Experiment Closed with 274% profit across 28 trades!

So, I have now closed out the 2014 live trading experiment. This meant closing two trades a buy trade at 1.63310 and its protective sell trade at 1.60900. That means a loss of 241 Pips or £482 which I have deducted from Decembers gains of £553.60 to give a net gain for December of £71.60.

In due course I will produce a full report on the experiment. suffice to say for now – we had 28 trades of which 27 (96.42%) were winners. Our overall gain was £2,747.82 or 274.78% on our £1,000 trading pot! The average gain was £98.13 which is 49 Pips.

Our biggest trade volume was 2.

I am now going to zero the account and run the experiment again for 2015 – see you then.

Tuesday 30/12/14

I am looking to get out of my latest trade. While I am sure it will do well this experiment ends in not much more than 24 hours. So, as soon as we get a profit I am out!. If you are following these trades then by all means stay in to pick up some more profit.

And there it is – out at 1.5562 for a profit of 7 Pips or just 5 Pips after the spread, a lovely £10.00.

Week 51 W/C 22/12/2014

Well, what you see below is it for this week. we closed the week with the new trade still open and a couple of Pips in profit.

Belated Merry Christmas.

Tuesday 23/12/2014

I am not that keen on going into a new trade so close to Christmas but I have decided to do so. I have entered a new buy trade of volume 2 at 1.5555 and have set a take profit at 1.56395 which is todays opening +50 Jeff’s line. This is trade No 27

Week 50 W/C 15/12/2014

As you can see below, we managed to get one quick and worthwhile trade in this week. It as a volatile week with UK inflation being lower than expected, UK retail sales exceding expectations, Oil going down below $60 per barrel and the Rouble getting close to collapse.

Just two weeks to go for this years experiment.

I expect the coming week to be quiet – hey,it’s christmas go and enjoy it!

Tuesday 16/12/2014

Trade 26 closed at 1.57200 for a profit of 75.8 Pips or 73.8 after the spread giving £147.60 profit.We now have a cumulative profit of £3,737.82or 273.78%

Monday 15/12/2014

Once more, in we go! I have a volume two buy trade on and entered at at 1.56442 as trade No 26.

Week 49 W/C 08/12/2014

A quiet week as I slow down in the run up to Christmas and towards the end of the experiment. We have just three weeks to run!

Thursday 11/12/2014

We are in again with another buy trade. This morning the GBPUSD fell below the 50 Point below opening level and opened a volume 2 buy trade at 1.56600. This is trade no 25.

And out again at just above today’s opening price, so at 1.57120 for a straight 50 Pips of net profit to give £100.00. That brings our rolling profit realised to £3,590.22

Week 48 W/C 01/12/2014

Another quiet week and it is finishing early too! I am away off to bonny Scotland for a long weekend so there won’t be anything else happening this week.

Monday 01/12/2014

Fantastic! I was away at a family gathering last night but set a volume 2 limit order to buy the GBPUSD if it fell be 50 Pips after opening. I did fall anf gave me a buy trade. I have only just looked to see what was happening and was able to close out the trade with a gain of 150 Pips giving me a profit of 148 Pips or £296.00 after the spread. don’t you just love this! That is trade No 24 opened at 1.55938 and closed at 1.57438 (opened at the -50 lne and closed at the +100 line – good old Jeff’s Lines). We are now at an account value of £3,460.22 which means that even if I closed the losing buy trade and it’s protective sell trade we would still have made ober 200% profit. that is very pleasing as I want to try to ensure that we end up with at least 200% when the year long experiment closes in January and starts again.

Week 47 W/C 24/11/2014

A quiet week without trades. There were a couple of good trades available but I was busy getting the latest edition of Forex Trader Magazine. Edition No 8 has a full report on this experiment. I was also standing back a little as it was thanks giving week and I have not worked out how that affects things. Happy thanks giving to all of our followers and readers.

Week 46 W/C 17/11/2014

The 20 week downtrend continued taking us back to August 2013 levels and further away from our protected buy trade. Still, it is protected and we had a couple of very nice additional trades.

Friday 21/11/2014

In a repeat of yesterday we took on a buy trade this morning after the GBPUSD price had falled 50 Pips from its opening price and then started to recover. we entered this volume 2 trade at 1.56355 (exactly the same price as yesterday) and closed at 1.56917 (opening price for today). This gave 56.2 Pips of profit or 54.2 after the spread. The monetary gain was therefore £108.40. We have now closed £2,194.22 of profits putting us well over 200%.

Thursday 20/11/2014

We are in once more! this morning the GBPUSD went down 50 Pips to the first Jeff’s Line and we entered a buy trade of volume two at 1.56335.

It is now almost 12.45 am and I am closing this trade at 1.56964 for 62.9 Pips of profit (60.9 after the spread) therefore a profit of £121.80.

Week 45 W/C 10/11/14

No trades this week. The market had a big fall with a range of 352 Pips and an eventual fall of 214 Pips. this is making our protected buy trade look a long way from home. However, I am confident that it will return to profit unless we decide to close it for any reason.

Week 44 W/C 03/11/14

This week saw another big fall in the GBPUSD price which has now been coming down for some 18 weeks. We could say it was the outcome of the US midterm elections or good US employment figures. However, it is really completely in line with the trend which it must be assumed is tracking US economic progress in the economic recovery.

Our original, defended trade is looking a long way from home but it is well protected and we do not have to rush to do anything with it.

Thursday 06/11/14

closed additional trade at 1.59940 for 107.7 Pips of profit which is £211.40 after the spread. We have now closed £1,964.02 (+196.4%) in 19 profitable trades.

Wednesday 05/11/14

Here we go again with another additional buy trade. We have bad economic news in the UK wchich took the GBPUSD down to 1.58681 (so far anyway). I managed to get a volume 2 buy trade placed at 1.58863.

Week 43 W/C 27/10/2014

See the comments for each of the days that we took action on during the week. We have now closed 18 trades with £1,753.62 (175.362%) profit. We have our losing volume 2 buy trade still open at 1.63310 losing 333.5 Pips or£667.00. Our protective volume 2 sell trade is still open protecting the buy trade at 1.60900 in profit by 92.5 Pips or £185.00. The loss “traped” between the two trades is therefore 241 Pips or £482.00.

Since opening the losing buy trade we have also opened a further eight protective and additional trades that have since been closed with a total profit of £614.60 putting us ahead by £132.60 since opening the buy trade.

Thursday 30th October 2014

Nice – this morning, on the back of the big downwaed movement of the GBPUSD, I decided to put on another “additional” buy trade through a limit order at just below 50 Pips away from last night’s opening price. It was triggered at 1.59615. I have now closed the trade at 1.60225 giving me 61 Pips of profit which is 59 pips after the spread and another £118.00 in the profit column.

In addition, I placed a take profit on the 1.60900 defensive sell trade at 1.60840.

Wednesday 29th October 2014

Yesterday the Federal Reserve announced that it was ending its current quantatative easing (money printing programme). This caused the GBPUSD price to move down by 200 Pips as the USD strengthened. Our protective sell limit order at 1.60900 was therefore triggered. With the price now about 125 Pips below this trade I am very pleased that it was in place!

Tuesday 28th October 2014

Today we had an “additional” buy trade. This opened at 1.61046 and closed at 1.61660. It was of volume 1 and therefore made £59.40. The trade was recorded as an example trade for the shortly to be launched 2015 edition of our forex training course.

In addition, we also moved the defensive limit sell trade order up from 1.60255 to 1.6090.

Week 42 W/C 20/10/2014

The week ended with the replaced take profit on the defensive order being triggered. The defensive trade was at 1.60840 and the profit was taken at 1.60715 giving me 12.5 Pips of profit which was 10.5 after the spread. This was worth £21.00 and brings the total profit to date to £1,575.22. I have now placed another defensive limit sell order at 1.60255. I don’t want this to trigger. My aim is to have the market increase and to have a new defensive limit sell order at a much higher price.

Thursday 23rd October 2014

Yesterday, I was vigilant and took the take profit order at 1.60840 off before it could trigger and then put it back in place once the “danger” had passed. Today I have put a new buy trade in place at 1.60025 to take advantage of bad economic news for the UK in respect of retail sales levels. I am not looking for a huge profit on this. It is now 13.38 in the UK and I have closed this trade at 1.60375 for a profit of 35 Pips or 33 after the spread giving a monetary profit of £66.00

Wednesday 22nd October 2014

The defensive sell limit order that we moved to 1.60840 yesterday has now been triggered. I have placed a take profit on this trade at 1.60800 in case of a quick return! I may end up moving this depending on how things go and will be looking for another buy trade opportunity if we get a significant fall in the price.

Tuesday 21st October 2014

The GBPUSD price having moved up yesterday, I am moving the defensive limit sell order up again. This time to 1.60840. This is just under the opening price of the day less 75 Pips. Therefore, you may guess that I do not actually want this order fulfilled. We are still in the buy only zone and are only contemplating a sell trade as a defensive measure.

Monday 20th October 2014

In the light of this mornings upward movement I am changing the defensive limit sell order a little higher to 1.60455.

Week 41 W/C 13/10/2014

Enough said for the week really. However, I have now moved the defensive limit sell order up from 1.59 to 1.60263.

Wednesday 15/10/2014

Well, it is a bit of a week! first the UK’s lower than forecast inflation rate caused a big fall yesterday causing our new defensive limit order sell trade to kick in at 1.60241. Then today we took advantage of the over reaction by placing a new buy trade at 1.59050 which I have now closed at 1.60140. Then the take profit on our defensive sell trade was also triggered. We made £54 on the close of the defense trade and £292.20 on the opportunistic trade. Our gross profit now stands at £2,484.22 – bearing in mind that we still have a losing trade in progress that this figure does not take into account.

Monday 13/10/2014

We are out – again! The take profit that was set at 1.60840 triggered giving us a profit of 18 Pips, that is 16 Pips after the spread so a profit of £32.00. I am now replacing the defensive sell trade with a new defensive limit order sell trade at 1.60241. This, if triggered would widen our captured loss so it is not what I expect or want to happen. hopefully, the price will continue to rise and we casn set a new defensive sell trade in place which significantly narrows the gap.

Week 40 W/C 6/10/2014

Things are all over the place! I am writing this on Friday afternoon the 10th of October at 15.30 or so, the market therefore still has some hours to run today. Hopefully, my comments are not going to be a bit premature.

Over today and yesterday the GBPUSD fell by over 200 Pips. It therefore triggered our defensive limit sell order at 1.60950 protecting our buy trade from around 80 Pips of the fall and reducing very nicely the loss that we have “trapped” between our buy and sell trades.

I am now putting a take profit order on the defensive sell trade at 1.60840. The main reasons for this are to take a little bit of profit and to remove the defensive trade ready to replace it at a more advantagous price if the opportunity arises.

We still only have one buy and one sell trade in place so thereis also scope for another buy trade down in this area of the shallows. I am not desparate to have an additional buy trade but may take one if things look good.

Thursday 9/10/2014

The GBPUSD price has risen and is currently at 1.62050 so way above the protective sell limit order that was place on Monday. I am now cancelling that limit order and replacing it with another at the higher price of 1.60950 which is almost 120 Pips higher. whatever happens now we have narrowed the gap between our original trade and, if triggered, the defensive limit order. the gap is now 317.5 Pips wide. If the price continues to rise I will move the defensive sell limit order higher again.

There is an interesting point to note here which is about a difference between forex trading and stock trading. With stock trading we would be able to set another limit order at a higher price which, if triggered, would cancel the original limit order. That is not so easy in forex. However, I suspect there is a way of doing it with some plugin or other.

Monday 6/10/2014

Hi all, I have taken profit on the volume 2 defensive sell trade entered into last week at 1.613310. Profit was taken at 1.60110 and was 12.21 Pips so £20.42 after the spread. the idea is to allow the price to rise before replacing this defensive trade at a higher level. Just in case the price falls again a replacement limit  SELL order has been set at 1.59758.

Week 39 W/C 29/09/2014

This is a different week! The GBP slid down from an opening of 1.62375 to close at 1.59717 which is a fall of almost 266 Pips or 2.66 cents – what is that about? In the main it was good news for the US economy being announced, and about time too. We have an open trade of volume 2 at 1.63310 which is 359 Pips above the current price. So, for the first time in 39 weeks our defensive strategy has been triggered. Now around 80% of traders would have take taken all of that drop as a loss and would be well on their way to joining the 95% losers club! Almost all of the remaining traders would have set a stop loss order in place and would have taken a loss on this trade.

Thankfully, we are in the 0.001% that does something different. We placed an equal and opposite volume 2 SELL trade at 1.613310 locking in a loss of  198 Pips. This is bad enough as it gives a “loss” of £396. However, because we have locked the loss in, rather than materialising it, we have bought time and have prevented the trade from getting worse.

We are now in a position to demonstrate our hedging technique which will get us out of this problems as and when the price rises again – which it surely will.

In addition, we are also free to place another, small, buy trade as and when the time is right – without affecting or being affected by our exiting trades.

Week 38 W/C 22/9/2014

No more action as such this week apart from having moved my defensive line down from 1.62330 to 1.60295 to put it below recent lows.

Thursday 25/9/2014

So, I can’t be around much today and am going to set some limit orders to the oder trade. first, a take profit order at at 1.64125 which is just less tat today’s opening price plus 75 Pips as well as being a level hit three times this week. Second, a protective sell trade at 1.62330 which is just more than 100 Pips below todays opening price of 1.63991

Wednesday 24/9/2014

Today we entered a buy limit order trade of volume 2 at 1.63310

Week 37 W/C 15/09/2014

All of this weeks action took place yesterday and is reported below.

British and Scottish flags on jigsaw pieces

Scotland Decides

Friday 19th September 2014 – Yippee!

On Thursday 18th September, independence referendum day in Scotland, I decided to place a buy limit order to take effect if the GBPUSD went up if the no campaign won. i set a buy order at 1.6418 of volume 2 with a take profit order at 1.6500. Both the buy and the take profit orders got triggered with the profit being taken at around 3.00 am. Now that I am using volume 2 that meant £160 of profit. The total profit is now £2,117.60 or 111.76% from 12 trades in 37 weeks.

Week 36 W/C 08/09/2014

A quiet week but see the comment below. I am now fairly sure that I want to sit things out until we se the result of the Scottish referendum. If it is a YES vote then the GBPUSD may fall dramatically further and I am in buy mode! If it is a no vote the GBPUSD may recover some of the ground that it has recently lost and that would be the time that i would want to get back in.

Week 35 W/C 01/09/2014 – oh what a week

I was on vacation throughout this week but it was one heck of a week! Before leaving I closed the trade that had opened at 1.6609. I came out at 1.66425 with a profit of £47.25 on the trade. Just as well i did given what happened while I was away. The GBPUSD plummeted on news that the Scottish referendum result is going to be closer than expected.

However, that plummet brought a very nice bonus! Those of you who have followed this from the start may remember that we had an open sell trade at 1.63733 that was opened at 6 February 2014. Patience in not closing open losing trades has now allowed this to be closed today (09/09/2014) at 1.6100 giving a whopping gain of 223.10 Pips and a profit of £221.30 after the spread. The overall profit is now at £957.60 or 95.76% on our original £1,000 trading pot. We have completed 11 trades in 35 weeks and 1 day! Now we are out altogether and clear to trade. that said the volatility being caused by the Scottish referendum will make me cautious until the result is known.

Week 34 W/C 25/08/2014

A quiet week with the largest daily movement in any direction being 66 Pips of upward movement on Wednesday. We ended on an eight day high which may signal an end to the recent run of falls or it could be a pause! The week seemed to be bound by strong resistance at the whole number price point of 1.66 although this was breached several times and the week did actually finish above it at 1.66015. We have a trade in progress of course and this did go into profit several times. However, looking at the Bollinger Bands its prospects look good so I left it in play.

As the screen shot shows – the price has left the lower Bollinger Band and is traversing to the middle band on this daily GBPUSD chart. The middle would give us a decent profit! The screen shot  also shows that we are deep into buy only territory, that we have met strong support and that the 1.66 whole number price point is acting as strong resistance.

Daily GBPUSD 29/8/2014

Wk ending 29/8/14 GBPUSD with Bollinger Bands (daily)

Week 33 W/C 18/08/2014

Nothing else to report this week guys but you may want to check out four videos that i have posted to YouTube:

This is a trailer for Forex Trader Magazine but it has some really inspiring stuff in it!: https://www.youtube.com/watch?v=3zZatKBztA0

Here is a video on how I deal with emotion in my trading: https://www.youtube.com/watch?v=XIyKwR8aoTI

If you have had to update to MT4’s latest version you may have some set-up issues. Watch this to resolve them: https://www.youtube.com/watch?v=fvRUnRq2yKU

Finally, the new version of Mt4 has a different installation process for bespoke indicators such as Jeff’s Lines and the Rule of Thirds. Here is how to install them: https://www.youtube.com/watch?v=6Jsxxb24ZB8

Monday 18 August 2014

The GBPUSD is currently in a Bollinger Band Squeeze and I note that we have had a “gap up” in the price. As gaps tend to close I have decided to exit our 1.67114 trade at 1.67278 for a small profit on 16.4 Pips so 14.4 after the spread giving me £21.60 and taking our equity to £1689.05. Our gain to date is therefore £689.05 or 68.9%.

Wednesday 20 August 2014

back in buying on a volume of 1.5 at 1.66090 as we bounce off 1.66 deep into the buy only zone.

Week 32 W/C 11/08/2014

Wednesday 13 August 2014

Today is a BIG new day in the UK with unemployment and wage levels being announced and with a statement from the Governor of the Bank of England. I decided that it was better to come out of the trade that we opened yesterday and did so in profit at 1.68370. that gave a profit of 32.9 Pips after the spread adding£49.35 to our profits.

The news duly came out and the GBPUSD plummeted by over 100 Pips to below 1.67114. I decided to go back in with a new buy trade of volume 1.5 at exactly that level, so off we go again!

Tuesday 12 August 2014

Hey all, we are back in but this time with what  believe is our first buy trade of the year! We have bought the GBPUSD at 1.68021. I waited until the price had broken up through the 1.68 level which had been providing some resistance. This is a volume 1.5 trade. Here is the chart, the green line is our trade.

30 min chart 12 aug 14

30 minute GBPUSD Chart 12 Aug 2014

Week 31 W/C 04/08/2014

a quiet week in terms of trading with no new trades opened but we did see another significant fall in the price of the GBPUSD from 1.68244 to 1.67446 which is a fall of just under 80 Pips – and the low was even below this. Now, while a fall of 80 Pips is no a great thing to get excited about, we are looking at a longer term fall from 1.71787 a fall of 434 Pips over the last 30 trading days. Also, this weeks fall took us into the “buy only” area of the chart.

now for actual pictures, I don’t give you these very often so contain your excitement!

The first is the daily GBPUSD chart showing the drop of the last two weeks or so and it shows the drop from the red sell only area of the chart through the white buy or sell area to the green buy only area.

The second image is of the GBPUSD hourly chart as trading concluded on Friday 8 August 2014. It shows that the close is indeed in the buy only area. incidentally, it also shows the influences picked up by the Jeff’s Lines tool as the -50 level act as a magnet!

jeffs line aug2014

GBPUSD Aug 2014 (Daily)

GBPUSD 9/8/2014 (hourly)

GBPUSD 9/8/2104 (hourly)

MT4 Change

This week MetaTrader the builders of the MT4 trading platform have forced everyone to move to a new build, Build 600 of the platform. That is fine but changing takes away all indicators including custom indicators such as Jeff’s Lines and The Rule of Thirds. I have posted a short video on YouTube showing how to restore these and you can watch it here. In addition, there is also a short video on setting your trading screen up to look like mine here.

Week 30 W/C 28/07/2014

Most of this weeks report was filed on Wednesday, see below. Note that we have now had a 15 trading day run downwards and are into the lower half of the middle (buy or sell) trading area of the screen. Friday saw a very nice move down to the 75 Jeff’s Line before “bouncing” back a little. Looking at the Bollinger Bands we are still “walking” down them so I expect to give it a few more days before entering a trade and currently expect it to be a buy trade.

Wednesday 30/07/2014

Great news everyone, our patience has paid off and we have taken a profit on our sell trade that was entered at 1.69658 0n 13 June 2014. We came out at exactly 1.69000 giving a profit of 63.8 Pips after the spread. As it had a volume 1.5 and this means that our gain was £95.70.

I decided to exit the trade at 1.69 because it is, being a whole number, a major pivot point. it was also fairly close, very close in fact to the opening of the day less 50 Pips which is also a strong pivot point. This is also an area that has previously acted as both a point of support and resistance – so those three indicators and £95.70 were enough to tempt me.

So, when we add this to the gains of £522.40 we have a new level of gain of £618.10 or 61.81% in 30 weeks.

The price is now firmly in the middle area of the trading zone indicating that it is safe to either buy or sell. I will be using Jeff’s lines and the daily chart Bollinger Bands to find our next trade which could be a buy or a sell.

Week 29 (W/C 21/07/2014)

Hi everyone, exciting times! As I write this, on Friday morning 25/07/2014, we still have most of Friday’s trading to go for this week. However, not only has this week seen the GBPUSD price fall to put our latest trade in profit, it has also moved the price back into the middle area of the chart. This puts us into the “happy to buy or sell” price region. Therefore, I hope to get out of this 1.5 volume trade with a nice profit and to find a good opportunity to place another trade very quickly. I just love this low input system!

Week 28 (W/C 14/07/2014)

Another quiet week but things are moving in the right direction. A shallow downward trend in the GBPUSD price continued and is now on a run of 14 days. We also had a 17 day low on Friday of this week. If I was not already in a trade I would now have entered another sell trade. So, we wait another week for our trade to get into profit.

Week 27 (W/C 07/07/2014)

At last some respite! we remain a long way from home but the price direction of the GBPUSD seems to have changed direction for the  moment at least. We ended this week at a ten day low and went back below the 1.71 level to break support. I am pleased that I held my nerve and did not try to protect the trade above this level. It could take another week or two to get back into profit but that is how I am choosing to trade this account. There are other options. I could, for example, have taken the view that it would have been better to take a small loss and to then have waited for another sell opportunity. That would have been legitimate but not a good test of my trading systems and tools.

Week 26 (W/C 30/6/2014)

Once more a quiet week requiring patience and nerves of steel! However, the week saw a new high of 1.71787. This occurred on Friday 4th July, a public holiday in the USA. This is the highest price for the GBPUSD that has been seen since October 2008 which is almost six years ago. At present I have no plans to defend my sell trade. I am holding my nerve!

Week 25 (W/C 23/6/2014)

Not a great deal happening this week with a total trading range for the week of less than 100 Pips. It feels like the GBPUSD price is just hanging in mid air like a cartoon character that has ran over a cliff edge! The high of the week was very slightly lower than that of the previous week and the low was higher than the low of the previous week. My open trade is within about 55 Pips of profit so I am leaving everything to stand as it is.

Week 24 (W/C 17/6/2014)

No action this week, we are waiting for our sell trade to come into profit, which it surely will!

However, it is worth pointing out that as I write, 08.30 (BST) on Friday 20th June 2014 the price of the GBPUSD is 1.70574. Looking back this seems to be the highest price seen since October 2008 that was six years and 6 months or 150 months ago!

I am off on a family weekend in the English Lake District shortly and will not have even a mobile phone signal until Monday night.

Week 23 (W/C 10/6/2014

Tuesday (11/6/2014) – We left our open trade with a 75 Pip profit on Tuesday coming out at 1.67558 which was a profit of 77 Pips but a net gain of 75 Pips after the spread. This trade had a volume of 1.5 so the net profit is £150.00. We are now looking for another entry to sell again.

Friday (13/6/2014) 07.05 – time to jump back in. News at the Mansion house speech from Mark Carney about interest rates pushed the GBPUSD to 1.69715 (so far). I am in with a 1.5 volume trade at 1.69658.

So, the week ends with another high on the back of good UK economic news and with the price firmly back in the sell only zone.

With Thursday’s profit of £150 we now have closed profitable trades of over £520 which means that at the end of week 23 the account is over 52% up!

Week 22 (W/C 3/6/2014)

An early report this week. I am writing on Friday afternoon (6/6/2014). Yesterday saw an 89 Pip upward move on the GBPUSD with a net upward movement of 78 Pips after a bit of a pull back. The rise was caused by news from Euroland who are cutting interest rates, charging banks to hold deposits at the Central Bank and are talking about Quantitative Easing (QE).

I don’t think the upward move is sustainable and have decided to enter a sell trade, particularly as we are back in the sell only zone. i have therefore placed a 1.5 volume sell trade which has opened at 1.68338. I have not decided yet whether to go for 50, 75 or 100 pips of profit on this trade and am happy to let it run into next week. It has already been over 50 pips in profit today.

Week 21 (W/C 26/5/2014)

A quiet week in terms of trading. We were looking for a day with a 100 Pip price rise to open a new sell trade. The week had three upward movement days but two downward movement days one of which was the biggest moving day of the week with a low of 112 Pips below the opening. The biggest upward moving day was the Friday with a high 60 Pips above the opening point.

In terms of our trading system I rated three days with the maximum compliance rate of 3 and two days with imperfect compliance got a rating of 2. This is quite unusual as most weeks have four or five of the days rated as 3. This indicates a “scrappy” week or one in which a lot of price moving news has been announced.

The other interesting thing about the week was that on Wednesday we moved from the upper “buy only” zone to the central “buy or sell” zone. This is the first time we have been in the central zone since the beginning of April. at the most extreme we were about 25% into the central zone which is an area in which I would start to consider buy as well as sell trades. However, I missed that particular boat and the week ended up being only about 5-10% into the zone. So, we start next week again looking for around 100 Pips of upward movement to enter a sell trade on the back of.

Week 20 (W/C 19/5/2014)

Just below the high (1.69206) of Wednesday I decided that the GBPUSD had peaked and that a sell trade was appropriate. This went in at 1.69100 (volume 1). To keep things moving I closed the trade just one minute before the market closed on Friday 23/5/2014. the price was 1.68316 giving me a profit of 78.4 Pips. After the spread this was £76.40 taking the realised profit to date up to £372.40 or 37.24% on our original £1,000.00. So, although it has taken 20 weeks, and there have been some really slow periods, we are now looking at a decent profit. Annualised this would be just shy of 100% at 96.82%.

However, that calculation (37.24 / 20) x 52 = 96.82 does not take ANY COMPOUNDING into account. We are now in a position to start taking compounding on board by placing larger trades. We can keep our trade volumes very low as a percentage of our “pot” but can increase them proportionately to take the larger pot size into account. Our next trade will therefore probably be of volume 1.5 or even 2 depending on the strength of the signal.

Week 19 (W/C 12/5/2014)

Yes! the automatic take profit on our latest trade closed at 102 Pips giving us a net profit after spread of £100.00. This takes our profit to date up to £296.00 on our opening £1,000.00 so we are up 29.6% so far! The trade opened at 1.68835 on 17/4/2014 and closed at 1.6733 on 15/5/2014. This week the price had actually peaked at 1.69956 so it “bounced” off the 1.70 level and we were, luckily, closed at the weeks low of 1.6733 which was exactly 102 Pips below our trade – the level at which we set out take profits! We are now looking to get in with another sell trade.

Week 18 (W/C 5/5/2014)

Still quiet as far as trading is concerned. However, we did see the GBPUSD price almost hit 1.70 this week. at the time of writing it had fallen back to 1.68313. We continue to be patient and to wait for our next profit opportunity.

Week 17 (W/C 28/4/2014)

Hey guys, not a great deal happening this week. It looks like the GBPUSD may want to go to 1.70 or higher before turning around. I am just hanging on in there.

Week 16 (W/C 21/4/2014)

The sell trade opened at 1.6835 on 17 April 2014 remains open and at the close of business this week it was in profit. Earlier in the week the profit had peaked at around 66 Pips. For the present at least I am going to hang in on this trade for a £100 profit. I am in no hurry!

Week 15 (W/C 14/4/2014)

At last we have had some movement that I was prepared to take some profit from. The £100 profit that we were looking for when placing last weeks volume 1 sell trade at 1.67889 was closed at 1.66869 giving a gross profit of 102 Pips which after the spread gives us £100 exactly. We have therefore now added £196 or 19.6% profit since starting with our first trade on 14 January 2014.

However, we have now also opened another trade. We have a volume 1 manual sell trade at 1.68350 which was opened on Thursday 17 April 2014. At the close of business on Friday 18 January 2014 this was in profit by 33 Pips. At this stage I have not decided whether to look for £50 or £100 of profit on this trade.

Week 14 (W/C 7/4/2014)

Back from holiday during this week and saw a huge rise in the GBPUSD on Tuesday, Wednesday and Thursday peaking at 1.68197 on Thursday. The rise came on good economic news from the UK. I decided to enter a manual sell trade, of volume 1, and did well to get in not too far below the peak at 1.67889 on Wednesday. I have decided to let this trade run. With the market closing on Friday night at 1.67321 the trade is 56.8 Pips in profit. I have set a take profit instruction at 1.6730 and am therefore looking for around £100 of profit.

Weeks 12 & 13(W/C 24/3/2014 & W/C 31/3/2014). – holiday

During most of these two weeks I will be on holiday cruising around the Canary Islands. I have therefore added a take profit at 100 Pips below our current open trade and have closed the pending order. I will report on the outcome on my return.

Week 11 (W/C 17/3/2014) That is better.

The long awaited fall continues, in fact this week had a Doji (no net upward or downward movement) on Monday and went down on each of the remaining days. The market closed on Friday night at 1.64866 so has breached the 1.65000 price point. Our open trade is now only a days ride away from becoming profitable. We are also firmly established in the middle zone. this is the zone in which my trading system says that we can buy or sell with a high level of confidence that either trade will go into profit. With this in mind we are now setting a limit order each day – currently still only for sell orders and at 50 Pips above the opening price for the day.

Week 10 (W/C 10/3/2014) Down she goes.

As  we reach the end of week 10 the price is at last moving back in our favour. From a high of 1.68218 (17/2/2014) yesterday (12/3/2014) saw our lowest price yet at 1.65677. This is a 23 trading day low and we are getting close to the middle (buy and sell) zone. We have also moved a good way back towards our open trade.

Week 8 (W/C 3/3/2014) 18 days becalmed!

Come on markets let see some movement. We have now had 18 trading days within a very narrow channel running between support of around 1.66120 and resistance of 1.67450. However, the resistance has been touched around 10 times and it is looking very strong. I think that the price may be setting up for a decent fall which will help us greatly. This also gives me cause to continue to not put an equal and opposite protective trade in place at this stage.

Week 7 – more coaster than roller!

Like a ship we remain becalmed waiting for the price of GBPUSD to fall to an area where we can make some money. Patience is one thing but tedium and boredom are another! Still we are at least 150 Pips below the price peak and slowly moving towards our target.

Week 6 – its a roller coaster

We have been waiting for our open trade to come back into profit all week. during the last four days we had downward movement but there is still some way to go.

Week 5 and things are hotting up.

We commencing Monday 10 February saw a steady upward climb in the GBPUSD which peaked at 1.67677 (the opening price of Friday 14th. Having entered a sell trade in week 4 and not wanting to be a buyer, with no scope for a further trade we are just waiting patiently for the price to come back down bringing our open trade into profit. This is exactly why our trades size needs to be small compared to the value of equity in the account.

Week 4 ends with a new trade opening

It has taken a while and we have had to be patient but the limit order set to sell at a price of Thursday nights (6/2/14) 10.00 pm opening price of 1.63733 (GBPUSD) triggered to get our third trade into play. a take profit instruction was automatically set 50 Pips below at 1.63233 and a protective buy stop limit order was placed just above 100 Pips higher than the trade at 1.64780. I used the “just higher than 100” Pips level so that a bounce off the +100 Pips point does not trigger the protection. the price would have to pass through the +100 Pips level to trigger the protective buy trade.

So, that is it for week 4 as the market closed with neither the take profit nor the protection on this trade being triggered and we go into week five with one open sell trade which is 36.2 Pips in loss – but we are not worried!

Week 4 – Monday 3/2/14 & Tuesday 4/2/14

Tuesday saw the GBP/USD price fall from the Sell only zone to the buy and sell zone for the first time in several months. Being cautious, I intend to stay in sell only mode until the period within the new zone becomes more established. This probably means until it approaches the mid point of the new zone at around 1.62500.

The Sunday night sell limit order at the opening + 50 Pips level did not trigger. In fact the rise above the opening price was limited to just 10 Pips and this has been the 5th successive day without a rise of 50 Pips from the opening and the 5th successive falling (red) Candlestick day. We know that this, from last years figures, is quite an unusual run (in either direction).

For Tuesday (set on Monday evening after 10.00 pm UK time) a sell limit order was set at 1.63555 (opening + 50 Pips) with a take profit at 1.63055 (Opening).

Week 3 – Building a Money Machine (Friday 31 Jan 2014)

An easy week – no trades this week.

at the start of the week I was holding off because the current GBPUSD price is deep inside my sell only zone and news was due out that could have pushed the price higher. The news was the UK GDP figure. This was expected to be good and it was better than expected. However, the price did not move higher, so much for logic!

In the second half of the week I set my sell limit orders to kick in at the opening price + 50 Pips with take profit instructions back at the opening price. unfortunately, not one of them triggered.

Hey, ho, I have learned that patience is an essential part of trading!

Week 1 & 2 – Building a Money Machine!

We are building a money machine using the ten minutes per day trading system and other tools and techniques described in the February / March edition of Forex Trader Magazine and reporting every trade here. Once the magazine is published this blog will report trades as they happen unless they are limit orders. In that case they will be reported when then order is placed. So, below is the outcome from weeks one and two of the experiment, weeks commencing 12/1/2014 and 19/1/2014. Note that the dates refer to the trading day start and this is usually at 10.00 pm (UK) on the date shown.

week 1 and 2 A from trading spreadsheet

week 1 and 2 B

Weeks 1 and 2 of Ten Minutes Per Day Trading System Experiment

The experiment started with an equity pot of £1,000. In week one we set limit orders to open sell trades only, because the rule of thirds is in the sell only area. We also used a limit order set at 50 Pips above the opening price. We would frequently use a limit order position 75 Pips away from the opening price. However, it is our current view that the GBPUSD is trading close to the top of its range and therefore the 50 Pips away setting is more appropriate.

The first week saw three limit sell orders set with only two triggered both of which were closed in profit of 50 Pips (less 2 Pips spread = 48 Pips profit per trade). This is because on one of the days a previously triggered limit order was still in progress and we did not want to double our open trades at this stage. In addition, towards the end of the week we were concerned about big economic news coming out in the following week which would make trading particularly unpredictable.

After week one we had equity of £1098 and are therefore 9.6% up on closed trades with no open trades left in place.

For week two, commencing on Sunday 19th January 2014 we stayed out of the market. With UK Inflation and Unemployment Statistics due to be published we felt this was appropriate. As it happened the market rose above 1.6600 so any sell trade would have looked a bit sick! We now intend to stay out of the market until at least after the UK preliminary GDP q/q announcement on 28 January 2014.

Tuesday 14 January 2014 – our first trade

In line with the system, the limit order for a sell trade set on 12 January 2013 at the opening price + 75 Pips was not triggered and it was therefore cancelled and replaced.

the new limit order set at 10.00 pm (UK) on 13th January 2014 at 10.00 pm (UK). Because the current action is deep into the sell only territory it was decided to set this evenings limit order at opening +50 instead of +75 Pips. It was accordingly set to trigger at 1.64324 with a take profit at the opening price (50 Pips below) at 1.63824. The trade was triggered at around 11 am (UK).

The Ten Minutes Per Day No loss Trading System

Welcome to our live trading experiment. This is the start of our test of the Ten Minutes Per Day No Loss trading System. The system is featured in Issue #3 of Forex Trader Magazine. In this blog we will immediately report trade entries and exists, as far as we can given that they are limit orders, and we will also report all trade exits. However, apart from basic details, you will need to read the magazine to get full explanations of the trades and to learn how to do this for yourself!

online clock counter

The Ten Minute Per Day trading System

There won’t be a trade every day. We will be setting up limit orders for each day, unless our trading capacity is already fully used and we will be maintaining open orders each day.

Here are the details of the first limit order that we have set:

We are going to take things very slowly and only enter trades when all or almost all of our tools tell us that the time is right. We are also going to be quick to exit trade with a profit and our trade sizes are going to be very small relative to the equity in the trading account.

The first thing we are going to do is consult the Rule of Thirds. This will inform us as to whether we are looking to use buy, sell or buy and sell trades. At the time of writing, Sunday 12 January 2013, at 10.00 pm (UK) the price action id deep inside the upper area of our trading screen not far away from a price of 1.64850.

The border between this, the sell only area, and the middle buy and sell area stands at around 1.6325. Given that there is no significant economic data news due to be published on Monday 13 January. Given the position of the Rule of Thirds we will be setting a limit sell order.

Our limit sell order will be set to trigger only if the price moves beyond the opening +50 pips level and hits the 75 Pips above the opening price level of 1.64850 therefore it is set at 1.65596. We could choose to set a second limit order at 100 Pips above the opening price or 1.65841.

In the cases, +75 Pips and +100 Pips (had we set a second limit order) a take profit order is set at the opening level 1.64850 and no stop loss order is placed.

The size of the order is extremely important. We only wish to use an order equivalent to 0.06% of the equity in the account. This is to allow a very large swing against the order to not take us out of the game. In this case, with the equity worth £1,000 our maximum open order value will be £1,000 x 0.0006 = £0.60.

However, this limit is set to allow us to have up to three orders open at any time. Until we build up the equity I am going to use just one open order of £1.00 in value. If this goes badly against us I will consider using one more order or “neutralizing” the open sell order with a same size open buy order.

Normally, I would only report the progress of this order in this blog. However, as we still have some time to go until the publication deadline for this magazine I will give a further update in the magazine before we go to (virtual) press.

The trading system for everyday people who go to work, have commitments of just a life!

Forex trading can become obsessive and we can end up spending a crazy amount of time glued to the trading screen, often for all too small a level of return or even a loss.

For some years now we have been working on, building, refining and testing a system of trading that can make good returns quickly with low risk, a low capital requirement and that only requires a minimal amount of time in front of the screen. Not satisfied with all of these advantages, we also don’t want to have to accept loss making trades!

We call this system the Ten minutes per day no loss trading system and with the launch of this issue of Forex Trader Magazine we are about ready to unveil the system.

However, this is not just an article that will describe the trading system it is the start of a major and unique experiment. We are going to put our money where our mouth is and demonstrate the system trade by trade, good or bad, over the rest of 2014. We will use this publication and a brand new blog to give a full report on the trades we open and close – live as they happen. The idea is to report trade entries and exits on the blog with a little detail of the thinking behind them and then to give a full report and update in each edition of the magazine.

What you will need to join in with us

MT4 Trading Account

Well, obviously a trading forex trading or spread betting platform. It can be a live or a demo account. Do not put too much equity into it and make sure it is money that you can afford to lose! We are going to use £1,000 ($1,650) as our trading “pot”. This is a good number to able to demonstrate everything and a nice easy figure to work out gains, losses and other figures from.

We will be using an MT4 spread trading platform to allow us to avoid any issues of UK tax. However, a straight forward MT4 forex trading account will work in exactly the same way.

Trading Tools

We will be using a variety of trading tools. However, the most frequently used tools are likely to be The Rule of Thirds, Jeff’s Lines and Bollinger Bands. The first two of these were detailed in issue #1 and issue #2 of Forex Trader Magazine and the very unusual way that we use Bollinger Bands is covered in this issue. This should cover around 80% of our trading and we will explain any other trading tools used as we progress. We will also take into account scheduled news announcements.

The Rule of Thirds and Jeff’s Lines trading tools are essential. You do not necessarily have to have them visible on your trading screen but it is much easier if they are. The plug-ins for these can be obtained from our online shop at http://coursesonforex.co.uk/shop They come with a short video explaining the very simple installation procedure.

This trading system was designed and tested for the GBPUSD pair only. It may work with other currency pairs, it may even work better with other pairs but we have not tested it on any others and will therefore be sticking with Cable.

Time

Our ten minute title is actually a bit of an exaggeration! Used in its most pure form this trading system will only use around four or five minutes each day between Monday and Friday so around 20 to 25 minutes per week!

However, unfortunately, it is not the case that any old few minutes per day will do. We need to have this time available at between 10.00 pm and 8.00 am (UK time irrespective of whether day light saving is in operation. My preference is to set things up and to make adjustments just after the start of this period.

Knowledge

Our trading style is very different from any other that we have ever come across in the public domain. We almost never use stop loss orders and instead employ a system of hedge trades that mean that we never have to take a loss – even though sometimes we may decide that it is better to do so for the purpose of freeing up trading capacity.

You will be able to follow what we do if we need to start using the defensive strategies that we have. However, it is highly recommended that you study them as part of what we consider to be the best online forex trading course there is. This comes in the form of our four special edition magazines available at the Apple iTunes Newsstand.

  In the event of any difficulty or to purchase the training material in an alternative format visit http://coursesonforex.co.uk/shop or email to editor@forextradermagazine.co.uk

Trade Your Pension – You may have nothing to lose!

Trade Your Pension – You may have nothing to lose! returns are so poor on a small pension pots where there is neither time nor money to fix them that trading the pot may be a better option.

Elders and computerWhen the state old age pension was introduced in 1909 the average life expectancy for males was 50 years and their pensionable age was 70 years! How times have changed! In the UK, the average life expectancy in 2011 was 80.75 years and the State Pension age, by 2020 is set to rise to 66 for both men and women. Now that’s a turn around which was not expected a hundred years ago!  So how do we deal with this situation?

One response to this situation must be to ensure we get the best that we can from the pension pots we own and there are many routes to achieving the better pension arrangements. Now we are all different and I am not going to recommend that anyone makes a wholesale change to their pension arrangements without taking professional advice; I merely want to point out that the tools available for us to use in building our pensions do include self-trading for at least part of our pension pots.

Most private, retail traders are not aware that they could trade within their pension pots. In the UK we can include shares, options, spread betting or just about any other type of trading in almost any of the world’s markets in our Personal Pension Plans (PPP’s) or Self Invested Pension Plan (SIPP’s). I know this because I do it myself! In fact, I believe I was the first person in the UK to have a SIPP set up specifically to trade US stocks and options.

Setting up anything to do with a pension requires qualified, specialist help and involves costs. I found it quite difficult to find an Independent Financial Advisor (IFA) who actually understood what I wanted to do. In the end I used Tony McHugh of Bede Financial Group Ltd. an IFA who had attended one of my trading courses. By all means contact me if you would like to be put in touch with him – he was brilliant and took it on when a dozen or more others had shied away from the task.

Obviously, it goes without saying, that you must be a competent, confident self-trader with proven long-term success before even contemplating self-trading your pension.

Trading Your Pension – Is your current pension pot worth having?

Crazy rules in the UK mean that we are often left with little choice but to buy a very poor annuity with our pension pots; returns are currently hideously low. I know of a woman with a small pension pot arising from an Additional Voluntary Contribution (AVC) scheme with just £1,000 in it. Instead of being given any of this back she got an annual pension of £0.01p.Yes, she needs to live for 100,000 years just to get the money back that she put in! Incidentally, that £1,000 was worth a lot more when it was contributed.

Even if this person had been better advised the outcome was not going to be good value. The thing is though, that had her pension pot been £100,000 instead of £1,000 the outcome would still not have looked like good value.

A couple of years ago it took 14 years of retirement, from the “normal” retirement age to get the money back that had been paid into a pension plan. Guess how long the average person was living after retirement? If you guessed at 14 years you would be correct but should not be surprised. Since then things have only deteriorated.

However, many people, like me, already have money with the pension companies. Often, as in the case of pension pots from employee pension funds, this money is outside of our reasonable control. However, some pots of money, like AVC’s, SIPP’s and PPP’s can be taken control of.

Unless you have a huge amount, of someone else’s money, to put into a pension pot it may not seem worth saving for a pension!

I visited a pension comparison website earlier this year and entered (false) details to reflect that I was 65 on 1/4/2013, of average height and weight, in good health and had a £10,000 pension pot with which to buy an annuity.

After a search of at least 10 providers the best deal on offer was to take £2,500 on retirement at 1/4/2013 and use £7,500 to buy an annuity of £378.24 PER YEAR! That would mean I had to live for just less than 20 years to get repaid. The offer was for a flat pension with NO INFLATION uplifts, no widow’s pension or return of any funds after my death no matter how soon that occurred.

To better this from trading, I would need to make, say, £380 per year on £10,000 or 3.8% – per year and, when I eventually die my wife would at least have the £10,000.

Unfortunately, in this example, I would not be allowed to take my £10,000 out of its pension pot to simply trade it and take an income from it.

The next best thing for me would be to put the £10,000 into a SIPP and to grow it for as long as possible before buying a miserable annuity.

Risk.  What risk?

With a “small” pension pot, like £10,000, the worst case scenario is that the whole pot would be lost to the markets. In this event I would lose £378.24 per annum or £31.52 a month – before tax.

Because I have learnt to trade successfully, there is no contest as far as I am concerned. Any small pension pots that I have are brought under my own personal investment stewardship and are highly likely to bring me a much better outcome.

For me, this logic alone says that it is worth learning to trade, becoming competent and looking after my own small pension pots.