‘Greatness is more than being good at something: it’s when a career becomes a calling and skills become expertise.” — Dr. Brett N. Steenbarger

Hello:

This is an update of the some movements on the markets and what we’re doing about them, plus our losses and profits. Our position size is 0.01 lots for each $1000. The risk on each trade is 2% in a situation of an initial stop. We use the Price Behavior Rules for strategic decisions and our customized indicators for tactical entries. Our Trend Setter strategy has been in use for many months; with insane accuracy (first for private use, before we finally made it public). The pairs below tend to behave like ‘commodities’ rather than currencies, and therefore are more easily predictable than the majors. Some of them are crosses but we prefer to use pairs in our analysis. Our ultimate goal is to consistently survive (make money) on the markets, no matter how little. Being loyal to a major may arguably not make sense especially if it wreaks havoc on your portfolio.

AUDUSD

Primary trend: Bullish

A strong bearish dive began on May 4, 2010 and we entered short the following day at 0.9087. This pair reached a low of 0.8066 on May 25, followed by an exit signal on June 11. We closed a profit of over 600 pips. On the following Monday we entered long (though seemingly late).

Order: Buy

Entry date: June 14, 2010

Entry price: 0.8651

Initial stop: 0.8451

Trailing stop: Not yet

Status: Open

Profit/Loss: 92 pips

NZDUSD

Primary trend: Bullish

The analysis on the AUDUSD is almost applicable to this pair. From May 14 – June 11, 2010 we were on a short position, closing a profit of over 300 pips. Bearish attempts have often been rejected since May 21. We’re now on a buy signal. You need to have a clear trading plan so as not to subject your trades to premature exits.

Order: Buy

Entry date: June 14, 2010

Entry price: 0.7005

Initial stop: 0.6805

Trailing stop: Not yet

Status: Open

Profit/Loss: 65 pips

EURCAD

Primary trend: Bearish

We’ve been on a nice bearish ride since December 9, 2009 and we’ve not closed the position because our strategy still suggests the strength of the bears. False bullish signals have constantly been filtered. We have an open profit of approximately 3000 pips. The EUR is extremely hopeless against the CAD (the CAD being one of the strongest currencies for now). I can bet with $1000 that we’re right on this trade. We’ll ride the trend until we get a confirmed buy signal, after which the northwards journey would have a steaming bullish momentum.

Order: Sell

Entry date: December 9, 2009

Entry price: 1.5527

Initial stop: 1.5727

Trailing stop: 1500-pip trailing stop applied

Status: Open

Profit/Loss: 2900 pips

EURAUD

Primary trend: Bearish

Since February 12 till date, we have only 3 signals on this pair. The first signal was bearish with a profit of over 1200 pips. Followed by a bullish signal with over 300 pips in 2 days. Our last trade was a ‘sell’ signal (details below) in which our trailing stop was hit. The bias is still bearish, but we’ll wait for our strategy and price actions to confirm a potentially new signal before taking a position – whether in the direction of the bearish continuation after a considerable bullish correction or a new bullish trend.

Order: Sell

Entry date: June 9, 2010

Entry price: 1.4487

Initial stop: 1.4687

Trailing stop: 200-pip trailing stop applied

Status: Closed

Exit date: June 14, 2010

Exit price: 1.4260

Profit/Loss: 217 pips

EURNZD

Primary trend: Bearish

Our penultimate trade on this pair gave us about 1500-pip profit in about 42 days. There was another sell signal on June 9, 2010 which went very well in our favor. Our trailing stop was hit during some bullish reversal. The EUR is still weaker than the NZD and this shouldn’t bother us. Just like any other currency, the EUR is nothing but a price series. We’re waiting for the next clean signal on this pair.

Order: Sell

Entry date: June 9, 2010

Entry price: 1.7957

Initial stop: 1.8157

Trailing stop: 200-pip trailing stop applied

Status: Closed

Exit date: June 15, 2010

Exit price: 1.7709

Profit/Loss: 240 pips

AUDJPY

Primary trend: Bullish

The pair consolidated for most of the last week. As a rule, the longer the consolidation period, the more extended the breakout move when it does occur. We entered a ‘buy’ signal, and we’d hold onto the present bullish bias until a new development arises. Presently all our technical evidence points to upward movement.

Order: Buy

Entry date: June 14, 2010

Entry price: 79.41

Initial stop: 77.41

Trailing stop: Not yet

Status: Open

Profit/Loss: -21 pips

An Observer’s Trading Results: One of my readers opened a demo account at FXOpen and started placing trades based on my signals (he named the demo after my strategy). He placed 3 trades according to my most recent signals. The differences are that he’s using 2% initial stops with his trades and uses no trailing stops; he rides the trends until there’s a significant change. I personally use trailing stops especially after some 200-pip profits. So far he has profits of 170 pips on AUDUSD, 113 pips on NZDUSD and 79 pips on AUDJPY. He entered the positions during minor bear corrections in the context of an uptrend, thus having an edge.

Conclusion: My Itu Global is still being used, and of course profitable. The analyses on this Trend Setter are introduced so that you’ll know the power of big trade swings. When you got clear-cut rules, you’ll know what to do in any market situations. Being sad, discouraged and hopeless during a loss: being glad, encouraged and hopeful during a win are all an attribute of a no-rule discretionary trader. Even if a good trader loses, he knows a winning trade is around the corner. I’d like to conclude with this quote:

“The FX markets are full of great potential. You just need to know the secrets of big dogs and know what works best for you.’’ — Olanrewaju Lamidi (Trading systems developer)

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

Email: amustapha@fxinstructor.com

NB: There is risk of loss in trading, but it is possible to be a successful trader.

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