Today is the Chinese New Year Eve and I will like to wish all readers who are celebrating Chinese New Year like me a Happy Goat Year.
I will be attending gatherings and visiting to relative’s places this week and therefore will not be able to reply some of your emails this week. So please pardon me as Chinese New Year is a very important day for me.
Enough of me, it is time again for me to update you guys regarding the performance of my Break The Bands Strategy which is a strategy within my Forex Street University Course.
This month is a period of high volatility and I bet it has something to do with the CHF currency issue as well as the Greece issue in Europe.
Despite the issues and high volatility, the break the bands strategy continue to perform well which is something that I am very glad of. In fact, there are 2 strategies that are not performing so well this month and trend strategy is one of them.
Because of the high volatility, a few of my trend strategy trend got stopped out and then price started to move in the direction of my trade.
In the past where the volatility is normal, the retracement of the price will not trigger my stop loss and I usually get to the profit point. However this is trading and we as traders have to bear with it.
For those students who are using the trend strategy this month, do not be disappointed as the strategy really works and it has works for me for a very long time.
However since you are also using other strategies that I have taught you, I believe that you are making quite a decent income from trading this month like me.
In fact, you can also see some of the break the bands strategy trades below where the price nearly hit the stop loss and then reversed to hit the target profit.
Information about Break The Bands Strategy
The Break The Bands strategy is formulated by me for my own trading and you will not be able to learn it elsewhere. Do note that personally I used this strategy only on the 15 minutes chart but feedback from students tell me that it works pretty well on other time frames as well.
Do note that this strategy does not have 100% winning percentage. In fact, all my strategies do not have 100% winning percentage as there are no such strategy on earth. If you want to become a profitable trader like me, you will first have to realize the fact that there is no way you can win 100% of the time.
What we traders look for is a strategy with at least 70% winning percentage and risk reward ratio of 1:2. With such a specification, you will find that you will be profitable every single month in trading like me.
Some readers thought that break the bands strategy is just as simple as waiting for the price to break the bands and they are absolutely wrong. There is a process where you need to use to verify if the trade is valid or not. This is to prevent you from getting into more losing trades and this is a techniques that I have derived over the years to allow me a lot more winning trades than losing trades in this strategy.
As for the entry, there is also a technique for it so that you can identify the best entry point so that you can grab more profits.
Below are the details of each trade
- 12th Feb 2015 : Breakeven
- 3rd Feb 2015 : +50 pips
- 5th Feb 2015 : -25 pips
- 9th Feb 2015 : +50 pips
- 10th Feb 2015 : +50 pips
- 6th Feb 2015 : -25 pips
- 10th Feb 2015 : +50 pips
In total, 7 trades were triggered with this strategy and out of them, there are 4 winning trades, 1 breakeven trade and 2 losing trades.
Profits = 4 x 50 pips = 200 pips
Losses = 2 x 25 pips = 50 pips
In total, I made 150 pips profits with this strategy so far for this month. (Equivalent to $1,500 based on trading 1 standard lot per trade)
I understand that a lot of you have been very cautious when looking for a forex course as there are a lot of lousy courses that are created by marketers trying to make money from those of you who are interested in trading. These people are not real traders and this explains why those strategies that they teach do not work. In fact, I have purchased several low quality courses when I am new to trading and therefore I understand your concern.
You can take a look at my course but do not rush into buying it, have a feel of the way I teach in those articles and videos in this blog before you decide if this course is for you. There is no point in getting a course where you do not like the teaching style.
For those of you who are not in any forex course and are still struggling in your trading, you can take a look at my Forex Street University Course below
If you will like to learn how to trade from me, you can take a look at my Forex Street University Course below