We would like to thank Dimitry, a trader from Russia for reporting a problem with candles during the grouping. And to Ravindar trader from India for his many suggestions that allowed to improve the quality of the software.
This version has received an exhaustive revision to create a robust software of high quality.
Some improvements have been made to the FootPrint. The texts of the candles have a dynamic size according to the size of their bars. The grouping by ticks was improved. In addition, the FootPrint indicator was optimized for faster loading. More optimizations are possible that will be published in later versions. The rendering was also optimized, which counteracts the increase in resource consumption generated by dynamic texts. The following figure shows how the texts of the candles are reduced dynamically so that they can be visible on the bars. These minimum and maximum sizes are configurable by the user according to their visual capacity.
In the Control Points and Unfinished Auctions a volume filter was added that allows the trader to focus in the most important ones. Another feature where TradingFuturo Order Flow package innovates.
Some bugs were fixed. One of the corrected problems is that in some markets the software was losing data. This hit the software in all previous versions and the cause was unknown. In addition, a small divergence in real value candles was fixed when tick grouping was used. The indicator no longer needs to have tick replay enabled, although it is able to continue using it, is in fact recommended. This allows users with less powerful computers to use the toolkit.
Fixed another bug in the order book that caused flashing. This error manifested in high activity markets such as crypto. So with these changes, the software is 100% ready for cryptocurrency trading robustly. Pioneer in this category in the world for all of the features it provides.
This version brings new tools and signals. One is a dynamic volume profile. With this you can select the candles and it presents a volume profile from which they are selected. The profile shows several values such as High, Low, VWAP, POC as well as the ends of the valuea area VAH and VAL. This profile is configured with the same color palettes as the HeatMap and contains an information area with the total volume and cumulative delta of the area that allows analysis only in the selected market area. Another exclusive feature.
The HeatMap was extensively improved. The HumanEye palette was modified to be more friendly. The HeatMap algorithm was completely changed so it is now very fast. It remains an indicator of high resource consumption due to the amount of data it stores, but is much more responsive with the new algorithm.
This version also brings an initial proposition of a market reversal indicator. A powerful tool that accomplishes this through boolean equations. With these equations, users can define when to display the reversal arrows using multiple order flow variables. These equations are pre-configured with theone for delta divergence, which some traders use as a guide in their operation. This specific indicator is loaded as a plugin for the FootPrint in the same style of the footer. So if it is not used, it does not consume resources on the computer. Memory and/or CPU cycles.
With this, the software enters the final test phase before being distributed to customers to ensure its high quality.
Why I’m not interested in a secret trading strategy that returns a lot of money!
No, there is no error in that statement!
We go by parts. It is not easy for a novice to detect in a sea of mediocre people who pretend to be great traders and determine if they are really going to sell you a trading course that works. How to know if they are good traders? We are going to discard.
First sign: If they tell you how much they earn by trading and even give you supposedly operational results… We can be 100% convinced that we are in front of a clown of trading. An individual who mounts an act of circus in trading to finally make us laugh with his/her ignorance. Maybe some do not laugh now but I promise that everyone will laugh out loud once they finish reading.
Why? Simple. Professional traders know that profits are NOT the main parameter to determine if a trading strategy is good or simply garbage. The most likely is that if they have tried to show how good they are using this “measure” according to them, their trading is useless because they clearly do not know anything about the matter and these really are behind your money.
Let’s explain that better. They have told you nothing when they say they earn so many thousands of dollars if they have not told you how much they have invested. Or in more professional terms how much they have risked. Clearly, the more you risk, the more you should win … or lose. Did they tell you the operations with losses? Probably not. And all … I mean, absolutely all trading strategy have losses. Why? For the simple reason that markets are stochastic systems.
That is, they contain random variables that are unpredictable for absolutely every trader or trading system. Not even the broker knows for sure what is going to happen. And that is why every trading strategy must have a risk control system. If you do not have it, you have a time bomb in your hands for your broker account.
Equivalent to that if they have not told you that they have lost they are simply hiding reality from you. But there is more … a trading system is useless if today you earn 1000 dollars and tomorrow you lose 2000.
We can apply this also for trading robots. For example, if someone is going to buy a car, the first thing to do is to learn about the parameters of the car in order to decide. Let’s see if a car has lots of power, luxury, the king of the road but it does 6 miles per gallon you better buy something else. In trading it happens the same, you have to know what is being bought. When a person tries to sell you a course or a trading robot and shows you how many dollars you earn, they have told you nothing at all. And I repeat NOTHING. It’s like saying “the car reaches 55 miles / h” but he/she has not even told you how long it takes or how much it spends … He/she has only given you a hook hiding a lot of the reality. With trading, it’s the same, just trying to fish your money making you believe that you’re going to become a millionaire overnight. Be careful.
And my trading? Is it good? Is it bad? Is it mediocre? How to do it better?
To know it … first you have to measure it. And yes, trading is measured. If you have not, I regret to inform you that your trading is most probably terrible or at best mediocre. But how do we measure this? We already saw that the profits do not say anything. If we do a spectacular trade with 20 dollars we will earn much less than with a mediocre trading with 10 thousand. Capital does not makes the trader. It is not that the returns do not matter, however, they are not the most important thing. But … how to compare one strategy against another? To compare two numbers is easy, but two trading strategies … That is much more complicated. What if we can take this to numbers and compare these numbers? Let’s see.
Winning today and losing tomorrow in trading is known as Drawdown.
How is the Drawdown calculated?
It is usually given in percent and this is defined as the maximum loss in a trading period of time.
That is, it is calculated with the capital losses. And gentlemen, capital is what a professional trader protects most. This is the gas in your car. A professional trader prefers to lose some capital to get stuck in an operation. It means not having capital available for the numerous opportunities that the market can offer. Of course, the lower this Drawdown the better the trading strategy will be. Generally less than 15% starts to be a good value.
We can still get more juice out of this parameter that even being simple does not cease to be extremely important (more than the benefits!) What if we could relate to the benefit and see how much benefit we get per unit of risk. If we could measure the risk. What if we take this drawdown as the risk? Well that is what is known as the Calmar ratio.
What does this Calmar ratio allow?
This effectively allows us to estimate what the profitability was with respect to the risk. Or rather an estimate of the risk. Let’s see if I risk a lot and earn little in a market that trading system simply does not work. Let’s take an extreme example, to risk 1000 dollars to win one. No, that does not work. Now if I risk a little and I earn a lot, that is much more interesting. Bearing in mind that there is always the possibility of losing.
How is the Calmar ratio calculated?
As a risk measure, the Calmar ratio uses the maximum historical Drawdown of the last 36 months and the yield in this period is divided by this Drawdown. Simple.
R = performance in 36 months / Drawdown in 36 months
Of course we could choose an arbitrary period of time if we do not have data of 36 months.
But is only Drawdown risk? The Drawdown only takes the biggest loss. And the others. They do not count?
There are other ways to measure trading with respect to risk. And this is a whole field of research. A very popular one is what is known as the Sharpe ratio. This was created by William Forsyth Sharpe (Nobel of economics in 1990)
This is calculated in a similar way but uses the variability of operations as a measure of risk.
How is it calculated?
Sharpe = Average Return With Risk – Investment Without Risk / standard deviation
This gives a measure of whether it is worth taking extra risk compared to an investment without risk.
This ratio has a defect and that variability is not exactly synonymous with risk. Neither distinguishes between positive or negative deviations. For example, it sometimes penalizes trading systems that have few winning operations with a lot of profit. It also has problems with correlations. I will not go into much depth with the Sharpe ratio because with this little bit we can jump to the next.
Here I leave more about this ratio for those who want to deepen:
Well, we saw how the Sharpe ratio worked and that it had flaws. And … will not be there something that does not have these flaws? And if we take only the negative variability. This variant is known as the Sortino ratio.
This is in some way based on Sharpe’s and uses the standard deviation of negative yields.
It is calculated with respect to an objective or target. It can be zero or it can be some expected gain.
How it is calculated:
S = R – T / DR
R is the average return. The average of earnings.
T is the goal
DR is the negative variance
Here is the link with the details if you want to calculate it:
There are many ratios and I just want to offer you an introduction. There is the K-Ratio that measures the stability of the profit curve, the Omega Ratio, the V2 Ratio, Treynor, etc. Each has their pros and cons. However, I hope you can appreciate how important this risk / benefit relationship is in trading. There are so many ways to determine it that a trader who calls himself/herself professional cannot ignore it. If he/she knew it but did not tell you, is lying ex-professed and if he/she did not know it then sohuld better go looking for another job. In either case it is best to avoid this type of let’s call them … entertainment artists.
I still promised to tell you about a statement. And it was that a trading strategy does not particularly interest me. But I can be a hardhead, it doesn’t even matters to the big trading companies. Why? In the first place, markets are dynamic systems. What worked yesterday may well not work today. What if we had the best strategy for the right time? Or translating, measure trading well and have computing power. Let’s explain that. What if we put a cluster of computers to generate possible trading strategies and measure their performance? Let’s say billions of possible trading strategies. Obviously creating random strategies the vast majority would be pure garbage. Buuut … what about that diamond hidden among tons of garbage that the theory of the probabilities gives us? The probability is negligible, but it is not zero. This type of exhaustive search is large enough so that there are no computers on the face of the earth capable of computing it. And yes, not the Mare Nostrum, Tianhe-2A, the Summit, but all the top 500 combined with all the mobile devices and PCs on the planet. The techniques to solve this problem escape from the article but I hope now you understand why the Wall Street banks are dismissing their best traders replacing them with software engineers.
After this article I hope to receive fewer complaints from people telling me how they have been ripped off just by giving them this powerful weapon that is knowledge. And that they tell me how much they have laughed at those who tried to cheat on them. Also that they tell me how the quality of their trading has been increased.
This is an article for newbies in trading. Despite not being advanced content, it is still important for those who start trading.
Scalping is a very fast trading style. Generally scalpers open or close positions that last minutes or seconds. The goal is to enter and exit the market quickly, earning profits quickly. In general, these gains are small because they follow the micro-movements of the market. It is a useful style to start learning trading because it allows you to train yourself so that loss operations are compensated with gains. Also the scalping allows the impatient people to be forming and taking confidence with the market. Increasing your character. On the other hand, scalping is not recommended for people who are distracted. You need concentration and constantly see how the market is operating. What is happening, to act quickly. Exit or stay. It is recommended for people who are able to act quickly when they detect that things are not turning in their favor. If you want to be a scalper you must be prepared to develop your reflexes. Spend concentrated time in front of the market observing carefully what happens. Scalpers usually work with small graphics analyzing small areas.
Daytraders (or intraday traders) open and close positions the same day. Daytrading contains scalping but there are versions of daytrading that are not scalping and that is why it is a different category. That is, scalping is a subset of Day Trading. This mode of trading is for traders who are concerned about having an open position while they sleep or wish to conclude activities every day.
Swing Trading is a style for very patient people. But it is the most profitable trading style. In this type of trading traders hold positions for several days waiting for the market to turn in their favor. This type of trading is not for all people because you have to have a lot of peace and patience waiting for the market to turn around. This mode is even done away from the computer without looking at what is happening in the market at all times. This requires higher stop loss rules than daytrading due to those movements against.
Position trading is the longer term style of all styles. It can even last for years. Position trading is only for extremely patient traders. This type of trading is for people who do not care about popular opinion at all. Example this type of trading can be the type of purchase of shares of a company that is practically bankrupt and take years to recover the price of their shares. This trading is not recommended for almost any person except people who already have extra capital and are not considering trading as an activity because it is done very rarely. This mode is more common in stock markets. It is also known as buy and hold.
We are pleased to present the most powerful version of the order flow software ever released by us.
This version is still in tests because we have a responsibility with the community and customers to provide stable software that will not damage the trader’s operations.
As a novelty it brings important trading signals the package did not have, which makes it a powerful toolkit for technical order flow analysts.
It has been carefully prepared to allow operating in cryptocurrency markets and in general in markets with minuscule ticks through the addition of ticks as well as the division of volumes. Markets very attractive for traders due to their volatility. This allows a more user friendly interpretation of the data. These functionalities are not exclusive to cryptocurrencies but allow access to other markets with similar characteristics (much volume and / or small ticks). These systems are not only for futures or forex as some people have inquired. They are applicable to any instrument.
In the footprint several visual improvements have been made to make the visualization more friendly. As larger sources for imbalances, display of unfinished auction lines. As well as the information areas of the candles. Several corrections have been made. In the unfinished auctions in the control points and in the value areas which were not perfectly corrected in the previous version. The footprint brings a new and important trading signal. The absorptions. The graphic delta is displayed locally. In other words, with respect to the candles that are shown on the screen, as a whole, it was not possible to differentiate this data well between the candles. All this is being peer reviewed. A team of traders to ensure that the implementation is correct.
The footer indicator from the previous version is loaded separately to avoid consuming resources in the machine if it is not used. As with other parts of the package with the same objective. This also allows a simpler configuration for the end user.
In the footer a magnifying glass has been added that permits to visualize the values in narrow vision. In addition, the action of hiding the texts to be ” pixel perfect” has been perfected. The possibility of placing the footer identifiers on either side has also been added to allow the visualization of the values in more compact candle configurations.
This package brings a large trades indicator used by many traders to determine the market zones where most activity occurs and possibly a large operator by detecting iceberg orders. This adds another powerful tool to the trader’s arsenal.
This version of the toolkit incorporates a heatmap of the order book for operators that use this type of signals in their operations to detect the pivot points. This has multiple color configurations (a total of 5) for the user to choose the one that best suits their visual capacity.
In the COTForce, new changes have been added in order to improve its visualization as well as allowing the analysis of it locally at the request of one of the clients.
The ToolBar has been improved so that the buttons that are displayed can be configured. They are also initialized with the values of the indicators.
All these variables / signals are used and verified by many traders that use the order flow methodology.
In this review, we will be discussing some of the key features of SimpleFX. SimpleFX aims at being the easiest CFD trading tool, perfect for the beginners. They offer a wide range of instruments, a handy and secure API manager that opens new opportunities for advanced traders, as well as an attractive referral program managed by a 3rd party real-time affiliate software. In this review, we will be discussing some of the key features and verifying if what the company claims is true.
SimpleFX wants to deliver a fast, reliable, multi-device tool for both novice and experienced traders when it comes to offering trading apps. The broker offers everything from native Android and iOS apps to proven desktop solutions like MetaTrader 4. However, the company’s flagship product is the award-winning SimpleFX WebTrader app, which has been recently relaunched in a completely new look and indeed provides a smooth and intuitive trading experience. With a mobile-first design and one-tap quick trading feature, it has the best look-and-feel among the contemporary CFD trading solutions.
All the trading applications offer traders a range of attractive tools. They include real-time streaming quotes, API, multiple charting options, direct deposit buttons, trading statistics, multiple graph viewing, graph oscillators, amongst many other features.
SimpleFX backs its mission with the account features. To make CFD trading accessible they not only offer fully functional demo accounts in many base currencies (including crypto) but also live accounts with no minimum deposit and Negative Balance Protection. You will find many fast, secure ways to transfer your funds to and from a SimpleFX account – from Skrill, Neteller, Dash or Ethereum, to local banks and service providers.
Here are some examples of SimpleFX accounts.
Unique Cryptocurrency Account
The SimpleFX’s Unique Multi-Currency Account emerges as one of the main attractions on the platform. The users of Unique Bitcoin Account are given certain exemptions, such as no minimum deposit, as well as zero charges for deposits, leverage from 1:2 to 1:500 and a 24/7 open market.
SimpleFX’s Standard Account comes handier to traders who wish to trade in traditional currency markets, covering currencies such as AUD, CAD, CHF, CNY, CZK, DKK, EUR, GBP, JPY, NOK, PLN, RUB, SEK, and the USD. It includes traditional payment services like Neteller, Skrill, Rapid Transfer by Skrill and FasaPay.
The main features offered by SimpleFX trading platform include:
Very low market spreads;
Minimal transaction volume 0.01 lot for currency pairs and 1 lot for indices and oil;
Leverage up to 1:500 (depending on the account balance);
Trading Ideas a captivating social trading feature that allows the users to share their opinion on cryptocurrency, stock or forex trends,
A content website with a dedicated editorial team that provides online courses, classes, and tutorials, as well as news and analysis useful for day traders.
SimpleFX addresses customer inquiries through a dedicated cell via email, ticket system 24/7. The broker provides its customer support in English, Spanish and Portuguese.
Overall, SimpleFX fulfills the promise. At the moment it is the easiest trading tool available. The SimpleFX WebTrader looks and feels great on every device we tested it on (desktop, Android and iOS), and the API manager opens all the sophisticated features for advanced traders. The spreads and accounts are attractive, while the wide range of money transfer services outscores the competition. We also enjoyed the intuitiveness of SimpleFX WebTrader and ability to execute scalp trades. The platform also supports hedging, which makes it a good spot to anchor long-term investments.
New version of TradingFuturo Order Flow Professional 1.8 coming soon.
This new version was heavily refactored to be a modular indicator package.
Two errors were corrected in the unfinished auctions and the POC that could affect the operation.
The percentage of the area of value per candle is configurable by the trader to the needs of its operation in this version.
A large change was made in the volume profile, which has been separated as another indicator. New capacities and functionalities were added to it as dynamic change of the size of the texts. The color configuration of the positive and negative delta texts was added. This was reorganized in such a way that it occupies less space in the chart and allows more information to be displayed in the same area. Now the texts are hidden when the chart is compressed so that they do not pile up providing little information.
The footer was also separated as an accessory indicator that can be charged or not to the preference of the traders. In addition, the position of the name on the sides was made configurable, which facilitates the operation in narrow vision.
In addition, more configurations were set up, such as the sources of each part of the indicator. A volume filter was placed on the profile of each candle that allows traders to focus on the higher volume bars. This is configurable at the choice of the trader. In the figure it is shown with a filter of 300.
A toolbar was added to quickly change the chart settings according to the needs of the trader. View in bid / ask or volume / delta, hide / show the lines of the POC. Hide / show unfinished auctions. As well as the imbalances.
This new version was refactored totally to allow the capacity to process massive quantities of data. This makes this version acceptable for professional traders that operate with great quantity of market data.
It corrects an error in the cumulative delta that was being calculated during every tick instead of at candle closing.
Professional edition brings an indicator called CotForce that allows us to visualize possible trend reversal per price level according to filter chosen by the trader.
It includes filters of orders by volume at the request of some users. The developing of value area is also visualized for each individual candle. It has newer parameters in the footer like finish delta, cumulative delta percentage, and the delta of the value area, as well as many cosmetic and visual changes as a change of color in the imbalances indicators, bolding of imbalance text, etc.
The bar imbalances can be colored in order to get different approach if the imbalance to the ask or bid. Also we got arrangement in the closing of the candle so that is marked if it went to the bid or the ask.
In this version we have included Unfinished Auctions that are signals of price attraction.In other words, areas where the price is highly likely to return. Usually in about 20 minutes.
We also included the diagonal imbalances as some traders prefer to use this type of imbalance. There are five shapes that can be configurable:
Do not show any
Show only horizontals
Show diagonals only
Show both independently
Show imbalances only when both exist (logical AND operation)
Unlike other indicators we prefer to put them with a line because it is more visual or less confusing than to increase the size or to shade it.That option we will put later for the people accustomed to that configuration.
We also put the possibility to hide the main chart and allow to show only the volume profile and/or the order book for people who prefer to use another indicator, but who needed a order book for NinjaTrader 8.
Here is an example in which we combine TF Order Flow 1.6 with an indicator from another vendor (to which we are not associated in any way)
This version corrects an error that did not allow to operate correctly in Forex markets and manifested due to the little difference of value of each PIP. As well as minor cosmetic corrections including some leaks that occurred under some conditions in the rendering.
This version can be downloaded in this forum thread:
Volume Spread Analysis also known as VSA is a tool to study the relationship of price and volume looking to predict the short-term direction of the market.
This tries to analyze:
Range / Dispersion or difference between the maximum and the closing (do not confuse with the bid / ask spread).
Range closing price (is the closing price close to the top or bottom of the bar?)
This analysis tries to look for or study the causes of price movements in the market. These are based on the main cause that is simply the imbalance between demand and supply that is created by professional operators. The VSA then studies the interrelationship between these three variables and the possible short-term movement of the market.
Livermore was a great trader who made several great fortunes in trading and also lost them product of errors. He left several basic rules of trading and his theory was mainly about the manipulation of the market. He was not a great educator but rather a trader. However, he never left concrete trading methods.
Wyckoff was an authoritarian figure in the stock markets. He was also editor of the Stock Market Technique magazine. But more than trader was an educator. However he made a great fortune as a trader. He proposed the idea of the “composite trader” to explain the phases of the markey, accumulation, distribution, markup and markdown.
A qualified trader is able to clearly identify in which of these four phases the market is located:
Accumulation (professionals buying at wholesale prices)
Mark-up (bullish movement)
Distribution (Professionals who sell at retail prices)
Mark-down (bearish movement)
He further explained the market through three laws or principles:
Tom Williams worked in a union (Smart Money) and later based on the ideas of Wyckoff and Livermore, created what is now known as Volume Spread Analysis or VSA. The Williams technique completely ignores the opening of a bar and uses the maximum (high), the minimum (low) and the closing.
In which markets does VSA work?
Volume Spread Analysis focuses on price, volume and also seeks to find the manipulations of professional traders (or Smart Money). As long as the market has a group of professionals and the data is accurate, the conditions for using VSA in that market are maintained. That way almost all the markets, Stocks, Futures, Forex, etc. adapt to these conditions. However in Spot Forex markets the volume is somewhat complicated as tick volume is used and this technique may not be applicable.
This type of analysis continues to be valid, falls on the classical volume analysis type and complements other types of analysis of higher resolution such as Order Flow.
If you would like to know more about VSA and download indicators for it’s analysis, I invite you to join my forum where you can get the tools and also learn about the subject.
The point of control is simply the price at which the largest trading volume has been made over a period of time (buy/sales).
This point is a rare point in the market because it is an indicator that can be observed before and not exactly when the price change occurs.Most indicators say “here is the point where the price is about to change” but few can say so far in advance where the price will go.Therefore it is very useful data besides easy to calculate.It does not carry complicated mathematics like oscillators.
The Control Point (POC) can be viewed as a sort of center of gravity towards where the price is going to move.These also allow to optimize the stops from previous data of the market.
The POC also defines virgin control points or VPOCs.These are points of control that have not been touched by the price.The VPOC could also refer to the Volume Control Point.