In this lecture, I will show you how to perform a backtest on MetaTrader 4 and what’s the difference with backtesting in EA Studio.
In another lecture, I showed you how to backtest a trading strategy with the EA Studio where we have a lot of tools and statistics for each of the strategies. From there, we can change the strategy in many ways if we want to.
But in MetaTrader 4 we have the option to make a backtest or to see how the strategy performs until the current moment.
And especially if you’re just starting with a new broker and you have just installed MetaTrader 4 platform, it’s not a bad idea to make a backtest for the strategy. So you will know if you have the right trading environment or if your broker is suitable for the strategies that you will be trading with.
And before I do the MetaTrader 4 backtest, I will show you something important. If you have just installed the MetaTrader 4 for first time, you need to load more bars from your broker. For this purpose, you will need to zoom out the chart and then press the Home key on your keyboard.
Press the Home key on your keyboard
I see it moved a little bit the chart and I have the data now starting from the 8th of May 2020, which is not a lot of data, but that’s the maximum that Pepperstone offers.
The data for MetaTrader 4 backtesting on the broker’s server
And I have more data, but it’s on the other server because they had a few servers on Pepperstone, and they changed now to a new one for the Demo Accounts and I had more data previously, but now it’s not in there.
For example, if I go to H1, zoom out and press the Home key again, let me see where it will go. Just press and hold it so it will go to the beginning, on the 24th of April 2020.
So on that server, they don’t have a lot of data, but I’m just taking the maximum possible. So if I go back to the M15 chart and I will start with the RSI strategy, what I can do is right-click over the chart and I go to Expert Advisors Strategy Tester or you can simply press F6 on your keyboard.
I click on Strategy Tester
And you will notice a new window showing below your Terminal.
A new window appears below the Terminal
What happens when you uncheck Use date?
Now from here, you have a few options to select the symbol, the Expert Advisor that you will be using. Usually, these load automatically if you do it from the chart because the Expert Advisor is attached to the chart. And then we have a Model where we have 3 options: Every tick, Control points, and Open prices only.
The Model in MetaTrader 4
For the strategies that we exported with EA Studio and for the strategies that open new trades on the opening of the new bar, you need to select Open prices only, which is, by the way, the most reliable method to backtest Expert Advisors on MetaTrader 4.
I click on it and then on the right side we have the period which is set automatically to M15 and then we have Spread. We can test it with the current spread or you can enter any value if you want to. Now, before I click on START, we have the option to use date so you can select the time period.
For example, you can perform a MetaTrader 4 backtest for the last 1 year or for the last 2 years up to date. It depends on the period you want to test the Expert Advisors.
And if you uncheck use date, then you will be using the whole period that you have on the chart.
And I click on START and you will see the MetaTrader 4 backtest is very quick. I go to results. Here are the results from the backtest of the Expert Advisor on MetaTrader 4.
The Results from the backtest in MetaTrader 4
And then we have the graph.
The Graph of the strategy
As you see, it goes up on profit, but we have just 24 trades that happen, which is not really a lot. Not enough to see the performance of the Expert Advisor.
Importance of Historical Data for MetaTrader 4 Backtest
And then we have the report where we see some more statistics that are available.
The backtest Report in MetaTrader 4
Now, if I open the very same strategy on EA Studio, you will see that I have 418 Count of trades. There’s the balance chart for the last 3 years and 6-7 months, which is more data. And this is because I have the data, as I’ve said from the previous server.
The Editor in EA Studio
And if you want to collect more data from your broker, all you need to do is to keep your MetaTrader 4 platform open and with time, it will collect more bars for you.
Basically, this is the only reliable way you can collect bars from the MetaTrader 4 and perform a good backtest. Now, there is historical data. If you go to Tools and you go to History Center. From here, you can download more data.
Click on History Center
For example, let me go to Bitcoin and I click on M1 minute and I click on download. You will see what the message says: “You are going to download data from the MetaQuotes Software Corporation History Center”. But your account is opened on the Pepperstone Limited trade server.
The download message
So it’s warning you that the data you will be downloading, it’s not from Pepperstone, but it’s actually from MetaQuotes. So to make the backtest, it’s important to do it over your server from your broker with the historical data of your broker.
The historical data is all the bars that we have in the past. If I zoom in, this is the data that we have from each candlestick. If I put the mouse on the closing of any of the bars, you will see that we have the Open, the High, the Low, and then Close.
The values
The Report From The Backtest
These 4 values, they give us the data and as well, we have the Volume. So this forms the historical data which the backtest uses in the MetaTrader 4. And even when you have such a small period that’s still fine. The strategy shows a profit. It’s not dramatically losing. That wouldn’t bothering me.
If I make backtesting on MetaTrader 4 and I see a dramatic loss on the backtest, then, well, something is wrong.
Either the spread is too big for the broker or there is something wrong with the broker. You better look for another broker.
One more time, in Report we can see some statistics from the MetaTrader 4 backtest. For example, how many profitable trades we have, how many losing trades, consecutive losses, and consecutive wins. And we have the drawdown, the net profit. In this case, it is $1243.20. But one more time, that is just from 24 trades.
While in EA Studio if I go to Report, you will see a lot of statistics.
EA Studio strategy backtesting Report
There’s the backtest output, which shows a lot of statistics for the strategy. We have return to drawdown, maximum stagnation, win-loss ratio, and the R-squared which is very important. Basically, it shows how good the equity line is. And then we have the drawdown, backtest quality a lot, a lot of things.
The Equity Line
On the side, we have some graphs for a count of entries by weekdays, and profit and loss in currency by weekdays. In this case, it is for Bitcoin. And then below, we see some more statistics. Monthly performance is very important. So here we can see which months were profitable and which months were losing.
As we always say in our courses, every strategy has losing periods.
This strategy has a great equity line. But if we look at the monthly performance, we see that there were actually months where the strategy was losing. But overall, the strategy is profitable because most of the time it is profitable. In this case, we have the total in years.
The monthly performance
So, in 2017 it was profitable, 2018, 2019, 2020 so far. So don’t panic. If you place the Expert Advisors on MetaTrader and you see losses, just wait a little bit longer.
First, put the EAs on Demo Account so you will see how it works and you will see some profits as well. One more time, if you want to do a reliable backtest or if you want to see more statistics, you better use the editor and import back the Expert Advisor in EA Studio.
Click on Import an Expert Advisor back
If you don’t have enough bars from MetaTrader 4 for your broker to perform backtesting, you can use premium data that is available in EA Studio.
Backtesting on MetaTrader 4 Demo Account
It comes by default where we have a lot of bars for many trading assets. So that’s how we do backtesting on MetaTrader 4. You saw that when we use more professional tools and software like EA Studio, we can have a more detailed backtest. But I would suggest you just place the Expert Advisors on a Demo Account. This way, you will have a real simulation on the market and you will see how these strategies perform. Give it some time. Test it for a week or 2, a month, 3 months, 6 months, it’s up to you.
Everyone prefers different periods for backtesting. And this is quite understandable. So go ahead and test the Expert Advisors. There is nothing to lose. Open a Demo Account so you won’t be risking any real money.
Backtest MetaTrader 4 vs. Strategy Builder EA Studio is a free lecture from our Top 5 Strategies (+EAs) for Cryptocurrency Algorithmic Trading course. If you haven’t enrolled for the course, you can do it here.
Thank you for reading. And if you found this article useful, don’t forget to leave a comment below or subscribe to our YouTube channel where we share valuable tips, trading strategies and our trading insights.
Today I will explain what is a crypto trading bot and how you can use one, where you can trade with the robot and how you can get one. I will explain to you what is the difference if you are trading at a cryptocurrency exchange or with a crypto broker.
So first of all, the crypto trading bot is just an automated system. An automated strategy that will execute the trades for you. So you don’t need to stay in front of the monitor. No need to click the Buy and the Sell button, to watch the charts, analyze the market, follow the fundamental news, and so on.
Crypto bot trading is already quite popular but many people don’t know that it exists at all. And why is that? Because you cannot trade with crypto robots on the cryptocurrency exchanges. So the crypto exchanges are the most popular method that people buy and sell cryptos and exchange cryptos.
Can We Use Crypto Trading Bot For Automated Trading?
In 2020 on the crypto exchanges you cannot trade automatically, there isn’t such an option. Or at least I’m not familiar with one. Probably by the time you’re reading this article, there will be an option to use a crypto trading bot at exchanges. And of course, we will update everyone on our YouTube channel and in our courses. Probably we’ll record some new courses if there are nice methods for automated trading on the cryptocurrency exchanges.
So for the moment in 2020, you cannot do automated trading with trading Robots on the crypto exchanges. And that’s why many people don’t even know it is possible. The fact is that automated trading is possible since 2017. I have recorded some of the first videos out there about automated trading with cryptocurrencies. And trading, especially the Bitcoin with Robots.
Trading Bitcoin With Robots
Actually one of the online courses that I have that got most students back in 2017 was the course where I share the Bitcoin crypto trading bot. So it is possible for long enough, it’s just not available on the crypto exchanges. And that’s why most people don’t know that’s even possible. So how is that possible?
Crypto Bot Trading On MetaTrader Platform
Crypto bots can be used with the MetaTrader platform. MetaTrader platform is the most common platform for trading nowadays. It is popular everywhere in Europe, Asia, in the States. The huge Forex brokers offer the MetaTrader platform, it is free. So MetaTrader is a third-party company.
The company is called Meta Quotes. They have developed MetaTrader and what they are doing is they are selling it to the big brokers. That is actually a fantastic business model they did. Because they don’t get money from the traders, us the clients. They get the money from the brokers.
And as far as I know when I visited last year’s one of the biggest Forex expos in Cyprus, аt that time MetaTrader was quite costly for the brokers. I think they charge the brokers about $75,000 a year, which obviously for the big brokers is nothing.
MetaTrader 4 vs MetaTrader 5
The big brokers spent over $100,000 just for Google Ads per day. So imagine how cheap for them the MetaTrader is. Anyway, that’s not the topic of this article. The MetaTrader is a free platform that everyone can use, access easily, download easily.
There are two options available, MetaTrader 4 and MetaTrader 5. The MetaTrader 4 is the older one but I still prefer to use it especially for algorithmic trading. There are a few reasons I will explain in a second.
So on the MetaTrader platform, you can trade with Robots. If the broker offers MetaTrader with Bitcoin or Ethereum, Litecoin, Ripple and etc., you can trade with cryptocurrency expert advisors.
These are usually the four cryptocurrencies that you will find on MetaTrader. And you can trade them with a crypto trading bot. If you have a broker that offers a MetaTrader with automated trading and it offers cryptos you’re good to go with crypto Robot. And this is what I show in my courses. So there are a few different ways you can do it.
Available Options For Robot Trading On MetaTrader
You can buy a crypto trading bot from the market, which is obviously the easiest way. But sometimes it could turn out to be the hardest. Because you never know what is on the other side. You never know what is in the code if you are not a developer. I’m not a developer too. So if I buy a crypto trading bot I will see the performance they promise but I don’t know what is inside the code.
I don’t know when this crypto Robot will be buying and will be selling. So I personally would never go for that method. Especially for Bitcoin because I don’t know what’s the trading strategy behind it. I don’t know when it will sell or when it will buy. I don’t know what percentage of risk there is with this crypto trading bot in my account.
Another option is to hire a developer which is not that difficult to be done.I have done it a lot in the past.I’ve hired many developers to code my strategies for Forex. And it’s quite difficult honestly, these guys take a lot of money, their hourly rate is expensive.
Back in the time when I was doing it, it was in 2013. They were charging about $30 to $40 per hour. And if you want a crypto trading bot with a few entry rules and exit rules you will be paying at least a few hundred dollars. And the thing here is something a few traders know, there is a huge dilemma when you are hiring a developer.
You Need To Have A Profitable Strategy
You need to have a profitable manual strategy so you can order it to the developer. And they will make it for you as a crypto trading bot, they will code, right? For MetaTrader, it’s MQL coding that will work so the crypto Robot can work on MetaTrader. But there is a dilemma here. You need to have a good manual strategy to order the developer to send you back, you pay him he will send you back the code for this crypto trading robot, right?
But the only way to know if a strategy is profitable is if you can perform a backtest with the Robot. So the backtest is basically the option in MetaTrader where you can put the crypto trading bot. And you will see how it performed for the last 3, 4, 5, 10 years for example. Usually, for Bitcoin in 2020, we’re looking for the last 4 years just before 2017 where there was the boom and we don’t really care about what happened before that because Bitcoin was so cheaper compared to where it’s now.
So when you have the crypto trading bot, you can perform a backtest. And you will see exactly how the strategy performed, what profits to get, where it opened and closed trades, and so on. We’ll see the equity line of the Robot.
So this is the dilemma, guys. If you want to order a crypto trading bot to a developer you need a profitable manual strategy. But you don’t know if a strategy is profitable without a trading robot. So how will you know if a strategy is profitable if you don’t have a trading Robot, you don’t know that, right?
Strategy Builders – The Modern Way To Create A Crypto Trading Bot
So what happens usually is, the traders believe they have a profitable strategy. They order to developers and when they send them back the code, they do the backtest and they will see what losses and they realize that their strategies were not that profitable as they thought. This happens like 95% of the time I can assure you that.
So the other method to create a crypto trading bot is using strategy builders. This is what I use, honestly, it changes the trading because I can build a crypto trading bot without any programming skills. I just put the entry, the exit, the Stop Loss, the Take Profit, I build the trading strategy and I can export it as a crypto Robot. Some of the strategy builders, the software are expensive for most of the traders. They find them expensive and that’s why of course on the market there are different options.
There are cheaper ones, there are more expensive ones. But I want you to understand what is the difference compared to the crypto trading bot that is ready to use. And you can put it on the MetaTrader platform and you can trade with it.
I don’t need to hire developers anymore. I started using strategy builders about 3 years ago. So I stopped hiring developers. I don’t have a single developer in my team. And this changed my way of trading when I found some great strategy builders.
We have the Expert Advisor Studio, for example. We have it on our website for our students and traders. Some people find it costly but as I said that’s the market. If you want to use good software usually you have to pay for it. It’s like everything else, right? When you’re designing, when you’re editing videos you have to pay for the good product and there are others that are quite cheaper. There is the EA builder, the Strategy Tester, there is Strategy Quant. Forex Strategy Builder Pro is the other one I’m using but it’s a little bit more advanced.
Expert Advisor Studio is the one that I found best about 2 years ago and since this time I’m using it. The good thing actually with EA Studio is that there is a 15-day free trial, which you can test so during this time you can build an unlimited number of crypto trading bots. And there aren’t any obligations, you don’t need to put credit card details or something, you just register for it. During this time you can build many crypto Expert Advisors even if you’re not a developer like me.
Another good thing is that the software has a trading strategy Generator that allows you to import historical data from your broker and it will generate strategies for you. It will generate your crypto trading bot, it will show you different strategies for Robots and you can basically download them and use them. So taking advantage of the free trial I think it’s a great experience for every trader.
Using The Best Strategy Building Software Makes Crypto Bot Trading Profitable
I know many are doing it, a few can afford to buy it which is absolutely understandable. But one more time, when you are trading with bigger amounts and when you are doing that as a full day job, obviously you want to use the best software out there. Because they change the trading, they make it all possible.
And there are so many traders that buy ready-to-use crypto trading Robots from the market and they are expensive as well. Some of them are ready-to-use cryptocurrency bots, which are quite expensive and if you buy a few, you might spend more money than actually buying the software from where you will be able to make Robots for a lifetime. It’s quite interesting to do trading with a crypto bot honestly because you don’t need to be in front of the computer.
Keep In Mind The Spread
And one last thing I want to say is that trading on MetaTrader with the brokers is known as CFD trading. It’s much cheaper compared to if you do it on crypto exchanges. So even if you do it manually, even if you buy and you sell cryptos manually but you’re doing it intraday, or at least I mean if you buy a Bitcoin today and you sell it tomorrow or in a few weeks time.
It will be cheaper for you if you do it with the broker compared to the exchange. Because the fees on the crypto exchanges are huge. If you want to buy one Bitcoin at the moment in December 2020 on Coinbase you will be paying about €300 I think or a little bit above $300 that’s huge, right?
And if you are trading with a broker no matter if it is with a crypto bot or if it is manually, you will be paying about $10 to $25 of spread.
The spread is the difference between the Bid and the Ask price. We buy at the Ask price, at the more expensive price. We sell at the Bid price.
Why Trading For Shorter Or Longer Period Of Time Matters
So it is cheaper to trade on the Forex brokers if you are keeping the trade for a few hours or a few days compared to if you are trading, or actually it’s more of investing, on crypto exchanges. And if you keep the coins for a longer time, like what most people do, then the crypto exchanges will be cheaper because on the brokers there are fees that you pay when you hold your position overnight.
Trading For Shorter Or Longer Period Of Time Costs Differently
And if you hold it for a long time then it will get more expensive compared to the exchange. I have recorded another video about that because a few traders understand what’s the difference in the fees.
But one more time if you are buying and selling Bitcoin or any other in a short period of time then you better use the brokers. And if you’re holding it for a long time, then you need the exchanges and keep your coins in a safer place than the crypto wallets.
So with the Robot, with the crypto trading bot, we actually spent less because we are buying and selling quicker. Some of the crypto Robots will buy and sell just in a few hours, they will buy the crypto, they will sell it in a few hours, then they will buy again, and sell. It’s a lot of volume. A lot of trading that happens out there. That’s why it’s cheaper on MetaTrader. And one more time, that’s the only place where we can trade with crypto Robots. And something quite interesting is that on one account you can trade many Robots not just one.
Trading 99 Crypto Bots In 1 Account
Back in 2017, I recorded a course where I show how you can trade 99 Robots in the same trading account. Now in 2020 I have re-recorded it but no one else even shows such trading until the moment which is quite surprising for me.
And when I trade with 99 crypto bots in the account I have the chance to diversify the risk because these are 99 different strategies, 99 different Robots. And they all buy and sell, buy and sell, buy and sell. Definitely, the brokers win a lot of spread from me but crypto bot trading is not possible on the exchange.
So what I show in this course is quite interesting because I put 99 Robots in 1 account. Then I follow the performance and I see which are the top crypto trading Robots for the current market. Because especially the Bitcoin market is so different from man to man. Sometimes it’s very bullish, it goes just up, then it goes sideways for a long time, sometimes it goes down.
Using The Best Trading System
And what I achieve when I trade with 99 Robots is that I see it every moment which are the crypto trading bots that are suitable for the current market. And I grab them and I put them in another account where I will be trading with more volume.
So usually I have 1 account where I test many crypto trading bots and I extract the ones that are suitable for the current market condition and I put them on another account. This is the best option I found and the best system I found so far.
I found it in 2017. In 2020 I used the same system and as I’ve said, I didn’t see any other instructor and trader doing a similar course until the moment. Which is really strange for me. I mean good they didn’t do it but I want more and more people to see this system because it’s really great.
The Crypto Expert Advisor
And to make it possible for everyone who takes the course actually I am including these 99 crypto trading EAs in the course. EA is Expert Advisor which is the actual term for a trading robot, Robot or bot is just slang. So, the real term is Expert Advisor. So there are many opportunities to trade with crypto. What I personally prefer is using crypto trading Robots.
I don’t say you must go for a crypto bot but I personally feel I’m trading right now while I’m driving, and I’m recording this video. And I’m actually doing it. If I was going to do it manually probably I will be just on the phone and buying and selling. But that’s not professional trading.
I’m talking about professional trading in my videos. So everyone who is on the phone buying and selling cryptos, Forex stocks, anything, that’s not serious. Sorry to say that but I’ve been working for brokers and I know that over 95% to 97% of the people that are trading from the phone are losing money at the end of the day.
Don’t Trade Using Your Phone
You cannot follow the market on the phone, you cannot use crypto trading Robots on the phone, and you cannot really trade from the phone guys, don’t do that. You will lose your money.
DON’T TRADE FROM YOUR PHONE
What you need is to sit in front of the computer. You need to follow a strategy or you can trade with a robot if you want. I’m talking in general here not just about the crypto trading bots or the Bitcoin Robots.
Don’t trade from the phone. Take it seriously when you do it as a hobby spend one hour in front of your computer and laptop and don’t trade from the phone. The brokers will tell you it’s better because they want you to lose money keep that in mind.
Conclusion
So that’s what I wanted to share with you about the crypto trading Robots, they work on MetaTrader. And you need a regulated broker. Make sure it’s regulated before you fund your trading account. And from there you need to choose how you will get a crypto trading bot. It’s hard to code it by yourself. A lot of people are trying to do that, it will take you months and years.
So for me the best option one more time is to use a trading strategy builder. Or to get a crypto trading bot from a trusted place. Where they will actually show you and explain how the Robot works, how it was created, and what it’s meant to be.
Thank you guys for reading this article. I hope you have found it useful. If you did, please leave a comment below or subscribe to our YouTube channel to get more of our free crypto trading videos. See you in there, cheers.
Today we’re going to review the Crypto.com platform. Among the areas that this review will cover are the Crypto.com app, the regulations, the account opening process, and fees. We will also dive deeply into the stacking options and the Crypto.com Visa card.
The Growth Of Cryptocurrencies
There is no doubt the growth story of cryptocurrencies has been quite fascinating and impressive. Ever since the first cryptocurrency was launched in the market in 2009, there has been a gradual increase in the understanding of the various benefits and advantages associated with cryptocurrencies.
Over the past 11 to 12 years there has been a phenomenal increase in the number of cryptocurrency brands and names.
According to experts, there are around 4,000 cryptocurrency brands as of January 2021 and the numbers keep getting stacked by every month.
Hence, tens of thousands of people are upbeat about the future of cryptocurrencies.
However, on the other side of the spectrum, there are many people belonging to the old thought process who may not be too comfortable with cryptocurrencies. They may have a few valid and justifiable reasons. Anyway, that has not stopped the growth of cryptocurrencies over the past few years and the growth story continues even today.
Crypto.com Review
There are obviously some reasons for the growing demand and the impressive growth of cryptocurrencies. However, the focus of this article is to go in for a complete and impartial Crypto.com review.
Crypto.com is one of the platforms that gained 10M users in no time and there are reasons for it:
exchange with a huge variety of cryptocurrencies
a friendly mobile app that offers many possibilities
Crypto.com Visa cards where the clients receive cashback
Here are the requirements for staking cryptocurrency and applying for the Crypto.com card.
The role of a good crypto-trading platform is extremely vital. However, before going for this Crypto.com review, first, we need to have a basic understanding of cryptocurrencies. Then we also need to have a brief overview of crypto trading platforms.
Once you have a decent idea about both cryptocurrencies and cryptocurrency platforms, we believe that you will be in a better position to understand more about the contents and topics that will be discussed while going in for the Crypto.com review.
What are Cryptocurrencies?
If you want a simple definition of cryptocurrency, we can refer to it as a digital asset. The asset has been designed to perform the function of a medium of exchange. Through this medium individual coin owners can record their ownership and other relevant records of buying, selling, and investing in cryptocurrencies. The above information is stored in a digital ledger. The ledger exists as a computerized database. The best of end to end encryption technologies are used for securing the safety and security of each transaction that happens over a period of time.
What is interesting to note that crypto.com is launching it’s own decetralized cryptocurrency exchange with low fees and fast execution:
Cryptocurrency also has a unique feature because it can help the owners to create new cryptocurrencies. It is not stored in a physical form like the paper currencies that we are all used for centuries. Further, cryptocurrencies are not issued by the central banking authorities nor is the value of each currency not guaranteed by the Federal Reserve banks.
However, whenever a cryptocurrency is created, minted before being issued it is considered to be centralized. A complex distributed ledger technology is used to monitor the movement of each and every bit of cryptocurrencies.
What is Cryptocurrency Trading Platform?
When we talk about cryptocurrency platforms we are referring to exchange platforms. These platforms are vital and important because of a number of reasons.
They help in permitting the exchange of one cryptocurrency for another. These platforms are also vital whenever there is a need for converting cryptocurrencies into fiat currencies or legal tender money as they are referred to in some quarters.
Hence, when we talk about sites like Crypto.com we are referring to a platform that helps in performing the above two important functions.
As the number of cryptocurrencies keeps increasing at a brisk pace, there also is a growing demand for cryptocurrency platforms. This has led to the proliferation and growth of new cryptocurrency trading platforms over the past few years.
Even as you read this article, it is quite possible that a few new cryptocurrency platforms may have gone online on the worldwide web. There are also such trading platforms that may not necessarily operate on the worldwide web. We will learn more about it as we go through the Crypto.com review.
It would be pertinent to mention here that all trading platforms are not the same. They are not created nor do they operate on a uniform basis. Of course, there could be some similarities and these things may also become a bit clearer when we go through the various points while talking about the Crypto.com review-related matters over the next few lines.
As mentioned above, there are different types of crypto trading platforms. Understanding this will help you to better understand how cryptocurrency trading works. If you are into cryptocurrency buying, selling, and investing, you should take time out and get to know more about the various crypto exchange platforms in the market. Do not underscore the importance of going through quality Crypto.com review articles and other reviews that talk about other cryptocurrency platforms across the world.
It would be pertinent to also mention here that cryptocurrency exchange platforms have grown quite amazingly over the past couple of years. They are evolved as the market itself evolves and becomes more mature. Many investors in cryptocurrencies prefer staying away from directly getting into buying and selling crypto tokens and coins. They would rather depend on these cryptocurrency platforms like Crypto.com to help them do the job on their behalf. This is perhaps because these platforms have experts, experience and they could guide both new cryptocurrency investors and also experienced ones.
Crypto.com Review
Now that we have had a reasonably good idea about the role, meaning, and scope of both cryptocurrencies as well as cryptocurrency exchange platforms, it would be a good idea to get into the much-awaited Crypto.com review.
To begin with, let us get started by understanding that like many other cryptocurrency trading platforms, Crypto.com is also one. It has been around for a few years now and has gained the trust and confidence of many cryptocurrency investors. We will also look at various other aspects such as Crypto.com fees based on the various Crypto.com reviews on Reddit.
What is Crypto.com?
Let us get our Crypto.com review started by understanding the basics of Crypto.com. It is a cryptocurrency trading platform that allows people to buy, sell, trade, invest and also earn interest on their overall cryptocurrency holdings and ownerships.
Let us begin by understanding that Crypto.com offers its platform only in the form of a mobile app. They do not offer desktop access.
Here are some of the services that are offered by this platform as mentioned in their website and also as mentioned in the various Crypto.com review articles and also various Crypto.com Reddit posts.
The exchange allows buying and selling of cryptocurrencies.
It is also possible to send funds to various other users of Crypto.com
It also comes with a crypto wallet.
You can stake cryptocurrencies and earn interest thereof.
Users can get a special cryptocurrency Visa card from Crypto.com.
It would also be pertinent to mention here that Crypto.com has the capability of supporting 90 major cryptocurrencies which are also referred to as CRO. This is a positive feature and many users have spoken positively about this.
Further, Crypto.com users also have the facility of receiving payments through various options. They can make use of CRO or could also make use of fiat currency or stable coins.
The site also allows its users and stakeholders to stake their cryptocurrency holding by swapping their CRO and earning interest out of it. This is indeed an attractive feature because it could help in boosting the interest yield by as much as 20 times in many cases. This again has been corroborated by many reliable Crypto.com Reddit review articles. When we consider the yields after factoring in expenses such as Crypto.com fees there are reasons to believe that it is quite impressive.
Review the staking option offered by Crypto.com?
When we talk about staking we mean that the cryptocurrencies or coins have to be locked up for a time period. In exchange for such lockup periods, the cryptocurrency owners are offered interest.
There are some great news for the upcoming Mainnet staking Rewards which are expected to aim at a return at 20% APY.
As mentioned above, in many cases, the interest earned could be quite high. However, it would vary on a number of factors such as the crypto coin in question, the time period for which it is staked, and most importantly the quantum of coins or cryptocurrencies that have been staked.
This can be understood better if you go through some reliable and trustworthy Crypto.com exchange review posts. Interest for such staking is paid to the investors by way of the same cryptocurrencies that they have invested in the first place.
The interest is not paid through USD or other forms of legal tender or fiat money. Hence, this is an important point that one should bear in mind when choosing this cryptocurrency trading platform.
Many good Crypto.com reviews on Reddit also talk about it. This is because it could help to offset a part of the Crypto.com fees that have to be paid.
Review Crypto.com App and Crypto Earn
The Crypto.com app has a unique feature that allows investors to earn returns on their cryptocurrencies. This feature is referred to as Crypto Earn. However, there are a few more points that you should bear in mind before opting for the Crypto Earn feature. This Earn feature is not available to residents of Malta, Switzerland, and Hong Kong SAR. To know more about it, it would not be a bad idea to have a closer look at the various Crypto.com review articles on Reddit that are reliable.
The interest is paid out weekly through a method of simple interest calculation. The Crypto.com app is useful in this regard because it shows the value of your cryptocurrencies at the time of payout. Many users of the Crypto.com app have liked this feature, and it also has found favorable mention in many Crypto.com exchange reviews.
However, as mentioned above there is a lock-in period when you decide to stake your cryptocurrency holding, partially or in full. Hence the value of the cryptocurrency during the period of lock-in should not make much of a difference. This is because the owner is not allowed to sell it. This has both positives and negatives attached to it.
Tokens in Crypto Earn
However, many Crypto.com exchange review writers and experts are in favor of this feature. This is perhaps because it does away with the risk of panic selling that often happens not only with cryptocurrencies but also with other forms of trading such as trading in stocks, shares, commodities, foreign exchange buying, and selling amongst others. It also could have a buffering impact to absorb a part of the Crypto.com fees and many experts and also authors of various Crypto.com reviews on Reddit also talk about this in length.
The lock-in period is also fixed by Crypto.com and it could be from one month to three months. Additionally, they also provide a flexible investment time-period option. The longer the time period, the better will be the interest-earning. Therefore, the end-users are also happy because it helps them to offset a significant portion of the Crypto.com fees and this also pushes the yield quite significantly.
Many experts who have penned these Crypto.com exchange review articles are of the view that choosing flexible options may not be the right choice. While it does offer more liquidity, the interest that you will earn is quite low when compared to a longer period of investment.
However, the investor is the best person to make this decision and it would depend on his or her risk appetite and the kind of returns that he or she is looking for.
For example, if you are able to stake around 50,000 or more CRO, you will be able to earn a better rate of interest. The rates of interest will also be higher in case an investor is able to stake around 500,000 CRO or even higher. On an approximate basis, this should earn an additional interest of around 2% and perhaps, even more, depending on the market situation. Going through a good Crypto.com exchange review perhaps may be able to give a better insight into this.
Use Cryptocurrency In The Real World
If you decide to use Crypto.com as an exchange platform, you also stand to gain in a few more ways. They offer a unique feature. This feature allows the owners to use cryptocurrencies in real-world situations. This is indeed a big takeaway and this again has won the appreciation and kudos of many genuine Crypto.com exchange review posts and feedback.
Not many platforms allow crypto owners to exchange coins with other investors. Therefore, you are better off in this respect if you decide to choose Crypto.com over other exchange platforms. In fact, while conduction this Crypto.com review, we have seen many posts on Reddit to talk quite a bit about it.
Crypto.com Visa Card Review
Crypto.com has an arrangement with Visa. This facility allows cryptocurrency owners to use the Crypto.com Visa prepaid card for purchasing physical services and goods. Crypto.com is perhaps one of the very few exchange platforms that offer a prepaid card.
However, there could be a thing or two that you must be aware of. Many merchant outlets still are not comfortable accepting payments made through cryptocurrencies. Therefore, Crypto.com has to convert the equivalent cryptocurrencies into USD, and only then you can use your special Crypto.com Visa card.
Crypto.com is at best helping their customers to automate the entire process of conversion of cryptocurrencies into fiat currencies like the USD. To know more about it, it would be a good idea to take inputs from articles or various Crypto.com reviews on Reddit.
Crypto.com Visa Card Rewards
We will also look at one more interesting aspect of Crypto.com and this has found mention in many qualitative and original Crypto.com review posts.
The service provider offers different types of card tiers. Each tier is tied to a different type of CRO reward amount. It also is based on the quantum of CRO that has been staked on the card. CRO rewards are offered and issued as and when as an investor you start using the Visa card.
Crypto.com Visa Cards
Apart from this, you also can get reward points for subscriptions to some popular sites like Netflix, Amazon Prime, Spotify, etc. However, the rewards go up depending on the amount of CRO that you have staked.
For example, if somebody is able to stake 5 million CRO, he or she or the entity in question will get an impressive 8% reward and this indeed is a big amount. This has also been mentioned in a positive light in some of the best Crypto.com reviews on Reddit.
Crypto.com Visa Cards Review & Order
And now I will demonstrate to you how you can order a Visa card from Crypto.com, which is already quite popular. Many people are using it all over the world and I will show you step by step how you can do it, how many CRO coins you need to stake. And by the time you’re reading that Crypto.com review, the conditions might change but I guess the main idea will always remain the same.
I find the Crypto.com Visa cards really nice because we get cashback. So whenever you spend money in the malls, supermarkets, you buy anything with your Crypto.com Visa card, you get cashback. Which is awesome. So let me go straight to the point.
Crypto.com Midnight Blue Card
And in order for me to order a Crypto.com Visa card, I will need to purchase some more CRO coins. So I will show you how that works. Now, if I open the Crypto.com app and click on Card which you can find on the right side of the menu and the free one is the Midnight Blue.
And if I tap on View or Upgrade, I see that I have the Midnight Blue.
I click on Card
Crypto.com Ruby Steel Card Review
Then I have the Ruby Steel, it’s the one that I’m going to order right now for the purpose of this Crypto.com card review. And I have the option “Without CRO Stake” and “With CRO Stake”.
So “With CRO Stake”, you’ll see that I will have 2% Crypto.com card cashback. So whenever I purchase something with this Crypto.com card, I’m getting 2% cashback. And why not? If I’m spending $1,000, I will get back $20 in CRO coins. And if the CRO coin increases its value, I will have more into my account.
With CRO Stake option
There is another benefit of using Ruby Steel Crypto.com card, and this is the100% Back on Spotify. So if you’re using Spotify and you pay with the card, simply Crypto.com will recognize it and they will send back the money into your card as CRO coins again.
We have some more information below like monthly fees, annual fees, delivery fees, and it’s free, no charge. And here is the thing, purchase and hold 5,000 CRO tokens for 180 days, which is 6 months, to receive the Ruby Steel card from Crypto.com.
So I have to buy the CRO coins, I need to stake them and this is basically the condition.
Additional information
Crypto.com Jade Green Card
And for the other cards, it’s different, there are limits. So let me go to the other cards, then we have the green and the indigo ones. So for the Jade Green Crypto.com card, we have 3% card cashback and we have 100% back from Spotify and Netflix.
And we have some more benefits, I’m not going into details. But here the difference, guys, is that I need to purchase 50,000 CRO tokens, which is not a small amount.
The green card
The White, Rose Gold, and Obsidian Cards
And if I go to the Icy White or the Rose Gold, you will see that I have more benefits and I need to purchase 500,000 CRO tokens. And if I go to the Obsidian, you will see the amount of 5 million CRO tokens, you do the math.
So please don’t take any of the cards as a recommendation, the purpose of the lecture is informational and demonstrational.
How to Order a Visa Card From Crypto.com
So I will actually demonstrate how you can order, for example, the Ruby Steel card. Upgrade to Ruby Steel, I will tap on that.
I tap on Upgrade to Ruby Steel
And I have 4 more steps to go. I will tap on Continue.
I tap on Continue
Let’s review what I need to do to order this Crypto.com card. I need to purchase 5,000 CRO and holding period of 180 days, as I said this is 6 months, Purchase and Hold CRO. That equals approximately $771.95 at the moment. I will tap on Review Upgrade.
I will be using my Visa card and here it is.
I tap on Review Upgrade
This is the summary. I will confirm it.
The summary
And I need the passcode, confirmation. And let’s see if the purchase will go through. Usually, it works without any issue with Crypto.com for me when purchasing cryptocurrencies.
Even in Bulgaria, the banks usually don’t allow purchasing cryptocurrencies. And I know in many other countries, it is the same thing. And it’s not easy for the transactions to go through. So I need to authorize the payment, I should receive a message just in a second, here it is.
I receive the message
I will just copy it and I will paste it, tap on Continue.
I copy-paste it and tap on continue
And it’s processing. So this is how it works easily from the app. I already have ordered a few, and here you go, ‘You successfully upgraded your card to Ruby Steel”. Tap anywhere to continue.
Upgrade successful
What I was saying is that I already have done that and I personally enjoy having such a card. But I wanted to demonstrate in one lecture how that works, so I will accept the terms and conditions. Always suggest you go over and read them, I will confirm it. Just a few easy steps and we can get your Crypto.com Visa card ready. Fill in the address, and what I need to do right now, is simply fill in my address.
I fill in my address
And they might ask me as well to scan some documents for proof of address. And that’s it. Basically, they will be sending the Crypto.com card and I’ll be staking the 5,000 CRO for 6 months. And please don’t take it as a suggestion to order any of the Crpyto.com cards. Some of them I find costly especially if you are reading this lecture later when the CRO coin price is higher, hopefully, it will be.
And if you have any questions or experience with the CRO staking and the Visa cards, I’ll be happy to see them in the comments below. And if you’re just starting out with Crypto.com and staking, you can use this link to get a bonus when you are staking some cryptocurrencies.
Crypto.com Fee Structure Review
Let us have a look at the fee structure of Crypto.com. Yes, there are many reviews on the Internet that talk about the complexity of the fee structure at Crypto.com.
They have a concept known as the maker-taker fee structure when it comes to trading with cryptocurrencies. It is tied to a 30-day trading volume. The maker fees could be in the range of 0.036% to 0.10%. On the other hand, the taker fee could range between 0.090% and 0.16%.
Though the fee structure may be a bit complicated, there is no denying the fact that it is in line with competition and Crypto.com is not overpriced on this count. Knowing the exact Crypto.com fees is therefore important.
The fee structure also is different for minimum and maximum withdrawals. It is dependent on the type of cryptocurrency that is being sued for withdrawals.
Since Crypto.com deals with almost 90 different types of cryptocurrencies, it will not be possible to tabulate and list down the fee structure for each of the cryptocurrencies that are dealt with by this crypto exchange platform. The best way to know about the fee structure would be to go through the website and look up the fee structure for various types of cryptocurrencies.
Most Crypto.com reviews on the Internet will also be suggesting the same thing because of obvious reasons. It may not be prudent to get into trading and other such activities without having a reasonably good idea about the applicable Crypto.com fees.
Interest Rate
Apart from understanding the applicable Crypto.com fees we also should know something about their interest rates. Since Crypto.com does not offer desktop access for their customers, the interest rate is restricted only to the Crypto.com app and the Crypto.com Visa card that we have talked about above.
The interest could be around 12% for rewards cards and FDIC-insured investments. It is around 8.60% for rewards cards and not for FDIC-insured stakes. Lookup on Reddit for any good Crypto.com review information and you will get to know more about it.
Account Opening
The entire account opening process is quite easy and can be done in a few minutes. However, you have to visit Crypto.com. Once you are on the site, you will come across links that make you download the Crypto.com app.
Crypto.com app for iOS and Android
The mobile app is compatible both with Android and iOS. The minimum age for sign up is 18. It would not be a bad idea to go through a few well-written and factual Crypto.com review articles. It will help you to get a reasonably good idea about the chronology to be followed for opening an account with Crypto.com.
You will have to prove your credentials through some accepted documents and also mention your email and other personal details. This procedure is known as KYC and is a common practice for legitimate trading and financial institutions. Once you are through with this, you will be able to start transacting and start making use of this app-based online crypto exchange platform.
How safe is my money?
This is a common question that is asked by prospective customers who may have an idea to be associated with Crypto.com. The promoters of the company have taken adequate care and go through the rules and regulations laid down. This ensures reasonable safety as far as your money is concerned.
However, we need to bear in mind a few things. Crypto.com is not SPIC or FDIC insured. Further, Crypto.com is a company that is not based in the USA. It has its head office in Hong Kong where the regulations are quite different when compared to the USA and a few other western countries.
The absence of a mailing address or phone number on the website of Crypto.com is also mystifying and intriguing. Therefore, it would be better to do some due diligence, check with some other Crypto.com reviews, go through some reliable references, and then make a decision.
However, since they have been around for a few years now, there are enough reasons to believe that they are quite reliable and may have stood the test of time. The returns are good and the Crypto.com fees are also in line with what the competition charges.
Crypto.com DeFi Wallet Review
Now we will do a quick review of the new Crypto.com DeFi wallet. Is it safe, how it works, and the most important things you need to know before using it.
Crypto.com launched a fully decentralized open-source blockchain, the Crypto.org chain. The users got access to the Crypto.com DeFi wallet, where the cryptocurrency investors feel safer storing their cryptocurrencies while earning passive income from high interest rates.
First of all, when it comes to cryptocurrency wallets, one of the most important things is security. And Crypto.com DeFi wallet is a non-custodial wallet, where you have full control of your cryptocurrencies and private keys. You can manage over 100 coins including Bitcoin, Ethereum, CRO, Litecoin, and other ERC-20 tokens. Quite interesting is that you have the chance to select the speed of the transaction when you are sending cryptocurrencies. Of course, the faster you choose, the bigger fee you will pay. However, when we talk about fees, you will be surprised by how low they are.
Crypto.com DeFi wallet app
So let’s have a look at the Crypto.com DeFi wallet app right away. What you see on the top is your name. So when you set up your DeFi crypto wallet, you need to give it a name. Then you have your balance which will be zero when you start.
They launched the Crypto.com DeFi wallet a few days ago, so we didn’t put any funds yet. Then we have the option to Send and Receive. Obviously, we don’t have any funds to send but if we tap on the Receive, you will see that we have a few options.
For example, if you click on the CRO coin, you will see your address, so you can send it easily. And if you are sending CRO coins from your Crypto.com app to the Crypto.com DeFi wallet, you will be paying 0.001 CRO as a fee, which is super low fee.
And let’s focus on the menu that we have below. First, we have the Wallet. Then we have the Swap feature, which is quite interesting. This is where you can farm and swap DeFi tokens right in your wallet, which we find super useful.
And third is the Earn option, which is the thing that makes the Crypto.com DeFi wallet super attractive. As you can see at the moment or today’s trades are super high for the CRO, which is 61.63. And just yesterday it was above 100% but it’s decreasing, actually, the rates are floating.
This is why it says today’s rate. So by the time you are reading this Crypto.com DeFi wallet review, the rate will be different. And if I scroll down you will see that the Earn option is possible for quite many coins.
Connecting the DeFi wallet with the Crypto.com app
Now if you go to the wallet and tap on the Settings icon and this is where you can connect to your Crypto.com app.
And I should check by connecting the apps, I understand the connection will associate my Crypto.com identity with this wallet. I will tap on that and I will confirm that I’m the beneficial owner and so on. I will just tap on Connect Petko Aleksandrov. And right here, I will need to enter my email address, so let me do that very quickly. I will send the connection email, so I will need to confirm it very quickly within a few seconds.
And here is the email, so I just tap on Connect, and I will need to enter my passcode for the Crypto.com app. I tap on Continue and authorize and launch the Crypto.com DeFi wallet. Almost done, open DeFi wallet, bring me back on there, I will enter the passcode and here we go ‘Petko Aleksandrov successfully connected to the Crypto.com app’. Got it? And I am connected with my app, so now I can easily transfer coins from the Crypto.com app to my DeFi wallet.
Super simple, very friendly to use the DeFi crypto wallet, nothing really complicated, sending, receiving swap, Earn, that’s it.
Crypto.com has surprised us many times and we’re excited to start using the DeFi wallet. Probably, we will record videos while using it, so make sure to subscribe to our channel so you won’t miss any updates and useful tips about the platform.
How Good Are They?
If you are not too bothered about being associated with a non-US crypto exchange platform, you may have quite a few reasons to choose Crypto.com.
They are run by a team of professionals who have rich experience in this business. Totally, a team of 19 highly qualified and experienced professionals is at the helm of affairs. At their Hong Kong headquarters, there are 700+ people working for the company. They have not yet received any negative feedback about the safety of money, customer services, efficiency, and other such things.
However, if you are looking for a US-based crypto trading platform, then you may feel comfortable looking for a company that is headquartered in the USA or other western countries.
Further, if you are looking for a platform that offers other trading options through personal computers, then Crypto.com may again not be the right choice. The overall fee structure is quite good but a few users believe that it could have been more straightforward and complexities could have been avoided.
Pros and Cons
Pros
Run by a team of qualified professionals.
Offer trading even investment in 90 different cryptocurrencies.
Visa tie-up.
Possible to use cryptocurrencies for buying and selling of common products and services.
Good support services.
Easy sign-up procedures
Health rate of returns for investments and staking of cryptocurrencies.
Cons
Complex Crypto.com fees structure
Can be operated only through mobile apps.
Conclusion
With so many cryptocurrency trading platforms out there, making the right choice is never going to be easy. However, those who understand cryptocurrencies in general and crypto trading platforms in particular, have reasons to believe that it is a trusted, reliable, and proven service provider.
They are known to make use of the best of technologies and they are headed and run by a team of 19 professionals who know quite a few things about cryptocurrency trading, the platforms, and other such things. Yes, some people are a bit unhappy that they are not able to offer trading platforms for those who prefer computers and laptops. The management must be aware of this and must be taking necessary steps on this count.
Hello everyone, in this lecture, I will share with you why I stopped hiring Forex EA developers and I will share some of my experience with you.
So the time I started hiring Forex EA developers was the time when I was working for a Swiss company and I was working as a trader. But at one moment, they decided to switch to algorithmic trading. So we started looking for Forex developers.
Actually, I’m very happy the results from trading for this company were not great because of their methodology. But I’m not going to discuss it. I’m happy because due to this experience I learned a lot about algorithmic trading and after quitting the company, I switched totally from manual trading to automated trading.
Better Hire Good Freelancers
At that time the owner wanted to automate the manual trading strategies they were using. We didn’t have Forex developers in the team and I think it’s very wrong if you are a trading company, and you hire Forex EA developers to code for you.
Because there are some guys out there and these are the best Forex EA developers that you can hire as freelancers. So if you’re thinking about establishing such a company where you will hire Forex developers to code the strategies for you, I think this will be very expensive. I think you cannot hire the best Expert Advisor developers this way, and I think you will spend a lot of time and money to teach them how to do it.
So you better hire the freelancers that are available on the web, and they’re very good at what they’re doing. But I will share with you why I stopped hiring such Forex EA developers after I left that company.
Coding One Strategy Takes Weeks For The Forex EA Developers
We were giving them tasks like PDFs, that had detailed explanations on the strategies they were supposed to automate. Right? Personally, I found, I remember, some really good Forex EA developers that I still keep in touch with. But the thing is it was so expensive to do it, it was so time-consuming.
Coding a trading strategy
For example, for one single strategy, the Forex developers were coding a few weeks, then we were testing it, then there were always mistakes, we send it back. And sometimes, I’m not sure if you have dealt with Forex developers, nothing bad to the guys, they’re one of the smartest out there, but sometimes it’s so hard to explain something to a Forex EA developer.
Because he sees everything through different eyes. Usually, it’s just misunderstanding and that was causing a lot of time to automate a single strategy.
You Don’t Need Skills In Forex Programming
At the same time, I said it’s very expensive. However, if you don’t have programming skills and you want to trade with the Robot and you have a strategy, you need a Forex Expert Advisor developer. You cannot do it another way. Right? Actually, you can.
I will tell you in a second how I did it. But that’s what the people think. They think that the only way to go is through the Forex EA developers.
Now, why I stopped hiring Forex EA developers? So what happened to me, I quit that company. There were no great results. It was very frustrating with the Forex EA developers, sending strategies, they give it back to us, we test them, errors, send back to them, give it back to us.
That was not what I wanted to do at that time. So I quit. I continued hiring Forex EA developers for my strategies, for my personal trading until the moment I realized the problem. And it took me over a year of hiring Forex EA developers to understand where the problem is, why it doesn’t work.
Why Hiring Forex EA Developers Doesn’t Work As Expected
I have strategies, I want the Forex developers to automate them, I want them to automate the strategies for me, but it never gets a good result and I will tell you what the problem is. As I said, it took me a year to realize it.
So what the problem is, when you have a good manual strategy, you trade usually 8 to 10 hours a day. You wake up in the morning, depends on where you are, I’m in Europe, so at that time, I was trading the London stock exchange when it opens, and then I trade the New York. Right? I rarely stayed for the Asian in Tokyo because whenever I traded for more than 20 hours, it was so exhausting.
So I was focused on the London and the New York stock exchanges. Now, the thing is, when you order to the Forex EA developers your strategy, you truly believe that this is a profitable strategy. Right?
Because you’re ready to pay let’s say $200-300 to the Forex developer to automate it so you truly believe that it’s a profitable strategy. What happens is when they send it back, you start realizing that this is not a profitable strategy, not as profitable as you thought it is.
Even if you’re doing profits in a manual environment. OK? And why is that? This is because the Robots trade on specific rules that must happen on the market. No matter is it price action indicators, Stop Loss, Take Profit, depends on what strategy it’s about and how it’s created, it was the idea.
Entry Conditions & Exit Conditions
But when you see your strategy taking the trade every time, because, with the Robot, you are never missing the trade. OK? If there are the entry conditions, it will buy, if there are the exit conditions, it will close the trade.
And it does it from Monday until Friday for the Forex market. And you see that if your strategy executes every time, you are not profiting.
Most of the traders realize the same thing that their strategy is actually not that profitable as they thought it was. Do you know what’s the problem?
Most Forex EA developers don’t perform backtests
Because they didn’t have the backtest. I didn’t have the backtest before I ordered the strategy to the Forex EA developers. Do you get the dilemma? To know that the manual strategy is profitable, you need the Robot to backtest it but you cannot have the Robot before you order it. OK?
So you’re ordering a strategy to the Forex EA developer to code it for you. And when he sends you back the Robot, this is the time when you can do the backtest and you will see if actually, the strategy is profitable.
So at the end of the day, it comes to the fact that when you are giving a manual strategy to a Forex developer, you’re just testing if this strategy is profitable or not. Because when he sends you back the backtest, you will see, when you perform the backtest on MetaTrader you will see if that strategy is actually profitable.
Strategy Builders vs Forex EA Developers
So at that time, when I realized that, I said OK, that’s not the way I will continue. I’ve spent time with that company, I don’t want to mention the name. I’ve spent time on my own trying to code strategies with Forex EA developers, and I said OK that’s it.
Do you know what I did? I sit in front of Google, I sit in front of the computer and I started typing. It was the beginning of 2017. I thought it’s not possible that someone until the moment hasn’t created a strategy, a software that is not doing the whole thing without programming.
And I started looking for such programs, and there were such programs. And at that moment I felt so stupid honestly that I didn’t check that earlier.
These programs are known as strategy builders. Some call them Expert Advisor builders, Robot builders, it’s the same thing. It’s software that allows you to create the strategies, to build the strategies without programming skills. The different software uses different methods but usually, you just put the entry rule.
So, for example, let’s say you use MACD. When the MACD line crosses the signal line upwards, let’s say this is your entry rule, you put it as a rule and there is the magic, immediately you see what is the result from that strategy.
And not just with the MACD. Let’s say you use RSI for exit or you have Stop Loss and Take Profit. Take Profit of 70 pips, Stop Loss 20 or anything. OK? You put all the things in the strategy builder and immediately you can see what is the backtest, what is the result out of that strategy.
Forex Strategy Builder Professional
I tested the Forex Strategy Builder Professional first, I wondered why I hadn’t looked into it earlier since it had been launched much earlier. What was the possibility that the company I worked for didn’t know about it?
They wanted automated trading but they didn’t check if such programs are available. How come I didn’t check personally a year ago and I spent so much money on Forex EA developers? I am glad that I found it. It’s better late than never. Right?
So then I tested many more. I tested both the EA Builder Strategy and Strategy Quant, though a few of them have changed their names.
The Two Programs That I Use
And for the moment, I use Expert Advisor Studio and I use Forex Strategy Builder Professional. These 2 programs are the programs that give me the opportunity to build my strategies in a different way. And since this time I’m not hiring any more Forex EA developers.
No need to do that for me personally because the strategy builders allow me to automate my trading without programming skills. All I needed to export the strategy as an Expert Advisor was one click.
It was really hard to stop hiring Forex developers. And. It depends on what you’re looking for and what you want from the Expert Advisor developer. If you want your manual strategy to become a Robot, you will realize that your manual strategy was not that good as you expected.
It changed my trading, way of thinking, and understanding
And using the strategy builders personally for me, changed my trading in general. It changed my way of thinking, changed my understanding of the market. I realized how Robots work with time. And also the type of strategies to be automated for profits.
And one last thing, when you build a Robot, it doesn’t have in mind the fundamental news. Because usually, when people trade manually, they always look at the Forex Factory calendar, for example. And they decide whether they will open their trades or not, when they will close, based on the news.
But when you have the Robot, it buys and sells, it buys, sells, buys, sells, it doesn’t really care as it doesn’t know about the news except if you have timed a filter inside and you will just close the Robot because of the news. Keep that in mind.
What You Need To Have In Mind
This is something very important when you do automated trading and when you especially order strategies to Forex EA developers.
Keep that in mind that the strategy you order to the Forex developer, you have manually used the fundamental news but the Robot will not use it.
The Robot will not know when anyone is speaking when we have an interest rate decision or anything like that. So that’s one of the reasons as well, the regular manual strategies that people use do not work as Robots. The dilemma is you cannot see that before you have the backtest. I stopped hiring Forex EA developers and started using the strategy builders, that was my solution.
And since this time, I feel so much better personally when trading with Robots because it was a headache dealing with the Forex developers even if there are some really good guys out there.
MetaTrader Forex Developers
You can find Forex EA developers, if you want still to go with Forex developers, you can find them on the MQL5 website. This is the official website on MetaTrader. Those guys have a lot of experience.
Usually, the experienced ones will charge you more which is understandable but keep in mind all the tips I said in this article because they might save you a lot of time and money.
Thanks for reading. We’ll see you in the next article and take care. Bye.
Many traders, beginners, or even a little bit advanced people, fail on the market because they don’t have a Forex money management system to follow. That’s crucially important. This is the base. And that’s exactly what we will be talking about in this lecture.
Hello everyone, I’m very happy to welcome you to our Trading Academy channel. We share a lot of our strategies, ideas, systems for the Forex market, Cryptocurrencies, Stocks, algorithm trading. Basically, everything that we do for years.
We’ve decided to create a vlog as well where we will be sharing more thoughts, tips, and suggestions to beginner traders who are just starting out and have no idea from where to go. And especially the people who already lost money because I can assure you that the mass of people around lose money initially because they didn’t take solid education. They didn’t follow strict Forex money management.
The Profit Factor
Profit factor is key part in the Forex money management
Even if you have the perfect strategy (there is no such strategy, but let’s say you have a very good strategy), no matter if it is manual, it is algorithmic trading using Robots, just a strategy that has a bigger Profit factor.
So for the beginners, the Profit factor is the total profits divided by the total losses in the account.
So let’s say I use one strategy and I buy, sell, I follow the strategy strictly. At the end of the month, if I have $1,000 profits from closed trades and I have $500 losses, my Profit factor would be 2. 1,000 divided by 500. And anything above, Profit factor above 1, that’s OK. So even if I have $501 and I have a profit and I have a $500 loss, that’s OK because I have $1 profit.
My Profit factor is above 1, so it’s not a point to be above 0, the point is to be above 1. And why I’m talking about the Profit factor and the money management you will understand just in a second. So every strategy that has a positive Profit factor, and not just positive but a Profit factor above 1 is a good strategy. It brings you more money than losses.
Forex Money Management Strategy
Now the thing is, even if you have such a strategy with a good Profit factor like 2, 2 is a great Profit factor because you will be making simply more profits, double more profits than losses. The thing is, even if you have such a strategy but you have bad Forex money management, then you might still blow your account.
Now every strategy out there, no matter which strategy you’re using, guys, every strategy has losses. That’s why the Profit factor is important, so we can compare the profits and the losses and we can see how profitable the strategy is, especially when we do backtests with Expert Advisors.
So when you start trading, you will see sooner or later that there will be losing trades and sometimes these trades are consecutive. For example, I would be making, let’s say a $100 profit, then I will drop to 50, then I will go up to 120, then I can drop to 30. These are drawdowns. Where our equity goes down and of course if the strategy is robust and if it’s profitable in the longer term, then our equity should continue higher.
Increasing the Lots
But thing is, what happens when you have a few consecutive losing trades? This is where you can blow your account if you don’t have a good Forex money management system. Because what happens with the beginners is they start seeing profits and the feelings start to play. Especially, when you have a few consecutive days, you will be so confident in your strategy.
You will say, OK, I know how to do it now, I know how to trade, and you did just $100. And you say, OK, now if I was trading with double size, I’ll be making 200. And you start to increase the lots, you start to increase the quantity you trade, because you’re so confident in your strategy. You did profits.
But what happens is, it is very likely that when you increase your lots, the lot is the trading quantity in trading, when you increase the lots, what happens, there is a huge possibility that at this time you will hit the losing period. But you increased a lot and then you will have just double more losses into your account and you will go on 0 or even below that.
Losing Trades
And then you’re still very confident in your system. You say, OK, I know this system is very profitable, I did profits, I just hit the losing trades. And after the losing trades obviously, I will have the profitable trades. Then you might increase more the lot. And then if there are other losing trades, you can easily blow your account.
Simply one day, you will not have enough margin in your account. The broker will close the existing trades because they cannot handle negative losses and you will lose everything. Using a profitable strategy. And many people don’t even realize what the issue is, they think it’s the strategy.
But most of the time, especially if you use a backtested strategy with Expert Advisor which proves to be robust. The reason of losing or failing and trading is because of the feelings. This is because of bad money management. And one thing, so what’s the solution?
Algorithmic Trading
That’s the purpose of this lecture. I’m just explaining first the problem so you can understand where it comes from. And then you will understand what is the solution. Now the solution is algorithmic trading, Expert Advisors. These are Robots that execute the tradesautomatically.
The Expert Advisors will follow your strategy strictly 100%, even when you are sleeping, even when you are driving like me.
Using a robot for better Forex money management
This is what I do guys, I trade with Expert Advisors all the time. The EAs are trading on my computer. And that’s what I love the most with the Expert Advisors. But regarding the Forex money management, the Expert Advisors, these are codes. This is a code for the strategy, doesn’t have feelings.
Reasons for using a fixed quantity
So even if it does a few consecutive trades, profitable ones. It will not get greedy to increase the lot. It follows the same amount. And now all the Robots that we use in the Academy and that I attach to our courses are always with a fixed entry.
For example, you set it to 0.01 which is the minimum quantity or you set it to 0.1 or 1 lot if you have bigger capital, then that’s it. It will always trade with 0.1. And the time you decide your account is growing, you can start increasing the lot accordingly.
I will give you some examples at the end of the lecture to let you know what I follow as a Forex money management when it comes to the account and the quantity I trade with. But that’s the reason, that’s why we use always a fixed quantity in the Robots and not what most people want to have. They want to have a percentage as an entry.
Setting the Robot to open trades
So of course, that’s possible to be done with the Expert Advisors. But we do it by purpose this way exactly to lower the emotions into people. Because what’s most popular when trading with Robot, is you set it to open trades, for example, to 5% from your account. It will open every time 5% from your account and it calculates it.
The problem is, when your account starts to grow, your opening entry or your opening percentage for the Robot will grow as well. And again if you hit a losing period or if your strategy has a huge Stop Loss, what will happen is, you can have a much bigger loss than the previous profits the Robot did.
So that’s why it’s better to have 0.1 and that’s it. You follow entry with 0.1 lot. I hope I have succeeded to make that clear and I said I will give you a few examples. So when you are trading, for example, with $1,000, a good Forex money management would be to open trades with maximum 0.5 lots.
Forex Money Management – The Leverage
Then it’s up to you if you want to be trading with 1 strategy using 0.5 if you want to be using 5 strategies using a 0.1. So basically, what happens is all the time, no matter how many trades you have, you will not have more than 0.5 lots. And of course, it depends on the leverage, that’s very important, just mentioning for the beginners. The leverage allows us to borrow money from the broker.
So if you have $1,000 into your account and you use leverage 1 to 30 which is quite popular recently, then you will be able to open trades for up to $30,000. And you need to make sure that you’re using a small portion of this money.
And another thing that many of the beginners don’t understand is that the risk actually is not how much from your account you have opened or you have used. Did you use 5, 10, 20, 50% from your account? But the risk is your Stop Loss. So if you use for your strategy Stop Loss of, let’s say $50 or 50 pips, trading with 0.1 is approximately $50, then this is your risk.
The Stop Loss
No matter what is your account, how much you’re risking out of it, the real risk is the Stop Loss. Because if you have, for example, small Stop Loss, let’s say 20 pips, 50 pips. I’m not a fan of small Stop Losses, but you use 5 or 10 Expert Advisors for different strategies, and if you open trades with all of them, what will happen is that you and all of them go to a loss.
Which is also possible to happen. What will happen then is you will have a solid loss. So always calculate your Stop Loss. And this is what matters, even if you use all the money of your account. But you use a small Stop Loss, that’s still fine. You have a good Forex money management because you’re not risking a lot.
So following the money management strictly, is very important. And no matter what happens, don’t fall into emotions. Don’t fall into the greed that after profitable trades you will take bigger risks. Don’t fall into the fear that if you see a few losses, you will blow your account and you close for no reason trades. You need to accept that there will be losing trades.
Beware of scammers
The moment you accept that is the moment you will understand how everything works. And many beginners always aim to find a strategy that has no losses. I understand that because many of the brokers promise that. That’s a lot of scammers, YouTubers, people who will drive you to affiliate links for some scam companies.
They will promise you Robots without any losses and it’s like accepted. The general mass of beginners thinks that there is such a thing. But the fact is, there is no such thing, guys. There will be always a loss in your strategy. There will be a week, maybe a month even without doing any profits.
But next month will be OK. Next 2, 3 will be all right and you will be on the profitable side, if you use your strategy strictly and if you have good Forex money management. Don’t look for a strategy that will bring you no losses.
Good Forex Money Management
I’m telling you this because I have been through that. And the only solution for having no losses is the never losing formula that I have calculated for the Cryptos where I take hedging trades and I open trades against the initial trade to cover the losses. It’s mathematics that I’ve been using. And then every losing trade just exits with 0 loss.
That’s the maximum you can achieve out there, nothing more. So be realistic, don’t fall into emotions. Follow your strategy strictly and precise Forex money management that will feel comfortable for you. So anything where you’re not risking more than 2% to 5% of your account, is good Forex money management.
And anything that you are not blowing your account in a few trades still works fine.
For the purpose of this article, I will show you an example of an account. I started with 10,000 and now I am at 11,000.
This means that for 1 week or just a little bit longer, I have 10% of the account which is a very good result. And I don’t say it will happen to you when you start trading, that you will have the 10%. Maybe it will be less, maybe you will end up the week losing, it really depends on the market. That’s the one thing you should remember as well, that the results are not always the same. But the better FX training you have, the better results you will achieve.
So we don’t have 1 week similar to the next week or to the previous week. Sometimes we have a good week, sometimes we have a bad week, that’s the market. But the most important thing is that we maintain good money management. In a $10,000 account, what I wanted to show you as an example in this course, I’m trading the Expert Advisors with 0.1 lot. This means that in my account I am blocking about $100 for each trade, 100 and something, like 110.
5 open trades are normal for an account
Because you see I have 5 trades opened at the moment,
The 5 open trades
with 0.1 and the margin I am using is 549 which is about $110 for each trade. And this is 1% of my account. Or when I started with 10,110 is just 1.1%. And if all the Expert Advisors open trades, which are 5 Expert Advisors but 2 of them, the GBPUSD and the USDJPY, you can add to the position if you want to. From the Expert Advisors, Properties, you can select if you want to add.
Go to Expert Advisors then Properties
If you don’t want to add, you just leave it as it is. So it will not add to the position because the maximum position amount will be 0.1. I keep it 0.3 so I add 2 more times.
I keep it at 0.3
So if all the Expert Advisors, the 5 of them open trades, and if the USDJPY and the GBPUSD add to the position, I will have a total of 9 trades opened. And each one is 0.10, I will be at 0.9 lot which will block me about $1,000 from the account. That is the maximum I can have and that is what you need to calculate in your FX training before you open a real account.
Each 110, 9 times, it will be about 990. So about 1 complete lot in a $10,000 account which is 10%. But keep in mind something, I’m not risking 10%. I will have the margin at 10% or at $1,000. This is how much it will be blocked from my account to open the trades. The rest will be a free margin like what we see at the moment.
FX Training: Stop Loss is the real risk
So if at the moment all the Expert Advisors open trades, I will have a blocked margin about $1,000 and the free margin will be about $10,000. So this is how much I use from the account to open the trades, but I’m not risking that much. I am not risking 10%, I’m risking a much lower amount. Because the risk is how much you are able to lose. How much the Stop Loss is.
And if you go through the Expert Advisors when you are learning them and doing your fx training, you will see that each Expert Advisor has a Stop Loss lower than 100 pips. In this case, for the USDJPY, for example, we have 70 pips.
USDJPY has Stop Loss of 70 pips
And actually, looking at my account history, I don’t have a loss bigger than $100. All of them are less.
So what I wanted to say is that if you have all Expert Advisors opening trades and they all hit the Stop Loss, this is like the worst-case scenario, you will have a loss lower than 10%. That is something that every FX training education must teach you.
Because it will be 10% if all of them have $100 of a loss with 0.1. With 0.1, if you have 100 pips of a Stop Loss, this will be approximately $100. But, one more time, because all of the strategies have Stop Loss smaller than 100 pips, it is less than $100, and it’s much less than 10% if you combine them all. I will leave that to you.
The worst-case scenario matters
And this is like the worst-case scenario, one more time, if all the Expert Advisors open trades and if all of them hit the Stop Loss. Now, from my experience, this will happen very rarely. It’s not something that happens every day, every week or even every month.
But, one more time, I wanted to say that this is smart money management because I’m never risking more than 10% of my account. So I will just summarize it one more time. If I trade with a $10,000 account, I would be trading with 0.1. So if you are trading with $1,000 of account you can trade with 0.01. And if all of the trades open positions, I will use 10% from the account which will be about $1,000 in this case.
But the worst-case scenario when all the trades hit the Stop Loss which, one more time, is very rare or it might never happen to you, not while fx training and not while real trading.
It will be even lower than 10% because all the Stop Loss are below 100 pips. I hope that’s clear now. And I don’t want to show you how much is the total Stop Loss now because it will change when you’re taking the course.
Test on a Demo account while you are doing your FX Training
So I really hope that makes it clear about the money management, about how much is blocked from the account, and what is the worst-case scenario.
This is something you need to know at all times when you are trading. And the best thing to do is to test it first on a virtual account. Just practice on a virtual account. If you’re planning to open a real account with $1,000 then open a Demo account with $1,000, test the Expert Advisors for a week to 1 month, 2 months, 3 months, depends on how much time you need to test the Expert Advisors for yourself just to be confident with the results.
And don’t hurry to risk real money until you are confident with the strategies. Spend more time on FX training until you are ready. It doesn’t matter if you are trading manually with the strategies, it doesn’t matter if you’re trading automatically,
With the Expert Advisors, the most important thing is to be comfortable trading with them, to be convenient in the strategies. And this is the only time when you should be risking real money.
And, one more time, don’t hurry with that. I know a lot of people want to make profits quickly but it doesn’t really work this way. You need to test for a longer time, practice, and see how it goes.
Conclusion
Alright, traders, in this lecture, I wanted to talk about money management because this is very important especially if you are a beginner trader. And when taking your FX training you need to pay attention to that.
Because having smart money management will keep you longer on the market and most of the beginner traders blow their accounts because exactly of not having good money management. And this is what I want you to remember from this lecture.
Let me know if you have any questions. Share with me in the comments below what are your thoughts about Forex money management. What you’re using at the moment, so we can discuss it and see if that is the right one for you or you can improve it more. I will see you in another lecture, guys. Take care.
Crypto Exchange vs Crypto Broker – What Should You Know
Hello everyone, today we will talk about the difference between the cryptocurrency exchange and the crypto broker. Moreover, we will tell you when it’s best to trade on the crypto exchange and when you should go with the cryptocurrency broker.
Side note. Consider visiting our YouTube channel where we discuss crypto trading strategies, ideas, tips, reviews about platforms, brokers, individual cryptos, wallets, anything. We want to improve the experience of our followers because we have a lot of experience and we’re very happy to share it with our students, traders, and followers. So even when traveling, we record some videos.
“Should I trade on the crypto exchange or should I trade with the crypto broker?”
This is one of the most commonly asked questions that we received during the years. Doubt is over after the 2020 crises. Many traders profit when using the crypto brokers and many lose when using the crypto exchanges.
The recent days proved why with the cryptocurrency brokers are so much better than the exchanges. Unfortunately, millions of people lost so much money in the exchanges.
There are many scam brokers and many people are being scammed daily. If you want to know how to avoid the scam brokers, please, read the topic that we have in the forum, How to recognize the Scam Brokers. And of course, we always assist our students to choose the good and proper broker for trading.
The Difference Between Crypto Exchange & Crypto Broker
When we use cryptocurrency brokers, we can sell and take the profits when the price gets lower. Something that is not available on the exchanges. In other words, on the exchanges, you can trade only in one direction – up. In trading, we can buy and sell – double opportunities. With the brokers, we execute the trades immediately, no time to wait. Also, when we close the position we close it at the moment. On the exchanges, you can not do it so quickly.
When you want to keep your crypto coins for a longer time, you need to go for the crypto exchange. If you want to speculate and buy and sell quickly, for example, buy in the morning and selling the afternoon if there is movement then you need to go for the Forex broker.
Brokers that offer crypto trading have started with Forex trading
Why do we say Forex broker?
Because the brokers that offer crypto trading nowadays, all have started with Forex trading. Most of the brokers are Forex brokers because their main business was the Forex before the crypto came out.
So what is the difference and why we say that if you want to keep your coins longer you go for Coinbase, Binance, or any other crypto exchange?
The difference is that on the crypto exchange when you buy coins, you actually get the coin. You get the token. You get the chance to put this token or coin in your wallet. And you don’t have any fees for holding them in your wallet, you can hold them for months and years, nobody will charge you for that.
Swap Fee
With the crypto broker, if you buy Bitcoin, for example, you will be charged every night a small fee called swap. And this is a very small fee compared to the fee you pay on the crypto exchange when you initially purchase.
On the exchanges we do not pay spread and swap, which are the huge costs of the brokers. There are some brokers that are trading at 0.01 cent, which partially solves that problem.
Visit our crypto exchanges list if you are Interested to see some of the crypto exchanges that we use at the Academy.
Let’s take one Bitcoin, for example. If we buy one Bitcoin, we pay at the moment (in December 2020) about €300 as a fee on the Coinbase crypto exchange for a complete Bitcoin. While with the Forex broker, we will pay just the spread. With the different brokers it’s different, but let’s say it’s somewhere between $10 and $30.
Do you see the difference? Crypto exchange €300, crypto broker $20 average. It’s a huge difference. But what happens here with the crypto broker is that if we keep our Bitcoin overnight, we will pay somewhere between $6 and $10 as a fee. So every night $6, $6, $6, $6, $6. If we keep the Bitcoin long enough, it will get more expensive compared to the Coinbase crypto exchange.
The Crypto Broker Enables Trading With Robots
We use the crypto broker for automated trading where we trade with Expert Advisors (EAs) on MetaTrader and this is because the EAs are buying and selling daily.
The Expert Advisor is an automated robot that trades on your behalf, even you are not in front of the screen. This means that with exchanges you are stick on the screen if you want to trade.
This is how the platform MetaTrader looks like
So some of the Robots will buy in the morning. Then they will sell in the evening or in a few hours time. Others will just hold the trade for a few days and they will sell it. That is why we keep the low fee here.
With the crypto brokers, you can also trade with many Expert Advisors. Something not possible with the crypto exchanges. On the Coinbase crypto exchange, or on the other cryptocurrency exchanges we cannot trade with robots so that’s one of the differences. If you trade with crypto brokers, you can trade with robots.
That’s what we do. And if you buy coins on the crypto exchange, you cannot do automated trading.
Ready to master Bitcoin algorithmic trading?
In our Bitcoin Algorithmic Trading + 99 Expert Advisors course, we show the whole process of creating, selecting and trading with 99 Expert Advisors in the same account. Enroll now and start your journey to becoming an expert in algorithmic trading!
The other difference is that with the crypto brokers you don’t physically buy and this is something that many beginners don’t understand. When you trade on the crypto broker platform, you don’t physically buy the asset.
Especially for the cryptos, it’s very hard to say it physically. But let’s call it physically because we can still put actual cryptos in a Ledger or other device, for example.
When you trade with crypto broker platform you don’t physically buy the asset
Ledger is a hardware wallet for cryptos that we use and it’s a very secured one. So on the crypto broker, what we have is not actual coins that we buy and sell.
CFD or The Contract for Difference at The Crypto Broker
At the crypto broker, we trade CFD contracts, which is called so because it stands for Contract For Difference. Contract For Difference means that every time we buy a Bitcoin, we make a contract with the broker that if the price goes up, we will benefit from that difference. If the price goes down, we will lose that difference. This is called CFD trading.
So we don’t actually purchase Bitcoin or any other coins with the crypto broker, we don’t purchase EUR, we don’t purchase gold. It’s CFD trading.
At the crypto broker we do CFD trading
And this is a very popular method of trading and especially for Bitcoin.
After that in 2018 was the best time to use crypto brokers. You know why? Because the Bitcoin was crashing. It was just that stone falling down and with the crypto brokers, you have the option to sell even if you haven’t bought it previously.
So how it works? We fund an account with the crypto broker. For example, we funded a $10,000 account and we can use these $10,000 to sell something on there, the Bitcoin. Remember, we’re talking about Bitcoin in 2018. And we can benefit from the difference if the price falls.
So if the price falls from $10,000 to $6,000, if we sell on $10,000, we will benefit from this difference of $4,000. Even if we didn’t buy anything previously, even if we didn’t have any coins previously.
Last but not least, with CFD cryptocurrency trading brokers, you can trade with an expert advisor, which is not possible to be used over the exchanges.
Different Trading Methods
That’s the difference between trading CFD and when trading on the cryptos. So which method we would suggest to you? Depends on what you want to do, we do both.
On the crypto exchange, you invest in cryptocurrencies. You buy and hold them for a longer time. With the crypto broker, you trade personally with Robots – you are buying and selling daily, and you pay much lower fees.
And, one more time, on the crypto brokers that offer the MetaTrader platform, it is allowed to do automated trading with the Robots. For the Bitcoin.
So one of the disadvantages of crypto brokers is that they don’t offer a lot of assets. Usually, they have just Bitcoin, Ethereum, Litecoin, and Ripple. That’s what we’ve seen with most of the crypto brokers. While on the crypto exchange you can buy many cryptocurrencies.
It’s a matter of time until the crypto brokers start offering more cryptos on MetaTrader that we can trade with Robots or manually.
FCA Regulated Cryptocurrency Brokers
With the cryptocurrency trading brokers, it was possible to do leveraged trading. This gave the opportunity to traders with small trading accounts to trade bigger positions.
But something interesting we learned a few days ago is actually that the FCA regulated brokers are going to remove CFD trading from MetaTrader which was quite surprising. We still don’t know why they took that action.
Even they lowered since 2018, there was the ISMA restriction that lowered the leverage to 1 to 2 for cryptos in Europe which is 1 to 2. Traders were used to 1 to 100, 1 to 200-500, and they lowered to 1 to 2 which means that we really need a lot of capital to trade Bitcoin with a crypto broker.
And now, they just ask all the FCA-regulated crypto brokers to remove coins from their platforms. So we guess the only solution will be to trade with non-FCA regulated crypto brokers which is something we personally don’t want to do.
But from January 2021, this may be the only way to go for algorithmic trading with Bitcoin. Non-FCA regulated crypto brokers and MetaTrader.
Non-FCA Regulated Crypto Brokers
Still, there are other regulations, of course, but FCA for the moment is like the strictest regulation for the Forex & crypto brokers. And if you’re using a crypto broker with MetaTrader, make sure it’s regulated. That’s super important, Make sure to have FCA, Sysec, in every region, it’s a different regulator.
Due to the huge number of people enrolling in the exchanges, some of those, have closed doors and even is someone succeeds to register, it will take another week or two for the verification. So this way, even you want to join cryptocurrency trading on the exchanges you will miss the movements in these two weeks.
But what will happen if one broker closes doors and there is not even one regulator or organization staying behind? If that happens with a regulated broker, in each country there are different terms for deposit guaranteed, normally they are somewhere around 20 000 EUR.
For the FCA regulated brokers, the deposits are guaranteed by the Financial Services Compensation Scheme for 50k GBP.
With some crypto exchanges there are limitations on the withdraws (recently 1-2 Bitcoins per day with some), with the crypto broker, you can take out your money at any moment (of course the regulated brokers). So make sure you check which is the regulator for your country and choose a regulated broker. Same with the crypto exchange. Coinbase is a regulated and licensed cryptocurrency exchange, for example. That’s why we initially started using it and we saw it’s super friendly and super easy.
Due to the huge number of people enrolling in the exchanges, some of those, have closed doors and even is someone succeeds to register, it will take another week or two for the verification. With the cryptocurrency brokers, this is possible within the same working day. So this way, even you want to join cryptocurrency trading on the exchanges you will miss the movements in these two weeks.
So these are the major differences between crypto exchange and the crypto broker. If you have any questions, drop them in the comments below. See you in the next lecture.
Early in February Elon Musk announced that Tesla buys Bitcoin for $1.5 billion and this really affected the cryptocurrency market. In this article I will share with you what was the effect, when did Tesla buy Bitcoin actually and what will be my next target.
When did Tesla buy Bitcoin?
I have hundreds of videos on YouTube, and I’ve never afforded to say I told you so, but now I can say it, I told you so. In a video that I recorded on the last day of 2020, what happened actually, is that the price of Bitcoin reached my target of $48,105 perfectly.
My target was hit perfectly
This is after Tesla and Elon Musk announced the buying of $1.5 billion worth of Bitcoin.
The Tesla and Elon Musk announcement
In the video, I said, ‘Today is actually already 31st of December, I’m recording 3 minutes after midnight.’ And at the end of the video, I placed the 2 targets. These are $35,918, as the first Fibonacci target and the 2nd one at $48,105. At the end of the video, I said something very important as well.
‘Below the $50,000, I’ll be very happy to sell any of my cryptos.’ So the target was reached much earlier, honestly, than I thought. It was reached on the 9th of February 2021. I was thinking more of March or April but as I’ve said, Elon Musk and Tesla’s announcements that they buy Bitcoin in January were the reasons why it got that value so quickly. In this lecture, I want to talk a little bit more about it.
PayPal offers cryptocurrencies to its clients
And I will share with you what I personally think happened because that news on CNBC which was all over the place, was on the 8th of February. When Tesla announced that they have bought $1.5 billion of Bitcoin and they said that they have bought it on Monday.
And actually, the 8th of February was Monday. So it means that they bought it the previous Monday, which was the 1st of February. However, Elon Musk tweeted a few days earlier on the 29th of January.
The series of events
He didn’t even tweet, what he did was he wrote #Bitcoin on his profile which caused that move of almost $4,000 in 1 hour.
Elon Musk wrote #Bitcoin on his Twitter account
So this is the moment when he wrote the hashtag. And later they announced that on Monday they have bought Bitcoin.
So I don’t personally believe, and I don’t think anybody would believe that Elon Musk will put the hashtag before he or Tesla buys the Bitcoin. He is smart enough to buy Bitcoin much before he placed the hashtag. Or he announced that Tesla bought $1.5 billion. I truly believe that he has bought way far below the $20,000 or even the $15,000 after PayPal announced that they will offer cryptocurrencies to their clients.
My next target
Actually, I’m not sure if you know but PayPal was Elon Musk’s product that he sold many years ago.
PayPal was Elon Musk’s product before he sold it
And what I think is that he just waited for the moment to make the announcement, or to put the hashtag, or to support Bitcoin in any way.
I have cleared the trading chart from all my drawings and entries that I had so you can see exactly where were the announcements that Tesla buys Bitcoin.
The announcements
So I have kept just the target which worked really nice one more time.
And at the end of the lecture, I will be putting the next target. So you will see what are my next targets.
But what’s more important here, and you need to keep in mind that this will be a domino effect. Because of the news where Tesla buys in Bitcoin for $1.5 billion, they already affected the market. So the important thing is what will happen from now on.
I truly believe that this will be a domino effect and all the investors will be more willing to diversify their portfolios including Bitcoin. And at the same time, imagine you’re an investor. And you use John’s fund and John is a hedge fund that follows the old rules. They don’t trade the cryptos, they are happy if they offer you 10-15% a year.
Setting my Fibonacci target
And then, you will say to John, to your hedge fund manager, ‘Hey John, why are we not participating in the Bitcoin-like what Elon Musk does?’ Why are we not taking these profits while everyone else is already into Bitcoin? So the hedge funds managers will be squeezed from the investors to buy Bitcoins and to be involved like Tesla.
Because obviously as you know what happened, some of the hedge funds, already gained over 100% for a few months. Something that has never happened before with any investment. And I have mentioned that in a few of my videos, I’m not going to link them now. But I’ve said that in 2020 and 2021, the difference is that the big guys, the big investors, and the big companies like Mastercard, Square, and Tesla buy the Bitcoin and the cryptos, not like the mass of people in 2017.
This is why I have been participating more and more in the crypto market. And I’m truly happy that the Fibonacci target and the system that I have explained in my Cryptocurrency Investment Strategy course work so well.
So now let me put the next Fibonacci, I will demonstrate to you how it works and you will know what to expect as the next target for Bitcoin price.
The Candlestick
I will take the new high and I will go to the lowest point of the retracement after the last Fibonacci. So that was the top of the last Fibonacci, and we have the lowest point. Now it’s very important to draw it precisely, so I will just zoom down to the Candlestick which was the lowest point. On the top, the lowest price is $25,770.
So click on the Fib and I will put a price of $25,770. And I will click on OK, and it’s exactly in there.
The lowest point of the new Fibonacci
Then I will go to the top and I will do the very same thing. Let me see what is the record high that we have with Bitcoin for the moment. I will zoom in, that’s why I cleared the chart from all the drawings. I do that from time to time, to make sure that I have a plain chart.
That way, it’s easier to see what’s going on. The highest point is at $48,216.09. So I will click again on settings and will put the right value so I set $48,216. So I didn’t put the target before writing this article, and it’s interesting for me as well to see where will be the next targets. Obviously, they will be far away above the $50,000.
Price breakthrough
So first target is at $62,877.7.
The first target
And then we have the second target at $84,533.86.
The second target
So keep in mind that we have the round of $50,000, which definitely will be resistance.
And it might take some time for the price to breakthrough. That’s why I said I’ll be happy selling some of my Bitcoin, and I have sold actually about 30%. So now I’m waiting for a nice retracement.
We already have a counter-trendline but if we have a better opportunity to buy at a cheaper price, that would be even better. And then I’ll be definitely looking at these next targets because if the $50,000 breaks, I truly believe that the price will easily reach the $62,000. And then that’s the one I’ll be looking at, $84,533.86. So we’ll see if or when the price gets into there.
Keep an eye on Elon Musk’s Twitter profile, because sometimes you might find the reason why there are such moves on the market especially with Bitcoin and the cryptos. And as well keep an eye on Ethereum because it has a huge potential, as I’ve mentioned in a few of our YuuTube videos as well. So I diversify between Bitcoin and Ethereum right now.
Thank you for reading this article. I hope this makes it clear how to news that Tesla buys Bitcoin affected the market. If you want to get some free cryptos, check out the link below the video. And share in the comments what are your targets and if you agree with mine or not. Take care and I will see you in another lecture.
Dear traders, in this lecture I will show you how backtesting works in EA Studio trading strategy builder compared to MetaTrader. I see already that I have the 1st trade opened with Ethereum and it happened on the opening of the new bar. The trade opened exactly at the round number,
The trade opened exactly at the round number
after we had the cross from the Williams’ Percent Range.
The cross from the Willams’ Percent Range
So the cross happened during this bar, the previous one.
The bar during which the cross happened
And then when the new one was open, the cross is confirmed and the trade was opened automatically. The Stop Loss is placed and the Take Profit is somewhere below. Right over here.
The Take Profit
I have left some lines from the explanations that I did for this strategy. So you see that the trades opened automatically with the Expert Advisors.
I don’t really need to do anything. And while I’m waiting for more results and from more trades, I will explain to you, how I created these strategies, how I tested them, and how I know what parameters to use at any moment for the different Indicators inside the strategies.
What I use is EA Studio trading strategy builder, and this is a web-based program or software for algorithmic trading, which allows the traders to do many things.
You need no coding skills
Simply, we can generate strategies, after we generate them they go to the Collection, then we can see individually each strategy in the strategy Editor. And here I have the strategy for Ethereum.
The strategy for Ethereum
So it is the very same strategy. You can see that the long entry or the entry condition is the Williams’ Percent Range crosses the level line upward and then we have the exit condition, which is the DeMarker. Here are the parameters.
The DeMarker parameters
The Stop Loss and the Take Profit.
The strategy properties
The best thing with trading strategy builders is that with one click, we can export these strategies as Expert Advisors. We don’t need to have any programming skills and we don’t need to code it.
We can export these strategies as Expert Advisors with one click
As well, we see immediate backtest or see how the strategy performed during the testing period.
We see the backtest immediately
So, for example, if I change any of the values, let’s say I change Period 40 and I click on, accept you will see there was a difference in the balance chart. Let me go back to 38 and I see there is a difference as well. If I change the Stop Loss, let’s say I will change it to 15 instead of 13, there’s a difference. And if I go back to 13 again, I see the difference.
The Indicator chart and the Journal in EA Studio trading strategy builder
So this way I can build strategies and automate them very easily. And in the same time, I see their performance and the Indicator chart, which means that I have a very clear understanding of where the trades were opened and closed.
The Indicator chart in EA Studio
Something that is much harder with MetaTrader. If I just go manually, as you saw, it is hard to find examples because if I take an example to backtest the strategy over the chart I don’t know if at that moment there was a previous signal.
For example, there are so many entries. And which one is the correct one? If I have entered, is the trade closed? It’s really hard and you should start from the beginning trade after trade. So you can take it as an example. And with the trading strategy builder, it is so easy to see because there is a visual representation of the trades where they opened and where they closed.
For example, I can see there’s a short trade, but the Stop Loss was hit. So that’s a negative trade. We have a positive one. The trade opened and the Take Profit was hit. So it’s because of the Williams’ Percent Range crossing downwards. And the Indicator chart is very useful to understand exactly how the strategy works. As well, we have the journal where we see all trades that opened and closed.
The Journal in in EA Studio trading strategy builder
The balance chart in the trading strategy builder
We have the balance chart where we see exactly the equity line and some more statistics as drawdown in currency in percentage, long balance, short balance and so on.
The balance chart
Now, let me go back to the editor. I will import an Expert Advisor back.
I click on Import an Expert Advisor back
Let me take any of the Bitcoin strategies, and I click on Open.
I take one of the Bitcoin strategies
And below is, for example, the Candle Color strategy. If I click on it, you will see that I have the minimum body height, consecutive candles.
The Candle Color strategy
So let’s change it to 3 and see what’s the difference. Instead of 4 consecutive candles, let’s say that we want to open the trade after 3 consecutive candles. And you see what a difference we have in the balance chart.
The difference in the balance chart
And if I increase it to 5, I click on accept. Oh, still good strategy. It does 17 920.
Let me just go back to 4 and I click on accept, 23 630, and this is with starting balance of 10 000. So obviously in this case 4 works best and, you see how quickly I can do that test and there are a lot of tests that are available with the trading strategy builder, for example, the Monte Carlo, which is a great robust tool.
Make use of the 15 days free trial for the trading strategy builder EA Studio
So if I perform one, I can see if the strategy is profitable with randomize Indicator parameters or with different backtest starting bar, which is important. Or in simple words, this is how the strategy would perform if we started at a different moment or a different date.
The Monte Carlo
And that’s an important test because obviously I just started trading with this Expert Advisor in the account. I traded it previously on another account. You will be trading it at a future moment. So this test just proves that the strategy is still profitable no matter when we start using it. And there are plenty of similar tests on the trading strategy builder. They’re not going to explain right now on the home page.
There is a free course if you want to learn more about the trading strategy builder. And there is actually 15 days free trial, which you can use if you want to create your own strategies or just start from scratch. If you go to a new strategy and start adding different Indicators, for example, the MACD and I click on accept you will see that it shows the balance line, which obviously is losing just 1 Indicator that I picked randomly.
You can export your strategy as an Expert Advisor
Then I can add any Indicator as an exit. There is already a more decent balance chart which is still losing. This is how you can build your strategy. If you like it, you can export it as an Expert Advisor for MetaTrader4 or for MetaTrader5. And depending on which platform you are using, MT4 or MT5, you have the ready Expert Advisor with the code, everything inside. One click export.
The strategy code
So this is really the revolutionary thing in algorithmic trading in the last decade that we have these trading strategy builders. And it’s so much easier for me as a trader because before I used to hire developers to code the strategies for me and it was very expensive. These guys charge like $30 to $40 per hour and it takes them many hours to code such a strategy. And there are mistakes.
So I had to test these strategies, then give them back to them and they fix it and send it back. You can imagine this is just 1 version of the strategy. If I have to change anything, I send it again to the developer to add another rule, for example, another Indicator. And it was so exhausting and so expensive to do that. And honestly, with not very good results. But with the trading strategy builder, we can easily build strategies that are profitable for the testing period.
Find the new parameters attached to each of the lectures
So for example, I am testing it since 2017 until the month. 3 years is more than enough for me. Some people prefer to test for 5 or even 10 years and the market was so different 2-3 years ago, even 5, especially for the Bitcoin. As you know, it was totally different in 2017, 2018, 2019. So you don’t really need to test that so far away, back in time when the market was different. You need to make sure that the strategies work recently for the recent market conditions.
And this is one more time my job if I open any other of the strategy. So this is the EnDe Expert Advisor, as I call it, because it uses the Envelopes and the DeMarker. I have a very stable, balanced chart which shows that the strategy is actually profiting recently. I do my best to observe the strategies to follow their performance. And if I have to change any of the parameters, I do it.
I changed the parameters of the strategies which you can find one more time attached to each of the lectures. There, you will see what parameters I use for these 5 strategies all the time. And this way you will know that you have strategies that are working for the current market conditions. So this is the trading strategy builder EA Studio that I’ve been using.
The EA Studio strategy builder
It’s available not only on our website at EA Forex Academy but on many other websites. It’s professional software that we have on our website at the EA Forex Academy. You can find it right over here.
EA Studio on our website
It’s integrated on the website. And as I’ve said, you can test it out with the free trial if you want.
Make use of the free trial
And there is a free course and a free Start-Up Guide, which will help you learn all the features that are inside the trading strategy builder.
In the next lecture, I will show you how you can do a backtest on the MetaTrader for the strategies, which is very recommendable to do before actual trading with the strategies for your broker.
Thanks for reading. I will see you right in the next lecture.
As you already know, in our blog we share our experience, trading strategies, and many Forex trading basics tips.
In this lecture, I will cover some of the basic Forex terminologies. Moreover, I will share some tips that will help you to get started with Forex trading if you are a complete beginner.
These Forex basics tips might be very useful to some of you as this way you won’t repeat the common mistakes that most beginner traders do.
Forex Basics: Choosing a Broker
So the first step you take, even before you start trading, is to choose a broker.
For the beginners who aren’t familiar with the basics of Forex trading, the brokers are the companies that provide access to the trading platforms.
We use them to participate in the market. How usually does it go? You choose a broker and fund your trading account.
You open an account, you fund it, for example with $1,000. And then you use this amount of money to trade, to buy different assets, to sell, and so on.
Scam Brokers
One of the major problems in the trading industry at the moment is the scam brokers.
As you may know, I’m originally from Bulgaria. And unfortunately, Bulgaria is the spot where there are hundreds of scam brokers located. They don’t work just with Bulgarian clients. Actually, they don’t accept Bulgarian clients as well, at all. But Bulgaria is the place where they found it easiest in Europe to locate their offices.
There are hundreds of scam brokers. And it’s very hard for beginners to recognize when a broker is a scam until they lose their money.
What these brokers do usually is to find the so-called leads. These are the contacts they gather, usually from online ads. It could be a fancy YouTube video where traders are showing off with jet planes and expensive cars. They tell you that you can earn the same money very quickly.
Scam brokers will ask you to deposit even through the phone
And you just register, you leave your email, phone, and immediately you will receive a call from the experienced trader who will sell you anything very well. And they will ask you to deposit even through the phone, to give your credit card details over the phone to fund your account, and unfortunately, you will never see your money again.
There are thousands of people scammed daily.
Go For a Regulated Broker
Forex trading basics Rule #1 – go for a regulated broker.
We had so many people in the Academy coming after they were scammed, but unfortunately, we cannot help with anything.
Don’t ask us for that. There are some institutions that help scammed people from brokers, not sure. At the same time, there are scam companies that are helping you to get rid of the scam and to get your money back. So they will make more money from you promising they will give back your money from some scam broker.
It’s a really bad practice, and I hope you’re reading this Forex trading basics lecture before you experience such a scam broker.
Trusted Brokers
To make iteasier for our students, we have created a trusted brokers page. If you visit our website and you click on the Brokers section, you will see trusted brokers that I’ve been using personally.
We are testing different brokers all the time. And we are looking for the regulations, this is very important.
So, for example, in Europe, it’s a very strong regulation to have FCA, which is in the UK actually, the Financial Conduct Authority. In addition, we have CYSEC in Cyprus, and there are different regulators around the world.
There are different regulators in the United States, there are different regulators in Asia, in Africa. And actually, the scam brokers usually do not mess with the US. This is the only country they avoid for some reason.
Understanding Forex Trading Live Account & Demo Account
So you choose a regulated broker, this is the number one thing.
And then you have 2 options. To open a Demo account, or you can open a live account. The Demo account is a virtual account and if you’re a beginner, I would suggest you go for it to get familiar with Forex trading basics. Moreover, there, you have no limitation with the starting amount.
With most of the brokers, you can open a Demo account with $1,000, with $15,000, with $50, $100,000, anything. I would suggest you choose an amount that will be similar to the amount you would be investing or when you open a live account. If you are planning to open a live account with $1,000, then go for a Demo account with $1,000.
This way, you will see realistically what are the risks, how much you can achieve. And, for example, many people want to start trading with $200 which is absolutely fine. If you can afford that much, of course, you will be starting with that much.
But don’t expect from $200 to make $1,000 at the end of the month. This will be unrealistic to have 500% of a profit. I don’t say it’s not possible, I say it’s not realistic to have it as a constant result.
So start with a small amount that you feel comfortable with and you are not risking a lot. Basically, this should be an amount of money that you are capable of losing.
And before you open the account, keep in mind to choose good leverage or appropriate leverage for your trading.
Forex Basics: Leverage in Trading
Now, what is the leverage?
This is the amount of money that the brokers will give you. To trade with as an extra. Or if I will try to explain it in simple words, this is the money that the broker will borrow to you.
For example, if you use leverage 1 to 100, this means that if you fund an account with $1,000, you will be able to trade with $100,000.
And if you put all of your money into a single trade, of course, you can do a huge profit. But at the same time, you can blow your account immediately.
So this is where money management is crucial, and you should never trade with all of your money. Especially if you are not familiar with Forex basics and you are trading with huge leverage.
Leverage Restrictions
And for the beginners who are still getting a better understanding of Forex trading, the leverage, the money the broker borrows you is not a loan. You’re not supposed to give that money back to the broker.
This is just a financial practice and it’s not only with the Forex trading leverages, it’s used in many different fields. But with the Forex trading, it works that way. And, for example, in 2018, in Europe, we accepted the ESMA restrictions where now in Europe, we are limited with the leverage.
For example, with Cryptocurrencies, we have a maximum of 1 to 2 leverage. This means that if I have $10,000 in the trading account, the maximum I can trade with is $20,000 which is a very huge limitation compared to what I was used to and many of our traders in Europe. But that’s it.
These are the regulations and obviously, we have to follow them. And in different countries it’s different. And, of course, if you see leverage 1 to 2000, for example, I have seen such brokers, pay attention that this could be a scam broker.
Basic Forex Trading Strategies
Now, the next thing when you open an account and you choose your broker, you open an account, you set up, you install the platform, is to have a trading strategy.
Now, there are so many strategies. The first thing is it’s important to use a strategy. You cannot just buy and sell randomly by looking at the chart especially if you don’t have experience. You will end up losing money.
From where to get a strategy? I can talk a lot about that.
Many people sell unproven trading strategies
Definitely, YouTube is a fantastic place from where you can find free video tutorials on Forex trading and get some free strategies. And personally, I have uploaded many free videos with strategies on YouTube. Moreover, we have a separate category with articles about trading strategies in our blog.
Forex Basics Courses in the Academy
Why do we do that?
We do a lot of things in the Academy. We do paid courses, we have free courses. And usually, with the paid courses, we upload some of the videos as free lectures on YouTube so the students and the traders can see what this course is about or what we cover, what type of strategies.
And, for example, I have a few courses where I show 5 strategies. I have one course for Forex, I have one for crypto where I show 5 strategies, how to be executed manually and how to trade them automatically.
So what I would normally do, I will just upload one of the strategies free on YouTube so everyone who wants to use it, it’s OK to use it. And at the same time, if you like it, then you might be interested to buy the complete course and access the other 4 strategies. This is how personally we do it.
Now, most of the traders that are profitable are not likely to share their strategies for free as I do. That’s a personal choice. You cannot blame them as well at the same time, because they spend a lot of time creating the strategies, testing them, and there is this kind of, you know, a selfish approach that the traders don’t want to share their strategies. Or they may charge you a lot of money to give you their strategies.
YouTube Video Tutorials on Forex Trading
So YouTube is a place where you can find great video tutorials on Forex trading and I think great strategies. But, of course, most of them are for promotional purposes. And three, I would not suggest you go for strategies that are from the broker.
Most of the brokers have education on their websites. They will say this is what you need to do.
The regulated brokers don’t give promises. They just walk you through some basic education that is not enough. If the broker gives you promises, again, that’s a sign that this is a scam broker.
But if you see the Forex basics education of the brokers and you test it and you go for it on your live account or even a Demo account, you will see that 99% of the time, you will be losing.
The Market Maker Broker
The brokers do not want you to make profits, keep that in mind. It doesn’t matter if it is a scam or a regulated broker. They don’t want the clients to make money and especially if they are market makers.
So what is the market maker broker?
This is where all the funds and the transactions stay within the broker.
So I open an account with broker A, for example, if that broker is not a market maker, what they will do, they will transfer all the positions to a bigger broker.
Then some of the brokers are just transferring some of the positions to other brokers and they usually benefit from the spread. And for the beginners, the spread is the difference between the Buy and the Sell price or the Bid and the Ask price. When we buy an asset, we buy it on the Ask price, when we sell, we sell it on the Bid price.
Or if you buy EURUSD, you will be paying a little bit more expensive price from the 2 prices that you see and when you close the position, you are closing it at the lowest price. This is the spread. This is where the broker benefits. But if the broker is a market maker, they will be happy if you lose your money. Because the money will stay with them.
Do not go for education from the brokers
So I would strongly suggest not to go for the education from the brokers. You can read it as a resource, you know, just to learn the Forex basics terminologies, I’m explaining some of them in this video.
But if you want really a profitable strategy, then you should be taking it more seriously.
It should be a trusted resource and usually, what is considered as a trusted resource is if the trader is actually showing live trading. This is what I do in most of my courses or I can say all of my courses.
I demonstrate trading with the strategies, I share my screen, and I show realistic results, I always show losses as well because, with every strategy, there are losses, there are profits.
There is no perfect strategy
And I want everyone who takes a course of mine or a strategy or a Robot to keep in mind that there are losses and I just show it so the people will decide. Are they willing to take the risk to have losses? Or are they going to look for a strategy that will have no losses?
There are no strategies, guys, that will have no losses. Every strategy at one moment will bring you losses. There is no perfect strategy that will bring you only profits, keep that in mind.
The Never Losing Formula
The best that I show, for example, is the never losing formula which I called for the cryptos and it was popular much, it’s popular in the Forex market for many years.
But I just recalculated the formula for the cryptocurrencies so when you’re buying and you go on a loss, there is an option to hatch, to sell opposite with a bigger lot, and then if the price goes again, then we buy again and sell again and it’s a range in which we buy and sell until the price breaks and we exit always on a profit.
I show many examples I have updated recently because the course was launched back in 2017-18 when everybody was crazy about Bitcoin and I showed a system from where you can avoid the losses. And many of the traders ask me if this is still working. Yes, it is.
Many of the students are still using it. I get daily reports about that system because it’s a lot of people taking it and I’m still using it as well when I’m in front of the computer. And I have recorded fresh examples as well.
Forex Trading Basics: The Signals
So, about the signals, the paid signals, this is what is very popular, I would suggest you stay away from signals. A few of the providers are realistic and these are usually the groups where professional traders stay between the signals and they provide signals.
Most of the people and most of the websites that are offering Forex signals are not scams, not all of them. But usually, what they do, they’re looking for monthly subscriptions. You subscribe and they give you some signals.
Usually, they use Expert Advisors, Robots that are not very profitable or they are profitable one month and the next they will be losing. And then you just test it for a few weeks, months, and then you quit.
And new people will come, new people will subscribe, and this is how they make money. From the volume of people subscribing to their signals and not from the trading itself.
And one thing to keep in mind, if you’re using signals, you will not learn anything because they will just send you an email, a pop-up on the phone or depends how they are doing it, what they’re using, and you will see buy EURUSD at $118.50, Stop Loss $118.30, Take Profit $118.90, for example. I’m just picking some numbers right now.
You don’t know why is that, what’s the reason, what’s the strategy behind it, what they have in mind. And at the end of the day, you will spend a few hundred dollars, maybe thousands, and you will not have sustainable results.
So better look for free strategies and video tutorials on Forex trading over YouTube. There are paid courses, of course, there are paid systems, Robots.
Internet Reviews
Nowadays, over the internet, there are so many reviews. If someone is a scammer, you will find immediately reviews about it.
Pay attention to the Robots and the providers of the systems to be trusted, to have good reviews.
And you will know if this is trusted or not. Just make research before you buy any trading system, strategy, or Robot.
Nowadays, it’s very easy to find out which are the scammers. The brokers, the traders, the people who are teaching, there is always a review if they do any bad practices.
The Bottom Line
These are the very important tips when you are starting and if you have any questions about it, let me know in the comments below. I’d be happy to answer. I will see you in another lecture.
Hello traders, in this lecture, I will teach you a Williams Percent Range strategy for Ethereum. This is one of the most profitable strategies I have been using so far. It is for the H1 chart and it is very easy to apply. So what I will do now is I will open one chart for Ethereum, right-click over it in the Market Watch, and I click on Chart Window.
I click on Chart Window
And again, I will use a template, black background,
I use my Black background template
so all of them will be similar and I will switch to 1-hour time frame.
I have called this strategy the Will Ethereum H1 because it uses the Williams’ Percent Range Indicator. I go to Oscillators and I click on the Williams’ Percent Range.
How to find Williams Percent Range Indicator
So for the period, I will be using 38, and I will have a level of negative 35. And then on the top, I will have obviously 65, as we said, the sum always to 100.
Williams Percent Range levels
And actually, in this case with the Williams’ Percent Range, they are negative. I click on OK and you will see it displayed below the chart.
Williams’ Percent Range displayed below the chart
As well, we have exit Indicator which is the DeMarker. I will go to Oscillators then DeMarker.
How to find the DeMarker
We have a period of 28, and we have Levels of 30 and we have level of 70. Here it is, 0.70, and I click on OK.
DeMarker levels
The exit indicator for the Williams Percent Range strategy
You will see the DeMarker below the chart. So the exit Indicator is that we want to see the DeMarker crossing the level line upwards.
The exit indicator
So before I share with you what is the Stop Loss and the Take Profit for the strategy, I just want to make sure that you understand the entry and the exit.
So, for example, right here you see that the Williams’ Percent Range crosses the level line upward and that’s an entry. Or at this moment, we Buy.
The entry
There is another entry right here. So if we took that trade, we would still be into the trade because the level line that the DeMarker must cross is the 0.30, not 0.70.
So in this case over here where you see the DeMarker crossing upwards, that is the exit for the long trade.
The exit for the long trade
But you can see that actually right here, the entry comes a little bit later.
The entry comes a little bit later
So let me look for some decent examples because the exit is when the DeMarker crosses the level line upwards. But it’s the 0.30 level, not the 0.70.
The entry for the Williams Percent Range Strategy
So I’ll just need to look for an example. So here I see that the Williams’ Percent Range crosses the level line upwards and I will put a horizontal line and a vertical line. Here is the cross on the opening of the next one, here it is. I will put a horizontal line which I will make green.
Since this is a long trade, here is the entry. Now what I see is that DeMarker crosses the 70. It goes down and when it crosses the 0.30 up. This is an example that I saw with the exit condition. So at that moment, we should be taking the profit because of the exit condition.
OK, the DeMarker goes up, down and when it goes up again and crosses the 0.30, we are taking the profit. In this case, we are losing a lot of the profit. But that’s just an example that I notice. However, let’s see if the Stop Loss or the Take Profit would be hit in this example.
The Stop Loss and Take Profit
So we have entry-level of 382.87 and the Take Profit for the strategy is 90 USD which would make it 472.87. That’s too high. 400. I will place it anyway. 472.87 I will leave it to 72. And then we have the Stop Loss, which is at 15 USD lower. So the entry is at 382.87 and 15 USD lower. I will change it to red and that would make it 367.87. I click on OK and you see.
Stop Loss and Take Profit
What happens, we have the Williams’ Percent Range crossing the level line upward. We Buy on the opening of the next candle and then the price goes up, down doesn’t reach the Stop Loss goes up again and it fails to take the Take Profit, which is higher. So with this strategy, we have a very good risk-reward, Stop Loss of 15 USD and Take Profit of 90 USD.
And after that, we must exit because of the DeMarker when it crosses the level line 30 upwards right over here. So, we still benefit in this case that would be a distance of 28 USD and 37 cents I think. So still a profitable trade. But it would be of course better if Take Profit was hit. However, I pick random examples from the chart so I will be able to show you different outcomes.
Negative trade
As I said, there will be always a different outcome on the market. And I would like to show you, as well some negative trades, I think we have one right here. The Williams’ Percent Range crosses the level line downwards. So first, it crosses it right here. Let me remove all of the lines, so you will not get confused. I will just show it quickly.
The Williams’ Percent Range crosses the level line downward, the -65, first time in here. Then it crosses a few times here and then here and here. It’s like 4 times right in this period. But I think no matter which one you take, it will end up on Loss because after that the price goes up and it will hit the Stop Loss. Even if we take the first one, which is at this bar, the price is 390.
We have a Stop Loss of 15, which will make it at 405. So right here we are taking the loss and it’s not reaching the Take Profit. And as well we need to see the DeMarker crossing the level line of 0.70 downwards. Right over here would be the exit.
The exit
So first, we have the Stop Loss. So that’s a negative trade. But you can see simply what happens. The price goes down and then it reverses.
We take the profit
And you should know that this happens on the market. But here I see a very nice example. We have the Williams’ Percent Range crossing the level line upwards. Here it is. We Buy at the opening of next bar. So the cross is at that moment. And then on the opening of the next one, we take the trades, here it is, let me put very quickly just the entry and I will not put the Take Profit and the Stop Loss.
You will see why it’s not needed. I will switch it just quickly to green color. So here is the entry. I will put it just precisely on the opening of the bar.
The opening of the bar
So you see what happens, the DeMarker goes up above the 70, goes down here, it touches it, it’s not really going under and then going above that would be an exit. So if I put the mouse, you will see that the value is 0.3002. Very close, but it’s not a cross.
We want to see the DeMarker going below the level then going up and that would be the exit. But in this case that didn’t happen. It happened right over here. So this is at the price of what is it right over here. The price is 388. Still, we are getting the profit. Here is the entry, the price goes up and here we are taking the profit at around 388.
Feel free to ask if you have any questions
So this is about 70 USD of a profit. But as we said, we have Take Profit of 90 USD, which means that if we enter at 318 + 90 USD, that would be 408.31, is it reached? These candlesticks here reach to if I put the mouse on the closing, you will see where they reach. They have a high of 406.
They have high of 406
So that’s one of the examples where we see the price getting very close to the Take Profit, but it doesn’t close there.
This is what I’ve said. If I’m in front of the computer and I see the price going very close to the Take Profit, I will just close the trade and take a little bit smaller profit. But there is always the risk, the price to reverse. However, in this case, we are still in the profit because of the exit condition of the DeMarker. So that’s quite an interesting and simple strategy for Ethereum with very good risk-reward. As I’ve said, Take Profit of 90 USD and Stop Loss of 15 USD.
If you have any questions about any of the strategies, don’t hesitate to ask me in the comments below. I will make it clearer to you and I will see you in the next lecture.
![Forex Money Management [Strategy & Plan]](https://api.algotradingspace.com/wp-content/uploads/2021/02/Forex-Money-Management-1.jpg)
