1. No category

The 2.44 Currency Strength Meter
and the ForexGrail Trading System.
The objective is to purchase a currency that will be
strengthening (going up in price), and pay for it with a currency that is
expected to weaken. The currency strength meter included with the
ForexGrail package allows a trader to see strength and weakness.
In order for the currency strength program to have data, you
will need to have a copy of the MT4 platform running with the
DDE enabled in order to get their data for the currency meter.
Dozens of brokers now use MT4 from MetaQuotes or www.FXCM.com
Or mt fav http://www.fxpro.com/ . It is not important to have
the MT4 broker be your live broker as well.
1
Many versions of MT4 have different pairs of currencies available
and the 2.44 will create a special file in the directory called
“FX4Caster_Diagnostics.txt” . This file lists the pairs of currencies
available to you from the MT4 provider you have chosen. The software
rewrites after polling every time you launch the program. This allows
you to mess with various MT4 brokers and compare the pairs
available.
http://www.fxpro.com/
The data feed DDE is turned off by default so you must go
to “tools” and click on “options’ and choose the “server” tab
inside of MT4..
Save the file to your desktop and only launch after enabling
the DDE. I know you are probably excited to get going but keep
reading before installing it. You will need to download the MetaTrader
platform in order to provide the software with data.
The setup program should have placed an Icon on your desktop.
Once the MT4 is running and the DDE enabled, double click on it and
wait a few minutes for activation to complete.
2
This is the currency strength meter. It’s a new way of seeing
what all the currencies are doing individually. Un-checking the
currencies you don’t need will allow you to see just the pairs you
are interested in. (see the help section)
As currency traders, our mission is to make money trading the
difference in strength between currencies. The ForexGrail will show
you which currencies are trending over time by displaying weakness
or strength in line form.
You can adjust the snapshot timing from 1 second to 30 by right
clicking anywhere in the chart. Just use the defaults at first. The
chart will let you adjust the timeline and display the individual
currencies one at a time or in combination.
Currency strength is everything when trading foreign exchange
prices.
All we need is the free DDE included with each MetaTrader charting
package. In order for the meter to have something to read, the MT4
must be installed and running. When MT is running correctly, the little
green/red box should indicate KB transfers like the image below
shows.
3
The value of the dollar can’t be compared to just one currency. It has
to be looked at in comparison to how it has been performing against
other world currencies. As foreign exchange traders, we usually watch
a pair chart showing the difference in value of two currencies.
(Commonly called a spread chart.) Forex uses spread charts.
In order to trade the forex market correctly, determining the
strength of an individual currency is vital.
If you think in terms of individual strength and weakness, and apply it
to an individual currency, you are thinking like a foreign exchange
bank trader. Traders from other markets look at one instrument fixed
to the US dollar. Forex charts measure the difference between two
completely different entities.
4
Throughout the day all currencies are changing in value as perception,
news, politics, and economics plays out in their respective countries.
One currency may be going up in value due to a piece of great
economic news, while another is losing its value from a political
scandal indicating future uncertainty. This interplay is what we are
seeing when looking at a forex chart. However, using only one chart
tells us only part of the story.
Only by observing interaction among many currencies can we
determine how a particular currency will most likely perform in the
future.
The value of world currencies is always changing. One interesting
concept that is known by all world market traders is that each
currency will go through a period of trending. This means it will
continue to become stronger or weaker until something happens to
change things. Being able to electronically measure and weigh each
currency as it interacts with others is the secret to trading forex.
5
6
7
Your trading decision
1.
Pick out a few currencies that are moving toward
strength or weakness using the currency strength
meter. Watch the lines form for at least a half
hour so you get a feel for how they are moving.
Find one going higher and another going lower.
2.
Open a Forex pair chart containing the two
currencies you have decided to look at from step
one. Use the 5 minute pair chart.
Do not use a bar or candle. Use a line mode only.
3.
Apply a 50 period simple moving average to the
chart. Determine if the price line is about to cross
over the 50 SMA or not. This is your potential
entry spot.
8
4.
Now make a 7 period simple moving average line
applied to the five minute pair chart. The 7 sma
determines your potential exit spot
Our job, as day traders is not to predict the direction of
currencies for days. We shouldn’t care. Our trading decisions should
only be based on what is most likely to happen to a particular
spread for the amount of time we are involved in the trade.
9
PRICE LINE ONLY.
(No candles or bars)
Use the line chart. No bars or candle views. When I talk about a
crossing of lines, I am referring to the price line crossing the
moving average line. Not the crossing of moving averages
themselves. Sometimes, coincidentally, all three lines may cross.
5 MINUTE PAIR CHART
The five minute line chart should give you about two days view of the
action.
10
50 SMA can show you entries
(Simple moving average on close price)
All charts will have the ability to place a line called a “simple moving
average”. Later you may want to fine tune with other settings but for
now, use the simple moving average close price line.
7 SMA can show you potential exit spots
(Simple moving average on close price)
The simple moving average smoothes out the price line so we can see
average prices during the five minute period
Various currency setups like these happen several times a day
on various pairs. Not all crossings of the two SMA’s have potential.
You must confirm the strength meter readings with a currency on
its way up and another on its way down.
For example:
11
If you see that the CHF and EUR are moving away from each
other on the currency meter, open the corresponding currency pair
chart from your broker and apply the 50 and 7 SMA to it. Not every
currency will work every time. You must look for both conditions to
line up before attempting to trade it. This isn’t a race.
Find a few potential strong and weak candidates. Keep your eye
on them for an hour or so. You will begin to feel the various trends
developing. Don’t stare at charts. Just keep the meter going while you
go about your business. When the conditions show themselves you will
be ready.
Some days the setups are seen more often than others. Most
mornings in New York or the beginning of the European session I
usually see two or three potential trades on the common pairs.
Evenings in North America, expect at least one good setup.
12
You must get used to observing all the various pairs for this to
work. Do not just wait to see if one or two of your favorite pairs will
work. It is important you select the correct pair of currencies for the
trade. Some times result in more profit than others.
13
What moves the Forex Market
In this ebook, I will assume that everybody knows the basic
terms in forex, such as pip and currency pairs. If not, you can refer
to your brokers manual to get the mechanics or definitions. The
way I trade does not encourage using anything but a line and two
simple moving averages combined with the currency meter.
TEST THIS SYSTEM OUT WITH DEMO MONEY ONLY.
1.. Use a 50 SMA and 7 SMA on a 5 minute line (Not candle
or bar) chart.
Two moving averages on a five minute chart will give us
potential entry and exit points. I suggest not messing around with the
settings at this point. Don’t try to reinvent the wheel. They work fine,
so leave them alone.
The objective is to trade with your eyes ahead, not backward.
What the chart did prior to you opening a trade has no significance.
The past is past. We are trading the future. The market will show you
a variety of patterns in hindsight, but base your decision on what it is
most likely to do in the minutes ahead. It doesn’t matter where it has
been or where it may be going tomorrow.
Always keep the 50 and 7 SMA on a five minute chart as a
rule for finding trend direction. Keep in mind that we are not talking
about long term direction. Just intraday. ( One session lasting from 4
to 12 hours)
You need consistency to succeed. I do not recommend
using any kind of robot. We all know magic systems don’t exist.
You need to apply common sense and a little sprinkle of
intelligence. If you don’t have that, get out now!
Predicting the future market direction of one world currency is
enough of a task. Two is even harder. Using this simple system, I
suggest you go with the flow instead of fighting it. We only need to
know which currency is moving toward or away from a long term
trend. It shouldn’t matter which currencies you trade. Only that you
see a clear trending direction developing over a variety of time charts.
Instead of trying to pick the exact bottom or top, why not go
with the trend. The five minute chart with a simple line lets us know
14
where we are and the conditions where the 50 and 7 cross price is
really just following the general trend.
Messing with one indicator after another, brings nothing
consistent into your day. You need habits. Good ones of course. When
you can take a look at a chart and say to yourself, “Hmm. I have seen
this before. I know what to do.” You will be on your way to making a
living in this exciting industry. Jumping in and out on whims and
instinct is disaster.
The heart of the ForexGrail system is really you.
A trading system is only as good as the person or people
following it. It is you that makes this work.
Watch the currency meter for a few days. Get used to seeing
trends develop.
All trading involves risk. You may lose several trades in a
row so you need enough money to ride it out. No system is
capable of 10 out of 10 wins consistently. It is you who will
make any system work.
Let’s get back to the moving averages;
Used on their own, two SMA’s (simple moving averages) on a
cross will give you a certain ratio of winners to losers according to
what’s going on in the market. It’s a gamble. The essential ingredient
in this system is the currency strength meter but another important
element is the use of a price line instead of candles. We are watching
(with meter confirmation) for the cross of the price line and the SMA.
15
The ForexGrail system specifies;
50 SMA for finding entry (when the price line crosses).
Exit when the 7 SMA crosses with the price line.
The fifty period simple moving average tells me the trend for my
time period (intraday). It tells me the way the market is trending. (At
least for the time period I am interested in) Basically, what I want
from the fifty line is to know what the average price has been during
fifty, five minute sessions. The trending direction. The 50 SMA
below tells us at a glance what that spread has been doing.
Wait until price line has crossed the fifty to enter a position in
the same direction as the trend you see on that pair chart. I like to
wait for at least 6 pips above or below just to make sure it’s not a fake
out.
Think of the moving average in terms of price, not
position.
See it in a different light by observing it without the price line at
all. Do this on your charts. You are seeing the actual market direction
without noise. Candles, bars,Indicators, colors, are all noise.
16
The reason I use 50 and 7 SMA’s are the same reason I look at
the five minute charts. I’m used to them. They’re comfortable. They’re
familiar and trades go fairly quickly. This is not scalping but it is
intraday. Get comfortable with it. I have come to depend on the five
minute chart as my way of seeing differences.
Set your Forex Price Chart to line mode.
All charts allow you to view price as a line instead of a bar or candle.
The forex grail system requires lines to show price.
By the time the two moving averages cross, the move is over. Those
are lagging indicators so I don’t want entry or exits based on crossing
of the averages. It has to cross with price.
With the currency meter confirming an entry, we get a jump on the
other traders. I don’t use bars or candles. I am only interested in the
average of price. It filters noise and price peaks. It displays at a
glance the true average direction a currency is going.
17
Although this system is easy to follow, there are lots of demons like
emotion and lack of patience that could get in the way. You must be
strong. Make the determination now, that you will follow the ForexGrail
trading system with the numbers I give you before trying to make
changes. Do not make this any harder than it is. It doesn’t matter
what charts you use.
Don’t use bars or candles for this system. They will shake you
out of a trade too early and cause you to make decisions on emotional
triggers. When applying the ForexGrail system, use the price line. Just
use a simple line and get used to seeing it. Keeping you focused on
the line and it’s impartially (pointing down or pointing up) will let you
make better trading decisions.
Enter 6 pips after the crossing of the 50 SMA and price. The 50
is showing direction and the 7 will be marking an exit. The picture
below shows my entry after meter confirmations on the morning I am
writing this.
18
THESE SETUPS OCCUR ALL THE TIME WITH VARIOUS
CURRENCY PAIRS.
I have often said that the candle was a conspiracy to keep
beginners from seeing true market action. They sometimes turn green
too early and red too late. Almost like someone is programming them..
Hmmm. These fancy things just clutter up what you are seeing. (I
know it will be like weaning a heroin addict to get you to toss them,
but you must not use candles or bars for this system to work
properly.) Keep this as simple as possible in the beginning. Make
yourself stick to the rules.
The mechanics of making trades is something you will have to wade
through on your own using your brokers’ manual. Each platform is
different but they all follow the same routines. There is no particular
broker this system works with. It works with all brokers. You need to
contact your broker platform help section, not me. You need to get
used to making trades with your platform in demo or simulator mode.
Absolutely, positively, do not start using real money until you have
proven to yourself, and most importantly, the others in your life that
may be affected, that the system works and you have clearly
assessed and discussed the risks involved.
19
Basics first.
We are trading the difference in price between currencies. Charts
extract the difference in price between two separate and quite distinct
currencies and then display the result. The currency meter on the
other hand, displays the result of an interaction between all currency
pairs.
The line going up on a forex pair chart means a rising price for
the currency that has first position in the pair.
EURUSD line up means EURO getting stronger when compared
to the US dollar. The EUR is the base currency and the USD is the
counter currency.
The line going up on USDCAD, means the US dollar is
strengthening against the Canadian Loonie. The USD is the base.
The line going up on the GBPUSD means the pound is getting
stronger. In return the USD is weakening.
We are buying strength or selling weakness of individual
currencies, not pairs. Pro’s talk about individual currencies since
they understand each is an entity of its own. There are countries
and economics behind each one. Drill it into your head to think in
terms of individual currencies.
The meter is perfect for reinforcing the idea that each currency
has unique characteristics depending on factors at home and
abroad. Strength and weakness is directly tied to price. Price should
reflect absolute strength or weakness.
The US dollar is gaining strength.
This means the line on the EURUSD chart is going down.
The EURO is gaining strength
This means the line is going up on the EURUSD chart.
20
But… there is a crucial element involved in the ForexGrail trading
system. In the first statement where I said the US dollar is gaining
strength when the line goes down, I could have said that the Euro
is losing strength. Both are correct. For all I know by watching one
chart, the US could be weak or it could be strong…or the Euro is
weaker. I don’t even know if either currency is doing anything at all
without looking at other currencies that may be going strong and
weak while pulling this pair along.
When you give currency trading thought, you have to admit that in
essence, the entire market symbolizes strength and weakness. The
ForexGrail system understands what makes currencies work.
The currency market trends.
Trending among currencies is a characteristic acknowledged by all
foreign exchange experts. All currencies trend at different times.
The tendency to trend is the basis of the ForexGrail trading
system. Other trading systems ask you to find the bottom or
top. That’s a suckers game. This is the way the market works.
Little players at a hundred to one odds are the only market
participants silly enough to guess at tops and bottoms. Don’t
play the suckers game! Just follow the ForexGrail system. Don’t
try to outsmart the market makers.
BE CONTENT WITH TAKING A SMALL BITE OF AN EXCELLENT
TREND.
If you are using a small account with a broker, this is your
survival tip of the day: “You must enter the market with a
steady trend that the market maker must follow.”
Make your entry following the trend of the “real” currency market, the
same one the broker must follow or lose clients. The idea behind the
ForexGrail system is to get in the habit of making a trade with the
trend, not the wave within the trend. The true trend.
If you follow the rules correctly, there will be times the market
seems to be going against you when in fact, it didn’t. You got
caught on part of a wave. Do not pick a volatile time to enter.
21
Do not make the mistake of confusing your chart price with what
your broker has posted in the window of the platform. Charts
and platform prices often differ. Make sure to look at the prices
on your trading platform before making a market order trade.
It would be a ring toss trading with just two simple averages.
More is needed. Lets dissect what the moving averages tell us
before going on.
The two moving averages tell us where to enter and
where to exit trades based on a simple idea.
The tool tells you what all the other currencies are doing in
relation to others. The pictures show the currency meter
displaying what the average strengths and weaknesses are for
various currencies during that instant. Although this display is
crude in comparison to what investment houses use, it serves
our purpose. Remember, you can get fancy later, just follow the
simple system first.
22
The ForexGrail system uses the currency meter to
identify potential candidates for each side of a trade.
It will alert you to the pairs you should be looking at in
more detail. You can alternatively look at all the pair charts if
you have multiple monitors. The currency meter measures all
the ticks coming into it from a forex broker and sorts out the
strong from the weak.
Since it uses tick by tick calculations, it has to be viewed
for a while before seeing the trends clearly. The system will
require you to watch the trends as they develop for at least an
hour after the European, Asia, or new York openings to make
sure of a direction to hop onto.
It is precisely the tool you need in order to determine when the
time is right for making a trade. The ForexGrail system, takes
the work out of looking at more than twelve charts to see which
currencies are weak and strong. You will need to bring up the
individual charts for your currency pair choice and fine tune
things.
Let’s begin a typical trade session.
Remember I told you about the ring toss using just two simple
moving averages on their own? They can’t do much more than
tell us during any particular moment in time, what trends seems
to be developing among the common forex pairs. Once we are
able to choose which pairs to keep our eyes on. Here is how I
find the best currencies to trade;
You must take all emotion out of your selection of a currency.
Our objective as forex traders is to extract the maximum
profit from a deviation between two currencies. We trade
the spread. It shouldn’t matter what currency you use to make
money. Sticking with a particular pair or choosing one currency
over another based on familiarity is dangerous. Keep your
emotional attachment to a particular currency for shopping.
23
Let’s get on to finding a pair to trade.
Wanting to know how your chosen currencies are doing in their
interaction with other currency pairs prior to opening a trade is
just plain common sense isn’t it?
In the ForexGrail system, you must trade the currencies that are
moving away, or apart from each other at a fast rate.
This means your first objective is to find one currency that is
trending towards strength, and match it with a currency that is
trending towards weakness.
Makes sense eh? We make our money on spread. The difference
in price between currencies.
Look at the meter and pick a currency that seems to be gaining
or losing momentum as a faster rate than the others. If it is
early in the euro session, you will most like see the EURO and
GBP moving a little faster than the others. New York trading
session will usually move the US dollar around faster than the
others. If you are trading any of the time periods; (Europe, Asia
24
or New York), watch which ones are most active and consistent
for an hour after the opening.
You can do this by looking at a wide range of charts if you
happen to have several monitors or want to take the time to
calculate how each of the currencies involved interact with your
selections. Take a look at this picture. It shows the heart of the
ForexGrail system. It is just a simple tool, but it pulls everything
together. It takes the work out of watching multiple screens to
find strength and weakness.
The currency strength meter is simple in operation.
It looks at all pairs and uses various weighting calculations to
find out how, relative to the others, a particular currency is
doing. It measures individual currency strengths by making
comparisons with how that currency interacts with others.
Strength or weakness is not clear using one chart. In order for
you to figure out if the currency is strong, you have to open
other charts and see if it shows strength against other
currencies.
The currency meter tells you at a glance which currencies are
moving and which charts you should open to take a look. The
meter takes a free data feed from a typical interbank broker and
shows us in real time which currency is most active. It moves all
the time the market is moving. Sometimes very fast, and other
times quite slowly. The meter allows us to narrow down a pair of
currencies to trade.
25
I need a lot of pair charts to keep my eyes on so I settle with
observing one or two that contain a strengthening currency and
a weakening one. Many brokers have various pairs available to
trade. The quantity of pairs can be a factor in your broker
selection. You should always try to find one pair containing both
currencies. In this limited example I will select the CADJPY from
my pair selection with Oanda.
26
CADJPY
The meter and the trading broker can be different. We only need
a data feed (DDE) that gives us currencies on the move. Since
we only want to be alerted to a strengthening currency, the
individual trading price variations among brokers don’t matter.
The currency meter works with all brokers. It uses a Metatrader
DDE which is supplied free by more than a dozen brokers.
Lets apply a 50 and 7 SMA to this chart of the CADJPY and see
what’s happening.
This will be my first chart open after seeing the numbers on the meter.
Before I do anything, I will want to have a look at the Oanda CADJPY
to determine if it is a candidate for my pair. First glance tells me the
trend is definitely in place but the trigger happened a few hours ago.
27
It’s obvious that the Yen has been strengthening against the
weaker Canadian dollar for several hours. In the picture the blue
line is my 7 and the pink is 50 sma.
It doesn’t look like the 50 and 7 will be close to each other for
some time so I will look at my next candidate since this potential
trade could be exhausted. I am looking for a small piece of
momentum in spread just after it starts and before its
exhausted.
28
Do not jump every time you see red and blue. These should alert
you to a developing trend only. They could change. You must
watch what the currencies are doing for a time to get a fix on
their true strength or weakness. You are looking at the meter to
provide you with some clues and save time watching all the
pairs. How will you know if the strength is developing or the
weakness is real? Aha.
Look at the 7 and 50 moving average as guides.
The fifty (50) SMA will show true trend and the seven (7)
SMA shows where things have begun to turn. I always want to
make a long after a cross of the 7 if the 50 SMA is up, and a
short if it’s below the 50 SMA.
I use the 7 period SMA as an exit guide. It tells me that the
market has begun to show signs of turning. Time to get out.
29
I like the one hour view of the 50 SMA to be sure of the long
term trend. Going back to the 5 minute view and the general
trend on other currencies, I can time my entry on the upward or
downward, crossing of the 50SMA.
I am simplifying this example because it doesn’t show the meter
which would be indicating this pair as my best choice and I
would have spent some time observing and checking into any
upcoming economic reports affecting the trade I may be in.
I am not looking to get in as soon as the trend becomes
directional. You will find that many times it isn’t possible or
preferable to get in on the first part of a trend. Waiting and
biting your nails if necessary, until the exact moment and taking
a little bite of the apple is the way to consistently make profits.
30
Give your trade some time to work.
Don’t set ten pip stops with the broker. My hard stops would be
more than most people are comfortable with (50-100) but make
yours at least three times the amount you are going to use for a
mental stop. This system has an exit using the price line and 7
period moving average.
Keep stops above 50 with your demo until you get a feel for
where to place them. It takes a bit of ups and down for the trade
to work.
Take a safe piece of the move. 10 pip stops will kill you. They
are too small. A broker makes money on filling orders. A stop is
an order. You already lost the spread getting into the trade,
getting out means you only need the market to move a couple of
pips and you are out and paying another spread. Keep the stops
high.
I am always looking for the beginning of a trend. I am always
watching for the ones that have already begun for the morning
or session. Sometimes the lights turning red and blue on the
meter during the beginning of my trading day may be showing
peaks and not trends. I want to see steadily rising numbers for
my strong choice. High numbers are not what I want to see.
I want to see a climbing number or declining number.
Just picking the highest number isn’t the idea. You want
to watch the trends developing and moving towards
weakness or strength,
You are trading the spread between currencies. This means you
want to see as great a difference between two currencies as
possible at an increasing rate of change. That’s the profit.
Don’t get attached to one special pair. Sure, if the signals are
there fine, but look around. Experiment with how many pips you
can get with other pairs and how much that translates to in your
home currency.
31
I want in well before the 7 begins turning around.
The best way is to watch it for a while. Try shutting off your
price line and noise to clearly see what the seven is telling you.
The 50 SMA shows direction of trade (long or short) and seven
when to exit. (On the basis of your determination of best
currencies according to the meter)
I’m saying that because you can’t just pick any favorite for this
to work correctly. Once you have identified the potential
candidates for your trade, you need to get into the market as
soon as possible or your increasing spread between the
currencies begins to slow down.
Your personal risk factor is the only thing that will determine
how much money you make.
The ForexGrail system can be used in any time period and under
most market conditions..Even economic reports. It is you who
will have to see the trend beginning and take advantage of it by
selecting a good counter currency. It’s not hard to do using a
few simple instructions.
32
To summarize;
You need the currency meter in combination with the two SMA’s. On
the next page, let’s finish this trade. The 7 is being hit and it is time to
exit.
33
34
Risk
I consider what I do the equivalent of driving a car. Sure, there is risk.
But I am in complete control of the decisions I make concerning my
trading money just as I am in choosing where and how to drive safely.
This is what separates it from gambling.
Watching charts and trading forex is not my lifestyle. I use it to
provide me with a lifestyle. I pick a time when the market is most
likely to make a move, and I do some planning ahead of time to get a
little piece of it.
The mechanics of making trades is something you will have to wade
through on your own using your brokers’ manual. Each platform is
different but they all follow the same routines. I usually make market
orders with a huge stop limit and possible take profit targets. A stop is
just an order. Keep that in mind.
We are trading currencies folks. We try to extract the difference
between separate and quite distinct currencies. Spread trading the
forex market is something people tend to keep quiet about since their
methods and techniques usually involve some indicator carried over
from the other markets where there was no spread against another
quite different entity.
Standard charts go up and down; up means good and down means
bad. In forex, we can trade both up and down.
Currency is not determined by emotions the way much smaller
markets like stocks and indices. Most commodities are ruled by the
speculators’ desires and fears. Not foreign exchange.
Central banks and professionals determine the price relationship of a
currency. What we see on our forex platforms is a contrived market.
There is no single central authority for foreign exchange prices.
Professionals and specialists determine the value of a country’s
currency. We have nothing to do with it. We can only hope to find an
opportunity or an edge by understanding how these folks determine a
35
currency value, which is translated into a price. We only have to find
an opportunity.
Understanding that we buy strength or sell weakness of an
individual currency, not pair, is vital if you hope to become
successful and last trading this type of market.
One more repeat….
How to use the Currency meter effectively.
The simple moving averages will give you a good idea of
when to enter or exit. However, on their own they will not
produce a high percentage of winners. You need the
currency meter to tie things together.
1..The 50 shows potential entry when price crosses the line.
Trade is in the direction of overall trend. Before entering, make
sure the trend meter has been showing a steadily increasing
(Stronger) or decreasing (Weaker) value.
2..The 7SMA basically tells us when the move is
exhausted and has began to turn around. When the price line
touches or comes very close to the 7 line, it’s time to get out and
reassess the market.
36
3..The currency strength meter shows what is weakening,
and what is strengthening.
The ForexGrail system of trading will work well for anyone who
follows the rules. Don’t change them until you have a good feel for
the system. Do not trade with real money until you have proven to
yourself that it will work for you. Once you have things down pat,
you can alter a few of the parameters and get fancy.
Sit down and make a clear plan of action using the meter and
grail system of entry and exits. Make yourself do it on a demo first.
Apply a money management system that works for your personal
situation and apply the rules diligently. It won’t take long. You will
begin to see how to make money in forex the first week.
Always keep leverage low and give each trade time to
work for you. Do not bail out too fast. All good trades move up
and down. This is normal. Expect to stay in the market a while
depending on the time of day.
Notes:
Don’t just jump in right away. Watch for the steady progression
of the numbers on the meter. They will change all the time but still
show you strength and weakness.
Be careful of upcoming economic announcements. Most
economic reports will not move the market out of its prevailing
trend unless there is a very big surprise. Years ago, the market
would spike frequently on these reports but they rarely do now. The
big ones to look out for and you are advised to take your profit and
wait them out are reports like Nonfarm payrolls. Big reports can still
shake things up.
I wish you the very best life has to offer.
Tom Yeomans
37
The simple, yet powerful meaning behind this easy to follow
system is the use of two simple indicators along with a
powerful tool to make you win consistently. Of course, not all
your trades will be perfect. However, using the ForexGrail
system of entry and exit along with a little common sense, will
result in a much higher percentage of winners than you have
been experiencing. Everyone should follow good money
management principles and never risk more than you can
afford to lose. Start with a low leverage trading account and
gradually increase the size of your trades.
Start your MT4 platform with DDE enabled.
Please make sure to read everything before emailing me for
support.
Common Questions FAQ
How much can you make with ForexGrail?
That's a common question. You can make as much as the market will
give you under the circumstances of the day. Any professional will tell
you that the market will give what it gives as often as it feels like.
Everyone is different. All trades are usually unique. If they weren't we
would know we were going to win or lose would we? It’s our unique
collection of skills that will determine what you will make trading.
38
Some people begin with a little money and others have a lot. You have
to get the silly notion of making huge amounts of money in Forex
when starting out. Its probably not going to happen. The people I
know who methodically took the time to develop a good system and
ran it several months proving a profit each time ended up staying in
the game for years with me.
They found a system, applied good money management, and didn't
jump the gun whenever the market moved a bit. If you follow a demo
system for a few months with good results, you should be able to carry
it out live with approximately the same win/loss ratio. Take your time.
This is a tough business that can pay off well. If you don't run before
you learn to walk. Take conservative trades and never play with scared
money.
How often do the setups work?
I can usually see at least two setups a morning. I have often seen a
few more at different times of the day on various currencies. I have no
way of knowing what's going to be happening. All I can say is that
when the correct conditions make themselves apparent, I will be
waiting, This is a waiting game folks. You wait for the right conditions
or you don't make a trade. Stick to that, and you'll be fine.
The idea here is to adopt a system and stick to it. Sit down and write
out your rules for entry and exit. You do it for yourself. You will find
that just about any good system will work if people only stuck to it.
The ForexGrail is a good system. It becomes an excellent system with
the meter added to it.
Everyone will begin modifying and changing after a while. That's fine.
As long as you do not trade with real money until you have perfected a
system that works on paper trading. If you can't make it work on
paper, you don't stand much of a chance with real money. If you
don't have discipline, nothing, even the ForexGrail won’t work for you.
The default directory created when you installed the program is
called “FX4CASTER”. The install file location is at:
C:\FX4CASTER\
Copyright 20011 3157313 NS LTD.
39
TERMS OF USE
THIS MATERIAL MAY NOT BE COPIED AND DISTRIBUTED WITHOUT
THE EXPRESS WRITTEN PERMISSION OF ITS PUBLISHER.
Copyright © 2011 3157313 NS LTD. All Rights Reserved.
No part of this e-book may be reproduced in any form or by any
means electronic or mechanical, including photocopying, recording or
by any storage and retrieval system, without express written
permission from its publisher.
The ForexGrail™ System may not be gifted or resold to anyone, under
any circumstances. Only direct customers of ForexGrail are allowed to
view or be in possession of this material. If you have purchased The
ForexGrail™ System from anyone other than ForexGrail, or someone
officially authorized by them as a vendor, the seller is in violation of
terms that they have agreed to and you are in possession of an
unauthorized, illegal copy. If you believe that you have obtained an
unauthorized, illegal copy, or know of someone who has, please
contact
[email protected]
40
RISK DISCLOSURE STATEMENT/DISCLAIMER AGREEMENT
The information contained on our website and The ForexGrail™
Trading System e-book is compiled for the convenience of the
site’s visitors and customers of ForexGrail, and is furnished without
responsibility for its accuracy.
Trading any financial market involves risk. We at ForexGrail are not
financial analysts or advisors. Before using any of the information in
this e-book we recommend you seek independent professional
legal, tax and investment advice as to whether the information
provided is suitable for your particular circumstances.
Failure to seek professional personal advice prior to acting on this
information could lead to you acting contrary to your best interests
and could lead to the loss of your capital. The information provided
is meant to be a guide only and it must be tempered with the
investment experience and independent decision making processes
of the individual reader. Only risk capital should be used.
By visiting the ForexGrail website and/or downloading the e-book
you agree to hold harmless ForexGrail and its agents for any loss,
financial or otherwise resulting directly or indirectly from this website
and/or e-book, its data, content or lack thereof, materials associated
web pages whether accurate and timely or not.
This e-book and ForexGrail’s website and its contents are neither a
solicitation for an offer to Buy/Sell any financial market. The contents
of this e-book are for general information purposes only.
Although every attempt has been made to assure accuracy, we do not
give any express or implied warranty as to its accuracy. We do not
accept any liability for error or omission. Examples are provided for
illustrative purposes only and should not be construed as investment
advice or strategy.
If hypothetical or simulated performance results are used, these
have certain inherent limitations. Unlike an actual performance
record, simulated results do not represent actual trading. Also, since
the trades have not actually been executed, the results may have been
under-or over-compensated for impact. No representation is being
made that any account will or is likely to achieve the profits or
41
losses similar to any examples shown. Past performance is not
indicative of future results.
By visiting this website and/or purchasing this e-book you will be
deemed to have accepted these terms in full. ForexGrail and its
representatives do not and can not give investment advice or invite
customers to engage in investments through this e-book.
The information provided in this e-book is not intended for distribution
to, or use by any person or entity in any jurisdiction or country where
such distribution or use would be contrary to law or regulation or
which would subject us to any registration requirement within such
jurisdiction or country.
Hypothetical performance results have many inherent limitations,
some of which are mentioned below. No representation is being made
that any account will or is likely to achieve profits or losses similar to
those shown. In fact, there are frequently sharp differences between
hypothetical performance results and actual results subsequently
achieved by any particular trading program.
One of the limitations of hypothetical performance results is that
they are generally prepared with benefit of hindsight. In addition,
hypothetical trading does not involve financial risk and no hypothetical
trading record can completely account for the impact of financial risk in
actual trading.
For example the ability to withstand losses or adhere to a particular
trading program in spite of the trading losses are material points,
which can also adversely affect trading results. There are numerous
other factors related to the market in general or to the implementation
of any specific trading program, which cannot be fully accounted for in
the preparation of hypothetical performance results. All of which can
adversely affect actual trading results.
42