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[Vlad RF]

The MFI: Peculiarities and Trading Strategies

Author: Maks Artemov

Dear Clients and Partners,​

Today, we will get acquainted with the MFI (Market Facilitation Index). It was developed by an experienced trader Bill Williams and described in his book “The Trading Chaos”.

The author aimed at research and quality analysis of the ratio between trade volumes and the price of the asset. He assumed that the trade volume or turnover initiated growth. The larger the volume of the asset, the brighter the price growth.

Placement and appearance

In MT4, you can find the MFI in Indicators – Bill Williams. The indicator is displayed in a separate window under the price chart and looks like a histogram made of bars of four different colors. The color and width of the bars are customizable. By default, the colors are as follows:

• MFI upwards, volume up – Lime
  
• MFI downwards, volume down – SaddleBrown
  
• MFI upwards, volume down – Blue
  
• MFI downwards, volume up

Usually, it is up to the trader whether to place highs and lows – normally, they are not used in trading by the MFI. The indicator has no other settings.

What does the MFI show?

The indicator provides the following information:

• The green bar means that the number of market operations increases and the trend is getting stronger. The current impulse may continue because new players come to the market and make a lot of operations. This signal is not meant for opening positions because the impulse emerged much earlier, and the price has already covered a long distance. But if the trader already has an open position, the growth of the green bar will mean they were right.
  
• The brown bar means that volatility and liquidity are falling because market players are losing interest. Usually, such a bar precedes a flat, and the probability of a reversal is almost null. After the flat, the price may proceed in either direction with equal probability.
  
• The blue bar indicates that the impulse is currently developing not because some new players have entered the market but because either buyers or sellers are leaving it. They have lost interest in the asset, and the situation is dubious.
  
• The Pink bar shows that both bulls and bears are active. This bar promises a reversal and is most preferable for traders.

Though the MFI gives certain information to the trader, the author advises against trading by this indicator only. It should be used alongside other indicators or some trading strategy.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex Team launches RFund - a new Alternative Investment Fund

Dear Clients and Partners,​

We’re pleased to inform you about the launch of a European alternative investment fund called RFund, which is regulated by the CySEC, license No. N. LPAIF118/2014. We’re actively expanding and pressing forward, that’s why the creation of our own investment fund was the next logical step of brand globalization.

The year 2020 will make history as a period that brought us not only the pandemic but also new all-time highs in major global indices. During this time of extraordinary volatility, we’re ready to offer you cutting-edge solutions in portfolio management, which are based on our long-term experience combined with the conservative approach to the choice of assets for investments.

What makes us different?

• New approaches to management – using up-to-date methods in risk budgeting and portfolio management coming to replace modeling principles that are based on historic data and vulnerable to high degree stochasticity of relationships between instruments.
  
• Approach to diversification – investment policy implies the allocation of most of the assets in the units of other funds – instruments, which are diversified between assets within their instrument class.
  
• Conservative approach to the choice of assets – the fund neither uses leverage nor considers investments in complex derivatives on credit swaps, in cryptocurrencies, and other similar instruments.
  
• Transparent costs structure – investors pay only a fixed management fee of 2% and a performance fee of 20% on the return that exceeds 7% annual in the current financial year.

Who can invest with RFund?

• The Funds is available only to investors from Europe, who are qualified as "Professional investors" or "Well-informed investors".
  
• The minimum invested sums for professional and well-informed investors are 100,000 USD and 125,000 EUR (in USD equivalent) respectively.

More about RFund
​

Sincerely,
RoboForex team

 

[Vlad RF]

Ten Point Trading Strategy: Morning and Night

Author: Maks Artemov

Dear Clients and Partners,​

The Ten Point trading strategy is well-known by a wide circle of market participants and is based on simple entry rules; the percentage of profitable trades is quite high. An everyday profit, even if it is small, is good not only for the deposit but for the trader’s attitude to the market situation. This, in turn, inspires the trader for further work.

Peculiarities of Ten Points

The main part of beginners in Forex meet their death as traders due to trivial greed and endless losing trades. Meanwhile, beginners dream of making a huge profit right from the start, ignoring safety issues of careless and thoughtless strategy. Many do not guess that it is much easier to make small profits daily instead of a huge profit once in a long time.

So, for a beginner, it is much easier to find one entry point on a technical level a day and take their almost guaranteed 10-20 points of profit per session, spending the remaining time on analyzing the situation and perfecting their trading strategy that will later bring the profit.

Option one: trading at night

At the opening of a trading session (00:00 GMT), the trader draws support and resistance levels based on the data from the previous session. We look for the highs and lows of the preceding period. There is a theory that the price may break away the highs and lows of the previous session because major market players put their Stop Losses and pending orders there.

When such orders are triggered, the price may make a sharp movement, which is what we are looking for. Some might say that we are making wild guesses about the direction in which the price will go, but this is the point.

Entering the position

Marking the high and low on the chart, place pending orders on their breakaways. Use Buy Stop for buys and Sell Stop for sales. To decrease the probability of false triggering, place the orders two points away from the extreme (the Buy Stop – two points above the high, the Sell Stop – two points below the low).

Wait for the trading situation to develop. The Stop Loss is 20 points away from the entry point. As the name of the strategy suggests, the TP is 10 points away from the entry price. Let us now discuss the situation when these conditions change.

Exiting the position

The first condition is triggering of one of the orders; in this case, delete the second one manually, regardless of the results.

The second way of exiting is deleting both orders at the end of the trading session, if they have not been triggered, and placing new ones based on the new data.

Ten Point trading strategy - Buy​

Ten Point trading strategy - Sell​

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, as always, the ContestFx project is waiting for you to participate in the following contests:

The 116th competition of "Demo Forex" is approaching the final stage.
The 287th competition of "Week with CFD" just kicked off today.
420th competition of "Trade Day" will start on 02.12.2020 at 12:00.
337th competition of "KingSize MT5" will start on 03.12.2020 at 20:00.

To participate in our contests held on demo accounts, you need to go through a simple registration procedure just once. You can fully trade on the Forex market with the prize money you win and make a profit without investing your own savings required as starting deposit.

We wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex received prestigious awards of the financial sector

Dear Clients and Partners,​

RoboForex has once again been recognized by the professional community of traders and won several prestigious awards, such as "Best Investment Products (Global)" from Global Brands Magazine Awards, "Best Partnership Program (LATAM)" from Global Banking & Finance Awards, and "Most Trusted Broker" according to Business Magazine Awards.

We thank our clients and partners for choosing our company for cooperation and continuing investing and expanding their businesses together with us. RoboForex has always been paying particular attention to maintaining a high-quality level of provided services, as well as developing new up-to-date products. Our latest achievements are clear proof that the company chose the right path and an excellent motivation for further development.

​

Sincerely,
RoboForex team

 

[Vlad RF]

How to Scalp in Forex: A Guide to Scalping

Author: Victor Gryazin

Dear Clients and Partners,​

In this overview, we will discuss what is scalping and whether it suits everyone. Scalping is a popular method of short-term trading in Forex with the use of leverage.

What is scalping?

Under scalping, traders mean short-term intraday trading strategies. The term originates in the Latin “scalpere” - “to cut”. Scalping presumes a lot of intraday trades – short and with modest goals. The technique consists of quickly “cutting” small profits off the price movement.

The option of marginal trading (i.e. with the use of leverage) has made scalping quite a popular strategy. A small fluctuation by a couple of points can bring the trader a serious profit thanks to large leverage. Scalping is perfect for traders with a small deposit that does not allow for long-term positional trading. For scalping, we use small timeframes: M1, M5, M15.

Trading strategies for scalping

Nowadays, you can find plenty of scalping strategies on the net. Still, approach every strategy individually: one trader prefers an empty price chart, another one enjoys indicators, the third one sticks to automatic trading.

Choose your strategy based on your preferences and test it well on a demo account before trading for real. Now let us discuss three strategies meant for scalping.

Victory trading strategy

This is a strategy that uses indicators; it consists of scalping on M1 and M5. The indicators used are the TMA, TMA Size, CTF, Currency Power Meter, SSRC, HP DIFF. In our blog, we have a detailed article about this strategy.

A scalping strategy with two Moving Averages (EMA)

This is a mixed strategy that supplements tech signals on smaller timeframes (M1, M5, M15) with the crossing of two EMAs. The strategy uses tech analysis patterns, support, and resistance levels, the crossing of two EMAs with different periods. This strategy is also described in detail in the article "Scalping Strategy with Two Moving Averages (EMA): Description and Rules".

BF Scalper Expert Advisor
It is an automatized scalping strategy. The expert advisor uses several technical indicators, the MAs and Bollinger Bands; the timeframe used is M15. The expert advisor demonstrated satisfactory results on tests. Again, take a look at the description in our blog.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Invest in Gold?

Author: Andrey Goilov

Dear Clients and Partners,​

Gold is a safe-haven asset in times of world financial crises. The pandemics of the coronavirus and political turbulence in 2020 pushed the gold prices up higher than the level of 2000, though at the beginning of the year it cost no more than 1,500 USD per troy ounce.

Advantages and drawbacks of investing in gold

As you see, there are plenty of options for investing in gold.

The easiest way is to invest in exchange instruments, such as futures and CFDs. Trading such instruments, you do not need to buy physical gold, transport, and store it.

Compared to mutual funds, such investments are quicker to make a profit; trading CFDs, you can always close the trade yourself and exit the market, waiting for better times. However, to use exchange instruments, you need some minimal knowledge of it.

Currently, the quotations of gold are going down again – buyers failed to hold the highs. However, traders are sure that this is just the beginning of a new wave of growth, and the price will start going up very soon. Regardless of such prominent growth this year and the confidence of traders, gold cannot boast high profitability. For example, Bitcoin grew from 8,000 to 19,500 USD in 2020, leaving gold far behind.

Why do traders keep investing in it?

The main reason is low volatility, compared to digital currencies and stock indices. In this article, we will discuss the ways of investing in gold, the difference between them, and the profitability of investments in this precious metal.

Summary

Gold is not the most profitable asset. However, you can be sure that it is among the safest ones nowadays. Moreover, even after a decline, it resumes growth, even in times of global crises.

Remember that each investor should have their strategy because each person has different demands and financial capabilities.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFx project invites everyone to whom it might seem interesting to take part in the following competitions:

The 117th competition of "Demo Forex"and 288 compeititon of "Week with CFD" just kicked off in December.
421st competition of "Trade Day" will start on 09.12.2020 at 12:00 a.m.
338th competition of "KingSize MT5" will start on 10.12.2020 at 8:00 p.m.

We remind you that to participate in any of the competitions, it's enough to go through a simple registration procedure just once. Next, you'll be able to join the competition of your choice in just a couple of clicks.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Invest in Silver: Available Instruments for Investors

Author: Victor Gryazin

Dear Clients and Partners,​

Silver has been known since ancient times: some of the first silver deposits in Corsica and Cyprus were developed by Phoenicians. Refined silver was a rare treasure at those times, sold for exorbitant prices. Silver was used for making coins, jewelry, tableware, and dishes – such things are found as buried treasures from time to time. Amazing disinfectant properties of silver were noted by Scheele and Paracelsus.

In this overview, we will discuss why silver seems attractive to investors and which instruments to choose for investments in it.

Why is silver attractive?

As long as the global economy is stuck in a crisis provoked by the pandemics, the demand for precious metals is growing. As a rule, precious metals, such as gold and silver, enjoy special attention when the perspectives of currency rates, especially the USD, are vague. Gold, the most popular precious metal, renewed its all-time high this summer.

Silver, which is the second most popular precious metal, is also in high demand and growing. As well as gold, it is used for making jewelry, coins, and ingots. The silver market is smaller than the gold market, which makes the quotations more volatile.

The supply of silver is formed by three main sources:

• Primary production is the production of silver from mined ore. The largest world’s supplier of silver is Mexico, then go Peru, China, and Australia.
• Secondary production means remelting pieces of art, jewelry, dishes, and recycling photographic film and electric contacts.
• The third source is physical silver deposits. A lot of metal is stored in large exchanges that specialize in trading metals (COMEX, LME) and various state storages.

Silver is actively used in industry: the metal is used in car parts, electronic gadgets, solar batteries, and photography. New technologies, such as silver oxide batteries, silver conductive ink, and various silver-based nanotechnologies in medicine, are growing more popular. As a result, the demand for silver is growing gradually, making the metal attractive for investments.

Next, let us discuss popular ways t invest in silver, their advantages and disadvantages so that you could make up your mind.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How Does Crude Oil Price Influence USD/CAD?

Author: Maks Artemov

Dear Clients and Partners,​

Oil has become an intrinsic part of our lives, and humanity depends fully on it: oil is not just a source of energy but also the material from which many everyday things are made.

It has long been argued that only large corporations can make money on crude oil but this is wrong. Most types of oil are available for trading in the stock market, the most popular types are BRENT and WTI. The USD is the most widespread currency in the world, used for the biggest part of transactions. The majority of wealthy people keep their capital in the USD. The Canadian dollar is less popular over the globe. It is a commodity currency, which means it reacts actively to commodity prices, oil and gold in particular.

Today, we will discuss the interaction and correlation of oil prices and the CAD. If you look closely at the charts of BRENT and USD/CAD, you will notice certain patterns in the dynamics of the assets. As long as the Canadian economy depends on oil production and selling, USD/CAD quotations correlate with oil ones

What is the correlation?

Correlation is the way assets relate to one another at a certain period. There are three types of correlation:

• Positive correlation means that two instruments are going in one direction during the observation time. The observed assets will rise or fall proportionately. The charts are similar.
• Negative correlation means that the assets are going in the opposite direction. While one asset is growing, the other one will be declining. The charts look mirror-like.
• Zero correlation means that the instruments are acting with no obvious relation to each other.

As long as in the USD/CAD pair the US dollar comes first, the correlation will be negative. This means that the growth of oil will cause a price chart of USD/CAD to fall.

Example of USD/CAD trading

Look at the H4 of USD/CAD and WTI. The WTI quotations broke through the resistance level and started growing. At that moment, the situation on the USD/CAD chart is the opposite: the price began to fall fast. During 8 candlesticks the oil price was growing, then returned top the broken resistance level. As for the price chart, the quotations keep declining, pulling back from time to time. This might mean that Canada made a profit on oil and somewhat secured its national currency against the US dollar. Then if oil quotations keep growing, USD/CAD will be falling, asserting further strengthening of the Canadian dollar.

Though there is an obvious correlation between oil and USD/CAD, it would be wrong to use it for trading without additional filters. The market is full f false surges that provoke unpredictable rises and declines. Anyway, this correlation can be used as a supplementary signal supporting the direction of the price.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team