INTRODUCTION
THE TRADING STRATEGY—PROFX IS THE RESULT FOR SCIENTIFIC STUDIES OF THE FOREIGN EXCHANGE MARKET (FOREX) AND AVAILABLE RESOURCES.
THE STRATEGY CONTINUES TO BE IMPROVED FOR THE PURPOSE OF REACHING MAXIMUM POSITIVE RESULTS AS A POWERFULL TOOL IN THE FOREX MARKET. THIS STRATEGY IS DEVLOPED FOR THE COMMERCIAL PLATFORM META TRADER 4. BEFORE USING THIS APPLICATION, AS WITH ANY SYSTEM, BECOME ACQUAINTED WITH THE MANAGEMENT OF TOOLS AND USER INTERFACE.
THERE ARE MORE THEN 100 BROKER WHO SUPPORTS META TRADER 4. CLIENTS WHO
NEEDS TO CHOOSE A BROKER SHOULD READ: „MT4BROKER.PDF“
AFTER RESTARTING THE INDICATORS AND THE TEMPLATE ARE ON THE RIGHT PLACE AND THE STRATEGY IS READY TO USE.
RECOMMEND IS TO START WITH THE GBPUSD 30 MIN CHART.
FOR THE CASE THAT YOU DONT KNOW HOW TO OPEN A TEMPLATE, USE THE BUILT IN HELP FROM META TRADER 4.
THE FOLLOWING INDICATORS DISPLAYED ON THE CHART:
THE TRADING STRATEGY—PROFX IS THE RESULT FOR SCIENTIFIC STUDIES OF THE FOREIGN EXCHANGE MARKET (FOREX) AND AVAILABLE RESOURCES.
THE STRATEGY CONTINUES TO BE IMPROVED FOR THE PURPOSE OF REACHING MAXIMUM POSITIVE RESULTS AS A POWERFULL TOOL IN THE FOREX MARKET. THIS STRATEGY IS DEVLOPED FOR THE COMMERCIAL PLATFORM META TRADER 4. BEFORE USING THIS APPLICATION, AS WITH ANY SYSTEM, BECOME ACQUAINTED WITH THE MANAGEMENT OF TOOLS AND USER INTERFACE.
THERE ARE MORE THEN 100 BROKER WHO SUPPORTS META TRADER 4. CLIENTS WHO
NEEDS TO CHOOSE A BROKER SHOULD READ: „MT4BROKER.PDF“
AFTER RESTARTING THE INDICATORS AND THE TEMPLATE ARE ON THE RIGHT PLACE AND THE STRATEGY IS READY TO USE.
RECOMMEND IS TO START WITH THE GBPUSD 30 MIN CHART.
FOR THE CASE THAT YOU DONT KNOW HOW TO OPEN A TEMPLATE, USE THE BUILT IN HELP FROM META TRADER 4.
THE FOLLOWING INDICATORS DISPLAYED ON THE CHART:
PROFX01—PROFX08
COLOURS, WIDTH AND STYLE FROM THE INDICATORS ARE FULLY ADAPTABLE.
FOR THE CASE THAT YOU CHANGE THE COLOURS, WIDTH ETC. DONT FORGET TO SAFE THE CHANGES. OTHERWISE THE CHANGES GET LOST WHEN YOU CLOSE THE PLATFORM.
AS NEXT STEP YOU MAY SETUP AND DISPLAY YOUR PERSONAL TRADING TIME USING THE INDICATOR PROFX8.
WE TRADE FROM 0630—2100, BECAUSE THAT IS IN OUR MEAN THE BEST TRADING TIME. DEPENDING FROM YOUR TIMEZONE, SERVERTIME YOU MAY ADAPT THE SETTINGS.
RECOMMEND SETTING: EUROPE OPEN—EUROP CLOSE, US OPEN—US CLOSE;
COLOURS, WIDTH AND STYLE FROM THE INDICATORS ARE FULLY ADAPTABLE.
FOR THE CASE THAT YOU CHANGE THE COLOURS, WIDTH ETC. DONT FORGET TO SAFE THE CHANGES. OTHERWISE THE CHANGES GET LOST WHEN YOU CLOSE THE PLATFORM.
AS NEXT STEP YOU MAY SETUP AND DISPLAY YOUR PERSONAL TRADING TIME USING THE INDICATOR PROFX8.
WE TRADE FROM 0630—2100, BECAUSE THAT IS IN OUR MEAN THE BEST TRADING TIME. DEPENDING FROM YOUR TIMEZONE, SERVERTIME YOU MAY ADAPT THE SETTINGS.
RECOMMEND SETTING: EUROPE OPEN—EUROP CLOSE, US OPEN—US CLOSE;
INDICATOR WITH ALERT
PROFX1—WILL ALERT YOU WITH SOUND AND A POPUP WINDOW WHEN A POSSIBLE ENTRY IS COMING UP.
SOUNDON=TRUE / ALERT
SOUNDON=FALSE / NO ALERT
NOTE: PROFX 01 AND PROFX06 WILL BE DISPLAYED ON THE LAST 1000 BARS. YOU CAN CHANGE THAT, BUT FOR THE CASE THAT YOUR WORKING STATION IS NOT THE STRONGEST (256—768MB RAM) IST POSSIBLE THAT YOUR COMPUTER IS SLOWING DOWN. FROM THIS REASON IST RECOMMEND TO USE THE DEFAULT SETTINGS.
BEFORE WE START WITH THE EXPLAINATION FROM THE STRATEGY RULES, PLEASE TAKE THE TIME AND READ THE GENERAL TRADING RULES.
TRADING PLAN
MANY TRADERS STARTS TRADING WITHOUT ANY PLAN. SOUNDS UNBELIEVABLE BUT IS UNFORTANLY THE TRUTH.
PLAN:
WHERE YOU WANT TO ENTER A TRADE ?
HOW MUCH MONEY YOU ARE GOING TO RISK ?
WHERE YOU ARE GOIUNG TO GET OUT IF YOU ARE WRONG ?
WHERE YOU ARE GOING TO TAKE PROFITS IF YOU ARE RIGHT ?
KNOW HOW MUCH MONEY YOU ARE GOING TO MAKE IF YOU ARE RIGHT ?
NEVER TRADE WITHOUT A PROTECTIVE STOPLOSS !
RULE: DONT TRADE WITHOUT A TRADE PLAN !
MONEYMANAGEMENT
CREATE FIXED RULES HOW MUCH MONEY YOU WANT TO RISK PER TRADE AND STICK TO YOUR RULES. DONT USE A RISK FROM MORE THEN 5% PER TRADE ! RULE: USE MONEYMANAGEMENT !
PROFX1—WILL ALERT YOU WITH SOUND AND A POPUP WINDOW WHEN A POSSIBLE ENTRY IS COMING UP.
SOUNDON=TRUE / ALERT
SOUNDON=FALSE / NO ALERT
NOTE: PROFX 01 AND PROFX06 WILL BE DISPLAYED ON THE LAST 1000 BARS. YOU CAN CHANGE THAT, BUT FOR THE CASE THAT YOUR WORKING STATION IS NOT THE STRONGEST (256—768MB RAM) IST POSSIBLE THAT YOUR COMPUTER IS SLOWING DOWN. FROM THIS REASON IST RECOMMEND TO USE THE DEFAULT SETTINGS.
BEFORE WE START WITH THE EXPLAINATION FROM THE STRATEGY RULES, PLEASE TAKE THE TIME AND READ THE GENERAL TRADING RULES.
TRADING PLAN
MANY TRADERS STARTS TRADING WITHOUT ANY PLAN. SOUNDS UNBELIEVABLE BUT IS UNFORTANLY THE TRUTH.
PLAN:
WHERE YOU WANT TO ENTER A TRADE ?
HOW MUCH MONEY YOU ARE GOING TO RISK ?
WHERE YOU ARE GOIUNG TO GET OUT IF YOU ARE WRONG ?
WHERE YOU ARE GOING TO TAKE PROFITS IF YOU ARE RIGHT ?
KNOW HOW MUCH MONEY YOU ARE GOING TO MAKE IF YOU ARE RIGHT ?
NEVER TRADE WITHOUT A PROTECTIVE STOPLOSS !
RULE: DONT TRADE WITHOUT A TRADE PLAN !
MONEYMANAGEMENT
CREATE FIXED RULES HOW MUCH MONEY YOU WANT TO RISK PER TRADE AND STICK TO YOUR RULES. DONT USE A RISK FROM MORE THEN 5% PER TRADE ! RULE: USE MONEYMANAGEMENT !
PROTECTIVE STOP LOSS
ALWAYS PLACE A STOPLOSS WITH THE INITIAL ORDER. NO MENTAL STOPS! MANY
TRADERS SAY: „I USE MENTAL STOPS“ AND CHANGE THEM MENTAL WHEN THE MARKET GOES AGAINST THEM. WITH A MENTAL STOP, AS SOON AS THE MARKET HAS GONE THROUGH YOUR STOP LOSS PRICE, YOU WILL NO LONGER ACT ABSOLUTELY RATIONAL. NOW, YOU ARE MOST LIKELY TO MAKE A DECISION BASED ON FEAR, GREED AND HOPE.
RULE: NEVER TRADE WITHOUT A FIXED PROTECTIVE STOP !
TAKING LITTLE PROFITS AND LETTING YOUR LOSSES RUN
A MAJOR MISTAKE FROM TRADERS IS TAKING SMALL PROFITS AND LETTING LOSSES RUN. RESULT FROM HAVING NO TRADE PLAN.
AFTER ONE OR TWO LOSING TRADES, YOU ARE LIKELY TO TAKE SMALL PROFITS ON THE NEXT TRADE EVEN THOUGH THAT TRADE COULD TURNED INTO A LARGE WINNER. RULE: CUT LOSSES AND LET WINNER RUN !
AVERAGING UP/DOWN
IN FOREX WITH A LEVERAGE FROM 100:1 OR GREATER, AVERAGING A LOSS CAN BE DISASTROUS FOR YOUR ACCOUNT.
A TYPICAL APPROACH IS THAT AFTER YOU WENT LONG AND THE PRICE DROPS DOWN; YOU MIGHT FIGURE THAT IT WAS A GOOD BUY THEN, IT IS A BETTER NOW.
YOU MAY JUSTIFY AVERAGING DOWN BY FIGURING YOU WILL HAVE A LOWER AVERAGE PRICE AND REQUIRE A SMALLER MOVE TO BREAK EVEN. UNFORTANLY, YOU WILL LOSE TWICE AS MUCH IF THE MARKET CONTINUES AGAINST YOU.
RULE: NO AVERAGING UP AND DOWN !
OVERTRADING
TO MUCH OPEN TRADES WITH TO MUCH RISK IS A CLASSICAL EXAMPLE FROM OVERTRADING. OUR RULE IS TO HAVE ONLY 3 POSITIONS (MAX) OPEN AT ONE TIME. THIS GREATLY LIMITS ANY POSSIBLE OVER TRADING.
NOTE: OVERTRADING IS THE QUICKEST WAY TO BLOW UP YOUR ACCOUNT. RULE: NO OVERTRADING !
ALWAYS PLACE A STOPLOSS WITH THE INITIAL ORDER. NO MENTAL STOPS! MANY
TRADERS SAY: „I USE MENTAL STOPS“ AND CHANGE THEM MENTAL WHEN THE MARKET GOES AGAINST THEM. WITH A MENTAL STOP, AS SOON AS THE MARKET HAS GONE THROUGH YOUR STOP LOSS PRICE, YOU WILL NO LONGER ACT ABSOLUTELY RATIONAL. NOW, YOU ARE MOST LIKELY TO MAKE A DECISION BASED ON FEAR, GREED AND HOPE.
RULE: NEVER TRADE WITHOUT A FIXED PROTECTIVE STOP !
TAKING LITTLE PROFITS AND LETTING YOUR LOSSES RUN
A MAJOR MISTAKE FROM TRADERS IS TAKING SMALL PROFITS AND LETTING LOSSES RUN. RESULT FROM HAVING NO TRADE PLAN.
AFTER ONE OR TWO LOSING TRADES, YOU ARE LIKELY TO TAKE SMALL PROFITS ON THE NEXT TRADE EVEN THOUGH THAT TRADE COULD TURNED INTO A LARGE WINNER. RULE: CUT LOSSES AND LET WINNER RUN !
AVERAGING UP/DOWN
IN FOREX WITH A LEVERAGE FROM 100:1 OR GREATER, AVERAGING A LOSS CAN BE DISASTROUS FOR YOUR ACCOUNT.
A TYPICAL APPROACH IS THAT AFTER YOU WENT LONG AND THE PRICE DROPS DOWN; YOU MIGHT FIGURE THAT IT WAS A GOOD BUY THEN, IT IS A BETTER NOW.
YOU MAY JUSTIFY AVERAGING DOWN BY FIGURING YOU WILL HAVE A LOWER AVERAGE PRICE AND REQUIRE A SMALLER MOVE TO BREAK EVEN. UNFORTANLY, YOU WILL LOSE TWICE AS MUCH IF THE MARKET CONTINUES AGAINST YOU.
RULE: NO AVERAGING UP AND DOWN !
OVERTRADING
TO MUCH OPEN TRADES WITH TO MUCH RISK IS A CLASSICAL EXAMPLE FROM OVERTRADING. OUR RULE IS TO HAVE ONLY 3 POSITIONS (MAX) OPEN AT ONE TIME. THIS GREATLY LIMITS ANY POSSIBLE OVER TRADING.
NOTE: OVERTRADING IS THE QUICKEST WAY TO BLOW UP YOUR ACCOUNT. RULE: NO OVERTRADING !
NOT HAVING PATIENC
YOU TRADE TO MAKE MONEY, RIGHT ? YOU DONT GET MONEY TO ENTER AS MUCH TRADES AS POSSIBLE. CHOOSE THE BEST TRADING SETUPS AND WAIT PATIENT WHILE THEY COME UP.
IST SOMETIMES BETTER NOT TO TRADE THEN TO TRADE AND LOSING MONEY.
RULE: BE PATIENT !
DISCIPLINE
IT HAS BEEN OUR EXPIERENCE IN TRADING FOREX AND HELPING NEW AND SEASONED TRADERS, THAT THE GREATEST CAUSE OF LOSSES IS THE ABSENCE OF SELF DISCIPLINE.
TRADER NEED A LOT OF SELF DISCIPLINE!
YOU TRADE TO MAKE MONEY, RIGHT ? YOU DONT GET MONEY TO ENTER AS MUCH TRADES AS POSSIBLE. CHOOSE THE BEST TRADING SETUPS AND WAIT PATIENT WHILE THEY COME UP.
IST SOMETIMES BETTER NOT TO TRADE THEN TO TRADE AND LOSING MONEY.
RULE: BE PATIENT !
DISCIPLINE
IT HAS BEEN OUR EXPIERENCE IN TRADING FOREX AND HELPING NEW AND SEASONED TRADERS, THAT THE GREATEST CAUSE OF LOSSES IS THE ABSENCE OF SELF DISCIPLINE.
TRADER NEED A LOT OF SELF DISCIPLINE!
THE BEST WAY TO TRAIN YOUR DISCIPLINE IS MAKE YOURSELF WATCH THE MARKET
FOR A WHOLE WEEK WITHOUT DOING ONE TRADE. EVEN IF THE PERFECT TRADE COMES UP DONT DO ANYTHING. THIS WILL PROVE YOURSELF THAT YOU HAVE DISCIPLINE TO BE PATIENT AND NOT TO TRADE.
RULE: BE DISCIPLINED!
PROFX STRATEGY RULES
BASICRULES FOR ENTRY:
1) THE BASICRU LE IS THAT ALL I N D I C A T O R S MUST POINT IN THE SAME DIREC TION AND YOU ARE IN THE TRA- DING TIME.
(EUROPEAN-USA SESSION)
FOR A WHOLE WEEK WITHOUT DOING ONE TRADE. EVEN IF THE PERFECT TRADE COMES UP DONT DO ANYTHING. THIS WILL PROVE YOURSELF THAT YOU HAVE DISCIPLINE TO BE PATIENT AND NOT TO TRADE.
RULE: BE DISCIPLINED!
PROFX STRATEGY RULES
BASICRULES FOR ENTRY:
1) THE BASICRU LE IS THAT ALL I N D I C A T O R S MUST POINT IN THE SAME DIREC TION AND YOU ARE IN THE TRA- DING TIME.
(EUROPEAN-USA SESSION)
NOTE:
YOU CAN ALSO TRADE THE ASIA SESSION, BUT COUNT THAT THIS SESSION IS SLOW
AND GOOD MO VES HAPPENDS NOT SO OFTEN.
CHECK MAINTREND FROM THE 4 HOUR CHART. TRADE WITH THE MAINTREND.
CHECK THE ECONOMIC CALENDER. DONT ENTER A TRADE BEFORE MAJOR NEWS
COMES OUT. (GDP, NFP ETC.)
DONT TRADE HOLIDAY SESSIONS.
BASICRULES FOR PLACING THE PROTECTIVE STOPLOSS:
PLACE THE STOPLOSS NEAR THE LAST IMPOR-TEND SUPPORT/RESISTANCE LEVEL. (25—70 PIPS)
ALWAYS PLACE THE STOP WITH THE INITIAL ORDER.
DONT USE MENTAL STOPS
NEVER USE A STOP GREATER THEN 100 PIPS
NOTE: IF YOU FEEL NOT COMFORTABLE WITH SUPPORT AND RESITANCE LEVELS, YOU CAN USE ALTERNATIVE FIBS, PIVOTS AS POTENTIAL STOPLOSS LEVELS.
BASICRULES FOR EXIT:
EXIT @ TAKEPROFIT: 100 PIPS FOR GBP/USD
EXIT THE TRADE WHEN THE SIGNAL CHANGE
EXIT THE TRADE WHEN STRONG NEWS COMES OUT AND YOU HAVE NOT ONE IDEA
WHAT WILL BE THE DIRECTION AFTER THE RELEASE
4) EXIT THE TRADE AT THE END OF THE US SESSION
RECOMMANDATION: TRADE THE STRATEGY 1-4 WEEKS ON DEMO BEFORE YOU START TO TRADE LIVE WITH THE STRATEGY.
YOU CAN ALSO TRADE THE ASIA SESSION, BUT COUNT THAT THIS SESSION IS SLOW
AND GOOD MO VES HAPPENDS NOT SO OFTEN.
CHECK MAINTREND FROM THE 4 HOUR CHART. TRADE WITH THE MAINTREND.
CHECK THE ECONOMIC CALENDER. DONT ENTER A TRADE BEFORE MAJOR NEWS
COMES OUT. (GDP, NFP ETC.)
DONT TRADE HOLIDAY SESSIONS.
BASICRULES FOR PLACING THE PROTECTIVE STOPLOSS:
PLACE THE STOPLOSS NEAR THE LAST IMPOR-TEND SUPPORT/RESISTANCE LEVEL. (25—70 PIPS)
ALWAYS PLACE THE STOP WITH THE INITIAL ORDER.
DONT USE MENTAL STOPS
NEVER USE A STOP GREATER THEN 100 PIPS
NOTE: IF YOU FEEL NOT COMFORTABLE WITH SUPPORT AND RESITANCE LEVELS, YOU CAN USE ALTERNATIVE FIBS, PIVOTS AS POTENTIAL STOPLOSS LEVELS.
BASICRULES FOR EXIT:
EXIT @ TAKEPROFIT: 100 PIPS FOR GBP/USD
EXIT THE TRADE WHEN THE SIGNAL CHANGE
EXIT THE TRADE WHEN STRONG NEWS COMES OUT AND YOU HAVE NOT ONE IDEA
WHAT WILL BE THE DIRECTION AFTER THE RELEASE
4) EXIT THE TRADE AT THE END OF THE US SESSION
RECOMMANDATION: TRADE THE STRATEGY 1-4 WEEKS ON DEMO BEFORE YOU START TO TRADE LIVE WITH THE STRATEGY.
ADVANCED STRATEGY RULES:
WHEN YOU HAVE ALREADY EXPERIENCE IN TRADING FOREX, USE THIS RULES TO INCREASE YOUR WINNING TRADES AND YOUR PROFITS.
ENTRY ON THE MOVE
OSZILATOR HEADING DOWN, MOMENTUM IS STRONG, OTHER INDICATORS CONFIRMS THE DIRECTION.
IN SUCH CASES YOU CAN ENTER THE TRADE EARLIER.
FILTER OUT TIGHT RANGES
WHEN THE MARKET IS IN A TIGHT RANGE IGNORE UPCOMING ENTRY SIGNALS AS LONG THE PRICE IS IN THE RANGE.
ENTER THE TRADE IN THE DIRECTION FROM THE SIGNAL AFTER A CLEAR BREAK OF THE RANGE.
CHOOSE THE BEST STOP LOSS LEVEL
LOOK TO SUPPORT/RESISTANCE, FIBS AND PIVOTS. CHOOSE THE STRONGEST RESISTANCE OR SUPPORTLEVEL FOR THE STOPLOSS.
USE TREND CORRECTIONS
THE BASIC RULE SAYS. TRADE WITH THE TREND. HOWEVER, ADVANCED TRADERS CAN USE COUNTERTRENDS AND CORRECTIONS TO MAKE SOME EXTRAPROFITS.
FOR THIS YOU HAVE TO DETERMINE THE TREND AND LOOK FOR POSSIBLE TURING
WHEN YOU HAVE ALREADY EXPERIENCE IN TRADING FOREX, USE THIS RULES TO INCREASE YOUR WINNING TRADES AND YOUR PROFITS.
ENTRY ON THE MOVE
OSZILATOR HEADING DOWN, MOMENTUM IS STRONG, OTHER INDICATORS CONFIRMS THE DIRECTION.
IN SUCH CASES YOU CAN ENTER THE TRADE EARLIER.
FILTER OUT TIGHT RANGES
WHEN THE MARKET IS IN A TIGHT RANGE IGNORE UPCOMING ENTRY SIGNALS AS LONG THE PRICE IS IN THE RANGE.
ENTER THE TRADE IN THE DIRECTION FROM THE SIGNAL AFTER A CLEAR BREAK OF THE RANGE.
CHOOSE THE BEST STOP LOSS LEVEL
LOOK TO SUPPORT/RESISTANCE, FIBS AND PIVOTS. CHOOSE THE STRONGEST RESISTANCE OR SUPPORTLEVEL FOR THE STOPLOSS.
USE TREND CORRECTIONS
THE BASIC RULE SAYS. TRADE WITH THE TREND. HOWEVER, ADVANCED TRADERS CAN USE COUNTERTRENDS AND CORRECTIONS TO MAKE SOME EXTRAPROFITS.
FOR THIS YOU HAVE TO DETERMINE THE TREND AND LOOK FOR POSSIBLE TURING
POINTS IN THE TREND. (TRENDLINES, FIBS, PIVOTS)
ENTER THE TRADE WHEN A POSSIBLE TURNING POINT IS COMING UP AND YOU HAVE A SIGNAL FROM THE STRATEGY. USE A TARGET FROM 50-100 PIPS.
GENERAL:
WRITE A TRADE DIARY AND ANALYSE YOUR TRADES.
DONT SIT THE WHOLE DAY IN FRONT OF YOUR SCREENS—IT IS MORE THEN ENOUGH WHEN YOU CHECK YOUR CHARTS EVERY FEW HOURS.
TRADE AT FIXED TIMES.
SHARE YOUR RIKS TRADING MULTIPLE PAIRS.
ENTER THE TRADE WHEN A POSSIBLE TURNING POINT IS COMING UP AND YOU HAVE A SIGNAL FROM THE STRATEGY. USE A TARGET FROM 50-100 PIPS.
GENERAL:
WRITE A TRADE DIARY AND ANALYSE YOUR TRADES.
DONT SIT THE WHOLE DAY IN FRONT OF YOUR SCREENS—IT IS MORE THEN ENOUGH WHEN YOU CHECK YOUR CHARTS EVERY FEW HOURS.
TRADE AT FIXED TIMES.
SHARE YOUR RIKS TRADING MULTIPLE PAIRS.
