Trend Taking Advantage Why now? Specific Markets / Time Frames - PowerPoint PPT Presentation

‘Rip and Dip’ Alerts • Trend • Taking Advantage • Why now? • Specific Markets / Time Frames Alerts • Examples and tests • NOT a risk management tool • EURUSD short term alerts (10 min chart) • AlertFX details

• Problems with Trading Trend • Waiting for the pullback that never comes • ‘I missed the breakout!’ • Risk points too far away • Solution • Identify relatively minor reactions with momentum (RSI)

• RSI Dip and Rip Alert Rules • ‘reverse’ divergence • Long = RSI = lowest RSI(x) and price > lowest price (x) • Short = RSI = highest RSI(x) and price < highest price (x) • Taking Advantage of Trend • Multiple entries (adding to winners)

• Why Now? • With some exceptions, FX (OK…mostly EURUSD) has been in a range for 2 years • Markets cycle between range and trend • Important to Understand Adverse Conditions • Following tests take all alerts and trail with a 5 day high/low stop

EURUSD Yearly Stats GBPUSD Yearly Stats

USDJPY Yearly Stats USDCAD Yearly Stats

Gold Yearly Stats Crude Yearly Stats

• NOT a standalone system • Determination on when to turn on based on analysis of price pattern (breakout, etc.) • Complimentary to SB analysis

• EURUSD Short Term Alerts • Same entry logic but on a 10 minute chart • Does incorporate stop and limit logic • % of square root of price • 3 hour time limit for trades • Does not trade during Asia • Small repeatable edge

• AlertFX • Recent executions • Disable option • Devices / add-change email • Customize alerts