The aim of the chapter is to make people conscious about what TS can be profitable not only today but also for the next couple of years and why it can.
If you didn't get afraid of the hardships of a trader's profession and if you understood the delusions that 97% of the world's traders had been confused by (read the preceding chapters of the book 1 Masterforex-V ) and that are (and have always been) the reasons for losing deposits by many generations of traders, then:
· You are psychologically ready to become a “predator”, not a “prey” at the market, trying to objectively search, find and use your advantages… among the weak spots of the Founder of the FOREX GAME
· You promise yourself that you would open a real trading account only having learned to understand each market movement from the tick chart/m1…to h4/d1/w1 etc. within the framework of the TF synthesis and having tested the gained knowledge and its profitability in demo trading.
If the answers to both the questions are positive, then let's proceed to the next part – the creation of MF's PERMANENTLY profitable TS and new TA.
Before getting the answers in the form of the MF TS elements, which are going to bring you profit and to let you rise above the level of the classic traders and the 97% of the world's losers, think about the main question:
How can one create such a profitable TS that would remain profitable in spite of ANY changes in the quoting system of the market (the Forex Founder)?
An Academy member's quote:
Vjacheslav Vsiljevich, I have been at the market for 12 years and I have seen dozens of trading systems. They were profitable at first but then they started losing. The same thing happened to the trading systems created by Bill Williams, Demark, Larry Williams, Hartley, Borishpoltz etc. Aren't you afraid of the same market reaction to your TS (MF TS)? (End of quote)
The professional trader set absolutely right key points.
If you are going to stay at Forex for a long time and do the serious job of a trader… first you should model the path (“trend”) of building your TS, taking into account the following:
· The Founder of the Forex Game is constantly changing the settings of the quoting system
· Consequently, are you sure that the TS that brought you profit yesterday will bring you profit tomorrow?
If you are confident of this, then what is your confidence based on?
Are you sure that the following things won't stop working tomorrow?
· Fibonacci levels or the similar Murrey levels (or maybe you truly believe Fisher and Prechter that “these levels are the golden section of the market”, that “they reflect its true nature” and that “they even occur in the geometry of Egyptian pyramids”. So what? Who can prevent the Founder of the Game from changing the settings? Nobody. You can find the details in the following chapters the book)
· The 138%, 162% or 262% levels of impulse grids or the 38% / 62% correction levels
· Trend channels
· Oscillators and many other tools, the parameters of which can be easily changed by the Forex Founder)
What a trader should do?
Many traders have already felt these changes on their own
· Visit a separate sub-forum dedicated to Fibonacci levels “Is there a future for correctional Fibonacci levels? (Larry Williams' pessimism on correctional Fibonacci levels)”
· Other changes in the market quoting most trader are going to feel/see in the near future
The change of the Forex market is reality that can be observed annually.
Here is an example of the devastation of a “successful” flat strategy based on profiting from positive swaps on EURGBP. The strategy existed for many years.
In 1997-2007 EURGBP is an explicit flat currency pair
In 2007 a bullish trend begins.
Pic. EURGBP w1 1997 – 2007
During the period of 1997-2007 (a flat period) there existed dozens of permanently profitable, “time-tested” TSs, the secret of which resulted from EUR/GBP SELL deals (which had positive swaps = the difference between the interest rates of the Bank of England and the ECB for the benefit of the former. Consequently, positive swaps were credited to traders' accounts on condition that they had opened EUR/GBP sell positions)
· One day of an open EUR/GBP position brought the profit of 0,29-0.43 pips Õ 365 days (1point in 2007 with the rate of 0.68 = 1.47$)
· Calculate the profit for a couple of years.
The “fineness” of such permanent successful work of the system was based on the following:
· The opening of a deal at any potential maximum
· Trading without stop-loss orders (The currency pair is a flat pair (the author of the TS explained). If it go further upwards the swaps will compensate traders for the temporary losses, EUR/GBP will go down anyway within the scope of the flat)
· The volume of any opened deal should be no less than 500 lots. If the 1st opened position is a failure, it is necessary to open one more 500-lot position at the next maximum under the Martingale method (the averaging of losses)
I made a brief overview of the TS created by a famous analyst of a broker company, an author of books, a candidate of science… who in 2006-2007 taught his TS at the courses and his own master classes (it cost a 1000$ per student). After the master classes his students went to the banks, withdrew the personal earnings (it's not a joke) and brought them to the DC that the analyst had recommended them (the advantage – “the high positive swaps that the DC credits”) to trade with big sums of money basing on “the unique TS”, to not sit behind the computers for days and to pay the brokers “the minimal commissions” (What did the broker need the “commissions” for, if each student strived to keep the opened positions with a total volume of 1500-2000 lots without stop-loss orders against the current LONG-TERM trend?).
I hope you understand what happened to the deposits of those traders who kept open positions without stops when the flat level was broken out and a trend began to unfold.
The analyst made another TS, which was “mathematically proven”, “proven by the market and the trading statement” like the preceding one (The tech support of any broker can make any statement of any trading account in their own trading terminal. A range of DCs even specialize in such scam techniques especially to attract investors for some “successful traders” under the DC – read the chapter “Investment funds: cheating criteria and the ways of searching for guaranteed investing” )
Further we are going to take a closer look at more serious TSs (created by Fibonacci, Elliot, Demark, Dinapoli, Elder, Bill Williams, Niki etc.). We are going to pay attention to the following:
· What is unique in each TS (what is taken and used after optimization in MF's Synthesis of Binary Patterns)
· What is successful only temporarily and consequently can stop working any minute (like the TS shown above)
· What was not right even at the moment of creating a certain TS (and that is why it is 30-40% working and needs to be optimized)
Now we should ask a question of principle: What should your trading and organizational systems be to let you gain a guaranteed permanent profit today, in a month, in a couple of years?
How can we create the TS that would naturally follow the market taking into account its future changes and that won't die at the first change in the market behavior?
Think. Model/Simulate.
FIRST, try to understand on your own WHAT TS will be able (and why) to survive ANY market changes and only then proceed to the next chapter dedicated to the uniqueness of MF TS, which is the new TA by MF is based on).
Masterforex-V's trading system was called the Synthesis of Binary Patterns by MF (the SBP)
Part I - Delusions of Forex Market (typical error 97% losers traders: how and what to change on the way to success in Forex) >>
Read more
Chapter 6 - Technical levels of support and resistance in Masterforex-V Trading System. >>
Chapter 7 - Moving averages: The basic Forex indicator. >>
Chapter 9 - Trading on news. Features of trader's work on Friday at American session. >>
Part 3. Forex investment funds >>
Book 2. Technical analysis of Forex in the Masterforex-V Trading System >>
Book 3. Masterforex-V “Points of opening and closing of positions at the Forex market (basic course)" >>
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