Hedge Fund Trading System
Learn the trading strategy that trend-following hedge funds are using to profit from the financial markets.
In this Forex trading system, you will discover how I trade for a living. It is not only me who is using this (or similar) trading systems. There are at least a few dozen of trend-following hedge funds that use the same approach to make money on the financial markets. I am sharing my knowledge with all new/experienced traders eager to learn a consistently winning trading strategy that has been working for me for the past 5 years. I would love to make this system accessible to as many traders as possible and that is why I wanted to make it free. I have tried to keep it as concise as possible, so not wasting your time with unnecessary details. In the end- time is money!
The goal of this course apart from showing you a trading system that has been working for me for a long time is to try to protect you from the dangers of the financial markets. I have been day-trading (unsuccessfully) for some time before discovering that longer-term trading is actually the only way to profit from the markets. I know a lot of you are extremely eager to make money quick, but this is not the point of this course. I would like to show you a system that works in the long-term. More and more people are trying to make quick money in the financial markets nowadays, but less and less are making money in the short term. As some of you already know- trading is a zero-sum game. In other words, for every winner there is a loser. That’s what I will try to help you with- how to be on the winning side in the long-term.
I am sorry if my English is not perfect, but it is not my native language. I still believe that for trading there are no barriers and traders should follow their dreams. I will do my best to help you reach your goals (financial), but there is one thing I cannot do for you- I cannot teach you how to be disciplined! That is something that you need to discover yourself in order to be a successful trader…
Fx crosses are probably the best in trading (rangebound) environment. Currency crosses present the best opportunities for the range-trading trader. That is why, it might be a good idea to stay away from the ranges, since they might cost you. In contrast to the crosses, commodities and majors offer traders the strongest and longest trending opportunities. Currencies like the Eur/usd, gbp/usd, aud/usd, usd/cad etc. Should be considered as trending. While gbp/chf, aud/chf, nzd/chf, etc. Should be considered as range-trading and thus ignored for the sake of the successful implementation of this system. Let’s recap again, which instruments are good for trending and trading environments.
Determining where to place the stop loss is pretty easy. Once I have a signal in place, I am looking for the previous day high/low depending on the direction you are taking. For example, if you are going long, I am looking at the previous day’s low and place my stop there. Alternatively, if this is too close or too far away (so the risk/reward ratio would be too low) I do place my stop with the help of the ATR indicator. What I do sometimes is calculating 2X the daily ATR rate and placing my stop just under that point. Have a look at the picture below to see where I would have placed my stop in different crossover situations.
For the take profit, you can either trail your position with a 50-100 pips stop, or use weekly/monthly support/resistance levels to take profits. You need to make sure that you ride a position for as long as it is possible, because that is where you make the big bucks. You can end up having a few small winners
and a few losers, but the point is to have at least a small number of home runs (huge winners). An approximate result after 10 trades by correctly using this system would be:
– 1 Huge winner
– 5 Losses
– 4 Small winners
The important thing here is to make sure that you get to hold long enough to have a huge winner. And that is when the fun part starts…
There are a few last things I want to mention instead of conclusion. I will list them below:
-There is no holy grail trading system- the only holy grail money.
-management skills.
-Cut losses fast.
-Let winners run for as long as possible.
-Be patient and wait only for the best setups, because 99% of the money is made from the sitting and the waiting.
-Always go with the higher time frames- do not be tempted to.
-go on a time frame lower than 4 hours.
-Erase the get rich quick attitude from your mind.
-Never risk more than 2% of your trading capital in any individual trade.
Free Download :
Hedge Fund Trading System.part1.rar