Tuesday, September 1, 2015

Big Data For Forex Traders

Big data is here for forex traders. The main question is how to curate, process and visualize the data so that the average person or average trader can take advantage of the large amount of information available, as opposed to getting bogged down in complex algorithms, systems, and dashboard displays.

Converting large amounts of data into a fairly simple trading system interface that can benefit forex traders to trade profitably would be the goal. You must limit the amount of complexity and have simple user interfaces to "keep it simple" and meaningful. You need the right amount and right kind of data to avoid data overload and creating a bloated, complicated user interface with a lot of u-necessary features.

Real time data is available to forex traders via price feeds and real time data providers. Taking the streaming real time data from 28 currency pairs, which represents trillions of dollars of money flow, and converting thousands of calculations per minute into a simple dashboard interface for use by forex traders is currently taking place.

Combining certain data sets with simpler algorithms, then combining that system with some human intervention can provide forex traders with huge advantages and lead them to successful forex trading, as opposed to complicated system which will eventually bog down under their own weight. 

Here is an example of a server based forex trading system that uses large quantities of data but converts that data into an effective tool with a simple interface. This is called The Forex Heatmap®. The heatmap converts large quantities of data into a simple interface and dashboard display to create profitable forex trade entries. This tool is highly intuitive, it crunches the numbers down to a simple visual map that even beginner traders can understand and enter forex trades with.

AUD Weakness The Forex Heatmap

GBP/JPY Sell Signal The Forex Heatmap

In the top image The Forex Heatmap® crunches the data into a sell signal for the AUD/JPY based on AUD (Australian Dollar) weakness. In the second image the heatmap crunches the data into a sell signal for the GBP/JPY based on Japanese Yen (JPY) strength and British Pound (GBP) weakness. It works for 8 currencies and 28 pairs and runs continuously though out the day crunching the large amounts of data into simple forex trading signals. This simple trading system works for eight different currencies and 28 currency pairs. The display/interface is quite simple but there are a  large number of calculations behind the simplicity. 

More and more data is not the answer. A moderate amount of forex data combined with some human intervention, like knowing the direction of the trend on the pair traded, times of volatile news drivers, and best times of day to trade the forex, will create more reliable big data systems. Bigger algorithms or a bigger, more complicated system does not always make the trading system better. Feature creep can destroy a good system.

A big data user interface needs to be in a stable environment with high quality web architecture for reliability. Server based technology or html5 coding for structure would be a superior system, combined with with fully redundant backup systems.Too many forex traders try to "get by" with old technology like meta trader to build a low quality user interface. These types of systems are inadequate from several standpoints, i.e., programming, latency, instability, software updates, etc.

The promise of using big data for business intelligence and data analytics can be applied to forex data to ensure successful forex trading. Innovative tools like The Forex Heatmap® are paving the way by providing end users with the right kind of data interface to succeed at forex trading. 

Sunday, May 31, 2015

Six Ways To Trade The EUR/USD

Introduction - Most forex traders trade the EUR/USD, but most of them fail because they are using technical indicators to guide their trade entries, and these indicators are completely ineffective. This article will show you 6 ways to trade the EUR/USD, without using any technical indicators. Here are 4 ways to trade the EUR/USD to get us started. 

Buying The EUR/USD - When buying the EUR/USD one way to buy it is when the EUR is strengthening, which means the EUR/USD, EUR/JPY, EUR/CAD, EUR/AUD, etc. are all rising. The other way to buy the EUR/USD is when the USD is falling, this would mean  the EUR/USD is rising, the USD/CHF is falling the GBP/USD is rising, the USD/JPY is falling, etc.

When buying the EUR/USD another way to buy it is when the USD is weakening, which means the EUR/USD, GBP/USD and AUD/USD would be rising and the USD/CHF would be falling, etc.

Selling the EUR/USDThe other way to sell the EUR/USD is when the USD is rising, this would mean the EUR/USD is falling, the USD/CHF is rising the GBP/USD is falling, the USD/JPY is rising, etc. In this case we are using common sense and other currency pairs to verify the USD strength. Now check the image/info graphic below. Try to visualize all 4 of the above situations.

Similar rules apply when selling the EUR/USD. When selling the EUR/USD one way to sell it is when the EUR is weakening , which means the EUR/USD, EUR/JPY, EUR/CAD, EUR/AUD etc. are all falling.

Trade The EUR/USD

Two More Ways to Trade the EUR/USDAnother way to buy the EUR/USD is if the EUR is strong and the USD is weak at the same time. When this happens you can get highly profitable trades because in this situation the EUR/USD will move up strongly for the day in forex trading. Price movements can be strong and risk very low when this happens. You can also sell the EUR/USD if the EUR is weak and the USD is strong simultaneously, Once again this is a highly profitable situation for a forex trader.

How Often Do These Trades Occur?In the main forex session this happens several times per week, sometimes 5 days a week, when one currency is strong and another currency is weak, presenting a profitable trade opportunity. This way of trading has been converted to a real time trading tool called The Forex Heatmap. It may not always be the EUR and USD giving off consistent strength or weakness it may be other currencies. Fore example if the EUR is weak and the NZD is strong you would consider selling the EUR/NZD, but the logic is the same.

EUR Weakness Forex Heatmap

Check the above image for an example of EUR weakness on The Forex Heatmap, the EUR is weak and all of the EUR pairs dropped considerably.

A Simpler Way to Trade The EUR/USDUsing these rules and visual indicators to buy or sell the EUR/USD will immediately improve your trading. Visual indicators like the heatmap are simple and logical. Technical indicators are complicated and measure the wrong parameters. Alter you get used to trading the EUR/USD this way you can use the same techniques and tools to trade 28 pairs. At that point your forex tradng will open up to all of the possibilities the forex market has to offer, and your pip totals will increase tremendously.

ConclusionsForex traders need to move away from ineffective technical indicators and move towards logical forex trading. You can apply the principles used in this article to 28 pairs, then combine it with other trading rules to build a fantastic rules based trading system that is accesibile to all forex traders.

Monday, May 25, 2015

Online Trading Academy Alternative – Forexearlywarning Is Better For Your Forex Trading Business

Summary - Forexearlywarning is the leading alternative to the Online Trading Academy for educating forex traders. See why Forexearlywarning is strongly preferred by forex traders to provide complete forex education and trading system for 1-3% of the cost of Online Trading Academy, and our trading system is much more effective at producing pips for traders.

Reviews Of Online Trading Academy - Based on the online review sites like Yelp, Investimonials, Disqus, and Kiplinger, here are the reviews of the Online Trading Academy (OTA) users who attended their seminars and paid for their courses. After the reviews we compare the OTA courses and costs to Forexearlywarning.

Online Trading Academy Cost - Course attendees said that OTA will pressure you to spend increasingly more money, up to $50,000 to attend all of their courses and to join their elite club. Alternatively you can spend $12,500 upfront plus $625 per month. They will offer to finance your courses at 18% after 6 months. OTA will be aggressive and want you to spend more ane more money.  

Some attendees stated that the pricing is insane, and some of the information on their website information sounds like OTA is operating as an introducing broker because clients get rebates on their trades.

Forexearlywarning Cost - Forexearlywarning offers several online courses on our website, all of them are free, We also offer weekly webinars two times per week, these webinars are also free and these webinars are recorded so you can listen at any time. We also support our clients with free email support. As far as cost there is no comparison because the majority of the Forexearlywarning educational materials are free.

Online Trading Academy UpsellingCourse attendees report that the power trading workshop is not a workshop it is an up sell pitch, you get heavy sales pressure to sign up for ever more "advanced" courses that are way too expensive. The introductory course has a $5,000 up sell, which is for basic instruction, but you need to pay up to $50,000 to "graduate". Attendees also report that the constant up selling is annoying.

Forexearlywarning Has No Upselling - The Forexearlywarning business model is flat pricing with no up selling. Most or nearly all of our educational resources are free. We also have a $19.95 per month subscription fee for access to our daily trading plans, this fee is optional. Our trading plans are based on the trends of the forex market, and we use multiple time frame analysis to prepare the plans. You also get access to The Forex Heatmap®, a valuable tool for guiding your trade entries. Remember you pay $19.95 per month, that is all, no up selling whatsoever, including live trading signals for 28 pairs.

Online Trading Academy Course Content - The paid attendees said that OTA teaches technical analysis indicators, support and resistance, candlesticks, correlations between markets, as well as risk management. They also taught broad topics like Broad topics like: Globalization, Understand how commodity/Forex market relationships offer long term Forex traders a potential competitive advantage.

The attendees also said that they didn’t learn anything new, or all of this is on youtube. They also said that the three day seminar was really a the thee day sales pitch. They also said that the $10,000 spent for XLT turned out to be a waste of time,   and that the XLT course has no value. Their website indicates a $5,000 course where they teach technical analysis but you must take two prerequisite courses first before you can take this class. The online course descriptions are somewhat vague and general.

Forexearlywarning Online Course Content - At Forexearlywarning we teach market analysis for 28 pairs using multiple time frame analysis, we also teach traders how to validate their entry points with The Forex Heatmap®. We teach money management techniques. We show traders how to demo trade and take them to full scale trading via micro lot trading. Our trading system can be converted to a series of steps that anyone can follow.  All of this information is free.  Forexearlywarning has a free course for beginners, a list of 28 trading tips, an intermediate course of 35 forex lessons which describes all of the details of our trading system, We also have courses in currency options and binary options. All of our courses are free.

At Forexearlywarning we do not teach technical analysis because the technical indicators forex traders use do not work. Various studies referenced in the Kiplinger article state that technical indicators and technical analysis does not work, i.e., New Zealand study of 5000 different combinations of indicators, other studies indicate random results with indicators.

Online Trading Academy Approach - The people who attended their classes said OTA knows the psychology of novice traders and exploit it, the instructors have huge egos, the instructors only have a basic knowledge of charting, the instructors are actually salespeople, they say that OTA is a carefully crafted scam. You can ask the instructors general questions about the economy and they do not have any answers. OTA doesn’t really give you any information anything until they have your money. Very high pressure.

Forexearlywarning Approach - The approach used by Forexearlywarning is pretty simple. Just visit our website and start reading our lessons and courses. You can click around the website our use our sitemap for navigation. Locate a course you like and start reading and studying. If you have any questions about something you read you can just email us. All of this will cost you nothing. Then when you think you are ready you can set up our trend indicators and learn to set up price alerts, which are also free. Then go ahead and subscribe for $19.95 per month and you might be able to start demo trading the first day. When you start to see positive pips and are managing your money right just start with micro lots and move forward into real money trading. You can attend our weekly webinars for ongoing market review, week after week. This is included in the $19.95 per month.

Conclusions - Learning about the Forexearlywarning trading system will not cost you anything and the system is effective at making pips. The OTA system will cost you thousands of dollars to get to the training courses, possibly as high as $50,000, and some of the course attendees say it is a waste of time and money. If you run your forex trading as a business, the goals are to keep costs low and to make profitable trades. Forexearlywarning is a much better choice compared to Online Trading Academy for overall education quality and accessibility, along with trading profits.

Tuesday, March 20, 2012

Multiple Timeframe Analysis of the Spot Forex

The article about multiple time frame analysis has been moved to Forexearlywarning.com. Click on the link below to get the article. The article will show you how to set up your indicators and drill down the charts across different time frames and individual currency groups.


Thursday, March 8, 2012

Parallel and Inverse Analysis of the Spot Forex

This article has been moved to Forexearlywarning.com. Click on this link below to get the article. This article will show you how to use parallel and inverse analysis for market analysis and also trade entries.

Monday, February 27, 2012