Dear traders and readers,

For a long time, I did not write articles here. There were several reasons, but the good news is that I am writing again articles. This is however under my new username FxTopSystem, click here to visit.

The articles written on FxTaTrader were good ones but by doing different types of research I found that there are easier ways for getting a certain ranking of the currency pairs. They do differ but by searching for the one you prefer you can get to one that servers your need. The simplest one is the count of pips during a period or the percentage change, these can be found on many financial websites and are plotted as Currency heat maps.

Another type is the so called "Currency strength" which are moving averages of each currency for a selected Time frame. Several good ones can be found by searching for "Currency strength" at e.g., MetaTrader.

My articles were more than just a comparison of currencies and that can still be found in my new articles. Although I do not use anymore the ranking of currencies, I developed another way of looking at the currencies. Depending on the Economies and Market situations they behave in a certain way. We all watch and read news and articles and that is one of the ways that I developed myself. A few examples that can be used when trading is e.g. knowing how Commodity currencies behave in certain market situations and what is e.g. the position of the JPY against these Commodity currencies.
What are safe havens and what is risk appetite and risk aversion. These are a few examples, and these examples have all impact.

Because the market is always looking for the perfect value for each currency, money flows depending on market conditions. However, it is far too difficult to always understand everything and in hindsight it is always easy. My interest in automated trading started to grow because testing an automated strategy tends to adapt itself to market conditions. In other words, it will always try to generate the best profit in any market conditions.

Automated trading was something I was sceptical about because it seemed that only changing values of an indicator would be a holy grail. I changed my view on automated trading once I noticed how it can add support to the changing market circumstances. I trade the Daily and the 4 Hour chart, that is the shortest time frame that I trade.

When you read my articles on FxTopSystem you will see the correlation between the trades made by the automated systems called Expert Advisors (EAs) and the market conditions. Of course, the EAs will not be able to predict the future, but they are optimized in such a way that they can give a stable return when used over a longer period. It means that for certain market conditions they will not give the maximum result because that would mean they are curve fitting. This is not recommended, which is why the EAs are tested over a very long period. This way they give stable results. At the same time, they also need to be flexible enough to move with changing market conditions, but without curve fitting.

This is the challenge of optimizing EAs to give good results over a long period of time and this is what I have learned and done over the years. I couldn't have done this without first writing my articles on FxTaTrader. Just like I couldn't have written articles about FxTaTrader if I hadn't learned other things first. It's a journey through learning all kinds of things to get better at what you do every time.

I invite you to check out my new articles under my new account FxTopSystem and hope you would like to follow me there on TalkMarkets.

Kind regards and until the next article.

Frank Oznar

DISCLAIMER: This article is my personal opinion, not recommendations, FX trading is risky and not suitable for everyone. The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'FX Trading Journal' purposes only. Nothing should be construed as a recommendation to purchase any financial instruments. The choice and risk are always yours.