With a million Forex Services and Courses to chose from online across the world, it can be a very daunting task indeed to chose the one that is right for you. Many offer good strategies and great courses on how to master the market using specific tools and theories that explain the dynamic of this exciting market. Neverthless, choosing among these options can be quite challenging if they do not give you enough details at the outset to let you know if the stratetegies are likely to meet your requirements.
To this end, I have summarized the main aspects of my Aggressive 24 Hour Strategy so that you can be assured that this is indeed the Strategy that will show you how to make accurate and confident trading decisions as a successful Long - Term Trader.
________________________________________
THE TRADING STRATEGY
Overview
The strategy targets gains of 50-70 Pips over a 24 Hour Period using the accurate Candlestick Patterns, Trend Lines and Consolidation Setups of the Daily and 4 Hour Charts. After experimenting with various Statistical Indicators across all time frames for several years, I finally discovered that there were certain combinations of Japanese Candlestick Patterns that offered more reliable Entry Signals, especially when combined with the correct way of drawing Trend Lines and the "Best-Fit" Method of identifying Consolidation Setups with Support and Resistance Lines.
Higher vs Lower Time Frames
Higher Time Frames in general were found to be more reliable with fewer False Signals and "Whiplashes" compared to the 1 Hour and lower charts. With this in mind, the Daily and 4 Hour Charts were then chosen as the time frames to use because they offer the best combination of the following factors that we all look for in a profitable strategy
- Reliable Signals & Stable Patterns
- Strong & Reliable Stop Loss Areas
- Manageable Stop Loss sizes (30-45 Pips)
- Setups with a High Probability of Success
-Trading Targets with Small Holding Periods
Economic & Financial News
As a former Central Bank Economist with a Masters in Economics, I can state categorically that a knowledge of Economics or Financial Markets is NOT necessary to successfully trade the Forex Market.
Yes it is true that many strategies out there successfully use Economic Data to predict market direction and that knowledge of various Economic Variables is crucial to the conduct of Monetary and Exchange Rate Policies. However, at the Retail Trader level that targets short moves within 24 hours, finding accurate Candlestick Signals was found to be more reliable than using short -term economic data that is too volatile to be used in a meaningful way.
In addition, what you will notice is that whenever there is a major news release during the day, the Candlestick Signal formed on the Larger Charts will eventually reflect the overall reaction by the market to the news. This means that you can simply wait for this Candle to close to indicate where the market is headed and then trade accordingly - without having to play the guessing game with these releases on the smaller charts. The trading gain on the NZD CHF just ahead of the Swiss National Bank Shocker of January 2015 was the best example of Candlestick Patterns providing profitable trades and identifying exit points ahead of market reversals even in the context of extreme financial turmoil (see "New Year off to a Flying Start - 231 Pips and 194 Pips on NZD CHF Trade" in the archives of my blog- Januay 8th, 2015).
The Pip Targets Per Trade
The strategy builds on the ability to accurately forecast the Weekly Range Direction of Currency Pairs each week. This accuracy provided the foundation of my previous strategy that captured 100-200 Pips per trade over the last few years and which led to an average return of 40% each year. While this was a good conservative performance that was a safe approach to long-term profitability in a dangerous market with a high failure rate, the recent narrowing of exchange rate movements has made targeting large trends and breakouts a very risky activity.
This therefore led to the search for a more aggressive approach that takes advantage of these smaller Pip Ranges. So instead of going after large gains over 5 to 7 days, shorter targets of between 50 to 70 Pips are now the focus to best take advantage of the narrow trading ranges.
Market Direction & Trade Entry
Both the Daily and 4 Hour Charts are used to identify market direction over a 7 day period. Once identified, the 4 Hour Chart is then used to trade in this direction for the targeted Pip Gain.
Stop Loss Placement
To protect the trade over the 24 Hour Holding Period against temporary pull backs, the following areas on the 4 Hour Chart are used for our Stop Losses
- Strong Trend Lines
- The Support/Resistance of Consolidations
- The Low/High of Candlestick Formations
These are the only areas deemed strong enough to protect trades until the trade targets are hit. If these are not present on the 4H, the trade will be deemed too risky and will be foregone to avoid losses.
Market Setups Traded
Due to the narrow range of currency movements that we see each month, more Consolidation Setups have been formed across Currency Pairs with very few of them providing stable and reliable breakout opportunities as they had in the past. This is why my trading is done strictly within the Consolidation Setups formed on the Daily and 4 Hour Charts.
Consolidations that have a minimum distance of 150 Pips and a maximum of 400 Pips between Support and Resistance are the ones that are traded. These allow us to comfortably capture our trading targets within these wide ranges, while not having to wait too long for these gains to be realized.
Trading Frequency
On average, there are 1 to 2 of these High Probability Setups that arise each week. This means that with an average time of 3 to 7 days between trades, you will not have to be tied to your computer screen everyday and will have time to recover from both the euphoria of a good trade as well as the disappointment of a loss. This ensures that you can remain objective for your next trade without being overconfident or wanting to exact revenge on the market that took away our money.
Risk Capital Per Trade
When you receive my Trading Signals, you will be provided with relevant pricing information and of course the direction of the trade. This means you are free to apply the Volume and Risk Per Trade Percentage you are comfortable with that meets your trading targets.
The Risk Per Trade that I use which you will see in the table below is 2% on average, targeting an average Monthly Return of 14%. Naturally, therefore, one can adjust this Risk Per Trade so that is in line with the Monthly Return that you want to capture over the long-term.
The Holding Period & Trade Exit Rules
What I discovered was that in 90% of the scenarios in which the High Probability Setups offered stable 50-70 Pip moves, they didnt need more than 24 Hours on average to hit these targets. Any longer than this usually meant that the market was beginning to slow down and that a reversal was imminent. This is why as one of the rules of my strategies, any trade that has not hit its target within this fixed period will always be closed. This is done to avoid the bad habit of becoming greedy or needy and more importantly to avoid severe trade losses from sharp reversals as that NZD CHF trade highlighted quite clearly.
OVERALL BENEFITS OF STRATEGY
1. SHORT HOLDING PERIODS
2. FASTER TURNOVER
3. LESS TRADING- LESS STRESS
4. MORE FREE TIME AWAY FROM FOREX
5. MORE DOWNTIME BETWEEN TRADES
6. NO COMPLICATED INDICATORS
7. NO COMPLICATED DATA ANALYSIS
8. STRICT TRADING RULES
9. LARGER RETURNS PER MONTH
10. AGGRESSIVE & CONFIDENT TRADING
_______________________________
_______________________________
________________________________
(Estimated 14% Per Month. Assumes the Trader applies an Average Risk Per Trade of 2% to my Trading Signals)
________________________________
________________________________
________________________________
Sounds Good?
Contact Me for your Subscription Service Invoice Today!
All Payment Types Processed by PayPal.
Bank Transfer Also Available.
Your Mentor
Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
shepherdduane@gmail.com /(876)-3825648
Twitter: @WorldWide876
Facebook: DRFXTRADING
________________________________
