New Trading Strategy

New Trading Strategy

Here are the January 2019 results of my new trading strategy.

The blue arrows are winning trades with an average of 70 points profit.

The red arrows are losing trades with an average of 35 points loss.

This equates to around 665 points profit.

All trades were between 7 am – 7 pm

new trading Strategy

The system is for use on the DAX and gets you in and out the market quickly and safely by ensuring the odds are firmly stacked in your favour by 2/1.

I was going to offer this as a completely new system and charge for it. However, I decided to add it to the member’s area of my spread betting course.

Since I started testing and developing this strategy back in September last year, the strike rate and results have stayed consistent… and sensational.

You can start using this strategy with the smallest of banks and expect to see a steady return from month to month.

Another awesome thing about this little strategy is that you can set alerts to notify you of a trade. This means limited missed opportunities.

You also get up to 30 minutes after an alert to get the trade on.

You can Join me from Tuesday

Now, if you haven’t been able to join my sold out spread betting course… you’ll have the chance to get access from this Tuesday.

I’m going to let 30 new students in.

If you’re not on the waiting list then you might miss out again.

My spread betting course includes 6 awesome trading strategies and I also send you info on charts that look like they might be ripe to trade.

There are absolutely no other hidden fees once you join.

If you want to get access to my awesome new strategy shown above and all the other strategies too, make sure you join up this Tuesday.

To be on the safe side, make sure you’re on my mailing list as you’ll hear first the minute the doors are open.

If you want to learn how to trade in 2019 then you won’t go far wrong with my spread betting course.

 

Moving Average Strategy

Moving Average Strategy

The moving average is by far the most common of all technical indicators that you will see used on charts by professional and retail traders alike.

A Moving average strategy is easy to use and add to a chart, but they can also give you some of the simplest trading signals to act upon.

However, although the moving average may give out some easy and stress free buy and sell signals; with a little bit of further basic chart reading, your moving average system or strategy if you prefer can become a finely tuned trading master piece.

In this tutorial we are going to be looking at how you can trade the DAX using a triple moving average and some simple chart reading.

The results and obviously profits over time can be greatly enhanced by putting in a little bit of extra effort.

If you are serious about learning to trade the markets then my advice to you is to learn to trade one particular strategy that suits your strengths and learn it well.

Moving Average Strategy

The moving average strategy that we are going to cover here today can be adapted to suit your own style, goals and markets.

We are going to be trading on the DAX with a triple Exponential [EMA] moving average 20,50,100. We will not use any other indicators.

So we will be looking to trade the triple moving average crossovers but also the 20/50 crossovers if they are above or below the 100 and are in sync with the main trend direction.

To give us a greater edge of a successful trade, we are also going to be looking at using some simple price action within the strategy and also the use of support and resistance lines too.

The overall idea is that combining some of the most useful but simple chart indicators along with basic price action chart reading, the complete trading rookie will be able to trade profitably with a little practice.

Why use Moving Averages

Moving averages smooth out the prices that you see on a chart. This smoothing of the price data can help give you a clearer picture of what and where the price on a chart is heading.

Combined with the ability of producing crossover signals when using multiple moving averages, you can understand the reason why the moving average is so commonly used.

You have to remember though, that the moving average is a lagging indicator. This means that the data that the moving average offers you is delayed.

However, when you use a moving average along with some price action and S&R levels, you get a pretty reliable trading strategy.

If you are interested in learning how the moving average is calculated then you can read about it here 

Using Price Action

We are also going to be using so simple price action techniques that will help us identify better entry points to open our trades.

Price action is one of the most effective ways to trade the markets.

The beauty of using price action along with moving averages is that the moving averages are alerting you or have already alerted you to a possible trade. You will now find it easier to identify the price action at key areas by identifying common and reliable candle patterns.

Price action trading when used to confirm moving average signals makes for an awesome trading strategy that can be used on most charts.

Learn One Trading Strategy Well

Many traders fail to make a system or trading strategy pay because they are too preoccupied with trying to learn too many trading strategies at once.

They move from one system to the next and even try trading multiple systems at once… without ever mastering any of them!

Using our trading system detailed here, can be a great place to start learning a solid trading strategy that can then be tailored further to your own personal trading style, strengths and weaknesses.

Maybe you’ll prefer 4 hour charts? Maybe you’ll add a couple of different indicators? Whatever materialises on your journey as a trader is great, but learn the foundations first… and learn them well.

The Trading Video

Here is the video that will show you how to start trading the DAX with 30 Minute candles, price action and an easy moving average strategy.

Take some notes as you go along as this will help when you start to paper trade rather than keep watching the video.

Please give us a thumbs up on Youtube if you like it.

Chris is doing the video as always but you can email me if you need any help.

Moving Average Strategy Basics

As already said earlier on, there is nothing complicated about this strategy at all.

We will be using…

20,50,100 Exponential Moving Average

Price action candle patterns

IG Charts

Alerts set using the IG platform

And that’s all.

16 Personalities – What type are you?

16 personalities

Here’s a really great personality test that you can take. It’s fun, amazingly accurate and can even help you with your trading.

16 personalities is like taking a quiz about yourself. You simply answer the questions that they ask and you are presented with your personality results.

This isn’t some dodgy new website that has no track record. 16 personalities has been around a long time and their feedback is amazing.

The one thing you have to do though, to make this test work for you, is this… BE HONEST.

There is no point in taking the test if you can’t answer the questions truthfully.  Just because a question you are asked rubs you up the wrong way, you can’t tell fibs to your computer just because it will make you feel better. Be honest, or you’ll just cheat yourself from the final results.

How can 16 Personalities Help You Trading?

Well, like this. You think you know yourself right? Some of you might, but most of us are only listening to our egos when it comes to being honest about the person that you really are.

No one likes to be told that they’re wrong, especially when it comes to our image. Our image is largely based on our own personal ego and ideals about ourselves.

Your ego tells you you’re great, amazing clever… weak, unconfident, stupid. But it will never really tell you who you are or what you are capable of. That is the nature of much of our self-talk, our ego voice is often heard and is often wrong.

Your Ego Mind

Imagine that you were learning to trade a certain strategy or system; it had awesome reviews and can most certainly make you money. However, you just couldn’t get on with it and make it work.

Your ego then pipes in… you’re stupid! Nothing you try ever works. You’ll never do it. And so on.

Luckily that is rarely the case. Unfortunately though, many of us believe the self-talk the ego gives us.

But, if you had an accurate understanding of the type of person that you really are then this could help you in and on all levels.

OK, the system or strategy you tried may not suit your style; it might be too fast, to slow or whatever. But knowing who you are deep down without listening to your ego berate or inflate you can really help in situations like this.

If you have a clear unbiased script of your own strengths and weaknesses, you could easily use it to help find a more suitable trading strategy… plus it can also be very useful in many other areas of your life.

You can try the test here, it’s free and totally awesome.

Swing Trading Spread Betting

Swing trading is one of the best trading strategies that you can ever master.

Learning to swing trade can give a trader the upper hand in the markets and the edge that you need to tip the balance in your favour… literally.

In fact, I could honestly say that it is one of my favourite trading strategies overall.

It is also some of the most successful of traders’ favourite choice of trading arsenal.

So what is swing trading? How do you do it? And what can you swing trade?

 

What is Swing Trading?

Swing trading is the process of trading the price movement of any given security that is repeated in a given price range.

Look at the chart beneath…

You can see that I have drawn support and resistance lines where the price has reached high and low points over the space of the given time that you can see at the bottom of the chart.

swing trading

Drawing these lines creates a channel where the price moves back and forth [swings].

It is this price movement back and forth, that creates opportunity for us to trade by giving us an indication of where the price is likely to go next over a space of time.

Once we have drawn in support and resistance levels, we can speculate that the price is likely to ping around within these zones.

Obviously the price can also break out from these levels, but these breakouts can also present trading opportunities… although we will not be covering that here today.

 

How do You Swing Trade?

Quite simply, you create a price zone and look to open positions when the price reaches the support or resistance levels and looks like it [the price] is about to retract.

Although that may sound incredibly simple [and it is once you know how] it is not so simple that everyone uses the strategy to regular effect.

The difficulty lies in the fact the ‘you’ the trader has to decide if and when to hit the button and open the trade.

Unlike relying on one of the myriad of indicators that you can add to a chart that supposedly tell you when to buy and sell [yeah right] You actually have to decide yourself.

It is this decision making that puts many traders off from swing trading.

However, as said, if you take the time to learn swing trading you can and will have a reliable trading strategy for life.

How do you know if the price is going to retract from a support or resistance line?

Well, you don’t!  But there is a way to put the odds of successfully speculating a winning trade.

This is done by looking for candle patterns to form at these support and resistance levels or looking for moving average crossover signals. I actually cover this in depth in my spread betting course.

There are many candle patterns that you can look for but some do perform better than others and also occur more frequently.

If you decide to use moving averages to identify the swing trade then keep them short.

You will want to use a fast moving average that is less than 10 and something medium term that is less than 50. Anything longer will likely get you into the trade way to late.

 

What can You Swing Trade?

Swing trading is not limited to any particular security type. It does however lend itself to currency trading very well indeed.

Currencies often trade in ranges for periods of time.

They then strengthen or weaken out of these ranges [breakouts]. Unlike stocks that tend to move in one direction or the other up or down [although some stocks do obviously trade in range at times too]

The good thing about swing trading currencies is that you can rinse and repeat.

According to statistics, currencies only return on average 7% a year.

But if you are swing trading then you can actually increase those percentages on occasions if you choose the right pairs. This percentage can be increased further by using 4 hour charts.

So for example, lets say that USD/CAD moves 7% higher over a year; it is all the swing trading back and forth within the year that can increase profits instead of just holding the one long position over a year.

There is clearly going to be more work in swing trading, but the rewards and profitability can be increased.

If currency trading isn’t your thing, then there is no reason why you can’t start to look for shares that are trading in a range. You could even try commodities.

If you open a demo account at one of the financial bookmakers like IG or CMC markets, you can test the strategy out in real time and not even risk a penny.

Chart Times

I have found that the best charts to use with this strategy are the daily candle charts. These are the most accurate and stress free charts to trade.

You can also use the 4 hour charts very effectively although you will find them slightly more volatile.

In Summary.

In summary… swing trading is well worth taking the time to learn. Learning how to do it may not all fall into place overnight and doesn’t rely on mechanical trading indicators.

Overtime though, it can give you a reliable trading strategy that helps maximise returns in what are considered slower moving markets like currencies.

Swing Trading Video

Here is a video my partner has done for you that outlines swing trading using the daily chart of the USD/CAD.

 

Bitcoin trading Strategy

Here is a Bitcoin trading strategy that I have been running since November 2017.

In fact, it was after Vince Stanzione’s crypto seminar that I started looking at ways to trade Bitcoin.

Vince Stanzione uses one day charts to trade Bitcoin. And combined with his trading strategies it works fantastically.

But for some, using the daily charts means that your stop losses may be too big to stomach.

Bitcoin Trading on IG 

You also need to consider the spread that IG charges you to trade Bitcoin [or any other spread betting company]

This will in most instances put your position into negative as soon as you open it, unless there was some sort of mad price swing just as you opened the trade.

As well as the spread that you get charged, the margin that IG request you to use to trade Bitcoin can be huge. For example, a 0.30p a point trade on Bitcoin with IG will require a margin of just over £900.

This is partly fuelled and due to the fact that the stop loss distance required is a whopping 860 points minimum.

So if you can get over the initial hurdles to place a spread bet and start Bitcoin trading then the road may well be paved with Bitcoin gold…

But hold on… there’s more to it than that.

Bitcoin Trading Strategy

You can’t just jump head first in to the fray and follow the crowd when it comes to Bitcoin trading.

Doing so will probably mean you lose money. Even if you manage to call the right direction, you’ll find that you are left licking your wounds after your stop loss gets triggered because of some wild swing that occurred for no apparent reason.

This is where a simple Bitcoin trading strategy comes in and is basically essential for success.

The Bitcoin trading strategy that I have been testing since November as performed brilliantly over that time.

In fact the results you could have achieved or at least somewhere near are very encouraging.

Considering that we are only using one simple indicator with this trading strategy makes this all the more impressive.

Also, you won’t need any fancy charting packages or need to subscribe to any of the like.

The free IG charts are all you need to trade Bitcoin successfully.

Price Data

However, because of Bitcoin not being traded for any serious length of time, [as it happens only since December 2017 when the CBOE added it to their exchange] Has the option [no pun intended] to trade Bitcoin been brought to the masses.

This means there is obviously a lack of historical price data [compared to other established currency pairs] to use in analysis.

But this lack of data offers us the opportunity to keep Bitcoin trading as simple as possible…

All we are using to create a winning strategy that has netted over 7000 points profit this year [2018] already, are 2 exponential moving averages.

 

Lack of Bitcoin Data continued…

As said, the first issue that I had when developing a new strategy was that there was very limited historical data to go by.

This meant that it was going to be practically impossible to draw any accurate support and resistance levels.

This was then combined with the fact that there had only been one trend… and that was up.

Now though, almost 5 months later, there has been and is enough price data and price swings to claim that this strategy works.

Beneath is the 4 hour chart of BTC/USD from November 2017

We can see that there has been a big range of movement up to almost 20000 any right back down to 6000.

 

Bitcoin trading strategy

 

But using some simple trading skills and adding a moving average to the chart, we can see how easy Bitcoin has actually been to trade.

Let’s zoom in and take a closer look.

You can see clearly that I have added an exponential moving average with the periods 6/18 to the chart.

Bitcoin Trading Strategy Results

Now from the start of 2018 if we had traded every crossover signal on the chart that our EMA [exponential moving average] gave us, our results will have looked something like this.

Bitcoin trading

You can see I have added the trades and approximate points won or lost at each crossover. I have rounded the results off to the nearest 50 points in most cases. As always though, I have tried to be as accurate as possible.

I have calculated the results from logical entry points at the crossovers.

The trades have then been left to run until either stopped out or until the next crossover signalled to close the trade and change direction.

Stop losses were put strategically at points of recent highs before the crossovers, just above the crossovers or at the high of the previous candle next to the entry candle.

Remember I am using the 4 hour IG charts here from the start of 2018

Wins 9 = 10750 points

Losses 7 = 3470 points

Total points profit  = 7280

 

Bitcoin Trading Moving Average System Rules

  • Set the chart to the 4 Hour candles
  • Enter long, BUY, when the 6 moving average crosses up over the 18 moving average.
  • Go Short, SELL, when the 6 moving average crosses beneath the 18 moving average.

 

Exponential Moving Average

The reason that I used a moving average with this strategy is that again there is a lack of data to successfully use support and resistance lines or any other indicator that I consider useful.

This lack of data makes it harder to get the bigger price picture. Using the moving averages are helping us take the guesswork out of our trading. That obviously helps a lot when trading Bitcoin at the moment.

Moving Average Settings

You can play about with the settings of the moving averages and you may find that a different combination of settings or values works better for you. This 6/18 is what I found works best for this particular 4 hour Bitcoin chart.

I say that as these 6/18 settings will not necessarily work as well on another currency pair.

This is what you need to remember about technical indicators and trading. There is not one set of rules that works across the board for everything.

Don’t be afraid to test things out using different timeframes [candles] and different periods of moving averages. Even though this system is probably one of the best that you will see at the moment to trade Bitcoin, something else might suit you better personally for whatever reason.

As time goes on and more price data becomes available, we will be able to use support and resistance lines, candle patterns along with moving averages.

This can help give us an even clearer idea of price direction and therefore may help in making more informed decisions.

However, and certainly at the moment, using 4 hour candles and exponential moving averages has created a valuable strategy for trading Bitcoin.

Trading Banks and Stop losses

Unsurprisingly, due to the volatility you will need quite a big point’s balance in your trading bank to trade Bitcoin.

Bitcoin can still be very unpredictable and because of this combined with how much Bitcoin can move in 4 hours, stop losses tend to be quite large.

Although as you can see from the above diagrams and crossover signals, stop losses are really hit and the rewards are mainly larger than our initial risk.

Stop Loss Levels

There is no set stop loss figure that I have found that works regularly when trading Bitcoin.

Each trade is individual and finding strategic points to place a stop loss will vary from trade to trade.

One of the best places to put a stop loss is just above the moving average crossover, but this still [and obviously] doesn’t guarantee that you will be safe.

Sometimes it’s better to put a stop loss at the most recent high or low and sometimes it is preferable to put the stop loss at the high of the last candle.

 

Taking Bitcoin Profits

The best idea when it comes to taking profits from your Bitcoin trading is to close the trade at the crossover signals and open a trade in the opposite direction.

This eliminates the need to stress about profits and takes out the decision making out of the whole trading scenario.

The other alternative is to set a risk reward ratio and set a profit target.

So if your stop loss is 800 points then you can automatically set a take profit target at 1600 points.

This can work well for some people. The theory being that you will create a positive outcome over time as the win odds are stacked in your favour.

The downside to this take profits strategy is that you can miss out on some of the bigger wins. Sometimes you can also miss the smaller wins too. As said though, each to their own, and it is whatever suits you best.

 

Profitability and Other Trading Options

Without a doubt, over the coming year there will be many opportunities to trade Bitcoin and many chances to profit from other crypto currency’s.

Also it is important not to forget that there are still many other opportunities trading other currencies indices and individual stocks that can make great profits from.

Don’t get too caught up in the big hype! Yes Bitcoin has a lot to offer, but it should only be one part of your portfolio or trading activities…

For example, you may be trading with the DAX, USD/EUR for a regular source of profits and income, so adding a small position of crypto currency is into that portfolio could be deemed as sensible.

Just don’t put all your eggs in one market so to speak… unless of course you are a specialist in that one market… some traders only ever trade the DAX, USD/GBP or the S&P for example and make amazing profits.

RECAP Bitcoin Trading Strategy Rules

Set the chart to the 4 Hour candles

Enter long, BUY, when the 6 moving average crosses up over the 18 moving average.

Go Short, SELL, when the 6 moving average crosses beneath the 18 moving average.

Bitcoin Trading

Simple Trading Rules

The above rules may seem too simple to ever be profitable but I can assure you that moving average crossovers have accounted for some of the biggest wins and profits I have ever seen from trading the financial markets.

Don’t believe me? Just ask Vince Stanzione if moving averages can really help you make money trading!

Paper Trade Bitcoin

If you are new to trading then you really need to test the Bitcoin trading strategy out first by paper trading it, preferably using a good demo account with one of the reputable spread betting firms.

You see, it’s all very easy for you to see the wins and losses like I have shown above.

However, it is far harder than you may think to accurately place a stop loss so that you are kept in the trade, but are safely out the market if there is a crazy price move.

Plus you want to avoid your stop losses getting hit and concentrate on closing a trade manually when you are Bitcoin trading. Especially if you can see that the price has gone against you. There is no point in waiting to get stopped out when the stop losses requested to trade Bitcoin are so huge.

Add into that the fact that your own personally psyche will determine if you are able to let your profits run or take pre-determined profit targets as I have already explained.

If you have already had some experience with spread betting and trading, it is still advisable to tread cautiously when you first start to trade Bitcoin.

It’s better to learn well and earn smaller than it is to charge head first into the trades and lose big.

As with all trading, it is patience and discipline that also play key factors in how profitable you will be overall… that and a sound banking strategy too.

Bitcoin trading is no exception to the rule.

Demo Account

Most spread betting companies offer a demo account. IG offers a good one and you can use their charts and learn the trading ropes directly on their platform.

Using a demo account is a good way to become accustomed to spread betting and trading. But don’t get to cocky when you start to win… new traders often find it a different game all together when they start to trade with real funds.

Of course you can always just watch the price and monitor your results. But by paper trading like this you are not getting the real vibe of trading.

If you are not using a proper trading platform like the spread betting companies can offer, you’ll then have to learn how to do that once you do decide to spread bet with real funds. You may as well start out with clear intentions and get things right from the start. Plus, all the demo accounts are free to use and open.

So there you have a good strategy for cashing in on the Bitcoin trading rush.

You won’t win every trade you make… that is just fairy tales. But you will win more points than you lose over time by following the simple crossover rules and using the 4 hour charts.

My New Spread Betting Course is Live

Rachel trader spread betting course

My new spread betting course has launched… and a spectacular launch it was indeed.

This morning, only a few places for new students remain.

Another Winning Spread Betting Trade

This is a screenshot of my trade on the morning of launch day.

260 points profit, [that actually peaked at 340 points].

The thing is that this is not a one off fluke. This is a normal occurrence. A standard trade setup if you like.

There is nothing to stop you learning to do the same.

What’s more is that this trade was made using just one of the strategies from the spread betting course.

Is my Spread Betting Course for you?

If you want to learn how to trade over the medium term and see your results compound from month to month, then I say wholeheartedly YES! My new Spread Betting Course will be ideal for you.

The strategies included in the spread betting course are fantastically profitable, easy to implement and also easy to learn.

You don’t even need a huge trading bank to get started either.

There’s no high octane promotional jargon to plough through or consider to gain access to my course. There is a simple sales page here that I have written myself, detailing the course and introducing me to those that have not heard of me before.

That said… I only have a few spots left before all the places are taken and then the offer will be finished. So the page will be surplus to requirements very soon anyway.

If you want to join me and learn how to trade in what is essentially like a one to one environment, then you need to act quickly… Really quickly! You can read more and order here.

 

Bitcoin to Reach $50000

Bitcoin to Reach $50,000

I said in my last post that I’d give you my reasoning behind bitcoin to reach $50,000+

So here is my view on why I think we will see bitcoin hit these heights.

Through all the bitcoin mania at the moment, most people who are now investing in bitcoin [and it’s still minuscule], have little if any idea about the true value of bitcoin and what it means.

The minute I heard of bitcoin and mentioned it, I thought to myself that this could be big.

Of course I wish I had followed my hunch and bought loads of coins back then. But that is not the point I’m trying to make.

The point is that back then I thought…that’s very interesting… a way to take payment or move money for anything to anyone.

That is the true value of bitcoin. Being able to transfer wealth from anyone who is anywhere to someone else without using traditional methods like banks, or if you like a middleman.

Bitcoin is the first standalone global currency. It speaks all languages. It is also pretty hard to trace.

Rise of the Bitcoin

The reason that bitcoin grew at such alarming rates is for one simple reason. Crime!

Around 3 years ago, the main use for bitcoin was [and probably still is at the moment] to trade drugs online.

This trading of drugs on websites like Silk Road, then, fuelled the rise in bitcoin’s price and helped get it noticed by the masses which in turn led it to becoming more mainstream.

Now however, there are other crypto currencies that are completely anonymous and I assume criminals will soon start to opt for those over bitcoin. This will again drive the prices of those cryptos higher.

For now though the general public and masses are just about to start learning about bitcoin.

Everyone will Accept Bitcoin payments in Due Course. It will change the traditional FIAT monetary system for good.

Bitcoin to Reach $50,000

Once Amazon accepts bitcoin payments [which I think will be very soon], this act alone will make the statement to the world that bitcoin is “Safe”. When that happens, I think that the bitcoin bubble that everyone is talking about now will seem more like a snowflake at the start of a gargantuan snowball.

In all honesty, I think that bitcoin to reach $50,000 is still conservative.

How to Invest in Bitcoin

If you have never invested in crypto’s then the first port of call is to get an account with a trusted broker. I have used bitpanda to buy bitcoins.

When I buy other crypto’s I send the bitcoins from bitpanda to bitfinex and buy them using the bitfinex platform. This seems to be the easiest way to do things.

You can then store those purchased coins in a paper wallet for security.

Bitcoin is Still at Very Early Stages.

You might find that the bitcoin exchanges are slow and even crash regularly. This is unfortunately the way it is at the moment. There are way more customers than there are sales and tech assistants at the moment.

Look at it like this. Herds of customers trying to get into the apple store because they have announced a lightning sale, for one day only and everything is £50… it’s going to take time to get to the front of the Q isn’t it?

That is sort of how the bitcoin exchanges are at the moment… overloaded.

However, this gives you time to start off small and learn how everything works and go from there. It may seem complicated at the moment, but so was flying the first plane.

One day very soon, you’re going to have to learn how to pay with bitcoin and how it all works. You may as well start today.

4 Hour Trading System

 

4 Hour Trading System – 74 bets, 54 winners, 20 losses 73% Strike rate

 

Here is the 4 hour trading system that I promised you in my last post.

 

This system is so simple to use you might not believe that it could even be so profitable. But the results that I’m about to share with you will clearly prove otherwise.

 

I had noticed that there may have been an opportunity to develop some kind off trading system using 4 hour candles way back at the beginning of the year, although I just didn’t have the time to follow up.

 

However, due to the house move stalling I have actually had a chance to finish of the test and give you some results.

 

What is the 4 Hour Trading System?

 

The 4 hour trading system is a binary trading system that relies on following the trends that the 4 hour candle charts make.

 

The reason it works so well and is so simple is that it is actually trend trading in nature and the trade entry couldn’t be easier to identify.

 

Before I go into detail, let me share last months results with you.

 

4 Hour Trading System Results October 2017

 

Now these results are only using the 6 major currency pairs. I had tested the system on some of the lesser traded pairs with similar results. However, to keep things as clear as possible we will only use the AUD/USD, EUR/USD, GBP/USD USD/CHF USD/CAD and the USD/JPY

So, out of the 6 major currency pairs, there was a total of 74 trades. Of these, 54 were winners with 20 losing trades.

This equates to, 74 bets total, 54 winners, 20 losses = 73% Strike rate, well just a smidgen under.

To work out your strike rate, you divide your total number of winners by the total amount of trades/bets and the x by 100

As you can see, the system generates quite a few trades. So out of the 22 trading days in October 2017 that gives us an average of just over 3 trades a day.

So, if you are looking for a reliable system that gives you a good few trades a day, with an awesome strike rate, that you can start trading with minimal investment, then my 4 hour trading system might be just right for you.

 

Why am I Giving You this for Free?

Well, I wanted to give this to you at Christmas as a thank you for reading my blog. Then it occurred to me that if I gave it to you at Christmas you’d probably not start using it until well into February once you had giving it a good test.

So to give you the heads up and the best chance of starting 2018 with a winning formula, I thought I’d give it to you now.

And as you hopefully already realise, I want to over deliver and give you the absolutely best chance of making money from trading. I genuinely mean that.

This system is also so easy to use that it won’t take up too much [if any] of my time giving support.

Other trading systems that I may offer you, like my binary trading package, are more technical in nature and offering support is to be expected, however time consuming it may be.

Also, products like my trading system enable you to set your own hours to trade and also set alerts as and when to trade. So the whole thing is more complex.

So enough talk… here are the 4 hour trading system rules. I do not know of this strategy being published online anywhere. However I must state that I do not stake any claim that it is solely my creation… although it probably is.

 

4 Hour Trading System Rules

You are looking for 2 four hour candles that are of at least the same size or ideally increasing in size.

The candles need to be trending… Do not try to trade sideways markets.

Good times to enter are therefore obviously in clear trends, after a correction or at reversal points.

Also make sure the candles that have formed are of reasonable size in points. Some currency pairs differ in they way that their points are calculated, but as a basic guideline, you want your first 2candles to be at least 8-10 points in size.

 

4 Hour trading strategy

 

Once you have identified the candles, you then open a trade for 4 hours on binary.com at the very start of the opening 3rd candle.

That is the system in a nut shell. The reason that it works so well is that you are just jumping on to the trend after it has been confirmed by the 2 previous 4 hour candles.

If you didn’t want to do any other analysis then the above rules will serve you well enough.

However, if you want to spend a little bit of time trying to increase strike rates by finding better entry points then here are the price action rules that I have been using.

Price action trading.

As you can see from the following chart images, I have not used any technical indicators at all. The charts are completely clear, they are naked.

This means that you are only using the price to identify the market direction.

What we can use to give some extra conviction to our trades though are candle formations that signal a change in direction or even a continuation after some consolidation or correction. Using support and resistance lines are also super effective.

rachels 4 hour trading system

 

Looking at this zoomed in section of the USD/JPY the results and trades of the 4 hour trading system can be interpreted like this.

Please note…. These are my own personal views on what I see happening. I am not stating these candle entry’s as fact. The best, clearest most perfect trading setup in the world can still go belly up.

 

The First Trade

The first blue arrow you can see on the chart signifies a winning trade on the 6/10/2017 [it looks like it is above the 4th candle in the sequence].

The previous candles in the sequence and their price movement I have evaluated as this…

The very first black candle in the sequence seems to have been formed at a resistance level, thus the price has started to move back down.

The second black candle has had a lot of pressure from the bulls driving the price up during the formation of the candle. This is clear from the long wick. However, the bears have won the battle and pushed the price right back down to form another downward bear candle. This suggest to me that there is plenty of selling pressure and that there is a good chance of the next 4 hours seeing the price move down further. This is a good place to open a trade ‘lower in 4 hours time on binary’. The price moved down for the next 8 hours.

The Second Trade

Our next trade occurs on the 10/10/2017

 

The candle before the first black candle is what is considered a spinning top. These spinning tops can often mean indecision in the market, a continuation of trend after a price correction or even a change in direction depending on where they form.

The following 2 black candles are clearly quite bearish and we can assume that the price will continue moving down.

We enter a trade at the very start of the candle that is after the close of the second long bear candle.

This trade finishes in a another winner.

 

The Third trade.

12/10/2017

 

I didn’t have any reason to doubt that this setup qualified as a trade.

The first black candle engulfs the preceding white candle and also seems to have come up against and met a resistance level as did the previous white candle.

The second candle continues in the main down trend direction. The candle has just about a longer top wick than a bottom wick and this means to me that price is likely to continue down. We will open our trade at the start of the next candle.

The third candle actually doesn’t behave like we think it should and we lose the trade.

The Fourth Trade

18/11/2017

This trade is very clear to me. There has been a strong support level around the 12.1 / 12.2  area. This coincides with the formation of a doji candle and then a spinning top which is the start of our sequence.

The next candle after the spinning top is a huge bull candle that clearly outsizes the spinning top.

I trade at the start of the next 4 hour candle. The result is another big bull candle and another winning trade.

Basic price Action Trading

As you can see, I have only used some basic price action analysis to confirm to me that I should place a trade.

If you can’t fathom price action [although you really need to do so to become a successful trader] you can always just place the trade on the start of the third 4 hour candle if the previous 2 candles are increasing in size.

Doing so will give you more trades, but will also increase both the amount of winners and losers. Although overall results will not be to far from the results using some basic price action analysis the strike rate does dip.

 

Why is this system so effective?

Simplicity… that is one of the key components of this system. In fact, it is so easy to use that a few minutes evaluation of a chart is all that you will need to do once you get the hang of things.

It’s important to understand that you do not need to try and make this system more technical in nature to make it work. You are simply jumping on the trend that is already in place.

The size of the 4 hour candles is [in their most basic form] all that you need to identify a trend and potential trade.

Setting Reminders

Realistically,  you can trade in just the most liquid trading hours by setting alarms on your phone every 4 hours.

As an example, if the chart package you use coincides with candles forming at 8 am, 12 noon, 4 pm and 8 pm…. Just set an alarm on your phone that goes of every 4 hours at a quarter to the start of the candle.

So 7.45 am, 11.45 am, 3.45 pm and 7.45 pm.

This then gives you enough time to get to your PC or get on your mobile and take a look at what is happening with the charts.

Using Alerts on IG

You can set trading alerts on the IG platform that can notify you of certain movements and indicator signals. I cover this in detail in my binary trading course.

Basically though, you can set up an alarm that will notify you of any continuous 4 hour candles.

For example, if you are trading the USD/JPY you set an alarm on the platform by clicking alerts in the top right hand corner.

Click add alert and then set up the continuous candle alert.

The Alerts will then be emailed to you or pushed on your Iphone.

This image beneath is taken from IG Charts. Adding an alert is very easy to do.

4 hour trading system

 

More Charts and Results

Have a look at these other 4 hour charts, these are all of the major pairs charts that I analysed last month and all the wins and losses that I encountered.

If you take time to really study them you will probably, criticize me on some of my entry points and price action analysis.

That however is actually a good sign… it means you are truly considering the movement of the prices. We are not all going to agree on where we think the price is going to go. That is what makes the market in the first place… the bulls and the bears.

 

Four hour trading system trading 4 hour charts trading four hour charts four hour charts for trading 4 hour chart trading

To recap

  • Use 4 hour charts
  • Trade the 3rd candle if the previous 2 candles are at least the same size or ideally increasing in size.
  • Use simple price action, including support and resistance levels and candle formation to fine tune entry points.
  • Don’t underestimate how simple and effective this system is.
  • Don’t overcomplicate things

 

Paper Trade Until the New Year

So from here until the New Year I suggest that you paper trade the system so that you can get to grips with the selection process.

You can open an account at IG or anywhere that you can use some good reliable charts if you haven’t already.

Don’t break the rules and just do what I have outlined in the 4 hour trading system rules.

Keep a spread sheet to record your results and you can get a clear idea of what is going on in the blink of an eye.

Remember that some of the currency pairs will perform better than others. What counts are the result overall on average each month.

To my knowledge this system has not been created or published anywhere else. Please feel free to share and give me a mention if you can. #Rachelthetrader

Fibonacci Retracement Trading

I have [as always] been looking at different trading ideas… and one that can be used with other indicators to create good short term trades is using the Fibonacci retracement tool on your charts.

Using Fibonacci retracement trading to predict price movement can be very effective as a standalone system.

However… if you add a MACD into the equation and use some simple reversal candle set-ups you have a complete system.

For best results you will want to use at least the 4 hour candles or the daily candles.

Fibonacci Retracement Trading

 

To draw the Fibonacci grid, you will need to go to your chart and go to drawings. You then just select the draw Fibonacci Retreatment.

 

fibonacci Retracement trading

 

Then just drag the grid from the most recent low to the most recent high or vice versa.

 

You can see from the next diagram of the AUD/USD that the most recent trend has seen the price move up. This means that we draw our Fibonacci retracement from 100% at the low of the trend to the 0% at the high of the trend.

 

If the trend was down, we’d be drawing the grid from the high 100% to the low 0%

 

Now once the Fibonacci retracement grid is in place we are looking for a reversal candlestick pattern forming at the 50% level or the 61.8 level.

 

You can use the 38.2 level but you will get more false signals.

 

The 50% level has an amazingly uncanny knack of rebounding from this level, so it tends to be the level used by most traders.

 

If the retracement goes past the 50% level and does not present a reversal candle set-up you will then wait to see if there is a reversal pattern formed at the next level.

 

As you can see I have drawn the grid to illustrate how this strategy works.

 

trading fibonacci

 

So I have drawn in the Fibonacci grid from the recent low to the recent high.

 

I now wait to see if a reversal pattern forms at the 50% level, if not I will wait until a reversal pattern forms at the next level.

 

Now if we scroll forward we can see what happens.

 

Reading The Chart

 

We can see that there was no reversal pattern at the 50% retracement level. So we wait and see what happens at the next level.

 

Here at the 61.8 level you can see that the price action stops and there is very little movement. This is combined with a congregation of small doji, hammers and pinbar candles [highlighted and in line with MACD crossover].

This is notifying us that a trade may be about to present itself. You can also read more about candle set-ups here.

 

Also you can see that the MACD has given a crossover signal to further verify a change in market direction.

 

Just after the MACD crossover we get a huge bull candle that signifies that the price is reversing and is going to resume the upward trend.

We then enter our trade. A spread bet that nets us a nice stress free 150 points + profit or you could have made a binary bet.

fibonacci retacement

 

So to recap.

 

  • Draw your Fibonacci grid from the recent high to low or low to high.

 

  • Wait for the retracement to reach at least the 50% level and  confirm the reversal with a reversal candlestick pattern. If no pattern forms, then wait the retracement to reach the next level and again confirm reversal with candle patterns.

 

  • Finally, the last confirmation to enter a trade is that the MACD has made a crossover.

 

Trading price action

 

Once you get the hang of things you’ll be able to use just what you see on the charts to predict price movements.

You will be able to remove the MACD and if you get really good then you will be able to gauge the Fibonacci retracements without the grid.

 

Doing so is trading pure price action. A trait that is well worth acquiring.

 

This [trading price action] is especially useful when trading currencies.

 

Currencies tend to move in very noticeable patterns over time.

 

Here are some more charts that are approaching Fibonacci retracement levels.

 

See if you can predict the next price movements? All the charts are from this September 2017.

Fibonacci strategy

FX-EURNZD

FX-NZDJPY

It’s not so important that you get the results right at this stage. It is more important that you see how the method works and get use to identifying the set ups.

You can see the results beneath. I have removed the Fibonacci grid so that you don’t get confused.

Trading FX-EURJPY

FX-EURNZD

 

FX-NZDJPY

It’s not Complicated

How did you get on? There is nothing complicated to this type of trading, most of it is mechanical so guesswork is eliminated.

The good thing about learning to trade like this is that as I have already mentioned, eventually you will be able to eliminate all indicators if you learn well and wish to do so.

The key benefit from having a naked chart is that you are then reading the price action… the price does not lie.

All chart indicators are lagging. So even though the information an indicator may give you can be useful, it is always dated. And it is not always as clear as the charts above.

Look at this chart of the USD/MXN. Using price action and candle patterns we can see that after a down trend we then meet the same resistance again and a clear engulfing pattern is formed.

By reading this, we then enter on the opening of the next candle. By doing so we get into the trade far earlier than the indicators suggest we should.

If we had waited for verification from both the Moving Average and the MACD then we’d be getting on to the trade the following day or at least 20 ticks later.

FX-USDMXN

In Conclusion

There are many benefits from learning Fibonacci retracement trading, and the reversal signals can be very accurate when combined with candle patterns. It is also a good way to start learning to read the price action rather than to keep relying on lagging indicators.

How to Trade – A Beginners guide to Spread Betting

How to Trade.

Learning to trade from September to April is one of the best times of the year to start your trading journey.

The markets tend to spring to life and start trending one way or another come September.

And if you’re new to trading, then learning when the markets are at their most liquid can make the whole process far more enjoyable.

Where to Begin

The biggest challenge to face new traders is just where to start.

Getting duped into the wrong trading style for your own strengths can result in many traders that may have had promising trading careers cut short.

It makes little difference how much you paid for a course at the outset. In the thousands or under a hundred quid… if the style of trading isn’t going to suit you personally then you’re creating more hurdles before you have even started paper trading.

 

How to Trade 

It took me a long time to find and decide on the course that was ultimately going to start my trading career.

And even after that, there were many mental obstacles to overcome.

To save you a lot of time and trouble here’s a quick heads up on some of the best reads, quizzes and videos on how to start trading… and what’s more, they won’t cost you a penny.

The Best Starts for New Traders

Want to know if trading is for you? Take the trading psych test first

Or this one if you fancy changing things up a bit

One of The best videos on Trading Phycology

If you have never heard of Mark Douglas then here’s a real treat for you…Mark is the undisputed king of trading phycology and his book trading in the zone is a must read for all serious traders.

Here is one of the best videos on trading phycology you’ll ever see…

Strategy Testing

Try testing your strategies out first on one of the trading simulators and from there you can open one of the good demo accounts with a spread betting firm.

Stock Market Game

If gaming is your thing then why not learn to trade with one of the best stock market trading games around? I haven’t ever played this but have heard of it regularly over the years.

You can have a look at Wall Street Survivor or one of the best forex trading apps for Iphone here

The Best Free Trading Resourses

It is difficult to say what are the best free guides available when I have already written so many awesome tutorials for you J

However, if you have got your phycology game plan down then here are some good places to start learning to trade.

A Complete Beginners Guide

The basics of how to start trading and spread betting made as simple as possible.

Here are all the basics of placing your first spread bet on the IG platform.

How to Trade – A Beginners guide to Spread Betting

Candlestick charting

This website has everything you’ll ever need to know about chart patterns. If you’re trading intraday then this site is invaluable.

Trading Support and Resistance Levels

A simple way to trade using support and resistance lines

How to trade the DAX German 30

The German 30 DAX is one of the most heavily traded markets… this easy to use system is a great place to start trading

How to trade using Moving Averages

A beginner’s guide to moving averages 

And how to trade using a triple moving average

 

Free Books on How to Trade the Markets

Some of the best books on trading that I have read

How I made £2,000,000 on the Stock Market: here 

Reminiscence of a Stock Operator HERE 

Extraordinary Popular Delusions and The Madness Of Crowds HERE 

Trading Parables HERE 

 

Demo accounts

IG offer the best demo account and their charts are some of the best free ones

If you’re looking to trade binary options then the only place to go is binary.com

 

Whilst these links I have given maybe familiar for the some of you, Most of you won’t go far wrong with laying great trading foundations from reading and learning from the sites I have listed.

 

Decide on a Trading Style

As already mentioned, decide on the trading style that is going to suit you personally. Are you a slow steady trader that is happy with longer term trading and funds that can be tied up for years at a time? Or are daily or weekly profits what you are looking for?

This area needs honest and careful consideration if you are going to give yourself the very best chance of trading success.

Use the coming months to get a trading plan together to learn the ropes and you could well be on time to trade the Santa Rally should father Christmas arrive…