Because intra-day price action tends to be unpredictable and spreads exist.
Thank you, Ontario.
But cancelling profit without reason is impossible, right? Just because of not trading ?
Why did off-shore dare to do that? They don’t worry about client leaving?
Thank you, AUdvantages.
Totally agree with you.
Of course they have to state which provision of their ToS you violated. But the problem is some brokers update their rules and cite vague reasons during account termination or basically scamming you. Client protection in offshore brokers is very low.
Thank you, Ontario.
Is there any famous broker who started up offshore as well?
This has a chance of working when markets are trending and you ride the trend as far as it goes but when they are not, you will get chopped to pieces. The problem is knowing when the price is about to trend and when it is not.
Personally, I dislike technical studies because they lag and smooth out the price. You inevitably get in late which increases the risk. Then you leave a lot of money on the table on the exit because the price has already turned but the indicator has yet to indicate to you to get out.
However, this is an opportunity to learn. Try the opposite on your demo.
Sell when the price closes above the SMA. Buy when the price closes below the SMA.
Profit target at least twice your stop loss and both feasible, SL should reduce the probability of getting stopped out but not too wide. TP should maximize your potential to profit yet, realistically get triggered.
You can also experiment with trailing the stop to minimize losses and letting the profitable trades run. Even adding to them when you catch a trend.
You may also want to experiment with higher time frames as a filter. Check this thread : The 3 Duck's Trading System
Come back and update us on your findings and results after you have made at least 20 trades over a series of days. The more trades the better. The more trading days the better…
Why not just flip a coin? Heads go long, tails go short. Risk to rewards at least 1:2 and / or add to the winners as price makes new highs or lows and adjust your SL along the way. I think this is just as good, maybe better…
The price has to trend in the direction of your trade for you to profit. Even if it is by a few pips.
However, I have found that FX markets trend maybe 20-30% of the time and they range 70-80% of the time.
I prefer trading ranges. In larger term ranges, you will find shorter term trends.
Thank you, ProfitPotential.
You are right. But I have tried to trade on the opposite strategy and the result is the same. Because there are still spreads even if you do in that way. So I think the speed to get the quote is quote important. And Ontario’s opinion is correct.
Yes, if you trade on the lower time frames, aiming for a small number of pips, then the spread will be a bigger percentage of your profit.
Up the time frame.
Trading on the 1m chart is not a good idea in my opinion. You expose yourself to too many things that could potentially go wrong.
Well yes, Tickmill, Hotforex, Exness. They was offshore at the start but then received FCA license and I guess became more trusted.
Thank you ProfitPotential.
Yes, exactly, you are right.
Thank you Ontario.
But I’m confused, why didn’t they refuse withdrawal of the clients under FCA? why did they choose offshore shop as their base to do this kind of thing?
I would like to learn more about this please, any tips would be appreciated.
Yes, me too.
Hi Ontario, why not teach us more?
This seems like wise advice, thank you.
Well, to mention some of them it is Hotforex, Tickmill, Exness. They all got FCA license, although initially they were all offshore brokers.
Hello, Feel sad to know that you lost 10 pips daily. Which time frame you follow for take your trade?
Hi Hun2616, thank you .
Hi Ontario, just curious, why don’t they use FCA do business overseas, and why do they use offshore shop(with lower license) and regulation overseas?