What do you need to make better trading decisions?

This page shows you how the FX AlgoTrader tools fit within the trading process

The Basics 

Tools and Resources

An Economic Calendar

You need to know what economic news releases are due each day. If you don't know what's being released and when you are trading in the dark and you will destroy your account!
Economic calendars are available here

Deciding what to Trade?

The old school method was to do 'top down analysis' - this means starting on the monthly timeframe and drilling down to the lower timeframes on ALL the assets you tend to trade. Obviously this is quite time consuming! If you use Index and Flow tools you can see what's going on in the market much more quickly


Orion calculated and tracks real time currency index data. Using multi-timeframe currency index data allows traders to instantly see what the strongest and weakest currencies are. It's always best to align your trades with the trend - buy strength and sell weakness!


(Subscription Service) - This is another index based tool which doesn't require MetaTrader to operate - it's a platform independent service which you can subscribe to on a monthly basis without any contract lock in

Range Analyzer - This tool analyzes the ATR (average true range) for a basket of currency pairs.... traders can instantly see which currency pairs are moving the fastest based on the ATR histograms... the tool also records new highs and lows which is useful for pair selection.


Support and Resistance Based Entry Techniques

Once you've got an idea of the assets you would like to trade you need to decide how you're going to get an effective entry.... support and resistance entry tenchiques are our favourite as they don't suffer from indicator lag

Tools and Resources

Pivot Levels

You must know where the hidden support and resistance levels are for your chosen trading asset. Support and Resistance can be defined in many ways but the most common and widely used methods are based on previous price action (previous highs and lows) and Pivots. Ultimately its better to use support and resistance levels which the majority of other traders have identified. So you need accurate pivot tools rather than poorly coded freeware or 'monkeyware' as we call it

JFX Pivot System - Supplies a multi-timeframe (Daily, Weekly and Monthly) time-shiftable pivot system for MetaTrader MT4 - we believe this is the most accurate pivot software on the market as it uses hourly chart

We also market several other pivot systems such as:-
Daily Fibonacci Pivots
Quarterly Rolling Pivots

Six Monthly Rolling Pivots

Predictive Pivots

Confluence Levels

Confluences are where two or more techical levels align exactly or are close to each other. Confluences can be made up from combinations of technical factors such as multi-timeframe pivots (Daily, Weekly and or Monthly), longer range pivots such as Quarterlies, Fibonacci retracements levels, price defined support and resisance (previous high/lows).... the more factors contributing to a confluence the higher the chances of a price reaction... so you need to identify your confluence levels

Pivot Confluence Scanner (Subscription Service) - This is a service based pivot confluence scanner. It uses a JavaFX alert system so you don't need to have a trading platform running to receive confluence alerts.

Market Flow

Understaing how price action is behaving on all timeframes for your chosen asset/pair is important. If you can see price action breaking through resistance on multiple timeframes the Market Flow is UP and vice versa (DOWN) when price action is breaking through support levels. If your chosen asset has Market Flows which are aligned on several timeframes this makes it a strong candidate to trade

Market Flow Indicator- This tool calculates the market flow on all MT4 timeframes and displays all the flows on the same chart window. The flow data is based on fractal based support and resistance which are defined from previous swing points specific to each timeframe.

Trendlines

Trendlines can provide excellent entry signals in both trending and rangebound market conditions

Trendline Alert - A simple but elegant entry method where the trader receives an alert when price action touches a trader defined trendline.


Conventional Indicator Based Entry Techniques

These are text book indicator based entry methods which we developed tools around. With the exception of Tick Volume all these techniques have an inherent lag association with them so it's important to understand how to select the most appropriate tool to suit the market conditions you are trading in.

Tools and Resources

Moving Average Crossovers (Trending Markets)

Where two or three moving averages crossover has often been used as an entry method. It's important to know that moving average crossovers do not perform well in rangebound markets but when the market is trending, moving averages are an excellent way to buy dips and sell rallies. When the market is rangebound, oscillator based indicators such as MACD, RSI and Stochastics tend to be more effective.

Triple Moving Average Crossover - This system is excellent at picking great entry points in a trending market. Can also be used as a twin MA crossover system.

Price/MA Crossover Crossover Alert - This system alerts the trader when price crosses above or below a defined moving average... for longer term moving averages this type of alert can signal an impending trend change

Oscillators (RangeBound Markets)

You have a wide array of oscillators to choose from but pay attention to the fact that ALL oscillators lag... so be careful if you're trying to use oscillators on lower timeframes as the signal may well be to late. They tend to work better on higher timeframes. You're entry won't be perfect but at least there should be some bacon in the length of a potential leg up or down. Playing around in the M1 and M5 timeframes with osciallators is generally a waste of time. It's just noise and it's where all the novices are blowing their accounts... stay higher!

MACD Turbo - A tuned MACD system with crossover alerts, waterline (zero cross alerts), email alerts and histogram display

RSI Alert Plus JFX - A tuned RSI system with crossover alerts for overbought and oversold conditions

Stochastic Crossover Alerts - A tuned Stochastic Crossover system which can be totally tuned for fast/slow stochastic scenarios

Strength Analyzer - This is an aggregated RSI analysis tool which aims to identify currency strength/weakness graphically

Tick Volume Analysis

Spikes in tick volume can indicate potential reversals or trend changes in the market.

Tick Volume Alert

Alerts the trader when tick volume exceeds a trader defined threshold


Automation

If you like the idea of auto trading - these tools may be of interest. We don't get involved with fully automated 'black box' systems as they simply don't work... The automatated trading systems below simply automate your strategy - so if your strategy is good the results will be good.

  Tools and Resources

Trendline Trading Systems

Being able to auto trade from trendlines drawn on charts while your trading platform is unattended has obvious advantages.


Our Entry Level Trendline Trading System


Our flagship trendline trading system

Statistical Arbitrage

For advanced arb/pair traders who understand pairs trading techniques


Our flagship statistical arbitrage trading system

Stat Arb V3

Real Time Correlation Tool


Risk Management

This is what 95% of the business is about - risk management. Everyone overlooks this area when they first start trading... ironically it's the most important aspect to the business as it will totally deifne whether you can make money consistently over the long term. Unless you manage risk you don't stand a chance which is why 95% of retail forex traders fail... they think they know when to get out of a bad trade and they hang onto their losing trades for too long. Once you've been beaten up by the market you'll find it very difficult to hold on to your winning trades and then you're into a dangerous pattern of cutting your winners and running your losers. Taking a loss is part of the game.. so use a risk management tool and take all the pain away!

Tools and Resources
Risk Management

Zeus - Risk Manager
Zeus will automatically close any trades which breach your maximum risk parameters. It's a simple as that!