ATR-derived Stop Loss Level

.

After reading my online buddy’s blog entry about MAE/MFE analysis, i thought it’d be worth posting this note about how we calculate stop loss level based on ATR (Average True Range).

Using a fix n pips distance for SL and/or TP is the simplest way a trader would do. But sometimes, the market would perform differently from time to time. Sometimes the market moves wildly with longer candle body, sometimes it moves very calmly with a very low volatility. A fix n pips SL/TP wouldn’t fit into the always changing market’s volatility behavior.

Moreover, we surely want to test a strategy in several different currency pairs. And because each pair would have different volatility behavior, using an ATR-derived SL/TP level would provide us with a system that can literally self-fit into any kind of volatility behavior.

These are some sample lines from our strategy. It calculates ATR first:

atr_SL = iATR(Symbol(), 0, prm_normalization_atr_period, 1) * prm_SL2atr_ratio;

and then this atr_SL value is used to calculate SL distances as follows:

stoploss = NormalizeDouble(Ask + atr_SL, Digits);

so the value of the SL distance would be based on ATR, not a fix n pips.

(*)

Anticipating Price Feed Difference between Brokers

We have noticed a significant difference in the performance of our systems in several brokers. We have been wondering what may be the cause of it. When we examined the situation more closely, we found that an exact same algorithm has produced fewer trades in a more-filtered price feed environment.

How can this happen? Well, generally, the OTC FX market is a bilateral market, between the market-maker type broker with the traders. Thus the price quoted by each brokers would not be the exact same price. Some brokers apply some filtering algorithm for their feed, creating a smoother chart that may effect the performance of certain trading systems.

So, we have just added some adjustment into one of our algorithm, by adding/subtracting a certain pips off the trigger level as can be seen in the picture below:

(*)

Bigger New MT4 Brokers

After the upside-down in the Metatrader brokerage business following the new regulation regarding minimal capital requirement of FCM took place, bigger corporations have started to adopt MT4. Perhaps they start to realize the magnet of MT4 in attracting a significant portion of the retail trader customers.

Among several big names we know who adopt MT4 are FXCM and RCG (Rosenthal Collins Group). FXCM is still planning on this move, it is said to be ready in 2008, if there is enough interest in it.

Meanwhile, we’ve been demoing RCG’s MT4 for several days now. They have a sub-pips spread. As we can see here in the tick chart screen shot below, EUR/USD was traded with a sub-2 pips spread during London/European session:

This information below is taken from tradeviewforex’s website:

• Recently ranked by Futures magazine as #21 out of the top 50 brokers in the world
• Second largest independent FCM
• $46 million of net capital
• $735 million in customer assets, 20,000 accounts, assets over 4 billion
• Can trace its roots back to 1923
• Online accounts: streamlined setup, don’t necessarily need to provide license or utility bill, approval within 24 hours, all money transfers will be in customers account by end of day (typical time is 24-48 hours) enabling trading to begin immediately.
• 15 offices worldwide
• 24 hour trading support
• Straight pass through for unprecedented trade execution
• Three options for accounts: Tighter spreads, higher interest, or straight through processing
• Utilizes familiar MetaTrader 4 software
• You want to place your hard-earned money with a stable, well-capitalized brokerage firm. We have been around for over 80 years, and our financial standing is only getting stronger. Over the past two years, our Customer Funds increased by an astounding 63%. For more information on our solid financial record, see our 2006 financial statements.

But still, we’re looking for a UK-based MT4 broker now.

(*)

MT4 to non-MT4 brokers via Strategyrunner

.

On Nov 13, 2007 5:41 AM, Darma <sub01> <b01@gmail.com> wrote:

www.strategyrunner.com server based solution for trade automation.
Several non-MT4 brokers provide access for strategyrunner.
And one of GFT’s web page says that it also integrate with Metatrader 4.
http://www.gftforex.com/software/dealbook360/sr.asp
im not affiliated with any of them.
Does anyone have any experience or comment on this?

Thanks.

Access the next generation of fully automated algorithmic forex trading using
seamless data integration tools to communicate between two separate
software programs. This allows you to easily automate strategies that
have been created through TradeStation, Wealthlabs, MetaTrader 4
or MS Excel. Any standard GFT trading account with a strategy written
in one of these four platforms can obtain the Strategy Runner service
at no additional cost.

Your strategies can be fully integrated to work with Strategy
Runner’s platform, and your trades will be executed through GFT. This
formula, combined with GFT’s reliable trade execution and over 99
percent uptime, is well-suited for the 24-hour, 5.5 days a week, nature
of the forex market.

About Strategy Runner

Strategy Runner’s powerful
innovative server-based technology for fully automated algorithmic
trading solutions integrates the needs of buy- and sell- side
institutions to access, automate, distribute, and execute trading
algorithms. It provides flexible customizable solutions for centralized
secure distribution of broker-supplied algorithms over multiple assets,
accounts and clearing firms.

===========================

On 11/13/07, Carl Sanders <traden4x@gmail.com> wrote:

I have had no experience with them. I know someone who uses/has used them and has had some problems lately. Slow or possibly no execution. I have something similar to this but not to GFT. There is definitely a need for this.

Carl

===========================

On Nov 13, Darma <sub01> <b01@gmail.com> wrote:

When one can put Metatrader 4 working with strategyrunner, he can trade through Man Financial’s Currenex platform, the MF Spot On (http://www.mfglobal.com.sg/en/etrade_MFXSpot-On.html).
It says:

Automated System Trading

MFX Spot-On, our professional electronic Foreign Exchange trading
platform, is compatible with automated system trading applications. We
facilitate algorithmic trading for clients by providing API
(application programming interface) for algorithmic connection
functionality. Clients who have developed and host their own models can
connect to MFX Spot-On using third party systems.

The “third party systems” is meant to be strategyrunner, as I was directed to MFXSpot-On page from a banner in strategyrunner website.

Rgrds,
Darma

===========================

For archives of Experts and Indicators from the MetaTrader Experts and Indicators Group
See http://www.forexmt4.com/ or http://www.lightpatch.com/forex

Scalping wisdom

.

Some traders have put an enormous amount of time developing scalping strategies. One of them is a German trader named himself as Winwin. Despite of his controversial strategy in the 2007 EA Championship, his wisdom seems to be worth examined:

“….for me there are two scalping techniques.
first technique: in trendmarket take out some trend pips of the trend. if i want it to do in short term there is the problem that in a trend the market is moving fast. i cant set pending orders all the time in championship, because so i would create a very big journal. so i had to use marketorders, but in fast moving markettrends i will nearly always get a reqoute.
second technique: find out a range and trade in the opposite direction on the borders or on some points. but dont trade the whole range, only some pips. so you have more time for a marketorder because it is not a fast moving market.
i will underline, that this is my definition of scalping possibilities. it can be completely wrong to books maybe………..”

His wisdom has sparked an idea of a new strategy in my head. Especially with this idea of modifying a scalping technique to be accepted by most Metatrader brokers. Will discuss it tomorrow with Yogi, the programmer. Can’t wait for tomorrow. lol.
When having hot ideas in the head like this, i feel like being a 10 years old boy who has just been given a pair of new shoe, that he even wears the new shoe to sleep. lol.

(*)

Mistigri – MT4 Obfuscator

http://www.mistigri.net/Products/MetaTrader/Obfuscator.php

Rather than contemplate whether to publish your work or not, let’s just make it a bit more difficult for the bad guys because is it worth it for you to give away a free indicator or script or expert and have some person (jackass) decompile and give the source code away? I have heard that there is a group out there that dedicates all its time decompiling anything they can get their hands on … bastards.

This product will remove all comments from your original mql file and will also format the code in such a way that it will be very hard and it will take a lot of time to make any sense out of it.

Download the MT4 Obfuscator at the bottom of this page, copy it into your experts folder. Double click on MT4Obfuscator.exe, on the prompt window type in the name of the file to obfuscate. For example “MACD.mq4” then press enter. Note that the file name can not have a space in it … Then enter the output file name. For example “Obfs_MACD.mq4” and press enter. When the app is done press any key to exit the app.

Now in the MetaTrader 4 editor open the obfuscated file, in my example “Obfs_MACD.mq4” file and compile. Should you choose to distribute your EA, make sure to send out the obfsucated ex4 file.

(*)

Fwd: [MT_E and I] Moderators: You rang?

I’m proud of being his friend and knowing him personally.

Rgrds,
Darma

———- Forwarded message ———-
From: umanmojo
Date: Jun 18, 2007 12:13 PM
Subject: [MT_E and I] Moderators: You rang?
To: MetaTrader_Experts_and_Indicators@yahoogroups.com

Folks, it’s been a long while since moderators said anything.
Honestly, we don’t like to but since there have been several hails for moderators lately, here goes:

If we remember correctly, the RSI pullback technique was originally pointed out by blackprinzze and welcomed by David Honeywell’s indicator code (transport_david) then soon gets adopted by others as Expert Advisors. Apparently, after certain phase of code development, the source codes to later enhancements is not divulged though the final compiled file is shared freely for trading. We dont think this categorizes as a phishing-like exploit, as we all know what the basic concept is and everyone is welcome to develop their own versions of the same concept. A grey area, but it’s more or less still workable.

The no .ex4 policy was originally made on the ground that people are using the sample file for either commercial/phishing exploit or senseless bragging – both keeping others out of participation to gain profit along with the author. If you do not want other people to use it and profit with no strings attached, SHUT UP & KEEP IT TO YOURSELF. The group is made for sharing after all. Please keep praises, comments, reminders, and critics to be constructive and leading for an objective conclusion, if solution is harder to find.

If anybody wants to do better, then have your own tweak/idea, show it, prove it, open the code, and continue supporting it. Ron Thompson has set an excellent example on his BollTrader and we are truly grateful for his selfless efforts.

Honestly we, the moderators, are quite surprised that with all the website forums on trading and metatrader code development out there, the YahooMT group is still breathing and stronger than ever with 8500 members. The group had come a long way from 2004 being the first
international group to focus on Metatrader (version3 days), survived through the troublesome days of early Metatrader 4 technical and broker issues, and still wrestling newer builds today. A free charting/development software that was previously unnoticed has paved the way for normal folks to take a shot at making money in the entrepreneurial & rather rocket-scientist way.

As some of you who have been with us since the beginning, you may know that we never liked to have a ‘moderated’ group. The only thing that’s moderated here with extreme prejudice is SPAMMING. We have strong personalities on board that represent different personal values. With that, you eventually have your occasional dose of name-callings, brawls, flames, pissing contest (which we didnt want sponsor-ridden, eventually cancelled, and coincidentally later MQL4 championship came out), whatever – you name it. All the spices that make a community colorful. But guess what? We are still here and learned to get along better with each other as new day comes.

By design, this mailing list/group is NOT a threaded forum and will never be. Strangely it still survived as is. Why? Because everybody likes to have his/her nose pointed at one direction, at one time or another. What you typed, attached, and sent to the group will be
served on the front page of things. The disadvantage? Try 100’s of mails/messages a day. Work with or around it. There are more than one way to organize the group’s mails.

Great ideas have been put forward here and worked out, if not come and go. Elder’s TSD (yes remember that one with the multi-timeframe backtest tweak on MT3?), FFCal, BollTrader, now RSI_R2 come superRSI, to name a few. A lot of EAs/indicators/methods have had their
15minutes of fame. We’re expecting more of those with better community attitude and support, but on minimal moderation. We’re all grown ups – or at least we thought we should be.

So,

To newbies and topic jumpers:
READ FIRST, ASK LATER. It’s all there. In case you subscribed on digest format or without attachment since you thought you were getting too many messages, don’t complain if you are missing the goodies. You got what you asked for, so avoid whining and if you do have to whine, be polite. Also, don’t complain if people wont answer right away, because they did, a few posts back. (Yes, we know you didn’t look thoroughly). Remember, even nice people can get pissed off. Thanks again to Ron’s generosity you can pickup what you’re missing at http://www.ForexMT4.com/

We won’t judge or stone you for joining only since you just heard of profitable EA’s here. There is no elite/non-elite stuff going on here. Only people who wouldn’t read the archives (and the link in the group joining/welcome mail message!!!) and people who would.

To the regulars:
APPLY RESPECT. It has been great so far and we think the group can be better. Thank you for making this little place great with your contributions.

More power & pips to all!

Mods (Bill, Mojo, Smoky, Perky)

Final tip:
Subscribe to this group in full with attachment and the whole shebangs through GMail. You can store up to 2-3 years worth of group messages complete with file attachments. Then use the GMail rules to forward them to your daily POP3 mailbox or organize them by labels. If you want to look for something later, look at your GMail archive. Yahoo mails are getting unlimited capacity, but we are not sure about organizational feature. Can somebody confirm?

For archives of Experts and Indicators from the MetaTrader Experts and Indicators Group
See http://www.forexmt4.com/ or http://www.lightpatch.com/forex

Yahoo! Groups Links

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Archive of metatrader forum discussion

Link: http://www.ForexMT4.com/

this is where all the goodies are stored.
thanks to Ron who provide the site.

Fwd: Preventing over-leveraging (Was: IBFX problems)

———- Forwarded message ———-
From: Darma
Date: Jun 14, 2007 8:26 AM
Subject: Preventing over-leveraging (Was: IBFX problems)
To: MetaTrader_Experts_and_Indicators@yahoogroups.com
Cc: indotraders@yahoogroups.com

Regarding preventing over leveraging the account, i have these lines on my EAs :

// Money Management
if (prm_mm_enabled) {
volume = NormalizeDouble((AccountBalance()*prm_gearing_ratio)
/(prm_pair_diversify*MarketInfo(Symbol(),MODE_LOTSIZE)),
prm_lot_resolution);
} else {
volume = prm_mm_fixed_volume;
}
if (volume > MarketInfo(Symbol(), MODE_MAXLOT)) {
volume = MarketInfo(Symbol(), MODE_MAXLOT);
} else if (volume < MarketInfo(Symbol(), MODE_MINLOT)) {
volume = MarketInfo(Symbol(), MODE_MINLOT);
}

i use prm_gearing_ratio = 5 to 6. 10 is the most agressive number for me.
prm_pair_diversify needs to be input externally by me since i havent found a way for the EA to detect by itself how many pairs it is trading in a single account at a particular moment.
Does anyone has any idea on this?

Rgrds,
Darma

On 6/13/07, accrete <yahoogrp01@accrete.com > wrote:

I agree on not overleveraging the account. I know that (as mentioned and hoped for by another member) the idea Bluto stated he would incorporate in a future version is that of telling the EA just how much of the account it was allowed to trade. This would add a measure of safety also.

: ) Thom

—– Original Message —–
From: Sam

One thing to avoid is overleverage. I believe it’s best to leverage only around 10-20% of the account. Usually when we overleverage we want to be stringing on SL thereby prone to SL hunting as well as margin call danger. Forex is full of suprises. The goal is to be able to survive long term.

__._,_.___

For archives of Experts and Indicators from the MetaTrader Experts and Indicators Group
See http://www.forexmt4.com/ or http://www.lightpatch.com/forex

(*)

F is for Final

After the sharing session, I do this small change to the algorithm, where it does the money management part of it.

volume = NormalizeDouble(
(AccountBalance()*prm_gearing_ratio)/
(prm_pair_diversify*MarketInfo(Symbol(),MODE_LOTSIZE)),
prm_lot_resolution);

This will automate the process in determining the position size based on a fixed number of gearing ratio.
I have a 5.33 gearing ratio, this will be the value of prm_gearing_ratio.
prm_pair_diversify will be 2, since the system will be run on two pair: EUR/USD and GBP/USD.
When trading on a mini acct, the MarketInfo(Symbol(),MODE_LOTSIZE) will automatically return a value of 10,000 or 100k when trading a standard account.
With this piece of code, i dont have to calculate some basic arithmetic on waste papers anymore. LOL.
This version is tagged as vy5f. So the version is StealthTrader_vy5f now. I hope F is for Final. he he he..
Good luck to us !!!

Concern about the future of IBFX business

National Futures Associataion (NFA) has recently filed a complaint to Interbank FX and its principal, Mr. Crossland. The issue has been a major concern to the metatrader user, especially those who has account with Interbank FX. (That is including me. )
After reading the case sumary, I understand that the issue is about false claim in marketing materials, and nothing to do with unfair dealing practices nor any management frauds.

But still I have this thing in my head, since I have my money with them. So I sent this message to Patrick Nouvion to have his direct opinion on this matter.

Dear patrick,
I am a regular reader of your blog.
I can understand that you are the correct person i can ask this question and expect a good answer.
It is about the recent NFA action against Interbankfx.
I read it here at this link.
What do you think of this. How will this affect the future of interbankfx business ?
I am concerning my money in the account, but i worry more on if interbankfx has to stop its operation, it will be a huge loss to the metatrader fans. ibfx is a valuable asset to metatrader fans community.
Thank you in advance for any answer from you..

Rgrds,
Darma

and this is reply from Patrick:

Hi Darma,

There is really nothing to worry about, IBFX will certainly have to pay some fines but nothing that endangers their business
If you really into the NFA’s document you will see that the reasons for these fines were more marketing/advertising issues than business operations …
IBFX will not go out of business over that type of issues
_________________
Patrick
Visit my Website

So, we can all sleep in peace. LOL
Again we all can see a good practice of NFA in regulating OTC brokers in the US.

Another reason to share

Ron is an inspiring fellow trader/researcher at the MT_E_I community.
Here is an excerpt of emails exchange between me and him about sharing our knowledge and research achievement.

From: Ron Thompson
Date: Apr 30, 2007 12:35 PM
Subject: Re: a personal question about sharing
To: Darma

Darma,
Sorry this reply took so long. Let me try to answer the questions for you.

At 12:06 AM 3/15/2007, Darma wrote:

Dear Ron,
I am thankful for your sharing the bolltrader ideas and expert advisors and also your tons of contribution in the community, where I learn so much from.

You’re very welcome.

Ron, I always have this question in my head, how do you so confidently share your ideas and works to the open public ? dont you ever worried that the market will anticipate your system or trading ideas, thus making it not profitable anymore in the future ?
Thank you for your time answering my silly question.

Not silly at all!
I do in fact have some nagging suspicions that, not necessarily the market, but my broker, or rather their MT4 server actually does something like that.
I have seen just at the moment the price reaches the trigger point for BollTrade, the spreads widen by 2-3 pips. Now I don’t track support/resistance, so the spread could have gone up because of that, or even because of something that IBFX saw from the ECN that they “smoothed”.
But I just think in the long run, that there are too many people and too many trades to track a minilot and worry about it.
The other thing I count on is people. When the 1st bad trades happen, they’ll abandon the EA. If they’re using martingale, and have to use 11 lots to recover a few minilots, then they’ll abandon it. noone will stick to any one trading EA for more than a few weeks.
I, on the other hand, will stick to it. I know there is a learning curve where you have to try a lot of stuff. I’ve done that. I’ve lost a fair bit of money during the process. But as my wife says, it’s the cost of education.
I’m now funded well enough to be able to let the EA run mostly on it’s own, which many people won’t be.
The other thing that I see is that no two brokers give the same results. That puts people off too,
So as you see, I’m not too worried about a “disaster of success” because I don’t think it will happen.
One thing I just do not know is how many people are actually running BollTrade. For all I know there could be 10,000 people running it across the globe optimized to their broker making tons of money. If so, it hasn’t affected my trading at all.
Hope that explains a little

Ron

So, another reason to share.. There could be 10,000 people running our strategy across the globe, making tons of money. It won’t affect our trading at all.
Let’s share !!!!

Risenberg Research Sharing Session

Dear Researchers/Traders @ Indotraders,

I will be in Jakarta during this week.
I’m leaving Bali today, and planning to be back to the island by Saturday.
I am inviting my fellow researchers in a sharing session. I will be presenting Risenberg’s latest research on systematical trading. A volatility-exploiting trading system will be discused and disclosed to a limited number of active researchers. This is a culture we had a long time ago when the Indotraders group was founded, and I am trying to bring this back. I’m so tired of witnessing the always-want-the-easy-way newbies slamming their words in the group, attacking other members while hiding behind the anonimity of their funny email addresses. So chicken of them :p

This will be a sharing session. We will discuss the research, I will ask for feedbacks and ask for suggestions from other researchers.
This will not be a promotion / marketing event since there will be nothing to be sold or offered. My old fellows here know that I’m not that kind of a person.

Please contact me on my phone number: 081XXXXXXXX if you are interested to join the session. No want-to-be-rich-quickly type of people please !! Only fellow researchers and traders. Humble people only please. No negative-minded people who always trying to find the bad side of things like we’ve been seeing more often lately in this group. :p

The venue will be at my office at Fatmawati, probably on Friday evening, after offfice hour. Please bring your own food/drink, bring your own notebooks, pens, because I will not provide any of them, nor asking any payment for anything like they always do in seminars.

The meeting room will fit for only 5-10 people. If there are more people confirming to join, I will try finding different places otherwise I will be limiting the number of people.

This is for free. Not “shovel selling” kind of seminars, so please: no shovel seekers !!!

Rgrds,
Darma

p.s.
just in case some idiot cynical person in this group will speak, I wud like to say sorry for using English. I recently prefer to write in my blog rather then in shovel-seekers groups, and many readers of my blog dont speak bahasa.

Penurunan volatilitas

Gue pernah tulis di blog ini tentang turunnya volatilitas di market forex majors.
Nah ternyata hal itu lah penyebab drawdown dari STS seminggu ini, dan kurang cantiknya perilaku STS di pair USDCHF dan USDJPY semenjak november 2006.
Setelah mikir-mikir dan utak-atik statistik, akhirnya gue tambahin code ini di bagian pre-trade filternya:

// these lines are to avoid trades on low volatility pairs :
((!prm_atr_far_filter) ||
(val_far_atr >= prm_tp_pips*Point+
(prm_min_vol_spare*MarketInfo(Symbol(),MODE_SPREAD)*Point)
)
) &&
// end of code to avoid trades on low volatility pairs

Dengan penambahan filter seperti ini, ternyata STS mampu menghindari banyak sekali losing trades pada saat2 volatilitas menurun. Biasanya terjadi karena gerakan market tidak cukup volatile utk meng-hit TP, keburu lari lagi jauh2 dan malah hit SL.
Hasil modifikasi ini menjadikan STS sampai pada versi vy_6, menggantikan vy_5b yg masih terlalu mengandalkan siklus historical, tapi kurang peka dengan penurunan volatilitas.
Di versi vy_6 ini, performance STS meningkat tajam, profit factor menjadi 2.0 +/- 20% di beberapa tested pair.
Hasil nggak tidur selama 3 hari ini ternyata sebanding dengan hasil yg didapat. He he he..
Capek tapi hepi. Dan seperti biasanya: Good luck to us.

Found another bug

I’m so happy when last night I found this bug (line 255):

cond_exit = COND_EXIT_BUY;
close_order(OP_BUY, MAGIC_NUMBER_SELL);

Using this MAGIC_NUMBER_SELL on the last line, has made the system unable to close the appropriate BUY trades.
Now it has been fixed to be like this:

cond_exit = COND_EXIT_BUY;
close_order(OP_BUY, MAGIC_NUMBER_BUY);

and for documentation purpose, i’ve put these additional lines:

// vy5 – fixing prm_use_calc_tp wasnt working well in vy4
// – possibility to turn off all logging
// – fixing hedge filter for sell
// vy5b- fixing prm_exit_when_opposit on buy trades was wrong, now fixed
// – putting optimized values on external parameters

These things happen often because of the the copy n paste practice on the initial development stage. It is now named as vy_5b.
I’m replacing the previous vy5 version to the trading server now.
The change will take effect from tonight.
Good luck to us.

Cross platform

Statistics and mathematical formula are run in Metatrader platform.
Price feed from Telequote.
Execution on Pro-i platform and MBT Navigator.
What a mess…. LOL !!!

Class dismissed :)

It has been since January, a basic-to-advance training session, delivered for the TGF’s people.
I hope they will be more than ready for the next step, running some of our mechanical trading systems.

(*)

Less Volatility

I’ve witnessed a decreasing volatility in all forex pairs. This was observed when I put a long term ATR indicator into several forex pairs on all time frames. During the last 7 years, the volatility have been declining by more than 40%. I thought that was only me who observe such a shift in market behavior. But then I found this article on FXCM’s website:

Why the Forex Market Changed

Through the 1980s and 1990s, and even into the new century, the distinctive characteristic of the foreign exchange market was its volatility—a volatility that was a reflection of major imbalances between national economies.
When a country over-spent or over-borrowed, or when its external trade went wildly out of balance, its interest rates were forced up and its economic growth slowed down. In the forex market, the country’s currency also paid the price—usually by sudden and sometimes drastic devaluation. In short, economic imbalance generated currency volatility.

Increasing globalization has changed all that. In today’s world of tightening economic interdependency, it is in every country’s interest to maintain economic and financial stability—even if it costs. And trade surplus countries (in particular China) now effectively underwrite trade deficit countries (in particular the US) in the name of stability and an orderly market. As one result, interest rate differences are compressed. As another, currency volatility is minimized.

The New Range-Bound Forex Market

The forex market has undergone a profound change. In past years, a trade imbalance or an interest rate shift could suddenly move a currency price hundreds of pips. For that reason, success in the forex market followed a traditional formula: Cut your losses short, but let your profits run. Traders took small losses quickly, but rode big trends for big wins. A volatile forex market rewarded breakout traders.

Using that formula, professional traders were disciplined enough (or their black boxes were disciplined enough) to absorb several small losing trades, because their one, very large win more than made up for them. Using a breakout trading system, only 30% of the trades had to be winners, because the payoff on a breakout trade could be six times the total of the losses. The risk/reward ratio and the mathematical probabilities were in their favor.

Metatrader Brokers

Here is a compilation of several brokers providing Metatrader interface. This is taken from Bob’s posting on the Metatrader’s yahoogroups.

*********************
From: Bob [mailto:grumpyone@…]
Sent: Tuesday, November 22, 2005 6:16 PM
To: MetaTrader_Experts_and_Indicators@yahoogroups.com
Subject: Re: [MT_E and I] Experts Prohibited

I have not checked all these links out to be sure they go somewhere. But it should give you a good starting point of MT4 Brokers

Bob

• Admiral Investments and Securities Ltd. http://www.forextrade.ru
• Alpari Ltd. http://www.alpari-idc.com
• APEX FX Trading http://www.apexfxtrading.com
• Bull Trend Brokerage http://www.bulltrend-bg.com
• FiboGroup http://www.fibogroup.com
• EuroForex Development LLC. http://www.euroforex.net
• fxTeam http://www.fxteam.ru/
• Financial Network Worldwide Ltd. http://www.forexservice.net
• FinMarket Ltd. http://www.finmarket.com.ua
• Forex Global Investment LLC http://www.forexgi.com
• Forex Ltd. http://www.forexua.com
• FX-Pro Ltd. http://www.fx-pro.com
• IC Vector Securities Ltd. http://www.icvector.ru
• Inforex Introducing Broker http://www.inforex.org
• Integral Bank http://www.fxintegral.com.ua
• Interbank FX http://www.interbankfx.com
• Jaguars Investment LLC http://www.jaguarsinvestment.com
• Joy Financial Group http://www.joyfg.com
• KVB Kunlun New Zealand Limited http://www.kvbkunlun.com
• Lefco Bank http://www.lefco.ru
• Livingston Investment Inc. http://www.mytrustbank.com
• Man Financial (S) Pte Ltd http://www.manfinancial.com.sg
• MIG Investments Group LLC http://www.miginvest.com
• Orion Global Financial Services http://www.orionbrokers.com
• Performance Forex GmbH http://www.eforex-asia.com
• Real Trade Ltd. http://www.realtrade.lv
• STS Finance SC http://www.finance.sts.bg
• Teletrade D.J. International Consulting Ltd. http://www.teletrade.ru
• The Commercial Group http://www.cgtim.com
• TradeFXDirect.com, Inc. http://www.tradefxdirect.com
• Ukrsotsbank http://forex.ukrsotsbank.com
• Windsor Brokers Ltd. http://www.windsorbrokers.biz
• X-Trade Sp. z o.o. http://www.x-trade.biz
• FXBest http://www.fxbest.ru
• ManFinancial http://www.manfinancial.com.sg/en
• SNC investment http://www.sncinvestment.com
• FXDirectDealer http://fxdd.com
• Neurex http://www.neurex.de
• NorthFinance http://www.northfinance.com