Mission:

 To build a profitable Expert Advisor able to return enough  dollars to make an unreasonable profit on very little investment, protected from severe market drawdown!

The Forex Market is the world of Currency Trading.  There are Major pairs and minor pairs.  Some of the major pairs include the British Pound vs the US Dollar,  the Euro vs the US Dollar,  the US Dollar vs the Swiss Franc to name a few.  The major pairs are considered to have the most movement in their prices. 

In this market (and other markets) there are terms which should be defined or at least known.  Here are some of those terms.

OPEN a position - Opening a position means that you have purchased currency and are in hopes of making money before you get out of the market.

CLOSE a position - Closing a position means that you have purchased currency and have now decided to get out of the market hopefully with a profit.

A BUY position - means that you have purchased currency in hope that the market will rise (or go north) according to the viewed chart for the currency.  This is often talked about as opening a LONG position or a LONG trade.

A SELL position - means that you have purchased currency in hope that the market will fall (or go south) according to the viewed chart for the currency.  This is often talked about as opening a SHORT position or a SHORT trade.

A PIP is an acronym for Performance Index Paper.  Investopedia.com has a great explanation.  For our purposes, a pip is a measure used on Forex Charts which shows that a currency has changed value.  A PIP can represent many different values.  For one forex investor a pip may be worth $0.10 and for another a pip may be worth $1.00 or $5.00 or more.  A one (1) pip rise may mean that the market for a particular investor has increased or decreased his position by his pip value.  This is dependent on the currency he purchased and whether he purchased a BUY or a SELL position.

Slippage - is understanding and deciding to allow your broker to purchase a position for you 'so many pips' away from your actual request.  For example:  You asked the broker to OPEN a BUY position for you at 2.0720 on the GBP/USD chart and you allowed him to get you in within (we will say) 3 PIPs. In this case the slippage allowed was 3 pips.  Slippage occurs because the broker's computer system is too busy at a given moment in time.

MANUAL ordering and AUTOMATIC ordering - MANUAL ordering is when you as an investor is actually placing your open orders or closing your open orders into a computer system tied to your broker.  AUTOMATIC ordering is when you have your computer PROGRAM like Metatrader place an open order or close an existing open order according to computer code written by you or your programmer or some application you purchased to use on top of your MetaTrader platform.

INDICATOR - is an algorithm or defined process either viewed manually by the investor or deciphered by computer code that gives insight to the investor as to possible movement, north or south, rise or fall, of a given currency.

EXPERT ADVISOR - aka EA - is typically considered to be computer code that has been programmed to look at specifics or indicators of one sort or another as defined by the programmer in an attempt to place orders that in turn will be profitable to the investor once closed. 

BROADBAND CONNECTION - is a high speed Internet connection and used to access information and connect to your broker of choice via the internet.  In our opinion, this is a MUST HAVE situation.

HARDWARE REQUIREMENTS  and SOFTWARE REQUIREMENTS - These are requirements focused on your computer system which includes everything associated with the computer you will use to trade in this market.  For example:  We require that you use the METATRADER platform on top of WINDOWS XP and that your computer is attached to an Uninterruptible Power Supply and is setup to NOT upgrade it's software during the use of the EA. 

METATRADER - is a software package written specifically to trade in the Forex Market.  It is usually given to a new investor by his broker.  Not all brokers offer the use of a software package like MetaTrader.

SPREAD - is the difference between the BID and ASK price of a given currency.  The GBP/USD typically has a 4 pip difference between the BID and ASK.  The spread varies from time to time and from currency to currency. 

PAYING YOUR BROKER - occurs each and every time you OPEN an order.  It costs you 4 pips (on the GBP/USD pair) to open a position. For example:  If you open a GBP/USD BUY position at 2.0704, the price of the currency must rise at least 5 pips for you to get back out of the market with a 1 PIP profit.  The point is that the broker gets paid every time you place an order and gets paid immediately. This is talked about as the broker getting paid "on the way in".

FOREX EDUCATION - There are many ways to get educated on the Forex Market. We happen to like http://Investopedia.com for a thorough explanation of terms.  http://www.investopedia.com/university/forexmarket/ is a great place to learn all about the Forex Market.

OTHER FOREX EDUCATION - There are many folks on the web that offer classes and information on the Forex Market.  Buyer beware.  Some education offers are designed to attract buyers for the purchase of software and or services.  Some of these have much value and others do not.  Due diligence is important here.

FREE FOREX ADVISOR .com - is the work of several programmers who have been involved in manual and automatic trading in the forex market looking for an AUTOMATIC method to trade in the forex.  These programmers have been working for over 2 years and have tested literally thousands of lines of code to make this happen.  We are not educators in Forex but we will tell you how to get started and ultimately use the FreeForexAdvisor to trade the Forex market automatically.  Our EA is FREE to use for 4 week periods.  We do charge a prep & handling fee to put your Account number into the EA  and process it, then Email it to you for your use.  You choose whether you want to use it again for another 4 week period.  We hope you choose to do so.  Please be sure to educate yourself on the Forex market and how it functions.  The author of this page along with every other Forex Investor has lost money in the Forex Market.  The ultimate goal is to make more money than you lose. We believe that FREE FOREX ADVISOR.com can help you in that goal.

UPS, DOWNS and DRAWDOWN - The forex market is the trading of currency and each side wants his value in currency to rise and not fall.  As a result the tug of war in currency prices forces the value of a currency to move UP and DOWN often referred to as the UPS and DOWNS. When an investor begins to trade the forex initially and beyond, that investor must have a balance on account with a forex broker.  Here is an example of drawdown.  If an investor has for example $500 in his account, and he opens a buy position in the GBP/USDm the broker immediately takes 4 pips for his commission to place the trade into the Forex Market.  The investor had immediately experienced a DRAWDOWN of 4 pips.  If the currency value begins to fall, the investor is experiencing additional DRAWDOWN.  Let's say that the market falls 25 pips before beginning to rise again, the investor experienced a 29 pip drawdown (25 pip market fall plus the 4 pip commission).  Now let's say the market begins to climb and rises to 50 pips above the buy point and the investor closes his position.  That "trade" had a 29 pip DRAWDOWN before coming back into the investor's favor and closing as a winning trade.  Some "trades" can have hundreds of pips of drawdown and if the investor chooses to "ride" this wave in hopes of it returning as a winning trade then his balance with his broker must be able to handle the drawdown.  One of the major goals of FreeExpertAdvisor.com was to build an EA that had very little drawdown.  This is why it would appear that this EA places very few trades and that to the naked eye viewing a chart,  many open positions are bypassed or so it seems.  The FreeExpertAdvisor EA is programmed with algorithms that work very hard to avoid potentially destructive trades and drawdown that can occur in the waves of the currency prices.

 

Disclaimer US Government Required Disclaimer- Forex, options and futures trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the forex markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell forex, options or futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.   CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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