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Understand And Follow The Daily Forex News & Analysis Closely............... p. 28
Forex-U-Turn..................................................................................................... p. 42-44
Have you ever entered a trade just before the market did a U Turn?
Did your trade go into profit by a few pips then turn on you? Well,
unfortunately, this has happened not just to you, but to lots of other
traders, too. And if you don’t have the correct tools and know how to try
and prevent this, your trading activities may be doomed to fail!
But there is good news, now with the Forex-U-Turn Trading system,
if used properly you can STOP this from happening to you more than
70% of the time. You see, instead of buying 10 to 25 pips near the TOP,
Forex-U-Turn will prevent you from those critical errors! Instead, you’ll
be waiting patiently for the U-Turn to form on your chart so you can sell
near the TOP instead of buy.
Well, you’ll just have to keep on reading to believe it. Hi… my name
is Jason Sweezey and I have been actively trading the markets since 2001
and I have seen a lot of different ways to trade the market, and in most
circumstances, over and over again I see useless trading systems that
were initially developed to make the authors money and make traders
lose money so they will keep buying the “next best trading system” each
week!?
Week after week we are bombarded with offers of the next best way
“How To Trade The Forex Market” and it’s sad to say that over 95% of
what’s being offered is downright Utter TRASH!!! Some of you may
know me from my last trading system called 4XPipSnager, and without a
showdown of a doubt, a lot of you know just how effective that system
is? In fact, I send proof on a daily basis to my Snager clients from all
over the world showing them the pips to be made.
You can use it on the Forex Market. You can use it on Futures, or,
even Stock. The only time frame I would try and stay away from is the
M1. Not that I am saying that it won’t work on there, too… It’s just more
accurate on higher time frames … meaning, the higher the time frame –
the higher the probability of the trade being successful!
So go and grab your favorite beverage and snack and get ready to
learn how to trade more accurately by starting to sell where you used to
be buying, and to start buying where you used to be selling… But first
let’s install the Meta Trader 4 Platform:
Next you will choose the country you live in then click next…
Next you will check off that you agree to the terms of the agreement…
Then next you will click on yes to install the Meta Trader 4 Platform, but
as you can see I already have it installed so no need for me to continue…
Double-click the file name and it will open using your unzipping utility.
You should see a window similar to this, displaying the two files inside:
1. Forex U Turn Course.pdf (the file you are reading at the moment)
2. Forex-U-Turn_Quick_Install.exe
The quick install program will open and display this window:
In the following window, you need to locate the folder on your computer,
where you installed MetaTrader.
Then you should look for this folder under the C:\Program Files foldoer,
then click on MetaTrader – Think Forex folder to choose it.
1. As with almost any computer software, your license for the Forex U
Turn is valid for use on 1 computer only.
This means that once you install the Forex U Turn on a computer, this
will be the only computer you'll be allowed to use the Forex U Turn on.
However, if you need to run several MetaTraders, you can do so without
limitations, provided all MetaTraders are installed on the same computer.
2. If for some reason you applied for a refund of your purchase, your
license will be automatically revoked and the Forex U Turn will
automatically stop working on your computer. It might not stop
immediately, however do not expect the Forex U Turn to operate for
more than 1-2 days after your purchase was refunded.
In the license code box, input your Order Number (from ClickBank) This
number serves as your license and proof of purchase.
If you don't know the order number, check your inbox for an email from
ForexCodeGuard@gmail.com. This email is sent to you immediately
upon completing your purchase.
MetaTrader will now open and you can start using Forex U Turn.
Since the Forex market has no central exchange like the Futures
Market or the Stock Market. So what they have done is made up what
they call an “Inter-Bank.” Where all the Central banks from all over the
world exchange currencies over the counter for example: Exchanging
Canadian Dollars for US Dollars ect…
Notice how they are all paired up with the JPY = Japanese Yen? There
are many other Japanese Yen exotic cross pairs come to think of it…I
guess they like pairing them up with the Japanese Yen for some reason…
Now let’s talk lots and pips… In the Forex Market they call order
sizes in lots. For example, $100,000 United States Dollars paired up with
let’s say Euro Dollars would equal to 1 full lot. Each full lot would equal
to $10.00 per pip. If you were trading in mini lots and let’s say you were
trading 1 mini lot that would amount to $1.00 per pip. I bet you’re asking
what does “Pip” stands for? It stands for “Point In Percentage” because
for every 100 pips equals to 1 penny in that currency, so one thousand
pips is equal to 10 cents out of one dollar.
So if you traded 1 mini lot 0.10 in lot size and you made 97 pips, you
would have made $97.00 in profit. If you were trading 1 full lot 1.00 in
lot size and you made 97 pips, you would have made $970.00 in profit.
In the Futures Market instead of pips they call it points. In the Stock
Market they call it in the name of money like Joe Bill Stock has gone up
15 cents today. But in the Futures Markets you will buy and sell
Contracts of Sugar or Corn, with expiring contract dates, and in the stock
market you can hold onto that Stock for as long as the Company who you
invested in is still in business. But out of all the Markets, the Forex
Market is the biggest and BEST Market out of them all! And the reason
is simple, Forex gives YOU the most opportunity because of the huge
swings Forex makes each year.
Therefore, because the Forex Market has the most volume traded with
over 3 Trillion Dollars traded on a daily basis! Yes folks I said 3 Trillion
Buxx!!! A lot of traders have left the Futures currency Market and the
Stock Market because they can’t get the large order fills in those
instruments like they can with Forex. Plus just the name “Forex!” is real
sexy isn’t it? lol
You see, if you threw in an order to buy 100 contracts of the Euro
Dollar for a example you may get 30 contracts filled at one price and 50
filled at another price and the remaining 20 filled at yet a higher price.
Why? Because there are NOT enough traders to take the other side of
your order. In Forex, there are so many huge Institutions trading from all
over the world, that there is nearly always someone willing to take the
other side of our orders like 1000 lots or even 10,000 lots of currency.
You see, what traders fail to realize is that the “Fear and Greed” is
what makes us fail and NOT the system itself. We have Doctors and
Lawyers who feel that the BIG money they make in their professions is
not enough to satisfy their need for GREED and they think that just
because they went to Law School or Doctors University that they have
the intelligence to ‘outsmart’ the markets.
Well many of them have come to realize that it does not take smarts to
win at trading. Rather, it takes sheer utmost discipline instead. And, it
takes simplicity and a good trading system to succeed. Unfortunately,
when a lot of these highly educated people come to the market they
usually have big trading accounts like $50,000 to $100,000 to play with.
They make the mistake that the more money they have the easier the
success will come…
This is why I want to go over the most important thing first before we
get into the system itself. Can you guess what that is? If you guessed
“Money Management” or “Leverage” then you just hit the nail bang on
the head!
Just because one lot [100,000 units] of currency only requires as low
as $250 {400 to 1} as a minimum margin deposit, it does not mean that a
trader with a $5,000 in his or her account should be able to trade 15 to 18
lots.
Another form of “over trading” is to get in and out too many times in 1
trading session. If you are a scalper kind of trader, then you should only
look to do 3 trades maximum.
A lot of traders really stumble to figure this out properly, I’m not
perfect! I too had great difficulties to try and figure this out properly and
to try and explain it is not easy! So let’s get back to the calculation
folks…
They trade like 0.10 one mini lot thinking this is ok when in reality if
you lose 100 pips if the price hits your Stop Loss you will in fact lose
10% of your account instead of 5% because it is $1.00 per pip so 100 X
$1.00 = $100.00 and, if you want to do a consistent 5% calculation as
your account increases or decreases you must calculate the number of
pips of the Stop Loss each time by the amount in your account by 5%.
Now let’s look into another part of trading that is very misunderstood
in more ways than one…
For the sake of this explanation let’s say we are using a 100 pip Stop
Loss and a 100 pip Take Profit which equals 1 to 1…
Okay let’s try a 2 to 1 ratio where the Stop Loss SL is 200 pips ad the
Take Profit TP is 100. The same applies it’s just the numbers are
different. So on 8 of the trades we win 800 pips and then on 2 of the
trades we lose 400 pips.
So think about this now… Is this actually 80% in the terms of pips
made? If you answered ‘yes’ to this question you are wrong! You see, in
reality, you made 800 pips but you lost 400 of those 800 so what are we
left with?
The answer is 400 pips… so doesn’t this sound more like a 40% win
loss ratio than an 80% average win rate? Indeed it does my friends. 40%
is still winning in the markets but doesn’t 70% or even 80% sound
better? It sure does to me…
So now let’s do this in the best way possible and let’s reverse the win
loss average ratio. Instead, now we are going to use a 100 pip Stop SL
and a 200 pip Take Profit TP. For fun let’s see what we end up with…
If you answered ‘no’ to this question then so right you are! You see, in
this example you did far greater than in the last two examples above. In
fact, you made 1,600 pips but you lost 200 of those 1,600 so now what
are we left with?
So now what are we left with? The answer is 1,400 pips… so doesn’t
this sound more like a 140% win loss ratio than an 80% average win ratio
rate?
Indeed it does my friend, there is so many ways that traders have tried
to manipulate and fudge the numbers over the years trying to make it
U U
Think about this my friend… it only makes sense that if your win loss
ratio is greater than your lost pips you’re going to be ahead of the game.
And trust me, all trading is, is a game. And a lot of the time it’s played
dirty! “You really need to be on your toes when you play it?” Sorry I
went off topic here for a brief moment.
Like for example, 50 pip Stop Loss SL to a 200 pip Take Profit TP this
may not be achievable on a daily basis trading this on such small time
frames. On the EUR/USD pair we certainly don’t have the 200 pip
{ATR’s} Average True Range on a daily basis now do we?
So now that we covered the win loss ratio as far as the Stop Loss SL
and Take Profit TP is concerned let’s now take a look at what happens
when we add more positions as we progress when our account size
grows.
And say we were successful and we were winning 80% of our trades
with a 2 to 1 win loss ratio… in no time we would double our account
and make 100%. But and this is a BIG Butt! {Utmost Discipline
Needed?} What if we had a bad streak of trades which happens from time
Can you see the horrific consequences this can cause? For example,
we will be losing double the amount of money on a single trade which
can cause all your profits to be eaten up quicker than you could say ‘Oh
No!’
What took you 20 trades to accumulate $10,000 dollars can wipe out
all your profits made in just a small handful of BAD trades. So please be
careful when adding on to your position and remember to decrease your
lot size as you lose so the ‘Impact’ won’t be so painful!
To avoid a situation like this, simply trade the same amount of lots
from start to finish – yes it will take you a lot longer to grow your equity
in your account but you’ll be practicing strict money management
practices. Especially when learning a new system like Forex-U-Turn.
Now that we got that good old money management and leverage out
of the way, I want to talk about the news announcements that come out
on most days and how it can affect your trading dramatically!
It is not uncommon for news announcements that can cause 100 to 200
pip movements in a matter of minutes. Whilst this may sound appealing
in a profitable trade, but what if it goes against you? It can cost you
equally!
Practice this heavily with a demo account before ever entering with
real money on the line. If you are in a trade right before the news hits, it
is suggested to either tighten up your Stop Loss SL or simply just closing
out your trade winning or losing to reserve capitol.
www.forexfactory.com
U U
www.dailyfx.com
U U
www.bloomberg.com
U U
www.fxstreet.com
U U
You are waiting for those perfect setups. The better the setup is, the
greater chance of you winning the trade. If you are not winning between
70% - 80% of your trades, you need to step back and start waiting for
better setups.
The greater amount of indicators that agree with your potential trade,
the higher the chances you have of winning the trade. Remember, you are
mainly paid to wait, and the better you are at waiting for the perfect
setups, the more money you make.
But you also must understand that after all that waiting for the ideal
setup to occur, you then have to wait even more for that trade to mature
into a nice profit. So what’s the name of this game? Wait! Wait! Wait!
Then wait some more!
If you are scalping the Market for a quick 10 pips, sometimes it can
happen in just a few minutes, But in most cases, it can take 15 to 30
minutes for that trade to develop – and trust me, that 30 minutes can
seem like a lifetime has flashed before your eyes.
And, if you’re day trading or swing trading it can take even longer for
a trade to turn into a BIG winner! It can take hours upon hours to fully
blossom into a nice BIG FAT Win! And like I just said, that will feel like
a whole lifetime flew right by YOU.
You have to try your best to put your human impulsiveness aside and
put your discipline in full force. As discipline is the ‘key element’ to
becoming a successful trader.
Now before I actually show you the system, I want to get into “True
Support & Resistance” and how important it is in your trading…
But first, let’s find some good old support and resistance the good old
fashioned way… Common it will be fun…
So once we have the chart reduced in size we now can look to find
where price met more than once in the past and put a Horizontal Line on
the chart. The more times price hits a certain price level and bounces off
of that price level the stronger the support and/or resistance becomes…
Let’s take a look at this chart example so you can learn from it:
You see, traders use a lot of different moving averages to buy and sell
off of based on certain technical factors in the market, but from what I
have seen…here are the most effective moving averages traders use to
buy and sell off of when price either drops down and touches it, Or when
price retraces back up and touches it.
Let’s take a look at a chart so you can see what I am talking about…
add it to the Forex-U-Turn trading system. It’s only recently that I have
took a serious look at this…in the past like 3 years ago some trader was
going on about it and I just blew it off!
But now I can see the importance of whole numbers and how traders
alike buy and sell off of them just like the two other forms of support and
resistance I just talked about. You see, when price comes UP to a whole
number like 1.5700 for example traders see this as a major resistance
level and either look to take profits at this level or to sell at this level.
Not just whole numbers are extreme buy and sell points, but in-
between numbers have some merit, too. Meaning, 1.5150 is also
considered a point in which traders look to buy when price is coming
down to this price or sell when price is coming up to this price.
I like to call the whole numbers like 1.5400 ‘majors’ and the in-
between numbers 1.5450 ‘minors’ because the whole numbers are easier
to remember than the in-between numbers. It’s a lot easier to remember a
price to buy or sell at 1.2450 as apposed to 1.2434. You see what I mean?
And, if you take a serious look at these whole numbers you will see
price come up or down to them and stall some times and price will hang
around there for hours sometimes until traders decide to break thru it or
buy or sell off of that major/minor price level.
Let’s now take a look at a few chart examples to show you exactly
what I mean. Next we will cover exits of your trade positions…I have
few different ways to show you how to get the most pips possible out of
your trading.
And 1 more thing, as you can see when price is coming up to a whole
number you don’t want to be buying into 1.5300 and if price is dropping
down to a whole number you don’t want to be selling into 1.5100? Please
try to think in an opposite way my friends?
Once that decision has been made, STICK WITH IT! If the price
action turns around and goes back to the original direction if you get
stopped out, you can always re-enter the trade when the trading
guidelines have been met again.
However, once in a trade we have to try our best to manage it, so the
way I like to do it is to do the 50% move stop profit management
technique. Say we have a SL of 50 pips and we use a 2 to 1 win loss ratio
just like I explained in the chapter above.
So then when we see 50 pips profit which is 50% we move our Stop
Loss to break even, or even better, we move our Stop Loss to + 10 pips
so then for sure we are managing our trade. Plus once we do that we are
in a FREE trade as traders like to call it.
So let’s say after we move our Stop Loss to either break even or for a
small profit would if we are in a buy trade and price moves up another 15
pips in our favor but now we are at a major resistance level, or better yet,
a whole number – so what do we do? We analyze the situation and may
consider taking 65 pips or so off the table instead of risking giving back
all those 65 pips we just have accumulated.
So once you have moved your Stop Loss to the break even point you
can start to trail the trade by putting the Stop Loss 2 pips under the third
bar back from the current bar in a buy trade, or on top of the bar by 2 pips
if in a sell trade. Very simple way indeed… Let’s now take a look at an
example:
Yes even before 4XPipSnager ladies and gents… I just couldn’t seem
to find any value in it back then and just forgot about it until a few
month’s ago back in April is when I saw the ‘W’ to buy and the ‘M’ to
sell…it was so cool to see this POP OUT at me I tell you… Let’s take a
sneak peak to show you what I mean:
There are 2 different ways to go about placing your Stop Loss in the
correct spot. First let me show you the S&R Stop…where you simply
place your Stop Loss 5 pips below the current swing low in a buy trade,
or 5 pips above the swing high in a sell trade which is your closest
support and/or resistance level:
Now I want to go over another way to put your Stop Loss so the Big
Dogs known as the Central Banks can’t ‘Hunt’ for your SL… It’s real
simple, too. However, it does create more risk so you may have to adjust
your money management a tad loser to compensate for this way of
placing your Stop Loss Order…
All you do is simply find your closest support or resistance swing low
or high, or if a major support or resistance is near by we will use that
price level plus 40 to 50 pips for our Stop Loss like this:
Second you will wait for confirmation in the Forex – U – Turn filter
like this:
Second you will wait for confirmation in the Forex – U – Turn filter like
this:
The more tools you have to trade with, the better the chance you will
have at becoming a successful trader in a game that 98% lose.
Now let’s look at a few tight range examples to learn when to “Stay
Out” of the market:
If you are doing a long trade setup, all you have to do after you get the
alert is look for the ‘W’ formation on the chart for a Buy Trade Setup if
you’re trading the system “Aggressively!” Or, if you’re trading the
Forex-U-Turn Trading System conservatively you would simply wait for
the FX U-Turn filter in the bottom of the chart to confirm the buy trade
setup.
Lastly, I want to share with you some knowledge an old trader friend
shared with me about Technical and Fundamental Analysis…
Known as… “Buy The Rumor – Sell The Fact.” So in essence, we’re
all “Technically 100% Pure Fundamental Traders.”
I just want to say thank you to Mr. Tim Hannagan for his mentorship,
in years past as if it wasn’t for him to teach me nearly everything I know
about trading it would have came a lot harder than it did.
At first he didn’t want to teach me, {he said you don’t want to learn
the mechanics of trading?} but after bugging him for month’s on end he
finally gave in and took me under his wing. We all have to learn from
somewhere…trading or any other skill you master in life has to be taught
and I sure hope you were able to learn a few important skills in this
manual.
This EA is a very basic Expert Advisor as you can see by the Inputs
Tab above. This EA is best run on higher time frames like the H4 and
D1 and W1 for best performance results.
Stop Loss: Is the SL you choose but the broker will not see it.
Take Profit: Is the TP you choose but the broker will not see it.
BrokerStopLoss: This is the amount you will choose your broker to see
so they will not hunt down your Stop Loss.
BrokerTakeProfit: This is the amount you will choose your broker to see
so they will not hunt down your Take Profit.
Jason Sweezey
All forms of trading carry a high level of risk so you should only speculate with
money you can afford to lose. You can lose more than your initial deposit and stake.
Please ensure your chosen method matches your investment objectives, and
familiarize yourself with the risks involved and if necessary seek independent advice.
Forex-U-Turn is only in good faith “sharing information” and is not responsible nor
making any recommendations to invest in any currency or any other investment. Nor
is Forex-U-Turn responsible for any losses incurred by sharing any information and is
only sharing this information in good faith. Forex-U-Turn and its affiliates are not
responsible in any way for losses incurred. Forex-U-Turn © 2010-2011 all rights
reserved.
If you wish to publish or reproduce the materials in any physical or digital form or
use them for any commercial purpose, including display or Web page use, you must
obtain prior written permission from Forex-U-Turn. Be warned that every copy of the
Forex-U-Turn Trading System has been digitally signed and has been uniquely
formatted for easy identification in the event that any copy has been marketed,
distributed or shared on any peer-to-peer network without my permission, [Jason
Sweezey] Forex-U-Turn can quickly identify the guilty party.
Forex-U-Turn retains the rights to pursue both legal and civil retribution and will
exercise those rights in the event that any unauthorized copy is distributed without the
written permission from the author Jason Sweezey of Forex-U-Turn.