Greetings, friends. It’s John Foster. Just answer – do you want to gain stable profits at forex? I think, most novices would say “Yes!”, especially if they are the first time at the exchange. Businessmen need progress and development, permanent increase of income and prestige of their companies, while ordinary person needs just stable-high income which they have now and will have in 5-10 years. But is there a stable forex trading strategy?
1.Do We Need Stability?
2.Which Timeframe to Choose for Trading?
3.How to Use the Stable Forex Trading Strategy “Breaking the Flat”?
4.Some Nuances of the System!
5.My Testing Experience!
First of all, we must understand, which sense is put into the term “stability”. If you want to gain the same amount of money every month – you are not likely to find such a strategy. In fact, currency rate is unpredictable, and there is practically no system able to give 95% profitable signals. But if you find a risk-free strategy, it’s impossible to predict the amount of your profit anyway. Thus, you can get 50% of the deposit in this month, 30% in the next, and 80% in 2 months. So, stability at forex is quite relative.
However, there is another sense of this word. Is there a strategy which can let trade with high accuracy, being actual now and in 10 years? Exchange rules of analyzing the chart always change, but are there some which stay still? Yes, there are, and if you want to engage profitable trading with your strategy, to be sure that this profit won’t disappear in several years, your best choice is “Breaking The Flat”.
I admit that I don’t need stability at forex, and I love this exchange for its unpredictability. In fact, if you trade stably, you lose the opportunity to increase your profit simultaneously with the one to get insured of losing the past profit. Novices at the exchange often look for stability and want to gain the same amount today and within several years, but, my personal experience shows that you’ll get annoyed by this stuff soon, and you will want anything more. You will see at your colleagues gaining 100-150% per month, and your miserable 50-70% will look extremely miserable. You will want to move to a new strategy, a tougher one, riskier, but more profitable at the same time. Don’t fear this desire! Believe me – never a one trader has wasted their deposit, having thoroughly studied rules of the strategy and followed them properly, sticking to the algorithm. What do I want to say? You may start working with “Breaking The Flat” forex trading strategy, but, with experience, leave for more advanced strategies. Best choice for skillful traders: “The Merger”, the “Sniper” and “The Victory”.
“Breaking The Flat” doesn’t suggest any specified timeframe, and you can trade at any chart. I recommend using M5 for such goals, as it has the most accurate and clearest signals. Nevertheless, if you want to engage long-term trading, you can choose H4 or D1 – profitable trading signals emerge there, too. All the values (levels of StopLosses and TakeProfits) will be given for M5 timeframe. At other charts, use standard rules described in the article “StopLoss and TakeProfit: What Are They?”.
If you read the description of the “Sniper” trading strategy, then you understand what Consolidation Zones (CZ) are. This very tool is used in this indicator-free system, in its adjusted and simplified form for beginners. For those who didn’t read the article about the “Sniper”, I am to explain the essence of CZs.
Consolidation Zones is the continual flat at the chart, when the price doesn’t have any certain direction but fluctuates within the canal made by support and resistance lines. Below, you can see how a CZ looks at the chart. The best way is to mark it with a rectangle (Insert – Figures – Rectangle). And here’s the algorithm itself:
Step 1! Open any preferred currency quote and choose the M5 timeframe for it. Define the current trend.
Step 2! If you see the flat at the chart, which is similar to that in the image below, get ready to enter the market. For that, you have to draw support and resistance lines (those levels, which can’t be broken by the price and make it bounce off them repeatedly) for the flat. As I’ve mentioned before, you’d better use a rectangle for that and do it the way you can see in the picture.
Step 3! Wait until the price breaks one of our levels. If the support line (lower) is broken, get ready to sell, if the resistance line (higher) is broken – get ready to buy. Don’t enter the market yet, but move to the next step.
Step 4! Open the order in the respective direction, when the price again touches (or approaches) the level it’s just broken. It’s called “fixing”, and we must open the position at this very moment.
Step 5! We open 3 orders instead of only one. With that, you mustn’t violate money-management rules, described in the article “Leverage: What Is It?”. So, if your standard order is equal to 3 lots, we should open 3 positions 1 lot each. Set the StopLoss for all the orders beyond the opposite level of the CZ toward that one has been broken. The TakeProfit for the first order is 10 pips, 30 pips for the second one, 40 pips for the third.
Step 6! Leave the market only via TakeProfits or StopLosses. With that, when the price activates the TakeProfit for the first order (10 pips), move the Stop for 2 others to the breakeven (the level at which positions were opened). Once the second TakeProfit is touched (the prices passes 30 more pips) – move the Stop for the last position to the level where the TakeProfit for the first one stood (10 pips from the entrance price). So, once the price passes 10 pips toward us (it occurs with more than 95% chance), we get the guaranteed profit even if the market turns and breaks all the StopLosses. Because of this very feature, we can call this forex trading strategy stable, as it almost never makes suffer losses.
I was testing this algorithm along with the main algorithm of the “Sniper” system at a real account. There were no difficulties, signals emerged not that frequently – just for 3-4 times for the one currency quote, but all of them were correct and gave at least 50 pips in total of all orders. At the average, I succeeded in gaining about 30% of the initial deposit with the one currency quote. Trading with several ones, which is quite easy, you can get yet more profits.
So, today we’ve made everything clear about the forex trading strategy called “Breaking The Flat”. As for the conclusion, I’d love to give some advice – start trading as early as possible. Most trading signals appear between 3 and 6 AM GMT. If you don’t want to miss them, get up and then take naps during the afternoon, having entered the market already, and set StopLosses and TakeProfits. The average profitability of the system for this quote is 20-30%, accuracy is 9.5/10 correct signals.
Get lucky and gain much!
Best Regards, John Foster.
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|Moving Averages:||Buy (11) Sell (1)|
|Indicators:||Buy (9) Sell (1)|