Trading Strategy

We will reveal the most profitable trading system, strategy, and tips step by step. Trading systems metioned below are trademarks of LearnForexPro.com and had been created by our trading specialists under intesive backtesting for a long time. So please be respectful and dont be a copy cat!

We are not giving trading systems based on Technical Analysis due to these reasons :

1. Most of big banks, hedge funds, and other big financial institutions trade using Fundamental Analysis. We have also tested that Fundamental and Logical Analysis both provide greater results and are more reliable than Technical Analysis
   
   
2. According to our research, Technical Analysis could not give a constant and stable trading result compared to Fundamental and Logical Analysis .
   
   
3. There are lots of Technical Analysis Trading Resources out there (such as forex e-book, articles, books, and technical trading systems. Some of them are free to download. There is one good e-book to download if you want to use technical analysis. The title is "Trading For A Living" by Elder Alexander).

These are our top trading systems:

1. Quantum™ Trading System (New !)
   The basic of this trading system is placing multi positions to average all losing positions. One important factor is the natural law of balance. We recommend you to use Robot (Expert Advisor) in order to trade safely and conveniently

NOTE :
Above simple strategies may not bring "optimal" profit as you wish. To earn higher profit we recommend you to use our ultimate and proven automated trading Expert Advisor Super Hedging EA (Free) with up to hundreds percents monthly profit live result.

Forex Tutorial

• How Forex Trading Works
• Why currencies are always traded in pairs ?
• Forex Quote, Bid, Ask (Offer), and Spread
• High, Low, Open, and Close
• What is Long / Short ?
• What are point (pip) and Contract Size (Lot) ?
• Margin and Leverage Ratio ?

How Forex Trading Works
Trading forex is exchanging 1 currency to another currency to get benefit from changing price rates of a currency, compared to the other one. For example :

A trader makes a profit by Buying Great Britain Pounds (GBP)

Trader's Action	Great Britain Pounds (GBP)	US Dollars (USD)
A trader purchased 10,000 pounds in the beginning of February 2007 when the GBP/USD rate was 1.9800.	+10,000	-19,800 *
The following day, the trader exchanged his 10,000 pounds back into US dollar at the market rate of 2.0000.	-10,000	+20,000 **
In this example, the trader earned a gross profit of $200.	0	+200

* $10,000 x 1.9800 = US $19,800
(The trader bought GBP of 10000 by selling USD of $19,800)
** $10,000 x 2.0000 = US $20,000
(The trader sold back GBP of 10000 by buying again USD of $20,000)

Trader's Action	Meaning
Buy EUR/USD	Buy EUR by selling USD
Sell EUR/USD	Selling EUR to buy USD

Why currencies are always traded in pairs ?
While forex is about exchanging a currency to another currency simultaneously (buying 1 currency and selling the other at the same instance) that is why currencies are always quoted in pairs, for example GBP/USD, EUR/USD, etc. You will gain from differences of traded currency price rates

A currency pair depicts a quotation of two different currencies. The first currency in the pair is the base currency. The second currency in the pair is labelled quote currency or counter currency. Such a quotation depicts how many units of the counter currency are needed to buy one unit of the base currency.

Current forex quote displays GPB/USD = 1.8500, this means to BUY 1 pound GBP needs 1.85 USD. For example the quotation EUR/USD 1.2500, while Euro is the base currency and USD is the quote or counter currency.

It means that one euro is exchanged for 1.25 US dollar. If the quote moves from EUR/USD 1.2500 to EUR/USD 1.2510, the euro is getting stronger and the dollar weaker. On the other hand if the EUR/USD quote moves from 1.2500 to 1.2490 the euro is getting weaker while the dollar is getting stronger.

Cross Rate is an exchange between two currencies that does not include official currency of a particular country which the exchange is taking place.

For example a transaction of GBP/JPY is taking place in the US. Then GBP/JPY is considered as cross rate for United States.

Try to understand this :

Currency Pair	Price Chart is moving	EUR (base)	USD (quote)
EUR/USD	Upward	Stronger	Weaker
EUR/USD	Downward	Weaker	Stronger

You can also say that if we Buy EUR/USD, it is the same as we are buying EUR (base currency) and at the same time we are selling USD (quote currency).

Buy EUR/USD -> Buy EUR / Sell USD
Sell EUR/USD -> Sell EUR / Buy USD
Here is another example :

Pair EUR/USD:
If you predict that EUR will be stronger than USD, then you can Buy EUR/USD.
If you predict that USD will be stronger than EUR, then you can Sell EUR/USD.

Pair USD/JPY:
If you predict that USD will be stronger than JPY, then you can Buy USD/JPY.
If you predict that JPY will be stronger than USD, then you can Sell USD/JPY.

Forex Quote, Bid, Ask (Offer), and Spread
The quotation of a currency pair usually consists of two prices.
Bid (usually lower than Ask) is the price at which a market maker or a brokerage is willing to buy the base currency in exchange for the quote currency (or we could say, bid is the trader's selling price).

Ask or Offer (usually higher than Bid) is the price at which a brokerage is willing to sell the base currency in exchange for the quote currency (or we could say, offer or ask is the trader's buying price). So please note that Ask or Offer is always higher than Bid

Conclusion:

1. Bid is the price at which trader will get while he sells (trader’s selling price)
2. Ask / Offer is the price at which trader will get while he buys (trader’s buying price)
3. Bid is usually lower than Ask.

Spread is the difference of Bid and Ask / Offer. The smaller the spread the more profitable to trader
If the quotation of EUR/USD is 1.2293/1.2296, then the spread is EUR 0.0003 (3 points or pips)
Forex quote example :



Please note :
If you open Buy (going Long), you buy with Ask price, and will have to use Bidprice while selling it back (liqudating/closing, stop loss, and taking profit also use Bid)

If you open Sell (going Short), you sell with Bid price, and will have to use Askprice while buying it back (liqudating/closing, stop loss, and taking profit also use Ask)

Position	Open with	Close (TP */SL **) with
Buy (Long)	Offer Price	Bid Price
Sell (Short)	Bid Price	Offer Price

* TP = Profit Taking price
** SL = Stop Loss price

While we are Buying (going Long) with Ask, we have to pay attention to Bid at forex quote table / list. Bid must be HIGHER than Ask price we initially bought (the price at which we opened the position) in order to earn Profit

While we are Selling (going Short) with Bid, we have to pay attention to Ask at forex quote table / list. Ask must be LOWER than Bid price we initially sold (the price at which we opened the position) in order to earn Profit

Example :
A trader opens BUY (Long) GBP/USD at 1.9902 (Ask), in this case, if current Bidprice is still at 1.9899, means the trader’s position is at floating loss of 3 pips. To earn profit you have to wait until current bid price goes above 1.9902. You may notice that each time you open a new position, there are initial negative pips at theSAME amount as the spread of corresponding pair you use. This initial negative pips are caused by spread charges

High, Low, Open, and Close :

1. High : The record of highest price reached at the time range from opening to the closing of a specific timeframe. (example : for chart with 5 minutes timeframe, High price means the highest price of the corresponding 5 minutes chart)
2. Low : The record of lowest price reached at the time range from opening to the closing of a specific timeframe. (example : for chart with daily timeframe, Low price means the lowest price of the corresponding daily chart)
3. Open : Opening / initial price of a specific timeframe. (example : for chart with 5 minutes timeframe, the first / opening price of the current time frame is 2.0000. This means Open Price for current timeframe is 2.0000)
4. Close : Closing / ending price of a specific timeframe. (example : for chart with 5 minutes timeframe, the last / ending price of the current time frame is 2.0050. This means Close Price for current timeframe is 2.0050

What is Long / Short ?
LONG or open BUY means buying a currency with the expectation to sell it at higher price.
Traders earn profit if the price they bought is lower than the price they sold. (profit while the chart is moving upward / profit from a increasing market).
Example : A trader opened BUY EUR/USD at 1.1500, he sold EUR/USD at 1.1525, in this case he will earn 25 points profit. Please remember, to get the profit, a trader has to sell back (liquidate or close or settle) what he has bought.

Upward movement of currency pair indicates Base currency of the pair is getting stronger than Quote currency. Example : EUR/USD chart increase indicates that Euro becomes stronger than USD. EUR/USD decrease indicates that Euro becomes weaker than USD

The price used to OPEN BUY / LONG is Buying Price (ASK) and the price used to close / liquidate / sell back is Selling Price (BID).

LONG position is usually known as BUY for short

SHORT or open SELL means selling currency to anticipate decreasing value, then buy it back at lower price
Traders earn profit if the price they sold is higher than the price they bought. (profit while the chart is moving downward / profit from a decreasing market).
Example : A trader opened SELL USD/JPY at 110.50, he bought USD/JPY at 110.00, in this case he will earn 50 points profit.

Downward movement of currency pair indicates Base currency of the pair is getting weaker than Quote currency. Example : USD/JPY chart decrease indicates that USD becomes weaker than JPY. USD/JPY increase indicates that USD becomes stronger than USD

The price used to OPEN SELL / SHORT is Selling Price (BID) and the price used to close / liquidate / buy back is Buying Price (ASK)

SHORT position is usually known as SELL for short

Position	Initial Action	Closing Action	Price Moving Up	Price Moving Down
Long	Buy	Sell	Profit	Loss
Short	Sell	Buy	Loss	Profit

What are point (pip) and Contract Size (Lot) ?
A point (pip) is the smallest number in a quotation of a currency.
For example if the quotation of EUR/USD is 1.2025, a pip is represented by 0.0001. However, for a different currency such as USD/JPY 116.25, a pip will be 0.01. In order to calculate the pip value or “how much you will earn for one pip”, you have to know some additional information such as: contract size (Lot) and the pair used

Example :
EUR/USD contract size : 100,000 units (1 standard lot), 1 pip loss or profit equals to $10. While a trader closes 10 points of profit, total profit he earns is $10 x 10 = $100. The same calculation also applies for loss.

Contract Size (or Lot) is the smallest trading amount / quantity for exchanging currencies.
The common size are mini and standard lot. The standard lot is equal to 100,000 units while mini is equal to 10,000 units.
For example : A forex broker offers you mini lot account, you can trade in incremental of 10,000 units. for example : 20,000 units, 110,000 units, and so on. A forex broker which only supports standard lot will allow you to trade with incremental of 100,000 units. For example : 300,000 units, 1,000,000 units, and so on

Contract Size value (in Lot Volume):

1. 1 Lot : 100.000 unit (or 1 Standard Lot)
2. 0.1 Lot : 10.000 unit (or 1 Mini Lot)
3. 0.01 Lot : 1000 unit (or 1 Micro Lot)

Margin and Leverage Ratio
Leverage is borrowed capital to increase potential return.
With leverage function, a trader does not have to deposit $10,000 in order to trade $10,000. He can give $100 (1% of contract size) as good faith deposit to trade $10,000 while trading at brokerage which offers Leverage 1:100. Leverage is commonly available in ratio, example : 1:50, 1:100, 1:250, or 1:500.

Imagine, if another trader trades forex without leverage. He must have at least $10,000 to trade $10,000 lot (1:1). At above scenarios, both traders have the SAME potential profit but the first trader’s margin requirement is a lot smaller than the second.

Conclusion : Leverage makes a trader with smaller equity to have the SAME potential profit as trader with much bigger equity

Margin is good faith deposit required to open an order.
Margin is temporarily held by brokerage until the order is closed / settled. Keep in mind that margin is held by your broker until the order is closed. Right after the position is liquidated, the margin will be credited back to your balance. Margin is quantified in percentage and affected by Leverage offered by forex broker. Example : Leverage 1:100 = 1% Margin Requirement, Leverage 1:50 = 2% Margin Requirement, and so on.

Lets say, you have $1000 cash deposited to your broker with Leverage 1:100. The maximum contract size (lot) you can trade is almost 1 Lot of $100.000 (almost 100 times the balance). It can also be said that to trade 1 lot of $100.000, the broker needs 1% x 100,000 = $1000 margin

Another example :
You have $500 cash deposit and your broker offers Leverage 1:100. In this case, if you open 1 mini lot (10.000 unit), the margin held is 1% of the contract sizenya (10.000) = (1% x 10.000) = $100 Margin.

Your $100 margin will be locked temporarily by your broker, and the rest $400 can be used to anticipate loss that may occur. While floating loss is approaching $400, you are run out of available margin, if this happens, your broker is going to close open positions to prevent your balance falling to negative.

The benefit of leverage : A trader is able to trade much bigger contract size with a relative smaller fund.

With or Without Leverage ?

Equity	Leverage	Contract Size	Margin Req ($)	Margin Req (%)	Profit	Avail Margin
$15,000	1 : 1	$10,000	$10,000*	100 %	$1/pip	$5,000**
$15,000	1 : 100	$10,000	$100	1 %	$1/pip	$14,900

* Margin Requirement ($) = Margin Requirement (%) x Contract Size
$10,000 = 100% x 10,000
** Available Margin to hold loss = Equity – Margin Requirement ($)
$5,000 = $15,000 – $10,000

From the table above, we can see by using Leverage, trader has an opportunity to use the SAME Contract Size ($10000), but with smaller margin requirement ($100). Potential profit of both cases are also the SAME ($1/pip).

At the other side, leverage can help trader by giving more Available Margin to hold the loss ($14,900 available margin can hold more loss than $5,000)

Big or Small Leverage ?

Trader	Leverage	Contract Size	Margin Req (%)	Margin Req ($)	Profit
A	1:100	$100.000	1%	$1000	$10/pip
B	1:200	$200.000	0.5%	$1000	$20/pip
C	1:500	$500.000	0.2%	$1000	$50/pip

From the illustration above, we can see by using Bigger Leverage, trader C has an opportunity to use BIGGER Contract Size ($500.000), with the SAME Margin Requirement ($1000).

Please note : Lot Size (Contract Size) used will affect pip value.

From the example above, it is clearly seen, eventhough Trader A, B, and C have the same Margin Requirement ($1000) . Trader C have the biggest profit for every pip ($50/pip)

Technical Vs Fundamental Analysis

Basically, forex traders always use two different approaches to make decisions in forex trading. The first approach isTechnical Analysis, and the other one is Fundamental Analysis. But we added 1 more approach which was not included among two approaches above. We call it Logical Analysis.

What does Fundamental, Technical, and Logical Analysis mean ?
Technical Analysis is the art of forecasting price movements through the study of chart patterns, indicator signals, sentiment readings, volume, open interest, and other mathematical analysis to identify trading opportunities.

Fundamental Analysis focuses on key underlying economic and political factors to determine the direction of a currency's value. Fundamentalists predict price movements by interpreting a wide variety of economic information, including news, government-issued indicators and reports, and even rumors. There are a number of fundamental indicators traders may follow that reflect how an economy is changing and gleam insight into Forex market prices to come.

Logical Analysis is an approach to exploit the law of eternal balance in the universe (its like the eternal balance of yin and yang). Forex and every matter in this world are affected by the universe. Hence this approach can be implemented in forex as well. Later we will give you a very profitable trading system to gain an enormous profit based on this method.

Fundamental, Technical, and Logical Analysis. Which one is the best ?
Technical traders usually say that it is impossible to trade on the news, because the market moves so fast. In the other hand, fundamentalists say that only the news move the market and indicator is always a follower.

The big question is what actually moves the forex market? It is trader's expectation and speculation that moves the market! Neither the news nor the graphs move the market. The most dramatic price movements, however, occur when unexpected events happen.

There is another important question you should think of: How much money is traded by fundamentalists, and how much money is traded by technical traders?

We will tell you a little secret in forex industry. Do you know that almost all of big banks, hedge funds, and other big financial institutions trade using Fundamental Analysis? And unfotunately those big financial institutions have the biggest amount of money in the world.

So what is the correlation with forex market? It is very rational and predictable : At the time they open trades (using a large amount of money), the market moves accordingly. What do fundamentals do ? If the news report for a country is better than expected, that country's currency usually gets stronger and moves the price, if it's worse, that currency will be weaker and moves the price to the other way.

Do you know why there is only a small amount of fundamental forex trading e-book taught by forex brokers out there ? This probably has something to do with more profitable nature of fundamental analysis. As you know, some brokers dont like if their customers win. If you win they will lose (they trade against you)

What about technical traders ? It seems that most of technical traders and small traders don't have such a lot of money compared to big financial institutions, even altogether.

For complexity, there are lots of different indicators and timeframes used in technical analysis. At the same moment, each of them are giving different signals.

The conclusion is we prefer to use fundamental analysis compared to technical. Then what about logical analysis ? To be honest, logical analysis the best method to trade forex, as it will give you a constant, reliable, and greatest result almost all the time.

Forex Trading Tips

Trading tips suitable for Technical Traders :
Only use the most common, widely used Trading Indicators and Never trade during important News Accouncement Time.

Trading tips suitable for Fundamental Traders :
Be patient, discipline, use an accurate clock and only trade during important news release.

Robot Forex Trading

The progress of information technology and computerized technology promises an interesting feature in forex (foreign exchange) trading which allows trader to trade automatically with Expert Advisors.

Expert Advisor (usually called robot) is programmed by programming language similar to C++ language to help trader make decisions in trading and overcome the weaknesses of human nature, such as tired, fear, greed, inconsistency, and others.

Expert Advisor (Robot Forex) can perform forex trading execution automatically and relatively faster than human. This is very suitable for traders who want the ease of trading. Trader does not have to spend all of his time to monitor forex market movement, which is generally happened when the trader has floating loss positions.

Expert Advisors (Robot Forex) is able to open new trade, close profitable positions, cutting losses, or money management. But please keep in mind that you can not fully rely on the Expert Advisors (Robot Forex) without understanding forex trading basic and mechanism itself. Traders still play a very important role in forex trading while using robots, as the timing and the appropriate settings of Expert Advisors (Robot Forex) will determine the success of trading.

Demo Performance Report

These Performance Reports were Forward Tested for 24 hours non-stop. Important ! Expert Advisors (Robot Forex) can be used 24 hours nonstop ONLY WITH SUFFICIENT CAPITAL and with ACURRATE settings. Do not use Expert Advisors (Robot Forex) non stop if you are not skilled or with limited capital.

Do not follow the settings below if you do not fully understand Super Hedging Expert Advisors (Robot Forex) characteristic. (very dangerous!) Our recommendation is to use at least 1x capital (Moderate) to trade safe
Disclaimer : Past performance does not guarantee the same future performance