I have been forward testing this strategy and so far so good.
To find out the background of the strategy, check previous post here:
Disclaimer: This is for educational purposes only. I am not liable for losses or profits incurred.
Get to your charts 1-2 hours before the Australian session starts.
(If you don’t know what this means,. you shouldn’t be trading live money)
1. Check the daily renko direction and confirm the stop loss level.
2. Check the daily swing high level and confirm the CIW and TMA extreme area to see if they confirm a swing reversal trade against the renko direction or a trend trade in the original renko direction.
3. Check the 1 hour line area price behaviour to confirm divergence between the EURO assets if you wish to take a trend trade in the original renko direction or convergence between the EURO assets if you wish to take a swing reversal trade against the renko direction.
Stop losses should never exceed 30-50 pips. You can net 100 pips weekly and 300 pips monthly using this strategy. And with such tight stops and a high win rate, you can use a lot size of 0.1 for every $1,000.
This strategy is excellent for part time traders and since it is for trading the EURUSD, it is relatively safe. Do let me know if it works for you.
This is a weekly chart of UK bonds/yield/Pound versus US bonds/yield/dollar…what can you see?
I have continued my research on correlated asset classes and it has been very fruitful.
Forward testing on EURUSD using the MOEX asset…here are the results so far.
I take one trade per day. Usually during the Asian session into the London session. I target 30-60 pips. Looking good so far.
I’m hoping to use this to make 25% minimum monthly returns on EURUSD trading alone.
It’s ridiculously simple and straightforward and I intend to teach it to part time traders, once I have perfected it.
Yours in the quest for success & significance,
Olufukeji ‘Ejiimi” Adegbeye, CWM
To be a successful trader, you must:
– Understand dealer counterparty risk and trade it.
– Identify/create correlated/synthetic instruments and arbitrage the divergence.
So, I spent today researching on correlated asset classes specifically for the euro.
I have been looking at LIBOR spreads, swaps, OIS etc…and I think I finally found something that could be an edge for me when trading EURUSD, especially for spotting potential daily reversals.
It’s an asset class traded on the Moscow Exchange.
See pictures below.
Numbers don’t lie.
I like trading the financial markets, not just because of the potential for profit that it gives, but because trading, with all its numbers and charts tell a real story…about history, politics and the economy…
Read more here:
Leading indicators are a good place to start your fundamental analysis research.
Watch how this analyst used leading indicators to determine investor sentiment in China.
He kept mentioning building permits as a leading indicator…as well as M1 money supply.
I’ll research them once I can find some spare time!
Let’s also look at how we can track ISM versus 10 yr US Treasury notes…
I had a heated conversation on Skype with a trading buddy of mine.
And this was the summary.
I remember a trading mentor of mine telling me to identify where banks offload their dealer counterparty risk and use those assets to determine what banks wish to do.
It led me to do some online research and I stumbled on a few good resources for my global macro analysis, such as :
So I decided to post here.
“How about this for correlations. If the EUR/USD goes up and the USD/CHF goes down, is the market buying Euros and selling US Dollars and how would you know. Well EUR/CHF answers that question since it should rise along with the EUR/USD. If it doesn’t, its a false EUR/USD move so that high can be sold”
This was said by Brian Twomey here:
Brian is the author of: