Forex System Selector Tutorial
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Forex System Selector Tutorial
User Guide to FSS Platform
Forex Capital Markets – FSS Tutorial 1
05/21/2009 1. PLATFORM FEATURES P. 1
A.Positions Tab P. 1
Opening a Manual Trade P. 2
Closing or Modifying a Trade Signal P. 3
Columns ad Navigton P. 4
B.Portflio Tab P. 5
Adding a New System P. 5
C. Management Settings P. 6 Fixed Lot P. 6
RaiFixed Frctonal . 7
Making Chages to an Existing Portfolio P. 8
Using Multi Change Function P. 9
D. Reverse Trade Function P. 8
E. Portfolio Equity Curve P. 11
F.History Tab . 12
G. Accounts Tab P. 12
H.Performance Tab P. 13 Columns P.14, 5
ncio 6
Forex Capital Markets – FSS Tutorial 2
05/21/2009 1. PLATFORM FEATURES
Developed by traders for traders, the automated trading platform was developed to overcome
most pitfalls that both Forex traders and investors face every day in the markets. The
software is designed to help its traders overcome barriers such as emotion, fatigue and the
common mistake of overleveraging ones account.
Trading on the Forex System Selector will grant you access to over 40 automated trading
systems from signal and system providers all over the world. You will be able to automate
trade execution and management, customize your ...
Publié par
Langue
English
Forex System Selector Tutorial
User Guide to FSS Platform
Forex Capital Markets FSS Tutorial 05/21/2009
1
1. PLATFORM FEATURES A. Positions Tab Opening a Manual Trade Closing or Modifying a Trade Signal Columns and Navigation B. Portfolio Tab Adding a New System C. Management Settings Fixed Lot Fixed Ratio Fixed Fractional Making Changes to an Existing Portfolio Using Multi Change Function D. Reverse Trade Function E. Portfolio Equity Curve F. History Tab G. Accounts Tab H. Performance Tab Columns Conclusion
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P. 1 P. 1 P. 2 P. 3 P. 4 P. 5 P. 5 P. 6 P. 6 P. 6 P. 7 P. 8 P. 9 P. 8 P. 11 P. 12 P. 12 P. 13 P. 14, 15 P. 16
1. PLATFORM FEATURES Developed by traders for traders, the automated trading platform was developed to overcome most pitfalls that both Forex traders and investors face every day in the markets. The software is designed to help its traders overcome barriers such as emotion, fatigue and the common mistake of overleveraging ones account. Trading on the Forex System Selector will grant you access to over 40 automated trading systems from signal and system providers all over the world. You will be able to automate trade execution and management, customize your own portfolio strategies, and view a backtested-based performance of your portfolio. A. POSITIONS TAB Once you log in to the platform you will see the following screen:
The positions tab of the platform allows you to see open positions, account balance, margin levels and any other information pertaining to the status of your account. The status of each trade/signal is color-coded for easy identification of profit, loss or pending trade. RED Trade is Open, but in loss. GREEN Trade is Open, but in Profit. BLACK Pending Stop/Limit Order, not yet active. The platform auto updates the positions and live rates every few seconds, clients can use the <F5> function to manually refresh positions. The currency exchange rates are displayed on the left hand side of the positions tab.
F0o5r/e2x1 /C2a0p0i9t al Markets FSS Tutorial 3
Opening a Manual Trade To open a manual trade, click on the “New Manual trade line just below the positions tab.
A new box will appear that will allow you to en ter the trade parameters for your manual trade. If you do not wish to have a stop loss or take profit you can leave the boxes blank. If your Forex System Selector account is held with Forex Capital Markets LLC (FXCM) , opening a manual trade can affect current or future system generated trades. Due to NFA regulatory requirements, hedging is not allowed with Forex Capital Markets LLC accounts. Therefore, trades placed with the same currency pair but on the opposite side of the market will not hedge, but will instead net (close) each other out. Forex System Selector accounts held with Forex Capital Markets (FXCM UK) allow for LTD hedging, as theses accounts are under FSA re gulation, which does not restrict hedging. Opening a manual trade with this account will not affect any trading signals as the platform will hedge accordingly and maintain all open positions.
** This platform is not intended for self trading purposes. If you anticipate a large volume of manual trades, we recommended our FXCM Trading Station II platform. Manual trades placed on the Forex System Selector platform also include a $1 round turn commission per 10(K) lot traded (in addition to the bid/ask spread compensation to FXCM).
0Fo5/r2e1x /C20ap0i9t al Markets FSS Tutorial 4
Closing or Modifying a Trade Signal It is possible to modify the limit, stop, or close a trade signal on the open positions tab of the platform by clicking on the line of the trade. This will open up more information on the trade, when it opened. For the changes to take e ffect you must click on the Apply button.
Please note that if the signal provider sends an update to change the stop loss or take profit AFTER your changes, the signal provider’s stop loss will override your level. If you close a position early and the signal provider sends an order to close, it will have no effect. It will not open a new trade in the opposite direction, the platform identifies orders to open and close differently. Columns and Navigation
Account: The client account number. Ticket: Refers to the trade ticket number. If you need assistance it allows for identification of the trade. System: Which system or signal provider dispatched the trade. Pair: The currency pair that is being traded. Type: Whether the trade is Long (buy) or Short (sell) Amount (k): The trade size measure in thousands; for example, 10 is 10K or a mini lot. Price: The open price of the signal.
Fo/r2e1x /C20ap0i9tal Markets FSS Tutorial 5 05
S/L (Stop Loss): The current stop value of your position * A 300 pip stop loss will be added if a stop is not provided by the system provider. However, the provider can override the 300 pip stop at any time. T/P (take profit or limit): The current Take Profit of positions. P/L: The current profit of loss for the trade measured in pips Gross P/L: The current profit of loss for the trade measured in USD. Edit: Allows users to adjust the stops/limit or close open positions. Please note this feature is only active on live accounts.
Forex Capital Markets FSS Tutorial 05/21/2009
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B. PORTFOLIO TAB Adding a New System To add a new system you can click on the link on the top left near the portfolio tab to access all available systems on the platform.
After clicking <Add New System>, the user will be faced with a list of available systems to choose from along with the historical performance of the systems.
Clicking on the plus icon allow the user to set money management for a new system, clicking on the ADD button places the new system in the clients’ portfolio. ** PLEASE NOTE USERS NEED TO HIT THE APPLY BUTTON FOR NEW SETTINGS TO TAKE EFFECT ON THE ACCOUNT:
Forex Capital Markets FSS Tutorial 05/21/2009
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C. MONEY MANAGEMENT SETTINGS By pressing the edit button on the right side the client can change the money management parameters of that system.
Fixed Lot With the fixed lot method you basically set how many lots you want to trade for a particular system. No matter how much the account grows or shrinks you will keep trading this position size. This is fairly straight forward. As discussed earlier, we strongly recommend that you should be very careful using excessive leverage in your portfolio.* A basic example of this method is saying I have a $10,000 account and I will trade 2 mini lots on every trade. It’s that simple. * Without proper risk management, a high degree of leverage can lead to large losses as well as gains. Pros: Easy to set-up and understand, client has consistent lot size. Cons: Does not provide ability to maintain a constant leverage as account balance increases/decrease. Fixed Ratio With this method you predetermine how many lots you will trade for every x amount in your account. In other words the system increases the lot size accordingly as that SYSTEM (not the portfolio) accumulates profit or shows loss, hence rewarding the higher performer with more lots and vice versa. For example a client has $10,000 and wishes to increase the lot size by 10K every time a system shows a $2000 profit. So when the profit of that system reaches $2,000 the lot size changes to 0.2 (20K) and so forth. Pros: Excellent for a large account trading multiple and complex strategies whereby the account is prone to adverse and volatile balance swings. Cons: Not suitable for smaller accounts trading a small number of pairs. Such a client can manage positions and leverage more efficiently through Fixed Lot method. Fixed Fractional
Forex Capi9t al Markets FSS Tutorial 8 05/21/200
This setting allocates a % risk of the account balance to the trade based on a stop loss level. VERY IMPORTANT: The stop loss of the trade ne eds to be predetermined for the software to calculate the lot size to apply to the trade. E.g. An aggressive trader wishes to allocate 5% risk to a system, knowing the signal provider us es an 80 pip stop loss. They insert risk: 5%, stop loss: 80 pips, the software will make the lot size calculation accordingly. The stop loss will not override the stop loss of the signal provider, it is for lot size calculation only. Pros: Excellent method to mange risk per trade. Cons: The trader will need the system’s proprietary information regarding the average Stop Loss prior to set-up.
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D. REVERSE TRADE FUNCTION This tool allows the users to take the opposite side to a trading signal. For example, Signal provider A sends a signal in the following format: EUR/USD Buy Market SL: 1.3400 TP: 1.4200 The system will reverse all the commands with the following trade being placed on your account: EUR/USD Sell Market SL: 1.4200 TP: 1.3400 The trade will be displayed in the positions tab of your account with the system name and (R) beside it to denote a reversal trade. It is important to note that if a system loses 100 pips in a EURUSD trade and you have the reversal trade your account will only show 97 pi ps profit (assuming 3pip spread), due to the fact that your entry is paying the spread to open: Signal Provider Sends Signal: Buy Market EURUSD SL: 1.3400 TP: 1.3500 EURUSD is currently trading at 1.3450/1.3453 The primary trade will have this in place: Long EURUSD (ask) 1.3453, SL: 1.3400 TP: 1.3500 . If the trade is stopped out the client and performance record loses 53 pips. (1.3453-1.3400). The reversal trade will look like this: Short EURUSD (bid) 1.3450 SL: 1.3500 TP: 1.3400. Another very important factor to note is the trade may be stopped out on the primary trade but TP not filled on the reversal as the bid might hit the Stop Loss, but the ask may not touch the Take Profit Level. For example, in the above case if the EurUsd low was 1.3399/1.3402, then the Stop loss would be hit on the primary trade but the reversal would remain open, as the ask price (the quote on the right) did not touch the TP (Take Profit) level. Making Changes to an Existing Portfolio To make changes to an existing system you can use the edit icon to make your money management changes. Simply click on <PROCEED> then <APPLY>. Once you have completed these steps the next rules will take place on the next signal received.
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Forex Capital Markets FSS Tutorial 05/21/2009
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