When you're trading through a retail broker, there is no way to avoid the spread. In fact, you can compare the spread to the 0 in roulette, and it is one of the most important reasons why people wipe their account (which can be speed up by excessive ...

avoiding paying the spread

Thanks for the contributions so far. As of now, we have identified a number of pros and cons of big accounts: ++++ +Access to liquidity networks with tighter spreads. +Psychological: Bigger absolute returns reduce likelihood for all-or-nothing ...

Account size

Correct me if I'm wrong, but the way I interpret the lessons learnt is that [1] means "Don't average up!" and [2] is a given. From a quantitative perspective, there is a handful of parameters that determine whether or not money management can ...

Optimized Risk vs Reward Equation

Maybe the next trade isn't 100% independent of the previous. There are rather few edges that remain over time. In my opinion you should look at the bigger picture to identify whether stuff went wrong or not. Can you spot things that have changed on ...

How is trade-review useful?

I've thought about it a couple of times. These are my conclusions: What happens during the weekend can for now be assumed to be totally random, so the probability for a positive gap is just as big as a negative one. So, when is keeping positions ...

Holding positions over weekend

There's one thing you need to know about the random walk, and that is that the current state is the best estimation of the future state. Remember that the random walk has no memory! Relating this to your example: if you followed the outcomes of a ...

Tick Statistics

I like your trade. You got the trend on your side, and the bears that entered on the retracement probably have thinned out liquidity above the .96 level by setting their SL buy orders there (or at .92 on USDCAD for that matter). Therefore, I expect ...

james16 Chart Thread

I'm curious, where do you live? I can't believe 30% of the people have an iPhone. For example, 30% of all smartphone users sounds like a more realistic statistic I do believe that execution on an iPhone can be made very convenient, but probably ...

How many of you trade on an iPhone?

Hehe sorry, I haven't read the entire thread yet.

Systematic trading

May I ask what you use for backtesting?

Systematic trading

In my view many people don't consider the versatility of the martingale system. I used to be on the side stating that martingale doesn't work, and under certain assumptions they're still right: of course on the long run it alone doesn't have an ...

Why martingale doesn't work in trading

Ok this is how I closed half the position size on my FXopen demo. You should be able to enter a position in the opposite direction as your initial position. Select the lot size that is half the initial position. Now you're half squared (half of the ...

james16 Chart Thread

Going to add to my EURGBP short position if price breaks below .82

james16 Chart Thread

The table should state nominal interest rates Interest rate parity tends to hold in the long run. However, in the medium and short run, exchange rates can greatly deviate from IRP. You ask if we use this in our trading. I don't, because IRP is like ...

International Fisher Effect

So how do you define trading "efficiently"?

Why inverting trades doesn't work?

Just some general stuff. Did you take random entries? Did you include transaction costs (I guess not, since it isn't necessarily relevant for finding the fundamental differences between martingale and anti-martingale)? How did you determine after ...

Optimized Risk vs Reward Equation

I'm not sure about actual trading back then, but you have to keep in mind that several currencies were pegged back then, just like the Danish krone is pegged to the euro right now. Clearly the Deutsche mark was the biggest currency back then, and ...

Forex Before the Euro - What Was It Like?

Could you shed some more light on the research you did?

Optimized Risk vs Reward Equation

You could program your EA so that it doesn't set limit orders, but sets market orders when certain events happen. This way you avoid the "time-issue" you mention, and you will have a method that is both practically as well as theoretically a true ...

Why inverting trades doesn't work?