Forex Trading System

We are trend traders and trade a Forex trading system that is only buying pullbacks in up trends and selling rallies in downtrends. However, when trading a trend Forex trading system the first thing that you need to do is define the trend and we define the trend as by being an uptrend when the True Trend is positive and is a downtrend when the True Trend is negative.

True Trend = indicator which determines the greater trend of the currency pair being traded.

Trend Following Trading System

The Conquer is a swing/position trading system gains short term pips while in the process building into positions by allowing portions of winning trades to run and compound together increasing profits to ride the whole trend. Trades are only entered in the direction of the current trend defined by the true trend indicator when the Stochastic is oversold/bought against the trend creating a rubber band snap back effect as prices resumes back toward the trend.

The consists of 2 separate trading methods that together make up the Forex Trading System; the zero line cross & the drop in.

The amount of trades vary form week to week. We are trading eight currency pairs and usually when setup begin to trigger they trigger in groups. For example, with all pairs being extremely overbought/sold for the last ten day in the direction of the trend we have only had three trades this past week.

Ten days ago we were busy with trades (which have since taken profit and pieces of those trades ares still open and running with stops at break even (entry points) or existing trades locking in further profit). These trades have produced (with open trades) over a 8.5% return in those ten days - which is excellent! Yearly we are looking for mid-double digit gains with very low draw down (less than 10%).

Trading Time

The Conquer is traded off of the four hour time frame (H4) and the eight hour time frame (H8).

The 4 hour time frame can have a possible system signal period six times per day. You need to be available for at least three of the signal periods: 0:00, 4:00, 8:00, 12:00, 16:00 & 20:00 GMT.

The 8 hour time frame can have a possible system signal three times per day: 0:00, 8:00 & 16:00 GMT.

0:00 GMT = 8:00pm EST

Both time frames are traded on eight currency pairs (plenty of system signals) and there are email and sms alerts to help you know when there is a new trade.

System Money Management

Along with our entry and exit rules we place a high importance on our money management. This is actually the most important piece of our forex system. Our position sizes and risk to reward ratios. If a series of trades stop out our loss is minimal and because of the high risk to reward we are using on each trade (ranges from 2:1 to great than 9:1) we know it only takes a couple of winning trades to recover from any draw down we might experience and expect to experience as is normal for all Forex trading systems. In other words, we expect to have losses and our trading plan is set accordingly so that those losses are small and we can recover quickly and move onto new account highs.

To sum it up, I have no idea what is going to happen in the markets ever (and I make a living trading!) so I am just following my All of the work went into developing the Forex trading system in order for me to be able to simply follow the rules.