Forex

[Gabytrader]

Does anybody trade FOREX using MTPredictor?
What time frames and moreover, how reliable is MTP on forex?
gabriel

[Matt Bowen]

Hi Gabytrader,

I personally do not trade the Forex markets so, hopefully our members will post in their results. I know that Steve Griffiths takes Forex trades on occasion, but I believe the bulk of his trading is done on the Index markets.

Thanks,

Matt

[Gabytrader]

Hi, Tony!
You know maybe better than I know the Hudge advantages of Forex against the Futures and Index Markets.
Nevertheless, people preffer Futures/Indexes where you must invest a hudge ammount of money with a maximum leverage of 4:1.
You know that among all markets, Forex is the most liquid and also the most trendy.
You know also that the Forex market run 24/24 hours, that is continuous.
Could be these two quailties sufficientely to conclude that the Forex Market must be traded with MTP better that other markets????
YOU, AS EXPERIENCED PEOPLE , KNOWING BETTER THAT ALL OTHERS THE MTPREDICTOR PHILOSOPHY, MUST KNOW IF FOREX IS TRADEABLE WITH MTP BETTER THAN INDEXES OF FUTURES!
My serious doubt is this, and I'll let you know directly:
Why, you , as experienced traders, don't declare : Yes, Do to the fact that Forex is the most liquid amd also the most trendy of all the markets, our MTP do work better on this market.
It looks like you hidde this aspect!
You must certainly know also that some of the richest traders on the world are FOREX traders!
I thank you in advance "in the name of all forex traders" ;)
Gabytrader

[Matt Bowen]

Hi GabyTrader,

You Wrote:

Why, you , as experienced traders, don't declare : Yes, Do to the fact that Forex is the most liquid amd also the most trendy of all the markets, our MTP do work better on this market.

MTPredictor works fine on the Forex markets...just be aware of the markets you trade:

*Currency futures are the futures equivalent of Forex, which is a cash market. The big difference is that you can trade currency futures for under $10 whereas Forex you will pay $30. As for a new trader with a small account the typical spread is 5 pips(3 for large account) While you are not paying commissions you most certainly are paying the spread. The spread is the difference between the bid and the ask price. The firm (broker) quoting the spread makes money based on the size of that spread. Remember, if a pip is $10. and your spread is 5 pips, that's $50. commision...Oh, I forgot..there is no commision in Forex...Trust me, nothing is FREE. It's a lot cheaper to trade the Currency Futures...but you're never going to hear that from a Forex broker

*currency futrures are traded at a regulated exchange. Forex is unregulated and traded either through a broker or a bank.

*In currency futures there is no such thing as a "guaranteed fill" With Forex you see "guaranteed fill" advertised all over the place. But this is not good thing. It means the broker is taking the other side of your trade rather than some other trader.

*futures gives you true price, Forex does not. Forex prices can be and are manipulated by the broker.

[stevej]

Matt,


I have seen all the 'propaganda' re the advantages of forex - particularly trendiness, liquidity and 24 hour trading. On the premise that so many people say it then, perhaps, there may be something in it.

I trade stocks through Interactive Brokers who also, as I understand it, offer forex futures but as I know absolutely nothing about the forex market I wonder if you can assist before I give forex a try with MPT? Particularly:

1. What data feed do I use to trade the futures? IE the symbols (eg for EUR/USD GBP/USD) from esignal, realtick and, if you know them, from IB? Presumably to trade the cash market a different data stream is required but, as I understand it, each bank etc provides different data.

2. Is it the Futures market that is widely described as being so liquid or is that the cash? If the latter, how liquid are the futures?

3. Ditto 'trendiness'.

4. Is the futures market 24 hours?

5. Do I understand correctly that there is no expiry date on forex futures?

Thanks in anticipation

Steve

[Matt Bowen]

Hi Stevej,

You wrote:
1. What data feed do I use to trade the futures? IE the symbols (eg for EUR/USD GBP/USD) from esignal, realtick and, if you know them, from IB? Presumably to trade the cash market a different data stream is required but, as I understand it, each bank etc provides different data.

If I were going into the Forex Markets I would use Real-Tick as it is an institutional platform and many banks use Real-Tick.

http://www.realtick.com/v2_getpage.asp?subnav=true&page=plat_exch_getx&exID=64&ID=81

I don't trade thru IB, but I have several friends that do and they are very impressed by the fills and service.

2. Is it the Futures market that is widely described as being so liquid or is that the cash? If the latter, how liquid are the futures?

What you are hearing is probably about the Forex markets...there is no question the Forex markets are the most liquid markets.
The SPOT price is the CASH market price for a currency. Options and Futures contracts trade at the spot price plus or minus some differential. Here is a link that might help:
http://www.fxcm.com/forex-vs-futures.html

3. Ditto 'trendiness'.

??? Currencies trend period...

4. Is the futures market 24 hours? No, (please see exchange trading hours below)

Currencies
Back to Top
Contract
Exchange
Contract Size
Trading Hours
Point Value
Min. Fluctuation
Daily Trade Limits
Unit
Move

Australian Dollar
CME
100,000 AD
8:20am- 3:00pm EST
1pt=$10
1pt=$10
None
$1,000

British Pound
CME
62,500 BP
8:20am- 3:00pm EST
1pt=$6.25
2pts=$12.50
None
$625

Canadian Dollar
CME
100,000 CD
8:20am- 3:00pm EST
1pt=$10
1pt=$10
None
$1,000

Dollar Index
NYBOT
1000 X Index
8:05am- 3:00pm EST
1pt=$10
1pt=$10
None
$1,000

Euro FX
CME
Euro 125,000
8:20am- 3:00pm EST
1pt=$12.50
1/2 pt=$6.25
None
$1,250

Japanese Yen
CME
12.5 M yen
8:20am- 3:00pm EST
1pt=$12.50
1pt=$12.50
None
$1,250

Mexican Peso
CME
500,000 NMP
8:20am- 3:00pm EST
1pt=$5
2.5pts=$12.50
None
$5

Swiss Franc
CME
125,000 SF
8:20am- 3:00pm EST
1pt=$12.50
1pt=$12.50
None
$1,250

5. Do I understand correctly that there is no expiry date on forex futures?

Yes, that is correct.

[stevej]

Thanks Matt