Forex Trading Strategy Hedge Hog GBP CHF - forex trader from home

Forex Trading Strategy Hedge Hog GBP CHF ~ forex trader from home

This is known Hedge Hog strategy but with diffrent currency pair, diffrent set up, incredibly high returns and drawdown, but i think it is really worth a look.

Here is what to do:
Every day at 24:00 GMT go to your account and put on Hedge Transaction on GBP/CHF or with open price at current level.
Set Take Profit: 20 pips
Set Stop Loss: 450 pips
for both transactions (LONG and SHORT)

I made back tests for last 3 years and this are the results:
leverage 1:10 (starting capital 10 000$, lot size 1 lot)
3 pip spread included in results
system shows average 13,37% monthly return
largest drawdown is 4 100$ which is about 41% of starting capital
Maximum loss in single trade -284 pips


I know that drawdown and maximum loss are very disappointing they are quite high, so you may want to decrease leverage from 1:10 to 1:5 drawdown will be then much more acceptable, but ofcourse avg. return will be only 7% monthly.

If you are interested then go ahead and try this system out with a demo account.
As always email me for spreadsheet with backtest results.
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Forex correlation - forex trader home office

Forex correlation ~ forex trader home office

When treading stocks traders can take advantage of volume which is very usefull when trading technically, forex do not have volume, you maybe saw tool which shows volume on charts for example meta trader has such option but it is only diffrence between close and open price, but fortunetly when trading forex, we can use something diffrent and even more usefull then volume, currency correlation.

Most (if not all) currencies pairs are correletated in some level, it is mainly because of Forex structure, in fact it can be called dollar and anti dollar market, face it dollar (despite it is getting weaker and weaker every day) is still the most important currency, so US economic news has impact on all currencies, but that is not even a point.

When trading forex we trade two currencies, lets make it EUR/USD for sake of example, if we predicted it is going up and we are always right :> then what about USD/CHF? If there are US news that move dollar price down, then at the same time when EUR/USD is going up USD/CHF MUST go down, i think it is logical no more explenation needed.

So how to take adventage of currency correlation?

First of all go to www.mataf.net and checko out how much and which currencies are the most correleated ones (i can tell you know that it will be EUR/USD and USD/CHF but shhhh check it out by yourself) at the diffrent days diffrent cross pairs can have diffrent correlation value, pick the ones with value about 80 or -80, and remeber to use timescale which is suitable to your trading style, if you trade intraday then it will be stupid to look at 20 day correlation are you with me here?

Second, egzamine the charts. If you choosed XXX/USD, YYY/USD and USD/ZZZ and from your technical analysis it looks like first to will go down and third will go up then ther is very high probability that very strong and quick move in your direction wil occur, enough said.

Now you proboably know what to do, check correlation, check charts and set your positions :)

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CBR has no intention to change structure of forex reserves Ignatiev - forex trading home business

CBR has no intention to change structure of forex reserves Ignatiev ~ forex trading home business

Russia’s Central Bank has no intention of changing the structure of the foreign exchange component of its gold and foreign exchange reserves.

“That component is diversified well enough,” CBR President Sergei Ignatiev told the international banking congress in St. Petersburg on Thursday.

The dollar component constitutes half of the foreign exchange reserves and the euro component, 40 percent. The other currencies are the British pound and the Japanese yen, the latter accounting for less than one percent of the reserves.

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Forex Trading Strategy Hedge Hog EUR CHF - forex trading business plan pdf

Forex Trading Strategy Hedge Hog EUR CHF ~ forex trading business plan pdf

I have recently done some reaserch on Forex to find strategy that will be easy to trade no double meaning when it comes to entry points, takes minimum amount of time, and ofcourse is profitable.

Here is what to do:

Every day at 24:00 GMT go to your account and put on Hedge Transaction on EUR/CHF or with open price at current level.
Set Take Profit: 10 pips
Set Stop Loss: 330 pips
for both transactions (LONG and SHORT)

I made back tests for last 3 years and this are the results:
leverage 1:10 (starting capital 10 000$, lot size 1 lot)
3 pip spread included in results
system shows average 4,16% monthly return
largest drawdown is 2 100$ which is about 21% of starting capital
Maximum loss in single trade -129 pips


Now what makes this strategy succesfull, first of all trading time, you put on transaction at the beginning of asian session which is often reanging about 30 pips so we have got higher Stop losses to prevent us from loosing capital, (in fact stop losses could be removed) and small TP to takesome profit.

If you are interested then go ahead and try this system out with a demo account.
Also email me for spreadsheet with backtest results.
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SAFE lifts forex quotas - forex trading home office

SAFE lifts forex quotas ~ forex trading home office

China will scrap quota restrictions on how much foreign exchange domestic companies can buy to finance their overseas investments, the latest move in a string of measures to relax the countrys forex controls.

Under the new rules, which will take effect on July 1, domestic companies will be allowed to use their own foreign exchange holdings, buy foreign currency from regulators or borrow from both overseas or domestic lenders to invest abroad, the State Administration of Foreign Exchange (SAFE) said in a statement posted on its website yesterday.

Overseas investments refer to companies setting up subsidiaries, mergers and acquisitions, the foreign exchange regulator said.

"The policy revisions will help companies go abroad strategies and meet their increasing demand for conducting overseas investments," it said in the statement.

"The move is not surprising and is in line with the countrys changing forex management policy," said Li Yongsen, an economist with the Renmin University of China, referring to the countrys new policy of encouraging households and businesses to hold more foreign exchange.

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