The crisis is spreading like a cancer and as the days pass it becomes increasingly difficult to abstract from it. By this time almost no profitable sector of the economy is immune to the effects of the financial debacle and even the wealthier segments of the population had to adjust their belts. The Foreign Exchange has been one of the exits all of those seeking to protect their investment have taken.
Investing in the Forex Market, as well as in the Stock Market, in times of crisis could be risky and good at the same time due to the high volatility in the markets which provides an extreme sensitivity to any asset. This could bring two possible consequences: being the market so sensitive to changes the first consequences is that people could lose large amounts of money in just one transaction, but looking at this from another angle, people could also win large amounts of money if they put their money in the right place at the right time.
But how could you know where and when to invest? Anyone who invests in foreign currency exchange should analyze what are the economies most affected by the global crisis, and from there, deduce which currencies could get devalued, and which could benefit from this situation. By doing this, people could get an idea of which are the best currency pairs to invest, taking into account all the market and broker’s parameters such as pips, spread rates and leverage, among others. Which leaves us only with the question: when to invest?. Knowing the exact time to make a transaction in the FX market is almost impossible, but following trends as well as the news of the countries involved is a really important step.
That’s the main idea of trading in the Forex Market in time of crisis, but going a little bit further, a good way to reduce the risk, when trading in these conditions, is to share the invest between a certain number of currency pairs instead of just focusing in one. This will increase the investor’s probabilities of generating profits in a transaction and will keep him away from losing time or/and money with just one currency trade. Trading with many different currencies is the best way to protect your investment, because there are lots of currency pairs and you can choose some of them, start trading, and if it doesn’t work for you, you can always rotate and trade with other currencies until you find the perfect pair for what you need.
Diversifying is the key and foreign exchange is a good option to allow such moves.
As a last option, or first for some people, you can always use Forex signals or robots, signals will give you tips about the currency pair and the time to trade leaving you with the final task of buying or selling according to the signal, while Forex robots will do all the job for you, you just have to adjust the robot’s parameters such as currency, take profit, stop loss, trade size, etc, and the robot will be 24/5 trading by itself without any of your help. The thing about these two options is that they need to be bought, but don’t worry they aren’t expensive.
Below is a link to the website’s of the best robot and signals I’ve found in the market until now:
The first question that pops up when talking about Forex Brokers is,
What is a Forex Broker?
A Forex Broker is an individual or company who buys or sells orders according the investor’s decisions, just like a Stock Broker, with the difference that the last one buy or sell stocks while the FX Broker does the trading with currencies. Brokers have to be associated with a bank or financial entity in order to provide sufficient funds to investors. In Short, brokers act as intermediaries in negotiating exchange of currencies, making all buy/sell transactions through the Forex Market.
Choosing a Forex Broker is probably the most important step when investing in the FX Market, this can make the difference between generating profits or not, and it could be a bit tedious. The reason of this, is that there are lots of Brokers offering different options and facilities to get people to invest with them. So, after encountering this important step, another question comes to mind:
How do I know which Forex Broker I have to choose?
There are many parameters that affect when the time has come to choose which broker is the best to invest with, based on what the investor needs. These parameters are:
Pip or Percentage in points: this represent the value of the last significant digit place in a currency quote, in other words, is the smallest amount by which the value of a currency can change. It’s generally the fourth decimal place. For example, the exchange rate of EUR/GBP is currently at 1.0095 and then the exchange rate changes to 1.0098, this means that pair did a 3 pips movement.
Spread Rate: this represents the difference between the bid price and the ask price, which is the cost of the trade, or the trader’s commission. For example, if the bid price of USD/CHF is 1.1270 and the ask price is 1.1273 then the pair has a spread of 3 pips.
Leverage: this represents the investment ratio to actual value. Leverage is also the use of debt to support an investment; it is used with the purpose of magnifying the potential positive or negative outcome. For example, a broker that offers a leverage of 200:1 means that for every dollar you invest you will have 200 dollars in Forex Market to trade.
Account size: this represent the minimum investment to create an account in a given broker. For example, a broker could offer a 500 USD$ mini account size. This means that the minimum investment for this broker is of 500 USD$.
Two last extra parameters that have to be taken into account area the reliability and transparency of the broker, meaning if the broker performs the asked tasks or trades and provides currencies information at right time with no delay.
So now, knowing the most important stuffs about brokers, the only thing left to do is practice. A very, very important, probably the most important of all things about Forex Brokers for me is,
Does this broker offers Demo Accounts?
This is probably the first question you have to do to yourself before hiring a broker. Even if you’re not a newbie, testing the parameters and options of a broker first is the most important thing to do. Not every broker suits well to your strategies and needs, and if you’re using Forex Robots, not every broker supports them and they don’t work at their best performance with all of them.
So if you’re planning to hire a broker and use a robot with it, here are the most common parameters you should be looking for (this parameters are optimized for FAP Turbo):
MetaTrader 4 platform capability.
Demo Account capability
Small minimum account sizes.
High leverage.
Spread rate:
- EUR/USD – 2 or 3 pips
- USD/CAD – from 3 to 5 pips
- EUR/CHF – from 3 to 5 pips
- GBP/CHF – 7 pips
- EUR/GBP – from 2 to 5 pips
To finish, I will leave a link to a website that has some of the best brokers and their information listed on it: Forex Brokers.
Want to take advantage of the financial crisis?
FAP Turbo works on two methods or strategies:
These strategies have their own designed timeframe and currencies which means that they were created to work with specific currency pairs and specific time to generate trades. Only one strategy can be used in a FX Market Chart, but the two of these strategies can be used at the same time in the same account, just in a different chart.
The success or failure on both strategies lies in the configuration given to them. Some settings will alter on greater or lesser extent the performance of the robot, and with this, the profits or losses generated. The critical factor that can make FAP Turbo users win or lose lots of money is the Lot Size and the values given to it, this value represents the amount of money used for a trade based on the total actual amount of money in the account. The bigger this value is the bigger the risk becomes.
The better and safest way to know what value to assign to this setting is to try first on a Demo Account with the amount of money that will be used later on the real one. Another way is to use the Autolot parameter, which will automatically set the value that the robot considers best suitable for trading. Commonly, the value assigned to this setting is around the 0.005-0.05% of the total amount of money in the account.
On the other hand, there are other important settings, not as important as Lot Size, which also affect in a deep way the robot performance, these are more specifics of each strategy and can make an user win as they can make him lose high quantities of money. I will overview these settings by strategy, as they are highly detailed on the FAP Turbo Guide when the robot is purchased.
Short Term Scalper Strategy Settings:
This mode generates around 1 to 5 daily trades when the market is stable. Fridays are days of high volatility, so these days the robot probably won’t generate trades. This strategy can work with EURGBP, EURCHF, GBPCHF and USDCAD currency pairs, with the EURGBP being the most profitable, on M15 timeframe or also called, 15 minutes timeframe.
With this strategy there are some critical parameters which have to be taken care of, these parameters are:
- GMT Offset: It defines the offset in hours between your GMT and your broker GMT.
- Scalper_Lots: It defines the lot size.
- Scalper_UseMM: Turns on/off the autolot calculation.
- Scalper_LotsRiskReductor: Percent of free margin used to open new order. Can be from 1 to 100. Only used if Scalper_UseMM is on. This defines the percentage of money autolot will calculate to trade. (e.g. if 5000 USD$ is the total money in the account and the Scalper_LotsRiskReductor is set to 10, then the autolot will calculate the 10% of the money to use it in trades).
- Scalper_MaxLots: It defines the maximum lot size.
- Scalper_RelaxHours: It defines the number of hours to miss after hitting stop loss.
Long Term Advanced Strategy Settings:
This mode works very well for those who want to take advantage of following global trends in the EURUSD currency pair. This strategy works only with EURUSD currency pair on M1 timeframe. It’s not recommended to use this strategy on small accounts because of the margin drawdown while waiting for trades to complete themselves.
There are also some critical parameters which need to be taken care of in this mode, these are:
- FapTurbo_Lots: It defines the lot size (if 0 then Autolot is on).
- FapTurbo_LotsRiskReductor: Percent of free margin used to open new order. Can be from 1 to 100. Used only if FapTurbo_Lots is set to 0.
- FapTurbo_MaxOrders: It defines the maximum number of opened orders at the same time.
- FapTurbo_MaxLots: It defines the maximum lot size.
- FapTurbo_StopTime: It defines the time delay between first and second opened order (if Maxorders=2 or more).
- FapTurbo_TakeProfit: It defines the take profit in pips
- FapTurbo_StopLoss: It defines the stop loss in pips.
- FapTurbo_TrailingStop: It defines the trailing stop value
- FapTurbo_DurationInHours: It defines the maximum time interval allowed to keep the opened position.
- FapTurbo_Hedging: This feature prevents users from opening a lot of similar positions in one direction. When activated, the robot will control and balance the number of positions in each direction.
- FapTurbo_HedgingLotReducer: Opens every new added trade with decreased lot size.
There are other parameters on each strategy that can also be configured, as well as global parameters, but they won’t affect in a notorious way the performance of the robot. So this is more or less, the parameters that users have to be careful with. As said before, try learning what values suit best to your needs by using a Demo Account.
I will post one last thing before finishing this article. The images below are my actual FAP Turbo configuration, this is to give FAP Turbo users a guide or point of comparison in order to help them find the best configuration for their robots.
EURGBP Settings
EURCHF, GBPCHF and USDCAD Settings
FAP Turbo Long Term Settings
I hope this review can help most of those who are still fighting with their robots or don’t have a clue on how to configure their robots for its best performance, for those who had questions I hope this helped and I also hope that those who where doubtful whether or not to buy FAP Turbo had made up their minds.
**These settings are intended for education purposes only and carry no guarantee as to how well they will perform for any individual or organization. Historical results may and do differ from actual trading and no guarantee is made as to the performance of this information in future trading activities.**
It’s all about ease and automation in the 21st century. So it’s most likely that we’ll be seeing more programs developed mainly for money making purposes. We will be seeing more online trading software available to the general public as more people realize the benefits of automated trading. But this does not mean that money managers will soon be out of a job; in fact their clientele will grow as more people show interest in what was thought of before as risky business. And with the increase of traders, the minimum $10,000 investment will inevitably go down, which will enable more people to join the bandwagon.
There are many automated trading software available over the World Wide Web. There is much free downloadable software, and there others that need to be purchased to be able to use them. The price for this software ranges from $100 to $300 at the most. With the growing popularity and promise of 1000% turnover, trading software has sprouted like mushrooms all over the internet. Online companies also offer the same result for a minimal investment of $10,000. Can this trading software come through with the promise of high returns? Can online trading companies be trusted with such large investments?
Any serious trader will give you the same advice; go to a reputable Forex brokerage firm. Beginners think they can do it with a manual, but financial experts will disagree. This software, though automated, is not properly configured by professional Forex traders. Some are just clones of existing popular software used by firms. There is also a huge risk of being scammed by online trading companies, especially with such large amounts involved. You can never be too sure.
Forex brokerage firms offer the same results; they have exceptional customer service and excellent trading platforms. Add to these, firms have the experience when it comes to Forex trading. Most firms also offer the use of Forex Trading Robots or FX Bots to diversify their services. These FX Bots are closely monitored by money managers in case a problem occurs or a new opportunity comes along.
We’ve tested the FAP Turbo Robot for six months, with a profit of 9650 USD$ , Click here, for more info
Read about Forex trading robots, ask experts and compare experiences with other traders before you invest your hard earned money.
