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Lot sizing your deals is a fundamental Forex trading skill. It allow you to risk the percentage you have decided on for your deal. Let’s say you want to risk 2% of your account on every deal this indicator will calculate the exact lot sizing required. The other advantage of lot sizing is that you risk the same percentage on every deal is that it does not matter wether your stop is 150 pips or 15 pips your deals will always be exposed to the same loss determined by the % of your account.

So all you need to do is enter the percentage you are prepared to risk and the size of your stop loss and the indicator doed the rest.

It show you the lots size required as shown below. This is prticularly handy when the pip values differ from currency to currency

To download this lot sizing indicator please click here >  Lotsizing Indicator 

As you know we recently did a mentorship service for traders who were battling with a particular technique. One of the interesting facts that came out of this service is that very few Forex traders ever analysed their trading results. Very few could come up with basic trading statistics such as success rate, average value of winners, average value of losers, Number of transactions, number of losers, number of winners, actual risk return ratios achieved etc. One of the systems introduced to the mentorships service was actually very profitable when the results were analysed and quantified.

Believe me this is basic Forex trading analysis information you must have at your fingertips. It is basic information to manage your Forex development and career. It also make mentorship very difficult as your strengths and weaknesses are not quantified.

It is the type of information that made me decide not to trade on Fridays. Years of record keeping convinced me that playing golf was a better thing to go than trade on a Friday.

One of our clients introduced us to a great Forex trading analysis service which give you a complete analysis of your Forex trading account. You can use as many accounts as you like and even create a portfolio which will also be analysed for you. The biggest plus is that it is totally complimentary.

We have been testing this software and below are some of the results analysed by the service. These are only a very small portion of what is available.

You can for instance get results based on your technique used (there are 35 columns of ways of present info) :

You can get results by day:

Analysis of winner and lossers

Remember it is free. So just join this great Forex trading analysis service and link your MT4 account for a complete analysis.

http://www.mt4i.com

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Designing and Finding your best Forex Trading system is actually a lot easier than Forex traders realise and much more beneficial in the long run. It is basically a process of elimination of all the Forex trading techniques in the Market (100%).

The first question is to decide what time of day you want to trade and for how long. If you only have 30 minutes a day you immediately can eliminate scalp trading techniques. If you have 2 to 4 hours a day you should consider scalping or session trading and eliminate longer term trading. So you could eliminate 50% of every Forex trading technique.

Secondly you need to decide if you mainly like breakout (or trend) trading or bounce (or retracement) trading. Depending on your answer you can immediately eliminate 50% of the previous 50% and be down to 25% of systems out there.

You should then decide if you want to use a high success high risk approach or a low success low risk approach. This high success high risk Forex trading techniques are ones that use big (+1.5 x target) or no stops. Low success lower risk techniques manage risk by using smaller stops which are generally smaller or the same size as your target. You now can eliminate 50% of 25% so you are down to 12.5% of Forex trading systems.

You then need to decide whether you are looking for a mechanical indicator based system or one that requires judgement such as a support and resistance type system. Now you are down to 50% of 12.5% = 6.25% of Forex systems.    

The process can now continue. Indicator systems either have a momentum indicator bias or a trending indicator bias and can occasionally have both elements.  Judgement systems often use horizontal or non-horizontal support and resistance approaches and can occasionally have both elements.  Now you can further eliminate another 50% x 6.25% = 3%

I think we have done quite will to get it down to 3% of all systems. So where to from here. You now need to find you system. Let say the eliminate process has resulted in the following answers. Scalping in the European session, breakout systems, low risk system, mechanical indicator based, momentum and trending bias. Now the first step is to “Google” search all the above terms to find ideas for systems. Next a “YouTube” search using the above terms for videos of systems meeting your requirements. The chances are good that you will find a few systems.

Now you have found 4 to 5 systems. Buy them and then test them to see which ones best suited to your needs. See tis link for ideas ion testing – Testing Forex systems

Hopefully you will end up with 2 or 3 really good ones that meet all your personal needs.

For those of you who say – “I don’t care what type of system it is as long as it is profitable – I will adjust my lifestyle and requirements to meet the system” I would warn that this is not a sustainable approach.

Just a word of warning:- there are no perfect 100% systems (because the Forex market is Random) The are no systems that will give you 20 pips every day (each day changes in the Forex market) for the rest of your life. There are however some really good systems out there that have a realistic success rate, are profitable and that will meet your needs. Find those. Finding them may not be that difficult if you know what you are looking for.

Finding your best Forex trading system or technique is a process – the sooner you start the better

Double in a day Email recently received

Amongst other methods I have been trialling is the Double in a Day technique and so far have been unsuccessful – I have ‘blown’ my demo account. I missed one great trade by 1.2 pips that would have given me more breathing space, but such is trading!

Answer

Good on you for trying the Double in a Day technique.

It is an excerise to make people think outside of their box – and to increase the size of the Forex box they find themselves. It is a big achievement to double your account in a Day.

You should try it until you can do it – it is a bit like Everest – Do it, Get the tee shirt, then move on. Psychologically it a good Forex exercise and achievement. Not really a sustainable technique unless you are very multiskilled.

But using the same principles you can design a more sustainable technique – Have you tried changing the variables of the Double in a day system e.g. rather than going for 100% gain based on a 100 pip move using a 20 pip stop based and risking 16% of your account and adding at 50 pips – Go for say a 50% gain on a 60 pip move using a 30 pip stop based on say 20% risk adding at 30 pips.

By using an excel model you can do many alternatives to Double in a Day and find one that meets your needs.

You don’t need any experience to benefit from Forex trading from now on. Testers Needed.

A few weeks ago Expert4x sent out a questionnaire asking our clients how they wanted to make money from the Forex market. The first choice was to learn how to become a successful Forex trader – Expert4x has already started sending out eBooks and daily blog posting to help you with this.

The 2^nd and 3^rd highest response was to link your Forex trading account to a successful Forex trader.

Expert4x is going to be launching 3 new linked Forex trading services which will allow you to link to 3 Forex trading accounts traded by Alex du Plooy. So now you can literally trade the Forex market while you are asleep or out working. You don’t even need to know anything about Forex trading to link your account.

The 3 services will be

1)  A short term, day trading service focusing mainly on the European Market. We will be using a combination of the Good Vibrations, Magic Momentum and Long Candle techniques for these trades. Risk will be limited to 2% of the trading account per trade.

2)  A longer term services trading trades from the 4hr to Daily charts which may result in many overnight trades. We will mainly be using the Financial Turning Point, WATO and Long candle principles for these trades. Risk will be limited to 2% of the trading account per trade.

3)  A “Double in a day” service focusing on very high return, very high risk trades. We will be Pivot Plus, Turning Point and “Double in a Day” techniques for these trades. Risk will be limited to 20% of the trading account per trade. So you could blow your whole account in 6 negative trades.

How it works: You simply link your account to ours using a complimentary trade copier supplied to you. You would have to leave your MetaTrader linked to the internet while we trade. Every trade we make is automatically copied to your trading account. You can still manage lot sizing and money management if you like. That’s it. As simple as that. You can even use your own trade copier service or VPS service that will allow you to link with the trading accounts. There will be no need for SMS’s or Email for this service.

As with all new services offered by Expert4x we will be testing the linked forex account process quite thoroughly. That is why we need 100 testers to help us test these new services in the next few weeks. Please email us at info(at)expert4x.com to register you interest and tell us which service you would like to test. We will be using Alpari UK demo accounts of $ 5000 for the linked forex account trades. Account balances below $ 1 000 maybe problematic as we will be using multiple lots to scale into and out of deals.

Email from an Expert4x client trading Forex:-

There is no reason I should not have captured a minimum of 200 pips in Europes session trading Forex earlier…  My emotions got in the way of my trading… Emotions cloud judgement.. I also missed about 4 other trades because I was so focused on watching the active deals…..There are stops and a target, so its very simple – dont know why I did it.  

I thought it was the markets fault yesterday…then I took a look at all the opportunites I missed because I got emotional about trading…. Its never the markets fault and I was very mad at myself after anaylsing all the charts after I left.

Because my system is so accurate..  If I had scalped for 30 pips on 7 different pairs, that would have been 200 pips.

I think 200 pips a day will be my new goal…I will try again tonight…same time.  No emotions.

Many have doubled their pips, so if they were making 100 a day, 200 day is very possible.

EXPERT4X REPLY

Yes, now that you have a great system you can use for trading forex – do it without emotions – don’t be scared of losses – they will come – but we both know the losses will be a lot fewer than the winners.

You have also put in a lot of testing – so you know which currencies are best, which settings are best and which timeframes are best – you confidence must be at a real high.

Remember Barry’s Thorntons exercise:

If you made $2 everytime you got heads when spinning a coin but lost $1 every time you spun it. (In other words if you had an edge over the market – a good trading system)

• How many times would you spin the coin?  Everytime the above odds are offered to me

• Would you stop if you made a loss?   No because the more you spin the more you make in the long run

• Would you get emotional about the results?     No because the more you spin the more you make in the long run

Barry is very clever because he went through what you are going through 10 or 12 years ago

• So don’t set daily goals when trading Forex. They make you emotional. On a daily basis the market can only give what the market can give – some days 20 pips other days 300 pips – you have no control over that so don’t try to control it with a goal.
• Analyse your results to learn from your mistakes but do not get emotinal and stay 100% objective.
• Don’t beat yourself up over lost opportunities – it will make you emotional the next time you trade.
• Don’t compare yourself with others – only focus on what you can control.

Just focus on trading when the signals are presented when trading Forex. The pips and $’s will look after themselves. Of course this will not work with any old forex system – it will only work on one that you have tested very well and that you have a high level of confidence in. This non emotional approach only works on a good system. It does not make a bad system good. Click this links for info on system testing> http://expert-4x.com/expert4x-webinar-presentation-of-detailed-system-testing-processes

You have to FOCUS on what matters and on what you can control.

Hope this helps. Remember………

ENJOY TRADING FOREX