FOREX – The Perfect Market To Trade

Off-Exchange Foreign Currency Market (FOREX)

Markets exist to provide a way for people to buy or sell commodities and to raise or invest funds. Many people and businesses trade FOREX for the purpose of speculation, that is to buy and sell currencies solely for the purpose of making profit.  Speculative FOREX trading helps make markets more efficient and liquid.  FOREX trading is a noble pursuit that contributes to the health of the markets, reducing the cost of doing business and assisting in the stabilization and expansion of the global economy.

FOREX is the best wealth creation and recession proof business there is.  Here is why Forex is the best opportunity for informed investors and traders and why that opportunity is growing and will continue to grow for many years to come.

Global Markets Volume Annually ...

  • Stocks: $87 Trillion
  • Bonds: $157 Trillion
  • All Forex: $1,825 Trillion ($5 T daily: Spot, Futures, Swaps, Options, Forwards)
  • Spot Forex: $584 Trillion ($1.6 T daily, the market ForexGridMaster trades)

There is another aspect of Forex that most people, even most Forex traders are not aware of, that is very much in their favour.  This is about the money circulating within the Spot Forex market, where it comes from and where it goes.  Forex is regarded as a speculative market. Swaps, Forwards, Options and Futures are used for speculation and make up 60% of the total market.  We don't trade in that side of the Forex market, we trade the Spot Forex market, a stand alone market separate from the rest of the Forex market. The spot market is mostly non-speculative, 70 to 90% of all spot transactions being done for non-profit making purposes.  Speculators only account for 10% to 30% of the spot-market transactions.  Therefore speculation is a minority activity and almost all of the trading is done by people and organizations who are not the least bit interested in making a profit.

The Stock Market Fallacy
The FOREX Opportunity
Unlike Traditional Markets
Empowered Trading

The Spot Forex market offers amazing potential for informed investors and traders. Recessions around the world are getting worse and Stock markets are expected by those in the know to dive any day now. Investors will most likely lose at least half of their money and any kind of recovery will probably not happen for many years. We already know that it's a very vulnerable market, that stocks crash and lose value. The bond markets are in deep trouble too because they are debt markets based on loans. Argentina and Iceland have already defaulted on their loans and went bankrupt. The US came within 8 days of going bankrupt. Greece, Portugal, Spain, Italy, Ireland, Japan, Singapore are all on the edge, and when they go bankrupt, their debts can no longer be paid, and so they instead will be written off. It is not a question of if the stock and bond market will crash, but when.

The Forex market is safe however because what can happen to stocks and bonds cannot happen in Forex. Not considering inflation, there is a fixed amount of money in circulation globally. The money supply, the Spot Forex which is what Forex traders trade in, does not disappear. The value of one currency may become worthless within its economy and so that currency won't buy much in that country but the money itself does not disappear. When one currency loses value another currency has to rise in value because in the Spot Forex market one currency is always traded for another. If you travel to another country, you usually exchange your currency for that country's currency to be able to spend money there. The overall balance of global currencies always remains the same. It's the transfer of value from one side to another. As an example, if you are trading the USDCAD, or watching the USDCAD exchange rate, if the US dollar is falling in value, then the CAD dollar is rising in value proportionately. While stocks and bonds lose their value Forex always remains balanced. The Forex "market" can't lose value like other markets.

The Forex market is unlike any traditional market not only because of its sheer magnitude, but also because the entire market is run electronically, within a network of banks and it is not centralized. The currencies traded in this spot market are the lifeblood of the global financial system which is used nearly every day by every person and business in the world.  This market's liquidity and competitive pricing is unsurpassed.  FOREX speculative spot trading and related business activity is accelerating exponentially.  Online trading, web-based research and analysis, combined with competitive pricing have made the market much more accessible since 1998, and no longer a monopoly of the large banks, financial institutions, and investment funds.  Millions of individuals and smaller businesses now actively trade FOREX.

Why is trading FOREX so attractive?  The answer is leverage and low trading costs.  You can dramatically leverage money and your time and place.  No other market can compare.  You can trade $100,000 by putting up $1000 on 1 per cent margin (100 to 1 leverage).  That's quite different from the usual 50 per cent margin requirement in equity markets.  Having said that, it is important to be aware that new regulations are being introduced for brokers in Europe.  From mid 2018, the margin requirements are to be tightened significantly, with a leverage maximum of 30:1 for Forex, 20:1 for indices, and for stocks, even less.  There are no daily limits and you have total access to your money whenever you want to open any trade position at any time.  The Forex market is open 24 hours a day from Sunday evening through Friday afternoon EST, and accessible from anywhere in the world where there is an Internet connection.  There is no need for banks or broker-intervention since you can just log on to your trading account and click Buy or Sell.  As an emergency backup, you can always call your brokerage firm to make the trade for you, or even pass the process to a trusted acquaintance.  Of course, there is always the option to have your automatic trading robot in action, remotely, on a Virtual Private Server.

The FOREX market is simpler to trade than stocks, futures and options.  You can buy or sell currencies and profit when the market is going up or down.  There are no restrictions when selling (shorting) currencies as there are in the U.S. stock markets.  There are no required contract sizes, expiration dates, or other constraints normally found in the futures and options markets.

You generally do not have to pay commission fees.  The brokerage firm collects the spread cost between the buy and the sell price of the currency pairs, which is built in when you open a buy or sell position in the market.  The exception is at ECN brokers dealing with higher trade volumes than the regular retail FOREX brokers in which case commissions are charged and are less than the spread costs.

You can also trade with currency options enabling you to limit your risk just to the amount of the premium you paid for your options contract. You decide how much risk you are comfortable with for yourself.

You can also now trade gold, silver, and other commodities at most FOREX brokers, and some even offer trading with Crypto-currencies.

Just how profitable can it be trading the FOREX market?  Sometimes you might read about FOREX traders making as much as 50% or more per month, but the profitable months are rare and you are often not told about the losing months that those same traders endure.  In regards to establishing a good long-term track record, it may be of interest to investigate the advice given by experts in the field of asset-management.  One person we follow for valuable guidance in these matters is John Mauldin.  Many of the top financial experts often refer to and quote John.

Much of the advice from industry gurus errs understandably on the conservative side, with an unequivocal warning about "high yield" investments.  With that caution in mind, we look to ways that ForexGridMaster might provide advantage to small players.  ForexGM can place trades faster and more precisely than even a large professional team of manual traders.  By applying strict discipline and with hands-off, automatic pilot activated during FOREX market-trading hours, a modest return of 50% per year should be achievable with relative safety.

And it gets even better because the market structure and the way liquidity is offered is changing, and in favour of Spot Forex traders. The provision of liquidity can be a complex topic. To keep it simple, up to now liquidity has been mostly provided on a dealer to dealer basis between banks. It has been a bank to bank market. Because we are not banks, traders have been given liquidity on a 2nd or 3rd tier structure via dealers to client which is not as competitive as the inter-bank rate.

Why ForexGridMaster?

If you are new to MetaTrader 4 EA trading, we highly recommend that you start with the ForexGM Advanced Trial-version. You will receive all of the above, exactly the same as the Advanced Full-version, except the Trial-version trades Demo accounts only, and expires 3 months after purchase date. If desired, you can upgrade from the ForexGM Advanced Trial-version to either Express or Advanced Full-version. Because ForexGM Advanced includes all the Express settings, with both manuals, Traders can determine which version suits best.

After having traded and studied many grid trading robots and strategies in the three years following 2002, the founder of ForexGM, James King, clearly saw what was lacking. In August 2005, the ForexGM team was assembled and started building their own grid-trading software, ForexGridMaster. The aim was to create the Rolls-Royce of Forex trading systems, the perfect tool for, but not limited to, mathematically-minded traders who required a stable environment to develop consistent, automatic trading strategies. In all our collective years of trading, we have found that the simple approach is definitely the most effective and enjoyable. Mathematically based automated grid-trading strategies fit that definition very well. We prefer to work with probabilities based directly on price-action, and to skip the usual predictive methods using indicators and price patterns. We have had years experimenting with those as well. It would be a mistake to assume that the Forex market is much more random than it might seem, and it can also respond to heavily manipulation by the central-banks and large institutional traders in collusion with those banks. They can move the market whenever they like, in whatever direction they want, and this can grow the impression of random behavior.

Dive deep to explore all the ForexGridMaster functionality by downloading ForexGM Express or ForexGM Advanced user documentation, or look at upcoming features in the new Advanced version 6.0 ( currently in beta ).

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ForexGridMaster automates the following order-parameters... 

  • Grid-Order slot separation, plus incremental spacing
  • Limits controlling maximum number of trades open at any one time
  • Lot-size and Lot-size increase percent, plus lot-size increase step
  • Order take-profit targets with incremental adjustments
  • Stop-loss settings, pips or percentage of equity
  • Trail-stops on individual grid-orders or groups of orders
  • Profit pips before trail-stop, combined with trail-stop pips
  • Plus many more options

In addition, ForexGM introduces the unique concept of controlled Runs, each with their own specified set of targets.  At the end of a Run, all orders are closed and a new grid is established, ready for orders to be placed within that grid.  One feature we have significantly enhanced is Spike-Protection, and there are new options that can be triggered by a Spike.  ForexGM has various mechanisms to control when trades can be placed, various Time/Day options – handy for automating trade during anticipated News events.  There are many options available when starting a new grid, including a Hedge-Grid which can be configured to participate in concert with the Main-Grid when triggered by a predetermined condition.  In fact the Hedge-Grid settings can not only be used for hedging, but also to create an auxiliary grid trading synchronously on the same chart and Currency-Pair – very powerful!  Check out the new reference manual, available by clicking the button below.

Check the Reference Manuals for Details

ForexGridMaster is ...

  • NOT a "black box" robot with a proprietary unchangeable strategy, and insufficient settings to adequately manage risk.
  • NOT a robot depending on someone else for periodic optimization of settings that may or may not work, and may also expose the Trader to more risk than promised.
  • NOT a robot depending on subscription fees that the Trader must continuously pays to use.
  • NOT a robot that a Trader abandons because it becomes unprofitable. There are many options to customize strategies, and to carefully manage both risk and money.
  • NOT a robot pushed on the market with a lot of hype, based on empty promises; unreliable back-testing; fake, unproven, or cherry-picked performance results; or highlighting the one account that profited out of the fifty that failed.

A word in regards to the founder of ForexGridMaster, James King.

As many of you might be aware, James passed away quite unexpectedly early in 2017.  In his legacy, and to continue with his vision, our small dedicated team is committed to further development and enhancement of ForexGridMaster.

A brief history of James for those of you who are new to ForexGridMaster...  James studied Forex-trading rigorously, and began trading in 2002.  After three years experimenting with many hundreds of robots, he was determined to develop the BEST automated Forex trading system. Thus ForexGridMaster was born.  In 2007, James formed a solid friendship and an excellent working relationship with our key developer.  Together they built what many consider to be the Rolls-Royce of trading robots.  Thankfully, this developer is still on the team, and very much committed to the future success of ForexGM.

"Onwards and Upwards" (James King)