Trading the 'Currency Ring' and making money from it

Trading currency rings can be very good especially if you do not have the proper skills for doing technical analyses of determining the proper direction the market might be heading and tkaing position accordingly. Currency Ring is a good way to trade the forex market easily and hassle free. Firstly, we need to know what is a Currency Ring actually.

A currency ring is a set of of 3 pairs which contain 3 currencies and share the same number of currencies when traded altogether. Each currency ring will consist of 3 related pairs and there can be many of them. Here are the most popular currency rings which you can trade with the majority of the brokers as all these pairs are normally available to trade on all of them.

AUD/JPY AUD/USD USD/JPY	CHF/JPY CHF/USD USD/JPY	EUR/JPY EUR/AUD AUD/JPY	EUR/USD EUR/AUD AUD/USD	GBP/JPY GBP/USD USD/JPY	EUR/CAD EUR/USD USD/CAD	EUR/CHF EUR/GBP GBP/CHF
EUR/CHF EUR/USD USD/CHF	NZD/JPY NZD/USD USD/JPY	EUR/JPY EUR/GBP GBP/JPY	EUR/USD EUR/GBP GBP/USD	EUR/JPY EUR/USD USD/JPY	GBP/CHF GBP/USD USD/CHF	GBP/JPY GBP/CHF CHF/JPY

As you can see above, we have 14 currency rings which we can trade all the time. However, it is advised to trade only 1 currency ring per account as it give you more control on what you are doing and also give you a good glimpse on the currency ring you are currently trading. You can log the statistics and performance of each of these currency rings on different accounts. Trading one currency ring per account also protect you from undue drawdown that you might experience with these type of strategies.

Firstly, we are going to place an Average Daily Range indicator on the pairs that form part of the currency ring we are going to trade. If the pair has moved over 25% of the daily range, then we buy the currency ring and close the trades when the pairs has reached 50%-75% of the Average Daily Range (ADR). Here is an example:

1. We buy 1 lot GBP/JPY
2. We buy 1 lot GBP/CHF
3. We also have to buy 0.8 lots of CHF/JPY in order to stabilise the accounts

When we bought the GBP/JPY and the GBP/CHF, we have also actually bought the CHF/JPY as the cross pair and we have to open a real by order as well in this pair to stabilise the currency ring. After we are done, we wait for the pairs to move and we take profit from the overall combined profit of all the orders together. This is a very interesting forex trading strategy and if you have some time to experiment with it, can bring you lots of good. You can read more about this trading method from the link here. Good luck

Counter-Trend Trading Method with the CounterStrike Forex Strategy

The trading strategy I am about to introduce to you is a counter trend trading system which is 100% mechanical as well. What we mean by counter trend trading is that, if we have a situation when normally traders will buy the commodity, we will be doing the opposite and selling this commodity and if others are selling, then we will be buying. And by 100% mechanical trading system, I mean that the system is totally free from any discretionary trades. For example, if you see A, then you see C, then do B... this is an example of a mechanical trading system. Mechanical trading systems are very good for traders who are become psychologically weak and emotional when in front of the charts, which eventually lead them to make bad trading decisions in the market when using discretionary trading systems. For these kind of traders, a mechanical system the system which will really suit them. I originally read about the CounterStrike trading system from the following thread and I really liked it. Personally, I think this system has some very good potential in making some pips from the market. If you have some free time in hand, I suggests you use it wisely and go ahead to read this trading system. If you have even more time, then you can do some practice on demo charts and see how it is working for you. It is no strange that you can stumble on some golden nuggets of the forex trading systems. All the best.

The 'Catch and Release' Forex Trading Strategy

I would like to introduce you to this very nice trading system which can be used to take advantage of the big trends that occurs every now and then in the forex market. This strategy works great with trending pairs like the majors for example the eurusd, gbpusd or gbpjpy. The aim of this strategy is to wait for a trend to develop itself, then enter the market upon small retracement against the established trend.

The Catch and Release method uses a combination of buy indicators and sell indicator to generate buy and sell signals for the forex market. To be accurate, the system uses 5 indicators which are namely the GMMA SLOW, EMA (20 and 30),Stochastics(9,3,3), RSI(3) and finally the Heiken Ashi. All combined together produce very nice entry signals for the forex market with a high rate of accuracy. I would not go into the details of setting up the charts etc but I will just post the template at the end of this post so that you can just download it and apply to your metatrader platform. Your chart should be ready for you to trade. Now I will write a bit on the buy and sell signals. I will restrict myself to very little words as I have already made very illustrated screenshots of how the system works with trade examples so that you can follow and learn without the hassles of endless reading.

Here are the rules for buy signal as well as 2 trade examples which occured following the fulfillment of these rules. The screenshot explains for itself and I will not be commenting on the rules.

As for the Sell signal which this system generates, please review the screenshot below where the rules have been clearly outlined as well as trading examples. Follow the numbering for the signal order.

Download the template and indicators and start your trading practice. Good luck. Source

CatFX50,another free yet powerful forex trading strategy

I am sharing this fantastic free forex trading system with you which is called 'CATFX50' Trading Method. This strategy is reputed for its high rate of accuracy in finding proper entries for your trades. CatFX50 is a very easy system and it will not take you a lot of time to study and apply its rules to your own trading. The rules are clearly explained and outlined in a word document and you should refer to it anytime you stumble across some problems in understanding how the system works to generate the trading signals. After you have thoroughly read through the rules, make sure you practice this trading system on a demo account for a while so that you can determine whether the system fits your taste or not. CatFX50 uses a lot of indicators to determine the proper trading entries and this alone turn the system into a very powerful and accurate one. This system can be used stand-alone and it has different buy indicators and sell indicators which works together to give buy and sell signals. These buy and sell indicators can be applied to any chart just by applying the Metatrader template found in the catfx50 download packages. I hope that you will benefit from this system and will make a lot of pips. Go ahead and download the whole package which contains everything for the system. You should find the indicators and templates also. Good luck. Source

4XWorks - A very interesting ebook and hedge trading method

I would like to share this small ebook with you. It is called 4xWorks and as the motto of the book itself suggests, it should help you create realistic returns with minimal risk. The author starts by giving an overview of the forex market and the huge earning potential before releasing and explaining in very good detailed clear english, how we can achieve a good and consistent positive portfolio using his hedging method which uses the USDCHF and EURUSD pair. For those who are already familiar with hedging, they can think that this is old stuff that they already know about but I highly encourage them to go through this book because it is definitely something different from the hedging they might be thinking about.

Hedge Trading gives numerous benefits to the trader but the main one which is the most outstanding of all is that, it turn your trading safer and relieve you from the fear/greed effect gradually. Hedging will eventually eliminate the stress factor and should affect the trading psychology positively after using it for quite a while. So for those out there who are already stressed and almost fed up with the market, I suggest they should try this system as a therapy and it should work.

The method described in this book is for all likes... starting from a mild setup which should be very conservative and consistent to a Risky setup which is definitely not advisable for the beginner in trading. The part which I enjoyed apart from the explanation of the method is how the user takes some time to bring and introduce the proper trading discipline which one should adopt while facing the market. I definitely benefit a lot from it and I hope it help me in the future. I hope you will enjoy this read. Go ahead and download the ebook at your own convenience. Read more.

Super Bounce20 Forex Trading Strategy - Another free forex trading system that works

I am delighted to present to you the Super Bounce20 Trading System. A really cool trading method which corrects one of the most notorious weakness of 99% other trading systems which is nothing but 'Late Entries' in your trades. For any system which uses indicators to generate trade signals, there is always the problem of 'late entries' associated with them. Hopefully, this trading system, which is not a new one and which does not use fancy indicators etc, is here to correct this problem. If you have been neglecting the problem of late entries till now, please take some time to read this separate post which talks about this particular problem and how it affects one trading system, so drastically that it can turn a winning system into a losing one. I suggest you read this post which I wrote about this problem. Follow this link please.

Now, after the overview, let me talk about the Super Bounce20 Trading System. The system consists of only 2 indicators, the MACD which is the primary indicator and the Simple Moving Average(SMA) which is our secondary indicator, we use 2 moving averages in our system.

Setup your charts as follows:

1. Open your chart to any timeframe (M15 and above preferred)
2. Place the MACD indicator on the chart with the default settings
3. Place a Simple Moving Average, color BLUE and Period 20 on close
4. Place another Simple Moving Average, color RED and Period 5 on close

If you want to go quicker, download the template at the end of this post and apply it on your metatrader chart. You won't be having to place the indicators manually one by one.

The signal generation method of this trading system is in three steps and I will be writing on each steps in details here. I will also post a screenshot at the end as well as some trade examples so that everything written could be summarized in these screenshots. You should read the text again and refer to the picture so that you can get a clearer idea of the system. A picture is worth a thousand words but we still need the words...

Step 1 - MACD gives the early signal

The MACD is the first to give a signal in this trading system. We will take a BUY example for all the explanation and for the sell, you just have to reverse and do the opposite. This is not rocket science for anyone to do. So, in order to generate a valid BUY setup, the MACD needs to be below 0 line... Let me number the process for you

• MACD should be below 0 line
• MACD histogram (bar) should start moving away from the Signal Line(RED), therefore start to decrease in height.

Look at the following screenshot to get the pictorial meaning of what I am saying.

Pretty easy I guess...Anyone can spot this on any chart and as I am saying it again, it is not rocket science to do that. For a SELL situation, you just have to reverse the RULES which is, MACD should already be above the 0 line and the MACD bar(histogram) should start moving away from the red signal line and decreasing.

As we have seen, this is the very first signal for this trading method and we should not be looking at anything else unless the MACD give us the permission by showing the very first signal. Now we move to the next step.

Step 2 - The BOUNCE on the SMA 20

After we have a valid first signal from the MACD, its a go to look for the next signal in order to determine our trade signal and decision. Now we look at the price (candlesticks or bar chart) closely... You should notice that as soon as MACD will give the first signal, price will start to move into that direction.... In our example, price start to move up BUT... it should BOUNCE off the SMA 20 (BLUE) and retrace a little downward... This BOUNCE is out 2nd signal... Look at the screenshot for a better idea on this

As you can see above, after the MACD gave the first signal, the price started going up but when it went past the SMA20, it stops and reverse a little... This is called a bounce... We can say that price bounced off the SMA20... This will be our second signal and we have a final step which is the entry... Please note that for a SELL situation, price would try to go down and bounce on the SMA20, then go up a little before going down again... Lets look at our last step now

Final Step - The entry

After price has successfully bounced off the SMA 20(blue), we can see that is is going in the opposite direction for a while and it is called a retracement. Now we wait for the price to go past the SMA 5(RED)... When the price goes past it and closes below the SMA 5, we open our position at this close... Sometimes price will not close beyond the SMA 5 and will just make a shoot(candlestick tail), we can enter on a shoot as well. This final step is our entry. So, let us look at all these three steps on a single screenshot, please observe closely.

As you can see above, all the rules has been summed up in this picture and the steps are well illustrated and numbered. Again, please keep in mind that we are taking a BUY signal as example and for a SELL, you just have to reverse the rules and do the opposite. I cannot write so much on the SELL as well because it is too easy to figure out.

Final Words

This system is very promising and there is no more late entries with it. The pips you would ahve left on the table with other trading systems, you can catch them with the Super Bounce20 Trading Method. Do not underestimate this forex trading system due to its simplicity... Simplicity is the strength of this system... Give it a try and you will not regret wasting your time. My thanks goes to the guy who originally come up with this trading system. I do not know him personally. If he ever read this, I would be delighted if he left a comment.

Also, you can download the metatrader template file from the link below. With the template, you would not need to setup your charts manually and you just apply the template to get everything in place... It is good for the lazy ones... LOL... Have fun.. Source