FOREX Perfection In Manual, Automated And Predictive Trading

FOREX Perfection In Manual, Automated And Predictive Trading

MOSTAFA AFSHARI

First Edition

Copyright©2018 by Mostafa Afshari

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the author, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests or sending feedbacks to be published in the next editions please contact the author at [email protected]

DISCLAIMER

The purpose of this book is mainly informational. The user of this book is the sole responsible for any possible loss that may incur by using the information herein. The author totally declaims such losses.

This book is dedicated to persistent traders all around the world

Introduction

Manual Trading

Automated Trading

Predictive Trading

Chapter One: Trading Signals

1.1 Highly Probable Chart Patterns

1.2 Price Rejection

1.3 Deviation From Mean

1.4 Volume Up And Down Spikes

Chapter Two: Essentials of Manual Trading

2.1 Signal Strength (Accuracy)

2.2 Signal Profitability

2.3 Signal Manageability

Chapter Three: Scheduling A Manual Trade

Chapter Four: Automated Trading Platforms

Chapter Five: Introduction to Automated Trading Strategies

Chapter Six: Developing an Automated Strategy

6.1 Choosing Base Signal

6.2 Choosing Entry And Exit Methods

6.3 Pre-Processing (Smoothing or Filtering) Of Base Signal(s)

6.4 Backtesting, Optimization, Performance Evaluation And Unseen Data (Walk Forward) Testing

6.5 Strategy Diagnosis

Chapter Seven: Demo Trading Hiring A VPS

Chapter Eight: Real Automated Trading

Chapter Nine: Modeling of Forex Time Series

9.1 Types of Forex Data

9.2 Model Execution and Optimization (BCMEM)

Chapter Ten: Prediction Models

10.1 Forex Prediction Using Gaussian Process

10.2 Forex Prediction Using Analytical Functions

10.3 Holy Grail of Forex Prediction

Chapter Eleven: 15 Minutes A Day Trading

Chapter Twelve: Final Advice

Introduction

At first look, doing Forex seems too easy and straightforward but in reality many difficulties emerge. In my opinion, the reason is that Forex is a dynamic system and managing such systems is quite tricky. However, in this book I have tried to provide some qualified, statistically sound solutions to beat this hard to manage system. My solutions have been organized in three categories: manual, automated and predictive trading. Traders, according to their habits and trading style can pick one, two or a mix of the methods to finally do Forex as flawless as possible.

Manual Trading

In this chapter I have discussed manual trading around three essential concepts of accuracy, profitability and manageability. Using these concepts I have shown how filter out bad trades and reach handpicked super highly probable trades to execute. The following picture shows an example of this process of high performance trading.

Automated Trading

Thanks to the modern technologies, automated and algorithmic trading is getting more popular day by day. In this part of the book, using a super-fast, easy, flexible and advanced free software you will learn how develop viable automated strategies in just a few days. The software language is super easy to be learned and you can make use of it in a few days. Moreover, some new thrilling features are added to this software in each release that makes it even more powerful. I highly recommend you don't miss this stunning software and its capabilities. The following picture shows backtest results of a sample strategy that has been developed by this software:

Predictive Trading

One of the biggest difficulties in trading is lack of confidence and certainty to enter a trade. Because you cannot thoroughly analyze historical charts, you are in constant hesitation to enter your expected trades. Imagine you can predict next day prices