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Sunday, March 22, 2009

"If you want to get to the top of the forex market “food chain” you have come to the right place."

In our quest to find the most profitable and at the same time for a "small" trader feasible forex trading system we have tested and analyzed many different forex trading strategies. The strategies that we have tested were ranging from simple combinations of TA indicators to more complex trading systems that were utilizing support/resistance levels, pivot points, chart patterns etc... However in order to reduce the number of systems that were later scrutinized more closely, we have developed our own system selection criteria. Basically the system that we were after had to have following properties: Simplicity, Efficiency and Consistency.

As we all know forex trading strategies are becoming more and more complex and sophisticated. What does it mean for our average independent forex trader? It means that our simplicity factor when developing a trading strategy gains in importance.

What usage could an average person make from a forex strategy that requires or presumes a profound knowledge in mathematics at a PhD level and a computing power beyond that of the newest personal home computer? A type of highly complex strategies commonly used by investment companies are neural networks. A neural network is, in short, a model of interconnected neurons (also known as nodes) that was inspired by the logical neurons in human nerve system. Like the human brain a neural network can acquire, store and utilize experiential knowledge in order to improve its performance day by day. Regrettably, to consistently use a forex strategy based on neural networks one requires the complex knowledge of how to feed a neural network with history data as well as excessively high computing power not affordable to our average forex trader.

Therefore we have set ourselves with a goal of finding a forex strategy that is comparable in its profit potential to the most complex professional trading system and at the same time is feasible and understandable to our average trader.


Simplicity

It has to be, of course. You don't want to have to attempt to understand the sophisticated, complex trading systems employed by the major corporate investors, with their teams of fully-resourced professionals using highly developed automated tracking networks and advanced mathematical formulas spread through several floors of their head office. Neither do you want to have to spend on an expensive, top-of-the-line computer stuffed with proprietary trading software.

Rather, you want a simple strategy which you can understand and quickly implement, and yet gets the same trading results as those coming out from the corporate office tower blocks. Our forex strategy delivers the results, yet is striking in its simplicity and elegance.

Next, our forex strategy is efficient.

Efficiency

That means, it is profitable. This is how various trading strategies are compared, actually. A system that shows more profit during a specific period is said to be more efficient. Our personal experience with this new strategy, and the extensive tests we have run, all show it is ruthlessly efficient. In fact, we have noticed that if a trader will simply follow our forex strategy, they will succeed. Forex strategies just don't get more efficient than that!


"Here are the results recently achieved by our strategy"


SymbolTypeOpen TimePriceClose TimePricePips
EURUSDSELL08/08/08 03:051.516608/08/08 12:051.5054+112
GBPUSDSELL08/11/08 07:301.920908/11/08 19:551.9121+88
EURUSDSELL08/14/08 09:101.489508/14/08 16:501.4824+71
GBPUSDSELL08/17/08 22:001.867608/17/08 23:551.8705-29
EURUSDSELL08/25/08 12:501.478108/26/08 08:351.4615+166
USDCADBUY08/25/08 11:401.047408/26/08 08:351.0514+40
GBPUSDSELL08/27/08 08:351.844708/27/08 19:401.8360+87
EURUSDSELL08/28/08 03:351.475608/28/08 07:451.4792-36
GBPUSDSELL08/29/08 06:251.827708/29/08 15:101.8211+66
USDCADBUY09/01/08 08:251.066609/01/08 05:501.0699+33
GBPUSDSELL09/04/08 06:051.781309/04/08 22:251.7576+237
EURUSDSELL09/08/08 02:451.433809/09/08 02:401.4137+201
GBPUSDSELL09/08/08 18:101.754109/08/08 18:451.7585-44
GBPUSDSELL09/10/08 09:251.757709/10/08 18:501.7523+54
EURUSDSELL09/11/08 09:501.390009/11/08 11:351.3934-34
EURUSDSELL09/16/08 09:151.421709/16/08 14:501.4146+71
GBPUSDSELL09/18/08 14:051.819109/19/08 08:501.8101+90
USDCADSELL09/19/08 08:451.060609/19/08 14:101.0534+72
EURUSDBUY09/24/08 04:301.469209/24/08 11:501.4661-31
GBPUSDBUY09/25/08 14:151.834909/26/08 01:051.8391+42
EURUSDBUY09/29/08 07:451.436409/29/08 15:551.4447+83
USDCADBUY10/01/08 19:001.063210/03/08 00:201.0758+126
GBPUSDSELL10/03/08 14:301.777310/05/08 18:301.7670+103
USDCADBUY10/06/08 08:351.090110/06/08 14:401.1038+137
EURUSDSELL10/07/08 10:401.365410/07/08 23:451.3596+58
USDCADBUY10/08/08 01:351.109310/08/08 02:501.1043-50
USDCADBUY10/08/08 08:401.107110/08/08 21:551.1245+174
    Totals EURUSD   +661 pips
    Totals GBPUSD   +694 pips
    Totals CADUSD   +532 pips

To put it in layman's terms, a $5,000 start up capital combined with the power of leverage
grew to $23,429. And that is for the period of only two months!


Here are examples of some of the most recent trades:

Example 1: GBP/USD Day Trading Strategy

Example 2: EUR/USD Day Trading Strategy

Example 3: USD/CAD Short Term Trading Strategy

Example 4: GBP/USD Short Term Trading Strategy


But there is something else -- our forex strategy is consistent. It always works.

Consistency

Again, this is what distinguishes the best strategies because you can only plan for capital draw downs and profit build-ups if you are consistently taking profits. You want to know that your forex strategy will keep returning profit even when the behavior of the market changes with unexpected political or financial crisis, or after major events like September 11. Or even when something small changes, like adopting a hard stop of 45 pips instead of the 50 pip stop that has served you well in the past.

You want consistency when the market is suddenly hit by either small or large changes. And actually, you would almost certainly prefer a forex strategy that is efficient and highly consistent, than one that's highly efficient but less consistent.

Well, our forex strategy is so consistent you could set your clock by it. It is as safe as money in the bank. In fact, our testing has shown that the chance of losing all your trading capital is so small as to be almost non-existent.

So there you are. The safe, simple consistent strategy for the small trader like yourself, and you can test it without having to put up a single penny of trading capital.

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