Saturday, February 9, 2019
The Best Real Strategy Forex Trading Strategy
Before I discuss it further, you need to know that this is actually not a specific strategy. We prefer to call it a "mediocre" strategy that focuses on Technical Analysis of market movements, breakouts, bounces, and reversals. Usually we also always place odds on a positive risk / reward ratio so we only need to win 20-30 percent of each forex trade. This time I will teach you something really new in trading around Forex. Usually we observe the entire graph in search of mature technical signals. After that we enter into a trade based on the filter and confirmation of the signal that the target is greater than the stop loss.
This strategy utilizes certain market conditions, and does not use ALL technical signals or information available. In addition, this strategy also tries to use risk / negative reward ratios. Again, all of the above is not something special or new. However, there is one factor in one strategy that is more important than all the steps we have mentioned. In essence, you should not ignore the most important factors of all strategies, and how much money has been generated from each strategy. And the strategy that I will teach you this time is how to run the above strategy well.
So what is the strategy?
This strategy is designed in such a way as to make money when "Quiet Time" occurs on the Forex market. Quiet Time usually occurs at 17.00-02.00 New York time. In other words, Quiet Time is when a trader in New York rests and a trader in London starts Forex trading.
At that moment, the Forex market tends to float very slowly and quietly (so-called quiet). So, the opportunity to trade and all possibilities is very large. As the market moves forward and backward, there is a good chance there that when the market experiences over-extend to one side (up or down), it will return to the middle when Quiet Time.
Outside Quiet Time, the Forex market moves very dynamically. But when Quiet Time began, the market moved slowly and floated back and forth. Why did it happen? Because at that time, large banks that had an influence on the market were not involved in the market. That is, you don't need to compete with so many large financial institutions that can control prices up or down. In addition, many traders, even retail traders, have entered the trade in another session and now they are waiting for the next session to move prices towards the stop and target. In other words, the majority of traders enter trading on sessions outside Quiet Time and most of them determine stops and targets that are difficult to achieve if the market moves slowly during Quiet Time. So, at that moment there is no reason for the market to move up because the order is entered or the trade is closed. Now, the strategy I mean is not just buying when the market goes down and sells when the market moves up. Not as simple as that even though I personally also want it.
The first thing you have to remember is to realize that not all currency pairs have the same value at times like this. For example, because Quiet Time only happened in New York, and the trading session in Asia just started, making transactions involving JPY was a really bad thing. The majority of currency pairs do not move at Quiet Time, but for JPY, Quiet Time in New York is the beginning of a trading session in Asia. Other currencies that you should not trade when Quiet Time is USD. Because USD is the most difficult currency to trade, it is not a good idea to trade USD when Quiet Time. So I suggest these two pairs of currencies that you should trade when Quiet Time, namely EUR / CAD and GBP / CAD. Yes, those two.
We have tested it several times and come to the conclusion that those two currency pairs have consistency when Quiet Time. The movement of both of them is enough to help you reach the target you set. Both also tend to float back at prices opened when Quiet Time, which is around 75% at that time. So, your winning percentage skyrocketed.
We ourselves have won 86% of our last 623 trades with these two currency pairs because both of them are the best currency pairs when Quiet Time. So now you already know why we transact at Quiet Time, and what we trade when Quiet Time. Let's discuss how to transact when Quiet Time.
The process is very simple because it only uses manual trading strategies, not with complex and complex automated programs.
Following are the rules for manual trading:
• Mark the price open at Quiet Time (17.00 New York time).
• Place one Short Pending Order at 15 pips above the open price (12 Pip Stop, 10 Pip targets).
• Place one Long Pending Order at 15 pips below the open price (12 pip stop, 10 pip target).
• If there is one order, cancel the other order.
• If one trade is still open at the end of Quiet Time (around 02.00 New York time), and none of the orders are made, close all orders.
Such is the manual trading rule that you will use if you want to trade EUR / CAD or GBP / CAD during Quiet Time. As I said, this is far different from an automated program that can generate millions of dollars more than can be done manually and he can also move quickly.
With manual numbers and a possible profit of 75% of all your trades, the calculation of the 100 trades entered will be like this:
• 100 trades
• 25 losses @ 12 pips: Total -300
• 75 profit @ 10 pips: total +750.
• Net profit: +450 pips in 100 trades.
The calculation above is a mere numerical hypothesis. Of course, the calculation will also be influenced by some of the profits taken and some administrative costs and market fluctuations. Do you still remember my explanation about negative risk / reward ratio?
That's where the negative risk / reward ratio plays a role. Because the above trade has been arranged in such a way as a negative risk / reward ratio plus the trade management applied it turns out to make it worse because of the small profit taking, the account balance ends with the results below the average.
Notice how the numbers change in real life because of market conditions, trade management controls, and break-even trading.
Now you understand why it is important to have a high profit percentage when the R / R ratio is not more than 2 Risk and 1 Reward. However, these figures show how strong this strategy is because it is supported by consistent market conditions. So I have explained all the great things about this strategy. But now, we need to talk about the downside.
One of the negative side of this strategy is that the price of spreads becomes high when Quiet Time. Often, because of the conditions that are very possible to make entries, the broker will increase the price of the spread to six, eight and even 10 pips so that it makes trading more difficult.
Then there are two ways to fight this kind of intrigue:
• Search for brokers with low spread prices. Remember, there is no broker who is "kind" when Quiet Time. But if you switch from a broker that charges 10 pips to a broker that is only 4 pips away, you have moved from adverse trading to profitable trading.
• Turn on the automatic monitor system to observe the market at that time. When the spread price drops to a fair point, enter the trade at that point. Remember, not all traders can do this. So, the number one option was more likely to be done.
Another issue is that it is difficult to implement a strategy perfectly, because of time constraints and the number of graphics that must be glared at. When you have to be in front of a monitor throughout the session and ready to open or close a trade, or postpone it, then there are many mistakes that can be made. Unfortunately, every mistake will have a big impact on the level of luck. So, as a manual trader, you must focus on your trade. Just a little wrong will destroy the chance to gain profit.
Speaking of success, this is the right time to define what is meant by a powerful strategy. Many people claim to have a system that generates 100% profit in one month or one week and me
I've also heard that someone gets 100% profit in one hour. If that's what you're looking for, you're in the wrong place.
Systems that can produce such profits never exist and will never exist. Someone who makes 100% profit in a month he will become the richest man in the world in a month since he started Forex trading. And if there is, you must have heard it. An impressive strategy is a system that can produce 5 to 10 percent a month. Actually it's not impressive anymore, like this, this elite is called.
Conclusions and opinions
And for us, three percent per month (or around that) is more than enough to be called an extraordinary profit. For example, you have US $ 10,000 in your savings and you can make seven percent a month with the Quiet Time strategy. You will be called extraordinary when you can turn US $ 10,000 into millions of dollars in just a few years with the Quiet Time strategy. Then you will be called a person with extraordinary income. With a number of reasonable goals, and an understanding of the Quiet Time strategy, I hope you are ready to become a successful Forex trader.