FOREX SYSTEM

Installation

Copy the template file ( .tpl ) to : windows/program file/metatrader/templates.

Copy the indicators files (.ex4) to : windows/program

files/metatrader/experts/indicators.

Restart metatrader.

Open 1H chart – any currency pair, then right click on chart and choose:
templates >>> #Forex System.

Here is how your chart should look like after installation:

Before you start, please download and install Metatrader 4 ( free ).

Trading Rules:

This system can be used with any currency pair, and it’s best to be used with
1 hour chart.

There are 4 indicators that you will need to follow:

1 - Arrows indicator ( red and blue arrows )

2 – Candles indicator ( red and blue candles )

3 – Bars indicator ( red and blue bars )

4 – Target lines

BUY Signal_

Blue Arrow + Blue Candle + Blue Bar

Stop loss 100 pips

SELL Signal_

Red Arrow + Red Candle + Red Bar

Stop loss 100 pips

Targets_

Pink lines = Targets for buy trades

Green lines = Targets for sell trades

Example :

SELL TRADE

Red arrow + Red candle + Red bar …. Target is the Green line
Another Example:

Buy Trade

Blue arrow + blue candle + blue Bar … Targets are the pink lines

Can’t be easier ;-)

Calculating Profit and Loss

Pretty much any online forex broker you choose will have

a trading platform that automatically calculates your

profits and losses for you. But I think it's important

to understand the basic math behind it. It's a good way

to make sure your broker is honest, plus it's just good

to know.

Besides, calculating profit and loss is really simple.

There's only two simple formulas to remember.

When USD is the quote currency (the second currency in a

pair), the formula is:

Profit = Price Change in Pips X Units Traded

When USD is the base currency (the first currency in a

pair), the formula is:

Profit = Price Change in Pips X Units Traded / Exit Price

Let's look at some real-life examples to help you understand.

First we'll look at an example when USD is the quote currency.

To keep things simple we'll assume the broker requires 1%

margin, which means you can trade $100,000 in currency for

only $1,000.

So let's say you are looking at EUR/USD which is currently

trading at 1.2518/9. You predict the euro will rise in

value against the euro so you execute a trade to buy euros,

which means you also simultaneously sell USD.

You buy $100,000 units at 1.2519. Remember since you are buying

you have to take the ask price, which is the second number in

the quote.

Your calculations are correct and the price rises to 1.2532/3.

You initiate a trade to sell EUR and buy USD. This time you use

the bid price, which is 1.2532.

Since you bought at 1.2519 and sold at 1.2532 your profit was

17 pips, or 0.0017. Now we need to convert that into real money.

So take your formula above:

Profit = Price Change in Pips X Units Traded

Or,

Profit = 0.0017 X 100,000 = $170.00

An easy rule to remember is that when trading a standard sized

lot (100,000) of a currency pair in which USD is the quote

currency, a pip is always equal to $10. 17 pips equals $170.

Now, let's look at an example where USD is the base currency.

We'll execute a buy of 100,000 units of USD/JPY at 117.22.

The price rises and we sell at 117.35. We just made 13 pips.

To calculate our profit we use the second formula:

Profit = Price Change in Pips X Units Traded / Exit Price

Or, Profit = .13 X 100,000 / 117.35 = $110.78.

Nice and simple.

Avoiding Failure in the Forex Market

Forex trading can be an incredibly profitable way

to make a living. The combination of margin leverage

and a low minimum amount required for trading make

forex trading ideal for small investors.

However, despite the opportunities for profit, the

majority of forex traders lose all of their money

within a year.

Why? Well I have found six root causes that can explain

why so many new forex traders fail:

1. Unrealistic Expectations. Too many novice traders read

about how easy it is to make money trading forex and

they just jump in and lose everything before they even

know what hit them.

Forex trading is not a get rich quick scheme. It requires

hard work and research to be successful. And even then,

you cannot expect every trade to be a winner. Even the

best traders lose on trades. The key is knowing when to

cut your losses and focus on the winners.

2. Not doing enough research. Forex trading is easy to

learn, but difficult to master. Experienced traders make

it seem so easy, but predicting currency prices is a

complex endeavor. And as a small investor you are at a

disadvantage. Large financial institutions have resources

that you don't. They may have an entire staff analyzing

the most recent economic indicators while you just have

yourself. You must be prepared to spend some solid time

learning before you can expect to win big.

3. Gambling instead of investing. If you think you can beat

the market without doing research and just picking currency

trades based on a hunch, good luck. I've seen people do this

and they usually pick a few winners and make some short-term

profits, but in the end they just get slaughtered.

4. Lack of focus. Depending on which broker you use, there

are likely dozens of currencies you can trade. But when you

are just starting out, think small. Pick a few of the most

popular currencies, such as the US Dollar, the Japanese Yen,

and the Euro, and focus exclusively on them. The more

currencies you trade, the more data you will have to analyze

in order to spot trends. Better to know a few currencies really

well than to know just a little about each.

5. Not having a trading system. There are literally hundreds,

if not thousands, of different trading systems available. Some

you will have to pay for, but many are free. Choose a system

that is right for you based on your capital, your goals, and

your personality. Without a system, you might as well be throwing

darts.

6. Not sticking to your system. Having a trading system is not

enough, you have to follow it through good times and bad. This

is easier said than done. Its easy to get greedy and go for the

big score or get nervous and get out too soon. You must follow

your system to determine both entry and exit points. If you

ignore them you risk missing out on a big upswing or being stuck

in a trade as it goes sour.

The best forex traders know that knowing when to get out of a trade

is even more important than knowing when to get in.

Choosing a Forex Broker

In order to trade in the Forex market you will need to

find yourself a broker. A broker is someone who executes

trades according to your wishes and earns a commission

on each trade.

But there are so many brokers out there competing for

your business it can be hard to figure out which one is

best. This article will give you as idea of what to look

for.

Transaction Costs. In the forex market, brokers are paid

via the bid/ask spread. There should be no hidden fees or

charges to trade. However, there may be additional charges

to access certain reports and optional services.

Obviously the smaller the spread the better. Pip spreads vary

by broker (and also by currency pairs), so shop around for

competitive rates.

Currency Pairs Available. All brokers should at least have the

big seven currencies ((AUD, CAD, CHF, EUR, GBP, JPY, and USD).
But if you plan on trading New Zealand dollars or Danish

krones, you should be sure that the broker is able to do so.

Immediate Execution of Orders. Currency prices are constantly

moving up and down and any delay in the execution of your

order can cut into your profits or add to your losses. Of

course its possible a delay will help you, but it never seems

to work out that way does it? Look for a broker that can

consistently execute your trade at the price you see on your

screen. An occasional delay is understandable, but if it

happens frequently find yourself a new broker.

Free Tools. In order to analyze currency prices, spot trends,

and plan entry and exit points you need access to charting

and technical analysis tools. Most brokers offer basic services

free of charge with an expanded array of tools for an added

charge.

Minimum Account Balance. As a small investor you will need a

broker that does not require a large balance to open an account.

Many brokers today will let you open a mini-account with as

little as $300.
Margin Requirement. The lower the margin requirement, the more

leverage you have. If a broker allows you to use 100:1 leverage,

that means you can trade $100,000 in currency for only $1,000.

You can use margin to rack up huge profits. But don't margin

yourself too much or you will find yourself wiped out fast.

Superior Customer Service. This is something traders often

overlook when choosing a broker and later regret it when they

need assistance. A quality broker should respond quickly to any

question you have. They should have knowledgeable reps available

24 hours a day by phone and email.

A User-friendly Trading Platform. Some brokers require you to

download a trading program to your PC in order to make trades.

Others let you make trades directly over the web. Pick a few

brokers out and sign up for a free demo account. You can trade

with play money while you test out their software and see which

one works best for you.

U.S. Government Required Disclaimer –

Commodity Futures Trading Commission Futures and Options trading has large potential
rewards, but also large potential risks. You must be aware of the risks and be willing to
accept them in order to invest in the futures and options markets. Don't trade with
money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell
futures or options. No representation is being made that any account will or is likely to
achieve profits or losses similar to those discussed on this web site. The past
performance of any trading system or methodology is not necessarily indicative of
future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN

LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT
REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE
RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF
CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING
PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH
THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT
WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

No representation is being made that any account will or is likely to achieve profits or
losses similar to those shown. In fact, there are frequently sharp differences between
hypothetical performance results and the actual results subsequently achieved by any
particular trading program. Hypothetical trading does not involve financial risk, and no
hypothetical trading record can completely account for the impact of financial risk in
actual trading.