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Disclaimer
Every individual investors success depends on his or her own background, instruction,
devotion, dedication, perseverance, aspiration and inspiration. As with any business
endeavour there is always the possibility of loss of capital and there is no guarantee the use
of this book will result in profits or success. The information enclosed herein is intended
strictly for instructive purposes. Nothing in this publication should be construed as an
approval to buy or sell any security or to offer any investment counsel. It is possible the
author of this book at this or a subsequent time in the future may own, buy, or sell
securities discussed. Information provided herein has been obtained from sources believed
to be reliable but no guarantee is made as to their precision or comprehensiveness. The
advice of a knowledgeable legal, tax, accounting, or business professional should be sought
at all times.
U.S. Government Required Disclaimer Trading foreign exchange markets on margin carries
a high level of risk, and may not be suitable for all investors. The high degree of leverage can
work against you as well as for you. Before deciding to invest in the Forex market, you
should carefully consider your investment objectives, level of experience, and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment
and therefore you should not invest money that you cannot afford to lose. You should be
aware of all the risks associated with foreign exchange trading, and seek advice from an
independent financial advisor if you have any doubts. Readers of this publication should also
be aware of the following CFTC disclosure rule 4.41 regarding hypothetical performance
results:
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Now, Im really not big into writing; so Im going to keep this manual short and
simple.
This is the plan:
1)
2)
3)
4)
Heres some good news for you. No, actually, heres some great news for you...
Forex Pip Pirate works on all timeframes. Thats right, its pretty much
universal. Well, within reason, I mean dont go off and start scalping the 1minute right from the start (its damn tricky!).
Make it easier for yourself and stick to higher timeframes.
Ill give you two tips for trading intraday:
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Chart Setup
Im going to show you how to setup the charts on Metatrader4.
This is the platform that most traders are used to and almost all brokers
provide a demo account for free.
Well start with a clean chart:
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We then drag the MACD indicator on to the chart and enter the following
settings:
Slow EMA : 5
Fast EMA : 3
MACD SMA : 3
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Next we add another MACD indicator this time with the following settings:
Slow EMA : 26
Fast EMA : 12
MACD SMA : 9
(NOTE: These are the default MACD settings on almost all MACD indicators)
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Entry
Rule #1
- We only BUY when the lower MACD (thats the one with the 12,26,9
settings) is ABOVE the 0.0 line.
- We only SELL when the lower MACD is BELOW the 0.0 line.
Heres what I mean:
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Rule #2
If the lower MACD is ABOVE the 0.0 line we look for the upper MACD (thats
the one with settings 3,5,3) to cross BELOW the 0.0 line and then ABOVE the
0.0 line.
Like this:
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Rule #3
Once we have Rule #1 and Rule #2 met we are then finally triggered into a
trade if Rule #3 is met.
- If we get BUY on Rules #1 and #2, we are ready to buy, but we only buy if
the close is in the upper quarter of the candle.
- If we get a SELL on Rules #1 and #2, we are ready to sell, but we only sell if
the close is in the lower quarter of the candle.
See this example of a valid BUY signal:
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Exit
The Stoploss
The stoploss is very easy.
All we do is place it a few pips below the low of our BUY candle; or place is a
few pips above the high of our SELL candle.
A couple of examples:
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Easy, eh?
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This is a great exit method that will give you a high percentage of winners.
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Now, if you can trade two lots, you can exit the first lot at 1x the stoploss; and
exit the second lot at 2x the stoploss. Like this:
If you three lots then you would exit the first at 1:1, the second at 2:1 and the
third at 3:1.
I dont think I need to show an example of that as Im sure you understand the
exit method now.
NOTE: WHEN YOU EXIT THE FIRST LOT AT 1:1 THEN MODIFY THE STOPLOSS
ON THE REMAINING LOT(S) TO YOUR ENTRY PRICE!
You will see that Forex Pip Pirate manages to pick very good entries for you.
In all honesty, you can pretty much exit using any reasonable method you have
ever learned and it will work really!
Just be consistent in the exit method that you choose. Stick to it for every
trade!
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Real Trading
Im not sure I really need to go through any real trades for you as the system
really is simple to trade.
Youve understood it completely so far, right?
Well, just in case, Ill run through a few trades...
As I write this it is early (too early! ) on the morning of the 12th of July 2011.
Lets start with the 5-min chart of EUR/USD from yesterday.
The following three charts show the London session and the start of US session
(this is all I trade I generally dont trade the afternoon US session):
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As I said previously, the Asian session is good for AUD, NZD and JPY pairs.
Heres the AUD/USD during Asia last night:
Im sure youve got a good idea of how Forex Pip Pirate works now.
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Shiver My Timbers!
Thats it Shipmates I told you it would be short and simple.
Now, of course I recommend that you start trading right away.
But, I recommend you take a look through your charts too; Im confident you
will like what you see right away.
Forex Pip Pirate is simple (as youve seen!).
But it is very effective too as you can hopefully see also.
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