First of all I would like to wish you all a happy and healthy new year, and I hope that 2015 is also a profitable trading year for you all.
Several months back I provided a review of a forex trading tool that I have become quite fond of and continue to use very regularly known as Andrew’s Forex System. As explained in part I of my Andrew’s Forex review (click here to view Part I) this system is a very simple tool which helps one determine which forex pairs are currently trending, and allows one to enter a trade at a “sweet spot” in the direction of the trend.
Andrew’s Forex System is designed to be traded from the 4 hour charts, which by the way is my personal favorite time frame to trade, so the system was a great fit for me. I have to say that the more experience I gain trading forex and the more I work on developing my skills the more I truly believe that trading with the trend is the way to make it in this business. If you can find a simple strategy that allows you to put the odds in your favor by trading with the longer term trend you will be miles ahead of most.
I have found that Andrew’s Forex System has over delivered in both of these respects. I also really like the fact that the system allows you the flexibility to make it your own, and trade it in a way that is best suited to your own personality and trading style. Let me give you an example by showing you a fairly recent trade I took on the AudNzd pair below:
(*Note other indicators included with the system have been cropped out of the photo)
As you can see from the chart above the AudNzd has been in a nice bearish trend. On December 4th and again on December 9th the system triggered a short trade. I personally like to put my stop 5-10 pips above the recent swing high level. Assuming the trade goes as planned once the trade is at a 1:1 risk vs reward level I move my stop to break even. At this point the trade becomes a risk free trade which is a very nice spot to be in as a trader. I set my take profit level to the 1:2 risk vs reward level so that I am always aiming to gain twice as many pips from the trade as I am risking. As you can see from the chart above the trade did end up reaching the 1:2 risk vs. reward level.
Putting the odds in your favor by trading only in the direction of the trend, and ensuring that your winning trades are larger than your losing trades is a deadly combination and has been working quite nicely for me.
If you are looking for a great, simple and profitable system that will allow you to put the odds of trading with the trend in your favor I would highly recommend checking out the system here: Andrews Forex System
Well that’s about it for now, and I hope you have a great start to your 2015 trading year 🙂
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