I travelled 790 miles to meet with TrdrX (I don't know if he will be happy about this blog, so for now I'm keeping his name out of it), spent a solid and interesting day with him, and have been micro-trading this system ever since. Initially I would have preferred to do the training over the phone or web, but he only reveals it in person. After learning it in person, I could see why it really helps to do it one on one. You get to understand why it works, which ends up being the main secret of trading it.
TrdrX informed me that he's only taught a dozen individuals this method and doesn't wish to have a world of traders replicating this. He's a bit reclusive, late 40's, who's happy trading the simplest systems that still work, and wants to keep it that way.
Now I understand why and am glad that I can trade it. The method seems to work pretty well, and I've decided to document my results with a real forex account (from Oanda) and plan to trade just a couple of volatile yet decent sized spread forex pairs- the EUR/USD, USD/JPY, and sometimes the CHF/USD.
I can say this about the system. It finds areas in the trading day where the market needs to stop and reverse awhile. Too many banks or large individuals have poured on too much position size and/or tons of stops have been executed and the market needs to retrace. What really pays off is this method only tends to find very good risk/reward trades with extremely reasonable stops.
Well, we will see how well I can execute the trades.
Primarily I plan on trading the EUR/USD because it has lots of trading interest and TraderX recommended it as the primary vehicle for the above reasons.
Up until now, just testing testing the system by hit and miss whenever I got the chance to trade- I have taken 94 trades. 83 have been profitable, 8 were outright losses, and 3 scratches (0 profit/loss). The risk stop is a little bit higher than your typical win, but you hardly lose, so I can see why TrdrX is reluctant to share.
It doesn't trade too often but can trade up to 4 - 6 times a day per pair. Each time you get a trade the risk is very low, and the trade is extremely likely to be profitable. It is necessary for you to use a broker who provides small commissions or small spreads on the pair(s) you chose to trade. I found out the hard way by trading with my first broker who charged 5 pip spreads on the EUR/USD. It was hard to make anything. I went to Oanda and now have had few problems except getting used to the new platform.
I had 3 profitable Forex trade setups, one long trade in the CHF/USD and 1 long and 1 short in the EUR/USD.
- Trade 001: B CHF/USD 10:15 @ 1.04444 / S 11:25 @ 1.44631 +18.7 Stop: 15 pips
- Trade 002: S EUR/USD 10:20 @ 1.55900 /B 11:25 @ 1.55811 +8.9 Stop: 15 pips
- Trade 003: B EUR/USD 13:20 @ 1.55795 / S 13:30 @ 1.55851 +5.6 Stop: 10 pips
Trade 1 (screenshot):
Trade 2 (screenshot):
Trade 3 (screenshot):
I hope you find this little journey interesting. I'll try to figure out how to post a chart for my equity curve. So far I am up 33.2 pips. I'm trading relatively light. I'm trading 10,000 units a trade so each pip (at least in the EUR/USD) is worth $1. The other pairs will be a little less, but close to $1/pip.
Johnny Nash
johnnashgt@gmail.com
