If you are looking for an amazing strategy then read on, i have a Forex strategy to share that allows you to rarely ( almost never ) lose a single trade, well okay in some very rare circumstances you may lose, but highly unlikely with a success rate of over 90%. I know that sounds too good to be true, but it is true and is the reason that so many successful Forex traders make money every week. Below is the strategy.
Look At Yourself?
First off look at yourself, why do you first lose any of your trades? Is it not because you are scared of losing money? If so you are then your own worst nightmare and admit to yourself that you are the main reason for your failures.
Once you do that then you can now adapt to a more successful style that works.
Don’t Risk Big and You Will Make More Money
Secondly if you risk big you will generally always lose, but what if you could risk less and make more. Let’s take the AUD / USD dollar the the moment at just under 1.05. It looks strong and it appears strong but what happens most of the time. It will change its trend, it goes up, then down, then up, then down. So when price is at 1.05 with an all time high in Australia of 1.09 or 1.10 would it not make sense that generally speaking your odds are to the down side. It may go up a bit further, it may go down, so why not profit when it goes either way.. Now you maybe asking what the..? How..? Place a buy and a sell at 1.05 , there is more chance of it going down but lets see what happens..
Okay now that you have a buy look at it this way. You can get 400 to 500 pips if it goes to its all time high and if it drops you can go to Australia’s average low of 0.97 with a all time profit of 800 pips max and it could also go back and forth for a while.
Now here is where the method works:
This method is beneficial when markets are in large ranges for long periods of time. At the time of writing this article, AUDUSD had been moving between the 0.97 cent level and the 1.09 level, which meant a trader could benefit from selling above the 1.05 level on this market and holding or buying below the 1.03 level and holding.
1000 Pip Stop Loss Wins over 90%
What you do is create 2 very low risk trades each opposing each other in the middle of a large trading range, one that can handle swinging over 1000 pips before it hits the stop loss. In the example of AUDUSD, a bit over a 1000 pip range on this market at the time of making this article.
Example in Etoro of a low risk trade using 10 cents per pip.
$100 dollar trade Buy at 10 cent per pip which is x10 risk level. What this means is it allows your trade to swing up and down up to 10 cents against you before you lose that trade. Now Australia at an all time high of 1.09 and 1.10 using technical and probability of the US economy improving this happening is basically impossible. You now then have a absolutely no risk trade. Now on the other hand if it does the most likely and drops to 1 dollar par or lower then you now have a trade over $50 dollars in profit and another trade $50 dollars minus. You can then simply close that trade at its all time high average or all time high low and then open a trade in the direction of the return to the same value of risk. That means that when finally all three trades go into profit you will have made around 150 dollars or more from 3 100 dollar trades, making your account now up to around 450 from 30o beginning.
Please Note – In order for this 1000 pip trade strategy to work one needs to make sure to not do buys at all time highs and sells at all time lows. In order to work this one out exactly, look at the daily chart and write down the average all time high over a long period of time ( up to 6 months as a suggestion ) then write down the average all time low over a long period of time. This is what gives the high success rate.
This Strategy Needs No Rollover Fees – That is Where Etoro Comes In
The only down side to this method is roll over fees, they truly do suck, however like anything that sucks there is always a method around it. By using a Broker like Etoro ( rollover free broker ) for this type of trading it will only cost you 0.35 every weekend meaning even if these three trades play for 2 months it would only cost you around $5, which when you think of the profit is a very small price to holding a pair long term.
Conclusion and Other Ideas
So in conclusion it is all about risking less to make more, being more patient and trading at the right places. Like as an example you would not do this method if for some reason the trade was at a all time high, instead you would do a sell with the same risk level giving you an absolute 100% success no matter what and then be ready for it you could ride that 100 dollar trade down in a sell trade and at every 40 pip profit mark, place another trade and then when the second one goes into forty pips profit place another trade. Then at the same time place a stop loss into the profit to protect yourself from loss, then once you have over 10 trades all in the green and down 400 pips or so from the high then that is a good time to take profit on half and then allow the rest to go further if you desire. That way you risk little on a retraction because you already profited so much on the initial five. Thus giving you an all round risk level of almost nothing.
If you have any further thoughts then of course feel free to comment your thoughts on how to never lose a single Forex Trade below. All comments are appreciated.