There are hundreds of articles on risk management in trading on the internet that cover various aspects of it. I’m not going to repack the content that is available out there but focus on my view on risk in trading and my strategies for risk and exposure management. To begin with, let’s define what risk in trading actually is. For me the definition would be as follows: Risk is the probability of losing the capital. So, risk management involves working with probabilities and undertaking measures to reduce the probability of losing the capital. When considering risk in trading, we can ..read more

When one is planning to open a company, the first step should be writing a business plan. Or at least its financial part, to see what it will take for the company to break even and then to be profitable. Correct me if I’m wrong, but when it comes to trading, we need to conduct a similar analysis to see if the „profit margin” on the „product” will be sufficient to cover all „costs” and generate net profit. In this article, I share my thoughts and methodology on the subject. And no, it is not another article on a trading plan and why you should have one. A trading plan is an operational manual f ..read more

With the abundance of financial websites and services for forex traders, one can get easily overwhelmed by all the information and opinions around. On top of that, there is constant distraction caused by the ads blinking in every corner possible and the risk of being exposed to content not relevant to your trades that might throw you out of emotional balance (like breaking news about accidents, crime, dramatic photos, etc.) Over the years, I followed each major financial website on the market for a while, especially websites for forex traders like fxstreet, dailyfx, etc., and I would like to s ..read more

Why at all think, talk, and write about things like convictions or beliefs in terms of trading? After all, trading is about making money, not psychology or some esoteric stuff. Is it really so? Isn’t it the trader that makes money? Or loses money, since according to statistics provided by brokers, around 70-90% of traders lose money. Traders are humans with their human flaws, traumas, and other psychological or emotional baggage that may influence trading. If we consider all this, a closer look at the trader’s mindset may lead to interesting discoveries and solutions to problems they encounter ..read more

Regulators ensure that forex brokers follow the law and meet minimum requirements to secure clients’ funds (e.g., keep their money in a segregated bank account so that they can be refunded in case of a broker’s bankruptcy). Regulators also make sure that brokers can provide a secure and transparent trading environment for traders and have sufficient resources to facilitate trading. Choosing a forex broker regulated by a strong watchdog in a country that has a rigorous legal framework can provide traders with an added layer of protection and peace of mind. Countries and regulators known for the ..read more

In theory, it is impossible to run replay in TradingView on more than one instrument and one timeframe at a time. However, there is a simple trick that allows us to bypass this limitation. If you open one instance of TradingView in the Windows desktop app and another in your browser you will be able to run a separate replay in each of these instances. This way you can run replay in Tradingview on two timeframes or on two different instruments at the same time. It’s very useful if you need to do some backtesting. You can even put the TradingView desktop app and web browser windows next to each ..read more

According to various online trend analyzing tools “forex trading hours”, “forex market hours” and “forex schedule today” are among the most often searched terms in Google related to trading. Since there are a few more nuances than just London open and New York open, I decided to post my take on this subject . Best time to trade Forex The Electronic Communications Network (ECN) which connects market participants and facilitates the vast number of FX transactions is operating 24h a day starting from Monday 8:00 AM Sydney Time until Friday 5:00 PM New York time, except for a few bank holidays l ..read more

FXTop – Historical data for fx pairs and price charts heading back to the 1950’s. Historical data download for Forex (FX) pairs, commodities, stocks and indexes (CFD) for any analysis in Excel. Wide range of time frames selection from monthly to 1 tick! Download forex historical data to a CSV file for free. Requires opening a Dukascopy Community account (it’s not a trading account).  How to download historical data for Forex, Commodities, Indices, Bonds, Stocks, ETFs, Crypto – step by step guide with pictures. Wondering where to get historical price data for Forex, Commodities, Indices, B ..read more

Links to interesting sites and services which I like visiting from time to time. If you have any suggestions regarding any links that could be added, please feel free to e-mail me. Current Market Valuation – an interesting score index for US stock market valuation – based on six valuation models ,the site is calculating whether the market is undervalued to overvalued. Updated daily. Longtermtrends – a website that compiles and compares various data, current as well as historical, and presents it in a form of charts (eg. M2 money supply vs inflation). The charts are available for six asset clas ..read more

This text is also available as a podcast – click the play button above to listen. System backtesting is very important for various reasons. A day or two spent on backtesting, and we gain preliminary knowledge if the system is profitable or not. It is also important for confidence building. Confidence in a system is very important when you start using it on a live account – after all, doubts and hesitation can kill trading results as much as a bad system. One thing on which there is not enough emphasis when it comes to backtesting, is losses analysis. Maybe it’s because it is more pleasant to f ..read more