This was actually one of my most profitable pairs for last year and is looking good as we go into This interview provides an insight into achieving success, his journey through the initial stages and how he views his future in the world of trading. I just read the currency news each day and monitor what is moving the markets in a particular direction. You are actually reinventing the wheel and developing a tool that could be universal for all algo traders and their trading styles. He believes that retail traders should focus more on fundamental analysis and learn how to trade fundamentals, which is a trading method that his hardly ever taught in Forex training courses.
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This interview provides an insight into achieving success, his journey through the initial stages and how he views his future in the world of trading. I have been trading Forex since In these early stages I made my first few thousand percent return with an initial investment of just a few hundred dollars.
By the latter part of I had managed to turn a profit with FXOpen despite only beginning to trade with them shortly prior to that time. Unfortunately, the entire business model of the retail forex sector was gray and quite unclear to me as a newcomer, and FXOpen was no exception in this respect. Still I managed to establish some valuable contacts during this period in which I was viewed as a potential client. While a totally innovative system of trading in retail forex was undergoing its new phase of development, I began to work with some of the range of relatively large and regulated companies.
I have a lot of memories associated with this period. A real war was unleashed between specially designed anti-manipulative algorithms on one hand, and chief dealers putting a spoke in the wheel, on the other hand. In the end, the algorithms used to win rather quickly. Under these circumstances the broker usually forced the trader to stop trading and withdraw the profits.
It became clear to me that the so-called notable forex regulators served as a mere front for what was becoming clear to me as the business model of a shadow banking system in which non-regulated companies were as good as the regulated ones. As a result, having tried my hand in various organizations within this sector, I gave up trading for quite a while.
I took up publishing my own market research in forums instead. It was valuable experience but somewhat disappointing. It was not entirely my fault. My broker was also to blame for some technical problems, which were solved successfully a few months later. As for me, I also made some progress — I worked out an algorithm for an Expert Adviser. Loopholes and bugs were detected and fixed by their support department.
I would have never made such achievements without the help of the technical support team, to which I extend my thanks. Spotting market inefficiencies and trading on them. Statistics, confidence intervals and many other factors are of great importance here. That is why the number of trades per day may exceed , while the number of trading orders can be well over , Here we are not talking about high-frequency trading.
However such trading specifics entail certain restrictions imposed by the MT4 platform. Personally, I take the advantage of placing orders in Level II thus being able to affect the price directly. That is the reason why I prefer Limit Orders in my trading. In this case I can act as a kind of institutional market maker, offering better prices compared to those set by banks. I just react rapidly and grab ECN liquidity, directly bypassing sluggish intermediaries such as trading platforms.
It gives me a chance to take the best possible orders form the STP without negative slippage. At the same time it provides an opportunity to compensate for a substantial part of commission through the frequent positive slippage. In this process, everything is tuned to maximize fill rate and minimize trading costs. So, I tend to use not only the standard bid history when searching for market inefficiencies, but the ask history too.
Fortunately, this functionality is provided by the broker in their MT4 trading platform. Almost every algo trader arrives at the point of creating personal research and trading infrastructure, which includes collection and storage of market data, back testing, visualization and logging of numerous trading parameters and so on.
You are actually reinventing the wheel and developing a tool that could be universal for all algo traders and their trading styles. If you have the infrastructure, you can dedicate most of the time to different research and analysis. Everyone has his own methods and tools of how and where to dig and delve and where not to. As a rule, an algo trader makes himself a hostage to his own strategies and ideas which are hard to digress from or abandon. That is why it is always worth expanding horizons by learning new visions of the market and approaches to trading as a whole.
Certain currency pairs are closely related in forex, therefore there is not one specific answer to this question. Interview with John Bollinger. Interview with Jason Stapleton. Interview with Jarrat Davis. Interview with Tim Rea. In this exclusive interview, he sheds some light on how the industry works at an institutional level and how retail traders can ultimately trade in a similar way. He believes that retail traders should focus more on fundamental analysis and learn how to trade fundamentals, which is a trading method that his hardly ever taught in Forex training courses.
I discovered Forex completely by chance after searching for a currency conversion website ahead of a trip I was planning. I saw an advert about trading online and decided to take a look.
After a couple of years of testing, I finally began to understand how the markets move and how to profit from them. I did not have any kind of formal training in banking or economics and never held any type of related employment. I am completely self-taught and began as a retail trader. I needed a way of leveraging my skills of trading without being distracted. Trading for clients seemed like the obvious choice for me and the hardest part was building up a track record on fairly small accounts, while convincing my very first investors to place their trust in me.
After a couple of years I had my verified performance and finding clients became much easier. Over time my minimums went up and I am now one of the only FX traders offering managed accounts through a fully FCA regulated company in London. But over time this gets easier and it all becomes part of the job.
Trading for clients is a very good way of leveraging your abilities and minimises the risk of wiping out your account funds needlessly.
How do your methods differ from other traders in the retail industry? One thing that I remember from the early days is how much educational courses or products relied completely on technical analysis. Learn how to trade courses, mentor,.. Learning a few successful patterns that yield profitable results and stick to them.
Don't forget to have a good working computer! Personally, I would recommend a desktop PC with 2 flat screens and not a small laptop, I still wonder how people can trade from that.. I don't use indicators because most of them are lagging behind. I use fundamental analysis and chart patterns watching for breakouts From what you have learned so far about trading the FX market, what changes might you make in the future? I don't feel the need to change anything since I make good money forex trading.
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