Sunday, October 19, 2008

Forex Trading Indicator - MACD Dots - Forex Signals

Hello dear Forex trader. I want to take a few minutes of your time to explain a few things about the dots that may or may not be intuitive.

They are:

• What is MACD and how is it developed?

• Why I think forex MACD is the best forex indicator around

• How the MACD dots were developed

• What other indictors should be considered

• How to trade the MACD dots as a forex system I think very few of us can actually explain how MACD is developed. It is of utmost importance to understand your forex indicator. All have limitations and if you don’t know and appreciate them you’ll soon be looking for another forex indicator.

In figure 1 we begin to develop the MACD. It consists of a 12 period EMA (olive line) and a 26 EMA (purple line). The difference between those 2 lines is the “Fast Line” (yellow line). Now we have an oscillator. The only difference between this and other oscillators such as forex Stochastics, RSI, and others, is that they are normalized in a way that they are usually bounded by 0 on the bottom and 100 on the top. They “oscillate” between those two extremes. There are limitations to that type of oscillator which we will later. But, MACD isn’t done yet.

The “Fast Line” (yellow line) is smoothed again by a 9 period EMA to create a “Slow Line” (blue EMA). The difference between the Fast Line and the Slow Line is often plotted as a histogram (Green Plot). Smoothing the Fast Line and creating an additional moving average is why MACD is often referred to as an “oscillator of an oscillator”. Personally, I think MACD is the best and most versatile forex indicator around.

By observing MACD you can tell 4 things about price action:

• The forex trend of price action. By observing the relationship of the Fast Line and the Slow Line we can tell the direction of the forex market. If the Fast Line crosses above the Slow Line the trend is up. This is the premise of a moving average crossover forex system.

• Divergent situations. By comparing neighboring peaks and valleys of the histogram we can identify areas of regular and hidden divergence. If you do not understand divergence read this.

• Momentum. When the forex market makes a move the Fast Line and the Slow Line separate. The difference can be seen on the histogram. When this movement subsides the lines come back together and the histogram approaches zero. We can observe the histogram rolling over, or rolling up, towards zero. This is an indication that momentum is drying up.

• forex Market noise. If the market is going sideways there will be no separation between the Fast Line and the Slow Line. The forex histogram will necessarily be very close to 0. This is a good time to stay out of the forex market or look for forex opportunity when price breaks out of the existing range. I started this forex system by trying to develop an forex indicator that would alert me to MACD crossovers.

This is the Fast Line crossing the Slow Line or vice versa. I found that, in many cases, the move was over or well under way when the crossover occurred. I wanted a way to anticipate the crossover. When momentum stalls, the histogram ceases to continue in a given direction. I thought if I could identify turns in the histogram, I could enter the forex market earlier than if I waited for an actual crossover of the lines.

In figure 3 I colored the histogram green when rising and red when falling. For me, this makes it more visually apparent which way momentum might be heading. I included red arrows to show where momentum has peaked. The blue arrows show that downward pressure is slowing and that a reversal is possible. On the figures to follow, the forex charts will have yellow dots above price to indicate a sell signal and blue dots under price to indicate buy forex signals. They will approximately agree with the red and blue arrows I used in Figure 3.

There are only two problems left to solve:

• What if the forex market isn’t moving?

• How do I reduce false forex signals?

Figure 4

Figure 4 shows how both of these problems are addressed in the code. In the first third of the forex chart and the last third of the chart no forex signals are given (no yellow or blue dots). Sideways forex market movement is filtered out by requiring that the forex MACD histogram be above or below a certain height before any further calculations are permitted. The horizontal lines show the value above or below that is necessary to register a forex signal. The lower vertical line shows the first occurrence of the histogram beginning to fall. The upper vertical line shows the price at which the actual sell forex signal was generated. The code records the height of the histogram.

When the value of the histogram begins to fall it must exceed a preset differential before a signal is given. This prevents a forex signal from occurring too early or a spurious bar from generating a forex signal. Figure 5 represents a typical chart setup for me.

Figure 5

The yellow dots are forex sell signals, the blue ones are forex buy signals. The blue moving average is the 15 min 62 period EMA (this is a 15 min forex chart) and the white dashed line is the 62 period EMA from a 1 hour forex chart. I use a time of 4 times higher than the chart I am looking at to get a sense of the overall forex trend. It is very important to know if you are forex trading with or against the trend. Money can be made in either direction, but when going with the trend the probability of success is greatly improved. The bottom forex indicator is an oscillator. I use one called RSX but any oscillator that is capable of giving overbought or oversold indications will work well.

If a buy forex signal is generated concurrent with an oversold condition, or a sell forex signal is concurrent with an overbought condition, the odds are again improved. One last discretionary pattern that I suggest using are candle patterns. As price nears an extreme, the candles should become smaller and reversal candles should begin to show up. These are doji, hanging men, hammers, inverted hammers, shooting stars, and spinning tops. At this point it’s not much of a mystery how these dots can be traded as a forex system. There are additional indications that can be used to increase the odds of success.

These are:

• forex Trading concurrently with an overbought or oversold condition

• forex Trading with the prevailing trend

• Looking for reversal type candle forex patterns

• Looking for obvious levels of support and resistance where a reversal is likely to occur

• Looking for divergence and hidden divergence. There is an example of this directly in the middle of figure 5.

• Waiting for the forex signal candle (the one with the dot) to be exceeded prior to taking a forex trade. Sometimes this can keep you out of a lousy trade. If you are only looking for a quick forex profit, waiting may not be prudent since several points could be a large percentage of the gain you are looking for. But, if you are looking for larger gains waiting to see that the forex trend has indeed reversed can often be helpful.

Forex Signals - Pac_Man - Forex Trading System EA

Test Report

Update: added volumeMA in place of JMA option due to zero divide error. And blocked RSX random entry forex signal.

Here's a new martingale hybrid spun off of goblin bipolar.
The bulk of the bipolar program is here and untouched.

I changed the entry signal to CCI and Custom jma Volume forex indicator, to filter false forex signals.

Added SuperPacMan lot size progression
The trick to this version is in the equity target, lot sizing, JMA volume, CCI, and Turbo_JVEL
Equity target along with risk% setting will be the main exit forex strategy. When using money management=true Using risk setting and equity setting you can make it exit before the target.
When you increase the risk, the equity target will be hit sooner. Smaller targets are more easily hit. I go for 6-10 pips with the equity target.

If you set the regular target that low you also have to set forex pips low too. Then you get max forex trades opened when ever the forex market sneezes.
The regular targets are there to get hit when there are forex trades in both directions offsetting positive equity.

This alone only works for the first 2 trades. The more forex trades open the closer to the hard target it has to get to reach the equity target

Making the 4th and 5th trade reach all the way to the hard target to close all the forex trades.

Adding the SuperPacMan lot sizing handles this problem in a couple different ways. Play with it to see witch one you like.

The supercell can be used to increase the last trade 250%. This way the equity target can be reached and exit the potential disaster sooner rather than later (or not at all)
Turns out JVEL is a great filter. I increased its settings for better filtration.

CCI is a great trigger as well as a filter for keeping it in the direction of forex market momentom.
JMA Volume filter will make sure it forex trades only when there is sufficient forex market volume.

RSX is set high because when UseconsertiveRSX_Signal=false, the forex signal is simply based on RSX turning up or down, using slope for filter rather than trigger.
Set RSX to 12-17 if using UseconsertiveRSX_Signal=true, using conventional RSI 30/70 rules.

Default settings are good settings. But not the only ones that will work.




The Synergy forex Trading Method was developed by Dean Malone and is an effective Forex trading method developed to simplify trading decisions with high probability forex precision. It combines the forex market forces of Price Action, forex Trend, Momentum and Market Strength to produce higher probability trades. The Synergy forex trading method real-time...the interaction of these forex market forces providing traders the means to make forex trading decisions with greater confidence and less emotional hassle

With Synergy, traders identify and use two important forex trading components in real-time: Price Action and Sentiment.Price Action is forex market movement, such as the oscillation of Open, High, Low and Close prices. Too often, forex traders are mesmerized by trivial price fluctuations and lose sight of the underlying trend of the market. Many traders tend to jump in and out of the forex market instead of staying with the trade as a forex trend develops. Synergy is designed to eliminate price distortions. It reveals periods of forex market strength and trend and periods of consolidation. Sentiment is the intuitive feeling or attitude of traders and forex investors in the forex market. For example, if the sentiment of the market is bullish, then forex traders and investors expect an upward move in the market. Often, sentiment is an indication of optimism or pessimism in the forex market based on recent news announcements or political events. The Synergy forex method uses a hybrid custom forex indicator developed to show positive (buyers) sentiment or negative (sellers) sentiment. Working in unison, Price Action and Sentiment give forex traders a distinct trading advantage. When both are in agreement, a favorable forex trading condition exists. For instance, when price action is showing upward movement with buyers’ sentiment, there is higher probability of a Long position having a favorable outcome. Similarly, when price action has a downward forex movement in conjunction with sellers’ sentiment, a short position has a favorable outcome.

The forex EA was developed by Derk Wehler in Forex-tsd forum to eliminate the stress of gluing to the PC for 24hours looking for trading forex opportunities.

INSTALLATION INSTRUCTIONS: Unzip the file into some temporary folder.Best to shut down your trading forex platform, and then... From there, put the files in these locations: SynergyEA.mq4
> ...\expertsLibDerksUtils.mq4 -> ...\experts\librariesLibOrderReliable.mq4 -> ...\experts\librariesLibDerksUtils.mqh -> ...\experts\includeLibOrderReliable.mqh -> ...\experts\includeSynergyInd.mq4 -> ...\experts\indicatorsHeikenAshi_DM.mq4 -> ...\experts\indicatorsTraders_Dynamic_Index.mq4
> ...\experts\indicatorsChaikin's Volatility_Kalenzo.mq4
> ...\experts\indicators

When you start back up your platform, everything should compile.If you have troubles, you can try compiling manually, by opening your meta4 editor (from your forex platform), and loading and of the .mq4 files listed above and hitting the "Compile" button. You should have no errors or warnings.


The SynergyInd uses mostly the same settings; the ones that differ are self-explanatory, so although this document only covers settings for the forex EA, it should help you set up the SynergyInd as well.


Bool UseMoneyManagement false
Bool UseDualWinMM false
Double TradeSizePercent 3.0
Double ScaleInPercent 25.0
Int MaxScaleIns 0
Bool SplitOrder true
Double Lots 0.2
Double MinLots 0.01
Double MaxLots 100.0

UseMoneyManagement: If enabled, it will calculate how many lots to trade based on TradeSizePercent, but will never trade less than MinLots or more than MaxLots.

The way it calculates how much to trade depends on how much information the EA has about those trades. If you have entered a StopLoss value greater than zero, or if you have enabled UseOppPAC_Trail and OppPACforInitSL, then the forex EA will use an initial stop loss when it places the trade. Given that info, it can calculate worst-case scenario (trade goes against you and hits stop loss) and uses a lot quantity such that, if you lose, your forex account will end up losing TradeSizePercent.

If it has no StopLoss set (zero), then it has to use a different form of calculation (the one many forex EAs use as a standard), but using your margin requirements and your forex account leverage.

In general you will find that if you have a zero StopLoss, you will probably want to use a higher TradeSizePercent, and if you are using a StopLoss (or UseOppPAC_Trail with OppPACforInitSL), then you want a much lower TradeSizePercent; probably 3 or 4 times lower. Ex: No SL, try 5 - 15%, is using SL, try 1 - 5%.
UseDualWinMM: This enables a type of forex money management also known as the binary money management forex system, as pioneered by a 17th century mathematician named d'Alembert. Its full explanation is beyond the scope of this forex manual, but basically this is a system by which the user will always end up “one unit” ahead once the forex EA wins two trades in a row.

This forex system is meant for forex EAs that only enter one trade at a time, so if you set MaxScaleIns to anything but zero, you will get unexpected results, as you likely also shall if you enable UseSplitLots. In addition, the TakeProfit value must be known at the time the trade is placed, so the author does not recommend it’s use in this forex EA, as he feels the forex system works much better utilizing settings incompatible with this option.

TradeSizePercent: Explained above.

ScaleInPercent is the percentage it will use to calculate how many lots to forex trade on any scale-in trade, and is based off the original trade. So if ScaleInPercent is 25.0 and you have an initial trade with a size of 0.8 lots, then each additional trade in the same direction will be placed with 0.2 lots.

MaxScaleIns is the number of additional trades in the same direction that you want the forex EA to take, should it get a continuation forex signal. A continuation signal occurs, for long forex trade, when the TDI green line moves above the top blue Volume line, and is between the values of 50 and 68. For short trades, when the green line is below the lower blue Volume line and the green line’s value falls from 32 to 50.

SplitOrder: When the forex EA gets an entry forex signal and this is set true, it will split the trade into two forex trades for half the lots each. One of them will have no take profit value, and the other will have a take profit depending on the TakeProfit setting. Therefore, one half your trade will exit when it hits take forex profit, and the other half will go until closed by either the PAC trail (assuming you set “UseOppPAC_Trail” to true), or the stop loss / trailing stop function, or the forex ATR exit is enabled, or due to the entry of a trade in the opposite direction.

Lots: The number of lots to use per trade. If SplitOrder is true, then it will open two orders, each at Lots/2. If you are using MoneyManagement, this setting is ignored.

MinLots, MaxLots: These are used with MoneyManagement, and explained in that section.


int UseEntry68_32 0
int ReqRedYellowCombo 0
int UseVolExpanding 0
double UnlessVolWidthGT 0.0
int ReqEntryNearPAC 1
int UseHTF_Trend 0
int UseSmallerOrOpp 0
int UseSmallerExit 0
double DefineSmaller 0.08
int UseClosedInside 0
int UseTDI_ExitDir 0
int UseOppPAC_Trail 1
int OppPACforInitSL 0

UseEntry68_32: For a forex signal to occur, one of the requirements is for the green line to be above 50 for long, or below 50 for short. If this is enabled, the green line is also required to be below 68 to forex signal a long trade, and above 32 to signal a short forex trade.

ReqRedYellowCombo: If enabled, this setting requires the red TDI line to be above the yellow line to forex signal a long trade, or below it to signal a short.

UseVolExpanding: Enabling this setting will require that the blue TDI volume lines be diverging in order to forex signal a trade (with exception of “UnlessVolWidthGT” below).

UnlessVolWidthGT: If UseVolExpanding is enabled, and this value is non-zero, then the “expanding volume” rule will be ignored so long as the width of the blue volume bands is greater than this number. The intention here is that sometimes the volume bands are parallel, or converging just slightly, but still far apart, indicating enough sustained volume for a good forex trade.

ReqEntryNearPAC: If this setting is enabled, an otherwise valid forex trade will not be entered if the entry point is farther from the closest PAC line than the width of the PAC itself. The reasoning is that sometimes there is a large forex breakout (e.g. news announcement) where the candle is very large, but the forex strategy, which always lags somewhat, does not forex signal a trade until after that candle has already moved most of it’s distance, or even until a following candle. Often after this occurrence, the price loses momentum or retraces and then stops out at a loss. So this forex setting as to attempt to stay out of such trades, which are triggered by drastic movement.

UseHTF_Trend: This setting, “Use Higher Time Frame Trend”, if enabled, will only allow a trade to be entered if it is in the same direction as the “trend” of an upper timeframe. If set to zero, it is disabled, otherwise it should be set to the higher timeframe (in minutes); e.g.:

60 Hourly
240 Four Hour
1440 Daily
10080 Weekly
43200 Monthly

UseSmallerOrOpp: If this is enabled, the forex EA will check at the open of each candle, and will exit a trade if the previous Heiken Ashi candle is the opposite color from the one preceding it.

UseSmallerExit: If this is enabled, and UseSmallerOrOpp is enabled, then the forex EA will also close the trade if the previous candle is the same color as the one preceding it, but is much smaller than the previous one. How much smaller? See DefineSmaller.

DefineSmaller : This is the multiplier used to determine what “smaller” is, for use with UseSmallerExit, above.

UseClosedInside: If this is enabled, the forex EA will check at the open of each candle, and will exit a trade if the previous forex Heiken Ashi candle closed within the PAC.

UseTDI_ExitDir: If this is enabled, the EA will check at the open of each candle, and will exit a forex trade based on the previous candle’s TDI values as follows:

For longs, it will exit if the green line is greater than 68, but below the red line and the upper blue line.

For shorts, it will exit if the green line is less than 32, but above the red line and the lower blue line.

UseOppPAC_Trail: When this is enabled, the EA will check at the open of each candle, and will exit a trade if the closing price of the previous (just-closed) candle is outside the opposite side of the PAC. This serves to act as a sort of trailing stop, with the unique feature that it will only act on the closing price of the candle. Therefore the price can spike, beyond the opposite PAC, but if it returns before it closes, the order will not exit.

OppPACforInitSL: If this option is enabled, rather than use the StopLoss setting as the initial stop loss for the trade, the forex EA will use the opposite side of the PAC (plus the spread) as the initial stop loss point.


bool UseATR_Exit false
int ATR_Period 5
double ATR_PipMult 4
int ATR_MinPips 50
int ATR_MaxPips 500

The ATR Exit is a simple forex method of trying to let the forex market’s movement tell the forex EA where to set take profit. It works by setting the take profit value to be a certain multiple of the current ATR value. The ATR is Average True Range, and it is basically just a moving average of the range (high – low) of the last “X” candles. Here, by default, I use an forex ATR period of 5, so “X” is 5 candles. So, to give a simple example, if the average range of the last 5 candles is 12 pips, and your ATR_PipMult is set to 4, it sets the take profit at 48 forex pips.

However, the ATR values is always changing, so if the forex market is moving rapidly in one direction, the current candle is probably larger than the previous one; the ATR value is increasing and so is the number of forex pips required for exit. But then as the candles get smaller again (forex market slows), the required take profit value starts to decrease… but meanwhile, the actual forex trade profit has increased, and when the two meet, it exits the trade.

The ATR rarely (essentially never) captures the maximum amount of forex pips that were available on the move, but it does tend to capture most (perhaps 70-80%) of it, and it keeps you from having to use a set take forex profit value, when you don’t know how much the forex market may move.

The optimal situation for the ATR stop is where the market goes in a positive direction for a while, making some larger candles, but then trails off near the top of the move, flattening out and making smaller candles. The worst situation is there the candles move in a positive direction, making bigger candles, but then changes direction and makes equally large candles coming back down. In these cases, the ATR will not be able to secure those pips; it will stay in the forex trade and the profits will be lost as it retraces.

While you are certainly welcome to adjust the ATR_Period setting, the author has always just left it at 5; you wouldn’t want it much longer because it would not be responsive enough. The important variable to experiment with here is the ATR_PipMult. Depending on forex currency pair and timeframe, you may wish to adjust this anywhere from 2.0 to 40.0, but the author recommends you try a value of 4 to 7 to start with. Basically, the higher this value, the more pips the forex EA will demand from the trade. Please play with this first on a forex demo account, or better yet, run a visual backtest to get a feel for the ATR_PipMult setting.


int StopLoss 0
int TakeProfit 100
int TrailingType 3
int TrailingValue 0
int FirstMove 100
int FirstSL 100
int SecondMove 0
int SecondSL 0
int ThirdMove 0

StopLoss is the initial stop loss assigned to each trade. If zero, no stop loss is used. Please see various other related settings above, especially UseOppPAC_Trail, which will override this forex setting.

TakeProfit is the set amount profit to use for each trade. If zero, no set take profit is used, and exit will instead occur based on one of the following:

The Price Action Channel, if UseOppPAC_Trail enabled

The trailing stop, if TrailingStopType and supporting settings are enabled

The ATR stop, if UseATR_Exit is enabled

The Heiken Ashi candle color, size or closing value, depending on the settings of UseSmallerOrOpp, UseSmallerExit, DefineSmaller and UseClosedInside.

The position of the TDI forex indicator lines, depending on the settings of UseTDI_ExitDir,

Entry forex signal in the opposite direction of the current trade

Please read this entire manual for information on these settings.

TrailingType: This is for use with any of the various kinds of trailing stops available to you. At the time of this writing, there are 6 different types of trailing stop available.

They are explained here:

Type 1:
Moves the stop loss without delay (pip for pip).

Type 2:
Waits for price to move the amount of the trailing stop (TrailingValue) before moving stop loss then moves like type 1. The only difference between this and type 1 is that this one will not initially move the SL until the it would be set at breakeven.

Type 3:
Uses up to 3 levels for trailing stop, and utilizes these additional parameters:

FirstMove: When the forex trade is in profit this much...
FirstSL: Move SL this far from the current price

SecondMove: When the trade is in profit this much...
SecondSL: Move SL this far from the current price

ThirdMove: When the forex trade is in profit this much...
TrailingValue: Use this value & trail like Type 1

One of the unique qualities of a type 3 (or type 5) is that you do not have to use it all. For example, if you just want it to start trailing by 15 pips once it gets to 90 in profit, just set:

TrailingType = 3
TrailingValue = 15
FirstMove = 0
FirstSL = 0
SecondMove = 0
SecondSL = 0
ThirdMove = 90

Or, if say you do not want it to trail at all, but you want to lock in 50 forex pips when the profit reaches 80, and want to lock in 130 pips if the profit reaches 180, then you would set:

TrailingType = 3
TrailingValue = 0
FirstMove = 80
FirstSL = 30
SecondMove = 180
SecondSL = 50
ThirdMove = 0

Type 4:
Ratchets the SL up:
e.g. if SL = 20, and open price is 1.2400, then
when price reaches 1.2420, SL is set to 1.2400; when
it gets to 1.2440, SL is moved to 1.2420, etc.

Type 5:
Same as Type 3, except after 3rd move, it ratchets like type 4

Type 6:
Keltner Channel Trail
Uses various Keltner Channels as check points;
When it hits the next higher (for buy) channel
point, sets the stoploss to the previous
channel point. Default "K" values for Keltner
indicators are: 4,5,6,8,10,12,15,18,20

AUTHORS NOTE: If you are confused by all these trailing options, forget about them. The forex EA uses a trailing function from my library; all my forex EAs have it. But that doesn’t mean it’s best to use all of it. For this EA so far, I have only tried a “standard” type 2 trail, TrailingType = 2, TrailingValue = 100 (or whatever you want to trail by).

TrailingValue is the number of pips to trail by; see explanation above regarding various types of trail.

FirstMove, FirstSL, SecondMove, SecondSL, ThirdMove: See trailing types 3 and 5, explanation above.


bool UseAlert false
bool UseEmail false
int Slippage 1
int MagicSeed 28000
string ExpertName "SynergyEA"
int DebugLevel 5

UseAlert, if set to true, will pop up an alert window when the forex EA enters or exits a trade.

UseEmail will send an email when the forex EA enters or exits a trade. This will only function if you have correctly set up your email settings in your platform.

Slippage is the amount you will allow your broker to "slip" the price, on entry or exit. Common to most forex EAs.

MagicSeed is just any number you want to enter, or leave at default. The forex EA will use this as a base, then add a unique number to it based on the forex currency and timeframe, and will use this end number to "tag" trades, so it (and other EAs) know which forex trades were opened by it. Magic numbers are used with all forex EAs.

ExpertName is simply the text that will appear as the comment on each trade the forex EA makes.

DebugLevel sets a level, from zero to 5, which controls how much info gets printed to the experts tab. I have left it defaulted to 5, but after you are satisfied that the forex EA is working as it should, I recommend you change to zero so that it will print nothing extraneous to the experts tab.





Saturday, October 18, 2008

Profit Forex trading method #2

the reccomended forex currency

forex pairs are: GBP/USD
we work by 0.1 lot at every 400$

we put two forex orders at 10.30 in the morning (at winter time) according to Moscow (opening of Europe session+30 minutes Moscow time):
1) buy-stop on the maximum price (+1 point) of the current day
stoploss on the minimum price (-1 point) of the current day.
take forex profit is defined in such way: strain the lines of Fibonacci from price maximum of the current day to price

minimum of the current day at 10.30 in the morning and take price value of Fibonacci's line 161.8 in the capacity of take profit (visually)
2) sellstop on price minimum (-1point)of the current day
stoploss on the price maximum (+1poin) of the current day
takeprofot is defined in such way: strain Fibonacci's lines from price minimum of the current day to the price maximum of the current day at 10.30 in the morning and take price value of

Fibonacci's line 161.8 in the capacity of take profit (visually)

we close unclosed forex market positions at about 00.00 at Moscow time (or earlier at 22.00-23.00)
we delete not worked forex orders
that is all!
if at a point of installation of the order at 10.30 forex market (current) price is equal to maximum or minimum of price of the current day, we put order on minimal possible distance from current price (it is usually 10 points) or we wait for rollback or

just open position at the current price.

if at apoint of installation of the order at 10.30 the difference og prices from minimum to maximum more than 50-70 points (strong price movement), we do not sell at this day or sell by trend with takeprofit of 20-30 points

Forex Trader Info - Visit

Forex Trading Method Number ONE

recommended forex currency pairs are: GBP/USD , EUR/USD , USD/CAD
we work forex market by 0.1lot at every 650-1000%

at 9.30 by Metatrade (opening of Europe forex session in winter at 10.30 according to Moscow) we are doing forex buy or sell by 0.1lot in the direction of forex trend

forex trend is defined on the forex daily graphics: buy if the price of closing of the previous day is higher than sliding average with period 7 and shift 1

forex sell if the

price of closing of the previous day is lower than sliding average with peiod 7 and shift1.

we put 'trailing stop' 15 points. Forex stop-loss is 25-30 points. closing is by loss, trailing stop or at the end of the day

if you can not be constantly in internet, just put fixed stop-loss=30 points and take-profit-65 points. in this case the income is lower and equal 15-20% in month forex trading

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* Please remember forex trading currencies is very risky
and you may lose all or some of your forex investments.

* Past Results Performance Disclosure: Past
results are not necessarily indicative of future

* General Risk Disclaimer: All forex Trading involves
risk. Leveraged forex trading has large potential
rewards, but also large potential risk. Be aware
and accept this risk before trading. Never trade
with money you cannot afford to lose.
All forex forecasting is based on forex statistics derived from
past performance of any forex trading methodology is no
guarantee of future results. No "Safe" forex trading
system has ever been divided and no one can
guarantee forex profits or freedom from loss. No
representation is being made that any account will
achieve forex profits or losses similar to those
discussed. There is no guarantee that, even with
the best advice available, you will become a
successful forex trader because not everyone has what it
takes to be a successful trader. The forex trading
strategies discussed may be unsuitable for you
depending upon your specific forex investment objectives
and financial position. You must make your own
investment decisions in of your own forex investment
objectives, risk profile, and circumstances. Use
independent forex advisors as you believe necessary.
Therefore, the information provided herein is not
intended to be specific advice as to weather you
should engage in a particular forex trading strategy or
forex buy and sell, or hold any financial product. Margin
Requirements, tax considerations, commissions, and
other transaction costs may significantly affect
the economic consequences of the forex trading
strategies or transactions discussed and you
should review such requirements with you own
legal, tax and financial forex advisors. Before engaging
in such forex trading activities you should understand
the nature and extent of your rights and
obligations and be aware of the risk involved.
Your actions and the forex results of your actions in
regards to any information you receive from
Forex Master Maker or any of its staff are entirely
your own responsibility. Forex MasterMaker or any
of its staff can not and will not assume liability
for any losses that may be incurred by the use of
any information received from Forex MasterMaker or
its staff. Any such liability is hereby expressly

* Hypothetical Disclaimer: All results are
considered to be hypothetical unless otherwise
specified: Hypothetical performance results have
many inherent limitations. Unlike an actual
performance record, simulated results do not
represent actual forex trading. Also, since the trades
have not actually been executed, the results may
have under or over compensated for the impact, if
any, of certain market factors, such as lack of

No representation is being made that
any account will or is likely to achieve profits
or losses similar to those shown. In fact there
are frequently sharp differences between
hypothetical performance results and the actual
results subsequently achieved by any particular
forex trading program. Furthermore, only risk capital
should be used for leveraged trading due to the
high loss involved. One of the limitations
hypothetical performance results is that they are
generally [prepared with he benefit of hindsight.
In addition, hypothetical forex trading does not involve
financial risk, and no hypothetical trading record
can completely account for the impact of forex financial
risk in actual forex trading. For example the ability to
withstand losses (and incur account draw downs) or
to adhere to a particular forex trading program in spit
of trading loses are important issues which can
also adversely affect actual forex trading results.
There are numerous other factors related to the
forex market in general or to the implementation of any
specific forex trading program, forex method or forex system, which
cannot be completely taken into consideration with
hypothetical performance results and will affect
forex trading results and your P/L.

* Testimonials: Unique experiences and past
performances do not guarantee future results.
Testimonials herein are unsolicited and are non-
representative of all clients; certain forex accounts
may have worse performance than that indicated.
Forex Trading spot currencies involves substantial risk
and there is always the potential for loss. Your
trading results may vary. Because the risk factor
is high in the foreign exchange forex market trading,
only genuine “risk” funds should be used in such
forex trading. If you do not have the extra capital that
you can afford to lose, you should not forex trade in
the foreign exchange market. No “safe” forex trading
has ever been devised, and no one can
guarantee forex profits or freedom from loss.

Read Easy forex trading MA System

Easy forex trading MA System

Even at the most forex basic indicators can build a profitable forex system. This example has 2 muvinga periods of 21 and 70. After punching the price of a muvingov begins standby. If prices turned, not when you come to 2nd (older) muvinga, the entrance is carried out when forex crossing (or a little earlier), MA (21). Stop-loss is placed below the recent donyshka (peak). The forex system has drawbacks - one of them - the wrong forex signal at the conclusion of the forex trend. However, nesravnennoe advantage that it should always trend, contrary to the wishes of inexperienced players to play against him:)

Tuesday, October 14, 2008

How to use Presets for your forex expert.

1 Open the inputs in the properties of the forex expert.

2 You set up expert the way you want it to trade.

3 Next you left click on save.

4 Next you give the file a name ( Barry macd 30may08)

5 Remember where you save it, the default is -- forex metatrader 4\experts\presets

6 Next time you put the forex expert advisor on the forex chart you left click Load in the properties of the expert and choose the name you save it under and high light it ( Barry macd 30may08) and click on open.

7 Now you have the setting in the input box.

8 If you want to sent the setting buy email click on attach, the popup box comes up with all of your computer files showing, go to (default is - metatrader 4\experts\presets) and find ( Barry macd 30may08) and high light it buy left clicking on the file.

9 Now left click on (Attach)

10 You now have the presets attached on the email.

How To refresh forex EAs and or forex Indicators without shuting down MT4

Monday, October 13, 2008

To refresh forex EAs and or forex Indicators without shuting down MT4

1. Copy forex EAs and or forex Indicators to their proper directory

2. Fire up MetaEditor

3. Click on Compile (This would update MetaTrader Navigator's List)

4. Right Click on MetaEditor's Navigator list and then click on Refresh (This would update MetaEditor EA and or Indicator List)

How to tell forex Experts from forex Indicators - Read

Best trader info here

How to tell forex Experts from forex Indicators

There is no file extension to distinguish between and forex Expert or forex Indicator. If you are not sure what you have, they you have to look at the code in MetaEditor. At the top of the code in MOST Experts there will be code such as Lots, Stop Loss, Take Profit, these would be Experts.

Most MT4 indicators with say Custom forex Indicator in the code, and MT3 forex indicators with have things such as Separate Window, First Color, Draw Type and things of that nature. I can not code a single thing, but I can read. Some Experts have a wealth of information written inside the code for easy understanding.

When you drag the Expert from the forex Expert Advisors folder in MetaTrader to the forex chart and let if go, that is when a pop up window should show up. On the common tab will be a box that says allow live forex trading, check it. Inputs tab will be to make changes to the code if it's allowed. Then click ok. Indicators taken from the Custom forex Indicators folder of MetaTrader will have a popup window as well, but no live forex trading. Just a list of settings, click ok and it should run.

If it's not, I would probably remove the Expert or Indicator from MetaTrader and try it again. I could be they are just in the wrong folders. Open the code to determine what it is, place it in the appropriate folder, compile it in that folder and start MetaTrader. From the Navigator menu, open forex Expert Advisors, drag the EA to the chart you want to run on and let it go, on the comon tab from the popup, click allow live forex trading and it should work. If it's an forex Indicator, it will be in the Navigator Menu under Custom Indicators.

Handy hedge free forex strategy

Handy hedge free forex strategy

It’s a simple mechanical forex hedge trade of GBP/USD that I enter with a 5 pip take profit on the long and the same on the short ---- both trades are entered as closely to each others price as possible and the whole concept is based on the intraday reversals that EVERY forex currency goes through and the intraday reversals they make WITHIN the reversal! My spread is one pip!

I enter a minimum of 45 minutes before the forex market reversals in the US which can be considered as MAJOR at NOON, EST and MIDNITE, EST.

I use the minor reversals at 10:30 AM, 1:30 PM, 5PM, 8PM, 10:30 PM

NONE of these times are written in stone unfortunately, but on a very VERY high average hold true - sometimes the NOON reversal happens at 11:30 AM if the banks feel its time to reverse, but invariably the trade will come in if you get stuck there --- simply takes a few hours then.

I had been forex trading this without entering a weekend trade, but last week I did as an experiment and it cleared nicely came Sunday night --- I wouldn’t run right out and do that if I were you, but its something to consider.

if you observe the forex market, you will notice reversals every 1.5 hours ( WHICH USUALLY DO NOT ALTER THE LONGER TREND, such as on the H1), as the longs get out and the shorts come in (or the forex brokers now short the run-up to make THEIR profit against your long, or to simply hit your stop-loss, take your shares, and then run the price up again -- that way they make twice as much while you sit there wondering what happened to your nice profit on the long forex trade !

IF THE REVERSALS COME IN EARLY, count one and a half hours to expect the next -- somewhere on down the line the banks will get back on schedule, but its good to be ready for them a little early -- rather than late!

Essentially, that’s it --- cause there really isn’t much to it except leaving the basket under your floppy drive to catch the money dropping!

TEST IT --- it works for me, even when I enter late and suffer a days drawdown, but DONT enter LATE and don’t suffer, which is kind of simple to remember and is the ONLY rule I can think of.

The whole thing with the trade is the range of GU --- even if you get stuck in a trend change, the "noise" of the forex market with up and down movements at that point, will invariably take out your 5 pips!

But 5 pips here, and 5 pips there and do it enough times in a day, and then a week, and it begins to look like real money after a while.

It’s forex mechanical and has no rules except DONT ENTER LATE and while some probably think there is not much to be made, try throwing 5 or 10 lots on each side, 5X a day, and tell me then!

BTW - YOU don’t do that for a long long time - greed is what kills graveyard dead!

Another reversal time

the next hedge will be at 9:15 pm, est for the 10:30 pm reversal -- after that will be the 12 midnite reversal, and you place the hedge at 11:15 pm, est.

try it a few hundred times and i think youll like it


I LOVE the intelligence of this thread, even when they nail me --- like a welfare child, your post fell thru the cracks and i apologize.

and as far as i remember, the times DO NOT change with standard or daylight savings time.


Summarized Times

EST GMT - 45 minutes - 1 hour

1030 1530 1445 1430
1200 1700 1615 1600
1330 1830 1745 1730
1700 2200 2115 2100
2000 0100 0015 2400
2230 0330 0245 0230
2400 0500 0415 0400


This trade is NOT affected in any way by the DAILY trend, but rather the absolutely NECESSARY intraday reversal trend and the point that the market makers reverse a trade so THEY can make money and grab more shares !

There are a few purposes behind these reversals, but mostly by stopping and reversing price the mm's get MORE shares at a lesser price to continue a bullish runup AND/OR they make money against your long by now shorting, where most people will now sell and they buy more shares at a lower price to short on the way down as people bail their long positions. Of course, reverse this for a forex market thats moving down!

Now at the bottom, because of averaging down, they own MANY shares at a lower price and now they run the price back up, taking profit on the long side with their cheaper shares !

Lets say they run a currency up to 1.9000, at which point they reverse down to 1.8000 - almost everyone except long term holders will bail their positions (its SO human nature) to take forex profit, as they sell at a steadily decreasing price OR THEIR STOP LOSSES ARE HIT !


Now the price is down to 1.8000, the mm's now cover by buying all these shares but at a 1000 pip advantage to where the currency was 15 mins ago, and UP THEY GO AGAIN, with lots more shares to sell the retail trade, but they got em CHEAP !!

Its often called a "headfake" because they fake you into thinking the price will now go down forever, scaring you into selling or forcing your stop losses --- Its HOW the rookies loose money and the mm's do it with glee !

PRO traders are the BEST forex day traders in the business and are well rewarded for being so - their job is to MAKE money for the company they work for and not care much about how they do it !

FOREX Trading, at least to this person, is KNOWING what theyre doing more than simply knowing when to enter and when to exit ! Theres a lot of pros out there, and they dont give a rats rump about any of us - rather they really dont like us at all, but will quickly grab our money !

of course, when forex trading with no sl, one better know the trend and NOT trade against it !

love and kisses

EuroX2 - Forex Automated trading

Hello Fellow Traders,

This is a tale of a disaster that happened to me that you should know about. It is about a commercial forex automated trading EA called EuroX2.

There are several attachments with this letter.

1. A detailed account statement and GIF of a demo I allowed to run from September 4, 2006 – January 9, 2007. This is NOT a backtest.

2. Screenshots (screen1, screen2, screen3, screen4) of the forex chart attached to the account from October to January. It was running on another computer prior to this.

3. A log off my friends (and my) LIVE ACCOUNT that was COMPLETELY wiped out by this forex automated trading EA.

About the demo. It made good money for a while, and the forex balance went up to about $17,000. However, it then lost 10K and went mostly downhill after that. I closed it at about $1,250. It had been down further than that.

This was the first forex automated EA I ever dealt with. I bought it, paid $100.00 for it. Before I did, I was told I could “backtest” it for free. Well I did. The backtest was FANTASTIC. I thought that if it was even a QUARTER as good as the backtest that it was all forex trader could ever want!

However, not being a total idiot, I put it on a demo and tested it for a few days. Boy, did I learn a lot about it in those few days.

I learned that it could be good and bad. The good I learned was that it needed to be WATCHED and if running during QUIET forex market hours, it would rack up small amounts of change. Even so, it still lost a lot, and sometimes closed trades unreasonably. The bad that I learned was that it had NO defense against a serious change in market direction. Once you got left behind, the forex trades kept running right where they were until your forex account was seriously depleted. Later with the demo, I watched it drop 10K before it closed its bad forex trades.

In the meantime, I had discovered lightpatch and the MT group, and had found a mellow forex hedge trader that did not have to be watched all the time. A few times I day I would check it and if the equity was past a certain point, I would close the entire thing manually. It didn't seem to close itself, but that was fine with me.

I had put the EuroX2 on the live forex account and ran it for a few evenings while I watched it closely. Then I turned OFF a few days before at the end of a short forex trading session. I know it was OFF, because the computer was ON and it was NOT trading.

I had decided to put the forex hedge trader on that night, and take a break and eat a leisurely dinner.

Before I did, I made CERTAIN that the EuroX2 was off.

I then turned on the hedge trader. I sat for about an hour watching to make certain again that all was well. It was. Nothing but the forex hedge trader was running. (See the “log” for more details on this).

I went about 10 feet away and started cooking dinner.

About the time I was halfway through eating, my broker called and said the account was dropping rapidly. They had been having trouble with their servers, and he was on night duty checking periodically to see if they were working. Normally there was no one there. He said that its normally a very quiet time of night, but the machine kept binging indicating that someone was forex trading, so he went over to see if there was a problem with the server, saw it was my account and called me. I jumped up, ran for the computer, and closed ALL forex trades as fast as I could. However, by that time the account was wiped out.

As you can imagine, I was totally unnerved to say the least, and to say I was not thinking clearly would be a RADICAL understatement. The money in the account belonged to a friend.

There is no way I can express the personal pain this has caused me. That's why I am warning YOU about what can happen.

Sunday, October 12, 2008

The Importance of the Money Management

Money management is a critical point that shows difference between winners and losers. It was proved that if 100 traders start trading using a system with 60% winning odds, only 5 traders will be in profit at the end of the year. In spite of the 60% winning odds 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is.

It's important to understand the concept of money management and understand the difference between it and trading decisions. Money management represents the amount of money you are going to put on one trade and the risk your going to accept for this trade.

There are different money management strategies. They all aim at preserving your balance from high risk exposure.

First of all, you should understand the following term Core equity
Core equity = Starting balance - Amount in open positions.

If you have a balance of 10,000$ and you enter a trade with 1,000$ then your core equity is 9,000$. If you enter another 1,000$ trade,your core equity will be 8,000$

It's important to understand what's meant by core equity since your money management will depend on this equity.

We will explain here one model of money management that has proved high anual return and limited risk. The standard account that we will be discussing is 100,000$ account with 20:1 leverage . Anyway,you can adapt this strategy to fit smaller or bigger trading accounts.

Money management strategy

Your risk per a trade should never exceed 3% per trade. It's better to adjust your risk to 1% or 2%

We prefer a risk of 1% but if you are confident in your trading system then you can lever your risk up to 3%

1% risk of a 100,000$ account = 1,000$

You should adjust your stop loss so that you never lose more than 1,000$ per a single trade.

If you are a short term trader and you place your stop loss 50 pips below/above your entry point.
50 pips = 1,000$
1 pips = 20$

The size of your trade should be adjusted so that you risk 20$/pip. With 20:1 leverage, your trade size will be 200,000$

If the trade is stopped, you will lose 1,000$ which is 1% of your balance.

This trade will require 10,000$ = 10% of your balance.

If you are a long term trader and you place your stop loss 200 pips below/above your entry point.
200 pips = 1,000$
1 pip = 5$

The size of your trade should be adjusted so that you risk 5$/pip. With 20:1 leverage, your trade size will be 50,000$

If the trade is stopped, you will lose 1,000$ which is 1% of your balance.

This trade will require 2,500$ = 2.5% of your balance.

This's just an example. Your trading balance and leverage provided by your broker may differ from this formula. The most important is to stick to the 1% risk rule. Never risk too much in one trade. It's a fatal mistake when a trader lose 2 or 3 trades in a row, then he will be confident that his next trade will be winning and he may add more money to this trade. This's how you can blow up your account in a short time! A disciplined trader should never let his emotions and greed control his decisions.


Trading one currency pair will generate few entry signals. It would be better to diversify your trades between several currencies. If you have 100,000$ balance and you have open position with 10,000$ then your core equity is 90,000$. If you want to enter a second position then you should calculate 1% risk of your core equity not of your starting balance!. It means that the second trade risk should never be more than 900$. If you want to enter a 3rd position and your core equity is 80,000$ then the risk per 3rd trade should not exceed 800$

It's important that you diversify your prders between currencies that have low correlation.

For example, If you have long EUR/USD then you shouldn't long GBP/USD since they have high correlation. If you have long EUR/USD and GBP/USD positions and risking 3% per trade then your risk is 6% since the trades will tend to end in same direction.

If you want to trade both EUR/USD and GBP/USD and your standard position size from your money management is 10,000$ (1% risk rule) then you can trade 5,000$ EUR/USD and 5,000$ GBP/USD. In this way, you will be risking 0.5% on each position.

The Martingale and anti-martingale strategy

It's very important to understand these 2 strategies.

-Martingale rule = increasing your risk when losing !

This's a startegy adopted by gamblers which claims that you should increase the size of you trades when losing. It's applied in gambling in the following way Bet 10$,if you lose bet 20$,if you lose bet 40$,if you lose bet 80$,if you lose bet 160$..etc

This strategy assumes that after 4 or 5 losing trades, your chance to win is bigger so you should add more money to recover your loss! The truth is that the odds are same in spite of your previous loss! If you have 5 losses in a row, still your odds for 6th bet 50:50! The same fatal mistake can be made by some novice traders. For example, if a trader started with a balance of 10,000$ and after 4 losing trades (each is 1,000$) his balance is 6000$. The trader will think that he has higher chances of winning the 5th trade then he will increase ths size of his position 4 times to recover his loss. If he lose, his balance will be 2,000$!! He will never recover from 2,000$ to his starting balance 10,000$. A disciplined trader should never use such gambling method unless he wants to lose his money in a short time.

-Anti-martingale rule = increase your risk when winning & decrease your risk when losing!

It means that the trader should adjust the size of his positions according to his new gains or losses.

Example: Trader A starts with a balance of 10,000$. His standard trade size is 1,000$
After 6 months, his balance is 15,000$. He should adjust his trade size to 1,500$

Trader B starts with 10,000$. His standard trade size is 1,000$
After 6 months his balance is 8,000$. He should adjust his trade size to 800$

High return strategy

This strategy is for traders looking for higher return and still preserving their starting balance.

According to your money management rules, you should be risking 1% of you balance. If you start with 10,000$ and your trade size is 1,000$ (Risk 1%). After 1 year, your balance is 15,000$. Now you have your initial balance + 5,000$ profit. You can increase your potential profit by risking more from this profit while restricting your initial balance risk to 1%. For example,you can calcualte your trade in the following pattern:

1% risk 10,000$ (initial balance) + 5% of 5,000$ (profit)

In this way, you will have more potential for higher returns and on the same time you are still risking 1% of your initial deposit.

MetaTrader 4 Forex Backtesting F.A.Q.

I decided to write up this little tutorial, because backtesting different forex systems comes up very often in threads on this forum. There seems to be a lot of confusion about reliability issues and how to go about achieving the most accurate possible results. I am not a programming or forex trading guru, but I believe I can provide a helpful little FAQ on backtesting using MT4.
Good backtesting is important when considering a forex system-trading approach, because you want to have some idea of the feasibility of your idea before you go live with it [at least I do]. If you're backtesting with a 50% model quality, eh... you can't really be sure what's going on. If you have a 90% modeling quality, you can have more confidence on how your forex system actually would have performed.

MCBoogs' MT4 Backtesting FAQ v1.0

- Section 1: Is MT4 Backtesting Reliable?
- Section 2: Downloading/Importing/Converting 1M Data
- Section 3: Configuring the Backtester
- Section 4: Other Issues

Section 1: Is MT4 Backtesting Reliable?

This question often gets pretty heated and people even get to the point of flaming each other about it. Backtesting in MT4 can be reliable, but its reliability is contingent upon the data you are backtesting on. Demo account data that is streamed in through a demo account forex broker has gaps, holes, and is basically not suitable for testing.
When backtesting, you want to use the EVERY TICK MODEL and have accurate 1M data to get the most accurate test possible. The forex 1M data is important, because the EVERY TICK MODEL uses whatever the smallest available timeframe available is and "fakes" the movement of price within the smallest available bars. Having 1M data allows for the fractal interpolation within bars to occurs only within the very narrow range of forex 1M bars.
The easiest [and only] solution to this is to use good 1M data. The most complete data you can get [at least for free] is from Alpari's Databank. They have data in MT native format, on the 1M timeframe back through mid 2004. However, setting up the data for use requires some doing.

Section 2: Downloading/Importing/Converting 1M Data

(1) You need to modify MT4 to allow for more bars. Go into the Tools Menu, then go to Options [or just hit C+O]. Go into the charts tab and put in 9999999999999 for bars in history. MT4 will default to whatever it's maximum is.

[Note: The reason MT4 has a limited forex bar count to begin with is because more bars (particularly when used in backtesting models) means MT4 is going to eat up more HD space.]

(2) Download the 1M data from Alpari's Databank in whatever forex currency[ies] you're going to test on.

(3) Import the data into MT4 using the History Center. Go to Tools => History Center [or push F2]. Make sure you import it in proper forex currency and in the M1 timeframe. You don't want EUR/USD data being important into USD/CAD for instance.

(4) Convert the data using the period converter script included in MT4 [you only have 1M bars right now]. You have to open offline forex charts to do this.
-Go to the File Menu, then Open Offline, select the 1M data of the currency you need to convert. A chart will pop up with that data.
-Then drag & drop the period_converter script onto the offline forex chart. The ExtPeriod Multiplier int that you can modify is the multiplier you are applying to the chart. So making it 5, will convert 1M data into 5M data.
-For simplicity's sake, you need to run the period converter with the following integers to get all the backtesting timeframes: 5,15,30,60,240, and 1440.

[NOTE: you can also convert 1M data to timeframes not native to MT4 if you want to do some forex indicator analysis or something on another timeframe.]

Congratulations, you have now imported and converted data into MT4. Now, for the sake of illustrating one of my earlier points, open up a currency you have imported data on. Look at the difference in the bars from the downloaded data as opposed to data streamed in from a Demo broker [So, if you downloaded 1M data from July 04 to August 05, look at the forex chart at August 05's end and September 05's beginning]. You will notice that the bars (on every time frime if you have converted them properly) from your downloaded time period will be more complete.

Section 3: Configuring the Backtester

Now that you've succesfully imported complete data, there are a few more things you need to do to run a reliable backtest.

(1) Check the recalculate option the next time you run a backtest, because you need the backtester to utilize your shiny new happy data (which it won't do unless you tell it). Anytime you import new data, you need to recalculate (I recalculate every few tests just to feel safe, maybe its a reflection of internal confidence problems, but that's for another FAQ).

(2) Check the use date option and set the date range only over a time period where you have good reliable data. This way you're only backtesting the good stuff. It will be reflected in the modeling quality percentage.

(3) Make sure the model is set to EVERY TICK. If you're not, all this hard work we just did was for nothing. I addressed why we do this earlier in the FAQ.

Section 4: Other Issues

MT4 is a work in progress, sometimes there are strange bugs that crop up in backtesting. However, usually when you think you have a bug on your hands, there is something wrong with your code. I can't emphasize enough how important debugging is. If you have problems, check your code first because it's probably the problem. If you really think you have a legit bug on your hands, post it to the MT4 forex forums.
Because you are not actually backtesting on every tick that happened [you are dealing with an interpolation on 1M data], it is still not a perfect reproduction of what actually happened in the markets. Because of this, 1M and 5M forex scalping EAs that get in and out of trades really quickly will run into some problems just because of this limitation. The longer timeframe you are trading on, the less likely your testing is to be hampered by this.
Well, that's all I can think of now. I read this over, I think I made everything clear and have the steps outlined correctly. If you notive a mistake, let me know, and I'll correct it in my next version of the MT4 Backtesting FAQ.

I learned most of what I know about MT4 and forex trading in general from these forums and others like it. Thanks to all the people who contribute that have provided me with useful tidbits of information. There are too many names [and some of them are weird, have lots of numbers in them, etc.] to list, but a serious thanks to all the forex Strategy Builder contributors out there.
Best of luck in the markets everyone.

EuroX2 - Forex Automated trading

MetaTrader Forex Brokers List

.:: Admiral Investments and Securities Ltd.

.:: Alpari Ltd.

.:: APEX FX Trading

.:: Bull Trend Brokerage

.:: FiboGroup maybe… spreads maybe a pip larger… OFFER CFD’s

.:: EuroForex Development LLC. US based

.:: fxTeam samr as North Finance?

.:: Financial Network Worldwide Ltd. Russian only?

.:: FinMarket Ltd. Ukraine

.:: Forex Global Investment LLC US based limited range of X’s wide spreads

.:: Forex Ltd. Ukraine.. multi lingual

.:: FX-Pro Ltd. fixed spreads of 3 pts on majors.. rest ??

.:: IC Vector Securities Ltd. no english

.:: Inforex Introducing Broker non anglais either

.:: Integral Bank Russian

.:: Interbank FX

.:: Jaguars Investment LLC bad link

.:: Joy Financial Group Asian.. English doesn’t seem to work

.:: KVB Kunlun New Zealand Limited Hong Kong/NZ 5 pt spreads

.:: Lefco Bank Russian language

.:: Livingston Investment Inc. Russian language

.:: Man Financial (S) Pte Ltd

.:: MIG Investments Group LLC bad link

.:: Orion Global Financial Services English/Arabic offices US Dubai and Swiss

.:: Performance Forex GmbH Phillipines based

.:: Real Trade Ltd. Virgin Is USA and Russia, Ukraine

.:: STS Finance SC Bulgarian based 25 X’s + Indices spreads not too bad.. FX Pro offers Spread of 1~3 pips..

.:: Teletrade D.J. International Consulting Ltd. Front office in Hong Kong

.:: The Commercial Group site under construction

.::, Inc.

.:: Ukrsotsbank Russian language

.:: Windsor Brokers Ltd. Cyprus based

.:: X-Trade Sp. z o.o. Warsaw based big range of x’s

.:: FXBest Russian Language

.:: ManFinancial

.:: SNC investment US based

.:: FXDirectDealer worth a look US based

.:: Neurex paypal? free visa? English doesn’t seem to be working CHF based US and Latvia sales offices London, Moscow and US 3~5 pip spreads could be ok faster than North Finance?? Jordanian based bank 2~3 pip spreads worth looking at 2 pips? US based 2 pips? good reports? Indices?
may be worth a look

The Importance of the Money Management

How to put a forex Indicator in a chart.

Go to my computer.
Find your Metatrader program.
Click Double click on it.
You will see list of folders.
The 3rd is experts folder.
Double click on it.
Now you see the 3rd folder is indicators folder. C:\Program Files\Interbank FX Trader 4\experts\indicators
Remember where the indicators folder is.
Now go to the Email and click on the attachment
Now click on save
Now click on browes
Now go to where you remember where the indicator file folder was and double click on it.
You now the indicator file in the save box.
Now click on save
Go to your platform and close and then restart.
You now have the indicator in the Navigators Custom Indicators.
Now left click on the indicator you want drag to the chart.
You are done.

For all which want reliable backtest

Best FOREX Indicators - Only if you need

For all which want reliable backtest

- Download 1 minute data for EUR/USD from 2004.06.16 to 2005.10.11 (at "Formats - MT, XPO, MetaStock" the monthly datas):

- In Metatrader click on Tools/History Center and then on Forex/EURUSD/1 Minute (M1). Import all downloaded *.hst files

- Click on Tools/Options and then on Charts. Put in "Max bars in history" a very high number (99999999999999)

- Open a 1 Minute (M1) chart and doubleclick the "Period_converter" script from the left Navigator
Put at Inputs/ExtPeriodMultiplier the number 5 and hit OK. Now the 5 Minute history is created from the 1 minute history datas. It should be immediately completed. No notification about the completion. After some seconds, doubleclick "Period_converter" again and put at Inputs/ExtPeriodMultiplier the number 15 and hit OK. Now the 15 minute history is created from the 1 minute history data. Do this as often as needed for all the time periods you want run backtests. Have a look into the 'History Center' to make sure the convertions were successful. For example, click on '5 minute' and scroll down, the last date should be the 2004.06.16 where you have history data for the 5 minute period.

- Now in the Strategy-Tester choose the "Use date" option and put in the testperiod from 2004.06.16 to 2005.10.11, click on 'recalculation' and run the tests. After the test is completed you should see in the 'Report'-Tab a modelling quality about 90% which means very accurate results. You have then a backtest for 1.3 years.

Use MT4 build 182, it seems more reliable. The version with build 183 have failures in the backtesting. Compare backtests between MT4 build 182 and MT4 build 183 and you will see it!
MT4 build 182 can you get here:

DOCUMENATION for WRR_ZUP_INFO_v02 .mq4 forex Indicator to Complement ZUP :: successful forex trader

Saturday, October 11, 2008

DOCUMENATION for WRR_ZUP_INFO_v02 .mq4 forex Indicator to Complement ZUP :: successful forex trader

Rev 00
Issued 2008.06.16

Forex Indicator INTRODUCTION
In response to a number of requests, I have re-written my ZUP _ v67.01_WRR _ZUP_INFO.mq4 forex indicator to make it compatible with multiple versions of ZUP for forex trading. I am calling this new indicator WRR_ZUP_INFO_v02.mq4. Following, is a description of what it does and the settings for it.
This forex indicator also needs the ZUP indicator on the chart set up to show Gartley patterns for it to work.

The main purposes for, and features of, the WRR_ZUP_INFO forex indicator are as follows. It will display a text block saying what type of pattern ZUP has made (Gartley, Butterfly, Bat or Crab), if the pattern has “failed,” if there is no pattern, what timeframe or period the chart is on and the chart instrument or pair. The text block also indicates the risk for the forex trade and the range in which the pattern is valid or somewhat valid. The text block can be moved anywhere on any window including forex indicator sub-windows.

It will alert when there is a pattern change. It will draw a 100% fib expansion on Gartleys to show if there is an AB=CD confirmation. It will allow one to change the background property and colours of the D Point Rectangle drawn by ZUP. It will also allow one to forex automatically and instantly make a screen shot every time a new pattern forms, fails or there is no pattern, then save it to a file.

There are a few more adjustments that can be made to the forex indicator, all of which are documented below. The main settings for the forex indicator are noted in green. The other settings for the indicator are noted in blue. Important notes are shown in red.


To function properly, this forex indicator must be installed after the ZUP indicator. A source for the ZUP indicator is noted near bottom of this document.

**** VERY IMPORTANT **** TO GET the WRR_ZUP_INFO INDICATOR TO WORK AND TO GET ZUP TO WORK, one must check the box "Allow DLL imports" in the Common Tab of the indicators’ properties ON BOTH INDICATORS. If “Allow DLL imports” is not selected in ZUP, nothing will show up. If “Allow DLL imports” is not checked in WRR_ZUP_INFO, an error message alert will show up and it will not run.

**** VERY IMPORTANT **** Always install ZUP first then WRR_ZUP_INFO after ZUP. This is because WRR_ZUP_INFO needs to read the most current data from ZUP. If one installs WRR_ZUP_INFO first, then its performance will be delayed.


It has 3 different types of forex alerts, one that alerts when ever there is a new pattern (PatternAlertON = true), a second that forex alerts if there is a pattern failure (FailedPatternAlertON = true) , and a third that alerts when the last pattern is removed by ZUP i.e. No Pattern Now (NoPatternAlertON = true) . All alerts can be turned off together with the (AllAlertsOFF = true) setting. On the old version, the alerts would always sound for forex charts with patterns every time the forex indicator was started or the period was changed on the charts. On this version these problems have been reduced.

When I wrote the original version, I placed Global Variables in the ZUP code to make data accessible to my indicator since this seemed like an easier way to code it. However, there are so many new versions of ZUP coming out all the time, this turned into a make work project. So this new version of my indicator detects the triangle and rectangle objects that ZUP draws for the patterns. This indicator should now work with multiple versions of ZUP with no modifications required to the ZUP code, provided the ZUP settings are correct.


Following are the current settings I use in ZUP. I don’t know how they all work but at a minimum, the bolded ones should be considered.

extern string ________________0_____________ = "Parameters for ZigZag";
extern int ExtIndicator = 11;//WRR default is 11 for Gartley Patterns
extern int minBars = 8;//this varys slightly on some versions
extern int minSize = 55;//this varys slightly on some versions

// Ïåðåìåííûå îò ZigZag èç ÌÒ
extern int ExtDeviation = 5;
extern int ExtBackstep = 3;
// Ïåðåìåííàÿ äëÿ nen-ZigZag
extern int GrossPeriod = 1440;
extern double minPercent = 0;
extern int ExtPoint=11; // êîëè÷åñòâî òî÷åê çèãçàãà äëÿ çèãçàãà Talex
extern bool ExtStyleZZ = true;

extern string ________________2_____________ = "Parameters for Pesavento Patterns";
extern int ExtPPWithBars = 0;
extern int ExtHidden = 1;
extern int ExtFractal = 7;
extern int ExtFractalEnd = 7;
extern int ExtFiboChoice = 2;
extern bool ExtFiboZigZag = false;
extern double ExtDelta = 0.04;
extern int ExtDeltaType = 2;
extern int ExtSizeTxt = 10;//WWR default 7, try 10
extern color ExtLine = DarkOrange;//WRR default DarkBlue, try DarkOrange
extern color ExtLine886 = LimeGreen;//WWR default Purple, try Yellow
extern color ExtNotFibo = DarkOrange;//WRR default SlateGray, try DarkOrange
extern color ExtPesavento = LimeGreen;
extern color ExtGartley886 = GreenYellow;
color colorPPattern;

The colours one chooses are one’s personal preference. Some say the best patterns are those with the most or all Fibonacci numbers. These are the ones labelled by the ExtGartley886 colour so make sure they stand out. The next best patterns are the ones with the most ExtPesavento numbers.

extern string ________________3_____________ = "Parameters for Gartley Patterns";
extern int maxDepth = 33;
extern int minDepth = 3;
extern bool DirectionOfSearchMaxMin = true;
extern int NumberPattern = 1; //WRR default set for only one pattern
extern int ExtGartleyTypeSearch = 0; //WRR default= 0, 2=historical
extern int ExtHiddenPP = 1;
extern bool ExtGartleyOnOff = false;
//extern int VarDisplay=0;
extern int maxBarToD = 100;//WRR default was = 15, 0=historical, set at 100 so pattern stays visible more bars after it is formed. If this is set too low, then often the pattern will be removed from the chart as soon as it fails and WRR_ZUP_INFO will go from a pattern to No Pattern Now, skipping the FAILED message. This setting is also good to pick up big patterns and ones that are slow to start moving in flat market.
extern bool RangeForPointD = true;
extern color ExtColorRangeForPointD = DarkGrey;//so red candles show up better extern color ExtColorPatterns = Blue;
extern string ExtColorPatternList = "Blue,DarkGreen,Navy,Sienna,MediumBlue,RoyalBlue,DodgerBlue,CornflowerBlue,LightSkyBlue,SlateBlue,MediumSlateBlue,SlateGray,LightSteelBlue";
extern double ExtDeltaGartley = 0.09;
extern double ExtCD = 0.886;

extern string ________________12_____________ = "Common Parameters";
extern color ExtObjectColor = CLR_NONE;
extern int ExtObjectStyle = 1;
extern int ExtObjectWidth = 0;
extern bool ZigZagHighLow = true;
// --------------------------------
// Äîïîëíèòåëüíûå ôèíêöèè
extern bool ExtSendMail = false;
extern bool ExtAlert = false; this setting will alert every time a ZigZag draws a new bar (changes direction). It is too irritating to have it on (true) when the market is flat as it sends too many alerts but it is handy as a tool to signal direction change. It is not necessary to have this alert in ZUP on for the WRR_ZUP_INFO indicator to work.
// Âûâîä îáúåêòîâ â âèäå ôîíà
extern bool ExtBack = true;
// Ñîõðàíåíèå ñòàòè÷åñêèõ âèë Ýíäðþñà, Fibo Time è ò.ä.
extern bool ExtSave = false;
extern bool infoTF = false;//set to true if one wants to see average true range for different chart periods, range numbers and pattern names created by ZUP. These are the same range numbers and pattern names as in WRR_ZUP_INFO. Normally the comments from infoTF don’t show up due to interference with the comments of other indicators or infoTF gets in the way of the comments of other indicators if not set to false.
extern int ExtComplekt = 0;

The rectangle that ZUP draws with each pattern denotes the price range where the “D” point or entry point of the XABCD pattern is valid or somewhat valid. The indicator determines the high and low value of this rectangle then calculates it’s range and the distance of price from the pattern failure point. The minimum and maximum price range where the pattern is valid is the same information as is available when ZUP is set to show one pattern and the ZUP infoTF switch is turned on.

The code for a "FAILED" pattern is now corrected. Before, if the pattern "failed" a while ago but the price came back into range, ZUP_v67.01_WRR_ZUP_INFO.mq4 would call the pattern valid when it was not.

Trading the Patterns
For entering bullish patterns, the low value of the rectangle range would be the maximum risk or minimum price level where one might want to set a stop. For entering bearish patterns, the high value of the rectangle range would be the maximum risk or maximum price level where one might want to set a stop. If price moves beyond these points then the pattern has failed and the indicator optionally sends an alert. A new bullish pattern can also be used as a signal to exit a short trade and a new bearish pattern can also be used as a signal to exit a long trade.

One may find that Gartley’s on higher timeframes are the most reliable to trade followed by 1.618, 1.272 and 2.618 Butterflies.

I found that the default setting on ZUP for the “D” point rectangle that draws only an outline of the rectangle blocked my view of the wicks on candles. For this reason I added a feature to optionally make the rectangle solid and in the background so that the wicks can always be seen (RetangleInBackground = true). The colour of the rectangle can be changed with this setting (RetangleColour = DarkGray).

Many Gartley traders agree that a true Gartley pattern must have pattern segment AB equal to CD. Therefore, the indicator will optionally draw a single Fibonacci Expansion line at the 100% expansion level to show where point D should end on a proper Gartley pattern when (ShowABeqCD_FibExpGartley = true). It will remove the single fib line either when the Gartley Pattern fails (RemoveFibExpGartley_if_FAIL = true), or when the Gartley Pattern is not on the chart (RemoveFibExpGartley_if_FAIL = false). The colour of the fib line can be adjusted here: (ABeqCD_FibExpGartleyColour = Red).

In addition, the indicator will optionally, instantly make a *.gif screenshot of the chart each time the indicator is launched to show what if any pattern was there upon start up and make further screen shots the moment a new pattern forms, fails or is removed by ZUP. I added the screen shot feature to make it easier to debug and understand WRR_ZUP_INFO’s alerting behaviour but it may be useful for some people so I left this code in (ScreenShotWhenPatternChange = false). Make sure one turns screen shots to false when not needed as the screen shot files will take up a lot of space on one’s hard drive with the setting set to true.

Screen shot files are named in the following format:

Currency Pair, Chart Period, date time of the Chart i.e. ChartYYYYMMDD HHMM SS, date time of the local PC i.e. (LocalYYYYMMDD HHMM SS milliseconds), Pattern Name, . For example:

AUDUSD 5M Chart20080613 0559 05 Local20080612 2359 53 632 Bullish Gartley Initially.gif

Note that “Initially” will not show up again in any file names unless MT4 is restarted or the chart is changed.

These files are created in the C:\Program Files\ \experts\files\WRR_ZUP_INFO Screen Shots directory. The “WRR_ZUP_INFO Screen Shots” sub-directory is created automatically by the indicator if it does not already exist.

When (ShowScreenShotsOnLabel_3_ON = true) a label will be drawn on the chart noting that automatic screen shots is turned on. The label will disappear when automatic screen shots is turned off or if the setting is changed to false, but changing ShowScreenShotsOnLabel_3_ON to false does not turn off screen shots – it only turns off the label. The recommended setting is to always leave it as true to help remember to turn off screen shots when not needed.

One can adjust the screen shot gif file picture size by changing the (ScreenShotWidth = 1088) and the (ScreenShotHeight = 612) settings. This is handy if one wants to post smaller screen shots on forums or to get the gif files to fit on your picture viewing software without having to resize or scroll. Smaller numbers make a smaller screen shot. Play around with this to see what is best.

Corner = "br", sets which corner of the chart to draw the labels where “tl" = top left, "tr" = top right, "bl" = bottom left and "br" = bottom right.
OffsetTopBottom = 0, adjusts the overall height in points that the labels are from the Corner selected. One may want to set this to 10 if using screen shots with WRR_ZUP_INFO labels set to bottom left corner so the Metaquotes logo is not blocked on the screen shot.
OffsetLeftRight = 0, adjusts the overall distance left or right in points that the labels are from the Corner.
The above two settings allow the labels to be placed anywhere one wants in the window.
FontSize = 10, is the font size for the labels
FontType = "Arial Black", is the font type for the labels.
FontColour = DarkOrange, is the label font colour.
LabelsInBackground = false, sets the labels to over-write other objects.
SpaceBetweenLines = 4, adjusts spacing between lines of text (may need if changing font size).
WindowNumber = 0, main window is zero, indicator windows are 1 through how many are on chart. This allows labels to go in another indicator’s window such as MACD to save space on the main chart. If one turns off the Visualization for say the MACD indicator for the active chart on which one wants the labels, the labels will not be visible.

AllLabelsOFF = false, turns off all labels.
PatternAndFileNameLabel_1_ON = true, turns on Label_1 (the first row of the labels)
DisplayFileNameInLabel_1 = true, turns off the file name of the indicator in label 1.
RiskAndRangeLabel_2_ON = true, turns on Label_2 (the second row of the labels)
ShowScreenShotsON_Label_3 = true, usually leave as true so one knows that Screen Shot is on unless it is in the way. One does not want to forget about Screen Shot being on and have one’s hard drive fill up.

ShowFileNameInComment = false, turn on or off Standard MT4 title Comment in top left corner of chart. This shows the file name of indicator. Normally leave this set to false so it doesn’t block comments of other indicators.

1) Often labels and indicator window charts will not be captured by the automatic screen shot.
2) Sometimes on start up or chart changes while data is loading, alerts for current patterns trigger. You can silence most subsequent alerts on chart changes by cycling through each chart period once after start up.

Anyone who knows how to fix these, please advise.


I send big thank you to Eugeni Neumoin known as nen, the developer who wrote the ZUP code. It is truly amazing work.

An interview with nen can be found at this link:

The Russian forum for the development of the ZUP indicator is found on this thread:

One may also find nen's ZUP indicators at the beginning of this thread:
Harmonic Trading

Another discussion of harmonic price patterns can be found on this thread:
Price Patterns(Gartley,Butterfly,Bat,...)

Discussion of the old version of WRR_ZUP_INFO_v02.mq4 (i.e. ZUP_v67.01_WRR_ZUP_INFO.mq4) starts around page 11, post 108 of this thread:
Price Patterns(Gartley,Butterfly,Bat,...)

This new version, WRR_ZUP_INFO_v02.mq4 is found on page 26, post 251 - 254 on this thread.
Price Patterns(Gartley,Butterfly,Bat,...)

A further discussion of harmonic patterns is found on this thread:
Harmonic Trading