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

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

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

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...