SpeedWealthBiz or SWB Trend Trading Strategy

[cubicrey]

You are the Panda (winner)

 

From now on it’s difficult for you to lose again in Forex Trading!

Forex Trading Golden Rules and Facts:

 95% are Losers vs. 5% are Winners in Forex Trading

 It’s always easier to lose than to win

 Invest ONLY with your risk capital

 Never under-capitalized, good money management is essential

 Never be emotional with price volatility

 Have a consistent profitable trading system and strategy

 Don’t follow the market too closely, the farther you are away from the market, the better you are a winner

 Plan your trade before you are in and trade your plan once you are in, stick to your plan.

 Discipline! Discipline! Discipline!

[cubicrey]

You are the Panda (winner)

 

Trends are Our Friends

 Trend Trading is one of the most effective and easy to use methods for making in the Forex Market.

 Trend Trading success depends on identifying and catching the trend after it has started and getting out of the trend as soon as possible after the trend reverses.

 Trend Trading involves taking a position in the markets with a view of holding that position for weeks to months for larger than normal gains.

 Trend traders generally trade the long term trend and are not concerned with the day to day market volatility.

[cubicrey]

You are the Panda (winner)

 

What are the Advantages of Trend Trading?

 Trend Trading is the fastest and most risk free way to make money in the Forex Markets.

 In Trend Trading you can identify a change of trend in the market as early as possible, take your position, ride the trend and close your position shortly after the trend reverses.

 With Trend Trading it is very possible to catch 60 to 80% of many intermediate term and long term market movements and thus create wealth for yourself and your family.

 Trend trading will help you take large profits out of the Forex Market, without having to watch the market on a minute by minute or even a day by day basis.

 Whether you are short term day trader or long term investor, I believe incorporating Trend Trading into your overall plan is a must.

 There are two types of trades: “Income-producing” trades and “Wealth-building” trades. Swing trading and day trading produce income, while Trend Trading is designed to amass wealth.

 Add this wealth-building component to your trading today with the “ Renko Trend Trader System and Strategy.” 

Edited November 9, 2010 by cubicrey

[cubicrey]

You are the Panda (winner)

 

Why establishing the right “Trend Trading Mentality” is essential for success in Forex Trading?

 Successful and profitable Trend Trading is 99% mental.

 If you can conquer your mind and quell the inevitable inner dialogue that screams “Whoa! Looks like price is going against my position! The trend must be ending – Sell Now!!!” during short term market fluctuations and reactions, and instead keep your eyes on the long term, you stand an excellent chance at being a successful, happy and stress-free trend trader.

 However, if you cannot turn off these emotional feelings, then you are in for a very short, very bumpy ride as a Forex trader.

 As the “Renko Trend Trader System” is created for successful and profitable trend trading, it can provide the savvy practitioner with much deeper view of the trend and therefore, more secure entry and exit signals than any other trend trading system available.

 Nevertheless it must be combined with the right mindset in order to be used to its fullest potentials.

[cubicrey]

You are the Panda (winner)

 

What is the Key Success Factors in Trend Trading?

1. Never attempt to predict where the market will go.

2. Never attempt to pick “tops” and “bottoms” of price actions.

3. Always respect the trend and align your trades accordingly.

4. Let the market dictates when the trend is finished, not your “intuition”.

5. Realize that you will necessarily sacrifice some pips at the beginning and end of the trend as you wait for confirmation.

6. Look at price actions from a long-term perspective and don’t get shaken by short term volatility.

7. Understand that you will go through some potentially significant but temporary periods of drawdown as the trend matures.

8. Understand that trend trading can lead to large gains but also equally large losses.

9. Understand that trends can take place on multiple time frames and sometimes with conflicting signals.

10. Patience! Patient! Patient!

[cubicrey]

You are the Panda (winner)

 

Dos and Don’ts of System Trading

 You need Patient to system trade. (at least 6 to 12 months)

 Maintain an Investor mentality, not Trader mentality.

 You start with cutting losses first, and let the profits run.

 Focus on your Equity Growth, not on Margin Balance.

 Don’t follow the market too closely to avoid massive economic/political upheavals.

 You can’t serve two masters simultaneously: God or Devil? – NO Intraday Trading!!!

 Trade Only one system at a time.

 Have a well-diversified and balanced investment portfolio.

 Keep your trading system simple.

 More is Less, Less is More! Simplicity Breeds Elegance.

[cubicrey]

You are the Panda (winner)

 

Intraday versus Trend Trading: 2 different Worlds with 2 different Perspective

 

 

Intraday Trading

 Emotional, Stressful.

 Fear of Loss/Fear of Gain.

 Overtrade & lose a lot of spreads.

 

 Cutting losses unnecessary.

 

 Technical Charts

 Daily high & low price movements.

 Gambler Trader

 An Action.

 A diminishing sum game.

 5th Floor

 95% Losers

 Trade for random prices

 Focus on pips made.

 Shorter Timeframe Charts.

 Follow market for hours.

 Stop Loss 20-100 pips as realized loss for taking chance.

 Short term quick cash.

 

 

Position Trading

 Peace of Mind.

 Return on Investment.

 Trade only when trend changes direction.

 Advance temporary losses to the market as cost incurred.

 Trend Trading System & Strategy.

 Daily Closing Price Only.

 Investor Trader

 A Journey.

 A Wealth accumulation strategy.

 50th Floor

 5% Winners

 Trade for trends.

 Focus on trends in continuation.

 Long Term Charts.

 10 minutes a day.

 Stop Loss 250-350 pips as cost incurred to acquire a trend.

 Long term Accumulation of Wealth

[cubicrey]

You are the Panda (winner)

 

Are you ready to be a Successful Trend Trader?

Please check against the following:

1. Are you ready to trade the system without fail for at least a ONE YEAR period to allow ample time for the system to work it out?

2. Do you have the patient to wait for the trends to develop before seeing any profits?

3. Are you able to take losses as trend trading with cutting losses first and let profits run?

4. Are you able to tolerate a streak of losses during non-trending period? How good is your “Tolerance Level”?

5. How much are you willing to lose without causing you any emotional frustrations if the market trends go against you?

6. Trend trading could be very inactive, boring and no fun, are you prepared for that?

7. Could you withhold yourself from following the market too closely?

8. Do you have confidence, trust and faith in the system?

 

If anyone of the above is “NO”, please DO NOT start trading the system (any TREND Trading System) with your LIVE account.

 

Start with DEMO account first until you are able to answer “YES” to all the above.

[cubicrey]

You are the Panda (winner)

 

What the Grandmaster Wukui Says:

 

http://i630.photobucket.com/albums/uu24/cubicrey/66752698.jpg

 

 

 Self-Realization – The Key to Change

No one can change anyone unless one is prepared to change. This can be done through the process of “Self-Realization.”

 Rule No.1: Learn How Not To Lose!

 Discipline! Discipline! Discipline!

 Successful Traders are in control of themselves, so am I. I am in CONTROL.

 A good trading system + Mental strength to commit and execute = A successful seasoned trader.

 Scared money will flow into the pockets of the confident!

 You can’t succeed with your “Scared Money”!

 Focused on the process of trading, not on each win or each loss.

 It’s not the system, it’s YOU!

 Maintain your FOCUS, maintain your DISCIPLINE at all times.

 I’d rather be out of a market wishing I was in, than in a market wishing I was out.

 Trust in your tested trading system. It will serve you if you stick to it.

 Don’t lie to yourself, rectify your weaknesses.

 Forget Gurus, your experiences are the only ones that count, they are your best gurus!

 If you don’t have TOTAL CONFIDENCE in your system before you starting it, you will doubt your system’s ability to perform with every losing streak. Don’t trade it!

 Be a MACHINE (Don’t THINK) when you are trading your system.

 THINK only during “pick a system” stage.

 Unless you can control yourself, you can never control your system.

 Do the work. Think. Then don’t think.

 Warrant Buffett: “Wall Street makes its money on activity; you make your money on INACTIVITY!”

[cubicrey]

Basic Renko Trend/Breakout Trading System

 

Renko Trend/Breakout Trading System

Trends are our friends.

 Trend trading is the risk free, easiest and fastest way to amass wealth.

 Trade the long trends, not concerned with the daily volatilities and uncertainties.

 Gain large profits without watching the market closely.

 Up-trends, downtrends and sideway trends (2:1).

 Major trends can get => 1000 pips

 Intermediate trends = between 500 to 1000 pips

 Minor trends =< 500 pips

 Possibly catch 60 to 80% of Intermediate and Major trends

 Less stressful, less emotional, less hassle, more peace of mind.

 

Characteristics of Wukui Trend Trading System

1. Trading style => Trend Trader

2. Trading methodology => Technical Analysis

3. Trading system => Mechanical system

4. System complexity => Simple

 

Why Mechanical trading system?

 Management of “Uncertainties”

1. Human weakness can’t manage “Uncertainties”

2. Keep emotionless, impartial and indifferent

 Don’t follow market too closely

 Reduce exposure to “Uncertainties”

1. Trade Trends only

2. No Intraday trading

 Achieve “Peace of Mind”

 

Time required: 10 to 15 minutes per day

 No staring at screen for 8 hours straight

 No trading when your family is sleeping

 No emotional roller-coaster experience

 Just 10 to 15 minutes a day

 Make money with Peace of Mind

 

 

 

 

A Break-out indicator

 A Break-out indicator:

“Renko” developed by the Japanese 130 years ago.

 It comes from the Japanese word for bricks – “Renga”.

 Blue bricks are used when the trend is UP

 Red bricks are used when the trend is DOWN

 Only concerned with price movements, not related to time

 A new brick is placed in the next column when the new closing price surpasses the top or bottom of the previous brick by a pre-determined parameter (125 pips on daily chart-for 4 digit broker; 1250 pips for 5 digit broker)

 Trading Signals are generated when the trend changes and the brick alternates colors.

 Valid signals are those confirmed by previous market close, any signals generated after 00:00 GMT+0 are invalid (e.g. IBFX and etc).

 When the colors of the bricks changes too early, false signals can produce a whipsaw effect

 The signals can cause trading losses during non-trending or congestion markets. However, traders usually gain big rewards during both up and down market trends.

 

Basic Trading Rules

 The signals are definitive and mechanical, no guesswork! Even my 8 yrs old cousin can do it flawlessly and repeatedly! (it is true).

 No guesswork! Turn Short when a new RED bar is formed at market closed.

 Valid signals are confirmed by previous market close only, any signals generated after 00:00 GMT+0 today are invalid.

 No guesswork! Turn Long when a new Blue bar is formed at market closed.

 Valid signals are confirmed by previous market close only, any signals generated after 00:00 GMT+0 today are invalid.

 Double check to confirm whether new signals are “Valid”

 A new reverse position is opened while closing the old open position.

 New or Closing Orders are placed only after Previous Day Closing Time (GMT+0: 00:00 to 00:05)

 Place Market order if current market price is below (if previous open trade is long) or above (if previous open trade is short) our Stop Signal Price (change of Break-out Signal colors) * refer to next post for details.

 Slippage is to be expected

 Losses are “Cost incurred to acquire a Trend”’ one has to embrace it gracefully

 Create a diversified Trading Portfolio to cushion the price fluctuations and risks

 Adhere to your Money Management Plan and Position Sizing Tolerance Level.

 Follow the system/strategy with absolute discipline.

 

Note: For the advanced rules pls refer to post #45

[cubicrey]

How indicator Renko2 works

 

Hi,

 

I have prepared some notes to help those who are new and want to understand how the indicator Renko2 works, hope it helps..

 

 

How the Renko_2 indicator works :-

1. We attach the indicator into Daily Time Frame

2. We set the brick size of 125 pips (now IBFX broker is using 5 decimals, so you need to set to 1250) and let say the candle on the price chart is starting from price 1.0000 on 00:00 (GMT+0) dated 01 June 2010.

3. At 09:00 the market going up to 1.0125, we can see a blue color Renko brick appear on indicator window. [at this moment the data on the top left of indicator window is showing 1.0125]

4. At 15:00 the market going up further to reach 1.0250, we can see the second new blue color brick appear on the top of the first one [at this moment the data on the top left of indicator window is showing 1.0250].

5. From here we will also know the third blue color brick will appear if the market continue to going strong bullish and reach 1.0370, however…..

6. From 15:00 to 20:00 the market ranging between 1.0250 to 1.0350, and the Renko indicator keep showing 2 nos of blue color bricks [at the same time the data on the top left of indicator window is keep showing 1.0250].

7. At 20:00 the market start to retrace and drop to the price level 1.0200 at 22:00, at this moment, we can see the second blue color brick disappear or remain only one blue color brick on the indicator window (in fact, when the price level drop to 1.0249, the second blue color brick will disappear). [at this moment the data on the top left of indicator window is showing 1.0125]

8. At 23:59:59 the market closed at price level 1.0150 [at this moment we can see only one blue color brick remain no change and the data on the top left of indicator window is still showing value 1.0125].

9. When a new day started at 00:00, 02 June, a new candle appear on the price window at level 1.0150 (assume no gap), then after that the blue color brick and the only one which is a formed by yesterday market is fix or permanently printed on the indicator window. So, this blue color brick is a confirmed signal and we trigger for “buy”.

 

http://i630.photobucket.com/albums/uu24/cubicrey/App1.png

 

Where is the Stop Signal Price?

1. Say, if yesterday confirmed brick color is blue (Bullish), and its’ data on the top left of indicator window showing 1.5000, then the Stop Signal Price is 1.5000 – 0.0250 = 1.4750

2. Say, if yesterday confirmed brick color is red (Bearish), and its’ data on the top left of indicator window showing 1.5000, then the Stop Signal Price is 1.5000 + 0.0250 = 1.5250

3. The Stop Signal Price is always based on the last confirmed (23:59:59) Renko Brick level.

 

Note: We never put the stop loss with our trade, however when the market is confirmed go beyond the Stop Signal Price at 00:00 GMT+0, it means the market trend is confirmed to change and we are going to close and reverse the trade if we are trading the Basic system., if we are using the advanced system, we may either need to "close and reverse" or "close and stand aside" depends on the status of weekly renko.

 

Here are some pictures which are self explanatory..

http://i630.photobucket.com/albums/uu24/cubicrey/illustrationno2.png

 

http://i630.photobucket.com/albums/uu24/cubicrey/illustrationno3.png

 

http://i630.photobucket.com/albums/uu24/cubicrey/illustrationno4.png

 

Real trade example:-

http://i630.photobucket.com/albums/uu24/cubicrey/Example1-1.png

 

1. The trade shown above (the candle in the green rectangular with the blue color arrow) was triggered on 21st June 2010, 00:00 GMT+0.

2. When the trade is confirmed on 21st June 2010, 00:00 GMT+0, the brick value is 0.8933 as label no.1

3. So, I plot the blue color (blue meant the trade is long, red meant short) horizontal line at 0.8933, as labeled no.2.

4. Next, I place the purple color horizontal line to represent Reverse Signal Level as labeled no.3 at 0.8683 = (latest confirmed Renko level – 2 x predefined brick size = 0.8933-0.0250).

 

With the aids of these 2 lines (Renko and RSL) on the price chart, I can scan through all 20 pairs within a minute, knowing which pair the price is close to or far away from the RSL and easy to identify and confirm new renko bricks as well.

Edited November 11, 2010 by cubicrey

[JasonKwok]

ha ha..now I know what is WuKui, you are speaking in Mandarin, you caught me....

 

Thanks for the posts, Cubicrey.

[cubicrey]

Hi,

 

Today update

http://i630.photobucket.com/albums/uu24/cubicrey/2010Nov10.png

[b.gunn]

Hi Cubicrey,

 

Thanks for all the information so far, it has been very useful in progressing my understanding of the system. I have one discrepency from your results above, and that is for the pair EUR/CAD. My signal give Weekly Renko - S (2 red boxes), Daily Renko - S (2 red boxes) and MACD - DOWN. All this indicates a SELL position and this ties well with the general look of the chart. The only difference with your data is that I have data files ending as follows:

Daily - 2005.06.10, Open 1.5372 (Your figures 2007.03.18, 1.5667)

Weekly - 2005.06.22, Open 1.5845 (Your figures 2005.05.22, 1.5845)

 

Can you advise which data presents the more accurate picture (broker is IBFX)?

[cubicrey]

Hi b.gunn,

 

There is no so called "more accurate picture", as long as you are following the rules you will be alright. But at the beginning stage, it is advisable to have the same history data which I provide, then it is easy for you to cross check with my list everyday. When I trigger long, I know u r long, when I lose money, I know u are also losing money. May be sometimes I make mistake of giving the wrong input to the list, if anyone here is kind to inform me, the mistake can be easily identified. Can u see now, what is the advantage of having the same history data?

 

What you see now today on Renko2 indicator window of Weekly TF having two red color bricks is correct, but.. these two bricks only start appear on this week but not last week or previous weeks ago, logically they are not confirmed yet and according to the rules we can not take them as a valid signal.

 

The Valid data of weekly renko for this week is 1.4273, its RSL (reverse stop line) is 1.4023 (14273-250).

On Sunday 07 Nov, 23:59, the weekly candle closed at level 1.4071 which is above the RSL. So, the valid weekly renko value we are referring for this whole week is still blue color. Let say, If the market go back again above the RSL within this week, these 2 red color bricks will be automatically disappear again like magic.

 

Hope this help

 

Cheers

 

R

 

--correct me if I am wrong--

Edited November 10, 2010 by cubicrey

[cubicrey]

Hi,

 

Plan for

 

http://i630.photobucket.com/albums/uu24/cubicrey/2010Nov11_pre.png

 

Cheers

 

R

[cubicrey]

Hi,

 

Today Update

 

http://i630.photobucket.com/albums/uu24/cubicrey/2010Nov12.png

 

Cheers

 

R

[cubicrey]

Hi,

 

Action on the coming Sunday Market open, however you can open the long trade after Monday 00:00 GMT+0.

 

http://i630.photobucket.com/albums/uu24/cubicrey/2010Nov14.png

 

Have a nice weekend to all of you.

 

Cheers

 

R

[cubicrey]

Hi,

 

Here is the latest renko value for both daily and Weekly after Friday market closed.

 

http://i630.photobucket.com/albums/uu24/cubicrey/Snap3.png

[cubicrey]

Hi,

 

Possible actions required on Monday 2010 Nov 15, 00:00 GMT+0

 

http://i630.photobucket.com/albums/uu24/cubicrey/2010Nov15_pre.png

 

Cheers

 

R

[cubicrey]

Hi,

 

Confirmed Signal after 00:00 GMT+0, 2010 Nov 15, Monday

 

http://i630.photobucket.com/albums/uu24/cubicrey/2010Nov15.png

 

Cheers

 

R

[JasonKwok]

aiyaya, USDCHF hit SL ...sob sob sob...

[cubicrey]

Hi,

 

Today 2010 Nov 16, No action

 

http://i630.photobucket.com/albums/uu24/cubicrey/2010Nov16.png

 

Cheers

 

R

[cubicrey]

aiyaya, USDCHF hit SL ...sob sob sob...

 

Hi Jason,

Can you see now, what is the effect of too close to the market and the fool by intraday market volatility. Be discipline......:) I knew u r jz kidding.

 

By the way there, I noted there r 52 times download of my "History Data Files". If you have any questions pls feel free to ask and participate. If you have attended their course kindly share with us your experience and give comments on my daily reports whether they r reported correctly or not :).

 

Cheers

 

R

[b.gunn]

Hi Guys,

 

I noticed Mr Loo had not closed his EUR/CHF trade although it hit his stated SL target, this implies that he is not using stop loss. Is that correct?

 

Ben