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.

Simple 1HR Trend System

Here is a simple and easy little system which will help you to take advantage of the heavy trends which usually occur each year withing October and May. The system comprises of 2 metatrader indicators which gives buy and sell signals. The first indicator is a custom made Moving Average indicator which only show an arrow each time there is a signal. A Green arrow for a long signal and a Red arrow for a short signal. However, we do not enter the market on the appearance of the arrow alone but we need to confirm the direction with a second buy and sell indicator which is a mapped version of the RSI indicator. The Mapped RSI shows long signal when it turns green and shows short signal when it turns Red. However, when the mapped RSI turns grey, then it is an indication to exit the trade and that the trend might be changing. So, when the buy and sell signals from these 2 indicators are coupled together, we get a strong signal in the direction of the trend and we take the trades in that direction. Here are the indicators and metatrader template for you to download and use. Good luck. source

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

Easy Forex Trading Method, running without indicators

I want to share this very small and easy forex trading method with you. It is so easy that you will be able to master it within minutes. You do not need to place any indicators on your charts. This system is purely based on the price. The only 2 piece of information that you are going to be needing is the Open of the candle(H1+) and the Current price of the pair you are working with. You do not need to be a rocket scientist to get these piece on info from your charts. Have a look at the screenshot below.

So what we need to do is the following

1. Get the pips number which we are going to use to work out our calculations for the order placement. We do this by taking the current price of the pair and multiply it by 10. In our example the current price of the EURUSD as 1.4700 so we take it and multiple it by 10 (1.4700 x 10 = 14.7) and we get 14 pips. We round all the numbers. So 14 pips will be the number we are going to work with.
2. We need to determine the the prices where we will place the pending buy and sell orders. First we take the number of pips we got above and we multiple it by 2 (14 x 2) and we get 28 pips. Now the orders that we are going to place should be 28pips away from the current price. So the pending BUY order will be 1.4700 + 28pips = 1.4728 and our pending SELL order will be at 1.4700 - 28pips = 1.4672
3. Now to determine the StopLoss level, the stoploss levels should be 28pips (14pips x 2) from the Opening of the candle we are working with. In our example above, the StopLoss for the Buy order is 1.4707(open) - 28pips = 1.4679 and the StopLoss for the Sell order is 1.4707(open) + 28 pips = 1.4735
4. For the Takeprofit, we take the Current price and multiple it by 100, therefore, as per our example, our takeprofit is 1.4700 x 100 = 147 pips.
5. To calculate the Trailing Stop value, we use the following formula 28 pips + (14 pips/2) = 35 pips. This is the trailing stop that we are going to use.

As you can see, this system is indeed very easy to understand and apply. It does not take into consideration in which direction the market is going. Whatever the direction the market takes, we are going to make some profit or at least breakeven on our trades. I wish you best of luck on this one. You can download the instructions for later reading.

The Pin Bar Trading System - Free forex strategy

The Pin Bar Trading System is a very small, easy and neat little system that anyone can easily adopt as his long term trading strategy. This strategy does not need long hours of endless charting like a hawk in front of the screen, but will just need a few minutes to eyeball the chart everyday at the close of the daily bar. As it works on the daily timeframe.

What you need to do is, you need to wait for the daily bar to close, use a bar chart. After it closes, we need to identify whether it is a pin bar or not. A pin bar is a long bar but with the close and open to be almost at the same level or very few pips apart. In candlesticks, we will say that it is a candle with a very small body and a long tail. Here in this screenshot, you can find both a bullish and a bearish pin bar.

As I said, this strategy works well on the daily timeframe and as I will be detailing, it has a high risk/reward ratio. It is imperative that you wait for the pin bar to close and the next bar to open before you can work on this pin bar. Once you have correctly identify a bar as a pin bar, you need to take your fibonacci tool which is available in most trading platforms and draw the fibonacci levels on the pin bar itself. If its a bullish pin bar, you draw the fibonacci level from the low to the high of the bar and if it is a bearish pin bar, you draw the fibonacci from the high to the low. Consider the example below, in our example, a bullish pin bar has just been identified. Observe this screenshot below:

So after I have identified this pin bar, I drew the fibonacci levels. The only level which interest me is the 50% retracement level or the 0.5 level. What I do now is, I place a pending order just at this level speculating that price should normally retrace to this level before going in the desired direction. I place the stoploss 5 to 10 pips above the high of the pin bar and if it would have been a bearish pin bar, I would have place the stoploss on the opposite side of the bar. As you can note, we have our stoploss very close to the entry and this decrease our risk per trade drastically. If the stoploss gets hit, as it can happen a few times as well, then we would be losing except a little from our trade. However, if the price retrace, trigger our order then goes in our direction, then we are sure to make at least 2x from what we risk in terms of profits. We can even make as much as 10x or more. Since we are dealing with the daily chart, we should be patient, the trades can last for weeks!

You should not be risking more than 5% of your capital per trade. If you do not have time to monitor your trades, you can use a fixed takeprofit which can be twice the distance of your stoploss for example... or you can use a trailing stop to trail your orders. However, trailing stops are not very good as it tends to reduce the room for the trade to properly develop and reduce the profit potential as well.

Some rules to be observed when using this system:

1. Always wait for the pin bar to close and new bar to open.
2. We work on the daily timeframe, this would not work great on lower timeframes
3. We look for pin bars which develops at Support/Resistance levels, Fibonacci retracement level, pivots or we look for pin bars which appear at the bounce of a trendline.
4. We never use instant order, we always place a pending order at the 50% retracement level
5. We never risk more than 5% of our capital per trade
6. We breakeven our trades as soon as we can, but not too early as well, we breakeven only when we have around 30-50 pips of profit. From this point, we will be trading with 0 risk and we can wait for days expecting price to go as far as it can.
7. Close the trades when you have an opposite pin bar and open the trade in the other direction.

This is all regarding this wonderful and easy trading system. As with every single trading systems, you need a lot of practice to gain some level of mastery of it. Practice it on all the pairs you have on your broker demo account for a few weeks. If you are working on 20+ pairs, you should be having at least some 5 trade signals per week. And most of them will give you lots of profits. You can download the package from the link below. Read more...