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MONEY MAKING SECRETS IN FOREX:

This guide is to help you to diversify your account and manage it in balanced way to avoid margin
calls! We will discuss some money making secrets!

1. Correlated pairs:
Have a look at this web site it will show the correlation between pairs:
https://www.mataf.net/en/forex/tools/correlation

Here you see that eurusd and gbpusd correlates 96%. This means that if you trade both pairs
the chance is high that the EA will go in draw down on both pairs and that the draw down will
either be in sells on both pairs or in buys on both pairs. Most accounts get wiped because of
this mistake by an unexperienced traders!

So the rule is you either don’t trade correlated pairs on one account or you allow the one to
only buy and the other one to only sell using the panel on the chart.

You can see on the screenshot above how you can control the EA to only buy or only sell. You
have to set this up from the beginning and not in the middle of a series of trades.
All the EA’s on https://orangeforex.ru/ of the 3 authors have this panel on the chart that you
can use to control the direction in which the EA will trade.

The rule is to allow at least 3k per pair but if you allow gbpusd to only buy and eurusd to only
sell you can still allow 3k for both pairs as the chances of both going in draw down at the same
time will be small.

(Remember that you have to take into account the the one pair will have negative swap fees,
see no. 2)
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2. Swap fees:
A swap fee is basically a “rollover fee” and is charged when you keep a position open
overnight. A swap is the interest rate differential between the 2 currencies of the pair that
you are trading and is calculated according to whether your position is long or short. This
swap fee results from the interest rate difference between currencies, with the”size”of the
swap influenced by the volume of currency traded.

Positive swaps are generated by buying a currency (the base currency) with a higher interest
rate against a currency with a lower rate (the quote currency). In this instance, the investor
generates a profit for holding a position overnight.

Consequently, a negative swap comes from buying a currency with a lower interest rate
against a higher rate, which causes a debit for holding an active position overnight.

For example selling eurgbp only, will result in positive swap fees if you hold this position
overnight.

Have a look at above screen shot, all eurgbp short positions have positive swap fees.
Remember on Wednesdays swap fees are tripled:
If a position is held overnight on a Wednesday (to Thursday), the normal swap rate is tripled.
This is because spot forex trades have a 2-day settlement period; an FX trade closed on
Monday settles on Wednesday, a trade closed on Tuesday settles on Thursday, etc.

You can use this swap fees calculator:


https://www.xm.com/forex-calculators/swaps#forex-calculator
Keep in mind that markets aren’t open on weekends, but trades can still be held over this
period. By charging triple swaps on a Wednesday, this effectively accounts for holding trades
over the weekend.

Have a look at these swap fees of gbpusd long positions, if you are in a big draw down these
fees can build up over time!
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So the best solution is to allow your EA to only sell pairs with a positive swap fee for short
positions and vice versa, but be careful about allowing correlated pairs like eurusd and
gbpusd to sell and buy together as they can go in draw down at the same time! The best is
not to trade both of them on one account!

Contact your broker about swap fees.

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