Bit Trader building out into Forex with Paper Trading

Hello. My name is Sean. I’ve been trading Bitcoin for a little while, over at the Kraken exchange. It’s not a hugely profitable endeavor, but I believe it is possible to develop a working system at Kraken. Now that I’ve taken a look at the Forex exchanges with a little bit of initial paper trading and I’ve found a few nice books at Safari Books Online – I’d share the URLs of these resources, but this is only my second post at BabyPips dot-com, and so I’m not yet able to add links to my forum posts.

There are a few good books that I’ve found at Safari - some good books about Forex, there, and about broader concepts of capital trading at exchanges. It is a sort of a commercially managed book library service, Safari - available by subscription, of course with the initial demo/trial month. They have a whole lot of great tech books there, candidly.

I’m not sure if there may be any kind of a bibliography thread here at the BabyPips dot-com forums? Maybe I’ll be able to share a short list of those Forex and Trading books, at some later time?

As my being a long-time fan of free/open source software projects developing open source applications in UNIX operating systems – such as Linux and FreeBSD – but as a fan of free/open source software, I do not try to criticize any concepts of Intellectual Property. To my understanding, it’s a matter firstly of how free/open source software is licensed, secondly a matter of peer review, thirdly a matter of applications.

As my being recently a student of an albeit none [I]too technical[/I] series of courses about electrical engineering, I believe that I am interested in developing a manner of a technical, if not in some ways algebraic view about Forex trading. Of course, I would not want to try to limit my perspective to any single system of trading. I understand that there may be a certain [I]intuitive [/I]nature to any manner of a formal [I]market analysis[/I], such that I believe - candidly - may not be entirely encoded into any single mathematical algorithm. Of course, so far as there being any possible applications for mathematical tools in Forex trading, I’ve limited my own studies to paper trading in Forex, so far.

Noticing that the Forex markets are closed on the weekends, but of an understanding that the analysis itself does not take a holiday, I’ve begun reading about the MQL programming language, in its [I]major version[/I] 4 as corresponding to MetaTrader 4. I understand that MQL has a very C-like syntax, as a programming language. I think that I’m wary of “Pumping up the tech” too far, however – thus, as in reference to the essentially intuitive nature of market analysis, that an entirely mechanical trading system might not serve as a substitute for any manner of an intuitive method of trading such that ostensibly may be developed as based on any manner of knowledge, experience, and any singular concrete/canonical methods of market analysis.

Of course, I’m interested in the profit incentive in Forex trading, but I cannot wish to ignore the capital risk, at any rate of leverage. Thus, I believe I’m trying to [I]hedge my risk [/I]- broadly - to hedge my risk on at least the hope of developing a sort of a mathematically guarded approach to trading.

I would not want to bore the reader of an account of a simple trading system I’ve developed onto the albeit in ways peculiar market of Ethererum*Bitcoin trading at Kraken - the ETHXBT currency pair, specifically. The ETHXBT market rate moves very slowly, over time. Lately the ETHXBT market at Kraken has been demonstrating a consistently down-trending shift, moreover - thus, in a trend immediately favoring of volumes of the [I]counter currency [/I]of the [I]currency pair[/I] - i.e immediately favoring to volumes of the Bitcoin cryptocurrency. That there is a way to turn at least a very, very small profit on that consistent market trend, it’s slow going and a bit mildly agonizing but I believe it’s towards a manner of an algebraically sound methodology – in short, to open a position with buying into the [I]counter currency[/I] i.e the Bitcoin cryptocurrency, [I]at market rate[/I], then to post a bid at a rate lesser than market rate, for closing the position. I’ve seen a profit with this system - definitely a real profit, though a of a very small volume. I don’t exactly know how this may transition into Forex trading, though - maybe I’ve been a little mystified by the currency-agnostic nature of Pips as unit of volume of currency.

Kraken is unique as a Bitcoin exchange, in that Kraken offers an opportunity to put a stop-loss and/or take-profit margin on any single bid. Of course, the market rate is moving very slowly there - so far - but I think it’s a great model anyway. Not to hold too much onto any single market perspective I may’ve developed about the exchanges at Kraken, I think it can serve as a nice and low-risk introduction to some concepts that may also be applied in trading within Forex exchanges.

So, that’s where I’m coming from – though as for where I’m going to, I don’t presume I may know enough about the Forex markets to be able to estimate any realistic goals about my own Forex trading, at this time. I look forward to that the market will open again, tomorrow, and a little more of [I]paper trading[/I] soon.


Some introduction you made, nice. Welcome to our crew. I noticed one thing: the capital risk in forex is as low or high as you want (within limits ofcourse). In forex you can also trade 1:1, which may be more to your liking. Just so you know.

I hope to hear more from you. You can PM me the links and I can post them for you.