For all traders who don’t have a zero-spread broker, the cost of every trade we do is the spread. We accept the brokers bid-ask differential without question:it’s the price of doing business.
Many traders, myself included, use a fixed-spread broker Some traders, myself not included, happily trade the most popular Forex pairs on M1 and M5 time frames, championing all sorts of reasons as to why their choice of instruments are the best. I’ve yet to hear anyone tell me that they trade a particular symbol because it gives the best average daily range (ADR) to spread ratio. Have you thought about that?
Why is the ADR to spread ratio important? It’s about getting the best ‘bang for your buck’ – if you’re paying the spread to the broker, you want to get the biggest potential return on that cost, in the form of relatively big moves.
Guess what I like to trade from this table …?
That data was extracted from the H1 charts that I currently have open, using a little script that I wrote. You can do the same for your broker and charts if you want – I’ve put the script on the ‘MT4 Free Indicators & Scripts’ page.
The script will display the information in the ‘experts’ tab and create a CSV file, so you can sort the data how you want: called “Snorm Pips 10 Day ADR.csv” in your ‘files’ folder (10 will be changed to the number of days ADR that you’ve chosen).
If your broker spreads are like mine, you might want to ask yourself why you trade GBPJPY in preference to GBPUSD on the lower time frames; or the FTSE in preference to the DAX, etc.
Your results may be substantially different at various times of the day, if you have a variable-spread broker, It might be worth running the script a few times to see how the spread-ADR ratio changes (rename the csv file before running the script if you want to compare results each time)..
ATM has been given a new feature this week - the '@Level' button. This allows you to set trade management instructions for when price, on your open trade, gets to your chosen level.
Simply click the '@Level' button and the 'Trade Management' line appears. Move it to where you want something to happen and click the buttons that you want to be activated. For example, you could instruct ATM to close half of your open trade, move the stop loss to break even and trail the stop loss on the fractals... but only when price has got to your chosen level. Now you can squeeze more pips out of your open trade without having to be at your computer.
The picture below shows an example - the text on the purple dotted line confirms what ATM will do at that price level. The upgrade can be downloaded from the ATM download page.
Note: yet another terrific W4 TLB trade from eWavesHarmonics, with price hitting the TZ1 target - a simple trade for 130 pips or so.
eWH has had a fairly significant overhaul of the code to make it less processor-heavy and to avoid conflicts with other indicators. If you already have eWH you can get the latest version from the download page.
Some eWH users have caught very nice W4 TLBs in the last couple of weeks (as explained in the course module). Thank you for your nice emails from around the world, they are much appreciated.
Check out this one on GBPUSD H1 - : if you had just set a TP for TZ1, you would have got about 220 pips for less than 50 pips risk. If you missed first entry there was a second chance to get in the next day.
I received an email from an eWH user in Japan today, asking how he can get alerts when price breaks a manually drawn TL. It's simple ...
If you hover your mouse over the TLs button you get pop-up text that tells you what you need to do but in short: -
Another tip - the CLEAN button deletes all objects that weren't created by eWH, except for buttons (to cater for the Advanced Trade Manager). However, if you don't want some objects deleted, just give them a name beginning with "eW"..
I hope next week is even more successful for you all.
Every year in the UK, numerous farms open their fields for the public to pick their own strawberries – probably happens in many other countries as well– with signs outside: “PYO Strawberries”. It’s quite a good business model: rather than employ farm workers to pick the fruit, invite the customer to do it for themselves.
The customers decide before hand what they need, grab a basket or two, survey the field and set about picking the strawberries that are at the perfect ripeness – not too ripe mind you - discretely eating a few free fresh ones along the way. It’s a simple job: check a plant, if no strawberries move to the next; if strawberries meet the quality criteria then pick. When done picking, the picker pays by the punnet and returns home content. They don’t attempt to take every strawberry in the field home with them and didn’t once get upset for passing a plant that didn’t have fruit that met their requirements, even if there was nice fruit hidden away.
Successful Forex trading is like PYO strawberries. Rather than paying professionals to trade your money, you do it yourself. Using the simplest possible method, you seek out the nicest looking trades, take as much you need and move on. You wouldn’t feel bad for leaving a field full of good strawberries behind or if you dropped a few along the way; so, you shouldn’t feel bad for not getting the whole of a move that you’ve traded, or even missing out on some trades.
Retail traders often struggle with leaving the fruit behind; they feel they must take every trade on offer and get every single pip (there’s the strawberry link again) of a trade; rather than just look for the best trades and be happy with a nice return. Instead of congratulating themselves for a trade well-executed according to their rules (regardless of outcome) they berate themselves for not doing better by getting all of a good move or winning all of the trades on offer; heaven forbid they should ever lose some trades. The result: more losing trades, lost faith in the method and more time spent wandering aimlessly around the field looking for the best way to pick the fruit. On the other hand, the wise seasoned traders, with a simple and consistent approach, have congratulated themselves for a job well-done and gone home happy - they don't care if they didn't get as much as someone else..
Trading is about making a profit – that’s the sole reason we do this. You don’t need much to achieve that goal: a trading plan for a simple system, realistic goals for returns and a good splash of discipline.
Pick your own strawberries and enjoy them; there will be more to pick tomorrow.
A bread-and-butter way of trading with eWH is the Wave 4 Trendline Break (W4 TLB), We see some great examples across all timeframes every week and this week was no exception - just check USDJPY M15 on the 4th of January: offering over 200 pips.
I'm creating a course on trading with eWH (which I hope to complete in less time that it took me to code it) and since W4 TLBs are such a big feature, thought it might be a good idea to add the module on it as a freebie with all eWH licence purchases.
For those of you who already have eWH, you can view the W4 TLB module on the same page as the manual (link from the eWH download page) . It's short and to the point - no need to make these things complicated - but with a few examples from this past week, to help you realise just how powerful a setup it can be.
Festive Season Greetings to you All
After far too many years in development and testing, eWavesHarmonics (eWH) is now available to purchase.
eWH incorporates everything that I use for trading, so I need no other indicator to make informed technical trading decisions; on any timeframe. The Beta users have given terrific feedback about the tool, reporting some superb trades. If you’ve been bogged down with cluttered-screens and too many indicators, you should find eWH to be a game-changer.
Click here for more info: http://www.for-exe.com/ewavesharmonics.html
Here's just one example from the H1 charts this month ...
I wish you and your family a very merry Christmas and an amazingly successful 2017.
All the very best to you
Update ... after posting the above, one of the dedicated eWH users sent me this pic: his trade today.
Do you need to change your chart settings on a regular basis? Does the adding or changing of an indicator's settings seem tedious when having to apply to every open chart? For me, the saving of a template and applying that template to countless charts is just mundane; especially with all the charts that I have eWavesHarmonics running on for Forexsticks.com.
Mundane no more ... I've made a script called 'Template All'. Set one chart up with all the preferred settings; drag the script on to your chart; enter the name of your template (or leave the default); all charts to the right will have the same template applied; charts to the left will remain unchanged.
I like it and thought you might too, so have added it to the 'free' section. Help yourself
By the way.., I will be on holiday for the first half of December. Whilst I will check emails from time-to-time, please allow a bit more time than usual for a reply. eWavesHarmonics v1.0 will be made available when I get back.
eWH performed very well this week on the H1 charts.
One of the many features of eWH is the automatic alert on a W4 trend line break (TLB). Traders who took the early-week signals and held the trades (ATM would have managed them nicely using the T-Frac button once in profit) would have had much to celebrate.
eWH shows a bomb symbol when there is a TLB: green for long; red for short. I've added the blue arrows to point out the trades after using the 'Test' feature to show how the signals would have appeared at the time.
EURUSD H1 ...
USDJPY H1 ....
Needless to say, we don't get such great moves every week but you want to be in them, as early as possible, when they're there.
There are still a few Beta licences left (at a very discounted price) for traders with current News EA/ATM licences.
There has been more than a dozen updates since the first beta version of eWH was released and it's pretty close to being the finished product now. Initially made available to owners of the Snorm News EA,, the beta version is now being made available to owners of the Advanced Trade Manager (ATM) - for new customers and old; at a very discounted price.
Releasing eWH in stages, as a beta version, has allowed me to get some very valuable feedback without being inundated with questions. So, thank you to all who have contributed to the recent developments.
I'm hearing some incredible stories of success from eWH users who have previously struggled with their trading. One trader had an outstandingly profitable five days of trading, last week and had been sharing his trades with me, at the end of each day: terrific results and just from trading one setup that eWH has alerts for (it is my favourite setup and the easiest to trade).
I will likely keep offering the beta version for another few weeks; maybe even until later in December (I'm taking a long-overdue holiday in the first two weeks of December, during which time I will need to suspend sales)..
You might want to take advantage of the beta offer before it's gone. Don't have ATM already? Well treat yourself to that as well. Like many ATM users, I couldn't imagine trading without it :)
Click here to read more about eWavesHarmonics
The Beta version has been released - initially it's just limited to customers of the Snorm News EA. The final version, or first of the final versions, should be out in a month or so, if the Beta testing goes well. Development will continue thereafter.
Everything that I use for trading has gone into eWH. Whilst I seldom trade Harmonics Patterns, they're an occasional nice-to-have, for that extra bit of confluence with entries, stops and targets, so basic pattern recognition is included as a free add-on, particularly for those of you that like HPs and can trade them better than me. I will do some more work on the pattern recognition in time.
For more information go to: http://www.for-exe.com/ewavesharmonics.html
Snorm trades only with GKFX and has no hesitation in recommending them, for tight fixed spreads and quick execution (even during NFP, from personal experience).
Open an account here