Profitable Expert Adviors are Unmarketable

I have spent a good chunk of this and last week analyzing commercial expert advisor systems extensively, trying to assess their profitability and write reviews that can help retail traders out there who dont want to lose their money in something that does not work at all. A very strange thing I have found while doing my research is that most people look for expert advisors that have characteristics that differ a lot from what I would consider the main features of a profitable trading system.

The regular new forex trader who wants to use an automated system usually looks for a system with a given set of properties. I have deduced, from commercial expert advisor sites (including the ones with the cheesy marketing stuff), that people will preferably buy expert advisors that trade a lot and have high percentages of winning trades. Physiologically people like to know they will "lose" less often.

Now, profitable expert advisor, from what I have been able to analyze, have almost exactly opposite characteristics. They have low winning percentages and they trade rather infrequently. Of course, this is almost unmarketable. Most people will utterly reject a system which has a 10% winning percentage and a trading frequency of 1-2 trades per month. Well, that would mean winning 1 trade a year, most people cannot deal with that, they want the constant gratification of winning all the time, even if that means being unprofitable overall.

Of course, people are not brain dead and will take a profitable system once it is proven to them, but they are much more prone to accept evidence (false or true) about a system with the characteristics they desire, rather than a system with the profile shown below.

What they usually forget is that systems with low winning percentages that trade infrequently are often trend followers which try to catch big pip moves, so they may lose 90% of the trades but the trades that profit are almost 20 times larger than the losers, making the expert overall very profitable. The turtle trading system is a very good example of this, it loses very frequently and requires a lot of discipline to trade but it is profitable in the long run.

If you would like to learn more about what expert advisors, both free and commercial, I have tested and found likely profitable, please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Forex Expert Advisors Forex Knight Rider an Unbiased Review

Yesterday while searching the internet for new expert advisors I found a new trading system which I had not reviewed. This trading system, called Forex Knight Rider will be the focus of todays post. As with the other experts I have reviewed, today I am going to go through the forex knight rider website evaluating the authors claims against the evidence provided on the site. I will then analyze the evidence closely and give you my opinion about the potential of this expert for long term profitability and if it is or if it is not worth buying and testing. Please remember that my reviews are as unbiased as they can be as I get no reward for any positive or negative feedback on the expert advisor. I just call them like I see them.

If you are looking for the regular hyped website with absurd claims and little evidence, then you have found your match with forex knight rider. The EA starts up with some bold claims of making 28K within three months from 50K, that is, a profit higher than 50% in just three months. What is there to back up the claims made by these people ? Actually the claims are only based on backtesting results. The problem with this is that backtesting results coming from EA sellers cannot be trusted because there are too many ways in which backtesting can be exploited to achieve these unrealistic results. This is specially true when you look at the EA trading strategy which involves closing trades within a 4-6 pip range. Closing trades on such a small movement WILL generate some serious problems due to one minute interpolation errors. Since they do not show us any live tests to show back/live testing consistency then we have no other choice but to consider the back tests unreliable. Why they make claims of real profit based on simulation simply eludes me as this is extremely misleading and borderline illegal.

The things we are shown after this just go off the charts of hype and wrong doing of commercial EA sellers. Useless pictures of trades and best of all, some "testimonials" with "live" accounts to which there is no investor access to confirm or any myfxbook access that could also confirm their authenticity. Another reason to believe that these live tests are fake is pretty obvious. See Tony Alberto from Canada ? Well, he is more well known in the internet as "Close-up office portrait of a young man". What a joke ! Why do they treat us like we were retarded ? We can also search for royalty free images and find their fake pictures of their fake testimonials ! Present FTC regulations forbid the use of fake pictures to represent clients so what they are doing IS illegal according to US regulations.
--
Forex Knight Rider is nothing more than an extremely hyped EA with unethical marketing practices that has absolutely no hard evidence to backup its claims. Another very good example of how things should NOT be done in business. For all the lack of evidence to show any profitability or likehood of long term profitability I consider the forex knight rider NOT worth buying or testing. If you would like to know more about the way in which I evaluate expert advisors and how you too can design and program long term profitable systems with reliable profit and risk targets please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Metatrader 4 Expert Advisor Programming

Well, many of you may know about me being an avid forex software reviewer but few of you know that I actually do program expert advisors using the mql4 language. In my actual career, as a chemist, I had to develop some serious programming skills in c++ and Fortran to develop highly efficient computational chemistry algorithms for quantum mechanical calculations. Since mql4 is so similar to c it is pretty straightforward to go from my regular programming habits to programming expert advisors for Metatrader 4 and the forex market.

I have never thought about selling my skills or selling expert advisors I program as I mostly use metatrader 4 programming as a way to learn more about the forex market and the ways to be profitable in it.

However, I have noticed that many people out there who do not know how to program may have some interesting ideas to create automated trading systems which they have not developed due to the lack of a programmer, money, etc. This is why I am offering this post as a way for people to post their ideas (so that I can program those that I consider most likely).

Please beware that there are certain prerequisites about any system :

- Must have been forward tested manually for at least 2 months, it does not matter if it wasnt tested 24/7, I just want to know that there are some results.
- Must not be based on Martingale, Hedges or Grids (these do not work, I promise)
- Must not be a scalping system. I am not interested in programming this type of systems as I know that they dont work universally and that most of them cannot be backtested accurately and are very sensitive to broker data, spread changes, slippage, etc.
- Systems with risk to reward ratios over 2:1. This type of systems have a much harder time being profitable than systems with better risk to reward ratios.

If your system meets the above criteria then you should also provide :

- Clear entry rules
- Clear exit rules (particularly important)
- Other important rules for the system
- Profit on your manual trading period and draw downs experienced

It is important that you explain your system in a crystal clear way so that it can be programmed accurately. If you would like to learn about more expert advisors, both commercial and free I have reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Forex News Trading Free Expert Advisor

One of the most interesting things about the forex market is that changes in fundamental data change the global "outlook perception" of a currency for traders and hence mark dramatic changes in price during very small time windows. Trading these spikes caused by fundamentals being changed is called "news trading" because the trader chooses to enter and exit the market at the time when important economic news are released and the market experiences bast levels of volatility.

Trading the news often demands cat like reflexes and the ability to enter orders at the speed of light (or near it !) in order to keep a profit, stop a loss, etc. News trading is also dangerous in the sense that prices can gap for even 100 or 200 pips, making your loss far greater than what you thought it would be. Long story short, news trading is difficult if not because of the volatility and big chances of getting whipsaws, because of the inherent difficulties of trading and making clear decisions in such bad market times.

News trading expert advisors basically work by placing two market buy and sell stop orders at some pip distance from the price, one minute or more before the news release. What the ea wants to predict is a quick change in price which is caught quickly with the aid of the opening orders. This of course, does not work all the time because prices can "bounce" and leave you with no actual clear direction during a news release. Specially when news are confusion, you almost always find candles with gigantic shadows but not too much overall movement. Luckily, most of the time the news do move the markets in one specific direction and often for 100 pips or more. For example, the NFP (non farm payrolls) release moves the EUR/USD by more than 100 pips in average.

So how do we trade this news releases ? (You should first start trying this ea on a demo account, until you are comfortable with the way it works) You can use the ea provided here in order to trade the news in forex. The ea (developed by branac at forexfactory.com) enables you to place 2 orders 1 minute before the set time for the news release arrives (check your time zone and your broker time in order to adjust this time setting correctly). Now set the SL and TP values to the values you want to use as both Stop Loss and Take Profit (use a small stop loss and large take profit for better results, for example SL=30, TP=80) and variable (2) as the amount of pips away from the current price you want to place the orders. Use a wide enough value (30-50) in order to ensure that whipsaws are minimized as much as possible !

I hope this news trading ea proves profitable to all the forex traders out there looking for a solution to trade news releases in mt4. If you want to learn more about more commercial and free expert advisors I have reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

A New Day for Watukushay FE A Free Likely Long Term Profitable EA

On December 2009 I released a free expert advisor to provide my fellow traders with a likely long term profitable alternative from commercial expert advisors. My idea was to give everyone out there the chance to be long term profitable in automated trading by using a system which was built upon sound trading principles which they could use without having to pay a single dime. I named this system Watukushay For Everyone. Another objective of developing this EA was to document the whole development process and make it available within my Watukushay project, reason why the EA has the name of the project as part of its name. A month after its release and after a lot of work and research on the trading logic of Watukushay FE today I can say that I have achieved an improvement of the experts original setup in such a way that makes it, in my mind, one of the best free expert advisors available on the internet today.

I released Watukushay FE on December 25th with what I believed was a good profit to risk profile. The EA was able to make (according to simulations) approximately a 20% yearly profit with a 40% maximum draw down using an approximate risk of 5% per trade on the EUR/USD one hour chart. The only thing that I certainly did not like very much about the Watukushay FE expert advisor was the fact that the equity curve seemed to be overly centered over the years 2007 and 2008. The EA was able to adequately preserve capital on 2000-2007 with a very low profitability and then the profitability skyrocketed as we reached the years 2007-2008 something which made me believe that the EA may be in some way "curve fitted" to the "crisis type" market behavior which was characterized by very clear trends on very high volatility.

I however published the EA because I believed that the EA was able to adequately preserve capital on unfavorable market conditions so if it was indeed curve fitted to 2007-2008 market conditions then the EA would not be as profitable until a similar period arrived but it would also be able to preserve capital like it did between 2004-2007 on unfavorable market conditions (for the EA).

Nontheless, I am sort of a perfectionist and I knew that there was a lot more potential to the logic of watukushay FE. I had already done a careful analysis of the mathematics of the RSI indicator to develop the expert advisor but I knew that there was something else I could do to improve profitability. Then I realized that I had tied some variables on the expert together such that they depended on each other and tied the exit and entry criteria together. I decided to make the variables independent and redo all my analysis and coarse optimization process for the expert advisor. The results - which have been described in great detail on the ebook update released yesterday - show you how the Watukushay FE trading system was developed, analyzed and improved.

What came out of this process was an incredibly improved version of Watukushay FE. The new version is able to achieve an average yearly profit of 36% (calculated over initial equity) over 10 years with a maximum draw down of about 16% for a Risk 5 setting. The EA also achieves new equity highs every year, removing my fears of curve-fitting for the previous released version. As you see on the backtesting image shown below, Watukushay FE now has a much better risk/profit profile with a much higher quality equity curve (backtesting showed for Risk=1). Also note that Watukushay FE is still as hard to trade as all other long term profitable systems with draw down/break even periods that can last for several months.
--
If you would like to trade watukushay FE on your live account, feel free to leave a comment here or on the Watukushay FE website (watukushayfe.blogspot.com) and join the 2 year live testing challenge of the EA ! Challenge yourself to achieve long term profitability :o). If you would like to learn more about the coding of Watukushay FE and how I designed, programmed and improved its profitability or if you would like to learn about other Watukushay experts I have programmed and how they too are likely long term profitable systems please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Are You Up for a Challenge A Likely Daily Long Term Profitable System That Takes 5 Minutes a Day to Trade Part One System Rules

I think it is not a secret now that I have always believed that one of the biggest problems faced by people new to automated trading - and their general lack of success - is the almost complete absence of evaluation and the use of a system that has accurate evaluation and a real statistical edge that can be used for longer profitability. This becomes evident if you start to ask traders about the long term characteristics of the systems they use or intend to use. You will find out that the large majority of people ignore the maximum draw down the draw down period lengths, the probability to have a losing or a winning month, etc. It is easy to see then why traders switch so much between different systems and why following a system is so terribly hard.

Today I want to help new traders by sharing with them a simple strategy they will be able to use everyday which is adequately evaluated and has clear long term profit and draw down expectations that have been calculated according to reliable simulations, bringing them the opportunity to trade a system knowing in advance what to expect in the long term and what difficulties they will face when trading. This system also has the advantage of taking only 5 minutes to trade everyday giving you the opportunity to rely on it if you do not have the time to be "glued to the screen" many hours everyday.

It is however clear for me to say - before I start describing the system - that the most important achievement you will get while trading this technique is most likely not going to be monetary (since the profit and risk targets are very conservative) but you will achieve a good education regarding forex trading and - most importantly - you will learn to trade a system which is likely to be extremely difficult to handle from a psychological perspective. If you want to become a better trader and polish both your psychological and trading skills then I advice you to trade this system, but do so seriously and for at least 5 years. Trading this system wont take more than 5 minutes everyday and you will learn to be disciplined and to follow a system for which the statistical expectations are clearly laid out in advance.

This trading system is a very simple trend following system designed to be used on the daily time frame only on the EUR/USD. You should check for an entry signal everyday when your brokers daily candle closes (broker must have chart without Sunday candles, you can use the WithoutSunday EA available for free online to create a chart without these). The rules are very simple :

Long Trades :

If the past 6 bars show an increase in the 10 period simple moving average indicator (average in bar 6 smaller than 5 smaller than 4 smaller than 3 smaller than 2 smaller than last closed bar) and the difference between the close of the last bar and the tenth bar in the past is larger than 3 times the past closed bars 30 period daily ATR value then enter a long trade.The trade is entered with no TP and an SL value equal to 2 times the mentioned ATRs value.

If a long trade is opened and the last bar close is higher than the close of the bar before the last long was opened open another buy trade and move the SL of the old trades to the value of the new one (which is 2 times the ATR from its opening point). Do this to open an additional maximum of 4 positions.

If a long trade has been entered and the past 4 bars 10 period moving average in the past show a decline ( average in bar 4 is greater than bar 3 greater than 2 greater than last closed bar) then exit all trades.
-
-
Short Trades :

If the past 6 bars show a decline in the 10 period simple moving average indicator (average in bar 6 greater than 5 greater than 4 greater than 3 greater than 2 greater than last closed bar) and the difference between the close of the last bar and the tenth bar in the past is larger than 3 times the past closed bars 23 period daily ATR value then enter a short trade. The trade is entered with no TP and an SL value equal to 2 times the mentioned ATRs value.

If a short trade is opened and the last bar close is lower than the close of the bar before the last short was opened open another short trade and move the SL of the old trades to the value of the new one (which is 2 times the ATR from its opening point). Do this to open an additional maximum of 4 positions.

If a short trade has been entered and the past 4 bars 10 period moving average in the past show an increase (average in bar 4 is smaller than bar 3 smaller than 2 smaller than last closed bar) then exit all trades.
-
-
Lot Sizing

The lot size is defined by a very simple equation outlined below. This equation adjusts lot size against market volatility and account equity.

Lot size = 0.01*AccountBalance/(ATR*ContractSize)

The ATR is the value of the 30 period ATR as calculated on last bars close. (ATR of the last closed bar) (value of the ATR as absolute price, (for example 0.0102)). The contract size is the contract size per STANDARD lot.

As you see the system is very simple and the entries can be checked very easily using just 5 minutes of your time everyday. Unlike other trading strategies with a similar approach - like the turtle trading system - this strategy does not require you to be constantly monitoring the market for breakouts and the addition of positions but it works your way so that every trading decision is executed at the exact same time each day - what I would call a perfect system for a beginning trader busy with a full time job.

On tomorrows post we will learn more about this trading strategy as well as its results over 10 years of simulations, we will talk about the challenges this strategy poses to traders, the rewards you would expect to get and why challenging yourself to trade this everyday (even if only on a small 100 USD live account) will prove to be extremely beneficial in the long term not only regarding possible profits but also regarding what you will learn from both yourself and your psychological characteristics as a trader.

If you would like to learn more about how strategies like this can be turned into mechanical systems for their accurate evaluation and analysis 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)

Forex Trading Is this really for you

Today I wanted to write a post aimed at those people out there who are looking to try, starting to try, or have been disappointed by forex trading. Today my objective will be to describe what in my opinion are all the draw backs of forex trading, manual or automated that are always overlooked or ignored by people who start trading the fx market.

Sure, I remember too when I started trading this market. Everything you read is positive and sincerely you get the feeling that with a little work and dedication all those things they promise you might become true for you. For example, most of the time you hear that forex trading will "free" you from your 9 to 5 job, that it will bring you an amazing amount of profit working from home and that you can, as other people have, achieve a "stress free" luxurious live style. This of course, as it appealed to me, may appeal to the thousands of people out there getting into foreign exchange trading every day.

Whats the catch then ? Why dont we see thousands of millionaires or independent people living from forex trading each year ? Truth be told, forex trading is not for everyone and most people discover this the hard way. Not because everyone is not capable, or because people are not intelligent enough, no, not because of these things. Trading is not for everyone because everyone does not have the psychological or financial capabilities to deal with the facts of forex trading. I will now try to outline the things that happen in forex trading that people NEVER told you that may make you look for other different opportunities best suited for your personality and psychology. What are these things then that are bad about forex...

• Forex is NOT a 9 to 5 job. That is, trading does not offer a fixed amount of predictable profits every month. There are losing months, winning months, breakeven months. If you try to pressure into getting profits when it is not time for profits you will only get more loses. Why is this so stressful to most people ? Well, most people are used to getting a paycheck every month. What happens if you dont get one for 5 months ? would you be able to survive ? This is something that people who trade know and something they do to plan things out.
  
• Trading requires much more education than what you think. People often think this is not the case if they use automated trading system. I outline in my ebook the reasons why it is EVEN MORE the case when you use an expert advisor to trade your account. I spent nearly three years trading before I could get 3 consecutive profitable months. It certainly takes a lot (at least it took me alot) to learn how to trade the forex market, manually or automatically.
  
• You need a good starting capital. Of course, I have said in other posts that you need to have at least double your desired yearly income invested in order to be able to live from forex trading. This is absolutely true. If you try to live from forex using a very small amount of capital, chances are that you will lose all your money. Being underfunded is one of the MAIN causes why people lose their money in trading.
  

If you want to have a check at your door every month and you want your income to be predictable to some degree you can choose another form of independent life that is more suited to what you want. For example you can start a small online business, a brick and mortar business, a consultant business, all these things have a lot of profit potential and require just as much work as forex trading, however they have the advantage of being more reliable and less stressful (well, this depends on what each person finds stressful) than forex trading.

To be extremely sincere, forex trading is not what most people put it out to be. This is not a get rich quick opportunity, or something you can do with just "a little work". This is like starting a business that relies 100% on your dedication and which may sometimes give you no profit, and sometimes give you a lot. Is it for everyone ? No. But sure, they are independent opportunities for everyone who wants to live without having a 9 to 5 job.

For those of you along for the ride, forex trading is a challenge and it has to be treated as such. There will be frustration, there will be bad times but in the end if you have the dedication (which is a LOT of dedication), you will see things get better and you will get something which is priceless, the ability to make money in trading. If you would like to know more about my concepts about automated trading and how you can evaluate and build your own long term profitable trading systems, please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

FOREX IN ISLAM

FOREX IN ISLAM
FOREX IN ISLAM whether lawful or business can be said is actually forbidden, because I find the money seems so easy and almost no issue you try business keringat.Janganlah unclear halal haraam later regret behind. Read the first opinion of some scholars disini.Bagaimana Business Forex do you think can be said halal or haram even though the purpose and goal is to not to Main livelihood or profit-untungan.Barangkali Gambling Forex According to his view of Islam will be the same with other religions. Heres the opinion of About Forex Islamic scholars.
A small one doubts halalness futures trading practices. What do the experts view of Islam? What do the scholars about Forex Trading, Stock Trading, trading indices, stocks, and commodities? What is Forex Trading Law Halal by Islamic law? Let us follow selengkapnya.Valas According to Islam took the basis of the hadith that Allah willing, thus:

 "Do you sell something that is not you," the words of the Prophet Muhammad, in a hadith narrated by Abu Hurairah.
By temporarily fuqaha (Islamic jurist), the hadith saklek interpreted. Anyway, every practice of buying and selling goods that do not exist at the time of contract, unlawful. Such interpretation, no doubt, make the Islamic jurisprudence is difficult to meet the growing demands of the time with the changes.
Therefore, a number of famous classical scholar with a brilliant idea, object to the way such a narrow interpretation that impressed. For example, Ibn al-Qayyim. Bermazhab cleric Hambali is of the opinion, thats not true buying and selling goods that are not prohibited. Both in the Quran, Sunnah and the fatwas of the Companions, the ban does not exist
In the Sunnah of the Prophet, there were only selling ban that does not exist, as the ban a few items that already exist at the time of contract. "Causa legis or physical defect ban is not the presence or absence of goods, but garar," said Dr. Syamsul Anwar, MA from IAIN Yogyakarta LIKE explain the opinion of Ibn al-Qayyim. Garar is uncertainty about whether the goods traded can be rendered or not. For example, someone sells a lost camel. Or sell the goods belonging to others, though not authorized by the individual.
So, although at the time of the contract the goods do not exist, but no certainty is held at the time of need so that could be handed over to the buyer, the purchase is legitimate. In contrast, although the goods already exist but for one reason or another can not be delivered to the buyer, the sale and purchase was not valid.
Futures trading, obviously, not garar. Because, in berjangkanya contract, type of commodity traded has been determined. So also with the quantity, quality, place and time of delivery. Everything is walking on the tracks official rules strict, in anticipation of the increased incidence of irregularities in the form of fraud - something that could also happen in practice rather buy conventional.
In the perspective of Islamic law, the Commodity Futures Trading (PBK) Forex is part of the CPB) can be incorporated into the category almasail almuashirah or legal problems of contemporary Islam. Therefore, its legal status can be categorized to the problem ijtihadiyyah. Classification ijtihadiyyah entry into the territory fi ma la Nasha FIH, the legal issues that legal texts do not have a definite reference.
In the category of al-Sahrastani legal problems, he belongs to the paradigm of al-qad nushush intahat wa al-waqaI la tatanahi. That is, the legal texts in the form of the Quran and Sunnah has been completed; no longer any extra. Thus, the case law emerging legal certainty should be given through ijtihad.
In the case of PBK law, ijtihad can refer to the theory of law changes introduced by Ibn al-Jauziyyah Qoyyim. He explained that the fatwa law can be changed because some variables perubahnya, namely: time, place, intent, purpose and benefits. The theory of legal change is derived from the paradigm of jurisprudence from his teacher Ibn Taymiyyah, who claimed that a-haqiqah fi al-ayan la fi al-adzhan. That is, the truth of the law is found in empirical reality, not in the realm of thought or idea of ​​nature. The paradigm is derived from Islamic law principle of justice which the Quran used the term al-Mizan, a-qisth, al-wasth, and al-adl.
In practice, in particular the problem EAPs can be incorporated into the field of study fiqh al-siyasah maliyyah, namely legal political material. In other words, PBK including studies of Islamic law in the sense of how Islamic law is applied in matters of property ownership, through the trading of commodity futures in the era of globalization and free trade.
The realization that most likely in order to protect the actors and parties involved in trading commodity futures in space and time and consideration of the purpose and benefits today, in line with the spirit and sound of Law. 32/1977 about PBK. Because the theory of legal changes as described above, to show the elasticity of Islamic law in the institutional and economic practice, the CPB in the Islamic legal system can be analogous to the bay al-salamajl biajil. Bay al-salam can be interpreted as follows. Al-salam or bay al-salaf is ajl biajil, namely trade in something with the provisions of its properties are guaranteed true. In such transactions, delivery of ras al-mal in the form of money as the exchange rate should take precedence over the delivery of commodities as defined in the transaction. Ulema Syafiiyah and Hanabilah define it: "Covenant of the sale and purchase of commodities guaranteed given the nature of expenditure (futures) the price is specified in the contract market."
Validity of sale and purchase transactions deposits, determined by the harmony and the fulfillment of conditions as follows: a) The Pillars as the main elements that must exist in a transaction event key elements in the bay al-salam are:
The parties conducting the transaction (aqid) called by the term Muslim or Muslim ilaih.Objek transaction (maqud alaih), ie goods and prices of commodity futures exchange (ras al-mal al-salam al-Muslim and FIH) . Sentences transaction (Sighat aqad), the final offer and Kabul. Noteworthy of these elements, is that the final offer and qabul expressed in the language and the sentence that clearly shows the futures transaction. Therefore, scholars emphasize the use of the term Syafiiyah al-salaf al-salam or in sentences that transaction, arguing that the aqd al-salam is the bay al-madum with nature and the different ways of selling and contract buy (buy).
b) The terms of
Requirements regarding the object of transaction, is: that the object of the transaction must meet the clarity about: the type (an yakun fi jinsin malumin), its nature, size (content), delivery period, the price of exchange, place of delivery. Requirements to be met by the exchange price (al-tsaman), is, first, the clarity of type medium of exchange, namely dirhams, dinars, dollars or dollars or so on goods that can be weighed, disukat, etc.. Second, the clarity of type of medium of exchange whether the rupiah, the U.S. dollar, Singapore dollar, and so on. Are the scales agreed in kilograms, pounds, etc..
Clarity about the quality of the object of transaction, whether a special quality, whether moderate or bad. The terms of the above specified for the purpose of eliminating jahalah fi al-aqd or excuse ignorance conditions of goods at the time of the transaction. Because this will result in discord between the party conducting the transaction, which will damage the value of the transaction.
Clarity of exchange rates. A brief explanation above seems to have been able to provide clarity permissibility PBK. Even if in practice there are still those who feel disadvantaged by laws that exist, it can use the rule of law or legal maxim which says: ma la yudrak kulluh la yutrak kulluh. What can not be everything, it will not be abandoned entirely.
Thus, the law and the implementation of EAPs to certain limits may otherwise be acceptable or at least in accordance with the spirit and soul of the Islamic legal norms, with menganalogikan to the bay al-salam.
Forex Trading on Marketiva
Marketiva is a forex broker that has implemented the policy Zero-Interest (without interest) on all open positions. No overnight (stay fee interest (interest) which is charged or paid on the status of open positions. Thus there is no conflict between the prohibition of Riba Marketiva services under Islamic law. Thus there is no more doubt to serious business in forex.
(Compiled from various sources)
Similarly FOREX IN ISLAM and opinions of the scholars about this Forex business law that has been described with bright and clear so no doubt yourself.
I already know halal and haraam then I want to try it now and I want to List Foreign Currency.

The Reality is Most People are Terrible Losers Are you a Good or a Bad Loser

If you have read my blog for a while you may know that evaluating systems to understand draw down periods is one of my main concerns when using any automated or manual trading system. I have also written a few posts about the way in which the market limits the mass adoption of systems through the use of extensive and deep losing periods and I have also given people a few pointers - mainly based on true understanding of the trading strategies - so that they can survive these periods without simply using "faith" as a resource. However what I have found out is that the truth is quite simple : most people are simply very bad at losing and these makes them particularly vulnerable to fail in trading more than people who are "better" at surviving draw down periods. On todays post I will talk to you about the differences between good and bad losers and why people who do not become "good losers" are bound to end up failing in forex trading.

If you remember a few posts I wrote almost one year ago, I had started a project in which I attempted to train a few people to becomes successful at automated trading. As time has gone by (more on the progress of this project in a later post) I have noticed that their reactions to losing periods have been extremely negative and this often creates a quick aversion to the system they had been using. In general I believe that we - as humans - do not like losing very much and when this happens in trading we tend to look to change our system for another that allows us to profit without this bad side. Of course, most people believe that draw downs are inevitable but most believe that they can have extremely small draw down. Something which is also not possible.

This in turn leads people to get into systems that have very long profitable periods followed by extremely sharp and possibly devastating draw downs. This is why scalpers with large risk to reward ratios and martingales have such a huge fan base amongst new traders. These are systems that show very up trending equity curves with just "a few dips". New traders bite on this quickly because they dont like the feeling of losing and therefore they tend to lean towards systems that make them feel like "winners" most of the time.

This is disastrous since as time goes by and traders see how their accounts start to grow, they decide to take a bigger risk which ends up with a quicker wipe-out (for martingales a wipe-out will ALWAYS happen, this is a statistical certainty). Being a bad loser makes you tend towards systems that stimulate your "greed side" less than your "fear side". The market protects itself by making long term profitable systems fear based and unprofitable systems greed based, pretty clever indeed :o).

For this reason being a "good loser" is a vital part of successful trading and in fact this is a characteristic I have found all the profitable traders I know share. A draw down period doesnt cause them to evaluate or modify their trading systems and they never lean towards trading strategies which are obviously unsound, despite how "good" the simulations may look like (which at a closer look are most of the time flawed to some extent).

Chances are that if you are in the beginning of your trading career you are a "bad loser". If you tend to be happy with winning trades and sad with losing trades, making your emotions inherently tied with your trading results then this is a behavior you need to change as soon as possible if you truly want to become a successful trader. The bad part for most is that this journey is not easy and may be easier for those who can listen than for those who are stubborn about some trading paradigm that is simply not true.

As I have said many times, the solution is simply to gain a true understanding and - as I highlighted on yesterdays post - to acquire a business outlook over your forex trading experience. If you are trading a system you do not understand PERFECTLY and you dont have accurate risk, reward and worst case scenarios then I have to tell you that you have a HUGE probability to fail with its trading in the long term. A draw down period will come and you will fail to interpret if it is too deep or too long and you will promptly modify your strategy or change your system completely. Such a way of trading is very prone to failure and the way most traders approach expert advisor and manual system development in the beginning.

So if you want to succeed in trading, my advice is very simple : you need to become a "good loser", you need to understand that draw down periods (long and probably deep) are a part of the trading experience and that dealing with them is absolutely necessary to survive this game. However leaving through them with faith is bound to have the same devastating results and only TRUE understanding of EVERYTHING you are doing is bound to give you any long term successful results.

If you would like to learn more about what I have learned in automated trading and how you too can use automated trading systems to your advantage in forex trading 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 !

Trading the Turtle System in Forex using an ea in mt4 Part Two The Ea

In the first part of this post I gave a little introduction into the turtles trading system and some insights into its money management technique. From now on, I will start to talk about its entry and exit strategies as well as its pyramiding characteristics.

If you read the pdf (there is a link to it in the last post) that details the whole turtle trading system, you will notice that the system follows breakout strategies with a pyramiding approach in order to exploit the trend. This strategy ensures that the system gets a very high profit when a large trend is caught and also tries to minimize the risk associated with ranging markets. This is specially profitable in long time frames.

You should have also noticed that the Turtle technique has two different systems, No.1 and No.2. We are going to trade the system using the No.2 trading system with an 2N stoploss and an exit strategy based on the 20 day breakout signal. This of course, with the corresponding pyramidying tecnique with a maximum value of 3 units trading at any given time.
-
-
The expert advisor we will be using can be found here (an image of the trading expert is shown above). It accurately represents the way in which the system works, following the exact entry and exit rules described in the manual for the No.2 trading system, make sure you set the LockingProfit option to false as this is an implementation not true to the original turtle system (remember to demo test to see if you feel confortable with this system before using real money). However, the lot size needs to be adjusted weekly following the instructions given during the first part of this article. I have also started testing this system in a demo account using the EUR/USD daily chart. People who have joined the mailing list will also receive statements and weekly comments on this system.

If you would like to learn more about other free and commercial expert advisors I have reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

Pointbreak Week 5 Still on the Race

As I mentioned on my last post about the Pointbreak expert advisor, I was concerned about the possibility of massive large open draw down with this expert. I even made a comparison between Pointbreak and a grid trading system which was the feeling Pointbreak was giving me at the time.

Now I have to say, Pointbreak is really nothing like a grid system. I have watched the expert closely this week, focusing on the way it opened and closed its positions. The expert knows when it has a large draw down and acts accordingly.

When the ea was facing a nearly 5-10% open draw down last week, I was a bit concerned about it being killed by the ranging market. Although my concerns were quiet well founded, I have to say that they dont exist anymore. This week has showed me how Pointbreak behaves in "dark times" and the behavior has been what I had been told. Pointbreak will indeed suffer in ranging markets, but it is designed to survive them and ride trends thereafter.

Pointbreak has not lost the profit it has made, neither has it increased the open draw down it suffered from last week, the expert remains in a battle against its open draw down, waiting for the tides to calm and a clear trend to continue. I also analyzed the chart provided by the detailed statement. I have to say, it looks like a very conservative profitable expert advisor. The statement as always, can be seen here.

Tradeways Pallada 3 4 System an Unbiased Review

One of the systems I have been asked the most to look into was the Pallada system made by the tradeways company. I had not written a review about it before because the semi automated nature of it made it much less systematic to test and trade but after getting to know this system for a couple of months I think I can now confidently give my honest unbiased opinion about it.

The system has many indicators to it and it also has several entry and exit criterias. My first impression about the indicators is that, even though they are nothing that I would consider revolutionary, they do put a lot of information consistently on the screen. My best guess would be that some indicators are oscillator based while others are certainly based on lagging indicators of some sort. The Pallada system has the virtue of putting you inside all the winning trades with the outmost deffect of making you give most of your profits back on large moves when quick retracements happen.

Another fact is that having several possible exit criteria leaves a lot in the mind of the trader. Which criteria you use and how you actually handle your positions makes the difference between trading Pallada profitably or failing miserably. Of course, this kind of thing is what precisely makes the Pallada system impossible to fully automate. I coded an ea based on the exact entry rules given by the Pallada manual and I realized that things changed enormously depending on the exit criteria, but regardless of what I did, most of the time I was giving back all the money I won on the big trades on the ranging periods that followed.

In my opinion, the Pallada system is not a bad trading system. I know people who trade their indicators and are successfully using them to make money. Now, this system has performed very good for the past year (according to my backtesting using the ea I programmed) so you should not expect bad comments from people who have been recently trading the system.

Anyway, I think that the Pallada system is far from a "sure" solution that you can follow blindly and become profitable. The Pallada system reflects the nature of the trader, if you are profitable with their system, then you will most likely be profitable with other good manual trading systems. If you are not, then you probably need to work on your trading. Needless to say, there is no way in which you can make money in the forex market without having a decent education about it.

The Pallada system gives its users a good opportunity to become profitable in the market. It is not a blackbox solution, it is a tool to help forex traders succeed. If you prefer automated trading solutions and would like to learn more about profitable free and commercial expert advisors please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !