It is hoped that traders will see the benefits of using the Higher Time Frames for larger gains and LONG-TERM SUCCESS, instead of the Scalping, Day Trading approach on the volatile lower time frames that is at the heart of the 95% failure rate of Currency Traders.
The thread will be very interactive and will include the results of Live Account trades based on this strategy, along with the justifications for each trade. However, only the basic aspects of these trades will be given. The rest of the information needed to fully understand them will only be available to those who have downloaded the Trade Manual.
THE METHODOLOGY
The Methodology involves identifying High Probability Candlestick Patterns and Signals on the Daily and 4 Hour Charts. The parameters used to trade the setups provided by these signals have been developed based on years of data that have proven to be consistent, regardless of market conditions. More information of the Methodology can be found on my Website, www.drfxswingtrading.com and in the Trading Manual available at Lulu.com where a free preview is provided. However the main aspects of the Methodology are;
1- Using Candlestick Patterns and Signals to identify Market Direction;
2 - Waiting on the Daily & 4 H Chart Signals for Entry;
3 - Aiming for the Weekly Range Target;
4 - Holding Trades for a Pre-determined holding period;
5 - Aiming for 100-200 Pips;
In addition to lower volatility and higher returns, the benefits of these larger charts and this Methodology include;
- Predictable times for entry and exit;
- Simplicity of trading without the chaos of Economic News;
- New insights that surpass recycled information in free/low-cost books;
- Real examples of each Technical Factor explained;
- The Rationale behind real trades that will continue to shown on this thread;
- Exit points that can be spotted well ahead of Statistical Indicators;
- Actual step-by-step Trade Sheet instruction;
- The potential to generate double-digit returns in months from a handful of trades;
- The possibility of replacing or surpassing existing income sources;
DAY TRADING & SMALLER TIME FRAMES
Approximately 95% of Currency Traders struggle to make consistent gains in the Forex market with 95% of them using Smaller Time Frames. If success from trading is to be realized, therefore, it is likely to come from a strategy based on the Larger Time Frames.
Most persons who were exposed to the market for the first time were likely to have headed straight for the smaller time frames in an attempt to capture small, but quick pips. These charts are very attractive and tempting to trader, offering fast turnover. However, they tend to be quite volatile and are affected by too many technical factors that get in the way of profitable trading. I have spent and lost quite a lot of money over the years and have finally come to the conclusion that the Holy Grail of trading is unlikely to be found with this approach.
Some of these strategies had their merits and were somewhat successful, but were found to be unsustainable. They were also incompatible with the realities of daily life, especially for those persons living in the Western Hemisphere, where the time-zone difference plays havoc with our sleep patterns. In addition to the unrealistic hours at which one had to monitor the market for entry, daily stress and losses was constantly being fed by;
- Indecision about the size of stop losses and pip targets;
- Anxiously waiting on a target to be hit;
- Constantly switching between currencies to decide on which to trade in the very short trading day;
- Indecision as to whether to monitor a trade or leave it until it is closed;
- The pressure to meet daily or weekly pip targets/monetary goals;
- Resisting or falling to the temptation of violating a trade plan in order to meet these targets;
- Trying to stay objective while wanting to take revenge on the market for a loss ;
- Feeling trapped like a mouse in a maze, with the cheese nowhere to be found;
Sound familiar?
STATISTICAL INDICATORS & FUNDAMENTAL ANALYSIS
No attention will be paid to market news or Statistical Indicators.
News items released to the market are short-term, contradictory and volatile in nature. Some will have strong reactions while others will go unnoticed by the market. Since the signals given on the larger time frames determine market direction and will always reflect the net reaction of the market to economic data, there is no need to pay attention to these news items.
Statistical Indicators are very popular among traders who use the Smaller and Larger Time Frames. However, these indicators are lagging in nature and can be late to the party in providing exit and entry signals. The nature of the market is such that on their own, Candlestick Signals and Patterns and the cycle of movements by themselves can provide trade decisions with a high degree of accuracy.
RATE OF RETURN
The following table shows the trades and setups that have been in sync with the Methodology between the end of December 2013 and April 2014. Applying these results to a Retail Account of US$5000 using 5% risk (instead of 10% that I use), this is the combined result;
Each of these were on average 2 weeks apart starting on Boxing Day last year. They do not arise as frequently as most people desire or are used to, but they offer a much higher probability of success.
After taking a break to complete the Trading Manual, active trading will now resume to show additional examples of how this strategy is applied to upcoming opportunities. Essentially, this thread and blog will become a hub for persons interested in trading in a much simpler, stable and reliable way that provides a higher rate of success.
Have a look at the trades below, get the Manual and be part of a World Class approach to Wealth.
DRFXTrading
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TRADING MANUAL - AVAILABLE AT
http://static.lulu.com/images/servic...20140521080418
http://www.lulu.com/shop/duane-sheph...-21662385.html
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