How to trade forex?

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Viewing 9 posts - 1 through 9 (of 9 total)
  • 11/28/2018 at 8:34 AM #85886
    jebus89

    So ive never rly managed to make a really good system for forex. I find that the “moves” are happening so incredibly fast, and the reversals even faster. In the stock indicies i find it 10x easier to “measure” momentum and capture it. In forex the main momentum move can happen in 5-30 minutes, the rest is just shit. Its very hard trying to “predict” a move like that because it seems to happen so “randomly” aka me not being able to capture any good signals here!

    What kinds of systems and what kinds of indicators do u guys like to use to trade the forex markets? Breakout, mean reverting, rsi, macd, whatever u got.. let me know! 🙂

    11/28/2018 at 1:19 PM #85915
    Finning

    Hi Jebus. Along the same lines as what you’re asking for FX-for indexes-i read that you don’t really like MAs or MACDs. What indicators-not strategies- do you tend to look at for indexes? Not your secrets just some ideas.

    11/28/2018 at 4:24 PM #85925
    Nicolas

    Forex pairs are not real instrument IMO. They are just division of 2 currencies. They are more speculation here than anywhere else, that’s why forex is more unpredictable than stocks or indices, at least on a “short term point of view”.

    jebus89 wrote:

    In the stock indicies i find it 10x easier to “measure” momentum and capture it.

    Be reassured that everyone has the same opinion 🙂

    11/28/2018 at 9:27 PM #85946
    jebus89

    @Finning: Im not fan of moving averages and macd as triggers, but as filters i find them useful. Rsi, bollinger bands and price rate of change are nice. Also fan of supertrend indicator and custom versions of it, mainly found on this forum. Ive tried alot of different things with some of the custom indicators from the forum, i think theres alot of gold in some of those! Worth checking out for sure.


    @Nicolas     yes i share ur opinions on the topic.

    11/28/2018 at 10:08 PM #85950
    Vonasi

    I’m of the same opinion regarding Forex but despite this I still spent the last couple of days trying to crack that Forex casino nut!

    The best I came up with resulted in this on the EURUSD daily:

    Screenshot_5-3

    It is mainly based on a version of DEMA and RSI but I fear that it is too curve fitted as these graphs of the results with different DEMA periods seem to confirm.

    Screenshot_6-6

    Oh well, I’ll put it on demo forward test and see how long it takes to drain my demo account…

    Note to self: Stop wasting time on Forex!

    11/28/2018 at 10:27 PM #85954
    Finning

    Hi Jebus, thanks for your perspective on this. Is interesting to see what other people are using. I’m familiar with all you have mentioned, and I might revisit some strategies with these ideas. Thanks for putting your thoughts out there.

    11/29/2018 at 9:03 PM #86045
    jebus89

    @Vonasi that dosnt look too shabby at least 🙂 This is the best ive ever made for forex, and it has done pretty well so far in OOS, but its so little gain pr trade etc.. not a very stable looking algo (spread included in photo). Trying to work on it but yea. The vertical line = time when put in demo.

    Edit: Its created the same way i usually do it, i optimize on roughly 50% of the data, to try to avoid curvefitting. u can clearly see at around the 50% mark where the optimization stops lol.

    11/29/2018 at 9:19 PM #86047
    Vonasi

    jebus89 – Looks pretty good and OOS seems to working well especially considering how 2018 OOS has been for strategies that are based on indices. I guess forex has not been impacted in the same way in 2018 as it is just random all the time!

    Your strategy seems at a glance to have performed better in a falling market than in a rising market. I have noticed this with my own testing that forex seems to be easier to short than to go long on. Plus you benefit from being paid in overnight fees to hold over night if you short forex. Unless it would completely break the strategy I would be tempted if I was you to separate it in to two strategies and test them side by side.

    I think a lot of people are drawn to forex because it is cheaper to trade with lower margin and lower minimum stake sizes but I definitely think it is a much tougher nut to crack and for less gain – but tough does not mean impossible and a gain is a gain.

    Without giving the code away can you give any clues as to what indicators and what style of trading your strategy is based on?

    12/06/2018 at 8:08 PM #86465
    jebus89

    So this code is a mean reversion, using 2 filters and repulse as the trigger i belive. The avg win after spread is very low like 4-5 pips i think, im not infront of a computer right now. Its like 3000 trades or something, its crazy lol. I need to revisit that code tho.. maybe theres something there. im not running it live or in demo atm.

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