Too Good to Be True Why it is Never True ~ forex trading los angeles

Yesterday while I was searching some forums and reading the comments of the posters I came across a conversation about the very traditional saying "if it is too good to be true, it probably is". As I read more I saw some very interesting aspects about the way in which the conversation was being carried out, specially the opinion of one of the debaters who was against the hypothesis claiming that is was nothing but mediocre and destructive to a person with an "achieving" personality. Today I want to write a post about my opinion about this "too good to be true" issue and how I feel it is a very valuable piece of common knowledge based on hundreds - or even thousands - of years of human experience. In particular I will discuss its relationship with automated trading and why it is extremely importance in this field
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First of all, we need to understand the nature of this timeless phrase. Why does it exactly mean and what is the power behind it ? What do people mean by "too good to be true" ? Generally this sentence speaks about the overall human experience in the sense that it reflects the expectations of the general public. When someone tells you that a certain endevour sounds "too good to be true" it means that you may be drastically underestimating the efforts or the actual real possibilities of doing what you are intending to do.

As a clear example, imagine that you lived in the 19th century and you told someone "I will be building a machine to fly in one week". They would tell you that it sounds too good to be true and the actual truth is that you would have found the endevour much more time consuming and difficult than what you originally thought. It is worth noting that the saying does not necessarily limit the possibilities of what can be done but generally the manner in which things can be carried out meaning that if something that was "too good to be true" could be done in that way, you wouldnt be the first person doing it and it wouldnt be too good to be true after all, because it would be true.

So how does this all apply to automated trading ? It applies in a very simple way. If it was possible and so simple to turn 500 USD into 1 million in 5 years, then it would have already been done and it wouldnt be considered too good to be true. However, since achieving this extremely high capital returns isnt something which is being done by the worlds top traders or trading organizations (or anybody else for that matter... if you have an example in automated trading I would absolutely love to hear it) then it simply falls within this category with very good reason.
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Is living from automated trading too good to be true ? The fact is that if you are thinking about placing a robot on a trading platform and letting it to work like an ATM for you then it certainly is too good to be true. Othewise dont you think that the thousands of people who have learned about automated trading would be living from it right now? The reality is that most of these people are actually not making any income from automate trading but they are losing money trying to achieve the situation which is just "too good". However - as I implied before - this does not mean that living from automated trading is impossible, it merely signals that the way most people are following is just wrong. Living from automated trading is possible but the truth is that it will require a LOT of study, a LOT of work and MUCH more capital that what you have been told and - not surprisingly - it is not something everybody can do; it is a long journey filled with frustration and hard work which - alike most non-luck based roads towards wealth- is simply not travelled by the vast majority of people.

In my mind, I dont think that the "too good to be true" saying is intended to be discouraging, mediocre or destructive - on the contrary - I think that it is meant to be protective as it certainly points out that the roads towards wealth exist but they are not short and they are not easily travelled. In the end there is nothing special about you or about me and if the easy ways to achieve massive riches in automated trading were really a reality, we would have both achieved that goal without any effort a long time ago (and therefore it wouldnt be too good to be true either !). In reality the best thing you can do for yourself is to find out what can be realistically achieved and put all your hard work into. Forex automated trading - as I have said several times - is not a gold mine for you to avoid work and sit on a beach to drink Margaritas all day. The journey is far harsher and demanding than your average 9 to 5 job, but so is the end much more rewarding.

If you would like to learn more about my perspective in automated trading and how you too can build systems with realistic profit and risk targets which use sound trading tactics to profit from the market please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Forex Trading NO LOSS Strategy ~ forex trading money

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Forex Trading NO Loss Strategy

With Proof 

People who have not experienced much in Forex trading. This strategy specifically for these gentlemen is a very useful thing.

After working for several months on this strategy we can say this with full confidence.
You can Earn a good profit Daily with this Strategy.

This strategy is very simple and easy to use.

Account Type: Any Micro Account.
Broker : Any Broker.

How to Use This Strategy: We Provide all information about this strategy
when you buy this No loss strategy.
Also you will be guide with the help of Skype. and we provide a training video.
If you want to ask any question.
Feel free to contact with us on instaforexreal@gmail.com
Skype: Geynstuff

Proof : This is only 5 Days Trades History.

All Trades Close Automatically. All Trades Targets Hit Automatically.

 This not a Robot this is a Real earning way.

Deposit : 500$
After 5 Days Belance  :1057.60
Total Profit : 526.13

Dont waste time and dont waste your money. Get this strategy and Earn Real Money.

Payment Process: Skrill, Perfect Money
Pay only one time: 200$
Lifetime opportunity, Golden Chance
Feel free to contact with us on instaforexreal@gmail.com
Skype: Geynstuff
Please note: if you are not satisfied after learn. we will not refund the payment.

Watch This Video

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Forex Expert Advisors Forex Wealth Robot an Unbiased Review ~ forex trading live chart

It seems that new robots keep comming out everyday ! A few days ago someone left a message on the websites chat asking me to review a new forex trading system called Forex Wealth Robot. In order to honour this visitors request I will be writting about this trading system today. Within the next few paragraphs you will find my analysis of the evidence provided on the systems website. I will talk about the reliability of the evidence and if it can or cannot backup the authors claims about the systems profitability. I will then examine the evidence in detail and give you my opinion about the Forex Wealth Robots profitability and whether or not it is actually worth buying and testing. Is this expert advisor able to deliver consistent, huge profits in forex trading ? Can it live up to its work ? Is there actually proof to backup the authors claims ? Keep reading to find out !

The website starts with a very misleading statement, telling you that you could make more than 8K in one day in 2010 with "default settings" however no reference is ever made about initial trading capital or the risk taken to bank those 8K. It always upsets me that these EA sellers target new traders in such a blunt and bold faced manner without any ethics or honesty. The claim made of an 8K profit in one day simply makes no sense. Besides, the fact that there is no evidence that this trade was EVER taken in the real market points out that this trade was never placed and no one EVER banked those 8K.

The Forex Wealth Robot does not do any better after this, the rest of the website talks about an obviously false story about a guy who worked for a "huge bank" and "stole" their automated trading system only to make a metatrader EA and sell it. Yeah right. But well, I dont care about the story as long as the evidence provided is able to backup the sellers claims about the systems profitability.

However, when we look at the available evidence of profitability we find - sadly and not surprisingly - only backtesting results which dont have even full statements available. All we see are pieces of backtesting statementes which are portrayed as being results of live trades. This is absolutely dishonest as it is misleading people not familiar with the statements to believe that the system was traded live and made those profits when the reality is that those trades were NEVER taken on any live account. The messages on top of this hand-picked sections of the backtest are also cleverly placed to hide SL and TP values, reason why we cannot truly estimate the trading tactic or risk to reward ratio of the system.

Evenmore, the extent of the backtesting periods shown is not known and clear 10 year backtesting statements are simply NOT available. There is also a total absence of any live testing information so we cannot trust the validity of the backtesting results as live/back testing consistency results cannot be taken into account. In the end, this trading system seems to be a lot of hype and a complete absence of any real and reliable evidence. Due to the misleading picturing of information, the complete absence of full backtesting statements and - more importantly - due to the TOTAL absence of investor-access verified live trading results, this trading system is DEFINITELY NOT worth buying and testing. This guy who is a so called "proffesional" does not even trust his system enough to risk his own money, he doesnt show any real evidence of his supposed "success" with the system neither does he show his "beta-tester" results, which SHOULD be available according to the story. This truly is not only a display of an untested and very hyped system but a perfect example of dishonest and unethical behavior.

If you would like to learn more about automated trading and how you too can learn how to trade with a high like hood of long term profitability using automated trading systems please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Nadex ITM V4 Results so far Live Trading ~ forex trading news events

I am running a live test of one of my indicators this week for Nadex. Several people have asked to see the results. I will update as it goes along.

Sell 02/23/15 10:12:34 AM 1 AUD/JPY >92.81 (11AM) @ 23.75 -$76.25

Fee Payment 02/23/15 10:12:34 AM 1 AUD/JPY >92.81 (11AM) @ 23.75 -$0.90

Settlement Payout 02/23/15 11:00:06 AM 1 SHORT AUD/JPY >92.81 (11AM) @ 23.75 $100.00

Fee Payment 02/23/15 11:00:06 AM Expiration Fee: 1 SHORT AUD/JPY >92.81 (11AM) @ 23.75 -$0.90

Sell 02/23/15 11:28:26 AM 1 EUR/GBP >.7346 (12PM) @ 32.25 -$67.75

Fee Payment 02/23/15 11:28:26 AM 1 EUR/GBP >.7346 (12PM) @ 32.25 -$0.90

Buy to Close 02/23/15 11:34:10 AM 1 EUR/GBP >.7346 (12PM) @ 6 $94.00

Fee Payment 02/23/15 11:34:10 AM 1 EUR/GBP >.7346 (12PM) @ 6 -$0.90

Buy 02/23/15 01:54:55 PM 1 AUD/JPY >92.79 (2PM) @ 59.5 -$59.50

Fee Payment 02/23/15 01:54:55 PM 1 AUD/JPY >92.79 (2PM) @ 59.5 -$0.90

Sell to Close 02/23/15 01:56:32 PM 1 AUD/JPY >92.79 (2PM) @ 82.5 $82.50

Fee Payment 02/23/15 01:56:32 PM 1 AUD/JPY >92.79 (2PM) @ 82.5 -$0.90

Buy 02/23/15 02:45:14 PM 1 AUD/USD >.7791 (3PM) @ 88 -$88.00

Fee Payment 02/23/15 02:45:14 PM 1 AUD/USD >.7791 (3PM) @ 88 -$0.90

Settlement Payout 02/23/15 03:00:06 PM 1 LONG AUD/USD >.7791 (3PM) @ 88 $100.00

Fee Payment 02/23/15 03:00:06 PM Expiration Fee: 1 LONG AUD/USD >.7791 (3PM) @ 88 -$0.90

Buy 02/23/15 08:27:49 PM 1 AUD/USD >.7797 (9PM) @ 80 -$80.00

Fee Payment 02/23/15 08:27:49 PM 1 AUD/USD >.7797 (9PM) @ 80 -$0.90

Settlement Payout 02/23/15 09:00:06 PM 1 LONG AUD/USD >.7797 (9PM) @ 80 $100.00

Fee Payment 02/23/15 09:00:06 PM Expiration Fee: 1 LONG AUD/USD >.7797 (9PM) @ 80 -$0.90

Sell 02/24/15 06:29:52 AM 1 USD/CAD >1.2640 (7AM) @ 27 -$73.00

Fee Payment 02/24/15 06:29:52 AM 1 USD/CAD >1.2640 (7AM) @ 27 -$0.90

Buy to Close 02/24/15 06:36:57 AM 1 USD/CAD >1.2640 (7AM) @ 6 $94.00

Fee Payment 02/24/15 06:36:57 AM 1 USD/CAD >1.2640 (7AM) @ 6 -$0.90

Sell 02/24/15 10:08:05 AM 1 EUR/USD >1.1326 (11AM) @ 29.5 -$70.50

Fee Payment 02/24/15 10:08:05 AM 1 EUR/USD >1.1326 (11AM) @ 29.5 -$0.90

Buy to Close 02/24/15 10:20:03 AM 1 EUR/USD >1.1326 (11AM) @ 64.25 $35.75

Fee Payment 02/24/15 10:20:03 AM 1 EUR/USD >1.1326 (11AM) @ 64.25 -$0.90

Sell 02/25/15 10:29:45 AM 1 EUR/JPY >135.01 (11AM) @ 20.25 -$79.75

Fee Payment 02/25/15 10:29:45 AM 1 EUR/JPY >135.01 (11AM) @ 20.25 -$0.90

Settlement Payout 02/25/15 11:00:21 AM 1 SHORT EUR/JPY >135.01 (11AM) @ 20.25 $100.00

Fee Payment 02/25/15 11:00:21 AM Expiration Fee: 1 SHORT EUR/JPY >135.01 (11AM) @ 20.25 -$0.90

Sell 02/25/15 11:05:08 AM 1 EUR/JPY >135.17 (12PM) @ 20 -$80.00

Fee Payment 02/25/15 11:05:08 AM 1 EUR/JPY >135.17 (12PM) @ 20 -$0.90

Settlement Payout 02/25/15 12:00:16 PM 1 SHORT EUR/JPY >135.17 (12PM) @ 20 $100.00

Fee Payment 02/25/15 12:00:16 PM Expiration Fee: 1 SHORT EUR/JPY >135.17 (12PM) @ 20 -$0.90

Total profit so far $115.30

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Why There is No Universal System Differences Between Currency Pairs ~ forex trading glossary

Can we build a system that trades successfully on all forex currency pairs ? This has often been a question of the automated trading system world that simply asks if there is a universal inefficiency, an inefficiency that is so common that it can be found an exploited on all different currency pairs. Up until now, the answer to this question has been a resounding and unequivocal NO. To the best of my knowledge no system has ever been developed to work on all currency pairs despite the claims of many system sellers who tell you that you can use their systems on all of them. But why has it been impossible to build such a system ? Why does trading all currency pairs seems like such a big challenge ? The answer lies within the very fabric of the market and the way in which the different currency pairs trade and react. Within the following paragraphs I will explain to you some of the basic aspects of these currency pair differences and why it makes the creation of any universal system extremely hard if not impossible.

You may have been told that inefficiencies in the market arise due to crowd behavior- which is a human characteristic- and that all currency pairs in forex show it to some degree. When you hear this it becomes easy to think that if a system "really works" then it is bound to work on absolutely all the instruments available in the currency market. After all, every instrument is bought and sold by humans and this would make them inherently inefficient.

Certainly if all instruments traded with the exact same number of people and with the exact same objectives we would be able to easily find a universal inefficiency but the matter of fact is that this is not the case. The first dramatic difference between instruments is the number of participants and the inherent liquidity of each currency pair. Some pairs like the EUR/USD are very liquid while others like the GBP/CHF dont have 1/10th of the liquidity of the former so their price action is dramatically different and the inefficiencies within it become dramatically different. The less people who trade a given pair, the more efficient it becomes since crowd behavior becomes less pronounced and individual decisions start to play important roles.

Then we have other differences that also make the movements of currency pairs different. For example if you are trading the USD/JPY and there is a negative trade balance against Japan then there will be a given fixed amount of money each month that will pull the USD against the JPY just merely because of business transactions that have nothing to do with speculation. The volume of these transactions is very significant and the time in which they are processed and their magnitude will have an impact on the way in which a pair moves.

Many other factors such as central bank intervention and even cultural differences play an important role in the way in which a pair moves when compared to another and all of these factors help to explain why the finding of universal inefficiencies is so hard. However when you look at higher time frames (daily and beyond) there seems to be some coherence and this is the reason why some systems that target month or year long trends manage to exploit the same inefficiency on several different currency pairs. However the success of these systems along the whole portfolio is never total and more often than not there are very strong differences between the profitability of different currency pairs and several pairs where the systems simply do not work.

So will we ever find a global and total inefficiency ? I would have to say that probably no, but if there is a chance it will take a lot more liquidity on all instruments and a lot more market participants to make this the case. Certainly in the future if the market volume on the illiquid currency pairs increases enough we might be able to have - even though not a truly universal system - at least systems that will have better success along different currency pairs.

If you would like to learn more about system development and how you too can build your own likely long term profitable systems based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Why I am such an A hole about trading rules ~ forex trading news releases

Please forgive my rudeness but in this article, I will discuss the reason I am such an asshole when it comes to trading rules. I may piss a few people off but there is a reason to my madness. Read on...

I havent written in this blog for quite some time. Maybe I should start back up...

Ok Here goes. Point blank, if you get pissed off, or your feelings get hurt by what I am about to say, please do the following...

1. Take your  trading computer and smash it against the wall.
2. Cry out for mama.

Now why would I say this? The reason is this. Trading is a career choice, not a game. This is a skill that can feed your family or create the life you have always dreamed of. If you are a gamer and get thrills by trading the wild swings... If you get your rocks off by feeling the emotions of fear and panic or greed and thrill, then play your little game and go off to gamers world and find your other cartoon character fake people to play with. Use your magic pack of childhood wonder and play. Play till your heart is filled with joy. But dont you dare ask me why you lose constantly if you can not follow the rules that have been laid out for you.

Take a look at the following equity curve.

Nw this is from my forex signals via twitter. Do you see the dips in equity? Some days, we have several losers in a row. Does this mean we should scrap the system and mark it off as a losing system because we have several losers in a row? Nope.

There are basic rules in place to create this performance. We can back test these rules to show a probability of success. What happens if we begin to break the rules? I will show you in the following little narrative.

Lets create an example set of rules.

Rule #1 - Buy on a break of the high.
Rule #2 - Sell on a break of the low.
Rule #3 - Take profit at 20 pips
Rule #4 - Take a stop loss at 20 pips.

Disclaimer- This is just an EXAMPLE and not an actual set of rules.

Ok lets say that this rule set works and has worked over the past 10 years. Well, one day someone wil come along and say, " instead of buying at the high, what if i buy 2 pips before the high. Then another guy will come along and say, " instead of buying 2 pips from the high, why dont i buy 2 pips from the high only if the rsi is above 70? And then another guy will come along and say, " what if i buy 3 pips from the high when the rsi is above 70 and the macd is turning. Then another guy will come along and say, " I can buy if Rsi is above 70 and macd is turning n high volume. Then another guy will come along and say, " What if  buy when there is high volume and macd is turning and stochastics are confirming?"

Do you see the cycle? Do you see how the trade no longer makes sense and does not in any way resemble the original rules?

This is what happens all the time. A trader has a set of rules that work and then Joe Bow and his cronies come along and think they can do better or somehow make the rules better. Before long, they have a losing strategy and who gets the blame?

The creator of the original rules gets the blame and it goes a little something like this, " Yes Joaquin Trading sucks! I tried his shit, lost 3 freakin trades in a row! I tried everything to make it work with rsi, macd, etc... and his stuff is so bad! stay away!"

Well here is one thing to remember. If you ever find a trader or trading educator that has a nasty results record or loses 90% of the time, you have hit a gold mine. Think about it for a second......

Thats right, just do the opposite of what he is doing and make a fortune!

Now back to the rules...

If you have a rule set that works, why try to change it? If you can prove that it made money over the past X number of years, why screw it up? Thats the same as saying, " Yeah there is a guy who randomly shows up at my house each morning and gives me $100 but I think I can make him give me $300." Before long, you will be the one giving him $100 every day.

Trading is not a game. It is your job, your business, your money on the line. Trading is a way of life to allow you to live life to the fullest. If you want to play, then play on demo or play is a small account. If you want to succeed, find a system that works and do it. Dont change it.

I wish you success!




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Liquidity in Forex Part No 1 What it Means and Why it is Important ~ forex trading game app

The term "liquidity" is used a lot in trading and finances since it is a vital aspect of market behavior. However, people often use this term very liberally in forex trading often without understanding its exact meaning and the implications of high or low values of this particular property. On this article I want to explain to you what the term "liquidity" is, what it exactly means, its implications within a given instrument and why it is such an important characteristic of the market.

Imagine that we had 20 people standing on a circle with 19 of them holding empty glasses and one of them holding a glass full of water. Now we want to see how much time it will take for the person with the glass to pour it onto the next one and so on until the water reaches him/her again. What we find is that it takes a long time for the water to be exchanged along the full circle because only 2 players are able to participate (the one holding and the one receiving) while all the others have to stay on the sidelines, waiting for their glass of water. Now imagine that we give half of them a glass of water, the process is much faster since the number of active participants has now increased to include everyone, all the people are actually exchanging water all the time.
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Liquidity on the market is nothing else than the "water" in the above example, it is the amount of volume exchanged of a given instrument over a given amount of time. When there is high liquidity there is a lot of volume being exchanged and when there is low liquidity there is little volume being exchanged. When we have a lot of volume people can get in and out of the market easily (since there is always a buyer for every seller and vice versa) while when there is low liquidity the market gets "stuck" as people have to fight to get in or out of their positions. When there is low liquidity you also get harsher price movements since a person holding a position may be forced to drastically change the offering price to match what the other end - which is very scarce - wants. So while under high liquidity exchanges are easy and swift, under low liquidity prices move more erratically since the offered and accepted prices tend to have larger gaps between them. The consequences for the little trader are unpredictability and spread widening while for the large players the consequences are mainly not being able to get in or out of positions due to the lack of available exchange capacity.

Liquidity in the forex market is extremely difficult to read and study since the market has no central exchange but it is handled over a wide variety of banks worldwide in an over-the-counter manner. The volume of a given contract that has been exchanged during a certain period of time therefore becomes hard to read since it depends on the particular provider you are talking about. Even though the market is praised as being extremely liquid and huge, the fact is that this is only be true if you can access to all - or a lot - of liquidity providers (banks). If you limit yourself to just a few you will see that the liquidity you have access to is nowhere near the trillions of dollars people talk about.

When we are going to trade the foreign exchange market, knowing the liquidity levels of the instruments we want to trade is important since currency pairs with higher liquidity tend to be "easier to trade" since they show more inefficiencies characteristic of crowd behavior while instruments with low liquidity tend to show a more random walk much more characteristic of individual investor behavior. Therefore, instruments that are very liquid tend to be easier to exploit using mechanical trading systems while those that dont tend to be much harder to trade. However, as the time frames get bigger liquidity starts to become a less important factor and crowd-based inefficiencies still arise. This is the main reason why you should look for strategies based on larger time frames and longer period indicators when attempting to design systems for illiquid instruments.

On tomorrows post I will discuss the inner aspects of liquidity in the forex market a little bit more, I will discuss some of the currently available literature about the subject in economics and the liquidity characteristics of different currency pairs. If you however would like to learn more about automated trading and how you too can start designing and programming your own systems based on realistic and sound strategies please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Weird Arbitrage Opportunities in Currency Trading The USD COP Case ~ forex trading germany

Have you ever dreamed about making money with absolutely no risk of loss in the currency trading market ? Did you think that such opportunities did not exist ? Contrary to most peoples belief in the fact that there are absolutely no arbitrage opportunities in currency trading I have personally observed the contrary for perhaps the past ten years in a very weird occurrence that seems to be absolutely particular to the USD/COP currency pair. The COP - or Colombian peso - is the main currency unit of the Colombian government and some extremely weird arbitrage opportunities are presented within Colombia to make substantial profit from USD or EUR exchanges. On todays post I will share with you this very strange case and why it leads to a rare inefficiency which doesnt seem to be present anywhere else.

The USD/COP is what many would call a "strange" currency pair. The pairs spread is usually around 0.1-0.2% of the pairs value and daily fluctuations can go from 2 to 10% of the exchange rate. This sometimes crazy volatility makes trading this pair hard (for anything but long term trading) but it also makes local Colombian currency exchange houses maintain some exchange rates away from the real interbank FX rate when very large fluctuations occur to avoid having strong monetary loses.

What happens here is that a great arbitrage opportunity is created that is actually quite strange. For example in early 2009 the USD/COP went from 1800 to nearly 2600 in a matter of a few months and the local exchange houses kept their exchange rate near 2000-2100 due to the fact that raising the rate to 2600 would cause them loses due to their previous peso reserves against the USD. Since most currency houses lack proper diversification and protection measures they need to eliminate their own loses by keeping exchange rates artificially low (although the time period this lasts is limited).

The opportunity arises since you can go to a currency house, exchange COP for USD at an exchange rate of 2100 then you need to physically take your money to the US (yes, you need to travel) then deposit it into a US bank and withdraw it through a wire transfer to Colombia at the FX rate of 2600. If you think this would have been impossible due to some reason, the fact is that I know several friends and traders who actually did the trip and managed to get 20% profits in a matter of days. I even had a friend who did the trip three times and made a 60% return over his initial "investment". Of course, the arbitrage opportunity is limited by the fact that you can only take 10K USD in cash out of the country legally per trip but it does give you the chance to get some risk-free profit from currency exchanges.

The reasons why this bold inefficiency exists are many but probably both the above exposed lack of proper protection from strong currency moves and the general injection of money from the drug industry into currency exchange houses could make this arbitrage opportunity both a consequence of money laundering and inefficient handling. The fact that a very small percentage of the population has US or EU visas and bank accounts in the US and EU needed to finish the transaction could also explain why this is not exploited to the point where the market is made efficient.

Of course the fact that exploiting such an inefficiency could also be supporting the drug industry has made me refrain from ever taking part in this game but certainly there is an arbitrage opportunity that I know many have taken advantage of to get massive profits when these small windows of opportunity arise every 2-5 years. Definitely a weird occurrence that is worth noting and discussing. If you have any opinions please feel free to leave a comment below :o)

If you would like to learn more about my journey in automated trading and how you too can build your own automated trading systems based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Why the 90 Trader fail in forex ~ forex trading miami

90% of Most Novice traders Fail in forex

Most of the Novice traders believe that Forex Trading is a gamble!.

Why do traders Fail?

They trade with the aim of getting lucky to

Make Money.

Their greed exceeds their need.

They think trading is a game of chance and

luck and do not get the proper knowledge and education

to succeed.

They dont favor to invest enough time and 

amount for education and mentor-ship.

They have poor focus.

They are more emotional than intellectual.

After failing, they want to make up their loss;

therefore they may further incur loss.

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Why are Five Years Statistically Significant for the Evaluation of Trading Systems ~ forex trading expert advisors

Every time someone asks me what I consider to be the minimum necessary period to evaluate a trading system to know if it has a chance of being profitable under future market conditions I unequivocally say "five years". However - although I have explained vaguely in the past why - I have never written a precise explanation that tells people exactly why this is the case and why systems evaluated over at least 5 years have a better chance of surviving than those evaluated over a 1 or a 2 year period. Through the following paragraphs I will tell you the reasons why this is the case and why using this as a minimum period of evaluation guarantees that systems will have a certain degree of adaptability and the possibility to survive to future market conditions.

The first thing we need to ask to understand the 5 years argument is : What changes when market conditions change ? When you analyze any trading instrument and look for changes in the different quantitative characteristics of the market you will notice that changes in market conditions are usually accompanied by changes in volume. This happens mainly because market participants trade more under rough market conditions and less and more orderly under growing market conditions. In the end what you have in an economic cycle is a series of cycles in volume. Since volume is proportional volatility (which is just a way to measure the length of the movements within an instrument) we find that volatility changes as market conditions change. Generally markets in which the economy is growing are steady and quite non volatile while markets where there is a lot of economic turmoil are extremely volatile.

If we then consider that changes in market conditions correspond to changes in volatility then in order to have a sufficient variety of market conditions for the evaluation of a trading strategy we need to have a large enough amount of change in longer term volatility. When you look at the daily or weekly charts of any given instrument, you will notice that volatility within most years tends to change very little while periods of 5 years usually contain large changes in volatility. The graph shown below of the EUR/USD weekly chart clearly shows you the changes in volatility during the past 10 years (as the 14 period ATR indicator). You can see how any given one year period has an almost static volatility while periods of several years, especially 5, have large changes in volatility.
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The period of 5 years comes from an analysis about these variations in volatility. If we take a look at any instrument and consider the time it takes for an instrument to go from its average level of volatility to a new high and a new low and return to the original level we find that this period is roughly 5 years (like how it is shown above). This means that after a period of five years there is a large amount of different market conditions that a system needs to tackle if it wants to be successful. Therefore a system that survives to testing periods of more than 5 years has a high like hood of surviving to changes in market conditions in the future since it contains - within itself - the capability to adapt to changes in market conditions.

Of course, a 5 years period does not implicitly guarantee that any given system will be able to achieve success in the future since the market can change further or at a faster phase than what the system sustained during that 5 year testing period. However it is true that to survive profitably through such a long period a system needs to have some degree of adaptability that is not necessary to survive to shorter testing periods when hardly any changes in volatility happen during most years. It is for this reason that evaluation of strategies through prolonged periods of time is necessary since short tests of just a few years may only show how the system behaves under some very specific market scenarios. Of course, the longer the period you use for your tests and the larger the overall chances in volatility, the more robust your system will need to be.

If you would like to learn more about the evaluation of automated trading systems and how you can evaluate and create your own systems that return profits after 10 years of evaluation without exploiting any backtesting faults please consider joining Asirikuy.com, a website filled with educational videos, trading systems, development and a sound, honest and transparent approach automated trading in general . I hope you enjoyed this article ! :o)

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