Setting Up Your Trading Platform&Demo Account zero&

Demo Account

If you are a new FOREX trader, you should download the demo of at least four

or five broker/dealers and spend a few hours working with each of them.

The second criterion is the feature set. Does the trading platform have

the tool set you need and the money management capabilities? Appendix B

Setting Up Your Trading Platform&Demo Account zero&

FIGURE 8.1 Sample Chart 1: A 10-Minute, 1-Day Chart.

Colors, chart size, and time frame can all create a different look and feel.

Experiment with a variety of trading stations and find the ones that seem

best to you. Then stick with them.

Setting Up Your Trading Platform&Demo Account zero&

FIGURE 8.2 Sample Chart 2: A 10-Minute, 5-Day Chart.

Shading, color (if you use other than black and white) and sizes can alter

the appearance of a chart dramatically.

Source: FXtrek IntelliChart™.

contains a list of broker/dealers meeting codex requirements with respect to

feature set. None of them have everything, however. As I have mentioned,

swing charts are not popular right now and are more difficult to find.

All retail broker/dealers offer a demo account. (See Figure 8.3.) Try at

least five of them, more if possible.

Be sure a trading platform has as many as possible of the tools you need

and use. You can find almost anything from third-party vendors, but the more

your primary platform includes, the better and easier it is for the trader. Just a

few of the more popular: Most brokers ask for only the basic information to open a demo account.

FIGURE 8.3 The Account Due Diligence Process.

Be sure a trading platform has as many as possible of the tools you need

and use. You can find almost anything from third-party vendors, but the more

your primary platform includes, the better and easier it is for the trader. Just a

few of the more popular:

Most brokers ask for only the most basic information for a Demo

account but you will be on their mailing list.0

Setting Up Your Trading Platform The two most critical features you will need to trade the codex approach are bar charts and flexible stop capabilities. If you can trade from the chart, that

will be a small but significant advantage. Some of the newer dealer platforms

118 DEVELOPING A TRADING CODEX

FIGURE 8.3 The Account Due Diligence Process.

 

Setting Up Your Trading Platform

allow you to simply click on the chart to execute a trade, rather than manually enter a price.

One feature I miss is being able to set the range values on charts; these are

automatically set for the trader when the trader selects the time scale.

If and when you trade multiple markets, you will probably want a computer

system with two separate monitors. You can, of course, keep multiple browser sessions

open, but clicking from one to another can be distracting. One of the monitors

will be for your actual trading activities, the other(s) for your charts.

For trading the codex method, you need three bar charts for each pair or

cross you are trading. How you organize charts is up to you. Experiment as

much as you like, but be fully satisfied with the arrangement before trading.

After you’ve selected a broker/dealer and a trading platform, it is time

to set it up for trading. Having spent some time with the broker/dealer’s

demo account, you should be comfortable with the methods for doing a simple

setup. The key elements are your charts. You’ll want full visual reference

to your three bar charts according to your trader profile for the USD/EUR. If

you have space, add the primary (middle chart time frame) of three other

pairs (not crosses) that appear to meet your personal codex criteria.

The author had hoped to show the reader a typical trading platform

setup. We asked permission from five different broker-dealers: Gain Capital,

EFXgroup,  Gain Capital was kind

enough to reply and was anxious to oblige, but because of third-party charts

was unable to oblige. The others did not respond to our request.

I recommend the serious FOREX trader have at least a 20-inch widescreen

monitor with a high-end graphics card. Many traders use multiple monitors;

I’ve seen systems with a dozen monitors. I use two monitors—one for my

dealing station and one for my charts. You can manage everything on one

monitor but the constant opening, closing, and resizing of windows can be distracting

and time-consuming.

Initially you will find following three charts for a single pair to be a full

time job. As you gain experience you will become more comfortable watching

multiple markets. Everyone has a limit, in psychology it is called ‘channel

capacity’ and your trading method also impacts how many markets you can

track comfortably. My limit seems to be five or six and I am very comfortable

with three or four.

Source: FXtrek IntelliChart

Setting Up Your Trading Platform