Trading strategies
Explore practical techniques to help you plan, analyse and improve your trades.
Our library of trading strategy articles is designed to help you strengthen your market approach. Discover how different strategies can be applied across asset classes, and how to adapt to changing market conditions.
Volatility doesn't discriminate. But it can punish the unprepared.
Stops getting hit on moves that reverse within minutes. Premiums on short-dated options climbing. And the yen no longer behaving as the reliable hedge it once was.
For traders across Asia, navigating this environment means asking harder questions about risk, timing, and the assumptions baked into strategies built for calmer markets.
1. How do I trade VIX CFDs during a geopolitical shock?
The CBOE Volatility Index (VIX) measures the market’s expectation of 30-day implied volatility on the S&P 500. It is often called the “fear gauge.” During geopolitical shocks such as the current Iran escalations, sanctions announcements, and surprise central bank actions, the VIX can spike sharply and quickly.
What makes VIX CFDs different in a shock
VIX itself is not directly tradeable. VIX CFDs are typically priced off VIX futures, which means they carry contango drag in normal conditions.
During a geopolitical shock, several things can happen at once
- Spot VIX may spike immediately while near-term futures lag, creating a disconnect.
- Spreads on VIX CFDs can widen significantly as liquidity thins.
- Margin requirements may change intraday as broker risk models adjust.
- VIX tends to mean-revert after spikes, so timing and duration are critical.
What this means for Asian-hours traders
Asian market hours mean many geopolitical events can break while local traders are active or just starting their session.
A shock that hits during Tokyo hours may already be priced into VIX futures before Sydney opens.
Some traders use VIX CFD positions as a short-term hedge against equity portfolios rather than a directional trade. Others trade the reversion (the move back toward historical averages once the initial spike fades). Both approaches carry distinct risks, and neither guarantees a specific outcome.
2. Why are my 0DTE options premiums so expensive right now?
Zero days-to-expiry (0DTE) options expire on the same day they are traded. They have become one of the fastest-growing segments of the options market, now representing more than 57% of daily S&P 500 options volume according to Cboe global markets data.
For Asian-based participants accessing US options markets, elevated premiums during volatile periods can feel like mispricing, but usually reflects structural pricing factors.
Why premiums spike
Options pricing is driven by intrinsic value and time value. For 0DTE options, there is almost no time value left, which might suggest they should be cheap but the implied volatility component compensates for that.
When uncertainty increases, sellers may demand greater compensation for the risk of sharp intraday moves.
This can be reflected in
- Higher implied volatility inputs.
- Wider bid-ask spreads.
- Faster adjustments in delta and gamma hedging.
In higher-VIX environments, hedging flows can contribute to short-term feedback loops in the underlying index. This can amplify price swings, particularly around key levels.
What this means for Asian-hours traders
Many 0DTE options contracts see their most active pricing and hedging flows during US trading hours. Entering positions during the Asian session may mean facing stale pricing or wider spreads.
If you are seeing expensive premiums, it may reflect the market accurately pricing the risk of a large same-day move. Whether that premium is worth paying depends on your view of the likely intraday range and your risk tolerance, not on the absolute dollar figure alone.
3. How do I adjust my algorithmic trading bot for a high-VIX environment?
Many algorithmic trading systems are built on parameters calibrated during lower-volatility regimes. When VIX spikes, those parameters can become outdated quickly.
The regime mismatch problem
Most trading algorithms use historical data to set position sizes, stop distances, and entry thresholds. That data reflects the conditions during which the system was tested. If VIX moves from 15 to 35, the statistical assumptions underpinning those settings may no longer hold.
Common failure modes in high-VIX environments include
- Stops triggered repeatedly by noise before the intended directional move occurs.
- Position sizing based on fixed-dollar risk, which becomes relatively small compared to actual intraday ranges.
- Correlation assumptions between assets breaking down.
- Slippage on execution that erodes edge.
Approaches some algorithmic traders consider
Rather than running a single fixed set of parameters, some systems incorporate a volatility regime filter. This is a real-time check on VIX or ATR that triggers a switch to different settings when conditions shift.
Approach adjustments that some traders review in high-VIX environments
- Widen stop distances proportionally to ATR to reduce noise-driven exits.
- Reduce position size to maintain constant dollar risk relative to wider expected ranges.
- Add a VIX threshold above which the system pauses or moves to paper trading mode.
- Reduce the number of simultaneous positions, as correlations tend to rise during market stress.
No adjustment eliminates risk. Backtesting new parameters on historical high-VIX periods can provide some indication of likely performance, though past conditions are not a reliable guide to future outcomes.
4. Is the Japanese Yen (JPY) still a reliable safe-haven trade?
During periods of global risk aversion, capital has historically flowed into JPY as investors unwind carry trades and seek lower-volatility holdings. However, the reliability of this dynamic has become more conditional.
Why has the yen historically moved as a safe haven?
Japan’s historically low interest rates made JPY the funding currency of choice for carry trades and when risk-off sentiment hits, those trades unwind quickly, creating demand for yen.
Additionally, Japan’s large net foreign asset position means Japanese investors tend to repatriate capital during crises, further supporting JPY.
What has changed
The Bank of Japan’s shift away from ultra-loose monetary policy in recent years has complicated the traditional safe-haven dynamic.
As Japanese interest rates rise:
- The scale of carry trade positioning may change.
- USD/JPY can become more sensitive to interest rate spreads.
- BoJ communication and domestic inflation data may influence JPY independently of global risk appetite.
The yen can still behave as a safe haven, particularly during sharp equity sell-offs. But it may respond more slowly or inconsistently compared to earlier cycles when the policy divergence between Japan and the rest of the world was more extreme.
What to watch
For traders monitoring JPY as a safe-haven signal, BoJ meeting dates, Japanese CPI releases, and real-time US-Japan rate spread data have become more relevant inputs than they were a few years ago.
5. How do I avoid ‘whipsawing’ on energy CFDs?
Whipsawing describes the experience of entering a trade in one direction, getting stopped out as the price reverses, then watching the price move back in the original direction.
Energy CFDs, particularly crude oil, are especially prone to this in volatile markets. And for traders in Asia, the combination of thin liquidity during local hours and sensitivity to geopolitical headlines can make this particularly challenging.
Why energy CFDs whipsaw
Crude oil is sensitive to a wide range of headline drivers: OPEC+ production decisions, US inventory data, geopolitical supply disruptions, and currency moves.
In high-volatility environments, the market can react strongly to each headline before reversing when the next one arrives.
- Price spikes on a headline, stops are triggered on short positions.
- Traders re-enter long, expecting continuation.
- A second headline or profit-taking reverses the move.
- Long stops are hit. The cycle repeats.
Approaches traders may consider to manage whipsaw risk
Some traders choose to change their risk controls in volatile conditions (for example, reviewing stop placement relative to volatility measures). However these may increase losses; execution and slippage risks can rise sharply in fast markets
Other approaches that some traders review:
- Avoid trading crude oil CFDs in the 30 minutes before and after major scheduled data releases.
- Use a longer timeframe chart to identify the prevailing trend before entering on a shorter timeframe, reducing the chance of trading against larger institutional flows.
- Scale into positions in stages rather than committing full size on initial entry.
- Monitor open interest and volume to distinguish between moves with genuine participation and low-liquidity fakeouts.
Whipsawing cannot be eliminated entirely in volatile energy markets. The goal of risk management in these conditions is not to predict which moves will hold, but to ensure that losses on false moves are smaller than gains when a genuine directional move follows.
Practical considerations for volatile Asian markets
Asian markets carry structural characteristics that interact with volatility differently from US or European markets:
- Thinner liquidity during local hours can exaggerate moves on thin volume, particularly in energy and FX CFDs.
- Events in China, including PMI releases, trade data, and PBOC policy signals, can move regional indices.
- BoJ policy decisions have become a more active driver of JPY and Nikkei volatility in recent years.
- Overnight gaps from US session moves are a persistent structural risk for traders unable to monitor positions around the clock.
- Margin requirements on leveraged products can change at short notice during high-VIX periods.
Frequently asked questions about volatility in Asian markets
What does a high VIX reading mean for Asian equity indices?
VIX measures expected volatility on the S&P 500, but elevated readings typically reflect global risk aversion that flows across markets. Asian indices such as the Nikkei 225, Hang Seng, and ASX 200 can often see increased volatility and negative correlation with sharp VIX spikes.
Can 0DTE options be traded during Asian hours?
Access depends on the platform and the specific instrument. US equity index 0DTE options are most actively priced during US trading hours. Asian traders may face wider spreads and less representative pricing outside those hours.
Are algorithmic trading strategies inherently riskier in high-volatility conditions?
Strategies calibrated during low-volatility periods may perform differently in high-VIX environments. Regular review of parameters against current market conditions is prudent for any systematic approach.
Has the JPY safe-haven trade changed permanently?
The Bank of Japan’s policy normalisation has introduced new dynamics, but JPY has continued to strengthen during some risk-off episodes. It may be more conditional on the nature of the shock and the BoJ’s concurrent posture.
What is the best way to set stops on energy CFDs in high-volatility conditions?
There is no universally best method. Many traders reference ATR to calibrate stop distances to prevailing conditions rather than using fixed levels. This does not guarantee exit at the desired price and does not eliminate whipsaw risk.
Many trading strategies utilise technical analysis to predict price patterns and for entries and exits. These strategies revolve often begin with the idea of the price having identifiable support, resistance and trendline market structures which indicate where various buying and selling points can be placed for a trade. These support and resistance indicate far more then just the price at a moment in time.
Rather they reflect the psychology of the market at a given point in time. However, when trading it is important to remember that the market is not just made of one type of trader. The market is made up of day traders, swing traders, scalpers, funds, hedge funds, retirement funds, Investment banks and all in between.
Each of these participants has their own time frame for a trade/investment. This element is the key as to why trader can utilise multiple time frame analysis. The theory it that the more market participant who view the respective level as a support or resistance, the more likely it will act in that way.
For example Assume that the price of stock A is sitting on a 5-minute support at $100. Looking purely at this 5-minute chart a trader may look to buy on this support level. However, after looking at the 30-minute chart, the chart shows that the price is not actually a support but rather just a random price point and therefor no trade is entered.
Alternatively, the 30-price chart supports the original price as a support and therefore may support the price point being a support point. How to implement multiple analysis into your trading. Determine your standard trading timeframe.
This step should be a relatively simple step if you have a clear edge. For some traders it can be 5 minutes, 15 minutes, 1 hour, one day or even one week. Work back usually by a factor a factor of 4/5 or by a logical time frame adjustment Prior to your first drawing of support resistance and trendline it is important that you adjust the timeframe of your price chart by a factor of 4/5 or a by logical adjustment such as an hour – to a day or day to week.
Example 5min – 30 min 1 hour – 4 hours 1 hour – day 1 day – 1 week 1 week – 1 month Add in Support and Resistance Lines on longer term time frames The analysis can now start, and the key is to draw the most obvious and consistent support and resistance time frames. This step also serves an important step in helping determine if the price is trending or is ranging. Revert to trading time frame and redo the same process highlighting convergences The next step is to revert to the desired trading time frame and conduct the same process.
This time if there is a Support/resistance line that is already made and acts as one on the shorter timeframe, highlight it or tag it. Looking at the example below for US car making company Tesla, the process is shown on the chart below. Firstly, with the weekly chart, support and resistance points were plotted with the black lines.
The below the daily chart shows that the support point at $265.25 acts as support for both timeframes. This indicates that price may act with more strength as a support zone. Similarly, if the level breaks it may indicate a more powerful move because more market participant will likely be involved.
In the other example for the EURUSD the same process has been done and shows that the price at 0.9600 is also doubling as a support on the daily and weekly charts. The use of multiple time frame analysis can optimise trading systems by reducing risks of fake breakouts and improving entry and exit accuracy.
Maturity, Yields, Par Values and Coupon payments. These are words that everyone has heard of but not many have a good understanding of what they mean. In this article all these complicated terms will be explained.
Please note that while this information is most relevant for physical bonds, it is still important to understand when dealing with CFD’s as they play an important role in how bond CFD’s are valued. What is a Bond? A bond is an instrument that is used by companies and governments and other entities to raise money through the issuing of debt.
There are different typed of bonds however, the simplest bonds are contracts in which an issuer (Company/Government) receives a payment from the purchaser or bond holder in exchange for the rights to interest plus the principal amount. For example, a government may issue a 10-year bond for $1000 in which they agree to pay 1% interest per annum which will equate to $10 per year. In addition, they will pay back the principal amount once the bond matures.
Key Terms Issuer – The entity that sells the bond initially and must make payments. Holder – The entity who is possession of the bond. Principal – The amount of debt that the government/company has taken that will be paid at maturity.
Par Value – The nominal value of the bond or the price when it was issued. Coupon Payment - The interest payment that is paid to the bond holder. Yield –The coupon payment divided by the Bonds face value.
Maturity – The date when the principal amount of the bond will be paid back. Bond Ratings Generally, Bonds are rated according by agencies, based on how safe the underlying assets are. For instance, government bonds tend to be rated the highest as they are guaranteed by the government, and governments are highly unlikely to default.
In a practical sense, the US government is such a reliable issuer that it should never default on the repayments. This makes Bond’s a great asset to act as a hedge against unsystematic risk. On the other hand, corporate bonds may be given lower ratings depending on their credit risks.
Inverse Relationship between Bond Price and Yield The price and yields for bonds are inversely related. This is important to note as bonds are often charted against their yield and not price which is how derivatives are often charted. Therefore, a trader should be aware of the inverse relationship between price and yield.
This occurs because as the price of a bond changes up or down the interest rate must adjust to ensure that the coupon payment is the same. Assume Bond A is issued at $1000 dollars and 10% interest rate to pay a $100 coupon. 1 Year later that same bond is now priced at $900, however the bond must still pay out a $100 coupon. However, to get a coupon payment of $100, the interest rate must increase.
The formula below shows this: $900 x Interest Rate = 100. Simple Algebra shows that the interest rate = 11.1% Understanding this relationship will make eliminate one of the more confusing elements of trading bonds. Catalysts for Bond Prices The general factors that influence a bond’s price are related to the interest rates and the broader economy.
For instance, if the market interest rate 2% and the bond’s coupon rate is 1%, then the bond will trade at a lower price and vice versa. Subsequently, bonds can be a handy way of tracking the sentiment as they often reflect the feeling in the market. Economic events can impact on the performance of bonds.
When the economy is growing and equities are doing well, bonds tend to perform worse as the return is limited. However, during times of volatility and poor stock market performance, the bond market tends to perform better as the market looks for safety in the guaranteed returns from bonds. Inflationary pressure and low or high interest rates can influence the direction of the way in which bonds are traded.
Generally, in a strong economic market, bonds with longer maturities tend to have higher yields than those in shorter maturity. This is generally due to the thought that the time that is further in the future will has more uncertainty than that in the near-term future. The general exception to this is when the market expects a recession soon.
This causes what is known as an inverted yield curve, in which the shorter-term bond is yielding a higher interest then the long-term bonds. You can trade CFD on the 10 Year US treasury note, 5 Year US treasury Note, UK Gilt, Euro Bund and the JGB Japan Futures on Go Markets Metatrader 5 platform
In my previous article we discussed, what is an EA and their benefits. To read up on their disadvantages please follow the link to an article written by my colleague Daniel Vary here. Today we are going to discuss how you would use a VPS to enhance the use of an EA, especially if you are running various EAs simultaneously.
What is a VPS? A virtual private server (VPS) is a virtual program sold as a service by an Internet hosting service. The virtual dedicated server (VDS) also has a similar meaning.
A virtual private server runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes it is functionally equivalent to a dedicated physical server and, being software-defined, can be created and configured much more easily. Depending on the resources that you choose, the location of the server, the virtualization technology, and the quality of your service, the price of your VPS will change.
GO Markets provides a VPS to all its clients, it’s a free trading tool we make available which would otherwise come with a monthly fee. Why would traders use a VPS and what advantages do they offer? As a trader who is looking to incorporate an Expert Advisor in their trading strategy, they may well need the use of a VPS, this helps to facilitate a smooth working condition for one or several EAs running simultaneously and to run as effectively as possible.
An Expert Advisor is a tool that is programmed to work 24/7, it is imperative that the running of your trading system and the vessel which it operates in i.e. computer or laptop is not disrupted, go offline or lose power, otherwise you will find that your EA won’t be able to operate, open, close trades or do whatever you intend to do with it. A simple advantage to think about, is purely that a VPS enhances the EAs capabilities and with it, it may improve your trading goals. A VPS facilitates a smooth and quick link to a reliable server, that means it keeps the connection alive for as long as possible to allow the EA to do its job, getting access to a reliable server should be your highest priority, especially given the nature of how fast paced markets like Forex markets can be.
Choosing a VPS provider? There are few important points that you need to look into when choosing the type of VPS you want to acquire. There are some key features to look understand to get a VPS that will fit within your EAs specifications, your trading strategy and style.
We will look at the specific features of the VPS shortly but first you need to consider which Operating System OS you like your VPS to run on, Windows or Linux? Linux is an open-source operating system and is cheaper than windows. The Windows VPS hosting can be preferred if you are developing in.NET or if you have applications that are designed for the Windows platform.
RAM – It stands for random-access memory. It means that your computer RAM is essentially short-term memory where data is stored as the processor needs it. The Ideal RAM for a VPS for this purpose would be 4 GB.
If you are running several EAs, which use up more than the available RAM, then may need to look for a bigger VPS or simply add another VPS on another account. CPU – Central processing unit, is a principal part of any digital computer system, generally composed of the main memory, control unit, and arithmetic-logic unit. They have proved to work smoothly even at peak times depending on the quality and size of the processor.
You need to have 14nm architecture with a multi-core for multitasking but a 6vCPU works in most normal cases. Hard disk HDD – The traditional hard disk storage space will always be bigger and more inexpensive. But a solid-state drive is recommended for a VPS hosting.
They are fast at rebooting; the performance is certainly huge and transfer speeds are more than the traditional disks. The SSDs are resilient during power failures, which makes them a perfect fit for VPS hosting. A faster hard drive is necessary because even if the RAM and CPU are fast you need an equally faster storage drive to service those requests Go Markets VPS As a valuable client of GO Markets, you can get access to a VPS once you have a live account with us.
Simply, by applying for one via your Client Portal. The VPS runs on both MT4 and MT5 systems and allows you to execute trades using EAs, quicker and easier. GO Markets offers free monthly VPS access to clients completing a minimum trade volume of US$1m per calendar month (approx. 5 round turn FX lots).
If this volume is not met, a VPS service fee will be applied per month which will be charged from trading account. Please see below the specifications of our VPS below. Our VPS is a Shared Hosting, managed Cloud based solutions running on Windows 2016.
Sources: Wikipedia, Babypips, GO Markets, operavps.com, www.websitebuilderexpert.com,
Expert Advisors are programs which are configured to execute trades or read market price movements. When a parameter is met or triggered, it commands the EA to open or close trades on your behalf whilst you are otherwise engaged or sleeping. EAs are compatible to be used on the Metatrader 4 and 5 systems.
Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders.
It is widely used by investment banks, pension funds, mutual funds, hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. It is now also widely available to retail clients. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans.
What are the advantages of using EA’s? Timesaving – The Forex market is open 24 hours. As a trader you are always looking for an opening in the market for you to execute an order, however, as a human you need to be able to sleep to operate normally, especially if you want to live a healthy life.
With an EA in place, you can time the market, set alerts, watch various markets simultaneously, set open and close trades yourself or allow it to open and close trades on your behalf. For a lot of forex traders who’d like to profit from market movements during a particular trading session but are stuck in a different time zone, using an expert advisor means that they don’t need to worry about trading sleep for pips. Emotionless Trading – The market is wholly affected by emotion, whether the emotion makes you want to buy or sell an asset is down to how you understand the information or how you perceive the charts.
With emotion you can either be gripped in a circle of greed or a loss of confidence which can cloud your thinking and deviate from a trusted strategy. An EA does not suffer from these as it just needs to meet various mathematical parameters to work. Expert advisors are wired to stick to system commands and take valid trade signals, without feeling pain from losses or joy from wins.
Backtesting - Another advantage of having an expert advisor is the ease of conducting backtests, particularly on an MT4 platform. In fact, Babypips have a short tutorial on how to backtest and EA on MT4 and you’d be surprised to know that it just takes a few clicks to see how a system fared over several years. This is mainly used, to make sure that the EA you have acquired, works in the way you want it to work before letting it loose on your live account with real money at stake.
Quick and Flexible – EAs can open and close trades in a blink of an eye; whilst humans tend to second guess these actions by taking price movements and reading indicators, an EA is built to take these decisions with mathematical precision. Depending on the EA you are also able to check multiple markets and have various EAs on one system at the same time. Some of these features are also extremely useful for short term traders who trade on smaller movements of 1 – minute to 5 – minutes charts.
Human Error and Accessibility – Human error have cost many a trader in years past, opening the wrong direction on trades, making the size of the position too big or too small, or opening a trade whilst misreading the technical can all have a negative effect on your trading experience. Having an EA can limit these errors as EAs are programmed to your specifications and they would never deviate from that, unless they are not set properly to begin with, but this is the reason why you would always backtest! EAs are available with a decent variety and with great accessibility to these programs, it is no hard to see why they are becoming the automated popular choice for traders.
In my follow up article on this subject, I will talk about the use of a VPS and popular EAs. If you like to incorporate your MT4/5 systems with EAs, you can talk to one of our Account Managers who will be happy to talk you through the process, feel free to contact us on +61 3 8566 7680 or email me directly on [email protected] Sources: Tradersunion.com, IG, Wikipedia, Babypips.
Trading FOREX, equities, commodities, and any other asset can be an emotional rollercoaster. With so many different emotions and external factors difficulties impacting a trade, it is crucial that before any trade is executed a trading plan is produced to minimise the impact of the ‘noise’. Generating the Idea The first step to any plan is to generate a trading idea.
Trade ideas, come from one of three sources. A fundamental source, a technical source, or a mix of both. What does this mean exactly?
Well, when generating ideas from a fundamental perspective, a trader can generate idea based on economic events, monetary policy from a Central bank or company relevant information just to name a few. From a technical perspective, a trader may find that an asset is trading near a potential support or resistance level or developing into a breakout pattern. Alternatively, the price may have touched an important moving average which indicates it may be ready to trade.
Traders can also put these ideas together to come up with even more robust trading ideas. Background economic factors and sector analysis Before entering a trade, a good trader should have at the very least a rudimentary understanding of the relevant sector or economic factors that may influence the trade. For example, a trader decides to trade the AUDUSD currency pair.
The trader has seen that the price is approaching a short-term support point and decides to buy the pair expecting the price to bounce of the level. However, the trader is not aware that the Federal Reserve has just increased interest rates which has increased the value of the USD. Consequently, the price goes against the trader.
Technical breakdown Prior to entering any trade, the trader should analyse the price chart and set up relevant support and resistance levels. This allows the trader to have a clear idea of key supply and demand zones for the asset before the emotions of the actual trade become prevalent. To effectively go about this step, support and resistance levels can be analysed on multiple time frames to gain an even greater edge. [caption id="attachment_272243" align="alignnone" width="2560"] Business Team Investment Entrepreneur Trading discussing and analysis graph stock market trading,stock chart concept[/caption] Entry condition Having a trade idea is one aspect however having a clear entry criterion will help reduce the impact of emotion when watching the trade unfold.
Some examples of potential entries conditions can be related to a break and retest of a certain level for an entry or waiting for a specific candlestick pattern. Furthermore, an entry may also be defined by a disproportionate increase in volume supporting a breakout. Exit Conditions Like determining entry conditions having pre planned exit points can improve the management of emotions during also trade whilst also enhancing risk management.
Setting take profit targets/stop loss areas will help ensure that a trade is well structured even before initiating the trade. Having pre-determined exit points can also help determine if a trade is worth entering in the first place as it allows for a determination of the potential risk reward before execution. Risk management No matter whether the trade is a scalp, swing trade or longer-term investment, each should have clear risk management guidelines.
Good risk management involves the use of stop losses and correct sizing of a trade. One method that can be effective is to have a maximum amount of the total account that you are willing to lose per trade. This could be a percentage figure or a fixed amount.
For example, if the total account size is $10,000 and you decide that the maximum loss per trade is 1%. This means that the maximum loss per trade would be $100. The next step is to then set stop loss.
The stop loss in many cases should be independent of the actual maximum risk amount. The stop loss level should be calculated before the sizing. Once the stop loss is set the size of the trade can be determined.
Risk management is perhaps the most crucial element of the trading plan because minimising losses is crucial to any long-term success in trading. Whilst having a clear trading plan will not guarantee success it will help remove many behavioral biases that can impact on a trade.
Imagine having access to technical analysis across all the major markets, updated around the clock in real-time and of the same calibre that investment banks around the world receive daily. Then consider having all your favourite Forex and Commodity markets analysed with a trade entry, exit, profit taking levels and a price projection. And what if you could have the analysis running live on your MT4 charts providing trading opportunities throughout your trading day, allowing you to focus on your position sizing?
It may sound like a pipedream, but in fact, this is what you have sitting at your fingertips for those who qualify (don’t worry, qualification is quite simple). What we are talking about is the technical analysis service provided by the research house, Trading Central, and they have been helping traders with their service since 1999. So who are Trading Central and how can they help me?
Trading Central is an independent and leading provider of financial research and technical analysis of financial products. Their approach is simple yet very affective – they combine a technical analysis approach to determine price targets using a range of trading indicators. They now provide their services to more than 100 global financial institutions in 30 countries around the globe.
We are proud to say we have partnered with Trading Central as a result of their proven track record in delivering high-quality analysis of the financial markets and in particular, they extensively cover the Forex and Commodity markets for qualified GO Markets clients. Top 3 ways you can benefit from their research 1. Daily Newsletters with trade alerts Delivered twice a day, the daily Forex technical analysis email service provides you with visual and technical analysis newsletters that detail trading strategies, predictions, commentaries as well as key levels (support, resistance, target, stop pivots) on multiple time frames.
The newsletter provides short to medium term analysis on the following products: AUDUSD, EURJPY, EURUSD, GBPUSD, USDJPY, HANG SENG, SPI 200, & SPOT GOLD. We regularly get feedback on how handy it is to have the key pivot points outlined clearly on each of the instruments they analyse. 2. Web Portal / Research Platform Access Trading Central’s global research directly through the Trading Central web portal.
Receive up-to-the-minute technical analysis on forex, indices and precious metals as Trading Central provides updates throughout the trading day. If you’re a regular technical analysis user who knows what you are looking for, the web portal is a quick and easy way to search for intra-day, short and mid-term updates. There’s a ‘search box’ for instant access, or you can select a report on individual asset classes (Indices, Forex and Commodities).
For those traders who have specific criteria, the web portal has pre-made filters allowing for a quick search and the ability to customise the screen. In addition, you are able to have instant access to the information that matters to you by creating a customizable watch list. 3. Technical Analysis Plug In The Technical Analysis plug-in in MT4 is a user friendly interface offering actionable content and customizable timeframes, allowing traders to fill in orders and program trades based on levels provided by Trading Central.
The MT4 plugin displays Trading Central’s technical analysis strategies, views and market commentaries, as well as Trading Central’s key levels (support, resistance, targets, stop pivots) directly on your MT4 platform. It also allows you to execute orders directly from your MT4 charts based on the levels provided by Trading Central. So whether you’re a novice or an experienced trader, Trading Central can be used to either provide original trade ideas, or provide a handy second opinion.