Trade Forex Swing!

How to profit on Forex Volatility | Lost Hope for low Asiatic Spreads Sessions turns into 2010-trading-leads on all Forex Sessions. Traders Profit-Boosting Engines pump up gains as the fluctuating dollar adds even more fuel.

Forex daily turnover rose to an unprecedented $ 3.8 trillion in 2008 with nearly 2 trillion attributed to spot transactions. Significant expansion in the online commerce was facilitated by growth in the use of prime brokerage, with a constantly increasing number of retail investors, andlargely contributed by technical and algorithmic trading activities. Many strategies such as robotic-scripts have been developed and successfully used, which was based on sophisticated indicators and the market conditions at the time.

But 2009/2010 choppy lateral markets painted a glum picture, particularly for those who continued to rely on low spreads and low stop losses. Due to the increased volatility, the spot transactions risk, on the central market clearing level, is often much higher, which is passed back to the individual trader in form of the increased spreads. The good news is that the extreme swings of currency fluctuation can be used for profit generating, but the good times of stable trends are nearly gone. Today, it is rather chancy to rely on technical analysis for manual trading. The markets are unpredictable and often turning into extremely choppy. The online Forex has changed, not because of brokers, trading systems or investment speculations but due to the slow and unsure recovery of global economy, trade imbalances, vulnerable energy prices, contradicting reports on oil reserves and sudden intervention by central banks attempting to adjust the value of their currencies. All of which is not necessarily passed to the individual trader via fundamental news, but certainly, it is reflected in our currency pairs and charts.

Currencies and stock indexes are often leveraged to oil prices which make them behave in a similar way, and pumps even more fuel to market volatility. However, without volatility there is no gain! So where is the problem? The real problem with most of the trading systems during the volatile conditions is that the strong zigzag fluctuations on currency graphs go for your stop loses, and take them time after time. Most of the automated trading systems rely on build-in indicators and low spreads, and will not execute any trades until certain market conditions are attained. This may seem like a safe approach, however, you may realize that waiting for weeks for a position to be opened is rather counterproductive. Your investment deposit, instead of making returns, provides liquidity to the market, until you take it back or change your trading style.

How to harness the market and form a profitable trading strategy fed on volatility is a good question.

The answer is High Frequency Algorithmic Trading which in practice is quite simple and much easier then it sounds by name.

High frequency traders operate with modest leverage and use personal computers to run the software that analyze the market and execute trades precisely and efficiently within milliseconds. The revolutionary advance in speed has been made possible by use of real-time trading platforms such as Meta Trader 4. The high frequency trading strategy profits by using the swings in mini and mid scale (M1 to H1 charts) and by providing bid and ask information to the trade executing algorithms. The strategy is constantly altered to reflect the changes in the market and is able to trade with increased spreads intelligently, regardless of market conditions.

The new algorithmic trading tools, apart from having the ability to predict fluctuations – entering at a perfect time and profitably completing the transactions – are also capable of triggering plan B, which deals with the abrupt movements attributed to either the release of major economic news or unexpected, huge transactions within the central banks. You will love that volatility as much as we do; it is a power chamber to drive-up the balance on your trading account.

The strategy, flexible enough to withstand a vast array of market scenarios, literally feeds on volatility. It is simple to use, and you can deploy it from your PC even if you have no experience. It does not dependent on low spreads for order executing. The “take profit” value ranges in-between 30 to 150 pips, trading starts within minutes from activating and carries on 24h a day, 5 day a week.  There is no need to wait for the low spread Asiatic Trading Sessions, not any more.

Optimized on FX Majors and Gold vs. USD, the system gives you a full range of options if you wish to diversify your trading portfolio. You will also find an easy access to compatible no-dealing-desk ECN brokers who offer MT 4 platform free and advantages of trading with the institutions regulated by FSA.