Welcome to the Power Band Trading System, you are going to be lucky enough to discover something I have been using recently to profit from the Forex markets.
Trading Setup • Enter Trade on 4hour or Daily Chart. • Trade ONLY GBP/USD, GBP/JPY, EUR/USD, USD/JPY, USD/CHF, USD/CAD. • Add Bollinger Band, set to Period 20 Deviations 2 • Add Stochastic Oscillator set to %K 9 period %D 3 period Slowing 3
Trading Rules If we had a Touch of the Upper Bollinger Bands we would be looking to SELL and therefore need the Stochastic indicator to be OverBought and Over the 80 Line. If we had a Touch of the Lower Bollinger Band we would be looking to BUY and therefore need the Stochastic indicator to be OverSold and Under the 20 Line.
NOTE: Once both of these conditions are met, YOU look for Entry Confirmation, which is a Candlestick Formation, if YOU Don’t see one then wait Until YOU do. If the trades takes off without YOU then wait for the next one. StopLoss are placed behind the recent high / low and always moved to break even as soon as possible. Never risk more than 2% of your account on any one trade . Candlestick formations are used to identify the underlying physiology of the market, usually with a reasonable accuracy.
NOTE: I have found the engulfing and pin formations to be the most reliable so when I see this formation after the system conditions are met I have great confidence in my trade.
Exits Everybody exits their positions differently depending on their personality and risk level, so it is very difficult to know what exit method will work best for you. If you are an aggressive trader then you may wish to move your stop to break even and hold the full position for as long as possible to cash in on a big move when it develops. If you are a conservative trader you may prefer to get your stop to break even as soon as possible and take profits early at a predefined area of support and resistance. The main things to keep in mind are your win %, if you take profit at the same amount you risk you have to achieve a 50% win-loss ratio to break even. If you take profit at half the amount you risked you have to achieve a 66% win-loss ratio to break even. I personally try to get my stop to break even as soon as possible and close most of my position at around the same amount I risked on the trade, this is not a set value as it depends on where the support and resistance areas are. Sometimes if I think the move is strong I will leave some of my position on and target the opposite side of the Bollinger bands.
We provide you with second to none SIGNALS at affordable rates. And since we are sure of what we are doing, our service of signals comes with 100% icon clad money guarantees, and this you would rarely see among our competitors. We are not here to bore you with long sales letter because we are traders not marketers, our work speak for us.
We generate the signals through the best indicator you could ever found in the market called ‘’PRICE.’’ Depending on your choice package you get instant ALERT of buy/sell signals on your mobile phone with exact entry and exit price. You don’t need to bother yourself with what happens in the market again, we would do that for you.
Therefore, if you are tired of sitting with the computer for long period of time, tired of consistence losing in the market, tired of the market playing with your emotions, then you are the right place.
Learn More About PaulForex....... the FOREX Minister.
About the Author
Since you may not know who I am, I thought it would be appropriate to introduce myself. My name is PaulForex a.k.a Aggressive Trader, and I am a “Competent” Currency Trader. The fact that you haven’t heard of me is no surprise. I have never been comfortable in the spotlight and have purposely remained “underground”.
I don’t write books… I don’t try to get on successdigest Magazine, and… I don’t go from city to city doing “dog seminars” so I can sell a room-full of people my overpriced, piece-of-crap, blinking-light, “black box” FOREX Trading Systems.
I’m a trader, a system developer, a single, and an amateur surfer. Trading is what I love, and trading is what I DO as a PROFESSION. I also enjoy teaching and helping other active traders get an edge. I know from personal experience that most trading systems and advice are 100% crap, and it’s my mission to provide something that actually works to independent traders just like me. That’s why you’re reading this reports...I truly enjoy sharing what I know with traders who are just like me. If you like what you are going to read here and you want to learn more about what I trade and how I trade, I invite you to send me an email to: newforexideas@gmail.com
Over the years I have been fortunate enough to discover 4 Forex Trading weapons that have provided me with a lot of success in the Forex markets. Unfortunately this is not the case for over 95% of new Forex traders who end up learning the wrong systems and trading information. I decided it was time to give something back to the people who are still struggling to make consistent profits in the Forex markets by explaining exactly how I trade My 4 Forex Trading Systems.
NOTE: First let me point out that these systems like any other will not bring riches over night, you need practice and patience, the latter being the most important in my honest opinion. Demo trade for a while and get a good feel for the systems before ever trading live. Take things slow, the Forex markets will be here long after you so there is no rush.
Trading To Win Forex Market, HOW?
There are a few things I want to mention that are very important if you are planning on really making money in this business.
1. Analyzing your results: If you don’t already keep a track of every trade you make then start now, create a spread sheet ether on your computer or in a note book and if possible try to make a screen shot of the chart as you make the trade. After one month look at your results and go over every trade you made in that period, often you will find yourself taking bad trades just for the sake of being in the market. Doing this for several months alone will greatly improve your trading skills.
2. Stop trading to trade: New traders usually feel they have to be in the market all the time otherwise they are not trading and therefore will not make money. One thing you have to understand is every trade you take puts your capital at risk, often the most profitable position to be in is NO POSITION.
3. Never let a winner turn into a loser: Recently I have been focusing more and more on this and it has had an incredible result on my trading, once the market gives me some profit I move my stop to break even and have a free ride. Yes I get stopped out at break even often but doing this almost eliminates large losses completely.
4. Only take the A+ Trades: I pass on almost 60% of the setups that I look for, some weeks I will not enter the market at all, I only consider taking a trade if I believe it is a perfect setup or an A+ trade. This takes a lot of patience and discipline but I often manage to keep my win % above 90% picking the very best setups.
5. Never bet the bank: Never risk more than 3% of your trading capital on any single trade. I prefer to try and keep it below 2% if possible. Follow these tips and you can’t go too far wrong as you are learning this business. With that all out of the way let’s start looking at the Power band system.
Using breakouts to scalp the market is by far the most popular scalping method. One reason is that it works, and the second is that it is the simplest. When looking for breakouts to scalp, I’m only interested in the first-two hour the different global bank sessions. This includes the:
• Asian or Tokyo session open at 7:00 pm EST • London session open at 3am EST • New York session open at 8am EST
I will only discuss the BEST session that I and the Banks Love’s so much because it gives you A LOT more trading opportunities. Join Me as I welcome MR. London Session!
The Tokyo and London markets overlap for one hour between 2 am and 3 am EST. What that means, practically speaking, is that the London session can be seen as a sort of “continuation” of the Tokyo session, but with wildly increased volume and volatility. As the comparatively slow Tokyo session prepares to go to bed, the wild London one is just waking up. At that moment, around 3 am EST, there is significant market acceleration with thousands of transactions. As the different banks come online and start moving money, the odds of the market moving and causing a sustained breakout go up. And the more breakouts we get, the more opportunities we have to scalp some quick pips!
Trading Setup • Enter Trade on 1hour Chart. • Trade ONLY GBP/USD, GBP/JPY, EUR/USD, USD/JPY, USD/CHF, USD/CAD • At 2:50am EST, setup Your BUY and SELL Entry point with the High and Low of Asian OR Tokyo Session. Add and Subtract 5pips to Both sides and use that as Your breakout point.
NOTE: You have to be fast in setting this system before 3am EST London Opening as the market will move fast.
Take a look at the example below. See how I setup Breakout Scalping System with the Asian OR Tokyo Session High and Low ready for Profit to breakout
Trading Rules If the Price triggers or breaks Upward (BUY), delete Sell setup. Inversely if the Price triggers or breaks Downward (SELL), delete Buy setup. If the breakout is not there, then delete Both BUY and SELL setup trade. One of the biggest mistakes a trader can make is trying to wait for the market to breakout When there is NO Breakout.
StopLoss should be 20pips. Always move it to Break Even as soon as possible. Never risk more than 2% of your account on any one trade at 2:2 ratio. Take Profit should NOT exceed 20pips.
Take a look at this Great breakout Upside (BUY)
Take a look at this breakout Downside (SELL)
Take a Look at this NO Breakout Trade. Stay Away.
NOTE: You need a fairly tight stop-loss when scalping breakouts, because the markets move quick on you (especially during session opens) and you don’t want to be on the wrong side of a scalping trade when you’re intended return is only 10 – 20 pips.
An investor has a margin deposit with Saxo Bank of USD 100,000.
The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.
The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.
Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.
Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.
Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.
Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.
As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the profit calculation.
This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.
The investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).
The dealer quotes 112.05-10. The investor sells EUR at 112.05.
Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.
He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.
Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.
The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.
This results in a loss of JPY 0.55m = approx. USD 5,300 (USD/JPY 105) = 5.3% loss on the original deposit of USD 100,000.
The investor believes the Canadian dollar will strengthen against the US dollar. It is a long term view, so he takes a small position to allow for wider swings in the rate:
He asks Saxo Bank for a quote in USD 1,000,000 against the Canadian dollar. The dealer quotes 1.5390-95 and the investor sells USD at 1.5390. Selling USD is the equivalent of buying the Canadian dollar.
Day 1: Sell USD 1,000,000 vs. CAD 1.5390. He swaps the position out for two months receiving a forward rate of CAD 1.5357 = Buy CAD 1,535,700 for Day 61 due to the interest rate differential.
After a month, the desired move has occurred. The investor buys back the US dollars at 1.4880. He has to swap the position forward for a month to match the original sale. The forward rate is agreed at 1.4865.
Day 31: Buy USD 1,000,000 vs. CAD 1.4865 = Sell CAD 1,486,500 for Day 61.
Day 61: The two trades are settled and the trades go off the books. The profit secured on Day 31 can be used for margin purposes before Day 61.
The USD account receives a credit and debit of USD 1,000,000 and shows no change on the account. The CAD account is credited CAD 1,535,700 and debited CAD 1,486,500 for a profit of CAD 49,200 = approx. USD 33,100 = profit of 33.1% on the original deposit of USD 100,000.
The global foreign exchange market is the biggest market in the world. The 3.2 trillion USD daily turnover dwarfs the combined turnover of all the world's stock and bond markets.
There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading.
Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.
In the following article, we would like to introduce you to some of the basic concepts of foreign exchange trading. If you would like any further information, we suggest that you sign up for a FREE Membership on this website, where you will be able to exchange views with other Forex traders and get answers to any questions you might have.
Foreign exchange is normally traded on margin. A relatively small deposit can control much larger positions in the market. For trading the main currencies, Saxo Bank requires a 1% margin deposit. This means that in order to trade one million dollars, you need to place just USD 10,000 by way of security.
In other words, you will have obtained a gearing of up to 100 times. This means that a change of, say 2%, in the underlying value of your trade will result in a 200% profit or loss on your deposit. See below for specific examples. As you can see, this calls for a very disciplined approach to trading as both profit opportunities and potential risks are very large indeed. Please refer to our page Forex Rates & Conditions for current Spreads, Margins and Conditions.
When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other.
The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this.
When trading foreign exchange, you are quoted a dealing spread offering you a buying and a selling level for your trade. Once you accept the offered price and receive confirmation from our dealers, the trade is done. There is no need to call an exchange floor. There are no other time-consuming delays. This is possible due to live streaming prices, which are also a great advantage in times of fast-moving markets: You can see where the market is trading and you know whether your orders are filled or not.
The dealing spread is typically 3-5 points in normal market conditions. This means that you can sell US dollars against the euro at 1.7780 and buy at 1.7785. There are no further costs, commissions or exchange fees.
This ensures that you can get in and out of your trades at very low slippage and many traders are therefore active intra-day traders, given that a typical day in USDEUR presents price swings of 150-200 points.
When you trade foreign exchange you are normally quoted a spot price. This means that if you take no further steps, your trade will be settled after two business days. This ensures that your trades are undertaken subject to supervision by regulatory authorities for your own protection and security. If you are a commercial customer, you may need to convert the currencies for international payments. If you are an investor, you will normally want to swap your trade forward to a later date. This can be undertaken on a daily basis or for a longer period at a time. Often investors will swap their trades forward anywhere from a week or two up to several months depending on the time frame of the investment.
Although a forward trade is for a future date, the position can be closed out at any time - the closing part of the position is then swapped forward to the same future value date.
Different currencies pay different interest rates. This is one of the main driving forces behind foreign exchange trends. It is inherently attractive to be a buyer of a currency that pays a high interest rate while being short a currency that has a low interest rate.
Although such interest rate differentials may not appear very large, they are of great significance in a highly leveraged position. For example, the interest rate differential between the US dollar and the Japanese yen has been approximately 5% for several years. In a position that can be supported by a 5% margin deposit, this results in a 100% profit on capital per annum when you buy the US dollar. Of course, an even more important factor normally is the relative value of the currencies, which changed 15% from low to high during 2005 – disregarding the interest rate differential. From a pure interest rate differential viewpoint, you have an advantage of 100% per annum in your favour by being long US dollar and an initial disadvantage of the same size by being short.
Please refer to our page Forex Rates & Conditions for current Spreads, Margins and Conditions!
Such a situation clearly benefits the high interest rate currency and as result, the US dollar was in a strong bull market all through 2005. But it is by no means a certainty that the currency with the higher interest rate will be strongest. If the reason for the high interest rate is runaway inflation, this may undermine confidence in the currency even more than the benefits perceived from the high interest rate.
As you can see from the description above, there are significant opportunities and risks in foreign exchange markets. Aggressive traders might experience profit/loss swings of 20-30% daily. This calls for strict stop-loss policies in positions that are moving against you.
Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out. Of course, the market can move very fast and a stop-loss order is by no means a guarantee of getting out at the desired level.
But the main risk is really an event over the weekend, where all markets are closed. This happens from time to time as many important political events, such as G7 meetings, are normally scheduled for weekends.
For speculative trading, we always recommend the placement of protective stop-lossorders। With Saxo Bank Internet Trading you can easily place and change such orders while watching market development graphically on your computer screen.
Basic Elements Of Trading Forex Market.
When to enter the market:
·Don’t enter sideways market.
·Don’t trade against Long term trend.
·Pay attention to signal strength of the market.
·Getting into the trade at the right time. Always jump in the trend as possible before the trend is finished.
When to exit the market:
Exit is BETTER than ENTRY since exit determines your Profit or Loss. STOP using trailing stop it kills.
Basic Fundamental requirements for proper Exit strategy:
Cut your losses short
Take part of your profit
Let your profit runs
Take your profit when your trades run out of steam.
How To Recognize Sideways Market
It is recognize when within the last 2hours the Highest price differs by less Than 30pips
How To Identify Along Time Trend
We will use EMA 150 on a 5mins chart.
·The long term Trend is Bullish when EMA 150 is Rising.
·The Long term trend is Bearish when EMa 150 is Falling.
Getting An Entry Signal
An Entry signal is a point in time where there is the Highest possible probability that the trade will go into your desired direction.
Use MACD 12, 26, 9 on 5mins chart +3/-3 pips range.
Am that common guy that walks in your street every morning. Am very lazy when it comes to making money online that is why i work from home from January to December. From Sunday to Sunday. From Morning Till Night. Except when i want to go for my Bible studies or Preaching as a child of God.
Because i Live by the Beach side, everyday after my trading, i take friends to relax at beach or Joint for pepper soup. Well am PAULFOREX. Am not popular because i don't want to be.
