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midge
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Username: midge

Post Number: 284
Registered: 10-2002

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Saturday, July 24, 2004 - 11:17 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Timeframes...

If you believe, as I do, that an instrument (forex spot) has as much chance of going up than going down, it doesn't augur well as a trading instrument, especially in that unlike many other instruments (stocks, cfd's, options etc.) they cannot rise forever or fall forever (specially the majors) since they all balance each others, or move “relatively” to each others. In theory, over a long period of time there should be as many ups as downs.

It doesn't augur well, unless we can somehow exploit some characteristics of the movements. What I was looking for when developing this system was an exploitable movement characteristic, namely the length of a trend. The basic assumption was that if half the average length of a trend provided a gain sufficient in relation to the amount at risk (assuming that half the trends would be longer than the average and thus profitable), then it was a tradeable characteristic since it would have a positive expectancy to enter all trend changes. The system also had to work across most pairs and over all types of market conditions (hence the use of 20years+ back tests). The only thing left to do was to look for time frames where the trends were sufficiently long or offered sufficient potential gains.

Looking at forex charts, it is very obvious that pairs are trending a long time on the weekly and daily charts. These are obviously tradeable even discounting the time to get a positive trend identification after the apex of a change in the trend. By this I mean the amount of pips that you don't take from the apex (top or bottom) waiting for a positive signal, waiting for a positive identification of a trend change. If the rules identify too late, you miss a lot of the beginning of the trend and give back a lot at the end, too early and you get stopped out and miss the rest of the trend.

This system seems to work well on some smaller time-frames as well, at least down to 1H, maybe 30min., and some of the parameters could be twigged to suit the smaller time frames better, but I use it of the daily charts and use smaller time frames for timing of entry or exits sometimes.

Now that the time frame is established, my next installment will be on how to generate trend start and end signals.

I must say that in developing a system and back testing, past results are not guarantee of future results. So caveat emptor...


MidGe


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midge
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Username: midge

Post Number: 285
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Saturday, July 24, 2004 - 12:18 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Trend, Entry and Exit signals Part 1

A classic way to identify trends is with breakouts (a higher high or lower low). This is the basis of the legendary turtle system amongst others.

I ran some optimisation based on close > highest high for last N periods, or close < lowest low for last N periods. Effectively trying out a few thousand combinations of values for N to find the optimum ones over many simulations.

For identification of trend start long I found 27 periods the better for a number of reasons/fits, and for shorts 20 periods was the choice. For identification of trend end long, 10 periods was the best and for trend end short 7 periods.

Metastock formulas:

LongEntryTrigger :=
CLOSE > Ref(HHV(H,27), -1)
AND
Fml( "MdG_BULL_TREND") ;

LongExitTrigger :=
(LOW < Ref(LLV(L,10), -1))
OR
Cross(Mov(MACD(),9,E) , MACD()) ;

ShortEntryTrigger :=
CLOSE < Ref(LLV(L,20), -1)
AND
Fml( "MdG_BEAR_TREND") ;

ShortExitTrigger :=
(HIGH > Ref(HHV(H,7), -1))
OR
Cross(MACD(), Mov(MACD(),9,E) ) ;


As you can see I have added a MACD crossing to the exit signal formula. This avoids a fair bit of retracement at the end of a trend.

I also refer to the formulae MdG_BULL_TREND and MdG_BEAR_TREND. Those are other signals that signal whether or not trades should be taken within a broader context. A long trade should only be taken if the MdG_BULL_TREND is giving a “true” value. The absence of such a signal doesn't mean exiting the open longs. Conversely, A short trade should only be taken if the MdG_BEAR_TREND is giving a “true” value. The absence of such a signal doesn't mean exiting the open shorts.

I'll give the details and formulae for MdG_BULL_TREND and MdG_BEAR_TREND in my next post.

Meanwhile, past performance etc... is not guarantee of future performance.

Cheers


MidGe







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midge
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Post Number: 286
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Saturday, July 24, 2004 - 01:12 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Screenshot

Here is a screenshot of the system applied to USDJPY, notice that it doesn't trade from late november 99 to November 2000 as the market gets range bound (asc triangle). Also, the first visible sell signal is during a brief period where the context is bearish as indicate in the lower bar by some hachured red (green for bull and magenta for neutral).

Forex01

Cheers

MidGe

(Message edited by Midge on July 24, 2004)


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midge
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Saturday, July 24, 2004 - 08:50 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



MdG_BULL_TREND, MdG_BEAR_TREND

These two indicators aim to identify the trends in the larger picture, allowing us to take advantage of the epicyclic nature of price movements.

I have used the 27*5 and 20*5 type notation to emphasize the portion of the indicator whose realm is the weekly chart.
It returns a true of false value with respect as to whether there is a bull or bear trend in the next higher time frame (weekly).

Long trades as indicated by the primary breakout signal described in earlier posts are only activated if the corresponding MdG_XXX_TREND indicator returns true.

If neither the Mdg_BULL_TREND or the Mdg_BEAR_TREND returns true the system is in neutral mode and no new trades are entered regardless of primary signals.

Here are the MetaStock formulae:

MdG_BULL_TREND

If(CLOSE > Ref(HHV(H,27), -1)
AND
(
BarsSince( HHV(H,27*5)>Ref(HHV(H,27*5), -1))
<
BarsSince( LLV(L,20*5)<Ref(LLV(L,20*5), -1))
> 0), 1,
If(LOW < Ref(LLV(L,7), -1)
OR
Cross(Mov(MACD(),9,E) , MACD() ) > 0, 0, PREV)
);


MdG_BEAR_TREND

If(CLOSE < Ref(LLV(L,20), -1)
AND
(
BarsSince( HHV(H,20*5)>Ref(HHV(H,20*5), -1))
>
BarsSince( LLV(L,20*5)<Ref(LLV(L,20*5), -1))
> 0), 1,
If(HIGH > Ref(HHV(H,7), -1)
OR
Cross(MACD(),Mov(MACD(),9,E)) > 0 , 0, PREV)
);

This is the system. The next level is how to improve the performance by timing the entries. I'll explain this in another post if enough interest,

Meanwhile I am happy to answer any questions about this system.

I have the code for a Metastock Expert for the BULL/BEAR_TREND also and most parts, or at least parts, of the system for the following platforms: Metastock, MetaTrader, VisualTrading, TradingSolution, TradeSim if anyone has a particular interest,

Cheers,

MidGe


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justice
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Username: justice

Post Number: 262
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Sunday, July 25, 2004 - 11:46 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



midge,
Thanks so much for bearing it all.I have inevitably for you, just a few more questions.

Is there a source for the historical and live data feed that drives this puppy.

Is a DDE interface supported.

What are the MACD parameters?
12,26,9 34,5,5 ??

What is the literal meaning of: (I do not use Metastock)
Ref(HHV(H,27), -1)
Is it: High of previous period is the highest high of the last 27 periods.
??

Cross(Mov(MACD(),9,E) , MACD() ) > 0, 0, PREV)
??

NOT: BarsSince( HHV(H,27*5)>Ref(HHV(H,27*5), -1)
simply,
BarsSince
actual number of bars.
??

Have I missed anything?


Cheers, Ice.

(Message edited by justice on July 25, 2004)


Faber est suae quisque fortunae.
Each man is the smith of his own fortune.~ Appius Claudius Caecus

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midge
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Sunday, July 25, 2004 - 12:14 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



justice,

Here is the answer to your questions.

“Is there a source for the historical and live data feed that drives this puppy.”

It is not driven live as it is based on an EOD signal.

I get the historical data from a number of sources. My main one being the one available thru Metatader, which is free.

“Is a DDE interface supported.”

No, but it should not be difficult to do on the basis of the formulae I have given.

“What are the MACD parameters?
12,26,9 34,5,5 ??”

MACD() returns the value of the MACD indicator (i.e., the solid line).
The formula "mov(macd(),9,E)" returns the value of the MACD's signal line (i.e., the dotted line).

The MACD is the “standard” MACD. The indicator is really the difference between 0.15 and 0.075 exponential moving averages (whereas, when expressed in decimal form, the 12- and 26-day exponential moving averages are actually 0.153846 and 0.076923 exponential moving averages).

“What is the literal meaning of: (I do not use Metastock)
Ref(HHV(H,27), -1)
Is it: High of previous period is the highest high of the last 27 periods.
??”

Yesterdays highest high of the previous 27 days.

“Cross(Mov(MACD(),9,E) , MACD() ) > 0, 0, PREV)
??”

if the MACD signal line crosses above the MACD indicator, returns False else return the previous day value.

“BarsSince( HHV(H,27*5)>Ref(HHV(H,27*5), -1)
??”

Returns the number of periods since which the highest high of the last 135 days was higher than the previous day value. (That is a breakout).

Hope this help.


Cheers

MidGe


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justice
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Sunday, July 25, 2004 - 03:50 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



midge,
You'd said that the system was perhaps applicable to 30min and 1H timeframes also, so I had thought you may use intraday data as well and you had the Metastock script running every 30mins (for example) I assume it has DDE.
_MetaTrader_ has a DDE interface. If it had a script language or could export historical data also, it would be perfect simply on it's own.

Thanks again, all that's clear.
justIce

(Message edited by justice on July 25, 2004)


Faber est suae quisque fortunae.
Each man is the smith of his own fortune.~ Appius Claudius Caecus

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midge
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Sunday, July 25, 2004 - 04:29 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



justice,

I think you will need different values for the period parameters, but I suspect you will positive performance on smaller time frames, My simple explorations indicated so.

I like the daily because I think it is easier to trade and I like it's rhythm. It allows for plenty of reflection :-)

Yes I have access to intraday data as well (in any case you can download it from Metatrader).

I must add, that I use different platforms for my simulations, tests and optimisations, and I am not too concerned about exact performance but simply to know that there is an edge is sufficient.

I am currently trading this system, with small variants.

I have two open positions and none of the other pairs are close to giving a signal, they are all in neutral.

I think the system can be significantly improved by trying to buy on retracement and on a bounce of the stop. It gives a much RR ratio and probably adds 70 pips for both side (entry and exit - 30-40 pips each on average)of the trade. That's how I use it. I trail the price during a retracement with a stop entry to catch it's reversal.

Cheers

MidGe


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snifter
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Username: snifter

Post Number: 586
Registered: 11-2002

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Sunday, July 25, 2004 - 10:39 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Midge

Thanks for going to so much trouble to tell us about your system - although I have to admit you've baffled me with science!!

However, looking at your chart it appears that basically you're buying after an uptrend dips finishes and the uptrend resumes, and I presume reversing the process for short entries during downtrends?

Cheers,
Snifter


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snifter
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Monday, July 26, 2004 - 08:17 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Looking at my post above, due to a typo I realise its a bit confusing. What I meant to say is that Midge's system appears to go long after there's a dip during an uptrend...the system enters when the pullback is over and the uptrend resumes.
And uses the mirror image of that strategy to go short.
Is that basically correct Midge?

Cheers,
Snifter


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midge
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Monday, July 26, 2004 - 07:10 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



hi snifter,

The backbone of the system is to enter a long only if the weekly trend (my definition) is bullish and short if the weekly trend is bearish.

1) I define the trend via highest high value and lowest low value, using different parameters for entry and exit (periods 27 [HHV] & 10 [LLV] for longs and 20 & 7 for shorts).

2) I do essentially the same for the daily charts. Of course the parameters here are number of days rather than number of weeks.

3) I refine the signal (earlier exit) based on the MACD, etc.

4) I discretionarily time my entry following a fresh signal (as long as the weekly trend is on). Here I try to place the order on retracement by trailing the price with a stop buy for longs and a stop sell for shorts. This reduce my risk and increase my reward.

The result of the simulation above are based on non-discretionary entries, meaning the entry is based on open the day after the signal is first issued. Discretionary entries are supposed to improve the results and I am trying a number of ways to program this right now.


You could say that I am trying to take advantage of the epicyclic characteristic of price movements.

Hope this makes it clearer.

Cheers

MidGe


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snifter
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Midge

Thanks - your willingness to share your knowledge and strategies is appreciated by all on this forum.

Cheers,
Snifter


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staybaker
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Username: staybaker

Post Number: 40
Registered: 03-2003

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Hey Justice,

As one who chastises another for incorrectly using "wet" when "whet" was meant, I was somewhat surprised to see you thanking MidGe for "bearing all" when clearly he is "baring all"!

MidGe, brilliant stuff, much appreciated. Best of luck with it.

Cheers, Staybaker.


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wrx
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Good morning all,
i have been reading this thread with great interest, as i have been trading the forex for approximatly 6 months. At the moment i trade 2 pairs being usd/chf and gbp/usd, my reasons for this is that they move in opposite direction to each other, allowing me to trade both at the same time.
I have noticed on the daily chart for the usd/chf a declining wedge formation starting from June 2001, has just been broken to the upside.
my question for those more experience in TA analysis ( i still consider myself an apprentice) what would be the entry criteria and minimum price objectives. From all the books i have read on TA the minimum price objectives is calculated from the start of the wedge 5/7/01 18184 to break out point 27/7/04 12734 total points equals 5450. Also how long do you wait and what criteria has to be met for confirmation of this break out.

kind regards WRX :-)


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justice
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Wednesday, July 28, 2004 - 04:59 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi wrx,
Well to me 1.2825 would seem to be right at the top edge of the channel on a weekly USD/CHF chart. This would appear to be the level of any significant resistance for an assault higher.
As for targets a 20% - 30% ~1.4950+ from breakout point rise is "likely" according to http://www.marketscreen.com/help/chartpatterns/default.asp?hideHF=&Num=149
I personally don't believe it'll make it but I'm wrong 50% of the time. :-)
Good luck with it if your long already.

Cheers, Ice


Faber est suae quisque fortunae.
Each man is the smith of his own fortune.~ Appius Claudius Caecus

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justice
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staybaker,
You've caught me out , but please remember midge deserved chastising simply for being a drama queen.
Fun as it was.

cheers, Ice.


Faber est suae quisque fortunae.
Each man is the smith of his own fortune.~ Appius Claudius Caecus

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wrx
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Good morning Justice,
Thank you for your reply on the USD/CHF question it is very close to a break out this morning but does look like it is starting to lose momentum up here,is also at the 62% retracement of the previous range down from high of 13226 on 26/4/04 to the low of 12204 on 12/7/04 am looking for support at 12715 on any retracement which is the 50% mark,abreak below this would then give us a target of 12600.Alternatively a break above 12840 would give us huge upside potential although this is my less likely scenario but time will tell.I would also like to know what charting package you use,i am currently using power charts which is free but has limited functions would like to find something more advanced .Any feedback much appreciated.
Kind regards
wrx


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justice
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hi wrx,
I have NO faith in a sustained USD recovery. Making a decision as to direction of the CHF/USD is as simple as relying on that. The weekly chart is pretty convincing also.
If the 12840 is broken to the upside AND decisively it will turn my view of the US economy on it's head and I will have to think afresh. Unless there's also indeed some underlying Swiss catastrophy in the wings.
I'm using Metatrader (via Alpari) and it's free too. I can't recall where I downloaded it from so do a Google search on the above.


Cheers, Ice


Faber est suae quisque fortunae.
Each man is the smith of his own fortune.~ Appius Claudius Caecus

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snifter
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Sunday, September 12, 2004 - 09:32 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Anyone know anything about a Sydney based Forex broking firm called G.E.T. (Global Electronic Trading)

Snifter


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soma
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Snifter this link may be of help.

https://forum.incrediblecharts.com/messages/8/329623.html

Regards,
Soma


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snifter
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Soma

Thanks for the link....GET sounds a bit iffy in that they might artificially spike the price and cause your stop to get taken out.
CMC have a reputation for doing that, in fact a reliable source told me that its in CMC's fine print that they can do it.

Cheers
Snifter


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midge
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Sunday, September 12, 2004 - 08:44 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



snifter,

As far as forex is concerned, and I only trade forex nowadays, I have accounts with multiple brokers/Market makers, as well as access to datafeeds on demo platforms. I have often monitored the prices simultaneously, in real time. In my experience, although there are spikes, especially in periods of volatility, following announcements etc., CMC is one of the better company.

Cheers

MidGe


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snifter
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Midge
Interesting to hear your opinion of CMC. Am I correct in saying that CMC won't accept buy stop or sell stop orders above or below where the market is currently trading?
What I'm looking for is a Forex broker with tight spreads, will let you place buy stop orders (entry orders) above the market and sell stop orders (entry orders) below the market, doesn't artificially spike the data, and will let you trade any position size you want (within the confines of your account balance of course).

Do you know of any such Forex broker?
And are there any you would definitely steer clear of?

Cheers,
Snifter


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shawky
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Snifter
CMC do allow buy stop and sell stop orders with a few limitations:
1. FOr ASX CFDs they can only be used as protective stops
2. They can be used to enter a new position for ASX Indexes and as far as I'm aware Forex, US and UK markets.
3. The Buy/Sell stop order cannot be too close to the actual price. I think it has to be at least twice the spread away but can only vouch for ASX CFDs and indexes. With ASX CFDs below $1 the distance appears to be slightly wider for some reason (e.g. BPC, CRS)

Example: XEJ
Spread: 6112/19
Buy Stop: 6134 successfully placed, 6133 rejected

I am disappointed that I cannot do the same for ASX CFDs. The orders can be placed but will be rejected at execution simply because CMC cannot get Aus broker partners to provide the facility. They could if they wanted to, trigger a limit order instead.

Hope this helps, though Midge would know much more about it than I.

regards
Shawky


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midge
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Username: midge

Post Number: 295
Registered: 10-2002

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Monday, September 13, 2004 - 07:04 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hiya snifter,

No problems setting stop buy or sell, on forex. I also had no problem setting them on US CFD. As far as Aussie CFd's, I don't know as I haven't traded them for nearly two years.

Cheers,

MidGe


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snifter
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Monday, September 13, 2004 - 08:28 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Midge, Shawky

Thanks for your info.
Today I spoke with one of the owners of GET - Global Electronic Trading, in Sydney.

They allow you to trade any position size you want, but with most currency pairs if you trade less than 50,000 you cop an additional fee of 11 of the back currency.

No problem placing an entry order via a buy/sell stop order above/below the current market. Attach an 'if done' stop loss order to your entry order, no problem, profit taking orders OCO with your stop loss order can also be placed.
Your funds go into a segregated account and according to the bloke I spoke to, if his company goes broke your money is protected.
I believe the segregated account is standard procedure by law for Forex accounts.

GET told me their data, which obviously is provided by a secondary party, sometimes has spikes in it as does all Forex data, and that these spikes can sometimes cause you to be stopped out prematurely. If this happens they'll reinstate your trade. I mentioned that some companies have a reputation for deliberate price spiking, and his reply was that his company doesn't do it, and its not in the best interests of their reputation to do it.

Anyway, that's about the strength of what he told me and I guess its up to us to decide if we place our faith in them. I think I'll probably give them a try by opening an account with them.

Cheers
Snifter


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mosaic1996
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Tuesday, September 14, 2004 - 08:29 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Midge,

You made a distinction between Aussie CFDs and US CFDs. What is the difference?

Cheers,
Mosaic


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midge
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Hi Mosaic,

I think there are different rules for US CFD and AU CFD regarding stop entries and off market orders with CMC. I have not checked lately as I am not trading CFD's any longer, concentrating on the spot forex exclusively. It definitely was so at one point in time. This make sense too, as the US CFD's are based on much more liquid stocks and hence are easier to hedge for a market maker.

I hope I understood your question correctly and this answers it.

Cheers,

MidGe


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mosaic1996
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Tuesday, September 14, 2004 - 07:38 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi Midge,

Thanks for the response. Looks like I misunderstood your post - I missed the 'I also...' part of the post, thought that you were still speaking about forex rather than equities.

I am considering having a go at forex trading. At this stage I see it as an intellectual exercise/challenge rather than a necessity, and as such would keep my exposure relatively low. Needless to say if I can master it, I will increase trade size to generate income on an ongoing basis.

My understanding of the situation of forex trading at CMC is as follows:

A Case Study/example.

If I go long aud$ versus the usd$ - say 100,000 contracts (assuming 1 contract equals aud$1.00) when the audusd spot is usd$0.70

With CMC, my understanding is that in essence I have
a) borrowed usd$70,000 and this will be debited to my CMC usd$ account, and I will pay interest at the full USA cash rate (currently 2.25%[?])
b) converted this usd$70,000 loan into aud$100,000 which is credited to my CMC aud$ account, and I will earn interest on the full Oz cash rate (currently 5.25%[?]).

Now assuming that the spot audusd rate doesn't change I would be earning an annualised interest differential of 3% (5.25-2.25 assuming I have the current rates correct).

Clearly if I go short the aud$, then on a net basis I would be charged the interest differential.

Obviously any change in the exchange rate would result in profits or losses.

I have 2 questions,

a) is my understanding of the interest treatment by CMC correct
b) do other providers of forex trading offer the same interest charge environment.

Cheers,
Mosaic


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midge
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Tuesday, September 14, 2004 - 08:32 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi Mosaic,

You are essentially correct about the interest. Note that it is lower than the official rate by 1.5 to 2% (the market maker's cut).

One way of thinking about this is, since you are working on margin, that you simultaneously borrow the full amount of the first currency in the pair and you lend the second, if you are going short the pair. The reverse applies if you are going long. When you close the position, you call your loan on the second currency in the pair and pay off the one on the first, again if going short, the reverse if you go long.

There are differences in interest rates with different brokers. The difference between brokers can also be in the way interest is calculated. OANDA, for instance, calculates interest on a minute basis whereas CMC does it daily for positions open at end of day. I find that interest is a very small element of the total equation and feel I can safely ignore it. That may be different, depending on your margin use and time frame. Other differences between brokers can be the spread and whether they are spikes in prices, which may be evidence that a broker tries to clean stops. This may make trading short-term more difficult. Bear in mind that there is no central market/authority for forex.

Cheers,

MidGe

(Message edited by Midge on September 14, 2004)


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oski
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Wednesday, September 15, 2004 - 08:20 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Hi Mosaic,
If you want to trade forex only, get a good broker with good trading platform. Start trading mini account (1 contract =50, 000) or normal account (1 contract = 100,00). Trade no more than 4 pairs, the most traded is EUR/USD, the slowest is AUD/USD.
For Mini Acc you need min. US$ 2000.00 and for normal acc. US$ 20,000.00. Trading is free of any fees.
Oski


Mess with the best, loose like the rest.


Note: This represent my individual opinion, therefore individuals should formulate their own trading decisions or seek professional advice to minimize risk to their investment portfolios.

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wheeler
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Registered: 08-2004

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Saturday, October 16, 2004 - 04:21 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



Anyone know of a free historical fx data site? Two year's would be enough.


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smithy
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Username: smithy

Post Number: 3
Registered: 06-2004

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Sunday, October 17, 2004 - 07:34 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



This little program is the one, you can get different types of timeframes.
May have to format spreadsheet, dependant on software.

http://worksmarts.com/download/

Data from below website if you don't wish to use program.
http://freeserv.dukascopy.com/exp/

Cheers
Smithy







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josbarr
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Registered: 03-2004

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Tuesday, November 16, 2004 - 01:05 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



LONDON (Dow Jones)--After a weaker start, the dollar is slightly firmer
midday Monday in Europe.

The turnaround came after the U.S. currency was pushed down to new
multi-month lows against the euro and the yen and investors started to worry
about the risks of official intervention.

U.S. Treasury Secretary John Snow also helped to inject a little positive
sentiment by repeating that the U.S. still supports a strong dollar policy.

Talking to reporters in Dublin at the start of a week-long visit to Europe,
Snow said a strong dollar "is in America's interests."

But Snow also admitted that markets are driven by fundamentals and so failed
to erase the underlying impression that the U.S. is content with the dollar's
recent decline. Friday, an unnamed Treasury official was quoted as saying that
the currency market is "operating very well."

At the start of the day, the dollar fell as low as Y105.19 and the euro rose
as far as $1.2997 as hedge fund selling drove the currency lower.

In the case of the yen, the dollar wasn't helped by a strong performance in
Japanese stocks, with the Nikkei rising 208 points on the day.

Market analysts said the greenback was entirely ignoring positive U.S.
economic data last Friday, including a healthy 0.2% rise in retail sales last
month, with investors focusing on concerns about funding the country's current
account gap.

As the dollar slipped closer to Y105.00, the market got nervous over the
risks of intervention by the Bank of Japan, which is seen keen to prevent the
yen from losing any more competitiveness.

Japanese Finance Minister Sadakazu Tanigaki repeated recent warnings that he
is prepared to act against the market if needed.

The market is less concerned about the risks of intervention against the
euro's rise. But with European finance ministers meeting in Brussels Monday,
few are willing to push the euro beyond recent highs in case there is a new
round of criticism about its advance.

ASX Stocks 20-minute delayed

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