So, for an investor who wants to trade $100,000, a 1% margin would mean that $1,000 needs to be deposited into the account. The remaining 99% is provided by the broker. No interest is paid directly on this borrowed amount, but if the investor does not close their position before the delivery date, it will have to be rolled over. In that case, interest may be charged depending on the investor's position (long or short) and the short-term interest rates of the underlying currencies.
In particular I would like to make the system a lot faster, since it will allow parameter searches to be carried out in a reasonable time. While Python is a great tool, it's one drawback is that it is relatively slow when compared to C/C++. Hence I will be carrying out a lot of profiling to try and improve the execution speed of both the backtest and the performance calculations.
The concept of carry is straightforward. The trader goes long on the currency with a high-interest rate and finances that purchase with a currency that has a low-interest rate. For example, in 2005, one of the best pairings was the NZD/JPY cross. The New Zealand economy, spurred by huge commodity demand from China and a hot housing market, saw its rates rise to 7.25% and stay there while Japanese rates remained at 0%. A trader going long on the NZD/JPY could have harvested 725 basis points in yield alone. On a 10:1 leverage basis, the carry trade in NZD/JPY could have produced a 72.5% annual return from interest rate differentials without any contribution from capital appreciation. This example illustrates why the carry trade is so popular.

This top list represents the final rating based on applying each Forex robot live performance results to a common exclusive formula which till us which is the best and the worst one regarding its profitability vs time, profitability vs drawdown and some more measurements, all gathered together to arrange the positions and ratings in this top list table.
The concept of carry is straightforward. The trader goes long on the currency with a high-interest rate and finances that purchase with a currency that has a low-interest rate. For example, in 2005, one of the best pairings was the NZD/JPY cross. The New Zealand economy, spurred by huge commodity demand from China and a hot housing market, saw its rates rise to 7.25% and stay there while Japanese rates remained at 0%. A trader going long on the NZD/JPY could have harvested 725 basis points in yield alone. On a 10:1 leverage basis, the carry trade in NZD/JPY could have produced a 72.5% annual return from interest rate differentials without any contribution from capital appreciation. This example illustrates why the carry trade is so popular.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
After writing the last entry, I realised that I really wanted a way to be able to backtest forex strategies in much the same manner as I had demonstrated previously with equities via the event-driven backtester. I wanted there to be as minimal a difference between the live trading environment and the backtesting system. Hence I decided that I needed to build a Portfolio component that would reflect (as much as possible) the current state of the trading account as given by OANDA.
Imagine that you have $10,000 on your account account, and you have a losing position with a margin evaluated at $1,000. If your position goes against you, and it goes to a $9,000 loss, the equity will be $1,000 (i.e $10,000 - $9,000), which equals the margin. Thus, the margin level will be 100%. Again, if the margin level reaches the rate of 100%, you can't take any new positions, unless the market suddenly turns around and your equity level turns out to be greater than the margin.
Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using Admiral Markets UK Ltd, Admiral Markets Cyprus Ltd or Admiral Markets PTY Ltd services, please acknowledge all of the risks associated with trading.
Options involve risk and are not suitable for all investors. For more information read the "Characteristics and Risks of Standardized Options". For a copy call Interactive Brokers' Client Services on 312-542-6901. Before trading, clients must read the relevant risk disclosure statements on our Warnings and Disclosures page - http://www.interactivebrokers.com/disclosures. Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see http://www.interactivebrokers.com/interest. Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, read the Security Futures Risk Disclosure Statement. For a copy visit http://www.interactivebrokers.com/disclosures. Structured products and fixed income products such as bonds are complex products that are more risky and are not suitable for all investors. Before trading, please read the Risk warning and Disclosure Statement at http://www.interactivebrokers.com/disclosures. There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.
Slippage - Slippage is the difference between the price that the strategy object saw when deciding to buy or sell and the actual price achieved when the broker executes a fill. Given the multi-threaded nature of the program, slippage is extremely likely to be one of the causes of the differences between the local balance and OANDA account balances.
The Odin Forex Robot uses an advanced grid trading strategy to find high probability entry points in the market, targeting reversals and trends to catch big moves for a good amount of pips. Odin Forex Robot will open, manage and close trades for you, just make sure that you keep an eye on it to see how the performance is going. The Odin Forex Robot developer does share performance statistics on the official Odin Forex Robot website which are very impressive over the long term although I would like to see these results verified by myfxbook or FX Blue for extra peace of mind. Odin Forex Robot includes a broker shield feature in an attempt to avoid unsuitable broker conditions. It comes with set files for 20 popular forex currency pairs although I would personally prefer to trade the major pairs such as the EURUSD & GBPUSD as they tend to have the lowest spreads and lowest slippage due to the amount of liquidity, they have most of the time. Odin Forex Robot also uses a tight stop loss and take profits whilst locking in profits.
In the last Forex Trading Diary Entry (#1) I described how to build an automated trading system that hooks into the OANDA forex brokerage API. I also mentioned that the next steps included constructing a portfolio and risk management overlay for all suggested signals generated by the Strategy component. In this entry of the diary I want to discuss my attempt to build a functioning Portfolio component and how far I've currently progressed.

At this stage the "risk management" is rather unsophisticated! In the method calc_risk_position_size below we are simply making sure that the exposure of each position does not exceed risk_per_trade% of the current account equity. risk_per_trade defaults to 2% with the keyword argument, although this can obviously be changed. Hence for an account of £ 100,000, the risk per trade will not exceed £ 2,000 per position.
What caught my attention at first glance, is its exaggerated price that doesn't reflect the profitability of the software in any way but gives it an important advantage as it won't be used by so many traders what will make its live market performance highly effective and successful if it was already well coded and configured, but for me, I won't risk a $2000 in a software without a clear refund policy. They say in the website that they provide 60-Day Money-Back Guarantee if the Robot doesn't WORK! which means that if the robot worked and was a loser, you don't have the right to request a refund, it finally worked on your platform regardless of its results.
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