Forum > View Topic
by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 2330
Forum Topic:

USD

Discuss USD
 
jontrader
Texus, United States
Posts: 0
2 years ago
Feb 23, 2017 13:11
You can make money buying and selling the same currencies at the same time. We are now coming to the heart of how to make money using the no stop, hedged, forex trading strategy. In the previous articles in this series we discussed trading without stops, not being concerned about which way the price goes and places to cash in on profitable trades. We are now going to explain how it is possible to make money buying and selling at the same time using the grid structure.

One should always be able to cash in at a gain no matter which way the market moves when trading the no stop, hedged grid trading system. The only way this is logically possible is that one would have a buy and a sell transaction active at the same time. This sounds like trading suicide to most traders but let's take a closer look.

Let's assume that a forex trader starts trading with a sell (sell 1) and a buy (buy 1) when the price is at a level of say 1.0100. The price then moves to level 1.0200. The buy transaction will then show a gain of 100 pips. The sell will be negative by 100 pips. At this stage we would close our positive transacion and add 100 pips to our account. The sell is now however carrying a loss of -100 pips. The grid system requires one to make sure that the trader can cash in on any movement in the market. To do this one would again enter into a sell (sell 2) and a buy (buy 2) deal at this level (level 1.0200).

Now for convenience let's assume that the price moves back to level 1.0100 (the starting point).

The second sell (sell 2) has now gone positive by 100 pips and the second buy (buy 2) is carrying a loss of -100 pips. According to the rule of cashing in positive deals at grid levels you would close the sell (sell 2) at a gain of 100 pips which you can now add to your account. This makes the total cashed in at this point 200 pips (sell 2 and buy 1). Now the first sell that remained active has moved from level 1.0200 where it was -100 to level 1.0100 where it is now breaking even.

The four Forex trading deals now magically show a gain when added together:- 1st buy (buy 1) cashed in +100, 2nd sell (sell 2) cashed in +100, 1st sell (sell 1) now breaking even and the 2nd buy (buy 2) is -100. The gives a total profit of 100 pips. We can own cash in all our deals and celebrate as we have made a profit of 100 pips.

Please make sure that you are comfortable with the above calculations. You may have to reread and draw the movements on a piece of paper to make sure you understand the concept.

This formation is the 100% retracement formation where the price moves up to a grid level and then returns back to the starting grid level and results in a nice gain for the forex trader. There are many other market movements that turn this strange "buy and sell at the same time" activity into gains. The next article will cover the 50% retracement formation which produces the same amount of profit.

There will be much more on the no stop, hedged grid trading system in future articles in this directory. Don't miss them.

Dave P
washington, United States
Posts: 0
4 years ago
Oct 8, 2015 10:57
It will be interesting to know the Republican's take on USD specially Trump and Carly. The next debate is even more interesting since its Titled "Economy". Here's Everything you need to know about the upcoming October 28 CNBC Presidential Debate Schedule. http://gopdebateschedules.com/cnbc-gop-republican-debate-schedule-11
roobin
bambai, India
Posts: 0
5 years ago
Apr 21, 2014 7:09
nzd usd

h4 . pattern:bat
djellal
LAUSANNE, Switzerland
Posts: 531
5 years ago
Apr 4, 2014 17:31
this is amazing to see how markets like cheap $usd and are worried about the end of QE. OMO boost S&P... at next good NFP markets will CRASH !
djellal
LAUSANNE, Switzerland
Posts: 531
5 years ago
Apr 4, 2014 14:28
USDJPY USDCHF buy on the dip... target 105.50y and 90.50chf
djellal
LAUSANNE, Switzerland
Posts: 531
5 years ago
Apr 4, 2014 14:14
what is up guys ? where are you ?
djellal
LAUSANNE, Switzerland
Posts: 531
5 years ago
Apr 4, 2014 13:12
NFP Median estimate 200K (200K private) Feb reading: 175K High est 275K (Deutsche Bank) Lowest 155K (MET Capital

if the figure is above 250k long $USD accross the board and short S&P and DOW. If just above 200k long USDJPY USDCHF


IF NFP is below 150k short all indexes and buy the chf and xauusd. if we are just below 200k short usdchf
djellal
LAUSANNE, Switzerland
Posts: 531
5 years ago
Apr 3, 2014 22:18
FED Policy - New Economic Indicators to Watch

In previous meetings the Fed had indicated that they were focused on the US economy attaining full employment, and that an unemployment rate of 6.5% was being used as an employment goal. Unemployment is now 6.7% and there was some question about what the Fed would do if they hit their employment goal, but we’re not yet seeing broad economic growth they were hoping for. To address this, the Fed indicated it would focus on a range of statistics including labor market measures, inflation, and other financial developments. This will give the Fed more flexibility in assessing the overall health of the economy and taking appropriate action.
Qingyu
manchester, UK
Posts: 1763
6 years ago
Dec 23, 2013 20:02
anyone have idea on USDX and US CPI correlation?
DaveO
N.Cornwall, UK
Posts: 5733
6 years ago
Dec 14, 2013 18:40
WTF-- not all is as it might seem ?
http://www.mauldineconomics.com/outsidethebox/wtf