Mr G, volatility is part of the formula to cost up the option in the first place. From the price of options actually traded in the market then, it's possible to calculate the value of volatility used to create the option price - thus it's implied ...

IFR Markets [FX Option Implied Vol Updates]

Thanks for the 'enlightenment' gspajon but you're still missing the point. Xaron already pipped me to the post - it's about probabilities. It is deceptive as evidenced by you saying you need to aim for more than you risk. You don't. At all.

Taking Profit > Stop Loss. Why?

Good find BlackMage - I came across Olsen a while back in another interview about order flow; he's a clever man and no mistake. Here's another interesting one (equities not FX but easy enough to extrapolate): url

High Frequency Trading!

HFT a possibility? — I always assumed that HFT was beyond the realms of the typical retail trader. Because of latency and execution being so important, you need a technical edge as well as a strategic one, and to maintain that edge I'm ...

High Frequency Trading!

It is a deceptive concept, I'm not sure I'd say it's basic. You're assuming that the increase in profitability is greater than the decreasing frequency of wins. To the original poster, I'd toss the R:R cliche in with a whole host of other misleading ...

Taking Profit > Stop Loss. Why?

Exactly - same with IB. This is for an automated strat. Saving the spread seems a fairly arbitrary amount; the more I think of it, I'm sure it should be based on volatility (so it could be less than spread or more). When you've done this, I take it ...

Price improvement strats with ECN

where to start? — I think the thread should be cobblers cliches (because to be fair, some are true). "You'll never go broke taking a profit".

Trading Clichés

The biggest lie ever perpetuated is that most simple systems are profitable if you just follow the rules. I blame Mark Douglas and the awful Trading in the Zone. The finest quote that sums it up is from acrary elsewhere on this board - psychology is ...

The Miracle of Discipline, by Rob Booker

A drop in GBPUSD would be most likely, though if there was a long lead up, it could get priced into pair before it actually happens. Can't see it happening though, not many ministers in public support of Purnell right now.

if UK PM Brown quits...

This seemed more of a warning shot across the bows not to let inflation spiral out of control in the US. Either that, or they're jawboning it down to buy more... Great info on correlations btw.

How To Make 1000's of Pips by NFX

Interesting take on it NT, and my economics skills could definitely do with a sharpening. Particularly on correlations. Agree that MA systems are a waste of colour but not that all intraday movement is noise, as there is tradeable cause and effect ...

How To Make 1000's of Pips by NFX

Always an event? — NT, nice post, and no question in my mind about what the effect of fundies (though how long before someone says it's all in the chart?), but are they always events, or more series of evolving conditions? OK, in this case, ...

How To Make 1000's of Pips by NFX

Sure. Because there doesn't seem to be many people here using Currenex, IB or any of the bigger brokers, you usually only get to hear about them when it goes t*ts up. 2-4 pips every now and then I can live with. Multiple that by 100 and I'm very ...

Help choosing an ECN...

Lot of useful input on here, much appreciated all. My over-riding concern with all of them is huge slippage (or gapping really). I know I can protect with limit orders for entry, but I'll always be exposed on the stops once entered. url Makes for ...

Help choosing an ECN...

Boston, I've looked over a few Currenex brokers and just trying to get my head around it: url Seems like there are two types of Currenex broker: url (pasting these for the benefit of anyone else looking...) This guy reckons the true white labels ...

Help choosing an ECN...

Ah, I came across that list last night and ploughed through them, although half seem have gone into liquidation since they compiled it. Not looked at BT though, will give it a once over, thanks for that.

Help choosing an ECN...

thanks both. Lubo - what kind of slippage stories have you got? Have you been trading with them for long? I'm guessing the FIX API while better is going to scramble my brain, so IB's 3rd party software maybe preferable. You had much experience with ...

Help choosing an ECN...

Interactive Brokers do - don't trade with them though - looking for a new broker myself...

which non MT4 brokers support DDE