Today's lesson was very special because we will discuss about forex tradingstrategy is one of the best there is. If you master this strategy properly, you could have a lot of WINS in your forex transactions. You may thank us once you knowthis strategy. Because this strategy is only known by a number of expert traders, but for those of you loyal readers, we give SeputarForex.org for free.
Before I discuss it any further, You need to know that this is not actually a specificstrategy. We prefer to call this strategy a "mediocre" that focus on Technical Analysis of market movements, breakout, bounces, and reversal. Usually we alsoalways put odd on the ratio of risk/reward positive so only need to win 20-30percent of every forex trade. This time I am going to teach you something really new in trading about Forex. We usually observe the entire graph to find a maturetechnical signals. After that we enter into a trade based on the filters as well asconfirmation of the signals that the target is larger than the stop loss.
This strategy utilizes a specific market conditions, and not to use ALL the technicalsignals or information. In addition, this strategy also tried using a negative ratiorisk/reward. Once again, all of the above is not something new or special.However, there is one factor in a strategy that is more important than all the stepswhich we have mentioned. In essence, you should never neglected their most important factor of all strategies, and how much money has been generated fromeach strategy. And the strategy I'm going to teach you this time is how to live wellwith the above strategy.
So, what is his strategy?
This strategy is designed to make money in the event of "Quiet Time" in the Forex market. Quiet Time is common at 17.00-02.00 New York time. In other words,Quiet Time is when traders in New York and a trader in London start trading Forex.
Moments that tend to float, the Forex market is very slow and silent (so calledquiet). So, the opportunity to conduct trade and all the possibilities are enormous.As the market moves back and forth, there's a good chance there that when the market experienced over-extend to one side (up or down), then he will return to the middle of the Quiet Time.
Beyond the Quiet Time, the Forex market moves very dynamic. But when QuietTime begins, the market is slow moving and floating back and forth. Why did thishappen? Because in those moments, the big banks influence on the market wasnot involved in the market. That is, you do not need to compete with the manylarge financial institutions that could control prices go up or down. In addition,kabanyakan trader, even retail traders, has entered the trade at the session to another and now they are waiting for the next session to move rates towards thestop and target. In other words, the majority of traders entering trades at sessionsoutside of the Quiet Time and most of them specify the stop and target difficult to achieve if the market moves in a slow time of Quiet Time. So, that's when there is no reason for the market to move up because incoming orders or trades are closed. Now, the strategy by which I mean is not just doing the buying when the market moves down and doing the selling when the market moves up. Not as simple as it is though I personally also want it.
The first thing You must remember is realizing that not all pairs have the samevalue at a time like this. Example, for Quiet Time occurs only in New York, and the new Asian trading session started, then perform a transaction that involves the JPYis a thing that is really bad. The majority of currency pair does not move duringQuiet Time, but for the JPY, Quiet Time in New York was the beginning of the trading session in Asia. Other currencies should not You trade during Quiet Timeis USD. Because the USD is the hardest currencies are traded, then it is not a good idea to trade USD during Quiet Time. Then I suggest two pairs of these currenciesyou should trade the Quiet Time, the EUR/CAD and USD/CAD. Yes, that's two.
We have tested it a few times and came to the conclusion that the two currency pairs that have the consistency of a moment of Quiet Time. The movement ofboth enough to help you achieve the targets you set. Both also tend to float backat a price that is opened during Quiet Time, amounting to about 75% of the time.So, Your winning percentage soared high.
We ourselves have won as many as 86% of our last trade 623 with two currency pairs this because both of them are the best currency pairs during Quiet Time. Sonow You know why we Transact as Quiet Time, and what we are operating withmoments of Quiet Time. Let's discuss about how to Transact the Quiet Time.
The process is very simple, because it uses only manual trading strategy, not byautomatic programs are complicated and complex.
The following rules for the trade manual:
- Mark the opening price at the moment of Quiet Time (17: 00 New York time).
- Place one Short Pending orders at 15 pips above the open price (12 Pip Stop, a 10 Pip target).
- Place one Long Pending Order on 15 pip under open price (12 pip stop, a 10 piptarget).
- If there is one order so, cancel the order to another.
- If a trade is still open at the end of Quiet Time (at about 02.00 New York time), and none of the order so, close all orders.
Such is the rule of trade manuals you'll use if you want to trade EUR/CAD orUSD/CAD during Quiet Time. As I said, this is different from automated programsthat can generate millions of dollars more than can be done manually and it can also move quickly.
With a number of manual and the possibility of profit and 75% of all your trade, then the calculation of 100 trade opportunities will be like this:
- 100 trade
- 25 loss @ 12 pips: Total-300
- 75 lucky @ 10 pips: total + 750.
- Net profit: + 450 pips in 100 trades.
The calculation of the above hypothesis is sheer numbers. Of course, thecalculation will also be affected by partial profits taken and some administrative costs as well as market fluctuations. Still remember with my explanation about thenegative ratio risk/reward?
That's where the risk/reward ratio of negative plays. Due to the above trades have been regulated in such a way with a negative ratio risk/reward plus more trademanagement applied to turned out to be more severe because it makes littleprofit-taking, the account balance is over with results below the average. Notice how those numbers change in real life because of market conditions,management control of trade, and trade break even.
Now you understand why it is important to have a high percentage of profitswhen the ratio R/R not more than 2 Risk and Reward. But those figures showedhow powerful this strategy because it is supported by a consistent market conditions. Then I have to explain all things wonderful about this strategy. Butnow, we need to talk about the downside.
One of the negative side of this strategy is the price spreads so high during aQuiet Time. Often, because of the conditions it's possible to do the entry, brokerswill increase the price spreads up to six to eight, even 10 pip thereby making trademore difficult.
Then there are two ways to fight this kind of intrigue:
- Find the broker with price spreads are low. Remember, there are no brokers that' kind "during the Quiet Time. However, if you switch from the brokers that charge10 pips to the broker that only 4 pips, you've moved on from the trade that is detrimental to a profitable trade.
- Turn on the automatic monitor system for observing the markets at that time.When the price spread is down to a reasonable point, entered the trade at that point. Remember, not all traders can do this. So, option number one was more likely to do.
The other issue is difficult to implement a strategy perfectly, due to time constraints and the number of graphics that should be dipelototi. When you have to be in front of monitors throughout the session and is ready to open or close atrade, or put it off, then there is an awful lot of mistakes that can be made.Unfortunately, every mistake that will have a major impact on the level of luck. So, as a trader's manual, you should focus on your trading. Just a little bit wrongwould destroy chances of grabbing the good thing it is.
Talking about success, this is the right moment to define what is meant by apowerful strategy. Many people claim to have a system that produces 100% profitin one month or one week as well and I never heard anyone got 100% profit in one hour. If that is what you are looking for, you are misplaced.
A system that can produce profits like that never existed and will never exist.Someone who 100% profitable in a month for sure it will be the world's richestman in a month since he started trading Forex. And if there are, surely you'veheard it. An impressive strategy is a system that could produce 5 to 10 percent in a month. Actually not impressive anymore in case like this, the elite of this name.
Let me tell you again on you about Warren Buffett. He only produce 12 to 15 percent a year. So, if you think there are producing 100% of day, you have to get up from Your reverie. The truth is there is a Forex strategy that offers greateradvantages than those won by Warren Buffet.
And for us, three percent per month (or around that) was more than enough to be called a tremendous advantage. For example, You have $ 10,000 in your accountand you can generate seven percent a month earlier with a strategy of Quiet Time.You will be called the incredible when You can change US $ 10,000 to millions ofdollars became just a few years with a strategy of Quiet Time. Then you will be referred to people with extraordinary income. With a few goals that reasoned, as well as an understanding of the strategy of Quiet Time, I hope you're ready tobecome a successful Forex trader.
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