Forex Trader, Who is the Winner after all

In 1978, Welles Wilder developed the RSI which is considered the core indicator in technical analysis. He is also the author of the book "New Concepts in Technical Trading Systems" which can still be purchased today. 

He remarks this: “markets must win or else there will be no markets” This is compatible with my idea that there is risk in every kind of markets.

Because markets do exist then the better we handle risk, the better we trade and the more likely chance that we will be successful. 

Wilder points to who the winners are. This infers that traders learning to trade need to know the game is played by people who know much more that we do and have been at it much longer.

The picture you should have in your mind is the Shark Tank at Sea World. No one other than those who are highly trained should go into the shark tank and swim with the sharks. There is risk and always an element of uncertainty. But with education and training plus experience people do swim with the sharks. You can do the same thing in Forex. Remember, no one is going to give you anything, you will have to learn it

According to Wilder, “The big winners are the commercial hedgers with huge money to back up their positions. These are the fundamental traders. The second group of traders would be the large speculators who are mostly the big commodity funds. They are technical traders. The last group is the small trader. The small traders certainly outnumber the other two by I would guess a thousand to one. Since only 5% of small traders (over time) end up making a profit you can see where the money comes from to make a market. Fortunately, so far, I am still in the 5%!”

Knowing your role in the markets is crucial. Understanding what is happening in regard to the bigger players can help you make money. It normally takes years to understand this concept. Whether Wilder is a winner is another question but the idea that the big traders move the markets. To become successful it is something all traders need to understand.

This next quote is also a key concept that The FX System is now addressing but from a different angle.

“Since the markets must win, most trading systems can work fairly well for a year or two and they break down to losing as more and more sophisticated market action adapts to defeat the system. So what has changed is that the markets adapt to most every kind of trading system, and it becomes harder and harder to come up with a system that can beat the markets. But, a few of them do beat the markets year after year.”

Taken at face value that makes sense however, what if the system didn’t need to be changed. If you have a system that works and it stops working then the system didn’t change as much as the data that drove the system changed. For example, if you are trading off of a 200 Moving Average and it has worked for a period of time then stops, where did the entry move to. Do we hunt for the next new perfect Moving Average? No, because you won’t find it and if you do it will be for only a certain period of time. What we do, is look at the data. Have prices gone through the MA slightly and to what extent before reversing? 

I am not a proponent of Moving Averages but the point here is that accurate statistical data of the system you are using will improve whether you take a signal, where you take it, to what extent you will allow it to draw down, and when you will get out or take some profit. 

Last, “The trade should be in the major trend direction. It should not have wild gyrations. If possible there should be a nearby support area to provide a reasonable stop. It should be rated high on the COT. (Commitment of Traders.)” 

This is a key concept that needs to be kept in mind. You will find it hard to go upstream. There are many who try and they can make a case for it, but to me it is like trying to drive from Chicago to Atlanta on the wrong side of the super highway. You might make it, but the disadvantages may far outweigh the advantages.


If trading the Forex market was easy everyone would be making money but if you have traded, you know that isn’t true. If you haven’t traded yet and someone told you it is, then they are just flat wrong. There are many smart people who have lost millions and perhaps billions in the market. On the flip side some have made millions and billions.

One of the key things that traders and wannabe traders should learn is how the market works. How and why currencies change from long to short, why currency jump around “noise”, why after news the market might rocket in one direction only to rocket back in another.

I came close to quitting Forex in the summer of 2008. I had lost a bundle on a trade. (A bundle can be relative. It was big enough that I didn’t tell my wife how much for several days.)

I sat in a Starbucks early the next morning wondering if I should call it quits. Reflecting on the trades I had made over the past several years, I was sure, had I taken the other side of most of those trades, I would be rich. Unfortunately I was not making money.

I really didn’t want to quit. I hated the idea of giving up on something in which I had put so much time and energy (and money); something I was sure could be conquered. And being in my late 50s at the time, the idea of going back to work for someone again was more depressing than losing the money.

I had spent a great deal of time and money on trading books, software programs and trading courses. I had been to seminars and read hours of forum posts. I had taken some of the best trading courses according to many),and worked with some of the best traders (according to many). Much of what I had done didn’t seem to help much. It was like having a PhD and wondering, now what?

Sitting in that Starbucks I felt like I had tried every avenue available and there was no answer. It also occurred to me as I thought about what I had learned that in all of it, there was little I could put my finger on that was true about trading. In other words, after all of the study, nothing really showed any level of consistency or reliability.

When you learn to shoot a jump shot in basketball there are fundamentals you follow; position the ball in your hands properly, square your body to the basket, jump while bringing the ball over your head and at the top shoot the ball with a nice easy follow-through. Having done that in my youth I knew before the ball left my hand or as it left my hand whether it was going in. When something went wrong it was easy to check your fundamentals and find the problem.

In trading there was some of that but it was hard to know after all the analysis, what to do. Everyone had systems that seemed to have different rules or fundamentals. I could follow a logical number of steps to a decision but invariably the decision would be wrong more than it was right. And when it was right, it never seemed to be right long enough to offset all the wrongs. I told my wife that I wasn’t buying another book on trading or Forex, “The answer isn’t in any book because I guarantee you, I’ve read them all! ”In my head however, I was thinking, there must be an answer.

The funny part is that I had to eat my words. A week later at Barnes and Noble I read through a book that set me off in a direction that I hadn’t followed before (and I bought it!). I am here to tell you today that the direction was not the correct one but sometimes what seems right, can still be very close to the truth. In this case it set me off in the right direction.

At this point in time I had tried a number of different avenues including: Harmonic Pattern, Candle Stick Formations, Elliott Wave Theory... I had studied Price Action extensively with people like the Hector Deville group. If anything, Price Action as taught by this group of traders is about as close to a fundamentally sound methodology as can be found in trading. I studied confluence and correlation. I studied Fibonacci methods used by Constance Brown in her book Fibonacci Analysis as well as many others.
A signal that combine Elliot Wave Theory, Harmonic Pattern, CandleStick Formation, RSI, MACD is a good one!
I participated in training via Market Traders Institute yet nothing that anyone was teaching really had teeth until I read something about RSI and RSI Reversals which had been discovered by Andrew Cardwell, a student of Welles Wilder.

At some point it became clear to me that it was easy to create a trading signal. That may seem obvious: creating a signal is easy. Give me a sheet of paper and a pencil and I could list them as fast as I could write.

As a trader, you need a signal that tells you it is “time to trade”. That’s the obvious part. What is not obvious are the details that tell you if you should trade at that moment or not at all. One of the things most traders have trouble with is when “not to trade.” Knowing when to stay out of trade is just as important as when to trade, maybe more important.

In near future, I will show you some systems that will help you a sure-fire winning !!!


To The Forex Trading Community:
Time to face facts.
Being a 9 to 5 slave is no fun.
Worse... busting your ass to make money for someone else is pure insanity.
You could break your back getting results for a faceless company... only to be shown the door when it suits them.
And then what ?
What have you got left for yourself?
Just the measly scraps left over from your salary and the uphill battle of competing with hundreds of others for a new job.
This wasn't how it was supposed to be.
How come some folks seem to end up on easy street, sipping cocktails on their private beach? What have they got that you haven't? Simple...
Knowledge that only an elite few have been made aware of. But now...
I'm turning the tables, it's time the "little" guy was allowed in and real wealth made possible for anyone.
I'm about to expose the very same, collossal systems used by world banks to funnel millions upon millions of dollars into their pockets each and every day.
These proprietary systems will be released to you for the very first time and all you have to do is take advantage of my easy, step-by-step blueprint.
We need to clear up something though...
I'm Madder Than Hell Right Now...
I'm hopping mad... wait... I'm freakin' livid at what's going on in the forex market.
Wave after wave of nasty con artists pike disgusting trading systems that haven't a snowball in hell's chance of working.
And of course...
They don't care.
They just want your hard earned dollars so they can carry on pushing more usless trading systems.
My name is Thomas Strigano.
At the age of 28 I was the youngest Chief Trader ever at a top Italian bank, so it's safe to say that I know a thing or two about forex trading.
I was entrusted by the world banking elite to manage millions upon millions of dollars. They came to me to guard the world's money and -- as happened one time -- I could go for a piss break and lose a fortune.

But... these very same systems are now about to become incredible power in your hands.
Think about this... if you're trading against the might of gigantic corporations, I mean... what chance do you think you really have?
They've spent millions developing systems that mean they win every single time.
What if you got hold of these closely guarded systems and used them for yourself?
Think you'd stand a better chance?
And what if you had a proven, step-by-step, can't fail. golden insights into the market from a Forex super power holding you by the hand until you too are playing the markets for fun and banking obnoxious amounts of cash?

More Astounding Proof...$4000+ In 90 Minutes!

Wolf Wave : how much trust ?

The key to recognizing the setup is symmetry. Ideally, waves 1-3-5 are established with very regular timing intervals between moves. The other key ingredient is that the wave 4 should revisit the price range established by waves 1-2 for the best results. Wave 5 is often a false breakout move beyond the bounds of the pattern. Unlike either bull or bear flags, the movement is in the same direction as the overall trend, with the overlapping waves giving signals that an impending reversal is taking shape.

The unique quality about wolfewaves is the objective target projection.

The question is about how much you trust this setup ?

Very much so !!!

I hope they serve as inspiration for further study and successful trading.

Stay tune for example ..... updating.....

Who needs bulls and bears when you can run with the wolfes ?!?!?

The bounce sets up waves 1-4, and it is only a matter of patience to wait for the full pattern completion of wave #5 - a final stop/limit clearing move into close gives us the wolfewave setup.

Target Market opens up next morning at target juncture, and immediately reverses to retest the previous day's highs.

Various Stock Examples

XAU /Gold and Silver Index

Reversal Shifting down to intraday action, a reversal top showed on smaller granularity. Another key element can also be seen here - wave #5 is often made on a divergent signal versus the MACD technical indicator readings in the form of higher prices, lower high in oscillator. Once again, pattern is shown as the initial target objective is achieved.

Related topic
Forex Cash Cow system
The ICWR trading system


This is another simple yet profitable trading system. The beauty of it lies in its simplicity of using only two popular indicators: EMA and RSI. I suggest you use 1H, 4H or daily timeframe for this system and it can be applied to any currency pair, my favourite are EUR/USD, GPB/USD and USD/JPY. OK, it’s time to get started now. We will set up the following indicators - EMA(80) EMA(21) EMA(13) EMA(5) RSI(21)

Trading rules

EMA 80 indicates a major trend direction. When the price goes above EMA 80, it implies an uptrend and if it goes opposite – downtrend.

• EMA 21 and EMA 13 give us a current trend direction.

• While EMA 13 stays above EMA 21 – uptrend occurs.

• If EMA 13 stays below EMA 21 – downtrend

• RSI (21) value is above 50 suggest an uptrend, below – downtrend

Entry Rules for long trade

We enter a long trade (buy) when

• EMA 5 crosses above a channel of EMA 13 and EMA 21 in up trend market

• RSI is above 50

• Both EMA 21 and EMA 13 are above 80 EMA

Exit Rules for long trade

We exit our trade when EMA 5 crosses below EMA 13 and EMA 21 or RSI > 50

Entry Rules for Short Trade

We enter a short trade (sell) when

• EMA 5 crosses the EMA 13 and EMA 21 in a downtrend market

• both 21 EMA and 13 EMA are below 80 EMA

• RSI is below 50.

Exit Rules for short trade

We exit our trade when EMA 5 crosses above EMA 13 and EMA 21 or RSI > 50

Stop loss

Stop loss = 100 – 200 pips… depending on the volatility of the currency pair. For more volatile pair, like GBP/USD, stop loss = 200 pips. For less volatile pair, like EUR/USD, use stop loss of 100 pips.

Next, I am going to show you a few sample trades to help you understand more clearly how to use this system

Continue to Crazy Cash System Buy Trade Example E/U 1H ... to be continued

Why should you trade forex market ?

Two completely opposite “schools of thought” dominate today’s public opinion when it comes to financial markets. One school of thought is advocated by academic types, mostly economics, finance and mathematics professors. They will tell you that “markets are efficient” and that there is a zero chance for an individual to outperform any liquid financial market in the long run. Well, of course the guys with cushy university jobs, without any real world or business experience, will tell you that you don’t stand a chance to succeed. You should continue to work your little day job so that they have someone to make their sandwich or to change oil in their cars. People who subscribe to this theory usually choose to stay out of financial markets and keep their cash stashed in their mattresses.

Another school of thought is advocated by financial TV and radio stations, investment firms, brokerages etc… “Surprisingly” they are all trying to portray financial markets as an idyllic place where happy Moms, Dads and Grandpas use sophisticated software to place winning trades from their laptops while vacationing on sandy Caribbean beaches… Countless “talking heads” are enjoying their daily parade on TV channels such as CNBC or CNN supplying mostly worthless advice to general public. Their “analysts” change their opinion every day in a fashion that even George Orwell would find hard to comprehend. And everything they say always seems to “make sense” at the moment when they are saying it. Next day, when it turns out that they were totally wrong, they are telling you an entirely different story as if yesterday never happened. And if you noticed, the hosts never, ever bring that up. Why? Well, “the show must go on”. They have to show you that every day you are missing on countless trading opportunities; you just need to watch their shows, subscribe to fancy software that they sell you and you are on your way to early retirement.

I do agree with the statement that financial markets are efficient. They are very effici
ent in one thing - transferring money from bad and naive traders/investors to
the pockets of those that know what are they doing. You are now probably asking yourself “What am I doing in this field? Do I have any chance to succeed?” The answer is “Yes, you do.”. The system that we are about to reveal to you is a fail proof entry and exit strategy that will put
you on equal level with big investment firms and with experienced professional traders.

A question that I hear the most from aspiring traders is “Which market should I trade? - Stocks, Futures, Commodities...?” Well, with the right attitude and dedication there is money to be made in every market. However, there is one market that is still largely neglected by smaller traders even though it offers great profit potential and numerous trading opportunities. It is Forex or Foreign Exchange market.

Why should you trade forex market?

Simply said, no other trading instrument comes even closely to forex market when it comes to liquidity, 24hr market environment and last but not the least, profit potential. Forex (currency) market is the largest (most liquid) financial market in the world, with an average daily volume of more than US$ 1.5 trillion, which is more than all of the global equity markets combined. Forex trading day starts in Wellington, New Zealand followed by Sydney, Australia, Hong Kong and Singapore. Three hours later trading day begins in Dubai (UAE) and other Middle Eastern countries. In couple of hours they are followed by Frankfurt, Zurich, Paris, Rome… London is the last one to open in Europe and five hours later it is followed by New York, Chicago and finally the West Coast. The busiest hours are early European mornings because at that time major Asian exchanges are still open and European afternoons because at that time major US markets are open at the same time as Europe. Therefore, wherever you live and whatever your work hours are you can always find some time to participate in forex trading as opposed to stock market where you are usually limited to the regular business hours.

Another property of forex market that makes it an excellent trading instrument is use of leverage. Many beginning traders don’t fully understand the concept of leverage. Basically, if you have a start up capital of $5,000 and if you trade on a 1:50 margin you can effectively control a capital of $250,000. However, a two percent move against you and your capital is completely wiped out. If you are a beginning trader you should not use more than 1:20 margin until you get comfortable and profitable and then and only then you can attempt to use higher margins. What does 1:20 margin mean? It means that with your $5,000 you will control a capital of $100,000. Let’s say you are trading EUR/USD and by using our entry strategy you have decided to enter the trade on a long side. That means that you are betting that USD will depreciate against Euro. Let’s say current EUR/USD rate is 1.305. Again, if your trading capital is $5,000 and you are using 1:20 leverage you will effectively be exchanging $100,000 to Euros. If the current rate is 1.305 you will receive 100,000/1.305 = 76,628 Euros. If the trade goes in your direction the margin will work in your favour and 1% decline in USD will mean 20% increase in your start up capital. So if EUR/USD rate moves from 1.305 to 1.318 you will be able to exchange your 76,628 Euros back to $101,000 for a profit of $1,000. Since your start up capital was $5,000 it is effectively a 20% increase in your account. However, if the trade went against you and USD appreciated 1% vs. Euro your account would be reduced to $4,000. That would not have happened as our strategy has built in hard stops to prevent such outcome.

And the third and equally important property of forex market is the fact that trends in forex market last longer and are more clearly defined than in any other trading instrument.

Which strategy should you use?

Another question that is often asked by aspiring traders is “What kind of trading approach should I use – day trading, swing trading, position trading? How many indicators should I use? Should I follow the TV news channels?...”

If you are facing similar dilemmas let me try to make an analogy. If you were attacked in a dark alley and you felt that your life was in real danger what kind of defence technique would you attempt to use. Would you attempt to kick your assailant with some fancy kung fu move that you saw in a movie? Or would you use some basic but brutally effective “knee to the groin”, “thumb to the eye” technique that is easy to implement and that you are 100% certain will have an effect? When you have your hard earned money riding on your trades maybe your life is not at stake but your and your family’s livelihood is. The goal of all the other traders in the market is to take your money. And if you are going to play around with some fancy tools and indicators that you don’t even understand you can be assured that your hard earned money will be paying someone’s BMW lease payments.

If you want to get to the top of the forex market “food chain” you have come to the right place. The strategy that we are about to reveal to you is a completely new, efficient and reliable trading strategy that comes as the result of years of forex market research using sophisticated mathematical methods and is based on a fundamental property of financial markets.

Continue to Forex Cash Cow system

Continue to ICWR phenomenon system

The ICWR phenomenon

Regardless of how strong a long-term market trend is, the market never moves only in the direction of the long-term trend – there are always minor movements against the long- term market trend. These deviations usually don’t last very long and after them the market moves again in the direction of the long-term trend.

The major market movements in the direction of the long-term market trend are called impulsive waves and the minor market movements against the long-term market trend are called corrective waves.

The picture below shows a snapshot of a EUR/USD candlestick chart. Although the market shows both upward and downward market movements it can be easily recognized that the long-term market trend is clearly bearish as between 07:00 AM and 11:00 AM the price failed around 140 pips (from 1.3500 to 1.3360 , that is 1.3500 - 1.3360 = 0.0140 = 140 pips). The waves (1), (3) and (5) are the impulsive waves; the waves (2) and (4) are the corrective ones.

Our main observation, until now disregarded by all traders in their trading strategies,is that when putting into relationship the height of a corrective wave and the height of the prior impulsive wave, the corrective wave tends to retrace the prior impulsive wave in Fibonacci ratios. Frequent relationships are 25%, 38%, 50%, 61% and 75%. Up to now we will refer to this effect as the Impulsive/Corrective Wave Retracement (ICWR) phenomenon. For example in the picture below the corrective wave (2) retraces the impulsive wave (1) in the Fibonacci ratio of 0.382.

The ICWR phenomenon is a typical self-similarity effect of a complex system. For all kind of complex systems in nature as social, chemical or physical systems such self- similarity effects can be found. Self-similarity is a fundamental property of self-organized complex systems and is a matter of recent intense investigation by physicists andmathematicians.

We have used the phenomenon described above as a starting point to develop a completely original and until now unpublished trading strategy that combines basic principles of Elliot Wave theory together with well-known properties of Fibonacci ratios. The result is amazing, as you will soon find out. We have named the strategy “Impulsive/Corrective Wave Retracement (ICWR) Trading Rules”.

Before going into the details of our strategy we will introduce it to you by showing you a simplified, shortened version and in the later chapters you will be shown how to put it to use and immediately start taking advantage of it. Our strategy gives the best possible entry as well as exit moment. In the example below we will show you only the part that is usually neglected by most of the trading strategies currently in use how to find out the best moment to exit the trade. For the purpose of making the example easier to follow we will assume that we have already found the best moment to enter the trade.

While going through the trading example below you will realize that the part of our strategy related with the exit signal follows the fundamental trading rule “cutthe losses short and let the profits run - in a way that was never accomplished before.

And, why is this fundamental trading rule so important?

Because not letting the profits run will make your trading unprofitable in the long run: two losses of 50 pips followed by a win of 80 pips results in a net loss of 20 pips. In contrast two losses of 50 pips followed by a win of 250 pips, reachable with our strategy, results in a net win of 150 pips! I’m sure you get the point.

Continue to Example part 1


Read the Forex Cash Cow system


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