80-20rule80-20 Rule

DEFINITION of '80-20 Rule'

A rule of thumb that states that 80% of outcomes can be attributed to 20% of the causes for a given event. In business, the 80-20 rule is used to help managers identify problems and determine which operating factors are most important and should receive the most attention based on an efficient use of resources. Resources should be allocated to addressing the input factors have the most effect on a company's final results.

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BREAKING DOWN '80-20 Rule'

Hedging under new nfa regulation fifo(first-in,first-out)rule

Hedging under new nfa regulation fifo(first-in,first-out)ruleHedging under new NFA regulation: FIFO (first-in, first-out) rule

NFA Rule 2-43(b)

The NFA recently enacted Rule 2-43(b) which effectively eliminates hedging by forcing brokers to close trades on a First In First Out (FIFO) basis. The NFA has added clarification to the rule, stating that customers can instruct their broker to off-set like sized positions.

Some traders have expressed concern that the rule will negatively impact their trading outside of the obvious limitation on hedging. The position of the author is, FIFO will add a layer of complexity but should not negatively impact a traders returns.

Sample #1 – Pre FIFO

Limit: 1.4475

In this example Trade #2 hits its stop before Trade #1 hits its limit. Prior to FIFO Trade # 2's stop at 1.4250 would be applied directly to Trade #2.

Double oscillator forex trading strategy

Double oscillator forex trading strategyDouble Oscillator Forex Trading Strategy

Written by Danny Wesel

Learn a simple forex strategy to accurately buy dips in up trends and sell rallies in down trends. This technique can be employed on any currency pair and timeframe starting from 1 hour and above.

Used Forex Indicators . MACD (12,26,2), Stoch (5,3,3)

Timeframe's . 1 Hour and above

Currency Pairs . Any

Strategy Entry Rule

BUY Rule: Buy if MACD > 0 and Stochastic turns back above 20 from below.

SELL Rule: Sell if MACD < 0 and Stochastic turns back below 80 from above.

The picture above shows 3 profitable trades and 1 losing trade on the AUD/USD 1 hour chart. Buy dips in up trends and sell rallies in down trends.

Strategy Stop Loss Rule

BUY: Stop Loss Rule: Place stop loss 3 pips below the most recent support area.

SELL: Stop Loss Rule: Place stop loss 3 pips above the most recent resistance area.

Strategy Take Profit Rule

BUY: Take Profit Rule: Risk-to-reward 1:2

SELL: Take Profit Rule: Risk-to-reward 1:2

Day trading strategy rule#1

Day trading strategy rule#1Day Trading Strategy rule #1

You need a day trading strategy if you are going to profit from your online day trading activities, as no stock day trading tip will make you money automatically. This day trading strategy must be robust, simple to implement, and NOT involve you in any large drawdowns.

It must be robust because modern markets demand a resilient day trading strategy nowadays. Increasing volatility and expanding competition have made it more important than ever that your day trading strategy is watertight.

Your day trading strategy must be simple, because you will implement it every day. A complicated day trading strategy will soon tire you mentally and leave you struggling to remember the rules, especially at the pace todays markets move.

A good day trading strategy will NOT hit you with large drawdowns, as no matter how big your wins, large losses will demoralise you more than your wins will incentivize you.

Cfd trading and the80

Cfd trading and the80CFD Trading And The 80/20 Rule

Are you looking for simple CFD trading ideas that you can use in your CFD trading system to help you achieve higher profits from your CFD trading instantly. Well it is time that you looked at this, it will add excellent profits to your CFD trading.

The major problem is that a lot of CFD traders face is that they dont know about the 80/20 rule and the power of this rule. This rule is a common rule that is used everyday in business and this rule is very applicable to CFD trading. So what is the 80/20 rule, it is simply that 80% of your sales will come from just 20% of your clients. So how does this work in CFD trading?

It means that you will find that 80% of your CFD trading profits will come from just 20% of your trades - so what this means is that you should be doing less trades and focusing on the high odds trades. So what this means is that less trades is often better. So many new traders make the mistake of over trading, which more than often means they will end up broke.

The 80-20 rule is one education lesson that all new traders should learn as fast as they possibly can as it will make them a lot of money. For more free education lessons feel free to visit the CFD FX REPORT they have many free education lessons available and they can help you find the best CFD Broker in the market too.

Many inexperience CFD traders think they need to trade all the time and the more they trade, the more they will make in terms of profits. Most CFD traders therefore try and scalp and day trade and just take low odds trades and lose.

The professional CFD trader focuses on the long term trends and big profits and many trade just once a month or less and turn in 100% annual gains.

Once you learn how to use CFD charts you will often see that big trends will often last a long time, and in some cases months, so if you get into these trades hold them and trail up your stop loss this will improve your profits.

If you want to make more money in less time, focus your CFD trading on long term trend following via breakouts and only take high odds trades. If you do this, you will make a lot more money, with less risk and in less time.

Automated forex trading systems,rule-based strategies and free tools

Automated forex trading systems,rule-based strategies and free toolsAutomated Forex Trading Systems, Rule-based Strategies and Free Tools

PowerFlow EA

PowerFlow is a MetaTrader 4 Expert Advisor (fully automated currency trading system) which is packed with state of the art trading technology. It is easy to use and has been designed to return stable monthly profits while keeping the risk at the lowest possible level.

An advanced but easy to use rule based forex trading strategy, specifically designed for intraday and swing trading. It’s fully adjustable by the user and comes with built in alerts which decreases monitoring time. ProFx 3.0 can be used on all instruments supported by MT4 and does not depend on market conditions such as trend or range.

Forex Insider (Free)

Forex Insider is a truly unique Trading Tool which allows you to see the positions of other currency traders. With Forex Insider, you will know what other traders are doing which makes it easy to beat them on the forex battlefield. Data provided by MyFxbook.

Big scam

Big scamBig scam - youtradefx

FXCobra Banned for uncivilized conduct

Joined: Jun 30, 2012 Messages: 337 Likes Received: 2

To the point of debate, if it is true that israeli government allows companies to be located or operate there, even without letting israeli citizens to open account with, that will be a Scandal by itself because it will be as if the government is manipulating its own rule and letting citizens to do the same, taking advantage of holes in the rule.

What's that rule which makes it prohibited for some and allowed for others.

That will be a Big Shame to the Jews people a religion to be treated like that because the Penal Law is set in coordination of Gambling is prohibited for Jews.

As if the government disallows Casino Gambling but closes the eye on it being performed on ships in the sea(not telling a secret, the responsible people knows that!!) or a Jew can be the owner of the Casino but disallowed from participating, leaving it only to foreign people to gamble, is not a problem.

Or let the Tourism police stand on the entrance to discover who are Jews who are not, must remember to ask for the ID's not passports!

That's completely stupid, playing on violating the rule for personal, companies and mafias benefits.

The forex8020rule

The forex8020ruleThe Forex 80 20 Rule

Have you ever heard of the Forex 80 20 rule?

The Pareto principle (also known as the 80 20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. The principle was named after the nineteenth century Italian Philosopher, Vilfredo Pareto.

Pareto hypothesized that in a majority of countries around the world, 80% of the money and power was controlled by around 20% of the people.

When it comes to business, the common rule of thumb is 80% of your sales come from 20% of your clients. In Forex trading, it follows that 80% of your results will be generated by 20% of your efforts.

How do we apply this rule to Forex trading?

The popularity of trading on the Forex markets has lured people onto the band wagon before they are ready to trade. Scant preparation, little knowledge about the subject and excessive eagerness to be profitable have led to some disastrous results. See more on Markets

Novice and inexperienced traders are known to jump in to the market blind. Their trades are too large; they buy at the highs and sell at the lows. They don’t know how to interpret price movements or view informative graphs.

Tips for using the Forex 80 20 rule

To improve your chances of being successful at Forex trading, apply the 80-20 rule. Here’s how:

Avoid trading excessively. Your chances of being successful do not increase with the amount of trades you place.

Don’t engage in any short term trading like day trading. Day trading requires constant attention. Trades are made frequently resulting in short term volatility where the odds are mostly against the trader.

Go for long term trading. Trade using the best signals available. This reduces the amount of time you spend on Forex analysis.

Always trade using technical analysis. Look for breaks in support and resistance.

Manage your risk-reward ratio. Don’t take calculated risks on more than 20 per cent of your trades. Trade when the odds are in your favor.

Avoid over diversification in Forex trading. Although this may reduce risk, it also minimizes profits.

If you follow the Forex 80 20 rule as described above, you will put in less effort and make more profits. That is the goal of every Forex trader.

Share with other Traders

Money management the2percent rule

Money management the2percent ruleMoney Management: The 2 Percent Rule

The 2 percent rule is a basic tenet of risk management (I prefer the terms "risk management" or "capital preservation" as they are more descriptive than "money management"). Even if the odds are stacked in your favor, it is inadvisable to risk a large portion of your capital on a single trade.

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Larry Hite, in Jack Schwager's Market Wizards (1989) . mentions two lessons learned from a friend:

Hite goes on describe his 1 percent rule which he applies to a wide range of markets. This has since been adapted by short-term equity traders as the 2 percent rule:

This means that a run of 10 consecutive losses would only consume 20% of your capital. It does not mean that you need to trade 50 different stocks -- your capital at risk is normally far less than the purchase price of the stock.

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Applying the 2 Percent Rule

Calculate 2 percent of your trading capital: your Capital at Risk

Deduct brokerage on the buy and sell to arrive at your Maximum Permissible Risk

Calculate your Risk per Share:

Deduct your stop-loss from the buy price and add a provision for slippage (not all stops are executed at the actual limit). For a short trade, the procedure is reversed: deduct the buy price from the stop-loss before adding slippage.

The Maximum Number of Shares is then calculated by dividing your Maximum Permissible Risk by the Risk per Share.

Imagine that your total share trading capital is $20,000 and your brokerage costs are fixed at $50 per trade.

Your Capital at Risk is: $20,000 * 2 percent = $400 per trade.

Deduct brokerage, on the buy and sell, and your Maximum Permissible Risk is: $400 - (2 * $50) = $300.

Calculate your Risk per Share:

If a stock is priced at $10.00 and you want to place a stop-loss at $9.50, then your risk is 50 cents per share.

Add slippage of say 25 cents and your Risk per Share increases to 75 cents per share.

The Maximum Number of Shares that you can buy is therefore:

$300 / $0.75 = 400 shares (at a cost of $4000)

Quick Test

Your capital is $20,000 and brokerage is reduced to $20 per trade. How many shares of $10.00 can you buy if you place your stop loss at $9.25? Apply the 2 percent rule.

Hint: Remember to allow for brokerage, on the buy and sell, and slippage (of say 25 cents/share).

Increase your trading results by implementing pareto’s80-20rule

Increase your trading results by implementing pareto’s80-20ruleIncrease Your Trading Results by Implementing Pareto’s 80-20 Rule

Since time immemorial, the golden rule when it comes to working, effort and out-put has always been assumed to be directly proportional. That if you place enough hours into something, you will get rewarded according to your efforts.

From great philosophers and economists, visionaries such as Abraham Maslow and Douglas McGregor, man has always thought that the relationship between time and output is linear in nature, unless you factor in some new constants.

Vilfredo Pareto, a famed economist, joins the leagues of such great thinkers. He is accredited for coming up with the 80-20 rule, a concept he came up with after years of observations made on different scenarios such as land ownership.

Also referred to as the law of the vital few, the law states that in numerous cases, nearly 80% of the effects and results come from roughly 20% of the causes. Basically, this law states that 80% of the resultant output is determined by a crucial 20% of the productivity effort, meaning, a large section of productivity is determined by the minority.

This law has managed to transcend time and is nowadays used as the rule of thumb - in terms of economics and marketing. For instance, 80% of a companys profit is a result of 20% of its client base, similarly, 80% of a companys profit comes from the 20% time its employees spend working.

As controversial as this law may sound, it is crucial and has numerous benefits, including conditioning our minds to our individualistic levels of production. By doing so, we get to see that we lose a lot of time, hence making us look for ways to efficiently achieve more returns.

For those involved in the trading industry — either forex or stocks, this law will truly come in handy as the golden rule of linearity between time and money, does not apply. By taking this rule to heart, you will soon be on your way to realizing more, in terms of productivity.

Calculating one percent risk

Calculating one percent riskCalculating One Percent Risk

By Adam Milton. Day Trading Expert

Many professional traders adhere to the one percent risk rule, which states that no more than one percent of a trading account may be risked on any single trade. In other words, if a trader has a €100,000 account, the maximum amount that they can risk is €1,000 per trade.

Continue Reading Below

Traders that abide by the one percent risk rule, are much more likely to survive an unexpected losing streak, than a trader that risks half of their account on each trade.

Calculating One Percent Risk

One percent risk is calculated in two steps. The first step determines the maximum amount of capital that can be risked, and the second step determines the resulting trade size (i. e. number of shares, or contracts, or forex lots, etc.).

The one percent risk rule is calculated as follows:

Maximum Capital = Account Size / 100

Trade Size = Maximum Capital / ((Entry - Stop Loss) x Point Value)

For example, the one percent risk rule for a €100,000 trading account, making a long stock trade with an entry price of €75, and a stop loss price of €70, would be calculated as follows:

Maximum Capital = €100,000 / 100 = €1,000

Trade Size = €1,000 / ((€75 - €70) x 1) = 200 shares

The maximum size of the example stock trade is two hundred shares, because if the trade makes a loss (by trading at its stop loss price), the two hundred shares will lose €5 each, for a total loss of €1,000 (which is 1% of the trading account).

Continue Reading Below

As another example, the one percent risk rule for a €30,000 trading account, making a short futures trade on a market with a €10 point value, with an entry price of €4,125, and a stop loss price of €4,150, would be calculated as follows:

Maximum Capital = €30,000 / 100 = €300

Trade Size = €300 / ((€4,125 - €4,150) x 10) = 1 contract (actually 1.2 contracts, but this is not possible)

The maximum size of the example futures trade is one contract, because if the trade makes a loss (by trading at its stop loss price), the one contract will lose €250 (which is less than 1% of the trading account).

Using the One Percent Risk Rule

The one percent risk rule, and its calculation, applies to all types of markets (i. e. stocks, futures, options, forex, etc.). The only catch is that you must use the correct point value (the cash value per point of price change), otherwise, you could be risking a lot more than one percent.

Anti-money laundering template for small firms

Anti-money laundering template for small firmsAnti-Money Laundering Template for Small Firms

FINRA provides a template for small firms (Word format 164 KB ) to assist them in fulfilling their responsibilities to establish the AML compliance program required by the Bank Secrecy Act and its implementing regulations and FINRA Rule 3310. The template provides text examples, instructions, relevant rules and Web sites and other resources that are useful for developing an AML plan for a small firm.

Firms should also note that they may access all of the guidance FINRA has provided regarding FINRA Rule 3310 at the Anti-Money Laundering main page.

Changes to the AML Template Updated January 1, 2010

The updated template creates no new requirements. It replaces outdated NASD Rule 3011 references with new FINRA Rule 3310 cites. Also, it does not include the independent testing exception that was in the previous template; FinCEN stated the exception does not meet the Bank Secrecy Act’s independent testing requirements. The new template structure tracks previous templates, and generally matches up with AML plans based on those templates.

The more important changes in the new template are that it:

notes that a firm’s AML program should be risk-based;

notes that firms must identify, review, and if necessary, update the information regarding the AML compliance person in the manner prescribed in NASD Rule 1160;

updates rule cites and resources, with hyperlinks directly to the cited material;

reflects Treasury regulations issued since the template was last updated;

adds a section on General Customer Due Diligence; and

expands the red flag section to include insurance product and penny stock company transactions.

Advanced source codecom

Advanced source codecomAdvanced Source Code. Com

. Click here to download.

Genetic algorithms belong to a class of machine learning algorithms that have been successfully used in a number of research areas. There is a growing interest in their use in financial economics but so far there has been little formal analysis. In stock market, a technical trading rule is a popular tool for analysts and users to do their research and decide to buy or sell their shares. The key issue for the success of a trading rule is the selection of values for all parameters and their combinations. However, the range of parameters can vary in a large domain, so it is difficult for users to find the best parameter combination. By using a genetic algorithm, we can look for both the structure and the parameters of the rules at the same time. We have optimized a trading system that has been developed by Alfredo Rosa using genetic algorithms . a new, complex 16-bars trading rule has been discovered and tested on Italian FIB with brilliant results.

Forex trading80-20rule

Forex trading80-20ruleForex Trading 80 -20 Rule

So, what is the 80 - 20 rule, and why is it so powerful in terms of making Forex profits?

The Logic of the 80 - 20 Rule

In the nineteenth century, Vilfredo Pareto, an Italian philosopher, observed that a small section of the population held most of the money and power. He postulated that in most countries, 80% of the money and power was controlled by around 20% of the people. Therefore, 20% of the participants accounted for 80% of the results.

The 80 - 20 rule applies to many other areas of life - including Forex trading, and in simple terms, the key point to consider is this:

80% of your results will be generated by 20% of your efforts.

This also means that:

20% of your results will be generated by 80% of your efforts.

In Forex trading, it's a fact that most traders make this critical error - they trade too much - and try to force results by working too hard.

Here's what you need to do, to apply the 80 - 20 rule in Forex trading, and increase your results:

1. Cut out short term trading - like Forex day trading. In day trading, you trade frequently - but it simply doesn't work. This is because all short-term volatility is random - and you can never get the odds in your favor.

2. Only trade significant technical patterns - such as critical breaks of support and resistance, with your Forex trading system.

3. Risk more per trade on the "good trades" - up to 20% is OK. Remember, risk goes with reward - and you need to take meaningful calculated risks, when the odds are in your favor.

4. Don't diversify! Forex traders think this spreads risk, but all it does, is simply dilute profit.

In terms of your Forex trading strategy: Focusing on the above will make you more money - but you'll also reduce the effort you put in.

Shift your emphasis to long term trading - and only trade the best signals. By doing this, your workload - and the amount of time you need to spend on your Forex analysis will be reduced.

If you apply the 80 - 20 rule to your Forex trading in the above way, you'll cut the effort you put in. You'll also increase the profits you make - and that's what all Forex traders want!

Cutting the Effort You Put In and Getting Bigger Rewards

Many people think that the more effort you put in, the better the results you obtain. This is true in many areas of life - but not Forex trading! Here you are paid for being right with your Forex trading signals - that's all.

Also, don't fall for the myth that the more you trade, the better your chance is of having Forex trading success. This is simply not true - because the big trades, with the best ratio of risk to reward don't come around that often.

Incorporate the 80 - 20 rule in your Forex trading strategy, and watch your profits soar.

Forex broker cheats

Forex broker cheatsThe Ultimate Trading Shortcut?

My name is Jason Fielder, and the five (5) "cheat sheets" I have assembled will put the odds back in your favor and give you the control you need to pull short-term profits out of the Forex.

Here's what you'll get when you download these "Cheat Sheets":

Five (5) non-traditional strategies you use to snipe pips out of the Forex markets (in any market condition).

The best times to scalp the markets (HINT: It's NOT when you think) and the times to avoid.

How to break the market down into several "micro-markets" and trade each one accordingly.

How to beat the "Trading Sharks" who prey on your stops and profit from your losses at their own game. and much, much more.

Once you have this shortcut in your trading arsenal, you'll immediately become a more accurate, profitable trader. PLUS you'll finally have the confidence to PULL THE TRIGGER on trades you used to let pass you by.

But download the "Cheat Sheets" while you can.

Complimentary access is limited, so enter your email address in the form to the right for FREE, INSTANT ACCESS.

There are so many Traders who have been cheated by forex brokers. I want you to read how they can cheat you.

Forex ( Gain Capital Group)

Gain Capital Group, Stevens and Galant failed to adhere to NFA rules intended to protect Gains customers from the actions and non actions of its employees, agents and contractors.

I hereby allege that Gain Capital Group LLC is guilty of violating the following NFA compliance rules.

1. NFA compliance rule 2-36(b)(1)

2. NFA compliance rule 2-36(c)

3. NFA compliance rule 2-9(c)

4. NFA compliance rule 2-11

I hereby allege that Mr. Mark Galant CEO is guilty of violating the following NFA compliance rule,

1. NFA compliance rule 2-36(e)

I am a victim of Gains actions and non actions that resulted in large financial losses and am entitled to reparations and punitive damages.

I am entitled to recover additional reparations and punitive damages because Gain Capital Group CEO Mark Galant failed in his duty by permitting and thereafter failing to correct all the deficiencies that were brought to his attention and violated NFA-Compliance rule 2-36(e).

I am entitled to recover additional reparations and punitive damages because Gain Capital Group CEO Glen Stevens failed in his duty by having the ability to read the NFAs complaint and findings and failed to correct all the deficiencies that were brought to his attention and violated NFA-Compliance rule 2-36(e).