100 RETURN ONLY 9 TRADES AWAY ~ one percent daily forex trading system
Between January and September of this year, several trades were made using my Price Action Methodology to generate gains of 150 Pips on average per trade. The most recent of these came from the AUD NZD and the AUD USD at the start of September which together provided a total of 218 Pips. If an investor or trader with an initial capital of US$100,000 were to use this Methodology as a means of accumulating large rates of return within a few months, he is likely to be able double his capital within 6 months with only a handful of High Probability Trades. The table below shows some of the trades made earlier this year which represented a sample of those made over the last 6 years (see Past Trades). On average, they required a risk of 105 Pips and provided an average gain of 150 Pips.
TABLE 1 - JANUARY 10 TO SEPTEMBER 17, 2014
The Methodology is such that these trades arise an average of 2 times per month. They rely on the Daily and 4 Hour Charts for entry and exit signals and were held for a pre-determined number of days until their targets were hit. With that initial capital of US$100,000 and starting with the last 2 trades closed in September, the investor or trader would be just 4 months and 9 trades away from generating a 106% return.
AUD NZD TRADE- DAILY CHART
AUD USD TRADE- DAILY CHART
TABLE 2 - TRADES NEEDED IN 4 MONTHS
Assumptions - 5% Risk Per Trade, 2-3 Trades/Month, 105 Pips Risk, 150 Pip Reward, No Losses
The risk per trade would be 5% and only one trade would be executed at a time. Naturally, with all Methodologies, losses can be expected along the way as shown in Table 1. However, given the accuracy of the strategy in picking winners, these losses would only temporarily delay the attainment of this 100% return.
These figures reflect the past and expected accuracy of the Methodology in identifying the best trading opportunities. Trades throughout the Forex can be divided between those with a high probability of success and those with average to low probabilities of success. Smaller Time Frames generally provide the latter while trading strategies based on the Larger Time Frames will always give higher-paying trades for larger returns.
As you would have noticed, the last two trades shown here on the AUD USD and AUD NZD were breakouts from Consolidation boundaries. These setups have become the most common pattern in the Forex market due to the extraordinarily low levels of volatility in 2014. In fact, most of the trades since January have also come from Consolidation breakouts. This requires a strategy that not only delivers in normal trending markets, but also during periods of low volatility that require trading between Support and Resistance as well as breakouts when they finally take place.
Although these results are possible within a fairly short period, they require a lot more discipline and patience relative to Day Trading. They are not as frequent as the trades that are seen on the Smaller Time Frames, but when they do present themselves, the Pips that they offer to traders more than compensate for the wait. The high probability that these trades will be successful when certain criteria are met, also justifies the use of this Methodology by Portfolio Managers dedicated to achieving the short-term and long-term goals of their clients.
38 PIPS GONE IN 277 PIP EURO USD TRADE ~ forex end of day trading system
The EURO USD has been steadily declining over the last several weeks following the turn at the Resistance of its large Pennant Consolidation. There have been very few pauses or pullbacks in this strong downtrend that now has its sights set on the Support boundary of this Pennant, 350 Pips away. Trading these slow trends can be very profitable and with a short time remaining before that boundary is hit, the current trade opened on this pair could provide a very large return in October. The recent pullback at the Resistance of this Pennant setup can be seen in the Daily Chart below. This large Consolidation was actually formed following the sharp gains for the USD during the period of risk-aversion related to the Financial Crisis. DAILY CHART - PENNANT CONSOLIDATION
DAILY CHART- OPEN TRADE
To take advantage of this strong trend, entry took place shortly after the currency pair broke a Counter Trend Line (CTL) to resume the trend. The Stop Loss was placed at the Resistance of the Pennant on the 4 Hour Chart and the target set to just above the Support Line. 4 HOUR CHART
As you can see from this chart, someone could actually enter another short position now following this recent U-turn and strong Bearish Candle signal. The Stop Loss would be place above the high of this CTL break. The strong inverse correlation between the EURO USD and the USD CHF can also be used to capture additional profits. The USD CHF is now headed to an Outer Downtrend Line in a slow steady uptrend that could provide some additional pips when that target is hit. USD CHF - RALLY TO OUTER DOWNTREND LINE
DAILY CHART - UPTREND
These targets could be hit within the next two weeks and can provide large gains for the patient Swing Trader.
148 PIPS AUD USD 2 WEEKS 2 TRADES 218 PIPS ~ fibonacci forex trading system pdf
This latest trade based on our Price Action, Swing Trading Methodology provided 148 Pips on the Aussie Dollar over a short 4-day period. This took our total gain to 218 Pips in 2 weeks following the 70-Pip trade on the AUD NZD pair at the start of the month. At this rate, we could see a triple digit rate of return for 2014 when these results are combined with previous setups identified by the Methodology. It would also provide further evidence of the stability and higher returns that are possible when trading is done on the Larger Time Frames.
The AUD NZD gain took place following a break of a large Consolidation setup on the Daily Chart. The signal to enter came from a Bullish Candle break of a Range at the Resistance of this large Pennant.
AUD NZD -DAILY CHART SETUP
AUD NZD- DAILY CHART SIGNAL
TRADE RESULT - LIVE ACCOUNT
The chart patterns and candles from FXCM are used to identify the entry signals while the Dukascopy platform is used for trades on the Live Account. The Methodology utilizes the New York Candle close of the Daily Chart as the basis for the Price Action strategy, which is best provided by FXCM.
The AUD NZD was one of the last pairs that saw gains for the Aussie dollar this month. Since then, the currency began to lose value against several of the other major currencies over the last few days. It was within this context that the AUD USD trade opportunity presented itself on Thursday September 11, 2014.
The setup was a bearish break of a large Pennant formed between April and September this year.
AUD USD - DAILY CHART PENNANT
The size of the Consolidation suggested that a breakout could continue for several hundred pips in favour of the US Dollar in the months ahead. However, based on our strategy and a specific technical aspect of this setup, a short-term gain of between 100 and 200 Pips was the more prudent decision.
Entry took place at the third candle that broke the Consolidation with the target set based on the criteria established for this type of breakout. The Stop Loss was also placed at a strategy-determined area to prevent the trade from being affected by spikes along the way.
DAILY CHART TRADE SETUP
After only a few days, the target was hit. Towards the end of the trend, the market actually reversed to the entry price with a Bullish Candlestick Formation. However, a large Bearish Candle shortly followed to take out that attempted reversal and give us our reward.
TRADE RESULT
LIVE ACCOUNT RESULT
TRADE SUMMARY
TRADE TYPE
CONSOLIDATION BREAKOUT
STOP LOSS
116 PIPS
TRADE RESULT
148 PIPS
TIME TO TARGET
4 DAYS
This trend was always expected to provide large gains for the trader in a short time since breakouts from Consolidations always produce sharp movements. In fact, it only took 2 days for the 100-Pip mark to be reached.
DAILY CHART -100 PIPS IN 2 DAYS
Nevertheless, if the trader was looking at the Pip count or the Account Balance on their trading platform, chances are he/she would have started to panic and exit at the start of the bullish reversal to the entry price. If trading was also being done on the 30 Minute Chart, that sharp bullish signal combined with the Trend Line break and the Double Bottoms may have even convinced the trader to start going Long.
30 MINUTE CHART- REVERSAL SIGNALS
The net result would have been a much smaller profit compared to that which was offered by the market. Constantly monitoring the trade and using the Smaller Time Frames will always tempt us to make decisions based on emotions and our ego despite our best intentions. Trades that are objectively analyzed and executed can be easily sabotaged by the desire to always know what is happening with the trade.
Nevertheless, this habit is understandable and expected especially if you are transitioning to the Larger Time Frames. Most of us have been taught by trading companies and brokers to trade in a way that requires us to develop this and other bad habits. We have been led to believe that trading has to be done every hour and every day in order to be profitable. This frame of mind will always lead to certain practices that generate an impatient temperament in us and cause us to constantly make unwise trade decisions. The best thing to do is to persist until these habits are no longer a part of your trading.
Alternately, one could open up a separate Demo Account, practice trading on the Daily and 4 Hour Charts and compare the results with an existing strategy on the lower charts. Over time, you will see the large difference in profitability and appreciate how unnecessary it is to monitor the trade. This can be done using the detailed Trade Setups that are emailed to you as a Subscriber.
TRADE SETUP- AUD USD
PAIR
AUD USD
TRADE TYPE
CONSOLIDATION BREAKOUT
ENTRY DATE
TODAY, SEPTEMBER 11, 2014
ENTRY TIME
21 00 GMT
ENTRY PRICE (MINIMUM)
0,9096
STOP LOSS
0,9216
LIMIT ORDER
0,8952
More info for 148 PIPS AUD USD 2 WEEKS 2 TRADES 218 PIPS ~ fibonacci forex trading system pdf:
74 PIPS FROM EURO CAD PROVIDES A 27 RETURN AND 567 PIPS FROM 9 TRADES ~ forex never lose trading system
EURO CAD provided us with a smaller-than-expected but positive result on Tuesday, due to the lower liquidity conditions of the Christmas Holidays. Our original target of 150 Pips could not be met under these circumstances, requiring us to exit for 74 Pips at the end of our specified Holding Period. Nevertheless, the strong gain had a significant influence on our overall Rate of Return, which now stands at 27.4% since July of this year. With over 500 Pips from only 9 trades, we are only 3 trades away from the 1000 Pip mark and a 50% Rate of Return. After meeting this short-term target, we would then need only 4 more trades for a remarkable return of 100%. This pair began to decline following a False Breakout Reversal at the Resistance of the Range on the Daily Chart. As with all False Breakouts, a move to the end of the boundary was expected.
DAILY CHART
FXCM used for Entry Signal based on the New York Close Candle
The move was also taking place within a Downtrend that started with the break of the Trend Lines of the previous Uptrend.
DAILY CHART
The signal that we used to confirm that this trade should be taken was the 2nd bearish candle as it was deemed to be a Normal Candle- the Candle that we obey for our entries (Section 8 -“Consolidation Trading on the Forex Market - A Complete Trading System”). After determining that it met our criteria for trading within Consolidations, our Entry Setup was done on the 4 Hour Chart...
4 HOUR CHART
An Entry Order was used in this trade as a Market Order would have required a Stop Loss that exceeded our maximum of 90 Pips for entry based on the 4 Hour Chart. After pulling back to trigger our trade, the market then meandered sideways over the next few days. With trading activity and liquidity limited, we exited for the 74-Pip gain at the end of our Pre-Determined Holding period.
DAILY CHART - LIVE ACCOUNT RESULT
Dukascopy used for Live Trades
With this latest trade, our Rate of Return table is now closer to the mid-way point of our Medium Term goal of 100%.
RATE OF RETURN FROM METHODOLOGY
5% Risk Per Trade, 100-200 Pips Target per Trade; No Trading done in August
Summarizing these results, an average of 63 Pips have been made on each trade, supported by a fairly high rate of success.
SUMMARY OF RESULTS
These gains were due in large part to the last 8 trades, which steadily made up for the initial loss of 100 Pips that may have shocked my early Subscribers!!
SUMMARY OF RESULTS
The Demo Account which tracks the Live Account trades was not to be left out. The trade pushed the Return to 22% after only 5 trades.
DAILY CHART
DEMO ACCOUNT RESULT
Having started in October, the results on this Account are equally encouraging (verified at Myfxbook http://www.myfxbook.com/members/DRFXTRADING/duane/1079693)
RATE OF RETURN - FXCM DEMO ACCOUNT
SUMMARY OF RESULTS
The results from the Methodology at this stage bode well for what is possible within a few months time. By only targeting the highest paying opportunities that have a high probability of success each month, your chances of steady, long-term gains with limited draw-down are greatly enhanced. Nevertheless, given the inevitability of losses, we always need to remain confident in our strategy despite setbacks along the way.Once you have tested your strategy successfully on a Demo Account over a reasonable period of time (at least 6 Months), you can be more assured that the gains will outnumber losses by a reasonable margin. This will allow you to achieve strong Rates of Return over the Long-Term, with fewer losses.
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