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INTRODUCTION :
My fellow traders ,I must admit,trading forex is not easy.It has been over a year and a few months
now since I started trading.Over the course I have blown more than 8 accounts which I frequently
reminisce every time I socialize with my fellow traderets.I must say I look forward to blowing more
accounts lol .
Anyway,about 7 months ago i ventured on a quest to find the Holy Grail.Unfortunately I have not
found it yet,but through the course of my quest I have managed to discover three strategies of
which my favourite being the HERMENZO TRADING STRATEGY which is based on swing trading
correlation.And it is through this strategy that I can now stand before people and also call myself a
consistent and profitable Forex Trader.I believe that we are at the verge of a break-through in our
pursuit to discovering the Holy Grail. I spend 70% of my forex time researching and only 30%
trading,hence my discoveries come from hours and hours of research,midnight coffees,skipping tests
and staring at my laptop.my inquisitivity has been founded from the conceptualized uncertainty of
the forex market.All this has so far been worth it though,I have grown tremendously in terms of my
analysis and I am still learning every day.
Tools : RSI(14)
Unmanipulated chart(ECN Broker chart or investing.com chart)
6.This one is very very important,I always tell it to my students in every trading session.FOREX IS
NOT ABOUT WHERE YOU GET IN,IT IS ABOUT WHERE YOU GET OUT!!!
Quick question for you to answer before going to the next page ; is it possible for you to buy EURUSD
with 0.02 lot at 15:30 SA time and I also sell EURUSD at 15:30 SA TIME,on the same day as you.and
we all end up making profit?
Lets say you placed a buy on the blue line on the 2016-08-17 and I also placed a sell on the very
same blue line,same time.you would have made profit if you closed on the 19th(green circle) and I
would have made profit if I closed on the 1st September(red circle).so it is not about where you get
in,it is about where u get out.hence next time you place a sell then a few seconds later you see one
FOREX GURU giving out a buy signal on the same pair do not close your trade,you are not looking at
the same exit levels.Composure!
Look at the above chart.Our RSI reached the undersold level 2016-07-05(where the red vertical line
crosses the green horizontal line).The market value was 1.3167 at the time.So that was a signal that
if the market goes below that point we should keep buying and put 1.3167 as our TP.
So on the 10th the market moved down to about 1.2900,which means we had an opportunity to
place a buy and immediately after placing the trade put 1.3167 as our TP.The shaded area
represents the opportunities we had to place trades.
Had you placed the trade on the 10th at level 1.2900,the market would have went against you by +50 pips.but it would have came back on the 2016-07-12 to hit your TP(where the blue light crosses
the green line) which is about 267 pips profit
On the chart above,the RSI reached the overbought level on the 2016-07-12 of which the market
value was 1.3231(where the red vertical line crossed the green horizontal line).So that was a signal
that if the market goes above the signal line you must sell and place 1.3231.
The market then went to 1.3300 on the 13th,so if u placed your trade then it would have came back
to hit your TP on the 2016-07-13. Which is about 69 pips profit.
You do not need a perfect entry,selling at any point above the TP level will still give your profit.if you
see the market at 50 pips above the TP level then you call still enter,that would mean 50 pips profit
for you when the market comes back.
REMEMBER : It is not about where you get in,but about where you get out!
Ohh look,the RSI reached the undersold on 2016-08-08 at market value 1.3034,and it is not below
that undersold level on 1.2998.so let me buy and place my TP at 1.3034
Look again,the RSI reached the overbought level on the 2016-08-18 with market value of 1.3068 and
went above it,so let me sell here at 1.3147 and my TP as 1.3068 and see what happens.
AFTER
BEFORE
AFTER
BEFORE
AFTER
NB:If the market just touches the oversold/overbought level and makes a u-turn it means there is
no signal,hence no trade!!!!also,if the RSI tries to recorrect itself(which is very unlikely on 4H,but still
possible) ,that will lead to the value where the market reached the oversold/undersold level
changing also.so that means u will also have to adjust your TP.
CLOSING NEGATIVE TRADES :
-Close a losing buy if the RSI goes to the overbought and the trade is still not in profit
-close a losing sell if the RSI goes to the oversold and the trade is still not in profit
NZDUSD has produced over 13 signals from 1 January 2016 and only has one loss signal to date.
The loss was about 110 pips but your wins would have given you more than 1200 pips.so that's still
pretty good.
anyway,on the 3rd June 2016 you would have received a sell signal,then the market would have
went against you.The RSI would have reached the oversold level on the 18th july 2016.(Hence giving
you a buy signal) so you must exit right there at a loss and wait for a clear buy signal.
if our initial position was a buy the same principle would have applied.You wait for the RSI to reach
the overbought level then get out.
YOURS
HERMAN NTLADI
For any questions about the strategy or any input on how to make it better please do not hesitate to
contact me .
Email address Address : ntladih1232@gmail.com
Facebook : HERMAN DE ADMIRE MR-NTLADISIR