SUMMARY OF 35 RATE OF RETURN - mbfx forex trading system v2.0

SUMMARY OF 35 RATE OF RETURN ~ mbfx forex trading system v2.0

The last 13 Months have proven to be both challenging and rewarding with this new Price Action Swing Trading Methodology. Transitioning from Day Trading to Swing Trading is very difficult especially if you - like myself- have spent most of your trading years glued to the computer screen in search of immediate gains each day, only to be constantly disappointed. Swing Trading solves most of the problems associated with Day Trading and provides a more solid foundation upon which to establish a viable source of Long-Term Wealth.

THE PERFORMANCE

The Trade Setup Service, which was started on July 1, 2014, involves providing detailed trade information on trading opportunities on the Daily and 4 Hour Charts for Subscribers to trade on their personal accounts. Assuming a level of risk of 5% per trade, a Subscriber would now have generated a Rate of Return equivalent to 35%-from 15 Trades. This has come from 9 winning trades and 6 losses.

RATE OF RETURN

JULY 1, 2014 - JULY 23, 2015

At this current rate of growth, this Subscriber would now only need 6 more trades to achieve a remarkable Rate of Return of 100%. 

100% RATE OF RETURN IN 3 MONTHS

         (Assumes an Average Risk & Gain of 105 Pips and 150 Pips, respectively)

By continuing to trade the Currency Markets with this unique Methodology, you too will be able to attain your major Short to Long-Term Monetary Goals. 

THE STRATEGY

FXCM Charts are used to provide the entry signals from the Daily Chart, as this platform uses the New York Close Candle of the Daily Chart - crucial to this Price Action Methodology. Stop Losses range from 90 and 120 Pips, depending on the time frame used, while the targeted Pips Per Trade is between 100 to 200 Pips. Targeting fewer than 100 Pips exposes your trades to the more volatile, lower probability setups while aiming above 200 Pips risks pullbacks that take away your gains.

Trades are usually held for a few days, with the actual number of days depending on the individual trade. This holding period acts as an anchor that controls our greed so that we do not hold out for more than the market is offering. Based on this rule, some of these trades have had to be closed earlier than planned if they had not reached their targets on the last day of the holding period.

THE TRADES 

Following a somewhat shaky start with the initial 100 Pip loss on the AUD USD, the Methodology was able to recover with consistent gains in subsequent months. These included the AUD NZD, the AUD USD and the GBP CAD.

AUD NZD TRADE - 69 PIPS

AUD USD TRADE - 148 PIPS

GBP CAD TRADE - 199 PIPS

The AUD NZD trade was an example of a trade that had to be closed early. The original target of over 100 Pips was expected to be hit within the allotted time, especially since we were breaking out from a Consolidation. However, even though I believed that this was going to go higher, I had to closed the trade in order to comply with my rule. As you can appreciate from that pullback below the Trend Line, this was the correct decision - a difficult one after an initial loss, but a necessary one.

The AUD USD trade was a prime example of the discipline and patience demanded of us in order to be successful Swing Traders. As you can see from the graph, there was a sharp pullback bullish that took the trade right back to the Entry Price just before it U-Turned to hit our target. Had we been constantly monitoring the trade as we used to do as Day Traders, we would have began to panic and second-guess ourselves tempting us to close the trade for a small gain. After all, a small gain is always better than a loss any day of the week. However....

If a trade is going to be successful, it has to be allowed to move according to the natural waves of the market. Ideally, we want our trades to move quickly to our targets - as was the case with the GBP CAD above - but the reality is that the market does not always move on our schedule. In order for winning trades to captured, therefore, we must not interfere with the natural dynamic of the market.

It is for this reason that I have included in the Trade Setup sent to Subscribers, the Guideline of never monitoring a trade while it is in motion.

Configure your trading platform so that you only see that the trade is still open without seeing the actual graph, floating balance or account balance. This is a crucial safeguard required to keep our emotions out of the picture.

As with all strategies, there are periods of losing streaks that have to be faced before we can continue towards our targets. The last three trades have led to losses with the latest one coming from the GBP USD. Although these periods are challenging, they are easier to face and overcome compared to Day Trading. This is because the time in between Swing Trades is sufficient to allow us to objectively analyze these trades and regain our composure and objectivity ahead of the next opportunity.

With Day Trading, we believed we could not afford to sit back because there was always another trade within a few hours that could erase the losing ones and make us "feel better". This left little time to ensure that the next trade was not hastily and emotionally taken in order get quick "revenge" on the market and the brokers.

SUMMARY

If Long-Term Wealth is your goal, then Swing Trading the Currency Market will definitely help you along this journey. We have been made to believe that things need to happen immediately and that waiting patiently for anything is the greatest sin of all. Rome was not built in a day and neither is significant Financial Independence. The Forex Market is a very attractive market to trade but where is stated that the only way to benefit from it is to trade it every day or whenever we want?

By trading only twice per month and thereby minimizing your exposure to this dangerous market, that 35% Return is comparable to most conservative investments instruments. Even if you decided to risk only 2% Per Trade, you would have still earned a significant return of 14%...

RATE OF RETURN AT 2% RISK PER TRADE

In either case, you would be right up there with the best in the industry...

_______________________________________

______________________________________________

_______________________________________________

_______________________________________________

More info for SUMMARY OF 35 RATE OF RETURN ~ mbfx forex trading system v2.0:

EURO USD TRADING GAIN AHEAD OF STRONG REVERSAL - forex lines 7 trading system review

EURO USD TRADING GAIN AHEAD OF STRONG REVERSAL ~ forex lines 7 trading system review

The EURO USD provided us with a small trading gain of 46 Pips on Thursday as we took advantage of the sharp Bullish Reversal that was predicted in December 2015. The original trading target was 165 Pips but by the end of the Holding Period established for this trade this had not been hit, obligating us to close our trade for the smaller profit. During this trade, a sharp bearish pullback had threatened our Stop Loss, coming within 5 Pips of taking out our trade. 

This pullback would have tempted many to exit the trade for fear of being stopped out. However, thanks to the rule that we have of never looking at our trades while they are open, we were able to capture this trading gain as the market u-turned and rallied once more. As a result, this trade, combined with the 138 Pips from the GBP USD, has now given us a good start to 2016 with a Rate of Return of 9.4%.

The screenshot below is taken from the Private Video Analysis we did for the EURO USD in December which predicted the sharp rally. 

As can be seen from the current patterns for this pair, this was exactly what occurred in the last few days. This provided us with the trading gain as we entered at one of the Bullish Candlestick Signals.

The chart below shows our Entry Setup on the 4 Hour Chart, including the original target that was set at the Resistance Boundary of the Range.

Entry and our Stop Loss placement were done using this ABC setup - a setup that was predicted a few days earlier...

Now this is where it got interesting. For traders who choose to follow their trades, the pullback that took place after entry would have led many to close the trade as the market began reversing towards the Stop Loss.

This would have led to an unnecessary loss instead of the trading gains offered by the rally that eventually took place. The temptation to monitor our trades while they are in motion is very common. It is very natural to want to ensure that our trades are heading towards our targets without any pullbacks that threaten our Stops. While this can prevent some losses, it is a habit that can affect our long-term profitability. 

The Forex, like all markets, has a natural tendency to move in waves towards its daily, weekly, monthly and yearly targets. This reflects the changing value of currency pairs in response to changes in economic fundamentals and investor sentiment. It is therefore necessary for us to expect this for all our trades and not interfere. This is why it is crucial to adjust your platform so that you do not see the chart of the trade open nor the balance but only the tab that shows you whether the trade is still open.

Another important issue related to this trade was the Holding Period. Keeping our trades open for too short a period can curtail our profitability while having them open for too long can expose us open to unnecessary volatility. It is for this reason why a specific time period is used for each type of trade to establish a balance between these two extremes. 

When the Holding Period for this trade had ended, we had to close the trade regardless of the floating profit/loss at the time. This decision was later proven to be accurate as you can see from the pullback now taking place.

This trade highlighted many of the important things we need to succeed at trading over the long-term. These relate to the technical factors that determine our decision to execute a trade but more importantly the emotional aspects of trading - the traders Achilles Heel. 

Watching our trades can feel like the right thing to do to ensure profitability given the volatility of this market. However, this can be a serious hindrance to success if this leads to the habit of constantly closing trades before they have a chance to hit our targets. By adhering to the rule of not watching your trades and obeying the Holding Period, you will be assured of maximum gains for each trade ahead of sharp market reversals.

___________________________________

More info for EURO USD TRADING GAIN AHEAD OF STRONG REVERSAL ~ forex lines 7 trading system review:

800 PIPS ON OFFER FROM GBP USD DECLINE - trading system forex octopus

800 PIPS ON OFFER FROM GBP USD DECLINE ~ trading system forex octopus

Having formed a small Pennant just below the major Resistance of a larger Pennant, the GBP USD could be headed towards the Support area some 800 Pips away. If we see a strong bearish signal below the Support of this smaller Pennant, traders can expect a big payday in the weeks ahead.


DAILY CHART- LARGE PENNANT

• Formed following the end of the safe-haven buying of US Dollars during the Financial Crisis;
• Has now pulled back to the Resistance of the Pennant following a breakout;
• Could break Support to continue the new Downtrend in favour of the USD to reflect the end of Quantitative Easing;

This downtrend has been in place since July this year after forming the high of 1,7190.


DAILY CHART - DOWNTREND

  



If this downtrend is going to continue, we will need to see a convincing bearish breakout signal following the test of the Support of this smaller Pennant.


DAILY CHART - PENNANT SETUP

 Over 800 Pips of profits would be offered during this breakout. Some traders will enter and hold their position for the entire duration of this decline, while most will take gains and re-enter according to their profit goals and holding period constraints. But given that these trends have...

1. False entry signals;
2. Pullbacks & small Consolidations;
3. Weak Stop Loss areas;

...how do you determine when to enter and where to place your Stop Loss to protect your trade from the natural waves of the market? How do you know which time frame to follow in case the trend starts to reverse unexpectedly before that Support area is hit?

___________________________________________________________

RECENT EMAIL FROM CLIENT

____________________________

GET STARTED TODAY
____________________________

US$99.00

US$99.00

US$69.99

US$49.99

FREE

FREE

(See "SWING TRADING STRATEGY & TRADE RESULTS" for Product Details)
_____________________________

Duane Shepherd 

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

More info for 800 PIPS ON OFFER FROM GBP USD DECLINE ~ trading system forex octopus:

EURO CAD BULLS HAVE THE EDGE WITH STRONG BULL CROWN - macd forex trading system

EURO CAD BULLS HAVE THE EDGE WITH STRONG BULL CROWN ~ macd forex trading system

A Bull Crown Formation has now appeared at the Inner Downtrend Line following the sharp Bearish breakout from the Range Setup. This appears to indicate the start of an Uptrend in the days ahead, despite the predominantly Bearish direction of this currency pair.

From the chart below, we can see that the Breakout that was taking place from the Range Setup on the Daily Chart has now ended with a rally above the Inner Downtrend Line.

DAILY CHART- OVERALL DOWNTREND

Breakouts from Consolidations such as these can include periods of pullbacks that eventually lead to the continuation of the trend. In fact, above the Inner Downtrend Line, a Range Setup has been formed above the Uptrend/Counter Trend Lines. If these are broken bearish with a strong candle, it could lead to the resumption of the overall breakout.

DAILY CHART- RANGE SETUP

However, there are two factors that give the edge to the Bulls and the likelihood of a new Uptrend in the days ahead. The first is that Breakouts from Range Consolidations of this size are generally expected to last a longer time than appears to be happening here. Although the pullbacks are expected, the time that it has now taken in moving sideways is longer than is normal for Breakouts such as these.

DAILY CHART- EXPECTED BREAKOUT DISTANCE

The second factor has to do with the Bull Crown setup that has appeared above the Inner Downtrend Line. Not only is it unusual to have such a long period of indecision with these Breakouts, but it is even more so whenever a strong setup that signals a move in the opposite direction appears.

DAILY CHART- BULL CROWN

Because of these two factors, a breakout above the Resistance of the Range Setup is the more likely scenario. This would first carry us to the Outer Downtrend Line where the pair could encounter some resistance. From here, a break of this barrier could take place to signal even stronger gains for the EURO. This would require another strong signal given the significance of the barrier and that there is always a possibility of the existing trend continuing as long as we are still below this trend line.

DAILY CHART- PROJECTED MOVES

Aggressive traders may be tempted to get into this trade before a breakout signal is provided. This is often done to get in ahead of the market especially if the breakout candle is too large and does not provide a small enough Stop Loss. However, given the frequency of False Breakouts, it is always better to wait for the Daily Chart to signal the direction in order to trade with greater confidence. Stop Losses may be larger but if they are placed at an area that is strong enough to protect the trade, a trader can hold his/her position with greater certainty that profit targets will be hit.

_______________________________________________

More info for EURO CAD BULLS HAVE THE EDGE WITH STRONG BULL CROWN ~ macd forex trading system:

NZD CAD SHARP 800 PIP FALSE BREAKOUT AS FORECAST - mtf forex trading system

NZD CAD SHARP 800 PIP FALSE BREAKOUT AS FORECAST ~ mtf forex trading system

The last time we examined this pair in April this year, we had projected a sharp decline in favour of the Canadian Dollar based on the False Breakout pattern that had been unfolding. In the chart below, we can see that the Bullish Candles that attempted to break out long from the Pennant were eventually taken out by the slow Bearish Candles that took us back inside of the Consolidation.

DAILY CHART - FALSE BREAKOUT 

Based on this movement and the fact that False Breakouts usually lead to breaks at the opposing end of the Pennant, we had projected the pair to break towards the major Outer Uptrend Line.

DAILY CHART - PROJECTED DECLINE 

Looking at the current situation on the Daily Chart, we can see that this forecast had in fact materialized over the last few weeks. Starting from the high of the start of the reversal, the pair has declined sharply by approximately 800 Pips.

DAILY CHART - SHARP DECLINE 

Now, how could you have taken advantage of this profitable move?

Having seen the start of the breakout below the Support of the Pennant, the first thing to do would have been to draw the Downtrend Lines that were being formed.

DAILY CHART - DOWNTREND LINES 

These Downtrend Lines can be used for the placement of Stop Losses with the assurance that your profits will be protected throughout the trade. The next step would have been to enter short at around the 0,9100 area, with a Stop Loss of 100 Pips placed above the Inner Downtrend Line. Your Limit Order would initially be set to the Outer Uptrend Line for a profit of 370 Pips.

  

DAILY CHART - ENTRY SETUP

As the market began to move in you favour, you would have moved your Stop Loss lower, breaking even initially and then locking in profits below your Entry. This would have continued until the market started to reverse bullish just above the Outer Uptrend Line target. Your Stop Loss would “sadly” have been taken out and you would have pocketed 300 Pips in gains.

DAILY CHART - 300 PIP PROFIT

This is one of the ways in which Breakouts and False Breakouts can be profitably traded in this market. Many of these opportunities are likely to continue to present themselves for us given the current environment of low liquidity that now characterizes the major Currency Pairs. As Swing Traders, we simply need to spot these setups and the appropriate signals provided to take advantage of them, for continued monetary reward.

_______________________________________________

More info for NZD CAD SHARP 800 PIP FALSE BREAKOUT AS FORECAST ~ mtf forex trading system: