Algorithmic Trading

Automated forex robot trading has revolutionized the landscape of currency trading by introducing computerized systems designed to execute trades without continuous manual intervention. Referred to as forex robots, expert advisors (EAs), or algorithmic trading systems, these programs enable traders to implement predefined strategies efficiently.

Everyone who is interested in financial markets, of course, knows about the existence of different trading methods. Some of them are quite popular, while not much is known about others, in spite of the fact that they have existed for more than one decade. An example of this is HFT trading, which is an abbreviation of high-frequency trading, and the method itself implies fast trading in which orders are opened and closed in a fraction of a second. Today we will learn more about this trading system, as well as will go through its risks and benefits.

Why are economies cyclical – growth is inevitably followed by decline? The fact is that all processes in the physical world are cyclical. The nature of any economy is based on supply and demand. And both buyers and sellers can be on the strong side. Suppose there is an economy in a phase of active growth, with low inflation, growing GDP, and other positive fundamentals. In such an environment, high and steadily rising prosperity would stimulate demand for goods and services and positively affect all production and increase the stock price of manufacturing companies.

As the statistics show, 2/3 of people who ventured into forex trading or another form of trading in financial products eventually give up the undertaking altogether. For decades, scientists have studied failure rates in the financial industry and concluded that a novice trader has about a 10% chance of success. Longevity in the market is a prize that only goes to the most diligent and persistent.

Short-term forex trading approaches offer us a number of attractive benefits. These include the opportunity to make money by placing short and long positions within a single trend; to exit a position in the evening and not worry about the portfolio while the market is closed; to trade with a fairly low starting capital. Nevertheless, when starting short-term trading, one must know its basic styles, which include pipsing, scalping, intraday, and swing trading.

Harami candlestick and/or Harami Cross is a strong candlestick pattern. Harami means "pregnant" in Japanese. And it is true, if you look at these two-candle formations, you can see that the first candle is much larger than the second, as if the mother is carrying a child. Some traders consider the Harami candlestick and Harami Cross a single candlestick pattern, while others subdivide it into two, or even three, different types.

Every trader has at least once heard of aggressive intraday trading when numerous trades are placed during a trading session. Such a trading style is called scalping. Today we will learn what scalping is, how trading using this method works, and what its advantages and risks are. What Is Scalping in Plain Language? Scalping is a kind of speculative intraday trading strategy based on opening many short-term trades to get a small return on them and sum up the expected rate of return.

As a rule, the majority of newby traders start their first acquaintance with the forex market by trading in short-term time frames. But after a while, they come to the idea that to save their time and nerves they need to work in higher time frames.

Trend trading is one of the safest ways to benefit from the foreign exchange market. It is based on the fact that traders, like the crowd, create a mass movement, pushing out of the market all those who swim against the current.

Forex trend trading is exactly the way many traders use to make a profit on the currency exchange. Trend trading has many advantages: the ability to take a large number of pips due to a strong, directional price movement, a high probability of profit, and good accuracy of signals. These are the reasons that allow traders to use trend trading effectively.