One of the most important yet often ignored questions that all Forex traders should ask themselves, especially retail traders, is “what’s my goal?” or “what’s my endgame?”

Yes, it may seem absurd to bring this up at this stage of my 7-part series, but how many traders actually examine what do they really want from Forex?  Now, we are not talking about fantasy land here, but something realistic and achievable… and after you really thought through it, I think it comes down to either income replacement, or income supplement…  Of course, there are always those who want to strike it rich overnight, but I think you probably have a better chance at playing the lottery, because it takes just one combination of winning numbers to win millions of dollars, versus having series of winning trades, excellent mental discipline, and perfect timing to achieve your goal.  The odds are just astronomical; so yes, you’d have better odds at playing the lottery than trading Forex starting with a $500 investment and the explicit goal of turning it into $1 million.

Now that we get the myth out of the way, let’s understand the difference between Trading and Investing.

Trading – according to Investorword: is the buying and selling securities or commodities on a short-term basis,  hoping to make quick profits.

I think the key focus is “short-term”, as traders often enter and exit trades within minutes, hours, but very seldom, days.  News trading, straddling, scalping, all describing different types of trading with a short-term focus; as a matter of fact, most traders, especially the novice ones, tend to focus on this type of Trading, or in and out of the market on short-term basis.

Investing – on the other hand, is defined by Google as:

1. Expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.
2. Devote (one’s time, effort, or energy) to a particular undertaking with the expectation of a worthwhile result.

Obviously investing is not short-term, but rather longer term ventures with goals of achieving profits that are worthwhile.

If your goal in Forex is income replacement or supplement, I’ll show you a way through investing to build up your portfolio.  If your goal is to gamble your account with expectations of huge returns, then the following may not interest you, however, you are welcome to follow along, because what you are about to read could change your Forex Trading forever.

Unless you are already a successful Forex trader, you may still make the same mistake: Closing profitable trades early while let losing trades run…  This is of course, human nature, and it is as true as gravity, because your brain is programmed to go to the path of least resistance.  A normal trader usually feels that taking a small profit is easier than taking a small loss… In a study into positive/negative framing, traders are usually biased against taking losses, even when logic states otherwise.  I’ll get into details in the final chapter of Forex Trading Strategies, but for now, just know that if you give a choice to 100 traders to take a loss of $3000 now, or $5000 later, but with a 10% of probability that market could come back to break even, 85% of traders would choose the $5000 or no loss scenario, when in fact the $3000 loss is the right choice mathematically.

The same applies to winning trades, and if we were to change the context, let’s say to either take profit on $3000 now, or $5000 later, but with 10% chance of making nothing, 85% of traders would take the $3000 scenario, leaving money on the table because of the fear in losing what you already have.  And in order to transform your thinking from trading to investing, we need to learn to do what’s hard, because if you are doing what 85% of traders are doing, you’ll end up with the same results of what 85% of traders are getting, and that’s losing…

And that brings us to the concept of Long Term Trades, or what I call: Currency Investment, or leaving your winning trades run. The idea behind the long-term trade is simple, trade based on major market developments, and once you are in the trade, stay in it until you have reasons to get out.  Start with a very small percentage of your account, preferably taking positions in the pair that will give you positive daily swaps, and then add more positions as the market goes in your direction.  Here are the specifics:

1. Study the market and wait for major breaking news that could change the entire market.  News like the Lehman Brothers, ECB Press Conference, Japan’s PM Abe’s snap election…  all of these news releases change the overall sentiments of the market and affect one or several currencies.
2. Choose a currency pair in the direction of the news that would yield positive daily swaps, or cost you less daily swaps.  If the swaps are mostly the same, choose the pair with the most liquidity (less spread), as it’ll end up costing you less.
3. Follow the market and start with a very small position, no more than 2x to 3x leverage.  Something that you can afford to leave running without losing sleep. If 2x leverage is still too much, take half of that.  (2x leverage is basically twice of your available balance.  If your available balance to trade is $10,000 USD, then 2x leverage would be $20,000 USD, or 2 mini lots.)
4. Once you are up 100 pips or so, move your stop loss to break even, and wait for the inevitable market retracement and add another 2x leverage position.  Note: As a rule of thumb, wait for market to retrace at least 100 pips from the high, then plan your entry.  Use previous Forex Trading Strategies such as Support/Resistance and Market Timing as your guides to enter.
5. Repeat step 2, 3, 4 and continue to add more small positions until you have reasons to get out of the trade.  Usually when a move like this happens, it is possible to see the trend last 3 months to 18 months.

These small positions could amount to huge profits in the long run.  I have accumulated 30+ positions on a trade with the first position giving me in excess of 1500+ pips of gain, and I have seen people with 10,000 pips of gain on one trade of shorting GBPJPY from 250.00 down to 150.00.  Even if you enter half of that, you will end up at least doubling your account with very little risk…  Remember, Rome is not built in one day, nor is your Forex portfolio.

-Henry liu

http://www.currencynewstrading.com/56646/forex-trading-strategies-6-investing-versus-trading/

One of the most beautiful parts of the FX market can be found in the midst of the chaos that ensues during a fast market. Prices can tick in 4 or 5 pip increments as dealers across the world scramble to limit their exposure to the imposing flurry of orders emanating from profit hunters around the globe. These fast markets can be extremely friendly to traders if they are on the right side of the move. But if they are not, they can be more than equally as painful. This is called a breakout; and we walked through this market condition in our article, ‘The Ballistics of Breakouts.’

In its simplest form, a breakout is merely the transitory stage between a range and a trend. Sure, some breakouts can merely find themselves in another range once setting a new high or low; but quite often at least some permutation of a trend will result once previously defined support or resistance yield to surging prices. These fast-moving markets can usually be accompanied by fundamental news events; making the resulting conditions even more exciting.

A Range in EURJPY yields to surging prices

Created with Marketscope/Trading Station II

And it’s because of this very nature of breakouts that traders can strategize their hunt for these potentially profitable conditions. Traders can use very simple indicators to look for entries into breakout positions, and plan risk management to ensure that proper breakout protocols are in place. But before going into the strategy, a note of caution…

As mentioned previously, breakouts can be perhaps even more than equally as costly as they can be profitable; and this is because breakout entries left without proper risk management can wipe out a trader’s account in its entirety. If it’s a market moving quickly enough, it can reverse in the other direction even faster than it made its initial move. And if a stop is not on the trade, or if the leverage used is exorbitant – the results can be catastrophic. So, proper risk management should be used at all times – regardless of how strong the trade idea may be. At its least common denominator, any trade is just a single idea… don’t let a single idea cause ruin to your career or account.

Catching a Trend from a Range

Like a butterfly flowering from a cocoon, trends will often begin after prices breakout from a previously defined pattern of congestion or consolidation. Prices will often move for a reason of some sort. Of recent, Central Bank commentary has been a common cause of many breakouts. Traditionally, data releases are the biggest cause of support or resistance breaches, creating shockwaves through markets as traders attempt to price in new information.

Breakouts can commonly occur during news releases, such as we had outlined in the article, Attacking News Events with Price Action. The picture below, taken from the article, illustrates a breakout taking place as a range was broken:

Breakouts can commonly occur around news announcements

Created with Marketscope/Trading Station II, taken from Attacking News Events with Price Action

Unfortunately, by the time the news or data enters the market, it’s often too late to catch the breakout. Instead, the risk of entering may be even bigger as the chance of a pullback potentially draining a trader’s account makes the prospect of chasing the move dicey… at best. It’s often best to sit back and wait for the trend to develop if the initial breakout is missed.

Instead, traders can integrate a very simple technical indicator to assist in looking for ranges that may, eventually, turn into a breakout.

The indicator is Average True Range, and it’s one of the fleet of indicators developed by J. Welles Wilder. We investigated this indicator in the article, Managing Risk with ATR; but this time, we’re going to use Average True Range to look for ranging periods in the market.

A quick fun fact about ATR: Like the other indicator developed by J. Welles Wilder, the default input is often used as 14 periods. I once heard a story, of which I cannot confirm its’ truth – that 14 periods was selected because J. Welles was a student of astrology, and 14 periods was one-half of the lunar cycle.

And while I cannot confirm the story, it does lead me to keep an open mind about the input periods for the indicator. J. Welles Wilder was undoubtedly a genius as a mathematician and engineer; but I do not share his passion for financial astrology.

Average True Range will measure the movement in the market, and as price movements increase in value, ATR will as well. The picture below will illustrate further, using 20 periods as an input:

As price movements get smaller, so does the reading on ATR

Created with Marketscope/Trading Station II

And it’s during these phases of market activity that traders can begin hunting for breakouts; after noticing that the market is showing some degree of a range as prices stay bound between support and resistance.

Finding an Entry Point

There are numerous ways this can be done, simplest of which is to notice the high or the low that was made before prices began congesting. The picture below will illustrate:

Traders can use entry orders to ‘buy new highs’ or ‘sell new lows’

Created with Marketscope/Trading Station II

And if traders want an indicator to help point these prices out, Price Channels, aka ‘Donchian Channels,’ will do just that – displaying the ‘highest high’ and the ‘lowest low,’ for the last x periods (with x being the number of periods you input). For this strategy, robust data is not necessary, so a small input such as 10 can be used for the Price Channel indicator.

Price Channels can be a helpful indicator to the Breakout Trader

Created with Marketscope/Trading Station II

Once this location is found, traders can place an entry orders just outside of this price, and by ‘just outside,’ we mean that if you are placing a long order to buy you would want to look slightly higher than the previous high. Or if an order to sell, the trader would want to enter slightly lower than the previous low. This is in an effort to prevent the dreaded ‘false breakout.’ An entry order can be placed so that once this level is hit, the trade is automatically entered. So, if this is a fast moving market caused by a news event – this order will enter the trader’s position without them needing to manually pull the trigger right when the chaos is entering the market. Without entry orders, trading breakouts would be exponentially more difficult. Without entry orders, trading breakouts would be very similar to chasing moves, which as we mentioned earlier can be disastrous should a reversal occur.

Risk Management

The allure of breakouts is not in their predictability, as breakouts are anything but predictable. The benefit of breakouts is the fast movement: So that IF the trader is on the right side of the move, and IF the move continues in the trader’s direction – they MAY be able to potentially profit from said movement.

That’s a lot of ‘ifs.’

Quite simply, a fast market can reverse very quickly; or a quick rush of volatility can just barely inch across support or resistance to trigger a breakout entry before putting the trader in a very precarious position.

This is where money management comes into play.

You can’t tell the future. Neither can I; or any other human being for that matter. And this is precisely why risk management is so utterly important in all facets of trading. Because breakouts are fast-moving, and volatile – this degree of variability can be seen as being even higher than in a normal range-bound or trending market.

The Number One Reasons Traders Fail is inadequate risk-reward. At all times, at the very least, traders should be looking for as much on the reward side as they offer to give up on the risk side of the trade. With breakouts, traders should look for an even bigger reward relative to the amount of risk being taken on. After all, if the breakout turns out to be a big movement, the larger reward should be more feasible. And if the trade turns out to be a dud, the loss will be minimal.

A one-to-four risk-to-reward ratio – or risking $10 dollars to make $40 – a trader would need to win only once out of 5 trades – to break-even, not including commissions. That’s 20%! Which means: if the trader is winning 21% of their breakouts with a 1-to-4 risk-reward ratio, they can possibly see a net profit: Winning only 21%!!!!

Setting the stop

Since ATR has already been used to look for the range that may turn into a breakout, we can, once again, look to the indicator to place the stop. This can be taken directly from the indicator, as we had explained in Managing Risk with ATR.

Traders are generally best advised to set the stop on the trade based on the time frame that they are using for their analysis and placing their trades. We explained this premise, along with suggesting suitable time frames based on the trader’s goals in the article, The Time Frames of Trading.

Trade management

Breakout trades can also be accentuated by a break-even stop. This would mean moving the stop on the trade to the initial entry price once a pre-determined amount of profit is seen in the trade.

This would allow the trader to remove their initial risk from the trade, while allowing the movement time to develop. This also affords the trader the opportunity to reemploy that risk elsewhere, on another trade idea, or perhaps even another potential breakout entry.

— Written by James Stanley

http://www.dailyfx.com

Once again, JPY is correcting from its sharp rise as results of market jitteriness over the comments by none other than the Japanese Economic Minister Amari himself on the excessive Yen weakness…

As a matter of fact, I believe after this lesson, Japanese officials are going to be more careful with what they say, and all indications are still pointing to further JPY weakness…  But don’t take my words for it, here’s what Japanese politicians are saying:

• Japan Economic Minister Amari (culprit #1 for the recent yen strength) stated that his comments on JPY earlier this week were misinterpreted and he never said 100 level in USD/JPY was a turning point. He planned to attend BOJ meeting next week (Jan 21-22nd) and hoped the BOJ would understand PM Abe’s strong hope to adapt 2% inflation target
• Japan LDP Secretary General Ishiba (culprit #2 for the recent yen strength) commented that the JPY currency was in the process of correcting from excessive strength. Monetary policy must be aggressive to help the economy to recover
• Japan Chief Cabinet Secy Suga: The end of deflation and excessive JPY currency strength was proceeding smoothly
• Japan Vice Finance Minister Yamaguchi commented that government would keep fiscal discipline in FY13 budget. He added that he would attend BOJ meeting next week and expected an agreement between BOJ and government
• Japan PM Abe reiterated his view that he would like someone with strong will to overcome deflation for new BOJ government and this would lead to a more fundamental change in monetary policy.

I conclude that the current Japanese administration still supports further depreciating the Yen and will do whatever it takes to drive inflation back above 2%, even if it means changing the administration at BOJ.  This is not only a powerful message, but the smoking gun that we need to hold on to our long-term positions.  I believe we will see JPY resume its weakness and I wouldn’t be surprised to see USDJPY breaching the 100 level.

So if you are shorting the JPY, might as well hold on.

Peace,

http://www.currencynewstrading.com

PAMM

A percent allocation management module, or PAMM, which may also be referred to as percent allocation money management, describes a software application used predominantly by foreign exchange market (forex) brokers to allow their clients to attach money to a specific trader managing one or more accounts appointed on the basis of a limited power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited quantity of managed accounts. Depending on the size of the deposit each managed account has its own ratio in PAMM. Trader’s activity results (trades, profit and loss) are allocated between managed accounts according to the ratio.

Because currency trading and other forms of arbitrage achieve profitability within very narrow margins, typically, a PAMM system allows more money to be brought into play while distributing the risk of one trader across (usually) multiple investors.

Example:

Lets assume that there are 3 managed accounts under trader’s management:

1. USD account with deposit of $ 100,000 and ratio 9.3%

2. EUR account with deposit of € 400,000 and ratio 49.5%

3. GBP account with deposit of £ 300,000 and ratio 41.2%

Depending on funded amounts different ratios are applied for managed account (for ratio calculation all amounts are converted in USD equivalent based on market rate). In case if, for example, Trader/Money Manager decides to BUY 10 mio EURUSD, PAMM allocates the order between managed accounts according to its ratio. Each managed account has its own part of position and corresponding Profit & Loss. In current example the first managed account will get position LONG 930,000 EUR/USD, the second – LONG 4,950,000 EUR/USD and the third – LONG 4,120,000 EUR/USD. Resulting profit & loss will be automatically calculated for each account depending on market prices.

Money allocation for traders and investors

In this infographic example, there are four investors each with a different amount of risk capital that choose the same money manager. The money manager trades the entire capital, $100,000 total, on one master account (the money manager can only trade the accounts; no access to the investor’s funds is permitted to withdraw any money). The money manager then makes a profit of $12,500, and because in this example the commission fee is 20% that equals to $2,500 in commissions for the money manager. This leaves $110,000 in the master account. The $10,000 profit made will now be credited back to the investors accounts based on the percentage of their share of risk capital in the pool.

MAM Advantages and Solutions

Let’s go to the chart and take  
the first example for stop loss hunting on the USD / CHF .. the shaded area was expected to be a support area when the price returned to it and it  did but as you  notice there was a Candle Wick representing more than 70 pips and after that the price continued higher .. the chart will illustrate more ..


Note : You can click on any image for better appearance

 Another example :               


EUR / USD pair and in this case it is even more powerful stop loss hunting as we actually closed above the last high with about 120 pips then a complete reverse to the down side forming first a Double Top Reversal Pattern then continued down for more than 1150 pips !! .. look at the chart ..

So, Stop Loss Hunting is a fact that you must be aware of and i tried to give you an idea about this kind of trading traps to make a better trading decisions .. 


And as always i hope you all the best ..

SOURCE.

Aside for the lack of “Greece is fixed-er-est” details, the European Titanic continues to drive on autopilot, blissfully unaware it is headed straight into a unsustainable debt load Titanic, and as such Italy was able to sell EUR7.5 billion in 6 Month Bills at lower yield, pushing the 3 Year to the lowest yield since 2010, even as the next Greece, Spain, just reported a collapse in retail sales, which plunged 8.4% Y/Y. But at least it was “better” than lost month’s -12.7%.

An update on European monetary developments showed that M3 soared at a 3 month rate of 3.1%, well above expectations of 2.8%, and the highest since October 2008, which means any possibility of further ECB rate cuts has been effectively taken off the table well into 2013. We do, however, eagerly look forward to the pundits’ explanation how it is possible that Europe is getting progressively worse even as a near record amount of liquidity is sloshing around in the Eurosystem.

But all of this is largely moot, as the reactionary market follows every update out of Washington, in hopes there will be a fiscal cliff resolution. Advance spoiler: there won’t be, at least not until we have a replay of the 2008 TARP/2011 Debt Ceiling scenario, and the market plunges to get DC to act. Sorry, the recent brief downtick was certainly not enough to break the record deadlock in Congress, fondest wishes to the contrary notwithstanding.

Finally, the Shanghai Composite again showed what happens when a local central bank refuses to inject any new liquidity, and dropped 1%, breaching the 2009 lows, and closing at a level of 1973.

Expect little in terms of actual market moving macro news today as the fascination with the Fiscal Cliff persists.

More from Jim Reid:

“Reid moves markets”. I’ve always dreamed of reading such a headline and last night I got my wish. Unfortunately it was Senate Majority Leader Harry Reid who grabbed the headlines and took the shine off what was a mildly positive day for markets by suggesting that little progress had been made in fiscal cliff negotiations over the last week or so. He added that ‘we only have a couple weeks to get something done so we have to get away from the happy talk.’ This overshadowed a day of stronger US data with Durable Goods, Home Prices and Consumer confidence all ahead of expectations. The S&P closed 0.52% lower after being 0.2% higher earlier in the session and again close to the highs just before Reid’s comments hit newswires around 90 minutes before the close.

Yesterday marked only four weeks until Xmas so we do need some US political progress soon. It’s possible that Senator Reid was just reminding his colleagues of the relative urgency of the discussions. This is still the biggest story in global markets at the moment and has the capacity to move the S&P significantly into year end in either way.

Asian markets are trading firmly in negative territory following the weak lead from the US. Losses in equities are being paced by the Hang Seng (-0.83%), Nikkei (-1.0%) and the ASX200 (-0.21%). Chinese equities continue to break new post-crisis lows.

After closing below the symbolic 2,000 level yesterday, the Shanghai Composite is down a further 0.87% this morning. Interestingly the Shanghai index is down 2.5% since the country’s new leaders were unveiled in mid-November, during a period when risk assets have generally performed well. Also breaking new lows is the Japanese 10yr government bond yield which has reached its lowest level in at least 9 years (0.718%), helped by calls from the Japanese opposition leader Abe to pursue aggressive easing until inflation targets are met. Ironic really as if such a policy succeeds then JGBs will be a terrible investment in real terms. Elsewhere the AUD and EUR are virtually unchanged overnight against the greenback (1.0445 and 1.292 respectively) while the Australian iTraxx is 2bp wider at 133bp.

More on yesterday’s Greece deal, it was interesting to see the market’s relatively muted response to the Troika’s package – probably reflecting the fact that the package is conditional on a “positive” debt buyback scheduled to take place over the next few weeks and the approval of member state’s parliaments over what seems to be an aggressive timeline target of Dec 13th. As DB’s Mark Wall pointed out, what is meant by a “positive” outcome on the buyback is not officially defined, however in his view it would be a surprise for the Eurogroup to deny support to Greece on the back of low investor participation in a bond tender after having come this far in negotiations. Greek 10yr bond yields closed 26bp lower yesterday at 16.25%, while the Athex Composite (+0.29%) was denied further gains as Greek financials (-7.9%) reacted negatively to the prospect of dilutive bank recaps from the Troika’s package.
On the subject of European politics, DB’s Gilles Moec published a piece on France’s reform path yesterday, pointing out that since coming to power President Hollande’s stance has tilted towards a more reformist stance than expected, highlighted by the recent competitiveness pact and commitment to fiscal discipline.

Returning to the fiscal cliff, the WSJ reported that Morgan Stanley’s CEO James Gorman has called on the bank’s US employees to contact members of Congress in order to urge lawmakers to reach a deal on the fiscal cliff. According to the article, Mr. Gorman’s email doesn’t mention any particular person or parties, but does employ Obama’s rhetoric in calling for a “balanced solution”. The move follows a recent call to action by the CEO of Caterpillar who wrote to employees encouraging them to sign a “Fix the Debt” petition. On that note, Obama is meeting with business leaders and CEOs today as part of his public PR campaign pushing his solution to the fiscal cliff. Amongst those attending today’s White House session are a who’s who of the corporate world including the heads of Home Depot, Goldman Sachs, Deloitte, Merck, Coca-cola, Macy’s, Yahoo, Pfizer, Comcast, State Farm, AT&T, Archer Daniels Midland and Caterpillar (Bloomberg). John Boehner and other Republicans will be meeting with some members of the same group before today’s White House session.

Away from the cliff debate, Bloomberg news said that the Fed may require US units of foreign banks to comply with tougher capital rules by directing non-US firms to house all their businesses within a US holding company.

Given the lack of any major data releases, the likely focus today will be on Obama’s meeting and headlines around the fiscal cliff. Data-wise, Eurozone money supply, German CPI and Spanish retail sales are scheduled today. In the US, we get the new home sales report for October and the Fed’s Beige Book.

The Most Anticipated Eurogroup Meeting For The Year…

(GR) Germany, France, Italy and Spain to meet on Greece today, will look to reach a joint stance ahead of scheduled Eurogroup meeting on Tuesday Nov 20th (tomorrow)

• Germany wants an enhanced EFSF supervision.
• Will not release next aid tranche before Nov 26th- Extended Greek bailout target to 2022 is not a done deal.

(GR) EU/IMF/ECB Troika to report to the Eurogroup and provide an update on Tuesday, Nov 20th - Need to find an agreement on Greece tomorrow.

(GR) EU President Juncker:

• Progress is being made to find an agreement between IMF and Europe over differences on Greece; Expects a deal will be reached soon and next tranche of aid will be paid.
• Note: The Eurogroup this week highlighted some difference between the IMF and EU on the Greek debt to GDP target.
• Greece’s 120% debt/GDP remained still the benchmark for Greece sustainability, but that target might be pushed back from 2020 to 2022 (in line with request by Greece since the June elections).
• The IMF seeks to keep the target for 2020 and not give Greece extra time

How to interpret these headlines?

This is probably the most anticipated Eurogroup meeting of the year, as the fate of Greece will be decided in this meeting, or at the very least, a cleared policy framework will be provided as time is literally running out for Greece.  With IMF now being the major hurdle because of the debt-sustainability issue, the Eurogroup may have to pickup the slack and take partial losses to cover the extra 2 years of discrepancy, eh Extension, for Greece.  If they are unable to reach an agreement, then there is a real risk that IMF may pullout of the deal as Lagarde is obviously playing hardball.

IMF’s Lagarde: Greek solution should be convincing and sustainable 

I believe that due to the uncertainty of the outcome of this Eurogroup meeting, EURUSD has the potential to swing in either direction, but assuming that Greece gets the extra 2 years of extension and Eurogroup somehow finds the funding needed to support that, then we should see a strong Euro… Any delay in approving Greece’s extension or release of the bailout tranche should add selling pressure to the Euro; after all, time is not on their side.

http://www.fundamentalforexoutlook.com/1596/the-most-anticipated-eurogroup-meeting-for-the-year/

When you click on the File dialog at the top of MetaTrader, one of the top options is “Open Offline.” Most people have no idea what that option does or why it is useful.

Offline charts offer the ability to display custom time frames, although doing so requires programming a custom script. Scripts sort through data on regular charts, then the code rearranges that data into a new time frame. The new time frame appears in offline charts.

Experiment on your own with one of MT4?s default scripts:

Open the navigator. Identify the script called “period_converter.”Drag and drop the script onto a chart. Change the period to something other than the chart than you have open. Theexample in the screenshot below turns an H1chart into an H2 chart. Set the ExtPeriodMultiplier = 2.

Go to File Offline Charts. Select the new H2 period which appears in the list.

Behold, a two hour offline chart. One feature you’ll notice is that this “offline” chart actually appears to update with the price. The script is written in such a way that it feeds data through to the offline chart at regular intervals.

Some traders like to run Expert Advisors on offline charts. It works most of them time, but it adds extra potential problems. Execution will slow down due to the way the script regulates incoming ticks. The same problem, which is caused by running an infinite loop, causes the chart to stop working on rare occasions. This is where the big problems occur. An EA that no longer receives updating prices is a nightmare scenario. Trades are left naked when these events occur. There’s not much that you can do about it from a coding perspective.

Sumber:

http://www.onestepremoved.com/custom-offline-charts-in-metatrader-4/