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USDJPY & EURUSD

USDJPY & EURUSD. Hedge System. What You Need. Be ready to trade at exactly 5:00am EST Keep an FXCM Demo Account A Second Account (Demo or Live). Rules. At 5:00am EST: Buy USDJPY & EURUSD in your Demo account #1 This Puts you 7pips in the hole automatically

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USDJPY & EURUSD

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  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. When the loss of the spread goes to 0, You Sell USDJPY & EURUSD Sell Signal 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. At net +6pips is realized, Close both positions and bank the profit. You’re done for the day and 6pips richer. Bank It!

  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 tolook 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 atsupport 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 tradecould 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 somewhatcorrelated.  I don't want that.  I arbitrarily picked 30 pips to helpkeep myself out of trouble.  The system has worked for 60 days withoutthe discretionary part, but I think it's good to have it as a backupplan.

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