Author: Simon Cristian

Categories: Introduction to MQL5

How to Install MQ5 Indicator: A Step-by-Step Guide for Forex Trading

by Simon Cristian

Installing a MetaTrader (MT4 or MT5) indicator on your trading platform is a simple process. Once the .ex4 or .ex5 file that you downloaded is located on your computer, simply open your MT4 or MT5 platform and click on “File”, then “Open Data Folder”. This will open the folder where all the files for your MT4/MT5 platform is stored. Then simply drag and drop (copy/paste) the indicator .ex4/.ex5 file into the “Indicators” folder. Restart your MetaTrader platform and the indicator should now be installed. Once restarted, open the “Navigator” window if it’s not already open and you should see the indicator under “Indicators”. You can then attach the indicator to any chart on your platform and start using it.

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Categories: Formula

Pearson Correlation Coefficient Formula: A Guide for Traders

by Simon Cristian

The Pearson Correlation Coefficient is an important formula used in the forex market to measure the degree of correlation between two currency pairs. This formula takes the prices of two currency pairs and determines the extent of movement between the two currencies. It helps traders to determine which currency pairs are associated with each other and potentially provide trading strategies. The Pearson Correlation Coefficient uses a value range between -1 and +1 to indicate a strong correlation, while a value of 0 indicates no correlation. A negative correlation (values from -1 to 0) means that the currency pairs move in opposite directions and a positive correlation (values from 0 to 1) means that the currency pairs move in the same direction.

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Categories: Ratio

Understanding the S&P 500 P/E Ratio for Forex Trading

by Simon Cristian

The S&P 500 Price Earnings (PE) Ratio is a key indicator used to gauge the performance of the leading stocks in the US equity markets. The PE Ratio is the price of an equity share divided by its current earnings. In the forex world, the PE Ratio can be used as an indication of the perceived relative valuation of stock indices, currencies, or countries. As the S&P 500 PE Ratio moves, it can provide insight into the overall market direction, which affects currency prices. With the PE Ratio you can measure the relative value of currencies to the US equities markets, aiding in your overall decision making process in the FX markets.

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Categories: Capital

Invested Capital Formula in Forex Trading: An Academic Overview

by Simon Cristian

The Invested Capital formula is a fundamental concept in Forex trading. This formula is used to calculate the amount of money that is being invested in a currency pair. It takes into account the current exchange rate, as well as the size of the position that is opened. It is important when trading in the Forex market because it can be used to determine the amount of risk that is associated with each position. The formula for Invested Capital is used by traders to evaluate the risk versus reward of their trading position, and to make informed decisions when entering and closing trades. Additionally, it can be used to determine whether a position is profitable or not. By calculating Invested Capital, Forex traders can have a better understanding of their risk and reward when entering and closing trades.

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Categories: Market

Stockmarket and Its Impact on Forex Trading

by Simon Cristian

The stock market and Forex markets offer a unique opportunity for both novice and experienced investors to make profits. With the stock market, investors can buy and sell stocks of publicly listed companies, while the Forex market allows them to trade in currency pairs and speculate on the price movements of those currencies. Both markets provide a high level of liquidity and can offer a potentially lucrative investment platform for investors. However, understanding how stock markets and Forex markets work is essential for enjoying long-term success and minimizing risks.

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Categories: Financial

How to Transition from Financialization to an Asset Owner Economy

by Simon Cristian

The shift from a financialization economy to an asset owner economy requires a fundamental transformation of how we view and manage our finances. This transformation requires that we rethink our relationship with money and our views on how it should be used as a tool to store, generate, and spend wealth. We must shift towards an emphasis on ownership and tangible asset accumulation as the goal of money management, instead of relying solely on financial instruments and short-term gains. This shift would mean an increased focus on investing in longer-term assets such as stocks, bonds, real estate, and collectibles, with an aim of long-term wealth growth and security. Additionally, we must reconsider our traditional capital investments and develop strategies that prioritize diversification and measures such as liquidity and risk management. Ultimately, the aim of this transformation is to move away from a cycle of short-term fixes and leverage, building a more secure and stronger overall financial system for all.

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Categories: Ratio

Understanding Nifty Advance/Decline Ratio in Forex Trading

by Simon Cristian

The Nifty Advance-Decline Ratio is a reliable measure of the overall health of a currency market. It is a ratio of the number of advancing stocks to declining stocks in a given period, calculated for a specific index or market segment. The Nifty Advance-Decline Ratio is a useful tool to identify overbought or oversold conditions in the market, and can help in predicting future price movements. The ratio can also be applied to individual currency pairs to give insight into their relative strength or weakness. With the Nifty Advance-Decline Ratio, traders can judge whether the forex market is in a general uptrend or slump, or if there is a particular currency pair that is particularly strong or weak.

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Categories: Cash

Cash Conversion Cycle: A Guide to Forex Trading”.

by Simon Cristian

The Cash Conversion Cycle (CCC) is a measure of a company’s liquidity, efficiency, and profitability. It is calculated by taking the average of the days sales outstanding (DSO), inventory days, and days payable outstanding (DPO). The CCC determines how long a company’s cash is tied up in each of the three areas of operations. It is important to note that while cash flow may remain positive, a company can still be overinvested in one of the components of the CCC. Companies may use foreign exchange strategies to minimize the effects of currency movements on the cash conversion cycle.

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Categories: News, Order

Troubleshooting Magic Keys Pending Order Activation

by Simon Cristian

Despite having met all the requirements, a pending order for a magic key did not activate. This failure can be incredibly disheartening for Forex traders looking for a successful investment opportunity. The uncertainty of why the order was not processed can be unpredictable, often leaving traders with unanswered questions and a potential sense of distrust in the currency trading platform or broker they are dealing with. With no guarantee of success, due diligence is the most effective strategy to ensure the best chance for a profitable outcome.

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Categories: Formula

4%+Rule+Formula: Key to Successful Forex Trading

by Simon Cristian

The 4% rule is one of the most renowned formulae in Forex trading. It can be applied in any type of trading – from short-term Forex trades, to long-term investments. This rule states that a trader should never risk more than 4% of their account balance on any single position. By using the 4% rule, a trader can manage their risk exposure and set a limit to the drawdown of their account. This simple, yet effective method can be used by both novice and experienced traders alike, as it encourages consistent risk management and profitable trading.

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