WELCOME TO FOREX STRATEGY...
BunnyGirl’s FAQ
Rev 1.0
Basic Entry & Exit Conditions
• Pairs traded EUR-USD, GBP-USD & USD-CHF. EUR-JPY traded sometimes. Other
pairs have been tested for this strategy but were deemed not suitable.
• 5 WMA crosses 20 WMA on 30 min chart + Filter
• Filter is used to minimize whipsaws. Based on eyeballing past crosses looking for
failures and seeing how many pips on average the move made before failing. Filter
currently (28/08/04) set for 20 pips for Eur & 25 for the other pairs. If going long add
spread to filter. Spread is not added for shorts.
• Chart set up: 5min, 30 min, 4hr & daily charts with:
5, 20 and 100 WMA.
2 x Stochastic: 5,3,3 and 50, 3,3
RSI 14
Bollinger Bands 20, 2
• Forex is a 24hr market but take 00:00 GMT as the Daily open. Take long crosses
above the daily open, short crosses below the daily open unless they're say 50 pips or
more away. I don't take crosses that head smack bang into the open because it's too
risky.
• Stop loss is the cross ( but use judgment if cross is close to daily open, 100wma etc)
• 1st target is the bollinger band, 2nd target is 100 pips from top/bottom, 3rd target is
wma20 on the daily
• Stops: move to break even after +20 (+10 if trade stalling)
• I trade 4 lots - 1st lot out at +30; When you have 30-50 pips set stop to 30pips; 2nd
lot out at +50; When you have 50-100 pips set stop to 50pips; 3rd lot out by trailing
extreme of previous bar if average length (minimum +30); When you have 100 pips
or more set the stop to 100 and trail it every 10 pips.
• Never enter in the last 5 minutes of the 30 minute bar, wait for the next bar to break
the lower low or higher high of the previous 30 min bar
• Don’t enter when the 100wma is near to the cross and the price is heading towards it
(the distance has to be more than 20pips)
• Don't enter if there is strong resistance nearby, or if it is heading against the daily
trend or hovering around the entry level for quite some time (2 - 3 hours)
• A bounce is treated like the cross
• If you’re stopped out wait for the another cross or bounce and enter if it makes a
lower low or a higher how on the 30min bar or 20 pips (which ever is the least pips)
• When all 3 pairs reach entry level at the same time, take all 3 pairs as this is one of
the best signals
• If you have entered and the market has not moved for some hours move down to a 5
min bar to take a quicker exit rather than let it hit the initial stop.
Bunnyisms
Three in a bed: wma5, wma20 & wma100 all in the same area
In the dark: middle of a 30 min bar
Shadow zone: Daily chart - created when the price moves up/down then
retraces back to the opening price.
The 5:10: 5.10 is going home time (London), an important time on the 5 min
chart for maybe scalping or even a bigger move, stops get moved in tight at end
of day, then they get taken out
Mr Sheen: after a large move, price generally retraces i.e. “in the dust”. I like to
see it retrace at least 25 -30 pips. The ideal set up for Mr Sheen is when the 5
min bar makes a reversal by bouncing off the wma20 or wma100, then take the
breakout of that bar. If the reason for entry is the bounce down on 5 mins chart,
then the stop should be just above the high it made on the retrace on the 5min
1
The Nuances
I trade normally from 7am GMT until 5 pm GMT, sometimes 6am depending how the
night before has been. I usually take a peek around 1am to see the daily open.
Q: Do you prefer certain days?
A: Tuesday & Wednesdays are my favourite days but I trade all 5 days.
I'm normally here in chat from around 7am GMT until 5pm GMT trading.
I aim for 1 trade per pair per day, but sometimes 2 trades. 50 pips per day is a realistic
goal & 50 pips per day is my target. I look for 250 pips per week minimum.
Best time to trade generally is 06:00 - 09:00 GMT and 12.30 - 15:00 GMT. Be wary of
entries between 10:00 - 12.30 GMT and after 16:00 GMT. Europe & US openings are the
most reliable. Be aware the trend can change when a new market opens.
The cross is my main tool in the box, but I also use several others i.e. Mr Sheen, Gimme
bars The cross is for trends, Gimme bars are for ranging & Mr Sheen is for big news & re-
entering the cross if stopped out.
I use fibs at the start of the day and I use fibs whenever I see a nice top or bottom
Watch for a fib retrace when market opens - the market does that at that time of the
morning, moves just enough to make you think it's going one way, then 7.30 hits & it
turns and goes back in its pre-open direction.
RSI 14 - I like the crossing of the 50 line best
A pattern that you will see all the time is the price will come back to test the cross or the
wma20 & sometimes cross by just a few pips.....that's because there will be a lot of stops
located there. Once those are taken out it will carry on it's way ...put your stop at 10 pips
past the wma20.
Try not to exit (or enter) in the last 5 min of a 30 min bar. Wait to see what next 30 mins
brings and trail stop down to high of last 30 mins if you are short. Opposite for a long.
I always look for a struggle at 100+ levels. If the price has moved 100 pips from a top or
a bottom in the day there's usually a bit of a struggle where people are taking profit or
cutting losses. The round numbers can stall it for a while too.
If the wma5 is above the opening I take long crosses and if the wma5 is below the open I
take short crosses. Then if & when it hits the wma5 I wait to see if it reverses, especially
if the wma5 is in the 20 - 40 pips zone away from the opening.
Why 2 different slow stochs? Because 1 is slower than the other, but when both are at
extremes I don't ignore them. When both have turned at the extreme (both at top or
both at the bottom), then watch what happens around 2 - 4 bars later. Also watch for
divergence on the stochs.
Q: Do you consider the stochs and rsi only on the daily or all timeframes?
A: All timeframes, usually gives me 1 to 4 bars warning of what's about to happen
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Q: Am I right in saying that you have to wait for rsi to cross 50 after the stochs make
extremes, even though the stochs may be in the middle by the time the rsi is crossing
the 50 line?
A: The more evidence you have the lower the risk, when you see both stochs turning
wait for it to break the high/low of the last 4 bars
Q: What do you do when you arrive at your charts in the morning and find that the cross
has already happened and the filter has been filled and now the price is 10 pips or so
past the filter. Do you jump in or wait for the next train
A: I wait for a new bar to begin & take the breakout of the previous bar
Q: o fibs prevent your entry sometimes? ( when the cross and 20 pip criteria has been
met)
A: Only the daily open prevents entry for me these days
Q: Have you ever found that the price has moved in your favour by 10 pips at which
point you move our stop to B/E, only to find that the price has come back to take you out
before continuing on its way in the original direction? What do you do about it? Do you
ALWAYS ALWAYS move stop to B/E at +10 pip
A: No I don't, it all depends where in the 30 mins I am. If it's in the dark then I'll hold to
see how the 30 mins ends, if it's close to the 30 mins end then I might move SL in tight.
I would prefer to take part profit at +10 & then move stop, at least you make some pips
Q: Do you reject many crosses that are in your preferred times?
A: No, I prefer to go in with smaller stake & see than not enter at all (Toe in the Water)
Q: Whilst trading the Cross + filter, do you only look at the 5 min chart after you have
had your run of greater than 50 pips? Are there any other circumstances where you
would look at the 5 min chart before the 50 pips have been achieved?
A: Yes ...when it stops moving.
Q: OK, so when the 30 min chart is dragging its heels, you move down to the 5 min to
see when you should exit. This is done by looking for a bar to open on the opposite side
of the wma 20. Is this all correct?
A: Sometimes I just look for a reversal bar on the 5 mins, it maybe nowhere near the
wma20. Using the 5 mins is 1 way of exiting; there are loads more you can use. The
other exit methods are approaching the 100wma, bounce off the BB (gimme bar), 100
pips from high/low, approaching open of day, approaching local Res levels and pivots,
round numbers. And the opposite end of the previous bar. I split my exits into 4 parts, 1
strategy for each part. I find that the best exit has a different strategy every trade; there
is no best way to exit, so by splitting the exits I try to get the best somehow.
Q: What charting software do you use?
A: I use NetDania charts.
Q: What broker are you using?
A: I go with Saxo Bank and CMC.
Q: Are you full-time trader?
A: Yes I am.
• A discussion about a new 30 min candle & setting of SL.
Q: Is the latest SL 5 pip below cross or at the cross?
A: I give it a little elbow room, but no more than a few pips especially if it's coming to
the end of the 30 mins. If the new 30 mins breaks out then I'm out like a shot.
3
Q: So if you see a breakout, it could be the beginning of a candle and then if you get
out, you may find its turned around, do you get that a lot?
A: If I'm waiting to enter I wait for it to go the wrong way & then enter when it
crosses back over the open of the bar, but when it's near the stop it either has to turn
in the right direction on the 1st pip of the new candle or I'm out.
Q: So if prices retrace back to the cross, you have a few pips spare. Is there any
condition you would get out before it even hit the SL?
A: If you think about it...if it's gone back to just beyond the cross & closed it needs
to turn back straight away otherwise you're heading for the entry in the opposite
direction and that's exactly what we were talking about this morning...if it closes
beyond the cross without hitting the filter, you can jump the gun on the breakout so
you could even say stop & reverse if it closes just beyond the cross & then breaks
out.
Q: What’s a measuring bar bunny
A: A large candle that subsequent prices either open or close within the range of that
candle.
Q: What’s the significance of it?
A: Whilst prices stay with in measuring bar we're stuck in a range.
Q: What do you use to make the trend vs. range determination?
A: Mainly bolls & staying above the wma20 If we get gimme bars bouncing from one side
to another then we're in a range & if we get the measuring bar like on gbp today we're in
a range.
Q: Do you use daily chart for positional trading?
A: When the 30 mins, the 4 hour, & the daily are all crossing then I go for the long term
if I can. On the day of the crossing of the daily chart, I use the previous day's high/low
as the stop. The target will depend on where in the band the cross is & what pattern
candles we have & where the RSI is & how important a level it's at, where the daily
wma100 is...how many times has it been hit before? I use the previous day's high/low as
the stop.
Q: After your entry, (and 5wma came back to 20wma) when it bounces off the WMA20,
would you have considered that as a new cross and started your filter again or would you
have kept counting from the original cross?
A: If it's a bounce after the market has been flat then I would use a filter, in this case I
would probably use local resistance levels.
Q: How would you use the LRL in conjunction with deciding when to enter?
A: Re-enter when a higher high was made. I also move down to a 5 min chart for a
close look, you may see a cross up there.
• A lesson on the 5 WMA & daily price action
If you take a look at the daily chart with the wma5 & wma20 on you'll notice that the
price touches the wma5 at some point on most days. Well if the wma5 hasn't already
touched the wma5 that day, there's a good chance that it will. You'll also notice that a
lot of the days have a spike of 30 - 40 pips. Take a look at the eur/usd & see how
many days has a little spike at the top for down days or a spike at the bottom for
long days. It happens on all 3 pairs though. It likes to move the wrong way those few
pips first, then cross. So if the price has crossed on the 30 mins, is on the right side
of the daily open & it's already touched the wma5 for the day then take it, especially
if the price is crossing over the daily open as part of the filter pips for the cross &
especially if the cross is happening around 00.00 GMT. If it's really slow it might not
happen until around 7am GMT though. Look at the 00.00 GMT price, wait for it to
4
move 30 odd pips away, then wait for the turn when it crosses back over the opening
price, try to hold it for the day. That's about as long term as you can get intraday.
Then look to close around 4pm GMT. You can use the turning point as the stop loss
(the 30 odd pips), so low risk because if it goes more than that then the day is going
in the other direction. Putting the pieces of the puzzle together, those first 30 odd
pips are just Mr Sheen anyway, every move is either with the cross or it's a Mr Sheen
retracement.
• A lesson on turning points.
Shall we have a look at this chart then? OK..gbp...daily chart...wma5. Are we agreed
the price likes to touch the wma5 at some point most days?
Or at least get to within a few small pips. I'll take that as a yes then.
See the 15th June - 16th July?...wma 5 is touched every day. What happens on the
19th July?...it doesn't touch. What happens after that?
Yep...goes down, we get a 600 odd pip drop. 28th July...we get a warning
sign...wma5 not touched, 29th is the last down day, the bottom I mean.
Notice the difference?...19th July was a big down day...followed by big drop, 28th
July was a doji day - just a warning of what was to come. So we have 1 more day on
the 29th & then up it goes. 29th July - 6th August we touch wma5 every day, up
nearly 500 pips in total. What happens on the 9th Aug?...wma5 doesn't touch it was a
little doji, & on the 10th it drops just 300 pips this time.16th August...wma5 not
touched...what happens next? Do you see what I’m getting at? 19th Aug we had the
cross down & it hasn't looked back since, that’s why gbp calls had to be short today
long would just be fighting the trend, unless you were scalping.
Even if you only trade the day after the wma5 doesn't touch you could make a lot of
pips, but see how often it happens...nearly every time the wma5 doesn't get touched
it's either a reversal or a warning of a reversal. Eureka!
Just wait for the price to go past the daily open in the right direction & Bob's your
uncle. But if we know the direction of gbp we can trade the other 2 pairs most of the
time. GBP daily..12th November - 9th January wma5 get's touched every day.
NUMBER 2
MR SHEEN STRATEGY
By Bunny Girl
Mr Sheen is just a nickname I gave to entering a trade after the dust
has settled. (Mr Sheen is a brand name of polish ). I use it after big
news events and also any other time I see the price retracing by 30 -
40 pips after a strong move on a 30 min chart. I move down to a 5
min chart and look for the price bouncing off wma20 or wma100 and
closing in the opposite direction. I then take the breakout of that bar
with the initial target being the previous high/low made (around 30 -
40 pips). Stops can be fairly tight at around 10 - 20 pips depending on
which pair is being traded as anymore than this would be more than a
normal pullback - it would be a reversal.
Mr Sheen is also a great tool for re-entering the cross trade if stopped
out anywhere along the way or if the cross was missed due to being in
the wrong timezone. I take partial profit at the initial target & let the
rest run for the normal +50, +100 if seen with stops moved to
breakeven.
Here's a quick mr sheen chart for you :-. This is the usd/chf chart of
the 3rd September.
A - Entry point (1 pip above the close of this bar)
Notice how it retraced half the bar. There was a very neat bounce off
the top Bollinger Band.
B - Initial target
2nd target would be 60 pips above 'A' at around 1.2760 ( the depth of
the pullback is added to the initial target).
C - Nearly there, 2 pips to go
You can use the top of the Bollinger Band to help with the target.
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This is what it looked like on 30 mins:
A - Initial Target B - Target reached
It went on to make a further 20 pips, but failed to reach 2nd target.
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STRAREGY NUMBER 3
Gimmee Bar
The Gimmee bar comes from one of the oldest formations known to traders, the reversal
bar at the end of rising or falling prices when a market is seen overall to be going
sideways. Although the recognition of reversal bars is ancient, using them in combination
with Bollinger Bands is not ancient. Until the advent of computers, it was much too
difficult and time consuming to calculate the bands. Virtually all software worth anything
these days can put the bands on a chart for you, so we'll not waste time here with the
mathematics.
Suffice it to say that the bands are so constructed that when set with a 20 bar moving
average of the close at two standard deviations, approximately 96.5% of all closes will be
contained within the bands.
Here's how the bands look. How to trade the Gimmees will follow:
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GIMMEE BARS ARE NOTHING MORE THAN REVERSAL BARS THAT TAKE
PLACE ONCE PRICES HAVE REACHED THE UPPER OR LOWER BANDS IN A
SIDEWAYS MOVING MARKET.
GIMMEE BAR SETUP
Indicator: Bollinger Band 20 per .2 std dev. Concept is to apply this trade when in a
range. Determine range by slope of Bollinger bands = when they are relatively flat you
are range bound. Eventually price will break out so as time increases use more caution.
Sell break of Gimmee bar when at resistance = top Bollinger band or buy break of
Gimmee bar when at support = bottom Bollinger band. Either the Gimmee bar or bar
preceding the Gimmee bar must touch the Bollinger band.
The Gimmee bar must be in the direction away from the Bollinger band = a reversal and
opposite from the preceding bar. This idea is basic price action reversal bar pattern.
Sometimes in addition it will be a inside bar which in itself is a trade many times.
You can also dial down to a lower time frame to find the entry or most aggressive
Buy/sell the poke above/below the band.
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HOW TO TRADE GIMMEES
Gimmee bars are bars that reverse price direction once prices have touched the upper or
lower bands. However, please note that this
must happen in conjunction with prices being overall in consolidation (Trading Range).
GIMMEE BARS AT THE UPPER BAND
Once prices touch the upper band, the bar touching the upper band or the very next bar
may become designated as the Gimmee bar. All that is required is the occurrence of a
price bar which closes lower than it opens.
Should such a price bar occur, a sell short order is to be executed one tick below the low
of the Gimmee bar.
Here are some examples:
The Gimmee bar in this example is
the one that touched the upper band.
What makes it the Gimmee bar is:
1. Prices were rising.
2. Prices touched the upper band.
3. The price bar closed lower than it
opened when prices were
previously rising.
A sell order should be placed one tick
below the low of the Gimmee bar.
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The Gimmee bar in this example is the price
bar after the bar that touched the upper band.
What makes it the Gimmee bar is:
1. Prices were rising.
2. Prices had touched the upper band.
3. The price bar closed lower than it opened
when prices were previously rising.
A sell order should be placed one tick below
the low of the Gimmee bar.
GIMMEE BARS AT THE LOWER BAND
Once prices touch the lower band, the bar touching the lower band or
the very next bar may become designated as the Gimmee bar. All
that is required is the occurrence of a price bar which closes higher
than it opens.
Should such a price bar occur, a buy order is to be executed one tick
above the high of the Gimmee bar.
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Bunnygirl
Bunnygirl
1
Bunnygirl is a Forex day trader who frequents the MoneyTec.com and StrategyBuilderFX.com trading
forums. She was most active from about November 2003 to April 2005, though she still frequents to
forums on occassion. Her most remarkable accomplishment was starting the "wma cross" thread in April
2004. As of November, 2005, the thread has over 1100 replies, 147 pages, and 340,000 views, three
times the views of the next most popular strategy thread.
Bunnygirl proposed a straight-forward, easy-to-follow framework for trading. She explained to others, in
great detail, how she trades the three major market types: trending, ranging, and news breakouts. The
predominant aspect of her strategy incorporates a moving average crossing. Her suggestions and
recommendations should be properly termed a "framework" as she frequently interjected aspects of her
own trading style into the methodology and encouraged others to deviate from the framework where it
was necessary in order to fit within their own styles. Her approach was shown to be profitable as she
made live calls in the chatroom and, on one post, indicated that she had a 90% trading success rate and
a streak of 46 wins that had recently ended at the time of that posting.
Bunnygirl's influence on the Forex trader community is significant as she has a large number of
successful traders who started by using her system. Her original strategy thread has spun off numerous
related threads and has helped countless other traders formulate basic rules for MA crossing strategies.
This document will detail the "BunnyCross" or "BGX" methodology. Note that this document explains the
most recent strategy definitions for BGX, and may not include Bunnygirl's earlier thinking. For instance,
Bunnygirl originally used Bollinger Bands for exits, but moved away from them as she learned better exit
techniques.
There was one primary thread that Bunnygirl posted on, and another secondary one because it provides
updates to some of her trading strategies. References to specific posts, from each thread, are included in
this document.
Who's stockwet?
I'm stockwet. stockwet is my forum handle on the Moneytec and StrategyBuilderFX forums. I stumbled
onto the Bunnygirl thread several months ago. After a tedious week of reading through the entire post,
going back through the post with more answers, re-reading again and again, I decided to write down the
rules of her approach.
My goal is to provide myself and others with a comprehensive guide to Bunnygirl's trading style and
approach. Currently, I trade the BGX system exclusively, and use this document to refresh my
understanding of the rules and nuances.
Other Contributors
Others have contributed to Bunnygirl's threads. From davidwt's excellent Bunnygirl indicator to Beachie's
and Shimodax's intelligent and insightful posts, many have added significant value and understanding to
Bunnygirl's threads. (Get the indicator from here: http://strategybuilderfx.com/showthread.php?t=13023).
The Forex Market
Forex Basics
2
The Forex market is the largest, most liquid financial markets in the world. Conducting over $1.6 trillion in
transactions every day, the Forex market dwarfs the combined liquidity of both the US Equities and
Treasury markets. The Forex market is completely electronic, with transactions being handled between a
vast banking network. Individual investors, traders, and corporations work through brokers or Interbank
dealers to gain access to the market.
Following are some of the unique benefits of trading in the Forex markets.
• 24-hour market: Trading occurs primarily from 7PM EST Sundays to 4PM EST Fridays.
Trades between these times can be entered or exited at any time.
• High liquidity: Over $1.3 trillion in transactions pass through the market every day.
• Low Transaction Costs: Brokers typically charge a spread, versus a commission for each
trade. Spreads vary by the currency pair being traded. Spreads can be fixed or variable.
Ranges for major pairs range from 2 to 5 points.
• Easy access: Individual traders gain access to the Forex market using brokers that offer
Internet access using their proprietary trading platforms.
• Margin Trading: Forex trading is done with high degrees of leverage. This can result in rapid
gains, or rapid losses.
One of the best sites to learn the fundamentals of the Forex market is at
http://www.piptrader.com/forex_education/basic_forex_education/. I also like www.babypips.com.
Currency Pairs
Forex traders trade currency pairs. The major currency pairs traded are:
• EURUSD: Euro / Dollar
• GBPUSD: British Pound / Dollar
• USDCHF: Dollar / Swiss Franc
• USDJPY: Dollar / Japanese Yen
The first currency is the base currency. The price of the pair is understood based on the base currency.
For instance, a quote of 1.1700 on the EURUSD is meant to be understood as "1 Euro buys 1.1700 US
Dollars". Or "it takes 1.1700 US Dollars to buy 1 Euro."
The BGX system is ideally suited to the EURUSD, GPBUSD, and USDCHF currency pairs. Other pairs
might be possible to trade, but these three are preferred.
Pips and Lots
Pips are the term used for a point movement in each pair. Differences in the last decimal place at the end
of the price quote are how pips are measured. For instance, if the EURUSD starts out at 1.1700 and
moves to 1.1750, it has moved 50 pips. USDJPY quotes are different – they only contain two decimal
places whereas the other majors contain 4 decimals. Pip measurements are the same, though, as
changes in the final decimal place represent pip movements.
A "lot" is similar to a "share". You buy or sell currencies in lots. The value of a lot depends upon the
currency pair being traded. Each lot consists of 100,000 currency units. For most traders, buying or
selling currency lots on 1:1 leverage is improbable. Forex trading is highly leveragable. Your broker will
determine the degree of leverage you have available. However, as an example, if you have an account
with 100:1 leverage, you're able to buy a single lot of 100,000 currency units on a margin account of only
$1000 dollars. However, that's the margin amount. Each pip movement for most currency pairs is worth
$10, so, it would take a move of 100 pips against you for your margin to be reached. Traders can trade
multiple lots, depending on their account size.
Some brokers allow you to have a mini-account. A mini-account uses fractional lots where a pip
movement is worth $1, versus the normal $10 for a regular account. Some brokers allow as little as $300
be deposited in a mini-account.
(Note that the value of a pip depends on the pair being traded. For simplicity, these examples use $1 for
mini accounts and $10 for regular accounts.)
Jump In
Getting started in the Forex market is easy. Here are the steps:
1. Find a broker or bank
2. Sign up for a demo account
3. Download the brokerage platform
4. Get MetaTrader 4 as a secondary/charting platform
5. Get the BGX indicator for MetaTrader 4
Find a broker or bank
Forex traders have the option of gaining access to the market via brokers, banks, or interbank
Jump in
3
exchanges. In each case, expect to pay either a spread or a commission. A commission is usually a
percentage fee of the transaction value. A spread is the difference between the ask and bid price of a pair
that the broker keeps. So, for example, if the EURUSD has a 3 pip spread, and you're trading a full lot,
your fee for the transaction is $30 (3 pips X $10 per pip).
Brokers have relationships with large Forex banks and provide individual traders with access to the
interbank market via. However, brokerage firms trade their own money. Some are believed to trade
against their individual trading customers as a way to pad further profits. Most brokers charge a spread
on each transaction.
Banks provide access to the Forex market for some high net worth traders. Commissions and spreads
are not always more favorable than with brokers. While banks can provide more direct access to traders,
their primary business model is to exchange their own funds. So, large banks are not necessarily the best
approach for new traders who might need a little more flexibility.
Interbank exchanges claim to be 3rd party exchanges providing direct access to the Interbank market.
They differentiate themselves from brokers by providing rock bottom, though often variable, spreads and
they do not trade for profit. Interbank exchanges are an appealing alternative to brokers.
The following list provides comparison information on Forex brokers: http://www.goforex.net/forex -broker-
comparison.htm. Additionally, the same site provides ratings information on Forex brokers:
http://www.goforex.net/forex -broker-ratings.htm.
Get a demo account
The question of whether or not to open a demo account along with, or before, opening a live Forex
account should be indisputable. Most brokers allow users to open demo accounts before opening live
accounts.
Demo accounts should be used to learn systems and create regular trading habits. Traders that use a
demo account to jump from system to system, trying to find something that works, will, inevitably, be
wasting a lot of time. The most productive use of a demo account is to establish trading habits that are
successful and can be objectively applied in the same manner in a live environment.
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