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Choosing a suitable broker for the EAs

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There are several people who are taking up forex trading, but for all other people it’s too difficult to become familiar with forex business, so in this case we go to the Expert Advisors (EA), which trade automatically without the clients’ interference.
The following are some of the tips that can help you in choosing a broker for trading with the EA.
1. Regulation: The broker must be registered with a regulatory authority of the country in which they carry out their operations. Due to new NFA rules I don’t recommend trading with the EAs on US brokers as almost all of them will lose the account balance.
2. Reputation: The broker selected should be a reputed person or a firm with experience behind them and a good track record.
3. Quick execution of the trade orders: An experienced broker takes care to execute the buy or sell orders as soon as the option is clicked or. In this case the most suitable is the ECN brokers, but mostly you`ll need a start capital to open such account with the broker.
4. Pip difference: Difference in pip forms the major part of the earnings of a broker. Some even charge variable pip spread. However, it would be wise to keep the pip spread low or fixed for the EAs, but nowadays programmers are trying to put this parameter in the properties of the EA to make it stable, so I can recommend to visit at least customer support to get the information about this issue.
5. Choice of accounts: Brokers offer a variety of accounts like mini, micro, managed and standard accounts. For retail traders who can afford to invest small amount as capital, mini account will be suitable. For those who cannot manage their accounts, they can prefer managed accounts. Those who can invest huge capital can go for standard accounts.
6. Margins and Leverage: All the information pertaining to the calculations of leverage and margins must be obtained clearly from the broker, as sometimes there is no info on the website.
7. Rollover: The long term or swing dealers have to be careful regarding this because the brokers charge rollovers if the trading is not closed on the trading day and is extended to the subsequent day. This tip is especially good for long-trading experts.
8. Trading Platform: Good trading platform should enable both the experts and the novices to trade in the forex market. Metatrader4 trading platform is widely supported by the EAs, so ensure that broker provides such option for the customers.
9. Assistance: the brokers should provide assistance at any time during the trading time.

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Prognosis on EUR for 2011 year

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Forex market continues to fluctuate in a lateral range, but this is a temporary issue due to the season factors as it is expected in December.

In 2011 market will regain the trend, and it probably won’t be in favor of the European currency. There are too many problems that have been accumulated in the euro zone, which have not yet incorporated into the euro: the markets are now in a state of euphoria created by ejection of cash of the U.S. Federal Reserve, so after all factors will be founded in the currency price.

Additional prerequisite for the development of such scenario is a general overheating of the stock market, and perhaps it might cause the fairly significant correction, which only spur exodus of players in dollar assets, but it’s a middle-term scenario.

It’s also not smooth in the long-term prognosis. Problems of European countries should be solved by the launch of economic growth. However, regulators actually are aimed at holding the current position: increasing taxes, cutting budget deficits are expected to keep the euro at a high level for the higher period. Thus, while the growth of peripheral countries wouldn’t be launched, we can’t expect the strengthening of euro at the market.

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New rules make us happy

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CFTC (Commodity Futures Trading Commission) announced final version of off-board currency transaction regulation rules. New rules were called Dodd-Frank Wall Street Reform and Consumer Protection Act and take effect on the 15th November 2010. Now maximum leverage for the main pairs is 50:1, and for exotic (for ex. EUR/USD) – 20:1. Pay attention to the below lists:


Also, according to new rules all American brokers will become NFA regulated and US residents will be forced to use US broker only. There is a reasonable question “What for?” As it was told smaller leverage would lead to safety trading and non-experienced traders would lose less. It aims at minimizing losses and, as the result, the Forex field becomes more attractive So, CFTC cares about us, wants us to get more money, doesn’t it? Let us look at the rules from another point of view. With new leverage you need more money to start trading, more money – more problems. Not all Americans could afford Forex trading before. But with new rules even less people would be able to start trading as now it requires more money. I think it is coming back “old times” when only “Big Bosses” could make a bargain on the market by operating a large sum of money.

But it is not the end. There is another fly in the ointment. If all American brokers become NFA regulated US residents can forget about EAs as most of them use scalping and hedging. NFA doesn’t allow these activities at all. Now everyone will be forced to sit at the PC staring at a monitor with a hope to get some dollars. But before you need to go through Forex school. Also you may try half-automated systems which give you a signal to buy or to sell. As we can see the rules limited US residents and now to become a trader you need to waste a lot of time studying the subject and a lot of money as such education won’t be free of charge.

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Forex Bulletproof team has released new version 1.01

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Forex BulletProof team has released new version 1.01 for BulletProof and HighVoltage Add-on robots.

The main difference between new version and old one is that it now supports 4-digit brokers. Seems that they had many issues from customers and now, when the list of suitable brokers is thiner they decided to do that to make BulletProof suitable for 4-digits. Well, that’s a good idea.

Personally, I think that this is good news. New update proves that people are working on this project and they’re not going to give up trying to make it more popular.

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Dollar VS Yen

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Dollar increased versus yen today (19.10.10) after the US Secretary of the Treasury Timothy Geithner declared that the USA continue to remain favorable to the strong national currency.

“Geithner used the phrase of the “strong dollar” for the first time over a long time period “, says Jeff Candrick from Nomura International Plc. “Dollar has slightly grown on that but, nevertheless, you shouldn’t forget that it’s a political game mostly”.

“Geithner‘s comments helped dollar a little”, says Brian Kim, strategist from the UBS AG currency market. “He said there would never be such time for the dollar to be forgotten as the world reserve currency “.

Geithner went to South Korea to take part in the summit of Big Twenty’s countries, where exchange rates and efforts of the government in the matters of the economic plolicies will be discussed . Minister of Finance of Brazil Guido Mantega has recently declared that countries trying to protect their export had to end the ‘currency wars’.

Information published today is especially interesting due to the business optimism index data generated by the German research institute ZEW , which decreased to -7.2 points in October (6th month in a row) versus -4.3 points in September. Despite the fact that the main index stayed at minimum since January 2009, the component of the current conditions increased to 72.6 points (3 year maximum).

EUR/USD showed session maximum at $1.3960 after the issue of ZEW report but the growth was temporary. The tension had soon resembled and the rate went down to $1.3880.

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Automated pips EA

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Automated pips EA seems to be a scam in terms of what they show – they have had extensive trades, but suddenly they stopped right around the launch period. Why is this happening – because what they have depicted was taken out of nowhere. As we can see on their website, they don’t even have broker’s names on their statements.

They have shown the results of 5 years live trade, which would obviously be fake.
The best way to check their genuineness is to get access to one of the accounts to prove they are real.

As you can also see from their statement the swap rates are the same for the entire period of time that sounds like a joke too.

According to the above-mentioned, I find the claims on the Automated Pips website to be extremely suspicious and recommend a high level of caution when dealing with this company.

‘I’m so confident you’ll make money with Automated Pips I’ll give you every penny back PLUS $100 out of my own pocket if I’m wrong!’ This seems to be like a total lie as no one will reimburse your loss and you will only get a refund for what is the initial cost of this EA in the best case scenario.

As a conclusion I may say that the website design and the statements placed look like a Photoshop craft to me.

You can go and check their website yourself

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Setting the Forex MegaDroid parameters

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Every Expert Advisor has its own parameters, initially set to default values. Parameters are usually described shortly in the EA’s manual, but we will try to research them as deep as it is necessary in order to catch the idea and learn how to change their values to achieve better earning performance and minimize a loss risk.

At the picture below you can see the Forex MegaDroid 1.21 parameters. Let’s break down the most essential of them, which influence a trading process.

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