Ufo propu engine, closed loop

[ltseung888]

From a Senior Citizen, "I do not mind opening a Demo account to past my time. However, I know nothing about Forex trading, can you post pointers to Forex Trading? Will you answer questions on strategies used to turn 200K to 5m?"

Forex tutorial
To all those who want to have some fun on Forex.
My advice is to play with demo accounts until you know the game. In demo account, you play with fake or virtual money. You can enjoy without losing your hard earned cash. I shall post what have been helpful to me.

(1)    Basic tutorial for beginners 1: http://www.investopedia.com/university/forexmarket/
(2)    Basic tutorial 2: https://www.oanda.com/forex-trading/learn/intro-to-currency-trading/
(3)    Youtube video: https://www.youtube.com/watch?v=jo4z26THnpo
Study the above information and try to explain to others. Encourage them to ask questions until you feel that you have mastered the basic knowledge.
(4)    Find more than one FOREX broker and open demo accounts. Treat a FOREX broker as a "casin o". Every broker has slight variations in Leverage, trading pairs offered, minimum margin requirements etc. Choose at least two with demo accounts and play.
(5)    From google on best Forex brokers in Hong Kong: http://topforexbrokersonline.blogspot.hk/2015/04/7-best-forex-brokers-hong-kong-2015.html

The key strategy to use is Short (Sell) RMB. Wait for RMB to devalue and buy RMB back (Close the Position). The pair to look for is USD/CNH.

First trade result on USD/CNH

Earned profit = HK$7,029.98

[font=]Amount $[/font][font=]‪[/font][font=]750,000.00 (using leverage 1:100 effectively committed $7,500)
Opening Value ¥[/font][font=]‪[/font][font=]5,144,925[/font]
[font=]Close Value [/font][font=]¥[/font][font=]‪[/font][font=]5,151,150[/font]
[font=]Opening Rate 6.8599[/font]
[font=]Close Rate 6.8682[/font]
[font=]Open Time 1/30/2017 10:09 AM[/font]
[font=]Close Time 1/30/2017 3:51 PM[/font]

[ltseung888]

First trade result on USD/CNH

Earned profit = HK$7,029.98

Now I appreciate why Forex Trading has daily trading volume exceeding 5 trillion USD. It is very addictive. Once a trader makes some money, it is difficult to keep him away. (I am one of those now.)

The Spot Forex Market trades on derivatives. That means no physical currency changes hands. However, it will affect the actual currency exchange rate.

When there is too much thin-air money, a way must be found to keep it away from causing too much inflation. One way is to use it to trade numbers (derivatives). China has to learn this game sooner or later.

[ltseung888]

Knowledge gained from first trade.
(1)    The opening buy of RMB was at 6.8599 with profit limit at 6.8800 and stop loss at 6.8400.
(2)    The set-up was a possible gain of 200 PIPs or loss of 200 PIPs.
(3)    I went out to visit friends.
(4)    When I came home, I closed the position at 6.8682. The gain was 83 PIPs. Each trade spread was 19 PIPs. The gain in PIPs was 45(83-38). That translated to a profit of HK$7,029.98.
(5)    I was happy to earn something significant in my first trade. Thus, I closed the position well before 6.8800.
(6)    The lesson learned was to put in profit and loss limits when one is not watching the Forex transaction movements. There is peace of mind.
(7)    The limits were deliberately set high (200 PIPs) so that in normal conditions, the limits were not reached.
(8)  The opening and closing difference must be more than 38 PIPs to make a profit. When the observed difference was 83 PIPs, taking profit was reasonable.
(9)    There is much jargon here. Make sure you study the tutorials well – so that you can follow my logic.

[ltseung888]

 Second Forex Transaction
(1)    Loss of HK$-7,636.53 due to trailing stop.
(2)    I opened the position at 6.8635 with profit stop at 6.8800 and stop loss at 6.8400 as before.
(3)    Not understanding trailing stop too well from the tutorials, I decided to play with it. The default was 60 PIPs. I increased it to 90 PIPs.
(4)    I went out for dinner with relatives.
(5)    When I got home, the position was closed at 6.8545.
(6)    Now I learned the lesson at over 7,600HKD virtual money. The Trailing stop was a moving position. If the prices goes up, the stop also moves up. When the price moves down, the trailing stop remains and gets activated after dropping 90 PIPs.
(7)    Thus my setting the stop limit at over 200 PIP was effectively overruled. There is no point in setting two stop limits. (I shall use the normal Stop Loss more.)

[ltseung888]

Third Forex Transaction


(1)    Gain of HK$8,146.47 due to Market Call (hitting profit limit).
(2)    I opened at 6.8545 with profit stop at 6.8645 and stop loss at 6.8400.
(1)    I chose 100PIPs as profit (need to minus 38PIPs) and decided to wait for Market Action.
(2)    The position was closed at 6.8648 – 3 PIPs above my limit.
(3)    The lesson is that there will be more action if the profit limit is set low but above 38PIPs.
(4)    Not bad. I got addicted even with virtual money.