The Forex Strategy Builder offers a dynamic set of tools that can be effectively used during trade analysis and generation. Some of the tools that are offered include the Profit Calculator, Fibonacci Level Calculator, Pivot Point Calculator, the Optimiser, the Comparator, and the Bar Explorer. Each tool supplies a unique way of looking at a strategy and identifying the validity of the system.
The profit calculator allows the user to define specific entry and exit points and the number of lots/ size traded. Effective in analysing the impact of movements in price on profit and loss, the Profit Calculator can be used to define stop loss and take profit levels.
Fibonacci Level Calculator:
Many traders use Fibonacci levels to specifically analyse waves or patterns in price movements from the high or low in a trend. These key price points can define breakouts and breakdowns of movements. Fairly important calculator when used concurrently with technical indicators.
Pivot Point Calculator:
Pivot points focus on support and resistance levels within market movements. Relatively popular indicator, the PP allows the trader to focus on the strength or weakness of a price within a trend.
When generating a strategy through the Forex Strategy Builder, the Optimiser can supply the user with the ability to adjust the system for performance. Care must be taken though when using the optimiser, as it can result in curve fitting. The optimiser will open the predefined strategy and highlight the current settings (eg Moving Average levels etc). The trader can then change these levels, and accordingly the performance chart will adjust. It is key to double check the optimiser with an overlay before using the strategy. Extreme care must be taken.
Unique tool offered by the Forex Strategy Builder. The Comparator allows the user to look at how the system works under different scenarios. For example a pessimistic market, or an optimistic market. This will flag the true performance during these periods and is an effective way of defining the validity of the system or strategy.
The Bar Explorer will analyse each bar based on whether or not a position has been opened in back test. In effect, this tool allows the online forex trader to look back at how and when a position was opened and how it played out during the market conditions. The Bar Explorer can be important if the user is looking to replay a certain period or periods.
For more information on the tools that are offered in the Vantage FX Strategy Builder please visit Vantage FX.