Disclaimer & Copyright

As you can see, we have all the components of a good forex trading system. First, we’ve decided that this is a swing trading system, and that we will trade on a daily chart.. Next, we use simple moving averages to help us identify a new trend as early as possible.

Find out what you need to do to avoid big losses as a beginner.

What Every Trader Needs to Know...

There are 2 complete sets of videos for these methods and for each one there are 2 sets of indicators and templates. The first set of indicators and templates are the CTS final version which is able to be duplicated exactly in .

Please read this carefully. Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the FOREX market, you should carefully consider your investment objectives, level of experience and risk appetite.

Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any foreign exchange transaction. Moreover, the leveraged nature of FOREX trading means that any market movement will have an equally proportional effect on your deposited funds.

This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.

There are also risks associated with utilizing an internet-based deal execution software application including, but not limited, to the failure of hardware and software. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.

The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

In any market where a potential for profit exists, there exists also a risk of loss. None of the information on money grid methodology nor any information or education provided to the client by any means assures that the client will make money in the FOREX market. The information contained in this document does not constitute investment advice. I will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Even though the FOREX market offers traders the ability to use a high degree of leverage, trading with high leverage may increase the losses suffered. Please use caution when using leverage in trading or investing.

Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those inferred or shown.

One of the limitations of hypothetical performance results is they are generally prepared with the benefit of hind sight. The ability to withstand losses or adhere to a particular trading program in spite of trading losses are material points which can adversely affect actual trading results.

There are many other factors related to the markets in general or to the implementation of a specific trading program which cannot be fully accounted for in the reparation of hypothetical performance results — all of which can adversely affect actual trading results. Risks Associated with FOREX and Trading Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors.

Profit and Loss Potential In any market where a potential for profit exists, there exists also a risk of loss. Benefits and Risks of Leverage Even though the FOREX market offers traders the ability to use a high degree of leverage, trading with high leverage may increase the losses suffered. Hypothetical Performance or Back-Tested Results Hypothetical performance results have many inherent limitations. The RSI is an extra confirmation tool that helps us determine the strength of our trend. After figuring out our trade setup, we then determined our risk for each trade.

For this system, we are willing to risk pips on each trade. Usually, the higher the time frame, the more pips you should be willing to risk because your gains will typically be larger than if you were to trade on a smaller time frame. Next, we clearly defined our entry and exit rules. At this point, we would begin the testing phase by starting with manual back tests.

If we went back in time and looked at this chart, we would see that according to our system rules, this would be a good time to go long. You can see that when the moving averages cross in the opposite direction, it was a good time for us to exit. Of course, not all your trades will look this sexy. Some will look like ugly heifers, but you should always remember to stay disciplined and stick to your trading system rules. We can see that our criteria is met, as there was a moving average crossover, the Stochastic was showing downward momentum and not yet in oversold territory, and RSI was less than