Search and filter essential terminology. Master the concepts behind position sizing, automated workflows, and technical analysis.
A technical indicator measuring market volatility by decomposing the entire range of an asset price for a given period.
Use ATR to set dynamic Stop-Loss distances. Set stops at 1.5x or 2.0x ATR to give trades breathing room.
The process of testing a trading strategy, indicator, or Expert Advisor against historical price data to review performance consistency.
A paper-trading account provided by brokers loaded with simulated capital, enabling risk-free platform and tool testing.
The peak-to-trough decline during a specific record period of an investment or trading account, expressed as a percentage or cash value.
Focus on minimizing maximum drawdown rather than maximizing profit. Safe systems prioritize capital preservation.
A program written in MQL4 or MQL5 that runs inside the MetaTrader terminal to automate analysis, signaling, or order execution.
The use of borrowed capital from a broker to increase trade transaction size, scaling both potential gains and losses.
High leverage is a double-edged sword. Keep leverage low (e.g. 1:10 or 1:30) to reduce capital risk.
The standard unit measurement of a trade transaction volume. 1.00 Standard Lot equals 100,000 units of the base currency.
A Mini Lot is 0.10 lots (10,000 units), and a Micro Lot is 0.01 lots (1,000 units). Adjust lots based on balance.
The collateral deposit required to open and maintain active leveraged trading positions on your account.
Keep your Margin Level high (above 500%). Low margin levels trigger margin calls and forced liquidation.
A fundamental indicator that smooths out price action by filtering out short-term noise, tracking average levels over a set time.
A Simple Moving Average (SMA) weights all bars equally, while an Exponential Moving Average (EMA) weights recent bars more.
Percentage In Point. The standard increment of price movement, usually representing 0.0001 (the 4th decimal place) in major currency pairs.
The difference between the expected execution price of an order and the actual price at which the order is filled by the server.
The cost difference between the current buy (Ask) price and sell (Bid) price of a financial instrument.
Spreads widen during weekend closes, news releases, and rollover hours. Ensure indicators account for spreads.
A pre-set order instruction designed to limit loss exposure on an open position by automatically closing at a set price threshold.
Stop Loss is your single most important risk mitigation tool. Never open a live trade without a pre-planned SL.
A pre-set order instruction that automatically closes a profitable position once price reaches a specified target threshold.
Set TP targets based on structural support or resistance levels rather than random percentage values.
A systematic strategy methodology that aims to capture extended medium-to-long term price movements in a established market direction.
Trend following does not try to pick market tops or bottoms. It aims to capture the middle chunk of a sustained trend.
The statistical measure of price dispersion for an asset over time. High volatility indicates large swings, low indicates consolidation.
Volatility is not capital risk. Volatility represents range opportunity; correct position-sizing keeps risk constant.