TABLE OF CONTENTS Why Trade UK100? Which UK100 Strategy is Best for You? GBFalc

TABLE OF CONTENTS Why Trade UK100? Which UK100 Strategy is Best for You? GBFalcon UK100 The Strategy Step 1: Spotting The Trend Step 2: Filtering the Trend Step 3: Focusing on Trade Opportunities Step 4: Execution Execute the Trade and Manage Your Risk RAPTOR for UK100 The Strategy Step 1: Spotting the Trend Step 2: Filtering the Trend Step 3: Finding Trade Opportunities Step 4: Execution Execute the Trade and Manage Your Risk What’s Next? Extended Learning S 4 4 5 5 5 6 7 8 8 9 9 9 9 10 11 11 12 12 2 TRADING INDICES WITH FXCM Dear Trader, I’m Walker England, educator at DailyFX, and I want to teach you how to trade one of the most exciting CFDs (contracts for difference): stock indices. When you trade CFDs with FXCM, you can easily take broad market positions on a variety of stock indices from around the world. Plus, our single sign-on access lets you trade stocks, forex and other CFDs all on the same platform. WHY TRADE INDICES THROUGH FXCM? No Re-Quotes: Enjoy fast, efficient trade execution without expensive re-quotes1 Competitive Pricing: Gain exposure to global markets with our low spreads No Commission: Trade commission free on all FXCM products2 Leverage: Gain access to leverage by trading on margin3 Hedging Capability: Go long or short in a single index trade Micro CFDs: Trade the global market on any budget The strategies in this guide are designed by me and my team at DailyFX to get you comfortable trading the index market. ONE NOTE: For the strategies, I’ve used FXCM’s proprietary Trading Station platform, which you can download for free. SO, LET’S GET STARTED. Happy Trading, Walker England Forex Trading Instructor Twitter: @wenglandfx INSTRUCTOR SPOTLIGHT: WALKER ENGLAND Expertise: Short-Term Strategies, Scalping, Price Action Analysis, Risk Management Walker is an education instructor for DailyFX, specializing in short-term trading strategies for forex and CFD products. He holds degrees in Economics and Finance from Texas State University. His primary focus is trading, with more than 12 years of experience across international markets. Walker actively publishes market articles and produces educational webinars for DailyFX. 1 No Re-Quote Policy: FXCM maintains a no re-quote policy. Circumstances exist based on order size, trading pattern, and market conditions where individuals may not receive execution at the requested rate. Orders are executed at the next available rate within the trader's parameters, subject to market conditions. The difference between the requested rate and final execution price may be more or less advantageous based on the market activity and available liquidity. 2 Compensation: When executing customers trades, FXCM can be compensated in several ways, which include, but are not limited to: adding a mark-up to the spreads it receives from its liquidity providers, receiving compensation for order flow, and charging commission to accounts that trade with FXCM's lowest spreads which are available to qualifying accounts. Under the Dealing Desk execution model, FXCM may act as a dealer and may receive additional compensation from trading. 3 Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors. Risk Warning: Our service includes products that are traded on margin and carry a risk of loss to all of your deposited funds and may not be suitable for all investors. Please ensure that you fully understand the risks involved. 3 WHY TRADE UK100? The London Stock Exchange is one of the largest in the world, with nearly 3,000 companies listed from around the world. Now, traders all over look for good, cheap ways to trade a basket of UK stocks. FXCM’s UK100 index is the answer. UK100 tracks the 100 top-performing companies in the London Stock Exchange. With FXCM’s low transaction costs, a good trading strategy, and the advantage of leverage (which can magnify gains as wells as losses), you’re ready for any market condition. This UK100 Trading Guide gives you the ins and outs of two unique trading strategies and the technical indicators that help determine buy and sell signals. Feel free to test these strategies on a free FXCM demo account, which has live UK100 prices, on our proprietary Trading Station platform. WHICH UK100 STRATEGY IS BEST FOR YOU? Like the speed and excitement of day trading? Then the GBFalcon UK100 strategy may be for you. Or are you more of a long-term trader? Then RAPTOR for UK100 is your best bet. DID YOU KNOW? UK100 Averages 3,500 pips of monthly movement— use UK100 to trade moves in the UK market. 4 GBFalcon UK100 Day trading on shorter timeframes can be beneficial, especially to those traders with busy schedules. The good news is the analysis itself also doesn’t have to be overly complicated. The GBFalcon UK100 strategy is designed to get you in on the right side of UK100 when it’s overbought or oversold, and then get you out before prices reverse. THE STRATEGY There are four steps to finding opportunities in our GBFalcon UK100 strategy. 1. SPOTTING - Use a 30-minute chart to find the direction of the UK100 trend 2. FILTERING - Confirm the trend by filtering with a 200-period EMA on a five-minute chart 3. FOCUSING - Once the trend is confirmed, use MACD to find shifts in trend momentum 4. EXECUTING - Buy or sell using two orders for multiple exits STEP 1: Spotting The Trend Looking for the trend is as straightforward as checking your graph for higher highs or lower lows—can you see an uptrend or downtrend from across the room? Use a 30-minute chart to see if UK100 is on a tradable trend (expand your chart out to a week or two). Below is an example of a downtrend, where price moves consistently to lower lows. Note that the trend lasts more than six trading days—this adds validity to your market bias (bullish or bearish). Once a trend is established, buying and selling decisions are easier: You want to buy in an uptrend and sell in a downtrend. If no upward or downward trend is found, now isn’t a good time to execute our UK100 strategy. A TREND The general direction price moves over a defined time period. 5 EXPONENTIAL MOVING AVERAGE Retail traders and seasoned professionals from banks and hedge funds use EMAs, increasing the indicator’s validity. STEP 2: Filtering the Trend We need to filter the trend further to support our strategy. A great tool to filter the trend is an Exponential Moving Average (EMA) indicator set to 200 periods. The 200-period EMA spots directional shifts in the market and can be used as a level of support and resistance. Once the broader trend has been established from Step 1, switch your UK100 30-minute chart to a five-minute chart (click Chart, Show Data Range, Five Minutes, then 1 Day), then add an EMA (right-click on your chart, click Add Indicator, then select EMA and enter 200 in Periods). In an uptrend, only look to buy UK100 if the current price is above the EMA line; in a downtrend, only look to sell if price is below the EMA line. If the price is exactly on the EMA line, then wait for better UK100 trading opportunities that meet these parameters. 6 200 EMA 6,589 03/06/2014 10:30 6,834 EMA (UK100,Close,200): 6,699 Only Sell in a Downtrend When Price is Under the 200 EMA MACD OSCILLATOR Gives an easy-to-identify entry point by revealing shifts in momentum back in the direction of the trend. Step 3: Focusing on Trade Opportunities With steps 1 and 2 establishing our trend, we can check the market for opportunities to find and execute a trade. Use the Moving Average Convergence/Divergence (MACD) oscillator (right-click on your chart, click Add Indicator, then select MACD). Here’s how you use the MACD to find a sell signal. First, watch for MACD to move under the zero line that divides the oscillator horizontally. When the red MACD line crosses back below the blue line, execute your sell trade. Conversely, in UK100 uptrends, only buy when MACD is over the zero line and the red line crosses above the blue line. 7 6,580 03/06/2014 9:30 03/10 4:00 14:30 03/11 12:00 03/12 9:30 03/13 7:00 EMA (UK100,Close,200): 6,697 MACD (UK100,Close,12, 26, 9) - MACD: -10.10 SIGNAL: -7.58 HISTOGRAM: -2.52 10.00 0.00 -10.00 -20.00 Only Enter Sell Positions on MACD Crossovers Under the Zero Line EXECUTE THE TRADE AND MANAGE YOUR RISK Always have a defined risk tolerance when entering into a trade. The GBFalcon UK100 stop price is always based on the current 200-period EMA price line. Use a little wiggle room and place stops below the EMA line when buying or above when selling. GBFalcon UK100 utilizes a two-lot system with different limit points (where you take your profit). LOT ONE: Use a 1:1 risk-reward ratio. Set the stop price and limit price each an equal number of pips from the entry price. If the stop is uploads/Finance/ uk100-guide.pdf

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  • Publié le Apv 03, 2022
  • Catégorie Business / Finance
  • Langue French
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