Intro
I have been trading this method with fantastic success for 3 weeks. But it is raw and that I wantforexforum.co.zahelp from seasoned traders.
I hate to make such claims with no announcements , however, the thing is I had my account handled and that I dropped -21%. The trader was utilizing 0.2 and 0.5 lots. I managed to make 5% in 3 weeks using 0.01 and 0.02 lots , I created over 1000 pips. When I am ve, so I'll present my stats.
The Procedure:
The systems is really simple and operates on daily charts,so can't be affected by stress and noise. It's trading in the direction of the trend when great news is published. How?
You can have a fast read about currencies prognosis and news anywhere. You're able to read view in Forexcrunch to view what's currently going on. All you need is to know what are powerful currencies and currencies , there's absolutely absolutely no need for profound fundamental analysis.
Now you split the currencies into powerful currencies and weak currencies. So now I am writing;
Strong:
AUD
CAD
NZD
Terrible :
EUR
JPY
CHF
(I don't have a crystal clear perspective on GBP -can wait following election- and USD right now)
Without reading anything you can take a peek at daily and weekly charts should you like. However, I prefer reading. Remember that trading is similar to anything , needs some sort of work.
Today after we have the listing of currency strength we will do only these transactions for the next week. Thats an illuion for this particular week.
Short
Eur/AUD
EUR/CAD
Extended
NZD/JPY
AUD/JPY
CAD/JPY
If we want to short the AUD we short AUD/NZD or AUD/CAD , not AUD/JPY.
When to Create the trade??
Now after you spot these trends ,you will look for trend retractments , you then input after retractments , ideal?? No. wrong.
You will wait for great news for powerful currencies or bad news for poor currencies and THEN you input from the trend direction.
When Just?
You DON'T make limit orders during news release!! You wait for the news , MAKE SURE traders buy on the tendency direction and then you enter with trend direction with SL around 50-60 pips or in break of trend line.
And what's TP ?? You course stops into another news release or place TP 100-150 pips. I noticed it can move around 200-300 pips occasionally.
In Conclusion :
The machine is very simple, secure and effective. You buy daily trend direction and with a REASON to buy. Since what would be the probabilities 1- Following the trend. 2-Good news- Price really moved in trend direction and news direction!? Very low probability IMO.