Our Trading Strategy
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Our Trading Strategy
forexgrandmaster Tue Feb 05, 2008 3:24 am
Our Trading Strategy
Welcome to http://www.forexgrandmaster.com/
Our Trading Strategy
1. Money Management
As we provide free signals on almost every currency but preference is on GBPUSD, GBPCHF, GBPJPY, AUDCAD, EURUSD.
We provide signals frequently and ranges from extremely short term(1-4 Hrs.) to medium term(2-3 Days).
We Recommend (Strictly) to invest only 3% or 5% or 7% of available margin in each trade . And its too depend on the risk appettite of the individual.
3% For Risk Averters (Low Risk Takers)
5% For Moderate Risk Takers
7% For High Risk Takers
Available Margin----- Here availale margin means balance margin which is available for next trade.
Example--- Suppose available margin is 10000 USD and no position is opened. Now Suppose a Long position is opened in GBPUSD at 1.9650 for the TP 1.9680 and is still open and in -20 pips.
Since we are already using 10000x3% or 5% or 7% i.e. 300 or 500 or 700 USD depending on the individual risk appetite in GBPUSD long position and this position is in loss of -20 pips so we may have balance margin of USD 9740 or 9400 or 9160 available for the next trade.
Now any new signal comes then we will use 3 or 5 or 7% of balance margin available in that trade.And trading going so on if further any new signal comes.
This strategy works on both side in case of worst cases it saves us from margin calls and on the other hand in successs trades cases it gives return on total margin i.e. on cumulative basis.
One other benefit is that we don’t use often SL since and let remain position open and we met target even have seen big virtual loss (not booked) in any trade. If we closed our position early because of fear of loss and after that our previous target met, in this condition we feel regret .
Some other Strategies
1. Double Quantity Technique (DQT):- It is well known fact like other market forex market is not certain and risk is also the part of forex market.
Some time when any signal is given it might be price go in opposite direction after the signal, in this situation we use Double quantity technique to make best possible average of the trades by adding another quantity with double quantity than previous one in the same pair. And for this signal lower the TP to make lower the risk.
When this Double quantity order gets closed it gives us two benefits:-
i) Effectively Double pips since we have used double quantity
ii) Make Average price of the previous order and price become lower and we can exit at much early price by revising new target if feeling not better in the trade.
2. Four Times Quantity Technique (FTQT) :-
Same as DQT we often use FTQT if price reach far away from our first trade to make the average price more better. This is used rarely because highly risky.
Benefits same as DQT
Important Note:-
The above mentioned techniques works well if we follow our money management strategy strictly.And maintain our backup for any disaster.So please never use greater amount of margin in any trade. Be on safe side.
There is a good saying “ Earn safe and earn long even it is little”
3. Hedging:-
Hedging is defined as holding two or more positions at the same time, or after some time later then first position in opposite direction where the purpose is to offset the losses in the first position by the gains received from the other position.
Usual hedging is to open a position for a currency A, then opening a reverse for this position on the same currency A. This type of hedging protects the trader from getting a margin call, as the second position will gain if the first loses, and vice versa.
However, traders developed more hedging techniques in order to try to benefit form hedging and make profits instead of just to offset losses.
In this you can gain as well as save yourself from margin call. In our signals we also often use this technique and successful most of the times.But it requires a lot of consideration.
It is very important not to get a margin call. This can be maintained by a large equity, or a fast efficient way to transfer money between brokers.
Problems:-
There are some genuine problems of investors , traders that their brokers provide that certain mimimum quantity is mandatory to trade.
In this case we suggest you to either manage ur margin money according to our system or change your broker to a flexible one where you can trade with small margins. And easily can avoid margin calls.
Some brokers that are suitable to our strategy:
http://www.marketiva.com/
http://www.liteforex.org/
Note :- If you need further assistance please do not hesitate and mail to us at contact@forexgrandmaster.com or join us at yahooid forexgrandmaster or skype id forexgrandmaster.
Risk Disclosure: Unique experiences and past performances do not guarantee future results! Testimonials herein are unsolicited and are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading stocks, futures, options and spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.http://www.forexgrandmaster.com/
Welcome to http://www.forexgrandmaster.com/
Our Trading Strategy
1. Money Management
As we provide free signals on almost every currency but preference is on GBPUSD, GBPCHF, GBPJPY, AUDCAD, EURUSD.
We provide signals frequently and ranges from extremely short term(1-4 Hrs.) to medium term(2-3 Days).
We Recommend (Strictly) to invest only 3% or 5% or 7% of available margin in each trade . And its too depend on the risk appettite of the individual.
3% For Risk Averters (Low Risk Takers)
5% For Moderate Risk Takers
7% For High Risk Takers
Available Margin----- Here availale margin means balance margin which is available for next trade.
Example--- Suppose available margin is 10000 USD and no position is opened. Now Suppose a Long position is opened in GBPUSD at 1.9650 for the TP 1.9680 and is still open and in -20 pips.
Since we are already using 10000x3% or 5% or 7% i.e. 300 or 500 or 700 USD depending on the individual risk appetite in GBPUSD long position and this position is in loss of -20 pips so we may have balance margin of USD 9740 or 9400 or 9160 available for the next trade.
Now any new signal comes then we will use 3 or 5 or 7% of balance margin available in that trade.And trading going so on if further any new signal comes.
This strategy works on both side in case of worst cases it saves us from margin calls and on the other hand in successs trades cases it gives return on total margin i.e. on cumulative basis.
One other benefit is that we don’t use often SL since and let remain position open and we met target even have seen big virtual loss (not booked) in any trade. If we closed our position early because of fear of loss and after that our previous target met, in this condition we feel regret .
Some other Strategies
1. Double Quantity Technique (DQT):- It is well known fact like other market forex market is not certain and risk is also the part of forex market.
Some time when any signal is given it might be price go in opposite direction after the signal, in this situation we use Double quantity technique to make best possible average of the trades by adding another quantity with double quantity than previous one in the same pair. And for this signal lower the TP to make lower the risk.
When this Double quantity order gets closed it gives us two benefits:-
i) Effectively Double pips since we have used double quantity
ii) Make Average price of the previous order and price become lower and we can exit at much early price by revising new target if feeling not better in the trade.
2. Four Times Quantity Technique (FTQT) :-
Same as DQT we often use FTQT if price reach far away from our first trade to make the average price more better. This is used rarely because highly risky.
Benefits same as DQT
Important Note:-
The above mentioned techniques works well if we follow our money management strategy strictly.And maintain our backup for any disaster.So please never use greater amount of margin in any trade. Be on safe side.
There is a good saying “ Earn safe and earn long even it is little”
3. Hedging:-
Hedging is defined as holding two or more positions at the same time, or after some time later then first position in opposite direction where the purpose is to offset the losses in the first position by the gains received from the other position.
Usual hedging is to open a position for a currency A, then opening a reverse for this position on the same currency A. This type of hedging protects the trader from getting a margin call, as the second position will gain if the first loses, and vice versa.
However, traders developed more hedging techniques in order to try to benefit form hedging and make profits instead of just to offset losses.
In this you can gain as well as save yourself from margin call. In our signals we also often use this technique and successful most of the times.But it requires a lot of consideration.
It is very important not to get a margin call. This can be maintained by a large equity, or a fast efficient way to transfer money between brokers.
Problems:-
There are some genuine problems of investors , traders that their brokers provide that certain mimimum quantity is mandatory to trade.
In this case we suggest you to either manage ur margin money according to our system or change your broker to a flexible one where you can trade with small margins. And easily can avoid margin calls.
Some brokers that are suitable to our strategy:
http://www.marketiva.com/
http://www.liteforex.org/
Note :- If you need further assistance please do not hesitate and mail to us at contact@forexgrandmaster.com or join us at yahooid forexgrandmaster or skype id forexgrandmaster.
Risk Disclosure: Unique experiences and past performances do not guarantee future results! Testimonials herein are unsolicited and are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading stocks, futures, options and spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.http://www.forexgrandmaster.com/
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