be interested to buy the complete course and access the other 4 strategies. This is how personally we do it.
Now, most of the traders that are profitable are not likely to share their strategies for free as I do. That’s a personal choice. You cannot blame them as well at the same time, because they spend a lot of time creating the strategies, testing them, and there is this kind of, you know, a selfish approach that the traders don’t want to share their strategies. Or they may charge you a lot of money to give you their strategies.
YouTube Video Tutorials on Forex Trading
So YouTube is a place where you can find great video tutorials on Forex trading and I think great strategies. But, of course, most of them are for promotional purposes. And three, I would not suggest you go for strategies that are from the broker.
Most of the brokers have education on their websites. They will say this is what you need to do.
The regulated brokers don’t give promises. They just walk you through some basic education that is not enough. If the broker gives you promises, again, that’s a sign that this is a scam broker.
But if you see the Forex basics education of the brokers and you test it and you go for it on your live account or even a Demo account, you will see that 99% of the time, you will be losing.
The Market Maker Broker
The brokers do not want you to make profits, keep that in mind. It doesn’t matter if it is a scam or a regulated broker. They don’t want the clients to make money and especially if they are market makers.
So what is the market maker broker?
This is where all the funds and the transactions stay within the broker.
So I open an account with broker A, for example, if that broker is not a market maker, what they will do, they will transfer all the positions to a bigger broker.
Then some of the brokers are just transferring some of the positions to other brokers and they usually benefit from the spread. And for the beginners, the spread is the difference between the Buy and the Sell price or the Bid and the Ask price. When we buy an asset, we buy it on the Ask price, when we sell, we sell it on the Bid price.
Or if you buy EURUSD, you will be paying a little bit more expensive price from the 2 prices that you see and when you close the position, you are closing it at the lowest price. This is the spread. This is where the broker benefits. But if the broker is a market maker, they will be happy if you lose your money. Because the money will stay with them.
Do not go for education from the brokers
So I would strongly suggest not to go for the education from the brokers. You can read it as a resource, you know, just to learn the Forex basics terminologies, I’m explaining some of them in this video.
But if you want really a profitable strategy, then you should be taking it more seriously.
It should be a trusted resource and usually, what is considered as a trusted resource is if the trader is actually showing live trading. This is what I do in most of my courses or I can say all of my courses.
I demonstrate trading with the strategies, I share my screen, and I show realistic results, I always show losses as well because, with every strategy, there are losses, there are profits.
There is no perfect strategy
And I want everyone who takes a course of mine or a strategy or a Robot to keep in mind that there are losses and I just show it so the people will decide. Are they willing to take the risk to have losses? Or are they going to look for a strategy that will have no losses?
There are no strategies, guys, that will have no losses. Every strategy at one moment will bring you losses. There is no perfect strategy that will bring you only profits, keep that in mind.
The Never Losing Formula
The best that I show, for example, is the never losing formula which I called for the cryptos and it was popular much, it’s popular in the Forex market for many years.
But I just recalculated the formula for the cryptocurrencies so when you’re buying and you go on a loss, there is an option to hatch, to sell opposite with a bigger lot, and then if the price goes again, then we buy again and sell again and it’s a range in which we buy and sell until the price breaks and we exit always on a profit.
I show many examples I have updated recently because the course was launched back in 2017-18 when everybody was crazy about Bitcoin and I showed a system from where you can avoid the losses. And many of the traders ask me if this is still working. Yes, it is.
Many of the students are still using it. I get daily reports about that system because it’s a lot of people taking it and I’m still using it as well when I’m in front of the computer. And I have recorded fresh examples as well.
Forex Trading Basics: The Signals
So, about the signals, the paid signals, this is what is very popular, I would suggest you stay away from signals. A few of the providers are realistic and these are usually the groups where professional traders stay between the signals and they provide signals.
Most of the people and most of the websites that are offering Forex signals are not scams, not all of them. But usually, what they do, they’re looking for monthly subscriptions. You subscribe and they give you some signals.
Usually, they use Expert Advisors, Robots that are not very profitable or they are profitable one month and the next they will be losing. And then you just test it for a few weeks, months, and then you quit.
And new people will come, new people will subscribe, and this is how they make money. From the volume of people subscribing to their signals and not from the trading itself.
And one thing to keep in mind, if you’re using signals, you will not learn anything because they will just send you an email, a pop-up on the phone or depends how they are doing it, what they’re using, and you will see buy EURUSD at $118.50, Stop Loss $118.30, Take Profit $118.90, for example. I’m just picking some numbers right now.
You don’t know why is that, what’s the reason, what’s the strategy behind it, what they have in mind. And at the end of the day, you will spend a few hundred dollars, maybe thousands, and you will not have sustainable results.
So better look for free strategies and video tutorials on Forex trading over YouTube. There are paid courses, of course, there are paid systems, Robots.
Nowadays, over the internet, there are so many reviews. If someone is a scammer, you will find immediately reviews about it.
Pay attention to the Robots and the providers of the systems to be trusted, to have good reviews.
And you will know if this is trusted or not. Just make research before you buy any trading system, strategy, or Robot.
Nowadays, it’s very easy to find out which are the scammers. The brokers, the traders, the people who are teaching, there is always a review if they do any bad practices.
The Bottom Line
These are the very important tips when you are starting and if you have any questions about it, let me know in the comments below. I’d be happy to answer. I will see you in another lecture.
In this MetaTrader 4 tutorial, we will show you more about the MetaTrader platform, especially if you are a beginner trader. Moreover, we will give you some tips that you need to know before you trading with Expert Advisors on MT4.
Later in this lecture, you will be able to download a MetaTrader 4 tutorial in PDF and learn how to use the platform with examples.
Now, let’s jump into this MetaTrader 4 tutorial for beginners
This is how the MetaTrader platform looks like after you install it.
I have selected MetaTrader 4 for the purpose of this course and for most of my courses because it is the most common platform for trading. It allows algorithmic trading, which is very important, and it is free. The brokers pay the MetaQuotes Company and the brokers provide the platform to us for free.
We don’t pay any monthly fees, charges, and so on. What we pay the brokers is the spread. This is the difference between the Bid and the Ask price.
For the beginner traders, when we buy an asset, we buy it on the Ask price or this is the more expensive price. And when we sell the asset, we sell it on the Bid price, which is the cheaper price.
For example, if I buy one trading lot at the moment at the price of 1.1860 and the price rises to 1.1960, this will be 100 pips of a profit. If I close the position at that moment, I will be closing it on the Bid price. Therefore, the broker will benefit from the difference between the Buy and the Sell prices. This is very normal and it is important to know when you are trading with Expert Advisors.
The other cost that we pay the brokers is the swap. The swap comes if we hold our position overnight. If I buy EURUSD today, for example, I hold the position overnight, and I close the trade tomorrow, I will be charged a swap. This is the fee that the broker takes if it transfers the trade to the next day.
It is the same thing if you sell, but some brokers will give you actually a positive swap. In other words, if they hold your position overnight, you may benefit from that.
Let’s see, how much is the swap, for example, for EURUSD. If I right-click over the Market Watch, over the EURUSD and I click on Specification,
you will see below that I have some details about the asset.
I have a Swap long negative and I have a Swap short positive. This means that if I keep my short trade overnight, I will have some positive swap out of that.
In this MetaTrader 4 tutorial for beginners, you will see a MetaTrader 4 Tutorial PDF attached with some basic terminology about Forex trading which will help you learn all of these terms faster.
In the Market Watch, we see all of the assets that the broker offers you. However, if you don’t see too many, right-click anywhere on the Market Watch and check Show All.
This will display more assets that are provided by the broker. Of course, it depends on the broker that you are using and the type of account you’re using.
MT4 Live Tutorial
So on the left side, we said that we have the Market Watch with the Bid and the Ask price.
This is from where we can select the assets we want to trade. If you don’t see all the assets, you can right-click and check Show All.
This will display some more assets depending on the broker you’re using.
And if you want to open a new chart, you just click on the symbol and you go to Chart Window.
So right here I have already opened 2 charts for Bitcoin and I have some more for Forex which was opened by default when I installed the MetaTrader.
So let me remove those. And I have 1 chart for Bitcoin on hourly time frame and the other one I can change, for example, to M15 timeframe.
Types of Charts
We have actually 3 types of charts. We have bars, we have candlesticks, and we have line chart.
The most popular is candlesticks.
So when we are on M15, this means that 1 candlestick or 1 bar represents 15 minutes of a time. The chart is a representation of the price which we have on the right side and the time which we have below the chart. Where these 2 meet, we have the candlesticks.
And if we are on hourly chart, then 1 candlestick or 1 bar represents 1 hour time frame. And for each candlestick, for each bar, we have the opening of the bar, we have the closing of the bar, the highest point and the lowest point.
Positive bars and negative bars
So in this case, the negative bar is represented with white color and the positive is with black color.
So if I put the mouse on the closing of the bar, you can see exactly what are the values for the open, high, low, and close.
And what happens after the bar closes, a new bar opens. So we have the closing of that bar and then the new bar opens. The price goes up and down. It closes at one level.
And because the closing was higher than the opening, we have a positive bar that is fulfilled with black and all of these colors you can change from Properties.
And if you go to colors, you can change what you want to see on your chart.
The price always matter
Now, I’m not touching that because when trading with Expert Advisors, it really doesn’t matter what you see on the chart. It doesn’t matter if you are on a candlestick chart, on the bar chart, what are the colors?
We don’t put any Indicators. Nothing over the chart. I just wanted to give you a brief idea of what we see on the chart as price, because at the end of the day, the price always matters. And that’s the most important thing that is on the chart.
But for trading and strategies and Expert Advisors, we use different Indicators. So if I go to insert, Indicators and I click randomly on any of those let’s say I’ll select the trend Indicator called Bollinger Bands, which is a very popular Indicator in algorithmic trading.
You will see 3 lines that are around the price. But I’m not going into Indicators.
I’m not going to explain any complicated stuff because you really don’t need to know it. And I will go to Indicators List,
and I will remove it.
One more time, when trading with Expert Advisors or with Robots, you don’t need to place anything over the chart.
The Indicators, the trading rules, they will be inside the Robots. And I will show you later on in the course what are the rules, how I create the strategies, how I test them even before putting on a Demo Account.
Then on the left, below the Market Watch, we have the Navigator.
This is where we have the accounts. As I said, you can have many accounts with a broker, but if you want to test Expert Advisors on different accounts, you need to install different platforms as well.
Below, we have the Indicators very similar if you want to insert them from Indicators or you will insert them from the Navigator, just double click on it and it will be over the chart. For example, the Accumulation Indicator is displayed below the price, not over the chart.
So let me remove it for the purpose of this MetaTrader 4 tutorial. And then we have some scripts that are useful for algorithmic trading and different purposes. But the most important is Expert Advisors. And I have 1 Expert Advisor for Bitcoin.
And in the next lectures, I will show you how I’m creating Robots, Expert Advisors, how I’m testing them and how I am installing them on the MetaTrader platform. Below the Navigator, we have the Terminal where we see our balance or our account, the equity, and the margin?
So basically, the margin is how much free money we have in the account, how much we have blocked from the account, and how much free margin we have in the account. So when we start opening positions, some of this amount will be blocked.
And this depends on the leverage you’re using. For example, in Europe, we have the ESMA regulation since 2018 and we cannot have leverage more than 2 to 1 for the Cryptocurrencies, which means that if I want to buy a whole Bitcoin, I will need at least to have somewhere about $10 000. Depends on what the price of Bitcoin is at the moment.
But the leverage for the beginners with simple words is the amount of money that the broker borrowed the trader to use for trading. So if I have $5 000 in my account and I use leverage 2 to 1, then I will be able to Buy maximum with $10 000. If I use leverage 100 to 1, then I will be able to Buy 100 times more from what I have in the account. And of course the leverage is very useful.
But when you are using it carefully, we don’t Buy with all of the money of the account because if you use high leverage and you open position with all of the money, then it is very likely that you will blow your account. Of course, you can make very quick profits, but that probably will be more of lucky trading. And at the same time, as I said, it is very likely that you will just lose everything in the account.
So take it easy with the leverage. It depends on where you live and what type of broker you use, but it is always very important to trade small piece from your amount so you are not risking the whole capital in a few trades. And this is how usually beginner traders lose their money in the 1st month of their trading.
The broker we’re using for this MT 4 tutorial, for example, offers more assets on its real account, which you will see later in the course. In this course, I will focus on the GBPUSD, which I believe you will be able to find with all of the brokers.
Actually, the GBPUSD is the third most traded currency pair, the first being EURUSD. The second is USDJPY, and the third spot is GBPUSD.
However, in most of our courses, we include different strategies for different assets. In other words, if you have already many of our courses, you will have Expert Advisors for EURUSD, USDJPY, EURJPY, and EURGBP.
You will have a great diversification of your risk by trading different assets.
For this course, I will include different strategies for the GBP so you will not rely on one single strategy or one single Expert Advisor. And still, this way, you will have an excellent risk diversification which you will see a little bit later in the course.
If you want to trade any of the assets, all you need to do is to right-click over it in the Market Watch and go to New Order.
This is where you can execute an order, you can set the volume, how much you want to trade, the Stop Loss and the Take Profit.
MetaTrader 4 Tutorial: The Navigator
If you want to execute the market price at the moment you can just sell or buy. Or you can use a pending order. In other words, you can select what type of pending order you want to do and select the price at which you want to buy or to sell.
I’m not doing manual trading and I won’t be executing trades manually. You will see how I do it all with Expert Advisors.
In the Navigator, you will see that we have the Accounts. In addition,this is where you will see your account that you opened with the broker, if you have a Demo or if you have a live account.
Then we have different indicators that you can use for your strategies.
After that, we have the Expert Advisors, which I will show you how to put on your MetaTrader just in the next lectures. Below we have some scripts that are useful for different purposes when you’re using MetaTrader but I am not going into details about that in this tutorial.
The Demo account
Below the Navigator, we have the trading terminal where you will see the open trades and the closed trades. Moreover, we will have the account history where we will see all trades that open and closed.
I have opened a Demo account of 50000 USD, this is virtual money. So if you open a Demo Account and you lose, regardless of whether you are doing manual trading or with Expert Advisors, don’t worry – this is virtual money. In other words, you won’t owe anything to the broker. You can always restart your account and practice. This is the best thing.
To sum up, when you have a Demo account that you are actually trading, you have access to the market and you can practice without losing anything.
Don’t hurry to risk real money until you are confident with the system and until you feel satisfied with the strategies, with the Robots that you’re using. Not just from this course, but any other strategies that you learn.
Make sure to practice and make sure to master it before risking real money on the market.
In the middle of the screen, you see the charts and you can modify those. I can right-click and select Tile Windows. This will split the window into 4 charts, and I can close them if I want and leave just one. As I’ve said in this course, I will be trading the GBPUSD.
Customize the Candlesticks in MetaTrader 4
For the Expert Advisors, it really doesn’t matter if you have indicators over the chart or not. Therefore, what I like to do for the purpose of this MetaTrader 4 tutorial, is just to remove the indicators from the chart, and as well I remove the grid behind. So I can right-click over the chart, go to Properties,
and from Common I can uncheck Show grid as well.
I can change the colors of the candlesticks or I can leave them the way they are.
It doesn’t really matter for algorithmic trading.
One more time in this MetaTrader 4 tutorial for beginners, I will go to Indicator’s List because I didn’t remove the Moving Average.
The last thing, I will uncheck One-Click trading because I don’t need it. This is the default chart and I can actually save it as a template. I will right-click over the chart, go to Templates, Save Template,
and I will save it as Empty template.
This way, I know that whenever I want to have an empty template, I can easily do that.
The 4 Candlestick Values
You can modify your MetaTrader trading platform any way that you want. For instance, you can switch to a bar chart or to a line chart, which is the very same thing.
But with candlesticks, we have a more visual representation of the price by having the candlesticks colored according to whether they were bullish or whether they were bearish.
In other words, if they were positive or if they were negative. And if I put my mouse on the closing of any of the candlesticks, you will see that I have 4 values: High, Low, Close, and Volume.
And the current price for GBPUSD is 1.3126 and all the rest that you see before that is called historical data.
In another lecture, I will show you how we use this historical data to create strategies and Expert Advisors and to see how they performed until the moment. And along with the lecture, I will show you more about the MetaTrader platform, so you will feel comfortable with it.
This is about the MetaTrader platform tutorial for beginners. If you have any questions, let me know. By the end of the MetaTrader 4 course, you will know exactly what you need to do in order to test Expert Advisors and to see some profits into your account.
But if you just play around with the trading platform, you will see that it is very easy to use, and especially for algorithmic trading is just a few clicks to put the Expert Advisor on the MT4 chart and to make it start trading for you. Thanks for reading this MetaTrader tutorial for beginners. See you in the next lecture.
In this article, I will show you how to backtest EA online on MetaTrader or in other words, how to see the performance of the Expert Advisor. As I showed in the previous lecture, the Expert Advisor is a trading strategy that is automated.
So in this account, I have now 13 Expert Advisors. I’ve been trading with 12 of them. And I have added one more, which I have displayed over the chart, placing the indicators. But as I have concluded, it is really hard to follow the Indicators manually. We need to spend a lot of time in front of the screen. So the best solution is to trade with Expert Advisor.
Now, we test the Expert Advisors on a few brokers. Obviously, we can’t test them with all of the brokers. There are thousands of brokers around and that is why the best thing you can do when you have an Expert Advisor is to perform backtest EA on your broker.
And if you do actually a backtest on a few brokers, you will see how different the results are.
In our courses we have demonstrated many times that if we trade with the same Expert Advisors on different brokers, we get totally different results.
It is because the spread is different on the brokers, the commission, the swap, the prices. Usually, the brokers have different liquidity providers, which simply means that they receive different prices and usually it’s a very small difference.
But when trading with Expert Advisors, we are very accurate in executing the trades and we can see that difference.
Now, how to backtest EA on MetaTrader?
First, I will need to attach the Expert Advisor over the chart so I can double-click on it, or I can drag and drop it over the chart and I will see the small input menu.
And I don’t want to trade with the Expert Advisor right now. I just want to show you how to backtest EA online. But anyway, I will attach it over the chart.
Let’s say I will be trading with 1 complete lot and I click on OK. We see a smiley face, which means the Expert Advisor is attached over the chart.
EA Backtesting with MetaTrader Strategy Tester
You see where your trades opened and closed.
Now, what I need to do is right-click over the chart and go to Expert Advisors and select Strategy Tester.
A new window will pop up below the terminal. And there we have the setup for EA backtesting on MT4. Now, what’s very important with the Expert Advisors that are created with EA Studio is to use as Model, “Open prices only”, and usually all the rest is set automatically.
You can see I have the symbol EURUSD and I have a period of M15. It’s up to you if you want to backtest EA on the current spread or you would like to put a little bit higher as 10, which I usually do, and then we can select the date. Let’s backtest this Expert Advisor for the last 2 years.
So we are in September 2020. I will just go back a little bit to September 2018 so I can backtest EA for 2 years. And then instead of today, I will select the 1st of September 2020. So we have exactly 2 years to backtest EA online. Now, below we have the Visual mode.
So if you keep it checked, you will see the actual EA backtest on the chart. Let’s see how that looks. I really like it, by the way, because it gives you a visual presentation of where the trades were opened and closed. Before I click the start button, you can see there are Expert properties, from where you can change the parameters for the backtest.
We will use 1 complete lot to backtest EA
As we said, let’s make backtest EA online with 1 complete lot.
I click on OK, and I click on Start and the chart starts to move. This is since the 1st of September 2018 and the EA backtest in MetaTrader starts after the first 100 bars, so we will see the first trades opening in a while, or if you want to see it faster, you have the Visual mode from where you can increase a little bit the speed.
What I was saying is that some strategies are more active and they open trades all the time. But that’s not always the best case because we pay more spread to the broker.
Some traders prefer to trade with active strategies. Others prefer to trade with strategies, where the trades happen rarely or we have more confirmations. This strategy is just a normal one, which has 2 entry conditions, as I showed, and 1 exit condition, Stop Loss and Take Profit. I will increase it to the maximum.
It goes fast and the EA backtest is complete. In the end, it shows the indicators that the EA backtest uses. This is exactly the Bollinger Bands, the Escalator Oscillator. And as well we have the 2 Moving Averages, which in this case are displayed with the same color.
Now, below we have a few tabs. One is the Results where we can see all the trades that happened from September 2018 until September 2020. The final balance is at 15 203, which means it’s about 50% of a profit, or that would be $5203.99.
And if I go to the Graph, you’ll see the equity line of that strategy.
It started at 10 000 and had a couple of drawdowns and stagnations. It reached to 16 555 and it ended at about 15 200. So that’s quite a normal strategy, again I say, an Expert Advisor with profitable periods and losing periods.
And every single strategy has losing phases, losing periods, or consecutive losses.
In other words, we can say that during this time, for example, the strategy was just losing. The market conditions were not appropriate for the strategy. So it did more losses instead of profits. But overall, the strategy is profitable. In the long term, that is a profitable strategy.
And really try not to look for the strategies that have a perfect EA backtest online. These are usually the strategies that the people sell on the market and they are just over-optimized, or in other words, their parameters were fit perfectly for the EA backtest to show you great results. And usually, this kind of Expert Advisors blow the accounts of the traders.
Why do we trade many Expert Advisors?
So, one more time to summarize it, every strategy has losing periods and profitable periods, and this is why we trade many Expert Advisors simultaneously. So when one of them is in a losing phase, the others will compensate for it.
This article is based on a free lecture from the MetaTrader 4 Forex Trading course + Weekly Robots course. In the next lecture, I will talk more about trading many Expert Advisors. What are the benefits? And you will see the difference when we are trading with 1 Expert Advisor or when we are trading with many Expert Advisors, you will see how different the backtest is.
So don’t hesitate to make a backtest online for any of the Expert Advisors or to compare a few brokers and see which one will give you a better EA backtest. Because this way, you will know which broker gives more profits.
Thank you for reading the lecture. If you have found it beneficial, leave a comment below and if you want to get more of our free videos, make sure to subscribe to our YouTube channel.
Getting started Forex trading for beginners: learn what is most important to know before you risk real money.
Hello, everyone. In this blog post, I will introduce the very beginner traders to the first steps that you need to take before you start trading on the Forex market. And as you know already, the Forex market could be risky so it is very important to start Forex trading properly.
I will separate the getting started Forex Trading in a few steps so it will be easier. The first step that you need to take is to find a regulated broker that you will be using for your trading. The Forex brokers are huge companies that offer trading platforms. They give us access to the market.
We can open a Demo account, which is virtual, so we can practice trading or test Expert Advisors. Or we can open a Live trading account, which means a real trading account, which we need to fund with money, so we can start trading.
You can look for a Forex broker over the Internet. You will find hundreds or even thousands of websites. But be very careful because obviously there are many scam brokers around that offer, not just bad trading conditions, but most likely you will never see your money again if you fund an account with a scam broker.
Getting started Forex trading with a regulated broker is a must!
So to make it easier for my students, I will give you more information about the Forex regulations.
So each broker must have a regulation. Anyway, there is a huge risk that this is a scam broker.
So when you are looking for a broker to look for the brokers that have regulations. We have the Commodities Futures Trade Commission in the US.
We have the NFA again in the United States.
FCA is a very strong regulator in the UK.
We have MIFID as well.
So there are many regulators around. But to make it simple, just look for the brokers that are regulated with some of these regulations that I have described.
And I usually avoid recommending brokers. That’s a personal choice. It’s up to you. But to make it easier for our students and for the people who have a hard time finding a broker, we have created the brokers page on our website where you will learn more about the regulations, how important the low costs are, the reviews.
We test the brokers before listing them on our website
So always look for honest reviews from different traders, forums, blogs, so you can have a better understanding and idea about the broker that you are planning to use. And below, we have listed some brokers that we have been using so far.
I asked my team to write honest and long reviews for each of the brokers with some PROs and CONs. So we just make it easier for our traders and students to select the broker that fits them the best. And, of course, we are improving this page all the time.
So by the time you are reading this post, if it is after a few months or after a year or two, it might look different with other brokers or more brokers. But, of course, before listing any of the brokers hon the page, we do our best to test them.
So we make sure that our students are using regulated and suitable brokers for algorithmic trading. Below, you can find some more tips when choosing a broker that will be helpful to you if you are doing it for the first time.
And keep in mind that I use many brokers but if you are just starting Forex trading then one broker would be just fine.
Getting started Forex trading with a Demo account
But, one more time, don’t take it as a recommendation. It’s up to you which trading broker you will be using. Now, let me show you quickly how you can open a Demo account with a broker, which is very similar to most of the brokers.
I will click on create a Demo account,
and you see that I have the blank where I will need to enter some personal details.
My name, e-mail, country, phone number. I guess here I will need to remove the code because it’s already selected after my country was selected, then I would like to have my account currency in Dollars.
And what is your trading experience? Then you need to submit and confirm that you agree with their terms and conditions and then you just create your account. Pretty much that’s it. And after that, I have the confirmation that the account was created and it says that I need to check my e-mail.
Below you will see how the getting started Forex trading Demo account e-mail looks like.
And it’s very similar to most of the Forex brokers. So I have the login information and then I have the password and then I have the server of the broker and below I have the links from where I can download the trading platform.
Is it possible to have two Demo accounts at the same time?
So I will click on Download MT4 for desktop. And if I click on the EXE.file, you will see that a small menu pops up and the installation is very quick.
And I will click on Settings to give you a few tips if you are installing a few Meta Trader platforms.
So to make it clear from the beginning, if you want to test many Expert Advisors on a Demo account and to put the top Expert Advisors or the best-performing ones on your live account, you will need to have 2 different Meta Trader platforms installed.
You cannot switch from Demo to Live account on one and the same platform because if you are on Demo and you switch to your live account, you will disable your Demo account and vice-versa. If you are on your live account and you switch to Demo, you will disable the Expert Advisors on your live account.
This is a common mistake that beginner traders do. So I wanted to make it clear from the beginning while I’m installing the trading platform and if I click on Settings, I have the option to choose the installation folder.
Make sure to install two different MetaTrader platforms.
For example, I can write down ATFX GM MT4 Demo account. And if you want to install another platform for your live account or for a second Demo account from the same broker, just use the same EXE.file and change the installation folder.
Because if you use the same installation folder, you will just overwrite the platform.
And then you click on next and it takes just a couple of seconds to see the new platform installed on my computer. And here it is. I click on Finish and you will see the new platform opening in a second.
It usually brings you automatically to the MQL5 website, which is the official website for Meta Trader. Meta Trader platform was developed by the MetaQuote company and the brokers pay the MetaQuote company for providing the Meta Trader platform to us the traders because we are clients to the brokers.
And by the way, if you are trying to download Meta Trader 4 from the official website, it will download Meta Trader 5 for you. There are 2 versions – Meta Trader 4 and Meta Trader 5. The company is trying to push all the traders towards Meta Trader 5, but Meta Trader 4 is still the more preferable platform and most of the traders are still using it.
The MetaTrader platform is perfect to get started with Forex Trading.
I still use Meta Trader 4, so here it is a brand new platform installed and all I need to do now is to log into the account that I have just opened.
So I will need to go to File, and click on Login to trade account.
So right here I will just paste the login details and the passwords and the server.
It is automatically fulfilled and I click on login and in the bottom right-hand corner you will see that I am already connected to the server of the broker.
OK, and on the left side you will see that all the quotes or this is the market watch where we see the assets, the prices start to move.
They change from red to blue, which means that I am simply connected to the server of the broker. This is how easy it is to open an account with a trading broker, a very similar process with most of the brokers. Now you are ready to get started Forex trading in a virtual environment which is the right way to go.
If you want to learn more about MetaTrader have a look at that video:
Hello everyone, today’s topic that I have selected to talk about is the Forex major pairs. And quite often we receive questions in the forum and in the email, and many of the students are asking which are the currency pairs that I trade. And as you have noticed in most of my courses, I trade with the major Forex pairs.
So which are the major Forex pairs? Four – EURUSD, USDJPY, GBPUSD, and USDCHF.
These are the very major currency pairs even if some traders say that Aussie (AUDUSD), NZDUSD, and USDCAD are major. Now, these 3 – the AUDUSD, NZDUSD, and USDCAD, are known as commodity currency pairs.
Why? Because the economies of these countries are very dependent on what they export and these are different commodities that I’m not going to talk about in this video. But the 4, EURUSD is obviously the most traded currency pair, above 20% of all daily transactions on the Forex market are for the EURUSD.
And as I have mentioned in some of my courses, the Forex market does above 5 billion daily transactions which means that more than 1 billion is just for the EURUSD. The Second among the Forex Major Pairs is the USDJPY which is accepted by the traders as a safe haven currency pair, I have also mentioned that in some of my courses.
JPY is considered a safe haven currency
For the beginners, this means that when there is some uncertainty on the market, a crisis, or when there are wars, the investors put their money into JPY. They buy more JPY which makes USDJPY obviously fall but the JPY as a currency is considered to be the safe haven.
And number 4 in the major Forex pairs is the USDCHF.
I’m not sure if you know but the Swiss Franc was stuck to the EUR like the Bulgarian Lev right now, we have 1.96 as a constant rate. So for 1 EUR, we pay 1.96 of Bulgarian Levs, and this is every day for many years now. So why do traders trade the Forex major pairs? Why do I trade them as well?
The spread is what makes the Forex major pairs attractive
When there is a lot of volume in one currency pair, it means that there is less spread. The spread is the difference between the Bid and the Ask price, this is what the brokers benefit and this is what we pay when we are buying and selling currencies on the Forex market.
The more volatility there is on a currency pair, the lower spread we pay. On the other side, the currency pairs that are not within the Forex major pairs are called the exotic currency pairs and they have a bigger spread.
For the traders, it is more expensive to trade those. Especially when I trade with Expert Advisors, it is essentially important to trade with a small spread. And as you know, I share a lot of my Expert Advisors in the courses and you can’t believe how different are the results the traders are getting.
Some traders report to me great results and others, for the same period of time, report losses to me, trading the very same Expert Advisors. This is because these guys that are losing are trading with brokers that offer high spread.
The slippage is not so likely with the Forex major pairs
So trading the major Forex pairs is very important because we pay a small spread, but you need to look for the broker that will offer you the small spread. And another important thing, the slippage – the more volume we have on the major currency pairs, the less chance we have for slippage.
Not really a nice feeling especially if you were in the right direction. So as a conclusion, you really don’t need to trade anything different from EURUSD, GBPUSD, and USDJPY.
And as I show in my courses, I combine, for example, EURJPY or GBPJPY to have equal exposure in my portfolio because I trade with many Expert Advisors.
But don’t really go for exotic currency pairs where you might pay a lot of spread and you might have problems with the slippage. Stick to the Forex major pairs and you will be doing just fine.
Many professional traders are trading just EURUSD, GBPUSD, and USDJPY, or even just EURUSD. I know many professional algo traders that trade just EURUSD with many Expert Advisors using EA Studio.
They use different strategies so still, they have a nice risk diversification.
Thank you, guys, for reading. If you have any questions about the Forex major pairs, please, let me know.
Hello, everyone, today I will be explaining with simple words what is EA in Forex Trading. And I will show you one of my trading accounts where I have different Expert Advisors trading on different assets. If you look at the Navigator, you will see that I have a variety of assets and I have been trading with different Expert Advisors on each chart.
I have Expert Advisors and they are all trading at the moment. In this lecture, I would like to talk more about what is EA in Forex trading. For the beginner traders, I will demonstrate how to make a backtest. And simply, you will learn more about these trading Robots.
I guess you already know how to place the Expert Advisor over the chart. And I will place the very same Expert Advisor on a new chart window. It was for EURUSD, so I will right-click over EURUSD and I will select a chart window.
And here it is.
Now, what I need to do is to go to file, open data folder,
and then I click MQL4,
and I go to Experts.
I will drag and drop the Expert Advisor and I will close the folder.
I will go to Expert Advisors in the Navigator, I right-click and refresh.
The Bollinger Bands
So this is how I will compile this Expert Advisor. It was for EURUSD on M15 and it has the magic number of 51812206. Now, before I drag this Expert Advisor on the trading chart and I show how to make a backtest, I will show you what is the strategy behind this Expert Advisor and these strategies for all Expert Advisors that we use are different.
So they buy on different rules and they sell on different rules. That’s the idea of trading. This is why we traded many Expert Advisors or many trading Robots because we want to buy based on different entry conditions and to close the trades based on different exit conditions.
So, for example, this Expert Advisor uses 2 entry conditions and 1 exit condition. Let me zoom the chart and I will place the Indicators over it. I will go to insert and Indicators. The first Indicator that I will place is the Bollinger Bands.
For this strategy, we have a period of 35 and we have a deviation of 1.34. I click on OK.
You will see the indicator displayed on the chart. Here it is.
We have 3 lines. And how the Bollinger Bands Indicator works is that when we have volatility on the market, for example, when you see in this period here, the price went down and the Upper Band and the Lower Band went far from the middle line.
What is EA in Forex trading with the Accelerator Oscillator inside
When there is no volatility and the price goes just sideways, they come closer together.
So the entry condition that we have with the Bollinger Bands is that we buy with this strategy when we have 1 bar opening above the Lower Band after opening below it. We have 1 bar that opened below the lower Band.
And if the next one opens above the Lower Band, this is our signal to buy. But we have as well confirmation with another Indicator called Accelerator Oscillator. I will just add it from insert Indicators and it’s the first one on the list. It does not have any parameters or levels.
It is displayed below the chart by green and red bars. I click on OK.
You will see them right below the chart.
And the rule here is that we have the confirmation for the Bollinger Bands to buy if the Accelerator Oscillator crosses the level line downwards.
As you can see it is a lot to follow if we do it manually. When you underestand what is EA in Forex trading you will know that it works much easier.
At the very same time, when we have the signal to buy from the Bollinger Bands, we need to see that the Accelerator Oscillator crosses the level line, which is the 0 line, downward. In this case, with this example right here that I just took randomly, you can see that the Accelerator Oscillator crosses upwards.
The Accelerator Oscillator is if you connect the bars or the ending of the bars, I can say. So in the middle, we have the 0 line. And then if you connect the tops and the bottoms of the green and the red bars, you will have the imaginary line. When it crosses the level line, this is the confirmation.
Let me look for such an example. We have a bar opening above the Lower Band after a bar that opens below the Band.
Or in simple words, this means that the price crosses the Lower Band. And at the same time, the Accelerator Oscillator crossed the 0 line downward, and here there would be an entry. Let me put one vertical line and I will put another line exactly on the opening of that bar.
The Moving Averages
So right here we have the confirmation to buy and this is our entry with this strategy.
The very opposite thing applies if we are selling. We should see a bar that opens above the Upper Band and a bar that opens below the Upper Band, and that would be a sell signal.
What is EA in Forex trading? Its all of that but automatically…let’s keep it going
But at the same time, we will need to see that the Accelerator Oscillator crosses the 0 line upwards, which in this case happened a little bit earlier, 2 bars earlier or 2 candlesticks before the signal from the Bollinger Band. So there is no confirmation.
Now, let’s stick to this example so I will show you what is the exit rule for the strategy and when we enter the trade, this is pretty much half of the work. We need to exit from the trade.
Now, for this strategy, we have a very nice exit condition, which I like a lot, and this is the crossover of the moving averages. If I go to insert indicators and I go to trends, I will see the moving average and I will need to place 2 moving averages. One will be with period of 22.
You can use any color of your choice
I click on OK, and you can see the line with the red color below.
I will add one more moving average with period of 32, and I will change the color to anything. Let’s make it just some more visual. I will make it blue. I will click on OK, and you see here is the blue line.
Since the blue line is the slower moving average with a bigger period, you can see that it changes its direction later than the red moving average, which has a period of 22. And because their parameters are different, they cross.
The cross is our exit condition. So for the long trade or for the buy, we will exit when the fast moving average, and in this case, it’s the one with a period of 22 or the red one, crosses the slow 32 or the blue one upwards, which comes a little bit later.
If I zoom the chart, you will see that we have our entry and we also have the cross, and the cross is very near to our entry price but the price at this moment is higher.
The cross happened on the candlesticks. On the opening of the next one, we will have our exit.
What is EA in Forex trading:The buy signal
We benefit with this example, about 20 – 19 pips, I think, and something. We enter at the 1.1644, exit is at 1.16638
So about 19 Pips. And something interesting with this strategy is if I zoom out, you will see how the moving averages go. And usually, when the fast moving average crosses the slow moving average, this is a buy signal. But instead of buy, we are taking the profit here because obviously, they will cross when there is an up movement. Anyway, they will not cross.
And you can see what happens after that. The price goes sideways and then it goes down. So if we enter at that moment and if we don’t take our profit in here, then we might lose. That’s quite interesting with the strategy.
It brings quick profits and as well we have a Stop Loss and Take Profit, which means that when we place the trades in MetaTrader, you can use the one-click trading, which allows you to buy and sell faster when you see the signals, or you can go to Trading, New Order.
Stop Loss and Take Profit
And from here we can enter the price, the different type of order we want to use. If it’s pending, it means that we put the price at which we want to enter and we have the option to put the Stop Loss and the Take Profit. For beginners, the Stop Loss is the level at which we want to stop the loss or in other words, to exit the trade if we are in a loss.
And the Take Profit is the level at which we would like to take our profit or to close the trade if we are on profit.
So, for example, if we enter at 1.1644, we can put a Stop Loss at 1.1625, Take Profit at 1.1680, or anything like that. I’m just giving some numbers randomly.
What is EA in Forex trading if we have so many rules, stop loss and take profit? It is all of that combined into a code.
But for this strategy, we have a Stop Loss of 77 pips and Take Profit of 65 pips. So 77 pips below the entry price is our Stop Loss and 65 pips above the entry price is our Take Profit. Now, I’m not going to put these levels, but what I wanted to show you is 1 regular strategy, I can say, which has 2 entry conditions, 1 exit condition, which is the moving average, but it’s formed by 2 moving averages.
As I’ve said, we have a Take Profit and as well we have a Stop Loss level. We have like 3 Indicators, 4 in this case, the Stop Loss, the Take Profit, and imagine if you have to follow that on 1 chart. You will be able to do it.
Diversify the risk between different strategies
I’m sure you will practice for some time and you will know what you are doing. I am teaching such strategies in my courses, many of the students are applying them. But the hard thing comes when you want to trade many strategies at the same time to get more profits.
You should diversify the risk between different strategies. Because as you know, every strategy has a losing period and a profitable period. You will see that in the next lecture where I will show the backtest of this strategy. But if you are trading just one strategy and you hit on the losing period, that could be a couple of days, a couple of weeks, or even months.
So imagine you are following the trades every day, executing the orders at the exact moment, and you are just losing because you are using this one strategy and it’s in the losing phase. You won’t feel comfortable and you won’t be satisfied with your work.
So the solution is to trade with Expert Advisors because we can trade such strategies automatically. This is what the Expert Advisors are. All of that is executed automatically by the Expert Advisor or in other words, the Expert Advisor is the coded strategy, just what I have described here.
The Expert Advisors are convenient
Especially the strategies that have many Indicators over the chart, like 3, 4, 5 entry rules, 2, 3 exit rules, it becomes really messy. And at one moment, you will not be sure what you are looking at.
It just gets confusing. Most importantly, we cannot follow the strategies manually all the time. Obviously, we need to rest. We need to sleep, eat, spend time with our family, workout, or whatever you do as a hobby.
Or if you have a full-time job, most probably you won’t be able to trade more than a few hours in the day, which means that you will not have the time to follow the charts and the indicators.
And this way, we have the chance and the opportunity to trade many strategies similar to that one. And we do it for 24 hours from Monday until Friday. No pause, whatever we do, work, sleep, eat. The Expert Advisors are executing these strategies accurately and we don’t spend time in front of the screen.
Hello everyone, today I will teach you how to use free trading signals because it is very common for the traders to fall into the trap to go to Google and to search “free forex signals.”
The results they get are not really free. Most of the trading signal providers will charge you money or they will ask for your email and they will start spamming you and sending you offers. At least they will be trying to sell you something different. Most of the results are from brokers.
I’ll click randomly on any of the results – FX Profit Signals. The website redirects you to something. What do we have here? Limited places – lifetime promotional offer. I’m not really sure what’s the offer.
Start now for free. Learn, trade, and profit with the best trading signals. I just want to show you an example of a signal provider and I want to show you how much they charge for that.
These websites will not let you learn
In this random website that I have landed, we have €69 per month, for 3 months, €149 for trading signals, and for 1 year we have €359. This is for 5 to 7 signals daily.
Look at the promise, 1,000 to 2,000 pips a month.
Interestingly, we see no backtest, no results, at least I don’t find them from the first view. But they don’t look like cheap Forex trading signals. You can go through the websites yourself to look for more free trading signals. But as you saw, on this website it was free but when you go to the premium and so on, you have to pay.
Now, either they will send you just some free trial period which is quite normal or they will send you a couple of free Forex trading signals just to attract you as a client. The thing with all of these websites and with the whole idea to use live trading signals is that you are not going to learn anything.
Even if you pay for a couple of years, at the end of the day, you will have no idea why these guys are sending these signals to you, what is the strategy behind, and why some days you lose and others you profit
You can do the trading signals yourself
When I say live trading signals, they will not be really live because you will always be late. How these trading signal providers work is they will either send you a message push notification, they will send you an email, maybe some chat, Skype, anything but you will always be late.
Let’s say I receive such a signal at the moment that I have to buy EURUSD. I will need to open the platform where I have an account, and I will go to EURUSD and I will do one-click trading and I will buy.
In this case, it took me a couple of seconds because I am in front of the computer and I have the trading platform open.
What if you are in the bathroom? What if you are outside walking? You will stop and you will execute the trade from your phone. What if you are driving? This will be dangerous. Don’t get me wrong. I am not saying you don’t do Forex trading signals.
Why I don’t do live trading signals?
It is expensice
It is Never free
I can do it by myself and I will teach you how to do it, now!
Whichever trading platform you use, you will gain access to the market
Actually, it could be signals for anything. It could be for the Bitcoin which is quite volatile recently. And just yesterday, I recorded a couple of examples of how I am trading and investing in the Bitcoin and I have my own trading signals from the chart itself.
All of these lines that I have on the chart, they give me signals when to buy and when to sell.
Believe me, it’s really nothing complicated. In this free lecture, I will show you 3 different ways that you can have your own free trading signals so you don’t need to pay subscriptions to anybody and you will end up making some money for yourself as additional income.
Or, of course, if you want to do it more professionally, with the time you will have an idea in which direction to go. So number one is the price action trading and I have some great videos about it. I have a Price Action Trading Course where I show in detail the system.
I will show it to you over the Bitcoin. What we have always is the trend. No matter which trading platform you are going to use – it could be TradingView, it could be Meta Trader, all of these platforms give you access to the market.
The Demo account is where you need to start from
If you don’t know where to start, just download a Meta Trader platform from a regulated broker and open a Demo account. This is a virtual account, no engagement. You will not spend a single dollar but you will haveaccess to the market and I will teach you how to have your own signals.
Going back to the TradingView platform, I have the Bitcoin over the chart and I have lines that are drawn over the chart. For beginner traders, when we have the chart, we can draw different indicators and lines, in order to get the trading signals or in other words, to know when to buy and when to sell.
The strategy to get one of the best trading signals that I will share with you now is very simple. What you need to know about the market is that the price has the tendency to trend. In other words, this means that for some period, the price goes upwards or it goes downwards and this is quite normal.
This happens because the majority of the investors at one moment are willing to buy, and on the other, they are willing to sell. Actually, this is just from the coronavirus in 2020. The market crashed. As well, it reflected the Bitcoin. However, it recovered very nicely after that until the moment.
Failure of the recent high is a great day trading signal
It broke the $10,000 just yesterday and I had some really good trading signals and profits which I have recorded for my Cryptocurrency Investment Trading Course. Now, what are the trading signals that I use to buy Bitcoin in this example?
These are counter trend lines. Price forms these highs and lows.
The price always moves this way. It moves up and down, up and down, and forms these tops and these lows. Now, when we are in an uptrend or when the majority of the traders and investors are buying and pushing the price higher, we are looking for a failure of the recent high.
This means that we have a high and then the price goes down, goes up, and fails to take the recent high. This is the failure of the recent high and this gives me the opportunity to draw the line which will give me the signal.
On the side, I have the option to draw a line so I can draw a line anywhere I want.
And for this strategy, I need to start from the top and connect it with the recent lower top or, one more time, we call it the failure of the recent high. This gives me a great entry. And I used it. I bought some cryptocurrency the other day and yesterday I made a great profit out of it because the Bitcoin just continued higher.
I don’t pay a single $ for trading signals
Let’s open one of my trading accounts that I have in Coinbase. If I click on Portfolio, you will see how stable my portfolio goes.
And guess what? I don’t pay for trading signals, I do the trading myself with the skills I have and I will share with you some of them.
So yesterday, on the 26th of July, 2020, I withdrew some of the profits. It was €559. And the profits came because I sold Stellar and I sold Chainlink.
Just because the Bitcoin did a great move up, I have taken the advantage and I took some profits.
These cryptocurrencies I have bought exactly because of these free trading signals that I’m getting from the chart. And the line we see below is called counter trend line because it’s against the trend. We draw it against the trend. And this is how usually people do it. I do it against the trend and I look for these highs to draw it just in the opposite direction.
It gives me the great trading signal to get on the market or to buy when the investors or the people that are trading are ready to buy again and they break the line.
Free trading signals are useful when you create them for yourself
I have recorded nearly all of them in my Cryptocurrency Investment Strategy Course and it’s pretty cool because I really don’t spend a lot of time in front of the computer. Just when I have the possibility to draw it, I draw it and then I do nothing, and then I just wait for the price to reach it.
The cool thing here with TradingView is that you have the option to create alert. So, for example, if I’m waiting for the Bitcoin to pass the 10,000, To cross the 10,000 crossing up, I can set it as a value as 10,000. And you will see what options I have – to show pop-up, send email.
So I will get the notification and I will know that the Bitcoin passed the 10,000 and I will get on the computer to buy. Or if I’m at that moment, I know that I want to see the Bitcoin crossing the 9,630 and this is what I had actually as an alert.
And when the price crossed it, I bought immediately and I took some profits. This is a really nice strategy that you can use to trade within the direction of the trend and to get free trading signals from the price itself. We call it price action. I describe this strategy in detail in my Cryptocurrency Investment Strategy Course.
Meta Trader platform
The other way that you can get free Forex trading signals is from the Meta Trader platform. The good thing with this platform is that you can trade automatically with Robots or you can trade manually. I will get to the Robots in a minute. Now, what you see on the chart below are indicators.
All of these indicators give us signals as well.
If you are seeing this for the first time, it might look like rocket science but it’s not guys. It’s very easy. I will select the currency pair and on the left side, you can see how many assets I have the chance to choose from.
If you want to trade on the Meta Trader platform, you need to select a trading broker. Make sure to select a reliable trading broker. And on our website at EA Forex Academy, we added the Brokers page recently which will be extremely helpful for you if you’re choosing a broker for the first time.
You can learn what is important when you choose a broker and we have listed some of the trusted brokers that we use.
We don’t recommend any of them, we just want to make the choice of the beginner traders easier. And we have ratings as well as reviews for each one in detail and you can choose easier which broker to use.
Choosing a Forex broker is essential
There are more tips when choosing a Forex broker. Make sure to check out the page, it’s on the main bar on our website. All of these brokers offer the Meta Trader trading platform. The good thing about it is that it is a free trading platform and it’s the most common one. And guess what? It’s easy to use.
After you select the broker and you install the Meta Trader platform, you have the option to select which symbols you want to trade. Let’s say you want to trade EURUSD. Right-click over it and go to Chart Window.
By default, you will see some indicators over the chart.
I would suggest you remove those because they are just a template from the broker. I will show you some free trading signals using indicators and you will see that it’s really nothing complicated. Below you can see the candlesticks that I showed in TradingView.
I will switch to M15, which means that each candlestick will be 15 minute period and I will insert some indicators. I will go to trend indicators because as I said, following the trend is very important and I will go to Moving Average.
The different Moving Average methods
There are different Moving Average methods – there is the Exponential, Simple, Smoothed, Weighted. I would stick to Exponential, period of 9 is just fine, and I will click on OK.
What happens is that a line appears over the chart. And Moving Average means that it averages the price of a recent number of bars. In this case, I have selected to use a period of 9. There are dozens of strategies with a single Moving Average indicator and you can use many of these strategies to get free Forex trading signals for yourself.
For example, every time when a candlestick opens or starts above the Moving Average, you buy. If the price is below the Moving Average and it crosses the Moving Average you can buy. If it crosses down again, you can sell it and you will benefit this difference or this distance.
In this case, it’s from 117.06 until 117.36 which is 30 pips of a distance. After that, again the price goes up. After we have a candlestick opening above the Moving Average we can buy, and then when it goes down we can sell. This is quite interesting and quite an easy strategy but it works just when the price is going in one direction.
Difference between fast and slow Moving Average
It really doesn’t work when we are in a sideways market. Only when the price is just going up and down.
In order to avoid wrong trading signals, what you can add is another Moving Average. I will use again Exponential Moving Average but this time I will use period of 21. Let’s change the color to purple so we know which one is the slow Moving Average and we know which one is the fast Moving Average.
Why do we call them fast and slow? Simply, because when we have a smaller period, the Moving Average changes faster together with the price. So if the price changes, the Moving Average changes as well downwards. And it takes a little bit longer for the slower Moving Average to change. However, when these 2 lines cross we have one of the best trading signals.
If you are in front of the computer at this time, they will be live trading signals and you will be able to execute them right away. So the signal to buy would be when the fast Moving Average or the 9 Moving Average crosses the 21 Moving Average upwards.
Free trading signals: no need to pay for the same thing from someone
On the next bar opening, you can take the trade. They cross again much higher and that would bring you a nice profit of between 116.08 until 116.94, nearly 900 pips. Or if I have to be precise, 86 if I’m not wrong with my calculations. Sorry if I am.
I just want to show you the strategy. We have a new cross and another great move upwards and they still didn’t cross. At the current moment, they didn’t touch each other. So having just 2 Moving Averages over the chart will give you great free trading signals.
And whenever you see the cross, you can take advantage of it. However, it is a great idea if you combine it with the bigger trend. What that means is that if you are trading on a smaller timeframe, and I want to go back to the same examples that I showed before, the red Moving Average crosses the purple one downwards.
But what if you sit in front of the computer at that moment and they cross downwards? Are you going to sell? Yes, because they cross on the opposite direction so you will need to sell. But the price goes up and you will be losing.
Use the daily chart to know what the trend is
You will close the trade when they cross again so we will have this loss here which is not a huge one I believe. It’s about 10 to 15 pips. So it’s from 95 up to 06, yes, about 11 pips. But it’s a loss. What I said already is that we want to trade with the bigger trend because the market has a tendency to trend.
And if I switch to daily chart, you will see that at the current moment we are in an uptrend.
The Moving Averages crossed for EURUSD a while ago. It was on the 19th of May, 2020 and since this time the price goes up. And the price went sideways for a little bit at the beginning of this month and in the end of June.
But now it’s going upwards again and the EUR is much stronger than the USD at the moment, but we are in an uptrend. So always check what is the trend on the daily chart. And you can use again the Moving Averages to see if you have to buy or if you have to sell on the smaller timeframes like M15.
And then use what I show you to buy when the Moving Averages cross. If you sit at that moment and you see the Moving Averages cross downwards, are you going to sell? No, because the major trend on daily shows that the price is going up.
The Expert Advisors will give you free daily Forex trading signals
The red Moving Average is above the purple one. Or the fast Moving Average is above the slow Moving Average. And, of course, you will miss many of these trading signals because you cannot stay in front of the computer all the time.
But guess what? There are Expert Advisors. These are Trading Robots that trade all of these trading signals automatically. Meaning that we don’t need to stay in front of the computer to follow the trend or to follow when the Moving Averages will cross. And that’s really a simple strategy, a very nice one by the way.
You can follow it manually. But obviously, it’s much better if you can do it with Expert Advisors. It’s really not hard. At EA Forex Academy, we’re specialized in Expert Advisors. We teach the traders how to use Expert Advisors or Trading Robots even if they don’t have any previous trading experience.
So the Expert Advisors, in simple words, are programs or codes that we attach over the chart. I have one here for EURJPY which is another very simple strategy that I will demonstrate in a second. But when the signals happen, this Robot that is attached over the chart will execute the trade and I don’t do anything.
Learn how we create Robots on our website at the software section
I’m just watching it trading. Now, let me show you what is the strategy that I have with this Trading Robot for EURJPY. I have 2 indicators – one is the Accelerator Oscillator and the other one is the ATR or Average True Range.
Probably you are wondering where I get these strategies.
I don’t come up with them by looking at the chart and imagining what will happen or going back over the chart to see what value of the indicators would bring me profit and when I should buy in the future. No. I use software for that. We are in the 21st century and these things are not done by humans anymore.
For example, on our website we have 2 software that we use – one is EA Studio, the other one is Forex Strategy Builder. You can find both of them in the software section.
And there are free courses for each one which will teach you how to use them.
It’s really easy and if you follow the steps you will be able to create strategies and trading signals by yourself as well. Now, the strategy that I have created with EA Studio software uses this Awesome Oscillator as I’ve said, and Average True Range. In other words, the profits that this strategy did.
Every trading strategy will lose sometime and you will always get wrong trading signals. That is normal!
As well, on the indicator chart, I have a great overview of where all trades happened with the strategy, where was the buy trading signal, and where the target was reached. Then what I have, sell signal, the target was reached.
And, of course, with every trading strategy, there are losses but it is important to have more profits than losses at the end of the day. And to have a good trading signal statistic, you need such software and you need Expert Advisors. Everything else is just a promise from websites that are selling Forex trading signals. Just a promise.
So now let’s see what are the rules for this trading strategy if you want to use it as free Forex trading signals for yourself. It uses the Awesome Oscillator which is an indicator without any levels, it has just 0 line. And the rule is – Awesome Oscillator crosses the level line downwards.
So the bars, when they cross the 0 line downwards we have the buy signal. But in this case, previously we have the cross upwards so it is a sell trading signal. And previously I will show you a buy signal, here it is. It crosses downwards and it’s a buy signal.
The Stop Loss and Take Profit
And we have another one, the Awesome Oscillator crosses downwards and again we have a buy signal. Now, when do we take the profit or when do we close the trade? We do it when the Average True Range indicator crosses the level line downward.
The level line is 0.0763 and the period is 50. How do I know these values? I know it from the software. And the other times when we’re taking the profit is when the strategy reaches its Stop Loss and it’s Take Profit.
That means that we put levels where we want to close the trade if the exit condition is not met until that moment. Stop Loss of 67 and Take Profit of 91. I go back now to the Meta Trader and I will show you some examples.
We have too many signals because the Accelerator Oscillator crosses the 0 line many times. When it crosses downwards, we buy. When it crosses upwards, we sell. And we need to put the Stop Loss and the Take Profit which is very easy.
The backtest is very important
If you right-click over the chart and you go to trading, and you select new order, you put the type of order you want to have, you select the price or it could be at the moment buy and sell, and you have the option to put the Stop Loss and the Take Profit. All of that, one more time, we don’t do it manually.
We do it with the Expert Advisors. And they are scanning the market for signals. So anytime when there is a signal, the Expert Advisor will open the trade. And the cool thing with the Expert Advisors or the Robots is that we have the backtest.
With simple words, we can see how the free trading signals did in the past before even using them.
I right-click and go to Expert Advisors, I go to Strategy Tester and let’s test it from the beginning of this year until today.
I will click on Start and let’s see what will be the graph. This is a profitable strategy. I can go even for a longer period, let’s go from the beginning of 2019. I will click on Start and I will go to the graph and you can see it below.
It had many trades. This is 349 trades or 349 above 350 trading signals that formed a positive equity line. Or the overall performance of this strategy is profitable. Even if I go back to 2017, I click on Start, I will go to the graph and it is still going upwards.
Take time to look at the software we use to get trading signals and EAs
It did more than $3,000 of a profit if I’m trading just with 0.1 lot. So all of these strategies that I demonstrated, you can use for yourself to get free Forex trading signals. And especially when you use Expert Advisors and Robots, these are the real live trading signals because you are never late.
When the signal is there, the Expert Advisor will open immediately the trade. When the exit is there, it will close the trade. You will never be late and you don’t have to worry about anything. So give it a try, see how it works. And I would suggest you check the software that we use on the website.
If you are a complete beginner, it’s a good idea to check EA Studio. It’s a little bit easier. I have a free course at the beginning explaining how to use it. There are 15 days free trial which you can use and during this time you will be able to generate many strategies and to test them and to trade with them as long as you want. There is no engagement. This is really the top product on the market.
Do not hesitate to try getting your own trading signals
The easiest way you can go is to use the EA studio. It’s not our software from Forex Academy, it was developed by the Forex Software Company. But we have integrated it on the website so it will be easier for all of my colleagues and traders to use it and to improve constantly their trading.
Thank you guys for reading this lecture about how to create free trading signals for yourself. If you have any questions drop them in the comments below or in our trading Forum.