Frut_Presentation_Needed_USDSEEYouOK.ppt

Presentation gives detailed explanation

1. USDJPY & EURUSD
Hedge System

2. What You Need
Be ready to trade at exactly 5:00am EST
Keep an FXCM Demo Account
A Second Account (Demo or Live)

3. Rules
At 5:00am EST: Buy USDJPY & EURUSD
in your Demo account #1
This Puts you 7pips in the hole
automatically
If the loss doubles to or -14, Buy USDJPY
& EURUSD in account #2
If the loss reduces to 0 (Break Even), Sell
USDJPY and EURUSD in Account #2
Close both positions at net +6pips

4. Here is how it works
5:00am Buy USDJPY
and EURUSD in Demo
account #1

5. Sell Signal
When the loss of the
spread goes to 0, You
Sell USDJPY &
EURUSD
Sell EURUSD and USDJPY in account #2

6. Buy Signal
If the loss doubles to
-14 pips, buy
EURUSD & USDJPY
Buy EURUSD and USDJPY in account #2

7. Bank It!
At net +6pips is realized, Close both
positions and bank the profit.
You’re done for the day and 6pips richer.

8. What happens if it blows up?
You can set a limit on the number of pips
you are willing to let it go against you and
close it
You can set a limit on the number of pips
you are willing to let it go against you
before getting involved and taking action
to add positions to one side, close one
side, etc.

9. Notice
Be aware of news events and avoid trading this
strategy on days of volatile events such as NFP,
Trade Balance, Current Account, and other
events. These events have the potential to blow
this strategy to smithereens
On a normal day this strategy can take
anywhere from 15min to 24hours to net the
profit.

10. Personal Notes From Rob
The max drawn down I have seen in 60 days of trading this (with the
inventor) is -60 pips, before a profit was eventually reached, within
24 hours every time.The inventor stops at the mechanical end, and
I think that is a potential disaster.
The discretionary end:
=====================
1.If the total loss on the trade is more than 30 pips, I start to
look for ways to double up on one side of the trade and then get out
of it faster.This has included watching for a reversal move at
support or resistance, or a breakout at support or resistance.

11. More Rob Notes
2.The reason this side of the system exists is because this trade
could really go south in a hurry and leave me 100 pips in the hole --
probably not more than that over a day, since the pairs are somewhat
correlated.I don't want that.I arbitrarily picked 30 pips to help
keep myself out of trouble.The system has worked for 60 days without
the discretionary part, but I think it's good to have it as a backup
plan.