Please do give us feedback and select the features that you would need the most!
If something you want is not listed, or you would like some change in existing functionality, please leave a comment on this page or just send us an e-mail.
HOW TO VOTE:
Many thanks in advance!
Loading ...
As we posted already, we are working on the Forex simulator software. We would like to ask your opinion – what is the most important to you? Please vote for the features – see the poll below. Leave a comment if your wish is not listed in the poll. Thanks in advance!
In our opinion, Forex trading simulator must be very simple to use. However, it must also simulate the real Forex market with absolute accuracy.
To achieve that, we designed the simulator to only use real tradeable historical tick-by-tick data. No interpolations. Another important factor is high productivity. The time difference between ticks during simulation must 100% match that on the real market. Our software works fast so the tick feed accuracy is 1 millisecond.
The simulator works in Windows as a stand-alone application. The GUI is intuitive and self-explanatory.
History tab has a trade register as well as the exchange log with trading server.
Please help us to make the simulator as good as possible! Select 3 features that are the most important for you. If we forgot some cool feature – please leave a comment on this page.
Loading ...Many thanks to all who gave their vote or left a comment!
Quick link: Download Smart Forex Tester
You are probably aware of the sharp drop in the EURUSD on October, 21. Following the ECB announcement, the Euro fell over 2% against the Dollar.
It happened so that on that day we were testing the latest version of Smart Forex Tester. This upcoming release of our software will support forward testing – i.e. test the automated trading strategies on live data feed. For that, we have developed a special Expert Advisor that sends tick data from Metatrader.
So, we were running the stability test. We were using our automated trading strategy (comes bundled with with Smart Forex Tester). We left the tester running on its own. When we checked it the next day, we were stunned. Not by the fact that the tester was still up and running (this was expected).
What came as a surprise was that our automated strategy absolutely crashed it! It did 27 trades, out of which 60% were winners. And it raked 132 pips profit!
This test convinced us again that automated trading can be made profitable. We understand, that for this simple strategy that we were using, we had a bit of luck. The reason being that this strategy doesn’t yet have a trend following algorithm. We are only developing it.
But still – as we have written on many occasions – we see not a single reason not to use automated trading. E.g. ckeck our post comparing Smart Forex Tester with manual Forex trading simulator.
Our line of reasoning is simple. First, to be successful, a Forex trader must have a clearly formalized strategy. Second, this strategy has to be strictly followed. No room for emotions. Now, if we have done the former – guess who will be more successful in the latter – a person or a computer? The answer is obvious.
If you are interested – stay tuned! Download Smart Forex Tester and wait for the announcement of the latest release.
Stop loss orders are essential part of leveraged Forex trading, where the risk of margin call is significant. Manual trading without stops is of course possible, but it requires constant monitoring. For automated trading, stop loss orders are evidently a must.
Here we will discuss some ideas how stop loss orders can be optimized in an automated Forex trading algorithm. We will suggest market adaptation of the stop loss orders position based on our pivot point detection algorithm.
As the base for our discussion, we will use our EURUSD Asian sessions testing example for our simple Forex Day Trading Strategy. You can download the Smart Forex Tester and repeat this test yourself.
Our trading algorithm sets stop loss orders the next tick after positions opening, and then moves these stops in a trailing manner, securing the profit.
The screenshot below shows the very beginning of the test for the April, 24, 2105. In this baseline testing example, take profit value was set to 8 pips. Also stop loss orders were placed at a 8 pips distance from the trade, and were trailing market in the same increments.
The first position opened was a short. We see that this sell order was closed profitably (leftmost green line). Few ticks after, the algorithm placed another sell order, which was a loser (leftmost right line). The stop loss oder was triggered almost immediately as the market continued higher.
The question is whether we would be better off setting the stop threshold looser? At least we could have the first position stay open longer, as we see that eventually market peaked and went down. And then we wouldn’t have the second loser trade at all.
On the other hand, with tighter stop, we had losses on the second trade, but then a new short position was opened very soon. And it turned out a success. You can see the stop loss order was trailed 5 times before it was triggered. The position yielded about 30 pips of profit.
Let’s see the test results for the looser stops.
Looser stops might be justified for trades with low leverage or without it. To simulate it, we increased the threshold for triggering stop loss orders. In the example above, we set it to 20 pips instead of 8.
A very simple question – how to choose Intraday Forex trading strategies?
It is evident, that of multitude of intraday trading strategies, there always should be the one that suites current markets the best. But how do we define the current state of the market to pick this best strategy?
E.g. a successful trader and writer Raghee Horner, when asked of what is going on now in market X, always replies “on which timeframe?”. In her best-selling book (Forex on Five Hours a Week: How to Make Money Trading on Your Own Time), she uses her own market phase indicator – The Wave – to define what strategy to use. Swing or breakout etc. See our review here.
However, this approach is mostly applicable to longer timeframes – the Wave uses 39 periods.
For day trading, we don’t have enough time to wait. By the time the most intensive trading time is over we can only have 1 bar on H4 graph or 5 bars in H1 – to say nothing of the Wave…
So we need other methods to make our decisions.
Our idea is simple. If we don’t know what the current market state is (is this ever possible?) the logical conclusion is that we don’t know what strategy is the best. All should be equal.
So it follows that it makes sense to run all of them – at the same time!
While flawlessly logical, the end result sound silly, dosn’t it?
However, for automated intraday trading this makes full sense.
Due to fast order fill strategies don’t exclude each other.
TO BE CONTINUED