Amazing Automated Forex Robot - The No Loss Robot

The trading system that the No Loss Robot™ uses is derived from our own manual trading system we used for several years. During that time we came up with our advanced method of determining a trend change quickly. This was extremely important in order to get every possible pip we could from our trades. By entering quickly we get the full run of the trade and exit appropriately.

After years of trading manually we realized our limitations. Since we are only human we were missing many trading opportunities overnight while we slept, showing up too late to enter the next morning. Not only that but we wanted more free time away from our computers. That's when we discovered we could write our own Forex Robot. And the rest is history!

Everyone always says money management is crucial and they're right! That's why our robot has built in calculations to make sure it is only trading a certain percent of your available account balance. Money management is extremely important in any kind of trading.

The No Loss Robot™ can automatically determine whether the market is trending or ranging and adjust itself accordingly. That means no matter what type of market it currently is our robot is ready. We adjust to the market in order to properly predict potential trades. Most other robots can only trade off one type of market, while ours can cover both successfully! Please be sure to read our risk disclaimers at the bottom of the page.

We have designed our robot to work on unlimited number of currency pairs. That means you can have an unlimited number of currencies being traded all at once simultaneously. Inside the robot are settings it uses depending on the currency pair it is applied to.

We could fill a book with all of the other features we have programmed into the No Loss Robot™. But I'm sure you are much more interested in the bottom line: It's actual results!

We told you earlier we had actual results from the No Loss Robot™. The numbers below are from a real live account. Please be sure to read our risk disclaimers at the bottom of the page and remember past results are not indicative of future results.

We told you earlier we had actual results from the No Loss Robot™. The numbers below are from a real live account. Please be sure to read our risk disclaimers at the bottom of the page and remember past results are not indicative of future results.

Click Here! to get your the No Loss Robot™ instantly for a low one time payment of $149.00!

Pivot Point Trading by Mark Mc Rae

You are going to love this lesson. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations.

The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels.


Every day the market you are following has an open, high, low and a close for the day (some markets like forex are 24 hours but generally use 5pm EST as the open and close). This information basically contains all the data you need to use pivot points.

The reason pivot points are so popular is that they are predictive as opposed to lagging. You use the information of the previous day to calculate potential turning points for the day you are about to trade (present day).

Because so many traders follow pivot points you will often find that the market reacts at these levels. This give you an opportunity to trade.

Before I go into how you calculate pivot points, I just want to point out that I have put an online calculator and a really neat desktop version that you can download for free HERE

If you would rather work the pivot points out by yourself, the formula I use is below:

Resistance 3 = High + 2*(Pivot - Low)
Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
Support 3 = Low - 2*(High - Pivot)

As you can see from the above formula, just by having the previous days high, low and close you eventually finish up with 7 points, 3 resistance levels, 3 support levels and the actual pivot point.

If the market opens above the pivot point then the bias for the day is long trades. If the market opens below the pivot point then the bias for the day is for short trades.

The three most important pivot points are R1, S1 and the actual pivot point.

The general idea behind trading pivot points are to look for a reversal or break of R1 or S1. By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries.

A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position.

Unfortunately life is not that simple and we have to deal with each trading day the best way we can.

I have picked a day at random from last week and what follows are some ideas on how you could have traded that day using pivot points.

On the 12th August 04 the Euro/Dollar (EUR/USD) had the following:
High - 1.2297
Low - 1.2213
Close - 1.2249

This gave us:

Resistance 3 = 1.2377
Resistance 2 = 1.2337
Resistance 1 = 1.2293
Pivot Point = 1.2253
Support 1 = 1.2209
Support 2 = 1.2169
Support 3 = 1.2125

Have a look at the 5 minute chart up.

The green line is the pivot point. The blue lines are resistance levels R1,R2 and R3. The red lines are support levels S1,S2 and S3.

There are loads of ways to trade this day using pivot points but I shall walk you through a few of them and discuss why some are good in certain situations and why some are bad.

The Breakout Trade

At the beginning of the day we were below the pivot point, so our bias is for short trades. A channel formed so you would be looking for a break out of the channel, preferably to the downside. In this type of trade you would have your sell entry order just below the lower channel line with a stop order just above the upper channel line and a target of S1. The problem on this day was that, S1 was very close to the breakout level and there was just not enough meat in the trade (13 pips). This is a good entry technique for you. Just because it was not suitable this day, does not mean it will not be suitable the next day.

The Pullback Trade

This is one of my favorite set ups. The market passes through S1 and then pulls back. An entry order is placed below support, which in this case was the most recent low before the pullback. A stop is then placed above the pullback (the most recent high - peak) and a target set for S2. The problem again, on this day was that the target of S2 was to close, and the market never took out the previous support, which tells us that, the market sentiment is beginning to change.

Breakout of Resistance

As the day progressed, the market started heading back up to S1 and formed a channel (congestion area). This is another good set up for a trade. An entry order is placed just above the upper channel line, with a stop just below the lower channel line and the first target would be the pivot line. If you where trading more than one position, then you would close out half your position as the market approaches the pivot line, tighten your stop and then watch market action at that level. As it happened, the market never stopped and your second target then became R1. This was also easily achieved and I would have closed out the rest of the position at that level.

Advanced

As I mentioned earlier, there are lots of ways to trade with pivot points. A more advanced method is to use the cross of two moving averages as a confirmation of a breakout. You can even use combinations of indicators to help you make a decision. It might be the cross of two averages and also MACD must be in buy mode. Mess around with a few of your favorite indicators but remember the signal is a break of a level and the indicators are just confirmation.

We haven't even got into patterns around pivot levels or failures but that is not the point of this lesson. I just want to introduce another possible way for you to trade.

Forex Leverage

One of the big reasons that forex trading is an entirely different animal than stock trading or futures trading is leverage. Forex trading leverage can be enormous, as high as 400:1, and in most cases you get to choose the amount of leverage or gearing you want to trade with.

Super high leverage is a selling point for many online forex brokers. How many times have you seen the tout "control $100,000 of euro for $250"? Those numbers are correct, and, yes, the profit potential of super high leverage is compelling.

This article neither encourages nor discourages forex trading at super high leverage. That's a personal decision, but a decision that can only be made sensibly with a professional understanding of all the implications of leverage and what they mean to your chances of prospering at forex trading. It's probably fair to say that unless you have a professional understanding of leverage that your chance of even surviving at forex trading is slim to none.

One of the fundamental terms of forex trading is PIP. You will see that XYZ Broker charges 3 PIP per deal, or that the XY currency pair has an average daily range of 100 PIP. We all know that the value of a PIP is a variable that differs with each currency pair, but did you know that the value of a PIP also varies with the current price of the base currency, and with the gearing on your account?

For example, with EUR/USD at 1.2723 and leverage at 100:1 the amount of a PIP is $7.86. At 200:1 leverage the PIP value doubles to $15.72. For forex traders with different gearing a 100 PIP move means entirely different things to their account equity.

Here's a new way to look at leverage with the "K Factor". The three most common leverage ratios available from online forex brokers are 50:1, 100:1 and 200:1. The K Factor for the 100:1 leverage ratio is 1. The K Factor for the leverage ratio of 50:1 is .50, and the K Factor for the leverage ratio of 200:1 is 2.

How can you use the K Factor?

There are three ways to use the K Factor. The first is using the K Factor to calculate the value of a PIP for the currency pair you are trading.

Since 100,000 individual currency units (usually dollars or euros) is the normal size of a single lot you can calculate the value of a PIP with this formula:

(100,000/current price with no decimal) * K Factor = PIP

Here's an example: The EUR/USD current price is 1.2723 and your leverage is 100:1. With these facts the formula is:

(100000/12723) * 1 = 7.86.

The value of a PIP is $7.86. If your forex broker executes your trade at a spread of 4 PIPs you are paying $31.44 for executing the trade whatever euphemism the broker happens to be using for ‘commission'. If your leverage or gearing is 200:1 that execution will cost you $62.88.

The second way you can use PIP and the K Factor is to quickly determine the potential profit in a trade, or to know to a certainty the actual dollar risk in a stop-loss setting.

For example, if you go long the EUR/USD at 1.2723 and anticipate a move to 1.2850 what profit can you anticipate at 100:1 gearing?

12850 - 12723 = 127 PIP * 7.86 = $998.22 - execution cost.

If you objectively set your stop loss at 1.2715 what amount are you risking in this trade?

12723 - 12715 = 8 PIP * 7.86 = $62.88 + execution cost.

The third way to use the K Factor is to avoid what the forex brokers call the "safety net", and what I call "kill but do not dismember."

Margin is not a down payment. It's cash-on-hand, your cash, that the broker uses to protect its own capital account from your mistakes. That's all well and good because the global forex market will continue to work only if all participating brokers have adequate capital to meet their customers' settlement obligations.

If losses from current open positions cause the equity in your account to fall below that required to maintain the total number of open positions, the broker's trading platform will immediately close all your open positions, even when the unrealized loss on any individual position is quite small. Your loss is the aggregate number of PIP per position * K Factor + execution costs. In almost every case that's just about everything in your account. This is the broker's safety net because you will not lose more cash than you had in your account (as can and does happen with commodities futures accounts.)

The formula is:

(Starting Balance - Open Position Losses) / (($1,000/K Factor)* No. Open Positions) -1 < 10% = Kill But Do Not Dismember.

Most if not all broker platforms keep a running balance of your available margin to help you avoid this fatal situation. If you intend to trade multiple positions and fade into suspected price turning points you should consider setting up this formula in a spreadsheet so that you get an early warning long before the situation goes critical.

Mini accounts are based on 10,000 individual currency units with different margin requirements so make the necessary adjustment in the above formulas before doing the calculations.

The point is that Forex is a different animal than stock or even futures trading. Before you risk your money practice with a dummy account, get some professional training .