July 23rd, 2007 expert
What are the most common problems YOU as an online Forex Trader face??? (Any trader for that matter)
# YOU get the direction wrong
# The market whipsaws and takes out YOUR stop and then reaches your target.
# YOU get your stop wrong. Too small when they should be big and too big when they should be small.
# YOU cash in at the wrong time only to see the market run another 200 pips in the direction you where in.
Because of the ongoing market dynamics these problems occur with mechanical and manual trading systems
Imagine a trading system where you:-
* YOU can cash in a positive deal no matter which direction the market moves.
* YOU don’t need stops because deals are hedged by other transactions / options.
* The system is so mechanical that it can be traded without charts.
To good to be true?
Not so. Using the INVESTMENT GRID system we simply setup a series of hedges (Self financed transactions) which effectively allow you to cash in on EVERY move of the market (up or down). No need for stops.
Background to the Investment GRID System.
Many financial organisations use hedge and forex option principles to setup low risk trading processes. The magic system sets up its own network of hedges which allow you to cash in on EVERY move of the market.
This INVESTMENT GRID system has been marketed for thousands of $’s with a money back guarantee if any purchaser can prove that the system did not work using any currency over the last 15 years. No refunds have ever been made. Over the years we have made some changes to refine the system. We are now offering the INVESTMENT GRID system to be traded on a subscription basis.
What makes this system so unique:-
We believe that the average trader is so focused on trading one transaction at a time that they loose sight of what they are try to achieve (Make lots of money from trading). They can’t see the wood for the trees.
The INVESTMENT GRID System is based on the philosophy that says: Why not invest in hedges placed above (say 1000 pips) and below (say 1000 pips) the market which allow you to cash in on every buy and sell move in the market. As the market tend to trade sideways and retrace, much more than it trends, with careful currency selection your hedges way never be hit for years and years and in the meantime you are cashing in on every move of the market. The money generated can exceed the cost of the hedge very quickly a thereby eliminate the risk very quickly.
The INVESTMENT GRID system is therefore not a true trading system but more related to an Investment on which continuous returns are being generated (ROI). It has been developed by financial and actuarial people rather than traders and is therefore a different approach to maximising income from the natural movement of the market. See the examples below: Sometimes the investment can last 1 hour and sometimes the investment takes days or weeks to mature profitably.
Conventional trading
We recently mentored a competent trader who had generated 700 pips during June making over $ 6 000 in the process. Not bad for a month of skilful trading. He did 160 trades with an average stop of 40 pips. During this period the trader had invested an amazing $ 60 000 in having stop losses (160 transactions x 40pips x $9.50per pip). Some were hit and other not. Using a fraction of $ 60 000 the trader could rather have invested in a hedging system which would have allowed a much freer way of trading and would have eliminated many of the stop out encountered. The INVESTMENT GRID system can easily be adapted for further optimisation by competent traders.
Why not add up (calculate) all the negative (stopped out) transactions you have had in the last month as well as the risk you took on the positive transactions and you will be amazed at how much you risked (In $ and in pips) for the return that you made. If you do this you will start seeing the benefits of using hedging to finance stops rather than being stopped out.
The INVESTMENT GRID system investments using hedges.
Very Simple examples of the concept:
The market goes up by 100 pips and then down by 100 pips. Cashed in $200 (you benefit from all moves and no concerns about stops being hit.) less the cost of the hedge $ 100 = Profit of $100. No more risk. Start a new investment.
The market goes up by 200 pips and then down by 100 pips. Cashed in $300 (you benefit from all moves and no concerns about stops being hit) less the cost of the hedges $200 = Profit of $ 100. No more risk. Start a new investment.
You may not need any of your own capital after a number of transactions.
What are the key success factors impacting your trading returns when using the Magic system.
? You need to use currencies that have a low spreads.
? You need to use currencies that have a low over night interest charge as some currencies may not move over say 100 pips every day.
? The size of your “cash in move” should be 100 pips or more depending on the volatility of the market.
? The market must move – doesn’t matter in which direction.
How do I start trading the INVESTMENT GRID system:
The system is easy to trade as all the entry orders are preset to cover a 1000 pip movement in the market. The system only requires you to replace cashed in transactions on the GRID as soon as possible so that you can cash them in again in the future.
The system is published regularly on our website and a new investment group is started every Monday. Every Monday a small change is made to the investment criteria. You are free to move from one group to the next.
For the 1st month we strongly suggest that you demo trade the system. Mainly because the psychologically this is not a trading system but an investment process and it takes a while for traders to get comfortable with the new concept. They for instance keep on looking at the charts and trying to manage the process.
You need either 2 trading mini accounts to facilitate buy transactions and sell transactions in the same currency at the same time, or alternatively a broker mini account that allows the above. The hedges will be created in these accounts.
To trade live you will need $ 5 000 available to invest. Depending on the market conditions when you start, you may only end up risking as little as $1 000 to setup the hedges. The balance is of the capital may not be needed at all! $ 5000 in capital can hedge a move of 3000 pips so you have plenty.
What returns has the system generated.
The returns of this system are proportionate to the size of the cash in (50pips, 100pips and 150pips and 200 pips), the currencies used, the interest rates charges by brokers on overnight deals, the market phases, time started etc. Each user of the system applies these variables according to the size hedges they can afford. Adding more than 1 hedge results in exponential increase in returns rather than just doubling returns.
This is the 1st time that the investment GRID is being offered on a subscription service. We will be using a set of variable best suited for the subscription service and wherefore there is no track record. We would rather be conservative and not give an indication of the returns enjoyed.
We would strongly suggest that you demo trade your 1st month subscription to access the profitability of version of the system that will be traded for the subscription service.
The Grid system is traded as a subscription trading service. You can enroll for this service by subscribing for $24.95 a month on the following link - http://www.forextradersupportservices.com/subscribe.html
Alternatively I see that information regarding a similar hedged trading methodology is available at www.fxcm.com/hedging.jsp
This is not a completely mechanical system and choosing the appropriate currency to trade, the grid size and what to do in a trending market takes trading experience and that is why it is presented as a subscription service.
Posted in Grid investment system, Trading with NO stops, Sideways trading markets, Automated transactions, ENTRY STRATEGIES USED, Relative strength of currencies, EXIT STRATEGIES | No Comments »
