In the GKFX trading workshop "The Trading Sessions: The Language of the Market. Listening, Understanding, Acting" on April 12, 2018 at 6 p.m., participants from Jakob Penndorf learn to better understand the market. Why do prices sometimes go up after bad news and down with good news? The reasons are often multi-dimensional, but can often be understood in the technical environment at the time of the event.
Even those who pay attention to the latest news when trading can work with an automated strategy, because these are not just for generating Suitable for trading signals. In the GKFX trading workshop "The Trading Sessions: The Language of the Market. Listening, Understanding, Acting" you develop a concept step by step with Jakob Penndorf to test your trading ideas for their suitability. This is how you get recommendations for positioning in the market. The workshop gives the participants a new look at the markets. In the end, the participants receive a ready-made rating system that can help them make even better trading decisions.
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software for automated strategies with almost all brokers
Almost all brokers offer software that traders can use to implement automated strategies. Whether these are predefined or whether you can program a strategy yourself depends on the software used. Social trading also works with an automated strategy, which you simply copy from another trader. Automated strategies are very popular with beginners because they often learn to understand the market. Even traders who have little time to trade like to go this way. However, automated strategies are no guarantee of successful trading.
Automated strategies with MetaTrader
Many brokers offer the well-known MetaTrader 4 as a trading platform. The Expert Advisor is a tool for creating automated strategies. Some brokers have modified the Expert Advisor again. You can usually start working with the Expert Advisor without any knowledge of a programming language. The Expert Advisor is suitable for trading CFDs and currencies and helps to automatically open and close positions. Automated strategies can only be used in conjunction with technical analysis.
Plugin observes open chart
A plugin always observes an open chart. The Expert Advisor recognizes and responds to entry and exit signals based on the pre-defined conditions. Since a stop loss or the transaction amount can also be integrated, every step from the opening to the closing of a position is clearly specified with rules.
Traders who work with automated strategies can trade without the influence of emotions. In addition, this trading route brings time advantages. In addition, the Expert Advisor can be adjusted to the personal needs of risk and money management. Every purchase and sale is processed quickly. In theory, you can trade around the clock, because the Expert Advisor automatically checks all markets and filters out interesting trading opportunities.
Settings by the trader
Before using the Expert advisors have to enter some settings for traders. Among other things, they indicate whether they want to trade currencies or CFDs and under what conditions a position should be opened or closed. Traders can also set stops. Traders who can program can further customize the Expert Advisor.
Two types of automated strategies
In the case of automated strategies, one divides into fully automated and semi-automated strategies. A fully automated strategy already provides all indicators. With certain trading signals, an activity is carried out immediately. The trader has set the software used accordingly beforehand. The software then automatically buys and sells a trading instrument. The trader does not have to intervene at any point.
With semi-automated strategies, however, the trader can intervene and, for example, determine the exit time of a trade individually. Semi-automated strategies can also be expanded and adapted to personal risk management. However, a lot of experience is required for this.
Every strategy should be tested again before it is actually used on the market. A demo account makes sense. In backtesting, the strategy is first tested with data from the past. Only when this test has shown positive results can the strategy for forward testing be checked using real-time data.
Fibonacci Masterclass - April 2018
Market movements in news trading
Traders who are based on current Acting news, speculating on market movements around results and news. This is a much used strategy especially in Forex trading. News can be, for example, company reports, labor market data or interest rate decisions by central banks. There are two ways in news trading: either you want to correctly predict the exact content of the message or you only speculate on market movements after a message. The exact content or the result of the message are of secondary importance for the latter.
Economic calendar helpful
The economic calendar plays a major role in both ways. All important dates of the week are recorded in an economic calendar. But not every message or appointment also causes movement on the market. The market usually expects a certain outcome of a message, for example that the federal government or the Ifo Institute predict a 2.4 percent increase in gross domestic product. However, if the result of the publication of the data on GDP does not turn out as expected by the market - for example, if the Federal Government would expect GDP growth of only two percent, there can be significant fluctuations in the market quickly.
Depending on the strategy, traders either want to predict the exact outcome of the message and the change in the market, or they do not pay attention to it, but only speculate on market changes. It is also unimportant whether courses go up or down; The main thing is that there is movement on the market. This way you can already make profits if there are any changes in the market.
Market expectations not met
The prerequisite for market movements is that the expectations of the markets or must be undercut. In the above example, there could therefore be movement if the GDP forecast by the Federal Government or the Ifo Institute for Economic Research is above or below the expected 2.4 percent. A weaker expectation could lead to falling prices, a higher forecast could lead to rising prices.
Correctly assessing market expectations
The result of a message and the movement on the market are often observed, However, to be able to predict this correctly, you not only need to be familiar with the topic of the message, but also to know the market expectations. In order to be able to assess the expectations of the market, one can follow statements from experts and analysts, for example. In the run-up to the publication of the forecasts for gross domestic product, for example, these would explain that they expect the federal government to increase its forecast for the current year by 0.2 percent. Surveys among experts can also be helpful.
Market reaction expected
Those who act on the basis of news are primarily interested in news that can provoke a market reaction, In the best case, these messages can be scheduled or predefined. This is usually the case for publication dates or meetings of the ECB. In the case of a short-term message, it is usually not possible to work with a strategy because the response time is too short. Therefore, traders mostly refer to fixed dates and open a position that suits them beforehand.
Especially in Forex trading, fundamental analysis is used in particular. For example, you evaluate economic data of the country whose currency you are trading. Decisions made by central banks, among other things, can have a major impact on the market when trading currencies.
Chart technology in news trading
But chart technology can also be used by traders for news come. Traders observe the market from the chart's point of view and thus receive information about good times to open a position. If you only speculate on market movements, i.e. do not want to predict the exact content or outcome of a message, you can also use automated strategies. You can integrate the economic calendar into the settings for automated trading on the trading platform.
Established forex and CFD broker
GKFX has now been an established forex broker for almost ten years. and CFD broker. The head office is in London, the German branch in Frankfurt am Main. The broker is therefore regulated by the British FCA and the German BaFin. In the branch in Frankfurt there is not only the German-speaking customer service, but also the numerous training materials and webinars are planned.
Trading tools in MetaTrader 4
As a trading platform MetaTrader 4 has also established itself at GKFX. For this purpose, the broker offers a web-based platform and an app. The trading platform enables traders to trade currencies and CFDs on underlyings such as stocks or indices, among other things. The maximum leverage is 400: 1 percent and the minimum transaction size is only 0.1 lot. The leverage and spreads vary depending on the trading instrument and account type.
The trading platforms of GKFX enable interactive charting. Tools for technical analysis and real-time courses are offered there. Automated trading can be carried out via the Expert Advisor of the MetaTrader platform.
Conclusion: GKFX workshop helps to better understand the market
In the GKFX trading workshop "The Trading Sessions: The language of the market. Listening, understanding, acting "on April 12, 2018 at 6 p.m. Jakob Penndorf helps traders to better understand the markets. In the end, the participants get a new look at the markets. Together with the participants, the speaker develops a concept that can be used to test trading ideas for their suitability.
The workshop also deals with the question of why courses react unexpectedly after certain messages. In addition, there are automated strategies and how they can also be used for news.
In order for a news to lead to price changes, the result of the news must deviate from the previous expectations of the market. News traders have two strategies. The first way is to correctly forecast the result of a message and the resulting course changes. The second way, you only speculate that there will be movement in the market. For the latter, traders can also use automated strategies.
These can only be used if you are working with technical analysis. A tool for this is built into the MetaTrader 4 with the Expert Advisor. There, traders make the appropriate settings, via which a trade is then carried out automatically from the opening to the closing. But even automated strategies are no guarantee of success in trading.
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