Welcome to Fx Sailing Weekly trading!
Please spend some time to read carefully the following manual before you invest real accounts
This is a medium term conservative strategy for major currency pairs. We identify opportunities at the larger timeframes, and entering the market buying or selling the strongest vs weakest currencies. All trading is executed and managed manually through the MT4 platform. ( No EA’S).
If you decide to follow the signal, read the money managment section carefully and make sure you have understand everything about it before you invest real money. Once you agree with the money managment, you have to commit 100% to the trades and not intervene. If you do so, you alternating the strategy to something else which is no longer the original signal and the most probable is that you will lose money. You can make this strategy more conservative if you wish, to fit your personal risk tolerance by reducing the suggested lot sizing. I suggest the maximum safe lot sizing, so you can set it lower than that, but never higher.
How to safely follow the strategy:
Money managment is key determinant factor for generating positive results so i suggest that you follow 100% the risk managment described. Its your own responsibility to adjust the lot size according to the rules given bellow. So, my job is to do the trading and your only job is just to set up your lot sizing properly.
Maximum open positions:
There will be up to 4 open trades at the same time
The maximum drawdown will be 6% for each one of these positions, so the max theoritical drawdown of all 4 open positions can be maximum 24% but no more,as hard stops are always used in every trade.
Hard stop loss:
The stop loss can vary from 2% to 6% and it depends from our entry level and what looks as a good buffer for the trade to breathe. Notice that stop loss is counted in $ and not pips and the reason is that every pair doesn’t have the same value per pip.
As an example, a move of 100 pips in EUR/GBP is 129.76$ but a move of 100 pips in EUR/NZD pair is
only 67.49$!! So imagine that you win a 100 pip trade in EUR/NZD (67.49) and you lose a 70 pip trade in EUR/GBP (90.80$)
Guess what! You will have gained 30pips on your account but you will have lost - 23,31$ !!
So i suggest you start to think in terms of dollars instead of pips for this strategy as it trades all the currencies not just the eur/usd.
Risk managment and position sizing:
As each investor has a different account balance, different set up must be done on the lot sizing, so every investor risks the same % of his/her account, regardless if the account is a small 300$ or a fat 100,000$. As your account growes you can increase accordingly the lot size, or if you withdraw your profits, you must again diminish your lots properly.
For the X amount you will invest in this strategy we will risk 6% per trade or 24% for all 4 open trades.
An investor has a 1:100 account and 2500$ available for this strategy only.
The maximum risk per trade should be 6% of the 2500$ which is 150$. To achive this, one must set 0.1 lots per trade to follow the strategy. That way if all 4 positions are open, 0.4 lots in total, the max drawdown will be 600$.
An investor has a 1:100 account and 850$ available for the strategy.
Again, the maximum risk per trade should be 6% (51$) so the individual investor should set his/her account at 0.03 lots per trade, ( 0,12 lots when all 4 positions are open)
I will help any investor that has trouble setting up the correct lot sizing and make the calculations for him. You can easily do it yourself though using this calculator
-Set your account currency
-Set 6 at the %risk
-Set 150 stop loss
-let the default eur/usd, hit calculate and see the appropriate lot sizing
By doing this set up properly, the % of drawdown will be the same to all investors and safe enough to follow the strategy.
Important : You should follow the strategy with fixed data mode and adjust the lot sizing by yourself as mentioned.
I don’t give great importance on the amount of profits, as my main concerne is risk managment and cut loses. The amount of profits are not so important .The important thing is the stability of the strategy in the long run, and then returns can be huge.
But to give a median objective return, that is around 200-300 pips per month.
Now you can convert these pips to the pip value of your proper lot sizing and find out what money this will be.
You can withdraw your profits when ever you want, but then you will have to set up again your lot sizing according to instructions given.
Any questions will be gladly answered.
As someone said," trading is a marathon not a sprint".