FOREX PROFIT GUARD SYSTEM

Overview

The "Forex Profits Guard System" is a manual trading strategy designed to help traders generate consistent profits in the Forex market. The system emphasizes simplicity and power, making it accessible to both novice and experienced traders. The book introduces the concept of Forex trading and its benefits, especially highlighting the advantages of mini Forex trading for beginners with limited capital. Mini Forex trading allows traders to control a $10,000 currency position with a smaller initial deposit, offering flexibility and reduced risk.

Buy and Sell Rules

System Rules

  1. Identify the Trend: Use the T3 Histogram indicator to determine the trend direction.
    • Red bars indicate a downtrend.
    • Green bars indicate an uptrend.
  2. Identify Wave Direction: Use two indicators to confirm the wave direction:
    • Super Signals Channel (Green/Red Arrows)
    • W.A Explosion (Green/Red Bars ABOVE Yellow Line)
  3. Match Trend and Wave Direction:
    • Buy Signal: Green Arrow, Green Bar ABOVE Yellow Line, Green Trend Bar
    • Sell Signal: Red Arrow, Red Bar ABOVE Yellow Line, Red Trend Bar

Entry, Stops, and Targets

  1. Entry Point: Enter a trade as soon as all conditions for a buy or sell signal are met. The order of appearance of the signals does not matter.
  2. Stop Loss:
    • For Buy Signals: Set a stop loss 10 pips below the entry arrow.
    • For Sell Signals: Set a stop loss 10 pips above the entry arrow.
  3. Targets:
    • For Buy Signals: Price should be above the pivot line; targets are resistance levels.
    • For Sell Signals: Price should be below the pivot line; targets are support levels.
    • Close the trade when the price hits the target level or when an opposite signal is generated.

Example Trades

  • Example Buy Trade: Green Arrow, Green Bar ABOVE Yellow Line, Green Trend Bar
  • Example Sell Trade: Red Arrow, Red Bar ABOVE Yellow Line, Red Trend Bar

Additional Considerations

  • Avoid Trading During Major News Releases: Important news can cause trend reversals, so it's advisable to avoid trading during such times to minimize risk.
  • Multi-Time Frame ADX Indicator: While not part of the system's core rules, this indicator can help gauge the strength and direction of trends across different time frames.
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