The Auto Trader Companion #14
Are Trading Tools Still Relevant?
Last week, we have made some updates to our trading tool softwares, ForexTrailer and ForexChartistry.
We look into the aspect of whether trading tools are still relevant in todays trading activity and which aspect of trading does each specialized trading tool that we have developed address on.
Trade management and ForexTrailer
As some of you might know ForexTrailer has been around for the past 2 years and still has been used by lots of traders all over.
Even though the market dynamics and the way how people look at markets now have changed, there are still aspects of trading that still have not changed.
One aspect is the trade management. No matter how great a strategy is, there is always an entry point and an exit point. Both are equally important.
Most new traders tend to focus on the entry point, finding that sweet spot for an opportune entry but neglect on how they plan to exit their trade. Sometimes even traders who have some experience under their belt tend to overlook their exits at times.
Trade management can be seen from using a simple hard take profit and a stop loss to some complex indicator-type of trailing method. But whichever the way you may employ, the end result is to maximize the potential of your trading profits and minimizing the risk exposure to the market.
What makes a great strategy greater is when a trader is able to make use of trade management to allow an entry in good market conditions to have a great exit point and in the worse case scenario an entry in bad market condition to get away with very minimal losses.
Why ForexTrailer?
I find that trade management should be an activity that is part of trader’s trading process but not to the extent of micro-managing exit levels, which could be too stressful and time consuming.
ForexTrailer is still relevant in that it takes away the micro-management work out of the trading process through automation by executing a trader’s trade management plan, freeing up time to be able to plan and prepare for the next awesome trade.
The emotional portion of handling trades can also be lessen when a trader spends less time monitoring trades which can lead to better trading consistency.
Price Action Chart and ForexChartistry
Price action charts have been around for some time and it is weird that we do not see that in MetaTrader 4.
Price action charts do allow traders to see a different perspective of the Forex market where traders are able to see movement of the forex market with little “noise”.
This allows traders to highlight trends clearly, identify key support and resistance with clarity. It serves to provide a much better optics to the sentiment of the forex market.
This in turn allow traders to use these data to plan for their trade in conjuction with their own indicators for a proper trading strategy.
Price action charts does provide another dimension to boost a trader’s trading edge over others whom might miss out certain details of the market.
Why ForexChartistry?
There have been attempts and solutions where traders try to get Kagi, Price Break, Point & Figure and Renko onto MT4 in various forms but mostly in offline chart mode where automation software with it may not seem possible.
We decide to innovate a solution to address this challenge which we did by creating a workaround in MT4 that provides real-time Price action charts in the form of an indicator to be attached below to the OHLC chart.
This reduces the lag time of plotting the Price action chart where traders can get close to real-time charting but more importantly, we are able to introduce some trading automation capability for these charts as well.
Now traders can trade off these price action charts through the use of a ForexChartistry trade automator if they want to automate their entry or exit based off the price action chart with respect to their trading strategy using these charts.
Or they can use our ForexChartistry trendline tool to plot support and resistance levels where they can trade off through the use of special lingos to trigger entry or exit based on their trading strategy.
The uses of these trading tools in conjuction with the price action charts are dynamic which traders can take advantage of to complement with their trading needs.
Trading tools like ForexTrailer and ForexChartistry are just tools by itself and will only show its potential if traders spend time to learn how to use them effectively together with their own developed trading plan.
Trading tools if used properly is able to assist and increase a trader’s trading edge in the Forex market. They should be nimble assistants in helping traders carrying out orders to complement and execute in a trading routine saving time and headaches.
What is your opinion about having trading tools? How should trading tools help you in your own trading routine?
Share them in the comments below.
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hello,i like to trade fx market for hedge strategy.
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