Fusion Markets

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Every so often, we post articles we think you might find useful and will help you grow as a trader.

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Trading and Brokerage
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Index CFD Dividends | Week 22/07/2024
Fusion Markets

Please see the table below for any upcoming dividend adjustments on indices for the week starting July 22nd, 2024.

Dividend Table 22.07.2024

* Please note these figures are quoted in the index point amount


What is a dividend?

Dividends are a portion of company earnings given to shareholders. As indices are often composed of individual shares, an index dividend pays out based on individual shares proportional to the index’s weighting.

Trading on a CFD Index does not create any ownership of the underlying stocks, or an entitlement to receive the actual dividends from these companies.


What is an ex-dividend date?

An ex-dividend date is the cut-off date a share must be owned in order to receive a dividend. If an investor buys a share after the ex-dividend date, then they will not be entitled to earn or pay the next round of dividends. This is usually one business day before the dividend.


Do dividends affect my position?

Share prices should theoretically fall by the amount of the dividend. If the company has paid the dividend with cash, then there is less cash on the balance sheet, so in theory, the company should be valued lower (by the amount of the dividend).

Due to the corresponding price movement of the stock index when the ex-dividend date is reached, Fusion must provide a 'dividend' adjustment to ensure that no trader is positively or negatively impacted by the ex-dividend event.


How will the dividend appear on my account?

The dividend will appear as a cash adjustment on your account. If your base currency is different from the currency the dividend is paid out in, then it will be converted at the live FX rate to your base currency.


Why was I charged a dividend?

Depending on your position, given you are holding your position before the ex-dividend date, you will either be paid or charged the amount based on the dividend. Traders shorting an index will pay the dividend, whereas traders who are long the index will be paid the dividend.


Why didn’t I receive my dividend?

You may not have received a dividend for a number of reasons:

- You entered your position after the ex-dividend date

- You are trading an index without dividend payments

- You are short an index

If you believe the reasons above do not apply to your position, please reach out to our support team at [email protected] and we’ll investigate further for you.

Forex Trading
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Understanding Different Types of Trading Accounts
Fusion Markets

Trading accounts serve as the cornerstone of the trading journey, providing individuals access to financial markets where they can buy and sell various assets. These accounts not only facilitate trading activities but also play a crucial role in managing funds, tracking performance, and executing strategies.  

However, with numerous options available, selecting the right trading account can be daunting, especially for novice traders. In this guide, we'll unravel the intricacies of trading accounts, compare demo accounts with live ones (Zero | Classic), explore different types of live trading accounts, and offer guidance on choosing the most suitable account type based on individual needs and goals. 


Demo vs. Live Accounts

Before diving into the complexities of live trading accounts, it's essential to understand the distinction between demo accounts and live accounts.

Demo accounts, also known as paper trading accounts, provide a simulated environment for practice. They allow traders to test trading strategies, familiarise themselves with platform features, and observe market dynamics. These accounts use virtual money, eliminating financial risk. However, they have limitations: trades aren't executed in real markets, potentially causing time and price discrepancies, and large orders can be filled at unrealistic prices due to artificial liquidity.

While demo accounts offer a risk-free way to gain trading experience, they lack the emotional involvement and psychological challenges present in live trading. This can often become a problem for new traders as they results they observe on a demo account may not be replicated on a live account. This is because risking your own hard-earned cash introduced a plethora of emotions that get in the way of you thinking clearly and making calculated decisions.

Transitioning from a demo account to a live one is a crucial step for aspiring traders. Live accounts involve real money, introducing emotions such as fear, greed, and anxiety into the trading equation. While demo accounts serve as valuable learning tools, they cannot replicate the psychological impact of trading with real funds. Therefore, transitioning to a live account is essential for traders to develop the discipline, emotional resilience, and decision-making skills necessary for success in the live market environment.


Demo v Live Accounts

Types of Live Trading Accounts

When it comes to live trading accounts, Fusion Markets offers a variety of options tailored to meet the diverse needs and preferences of traders. Let's explore the key features, advantages, and potential drawbacks of each type: 

Classic Account

The Classic account option caters to forex traders seeking a straightforward and convenient trading experience. Created with user comfort as a priority, there's no need to fret over commission calculations prior to each trade.  

We streamline the process by factoring in costs through spreads, eliminating the hassle of additional fees or complex computations.  

With the Classic account, what you see is precisely what you receive, delivering simplicity and peace of mind to traders. 

Classic Account

Learn more about our Classic account 

Zero Account

With a commission of $2.25 per side and spreads at 0.0, our Zero Account allows clients to engage in trading with raw spreads, offering a seamless and cost-effective trading experience. This account option appeals particularly to traders accustomed to managing their own commission calculations.

Ideal for active traders and scalpers seeking tight spreads and low trading costs.

Zero Account

Learn more about our Zero account. 

Swap-Free Account

Tailored for traders adhering to religious beliefs prohibiting the receipt or payment of overnight swaps, our Swap-Free Accounts offer a no-interest solution.

Enjoy access to over 50 of the world’s leading financial instruments, including Forex Pairs and Indices, at our signature low rates.

Available across all account types, providing flexibility for traders with specific religious or cultural requirements.

Swap Free 

Learn more about our Swap-Free account 

Pro Account

This account is designed to allow AU and ASIC traders access to higher leverage. As a Fusion Pro client, you will have advantages over those with ordinary accounts. Some of those perks include accessing events, having a dedicated client manager, and gaining access to leverage as high as 1:500.

Although the Fusion Pro account has many perks, in order for you to be eligible for this account you must fill in either the Wealth Test or the Sophisticated Investor Test here.


Fusion Pro Account 

Learn more about our Pro Account.

Factors to Consider When Choosing an Account

Selecting the right trading account involves careful consideration of various factors to ensure alignment with individual trading goals and preferences. Here are some essential considerations to keep in mind:

Risk Tolerance

Risk tolerance plays a pivotal role in determining the suitability of a forex account type for each trader. It reflects an individual's comfort level with market volatility, potential losses, and overall risk exposure.

When selecting a forex account type, it's crucial to align the account's features and trading conditions with your risk tolerance. For instance, traders with a low risk tolerance may prefer accounts with lower leverage, higher liquidity, and robust risk management features to minimise potential losses.

On the other hand, traders with a higher risk tolerance may opt for accounts with higher leverage and potentially higher returns, albeit with increased risk.

Trading Experience

Trading experience is a key factor to consider when selecting a forex account type as it directly influences a trader's comfort level, skill set, and familiarity with market dynamics.

Novice traders who are new to the forex market may prefer account types that offer simplified trading conditions, educational resources, and demo account options to practice and hone their skills without risking real capital.

Experienced traders with a deep understanding of market mechanics and proven trading strategies may seek advanced account types with features such as customisable leverage, access to advanced trading tools, and stop out levels. By aligning the account type with their trading experience, traders can optimise their trading environment to suit their knowledge level, maximise potential profits, and minimise the likelihood of costly mistakes.

Consider your level of trading experience and opt for an account that suits your skill level, whether you're a novice or seasoned trader.

Account Size and Leverage

Account size and leverage are critical factors to consider when selecting a forex account type, as they directly impact trading capital and risk exposure.

Traders with smaller account sizes may prefer account types that offer lower minimum deposit requirements and more conservative leverage options to manage risk effectively and preserve capital. Whereas traders with larger account sizes may have more flexibility in choosing account types with higher leverage options, allowing them to maximise potential returns while maintaining prudent risk management practices.

Additionally, traders with varying risk preferences may opt for account types that offer customisable leverage settings to align with their risk tolerance and trading strategies. By carefully evaluating account size and leverage options, traders can tailor their trading environment to suit their individual risk preferences, capital constraints, and long-term financial goals. All Fusion accounts have no minimum account size requirements, providing flexibility for traders of all sizes.

Cost of Trading

Spreads and commissions are crucial considerations when selecting a forex account type, as they directly impact trading costs and profitability.

Traders employing high-frequency trading strategies or frequent position turnover may prioritise account types with low spreads and commission rates to optimise trading performance and efficiency. We understand the importance of tight spreads, and you can review our historical spreads to see our commitment to competitive pricing. All our account types offer the same low costs, ensuring consistency and transparency. Conversely, traders with longer-term investment horizons may be less concerned with spreads and commissions and prioritise other account features, such as access to a diverse range of financial instruments or advanced trading tools.

Guidance on Selecting the Right Account

To choose the right trading account, it's essential to conduct thorough research, compare different options, and consider your individual needs and objectives. Here are some practical steps to guide you through the selection process:

Step One – Research Account Types

Explore the features, benefits, and costs of each account type offered by Fusion Markets, and identify the one that best aligns with your trading style and preferences. 

Step Two – Assess Trading Conditions

Evaluate the trading conditions, including spreads, execution speed, available assets, and platform compatibility, to ensure optimal trading experience.

Step Three– Start Small

Consider starting with a smaller account size and gradually scaling up as you gain experience and confidence in your trading abilities.

Step Four – Review and Adjust

Regularly review your trading performance and account settings, and be prepared to adjust your chosen account type if necessary to adapt to changing market conditions or evolving trading goals.


Understanding the different types of trading accounts is essential for novice traders embarking on their trading journey. By comparing demo accounts with live ones, exploring various live trading account types, and considering key factors when choosing an account, traders can make informed decisions that align with their goals and preferences.

Explore Fusion Markets' range of account options Fusion Markets Trading Accounts to find the perfect fit for your needs. Remember, selecting the right trading account is a critical step towards achieving success in the dynamic world of financial markets.

Forex Trading
Account Types
Trading Tips
Market Hours
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Upcoming Holidays in July 2024
Fusion Markets

This July,  Canada Day / Establishment Day (1st July), Pre-Independence Day (3rd July), Independence Day (4th July), Post Independence Day (5th July), and Indian Market Holiday (17th July) are upcoming holidays that will affect standard market hours. Please take the following holiday hours into account and adjust your positions accordingly.

Holiday Hours July 2024

Please note the following changes are based on MT4 server time (GMT +3).  

What does this mean for you? 

If you trade the markets above then you’ll need to be aware of the days the market is closed or if there are changes to opening hours. Additionally, please note that there will be reduced liquidity and some spreads may widen on some products during these periods. If these are not markets you typically trade, then these changes will not affect you and you can continue trading as usual.  


Do I need to do anything? 

The main thing you need to do is be prepared for changes in market hours and ensure you have adjusted your positions accordingly. You must also remain aware of the potential changes to liquidity and spreads during this time. Please make sure your account has been sufficiently funded. Log into your Client Hub here to fund your account. 



Don’t worry we will still be working around the clock, our support team is available 24/7, so please reach out to us if you have any questions or concerns. 
Thanks for trading with Fusion Markets. Happy Holidays and Happy Trading.

Holiday Hours
Trading Tips
Economic Events
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Fusion Markets Celebrates 5 Years
Fusion Markets

Five years ago, if you had told us that Fusion would be trading over $130 billion USD in volume monthly or served tens of thousands of clients around the world, we would have laughed. Reflecting on our journey, it's astonishing to see how far we've come from those early days in a modest WeWork office in the heart of Melbourne.


To mark this milestone, we want to give back to you, our valued clients. You are the ones who have helped us grow into one of the best forex brokerages in the industry, and you deserve to celebrate with us. That's why we're offering 10% rebates on all commissions for trades opened on May 31st, Fusion’s birthday. Read more about it here.

Fusion Markets 5 Year Promotion 

While we still have a long way to go to achieve our mission of making low-cost trading available to everyone, everywhere, it has been an incredible journey so far. We want to share with you how Fusion has evolved into one of the world’s leading low-cost trading platforms, serving traders in over 160 countries.

Humble Beginnings

Moving Up

The Future

The 5 Year Anniversary Promotion

A Timeline of Our Proudest Moments

Humble Beginnings

It all started with me (Phil) in January 2019 in a small co-working space, working with our development team to craft what would eventually become the client hub and website. Once we were able to go live and accept clients, I was joined by my friend and former colleague, David Swinden (our COO). To keep our client’s costs low, we had to keep things pretty lean back then. I look back fondly at when we were celebrating some new milestone, cutting an almond croissant (from legendary Melbourne Lune, of course) in half to make every dollar count. We both had newborns, so our routines were early mornings and late nights after the kids’ bath. We were exhausted, but we were driven by the ambition to build something extraordinary.

Fusion's First Office

Fusion Market's First WeWork Office

We already knew what we needed to do to deliver radically low costs, so we weren't worried about that. We’d spent over two decades between us helping build some of Australia’s biggest brokers. When we launched, traders immediately recognised the value we were offering. Providing $4.5 commissions with 0.0 spreads in a market dominated by $7 commission brokerages was an easy value proposition. But we didn’t expect it to go as well as it did. Traders seeking more profitability on their trades came to us in droves. In our first year, we won a number of awards like “Best MT4 Broker” and “Lowest Spreads Broker” from Brokerchooser. We were on our way, delivering value to our traders from day one.

Moving Up

As our team grew, so did our need for space. We moved into our first official office in between multiple Melbourne COVID lockdowns, located in Cremorne, Melbourne’s startup mecca. What we didn’t know at the time was that our neighbour was a bustling personal training studio. The middle of the day often brought the sound of loud techno music and heavy deadlifts constantly thudding against the walls, reverberating throughout the whole office.

Fusion Markets First Official Office

Building desks and getting set up in Fusion Markets' First Official Office

Despite the noise, we thrived. Our team—experts in their fields with an insatiable hunger for success—channelled this expertise directly to our clients. In that office, we introduced MetaTrader 5, $0 Commission US Share CFD trading, Fusion+ (our proprietary copy trading platform), and several industry-leading trading tools. We were moving fast with no signs of slowing down, just the way we liked it.

The next turning point came when we moved to the big leagues with our office in South Yarra. This move not only signified our growth but also underscored our commitment to providing a better working environment for those who were on the journey with us and set us up for the future with space for 60+ desks. We wanted our team to be at their best to deliver the best possible trading experience for our clients and we found it in our new digs.

South Yarra HQFiring on all Cylinders at Fusion Markets' South Yarra HQ

We started hitting our stride. Our dedication to excellence and customer satisfaction drove us to introduce several new products and services: we launched our exclusive Live Spreads tool, platforms such as cTrader, TradingView, extended our support hours to 24/7, and even updated our Client Hub. Our clients were getting bombarded with new improvements and features. Those awards from our first year? We're humbled to have won them and more every year since.


It's hard to encapsulate five years in a short blog post, but I wanted to highlight the essence of who we are and how we got here. Perseverance, finding the best people around the world and an unyielding commitment to saving our clients' money are the cornerstones of our journey and our current identity. That will never change.

The Future

The most exciting aspect of this journey is that we’re really just getting started. This year, we have some of our most exciting features in the pipeline: automating client withdrawals (24/7), revamping our refer-a-friend program, and launching our new spot cryptocurrency exchange, Day1x (Click the link to join the waitlist). And that’s only scratching the surface.


If you’re reading this (thank you for reading this far!), you are a core part of why we’re here today and a beneficiary of our relentless efforts to provide an unparalleled trading experience you won’t find anywhere else. To show our gratitude, we’re making sure you get to celebrate with us. Read more about our 5 Year Anniversary offering below.

The 5 Year Anniversary Promotion

Fusion Markets 5 year Anniversary

We’re giving you 10% rebates on all commissions for trades opened on May 31st. This will be full round-turn commissions, so you don’t need to close your trade on the 31st. As long as it’s opened on May 31st (at any part of the trading day—00:01 to 23:59 server time), you’ll get a 10% rebate credited to your account (for both Zero and Classic accounts).


We’ve seen other companies celebrate their anniversaries but never give anything back to those who helped get them there. That’s what this birthday is all about. It's saying “thank you” by going to the heart of what makes Fusion tick; putting that little bit extra back into your pocket.


You can read the full terms and conditions here.

And here for ASIC Pro traders.

A Quick Recap of Some of Our Proudest Moments


Forex Trading
Trading and Brokerage
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Inside the Mind of a Successful Trader: Understanding the Psychology Behind Forex Success
Fusion Markets

Forex trading, with its promise of financial freedom and independence, has captivated the minds of millions around the globe. Yet, beneath the surface of charts, indicators, and currency pairs lies a complex landscape shaped not just by market dynamics but by the intricate workings of the human mind.  

Success is not solely dictated by market knowledge or technical prowess but by the ability to master one's own trading psychology. This article delves deep into the psyche of successful forex traders, exploring the mindset, habits, and strategies that set them apart from the rest.  

Whether you're a novice trader taking your first steps into the world of forex or an experienced investor seeking to enhance your trading performance, understanding the psychological aspects of trading is paramount to achieving lasting success. Join us as we unravel the mysteries of the human mind and discover the keys to unlocking your full potential in the forex market. 


Defining Success in Forex Trading

The Role of Psychology in Trading

Characteristics of Successful Traders

Embracing Emotional Intelligence

Developing a Winning Mindset

The Psychology of Risk Management

Learning from Mistakes


Defining Success in Forex Trading

The concept of "success" in forex trading is a bit of a hot topic. Some see it as being all about the money, while others argue it's more about staying consistent, managing risks, and growing as a trader. Plus, success means different things to different people, so what floats one trader's boat might not do it for another.

A “successful” forex trader possesses discipline, focus, determination and emotional resilience. This enables them to take a calculated approach to their trading, ultimately producing a consistent performance over the long-term.

Every trader will encounter losses. It’s how you manage your risk that will determine your outcome from these losses. In addition to managing your risk, having a psychological plan in place to prevent your emotions from taking control is also important. For example, some day traders have a daily loss limit that, if reached, results in them walking away for the day and trading the next day. Others might have a psychological limit of 4 losing trades in a row and so forth.

A successful trader is ‘successful’ over the long-term. Making profits is only one piece of the puzzle. You cannot be successful in profiting over the long-term without being successful in risk management and psychological behaviour.


The Role of Psychology in Trading

At the heart of successful forex trading lies the understanding of one's own trading psychology and the ability to manage emotions effectively. 

The psychology of trading encompasses a range of factors, including emotional intelligence, mindset, and behaviour. Successful traders understand the importance of emotional regulation and employ strategies to remain calm and focused during times of market volatility. By developing self-awareness and cultivating a positive mindset, traders can overcome psychological barriers and make rational decisions based on analysis rather than emotion.

Characteristics of Successful Trader

Successful forex traders share common traits that set them apart from the rest. These include discipline, patience, adaptability, and a willingness to accept losses as part of the trading process. They approach the market with a clear plan, stick to their strategies, and remain unphased by short-term fluctuations.

Discipline is the most critical characteristic of successful traders. It involves following a trading plan meticulously, adhering to risk management principles, and avoiding impulsive decisions. Patience is also essential, as successful traders understand that success in forex trading is a marathon, not a sprint. They wait for high-probability trading opportunities and avoid chasing after quick profits.

Adaptability is another hallmark of successful traders. They recognise that the forex market is constantly evolving, and they adjust their strategies accordingly to stay ahead of the curve. Whether it's adapting to changing market conditions or refining their trading approach based on new information, successful traders remain flexible and open-minded.

In addition to the above, there are other catalysts outside of trading that contribute to the success of a trader. On, of which, is maintaining a good sleeping habit. With the forex market trading 24/5, it’s impractical for most traders to stay away all day and night. Sleep deprivation can cause many issues in all forms of life, and trading is no different.

Embracing Emotional Intelligence 

Emotional intelligence plays a pivotal role in forex trading, enabling traders to recognise and manage their emotions effectively. Successful traders cultivate self-awareness, self-regulation, and empathy, allowing them to make rational decisions even in high-pressure situations. By understanding their emotional triggers, they can maintain composure and avoid impulsive actions. 

Self-awareness involves recognising one's emotions and their impact on trading decisions. Successful traders are attuned to their emotional state and take proactive steps to prevent emotions from clouding their judgment. Self-regulation is the ability to control impulses and maintain discipline in the face of temptation. Successful traders develop strategies to manage stress, anxiety, and other negative emotions that can interfere with trading performance. 

Empathy is also important in forex trading, as it allows traders to understand the perspectives and motivations of other market participants. By putting themselves in the shoes of other traders, successful traders can anticipate market movements and react accordingly. Empathy also helps traders build relationships with other market participants, fostering collaboration and mutual respect. 

Successful traders also have an understanding of cognitive and confirmation biases. We recommend all traders read our two-part series on the 10 hidden biases here: 

Developing a Winning Mindset

A winning mindset is essential for success in forex trading. Successful traders maintain a positive attitude, focus on continuous improvement, and view challenges as opportunities for growth. They approach each trade with confidence, knowing that setbacks are temporary and part of the learning curve.

A winning mindset is characterised by several key traits, including optimism, determination, resilience, and good habits. Optimism involves maintaining a positive outlook, even in the face of adversity. Successful traders believe in their ability to succeed and remain confident in their trading approach, regardless of short-term setbacks.

Determination is the drive to succeed despite obstacles and setbacks. Successful traders are tenacious in pursuit of their goals and refuse to be deterred by temporary failures. They view challenges as opportunities for growth and approach them with a sense of determination and perseverance.

Resilience is the ability to bounce back from setbacks and adapt to changing circumstances. Successful traders understand that losses are inevitable in forex trading and view them as learning experiences rather than failures. They remain resilient in the face of adversity, quickly recovering from losses and maintaining their focus on long-term success.

And finally, building good habits is paramount to becoming a successful trader. “It takes 21 days to form a habit and 90 days to form a lifestyle”. Understand what your identity-based habits are and how to build them to your arsenal of tools to conquer the market.

The Psychology of Risk Management

Risk management is a cornerstone of successful forex trading, and mastering it requires a deep understanding of one's risk tolerance and the ability to make calculated decisions. Successful traders prioritise capital preservation and employ risk management strategies such as setting stop-loss orders, diversifying their portfolios, and sizing their positions appropriately. By limiting their exposure to risk, they can protect their capital and avoid catastrophic losses.

Effective risk management involves several key principles, including diversification, position sizing, and risk-reward ratio. Diversification involves spreading risk across multiple assets or currency pairs to reduce the impact of any single trade or market event. Successful traders diversify their portfolios to minimise risk and maximise returns over the long term.

Position sizing is the process of determining the appropriate amount of capital to allocate to each trade based on risk tolerance and market conditions. Successful traders carefully assess the potential risks and rewards of each trade and adjust their position sizes accordingly. By sizing their positions appropriately, they can minimise losses and maximise profits while preserving capital.

Risk-reward ratio is the ratio of potential profit to potential loss on a trade. Successful traders seek to maintain a favourable risk-reward ratio on each trade, typically aiming for a ratio of at least 2:1 or higher. By consistently seeking trades with a positive risk-reward ratio, they can achieve consistent profits over time while minimising losses.

Learning from Mistakes

Mistakes are inevitable in forex trading, but successful traders view them as valuable learning opportunities rather than failures. They analyse their trades objectively, identify areas for improvement, and adjust their strategies accordingly. By embracing a growth mindset, they continuously refine their skills and adapt to changing market conditions. Every mistake becomes a stepping stone towards greater proficiency and success.

Learning from mistakes involves several key steps, including reflection, analysis, and adaptation. Successful traders take the time to reflect on their trades and identify any patterns or recurring mistakes. They analyse their trading journals and performance metrics to gain insights into their strengths and weaknesses.

Based on their analysis, successful traders adapt their strategies and techniques to address any areas for improvement. They may seek out additional education or training, refine their trading approach, or implement new risk management strategies. By learning from their mistakes and making adjustments, they can improve their trading performance over time and achieve greater success in the forex market.


In the dynamic world of forex trading, success is not solely determined by market knowledge or technical prowess but by the ability to master one's own trading psychology. By understanding the psychological factors that influence trading behaviour, traders can develop the mindset, habits, and strategies necessary for long-term success.  

Remember, that everyone faces the same challenges in the markets. Only those who can overcome the psychological barriers in trading end up succeeding over the long-term. Sometimes in bizarre market conditions, or on an off day, it’s better to take a step back and examine why we’ve been behaving and thinking as we have. 

Whether you're a novice trader or an experienced investor, cultivating emotional intelligence, embracing risk management, and maintaining a winning mindset are key to thriving in the competitive forex market. As you embark on your trading journey, remember that success is not just about profits but about the journey of self-discovery and growth. 

Trading Psychology
Pine Script
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How to Use Pine Script for Trading on TradingView
Fusion Markets

There are a number of ways to automate your trading with the programming language you use depending on the platform you trade on. For example, MetaTrader 4/5 traders use EAs coded in mql4/5, cTrader uses cbots coded in c#, and TradingView traders use Pinescript.  

Pine Script is a domain-specific language developed by TradingView that allows traders to create custom technical indicators and strategies, turning the platform into a powerhouse for market analysis.  

In this blog post, we will walk you through everything you need to know about using PineScript for Forex trading. 



Getting Started

PineScript Syntax

Conditional Statements and Loops

Developing Strategies

Backtesting Your Strategy

Common Pitfalls to Avoid


What Is PineScript

PineScript is a coding language developed by TradingView specifically for creating indicators and strategies on their platform. It is similar to other programming languages, but with its own unique syntax and functions tailored for trading analysis.  

Don't let the idea of coding scare you – the syntax is similar to other popular languages like JavaScript and C++, making it easy for traders with coding experience to pick up. Plus, with the large online community and resources available, you can easily learn and use Pinescript in a matter of days. 

Getting Started

To start using PineScript on TradingView, you will need a TradingView account. If you don't have one yet, go ahead and sign up – it's free! Make sure to connect it to your Fusion Markets account. Once you have an account, navigate to the "Pine Editor" tab on the top menu bar. 

Next, open the PineScript editor on TradingView and choose from a variety of templates or start from scratch. The editor also includes a preview function that allows you to see how your code will look on a chart in real-time. 

You will also need to have a basic understanding of coding concepts such as variables, functions, and conditional statements. If these terms sound foreign to you, don't worry we’ve got you covered!  


PineScript Syntax

At the core of Pine Script's functionality is its syntax, which forms the building blocks of any script. Its power lies in its simplicity and flexibility, enabling users to craft a wide array of technical analysis tools.  

Here are a few main things that you should know: 

Variables and Data Types 

Variables in Pine Script play a crucial role in storing and manipulating data. They come in different types such as integers, floats, bools, strings, and series. Variables in PineScript are declared using the "var" keyword, followed by the variable name and an equal sign (=) before the value assigned to it. For example: `var myVariable = 10;`.   

Understanding these data types is fundamental. For instance, a series type is used for time series data, enabling the creation of moving averages, oscillators, and more. 


In this example, ` length` is an integer variable that stores the input value for the length of the moving average, and ma is a series variable that stores the moving average data. 


Functions and Operators 

Pine Script offers an extensive range of built-in functions and operators for performing calculations and executing specific actions. Functions in PineScript start with the "study" keyword, followed by the name of the function and parentheses. For example: `study("My Custom Indicator")`   

Functions like ` sma() ` (simple moving average) and ` plot() ` aid in technical analysis by computing indicators and displaying plotted lines on the chart.  


Here, ` sma() `, ` stdev() `, and arithmetic operators (` + `, ` ` -) are used to compute Bollinger Bands by calculating the moving average, standard deviation, and upper and lower bands. 


Conditional Statements and Loops 

Conditional statements and loops are essential for decision-making and iterative processes. Using ` if-else` statements and ` for ` loops, traders can create dynamic conditions and repetitive actions within their scripts. 


In this snippet, an RSI (Relative Strength Index) script displays the RSI values along with overbought and oversold levels. Conditional statements can be applied to trigger alerts or make trading decisions based on RSI levels crossing certain thresholds. 


Understanding variables, functions, conditional statements, and loops is pivotal for crafting effective indicators and strategies. With a solid grasp of PineScript syntax, traders can develop personalised trading tools, enhancing their analysis and decision-making in the financial markets. To learn more about the syntax, please refer to the PineScript language manual. 


Creating Custom Indicators 

One of the most popular uses for PineScript is creating custom indicators. This can range from simple moving averages to complex algorithms that incorporate various technical analysis tools. The possibilities are endless, and with some creativity and testing, you can come up with unique and effective indicators for your trading strategy. 


Now, let's walk through the process of creating a simple moving average (SMA) indicator using Pine Script. An SMA is a popular trend-following indicator that smoothens price data to identify the underlying trend. 


In this script: 

  • We specify the title, short title, and overlay properties for the indicator. 

  • We create an input variable, length, that allows the user to customise the length of the SMA. 

  • We calculate the SMA using the sma() function. 

  • We use the plot() function to display the SMA on the chart. 


This is just a basic example to get you started. Why don’t we take it up a notch? 

Let’s create a strategy that uses the 200 Exponential Moving Average (EMA) as a basis for making buy (long) signals when the price crosses above this moving average. 


Let's break down the code: 

  • Setting up Strategy Parameters: The script sets the strategy's title, short title, and indicates that it's an overlay on the price chart using strategy(). 

  • Calculating the 200 EMA: It defines a 200-period EMA (ema200) based on the closing prices. 

  • Plotting the 200 EMA: The script plots the 200 EMA on the chart in blue. 

  • Identifying EMA Crossover: It calculates the points where the closing price crosses above the 200 EMA using ta.crossover() and assigns these points to the variable emaCrossover. 

  • Strategy Entry Conditions: When the crossover happens (i.e., when the closing price crosses above the 200 EMA), the strategy generates a "Buy" entry signal using strategy.entry() with the condition when=emaCrossover. 

  • Plotting Buy Signals: The script uses plotshape() to plot small green triangles below the price bars where the crossover condition is met. 


Here’s how it looks on a chart: 


EURUSD Weekly Chart 

Kindly be aware that the script provided above serves as an example, and it will require adjustments to align with your particular objectives. 


In summary, this script creates buy signals (represented by green triangles below the price bars) whenever the closing price crosses above the 200-period Exponential Moving Average. This strategy assumes that such crossovers might indicate a potential upward trend and trigger a buy action. 


As you can see, Pine Script is incredibly versatile, and you can create highly sophisticated indicators with complex logic to match your trading strategy.

Developing Strategies

Aside from creating indicators, PineScript also allows you to develop fully automated trading strategies. By combining different technical indicators and conditions, you can create a set of rules for buying and selling that can be backtested and optimised for maximum profitability. This feature is especially beneficial for traders who prefer a systematic approach to trading. 


Tips and Tricks 

  • Start with a clear and well-defined trading strategy: Before jumping into coding, it's essential to have a solid understanding of your trading approach and goals. A clear strategy will make it easier to translate it into code and avoid any confusion during development.  

  • Use proper risk management techniques: No matter how well-crafted a strategy is, managing risk is crucial in trading. PineScript offers functions for setting stop-loss and take-profit levels, as well as position sizing based on risk percentage. Utilising these functions can help minimise losses and maximize gains.  

  • Test and refine: Developing a successful trading strategy takes time, patience, and continuous testing. Backtesting with PineScript allows for this refinement process, where traders can analyse the results of their strategies and make necessary adjustments until it meets their expectations.  

Backtesting Your Strategy

Once you've written your Pine Script, it's time to test its performance in various market conditions. TradingView makes this process seamless. You can choose the time frame and historical data you want to test your strategy against. The platform will then run your script against that data, showing you how your strategy would have performed. It helps identify any flaws or weaknesses in the strategy and allows for adjustments before risking real capital. This can significantly increase the chances of success in live trading. 

Common Pitfalls to Avoid

While Pine Script provides endless possibilities for developing your strategies, there are common pitfalls to avoid: 

  • Over-Optimisation: Tweaking your strategy too much based on past data can lead to over-optimisation. Your strategy may perform well historically but fail in real-time trading. 

  • Neglecting Risk Management: Not paying enough attention to risk management can lead to significant losses. It's crucial to protect your capital at all costs. 

  • Lack of Patience: Don't rush into live trading. The more time you spend testing and refining your strategy, the better it will perform in the long run. 

  • Ignoring Market Conditions: Markets are not static, and what works in one type of market might not work in another. Keep an eye on market conditions and be ready to adapt. 


There's a saying in the world of forex trading - "The trend is your friend". And with PineScript, you can easily identify and follow market trends with custom indicators that suit your trading style. From simple moving averages to complex multi-indicator strategies, PineScript allows you to create and test different approaches until you find the one that works best for you. 

But PineScript is not just limited to forex trading. It can also be used in other markets such as stocks and cryptocurrencies. So, if you're a multi-asset trader, learning how to use PineScript can greatly benefit your overall trading strategy and performance. 

Furthermore, PineScript is constantly evolving and being updated with new features. This means that there's always something new to learn and experiment with, keeping your trading skills fresh and adaptable. 

And don't be intimidated by coding - embrace it with PineScript and see how it can enhance your trading. Who knows, you may even discover a hidden passion for programming along the way! 

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