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 Disclaimer
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educational purposed only.

1
 CONTENTS

Dedication 3

About the Author 4

The Spartan Trader Fx System 7

The 1-2-3 Method 9

Exercises E1-E2 12

Solutions E1-E2 14

The HEIKIN-ASHI Candles 16

Exponential Moving Average Crossover 17

The EMA Crossover System and Spartan Trader

FX Criteria Rules 22

How and where exactly do we execute a trade 23

Money Management Rules 25

Long position and Trade Management Rules 27

Short Postion and Trade Management Rules 28

Spartan Trader FX PC screen setup & Trading Approach 30

Spartan Trader FX trading exercises (Workbook) 35-94

A trading advisor, coach or mentor 95

A personal message 97

Notes 98-108

2
 DEDICATION

This book is dedicated to

My Beautiful wife
My Son
My Sister
My Friends

And very importantly to all of you who are reading this.

I thank you for your determination and passion to achieve
trading mastery. I also want to thank you for inviting me to be
part of that quest.
Our journey begins.

3
 ABOUT THE AUTHOR

Dear Reader!

My name is Nikos Mermigas. I was born and raised in Germany. I moved to

Greece when I was 21, in 1993. I was a music teacher and travelled frequently
as musician spending many hours away from my family.

A friend, who was in a similar situation, and I decided to find something that
would allow us to spend more time with our families. Our goal was to be our
own boss and work from home. We considered many opportunities over many
months, nothing catching our interest.

At that time we were dabbling in the stock market but had never heard about the
foreign exchange (forex) market until a stock broker mentioned it to us.

Eventually something grabbed our interest! As we researched this opportunity

we knew, that indeed, forex could and would meet our goals! All we needed
was a computer and an internet connection. We had learned that thousands of
people were making a little extra spending money sitting on their couch, in their
home office, while on vacation, and even some had left their full time jobs to be
full time forex traders!!!

I fell in love with this business at first sight!!!

We realized there was tremendous potential in the forex market and started
trading with confidence. Without knowing the basic rules and without any
knowledge of the foreign exchange market, we opened a small account and
started buying and selling currencies. In less than six months my friend and I
loss almost all the money in our accounts!

So, why did we lose? The answer was very simple... WE WERE
GAMBLING! We were not trading.
We were just like 90% of the traders out there, gambling! We may have
thought we knew what we were doing but we knew nothing about trading,
period!

After almost depleting my account, I needed a break from trading. I needed to

get my thoughts in order. There were many nights I couldn’t sleep, so many
thoughts and questions flying around my mind. What did I do wrong? What
are successful traders doing differently than me? How can I improve? How can

4
I succeed in the long term? How can I handle my emotions and feelings like
greed and fear?

After a while I realized that every career, every job, and every business needs
proper training…. And why should trading be any different!?

I started reading many books which did not help improve my trading at all. I
went to many trading psychology and technical analysis seminars. I took all the
useful information from these webinars and seminars to help create my own
trading rules and my own trading system…. It took a while…. but when I
finally started following my own system’s rules, with patience and discipline,
trading started turning in my favour. I believed in myself and my rules! When
I doubled my account I KNEW I had succeeded!

A person may not need a lot of coaching to become a real trader but without the
right training I think most people are doomed to fail.

Looking back, I now see that trading is not hard to learn at all. It truly can be
very easy! We humans have a tendency to complicate things without having a
real reason to do so. That, in my opinion, is why 90% of people lose in the forex
market.

The Spartan Trader FX system can be used very successfully in any market. It
doesn’t matter if it is used on a stock chart, commodity chart, or the foreign
exchange chart. This is one of the many advantages of the Spartan Trader Fx
System.

Today, I am a full time trader. My favourite market is still the fast moving
forex market. I love to do my chart analysis in the morning. I then execute
trades when I get the signal as per my system’s rules.

Life as a trader gives me great pleasure! I have goals, but now they are more
easily attainable ! I spend more time with my family! I have reasons to think
positive! I am always confronted with new challenges and opportunities daily
and weekly but my approach to these has changed !
No task seems insurmountable .

I have met a lot of traders…80-90% of them are not making money

consistently over the long term. In fact, they lose consistently. This is an
interesting fact. Most are experienced traders with knowledge and passion for
trading. Their problem is not necessarily their trading system. They just don’t
follow their rules because they do not believe in what they are doing. Some
have no discipline, some have too much fear, and some are unable to pull the

5
trigger. Their mental state is in bad condition and they look for excuses why
they are losing trades.

Accidentally, I started to teach my system to an experienced but unsuccessful

trader through the internet. We took live trades together and I tried to help him
gain his confidence back. With a little work from both of us, he finally made it!
He became confident, disciplined, and in control of his emotions. It was
exhilarating helping him become a long term consistent successful trader! This
wonderful feeling is difficult for me to describe. He asked me if I would help
some of his friends with their trading. I took the challenge and started coaching
these traders. One thing led to another and SPARTAN TRADER FX LIVE
TRADING COURSES was born!!!!

Trading took on new meaning for me. Now, not only do I enjoy trading but also
enjoy helping others overcome their obstacles and traps which are hindering
them from becoming consistently successful in their trading!

I wish you
Health, Happiness and Success

Nikos Mermigas

6
 THE
SPARTAN TRADER FX
SYSTEM

7
Welcome to the Spartan Trader Forex Academy.

I am happy that you have decided to take your first step to financial freedom,
and to trust us to take that journey with us!

Before we start, I would like to make it clear that the Spartan Trader Fx system
and its trading philosophy are based 100% on technical analysis. As you may
know already, the computer and the internet is a must for the modern trader.
The trader is able to manage his trades easily while watching the charts and
indicators on his screen. With a simple mouse click he/she is able to open and
close positions from any place in the world.

For you to use the Spartan Trader Fx system correctly you need only a few
simple technical indicators.

It is most important that you learn to read charts and learn to see the
setups. Then take action when required according to the SpartanTrader
FX system rules.

You don’t need to understand how the indicator works to be successful in your
trading. All you need to know is how to use them correctly to make your pips.

Let’s take the example of a TV. Most people don’t know what a TV looks like
on the inside or how it works but that does not mean they can’t watch their
favourite programs. All we need to do is push the right buttons to watch what
we would like, right!? In the same way we don’t need to know exactly how an
indicator works. We only need to know how to use the indicator. It sounds
easy and I am not kidding when I say that it really is!

In trading you have to control your emotions and just follow the rules of your
system, otherwise you will be in trouble. I won’t spend much time on trading
psychology here because that is not the point of this particular E-book.
Although, it is important to always remind yourself to be disciplined and to
exactly follow the rules of the Spartan Trader Fx system to make it work. If
you do that, I promise you will have 70-80% winning trades over the medium
and long term. Of course when it comes to money, controlling your emotion is
not always that easy but with practice, will power and positive psychology you
will achieve mastery for sure. Always remember that a true trader is open-
minded, focused on his system, his profits, his success, and right money
management, not on his losses.

8
The system is very easy to understand. After you read this e-book, at your
request, I will show you for free many examples in a live-trading session so you
can be more confident with my system.

On the following 100 pages I will guide you step by step through the Spartan
FX system. When I was learning about forex I spent countless hours in front of
my computer fine tuning my system. I desperately wanted to make this work! I
remember having difficult and often torturous times before I made it, but I
persisted and therefore, I was rewarded.

The basic philosophy and goal of my system was and is, to cut my losses and let
the winners run. You will learn, in a pleasant way, the Spartan Trader FX
system, how to use the techniques, and how to trade successfully without going
through all the trouble I experienced in the past. You will find enough space in
this book to make notes and write down your thoughts.

Just keep it simple and you will succeed!

Have fun and enjoy!

9
 THE 1-2-3 METHOD

THE 1-2-3 method has existed in technical analysis for quite some time but
unfortunately many traders do not know how to use it the right way. The
Spartan Trader Forex system is based on this technique, but only in combination
with 2 other indicators. This combination is the key to getting outstanding
results in trading. If you use it correctly! You will be able to pick up the
bottoms and tops and ride the market trends on any time frame, if you will
follow the rules of the system 100%.

So, what other indicators do we need to approach trading according to the

Spartan Trader Forex system?

A) HEIKIN ASHI CANDLES

B) EXPONENTIAL MOVING AVERAGE CROSSOVERS

After analysing our trades with these indicators, we look at a NEWS

CALENDAR to make sure that we do not execute a trade close to an important
political or economic news announcement.

You must be thinking at this time that this is too simple to be true, but believe
me it really is! You just have to get used to the system and practice it as often
as you can until this strategy becomes a habit.

After understanding the basics you must believe in yourself and always focus on
your success and nothing else.

I highly recommend that you first use a Demo-account and only start trading
real money after you perfectly understand the system and double the money on
your practice (demo) account.

Do not trade if you are tired or in bad psychological condition.

Before you turn on your computer make sure you are focused and your mindset
is on the right frequency for trading.

10
You should always know that small losses are part of the game. This should
never interfere with your decisions to pull the trigger when you get the signal.
Do not waste your thoughts on fear and greed. Try to focus on the system’s
rules. When you can focus every day on the system’s rules you will see how
easy trading can be in the end.

Let’s start with the basics…

How do we indentify and use the 1-2-3 method the right way!
You surely have noticed that price never moves in a straight line during a trend.
Price will take a breather and retrace often before it reaches a top on an up
trend, or a bottom on a down trend.

The first sign of a trend change appears when the market creates a lower low
(2) and a lower high (3), after a previous high (1) in an up trend; or a higher
high (2), and a higher low (3), after a previous low (1) in a down trend.

11
N1

In the next example (N2) and with the help of the trend lines you will see how
easily you can locate the 1-2-3 setups on the charts.
1. Find and connect the lowest points in an up trend. Search for at least 3
touches (red line). Price follows the trend line to the upside.

2. Next connect the lowest point (1) with the following high (2) and this
again with the next low (3).

There is your first and OBVIOUS 1-2-3 to the upside. Are you beginning to
see how easy this is?!

12
Price continues its move to the upside creating another bullish 1-2-3. This is a
confirmation that the uptrend is still on.

A new high is following but price does not show us its intentions clearly. As
you can see, now the candles are failing to bounce on the up trend line and that
means that the buyers are slowly loosing their power.

What is happening now?

For the first time and after the highest point (1), you can see a lower low (2) and
a lower high (3).
What else do you see?
The up trend line has broken too. This bearish 1-2-3 after the uptrend is our
first sign and warning.
As you can see, now more bearish 1-2-3s are following and the trend has now
clearly changed to the downside (blue line).

N2

13
 EXERCISE E1 & E2

Please take a pencil and a ruler to draw the trend lines and the 1-2-3 setups on
the charts.
Further try to spot the trend changes on both examples.
Look for help from the previous chart example (N2).
If you like to take notes feel free to do so. You will find enough space on the
next page.

E1

14
E2

NOTES E1:

NOTES E 2:

15
 SOLUTIONS FOR E1 & E2

E1S.

The bullish 1-2-3 at the left bottom on this chart is the first sign for a bullish
trend. Point 3 is higher than point 1, so price has created a higher low.
Now connect all the higher lows and you will find you have drawn the up trend
line (red line). See how you now have a series of higher highs and higher lows.
You can easily spot the following bullish 1-2-3s (blue lines).
The support (red line) is strong because, as can you see, price always bounces
after a touch with this trend line.
After seven bullish 1-2-3s the buyers start to loose their power and the market is
not able to create a new high 1.

16
The trend line (red line) is breaking for the first time. Now you can see a lower
low 2 and a lower high 3. The support line (red line) has become a resistance
line now. The first sign for a downtrend is given here.

E2S.

The bearish 1-2-3 at the left top on this chart is the first sign for a bearish trend.
Point 3 is lower than point 1, so price has created a lower high.
Now connect all the lower highs and you will find you have drawn the down
trend line (red line). See how you now have a series of lower lows and lower
highs. You can easily spot the following bearish 1-2-3s (black lines).
The resistance (red line) is strong because, as can you see, price always bounces
off the trend line.
After eight bearish 1-2-3s the sellers start to loose their power and the market is
not able to create a lower low (after point 1).
The trend line (red line) is breaking to the upside. Now, for the first time you
can spot a higher high 2 and a higher low 3. Now the resistance line (red line)
has become a support line. The first sign for an up trend is given here.

ALWAYS REMEMBER !
WE NEED TO FIND AT LEAST 3 TOUCHES TO CREATE A TREND
LINE

17
 THE HEIKIN-ASHI CANDLES

We are using the Heikin-Ashi candle instead of the regular candlestick. The
Heikin-Ashi candle chart looks almost like the regular candlestick chart but the
method of calculating the candles on the Heikin-Ashi chart is different. You can
find Heikin Ashi candles on most of the trading software platforms.

With candlestick charts, each candlestick shows four different prices: Open,
Close, High and Low price. Each candlestick is independent and has no relation
with the previous candlestick. Heikin-Ashi candles are different. Here the
candles are calculated and plotted using information from the previous candle.
The price movement looks very smooth on the chart and the 1-2-3 setups are
more easily spotted. We will also be able to avoid bad trades and identify trend
changes faster using these candles the right way. Later on in this e-book I will
explain in detail how we do that.

N3

18
 EXPONENTIAL MOVING AVERAGE (EMA) CROSSOVER

Moving average (MA) is one of the most popular and easiest indicator to use for
the technical analyst. They smooth out price action and therefore make it easier
to spot a trend. This is very helpful in volatile and trending markets. The
market consists of huge crowds and the moving average identifies the direction
of mass Movement.

Of course all moving averages are lagging indicators and will always be behind
price. The moving average works great in trending markets. Currencies trend
very well, so they work great as a trend following indicator. When there is no
trend the MA will give many false signals. For this reason, we always need a
combination of indicators to make the trading system work.

EMA gives greater weight to the latest data and responds to changes faster than
a simple MA. Moving averages will help us to trade and to stay in the direction
of the trend as long as possible. This makes the EMA a very important tool to
the Spartan Trader Forex System.

The EMA’s that we need and the reasons we use them are the following…

EMA 200 :
• On all timeframes, to locate and watch market trends
and for support and resistance levels.

EMA 633
• For support and resistance levels on all time frames.

EMA 12/EMA 36
• Cossover on all timeframes to define trading
entries/exits, to locate trends and to manage trades at
support/resistance levels.

19
Note:

You will notice that we used different colours to write the various EMAs
above. We have colour coded the EMAs on our chart using these colours.
You may want to do the same to facilitate following our chart examples.

N4

On chart (N4) you can see the nice down trend using Heikin-Ashi candles.
Now take a look at the EMA’s. All four are above the price. It looks like EMA
36 is pushing price to the downside. During a trend, the EMA 36 is our most
important resistance/support level. If price breaks the EMA 36 and a 1-2-3
setup forms after that, then there is a good possibility for a trend change. Now
that you understand the basics let’s start with EMA 200.

As a general rule we can say, if price moves under the EMA 200 we are looking
for shorts, and if it goes above the EMA 200 we are looking for long trades.
Knowing this of course is not enough but at least you get the direction of the

20
trend and know what to look for. Many times you will get a signal not even
close to the EMA 200. Keeping in mind this general rule of 200 EMA will
help, so you are able to make your decisions much faster.

The following example (N5) should help you understand.

After you have studied the chart two more exercises (E3/E4) will follow. Like
before feel free to use a pencil and a ruler to draw your trend lines and 1-2-3
setups. Only after you finished drawing the trend lines and 1-2-3 setups then
check the solutions.

Price is bouncing on the EMA 200. As you can see at the blue arrows long
trades are in play. The support line is holding at first so there is no sign for a
short trade. After the trend line break and the break of EMA 200 you can spot
the bearish 1-2-3. Price is not able to pass the EMA 200 to the upside again.
After the 1-2-3 setup, the 2 to 3 line breaks (blue circle). Now shorts are in
play.

21
N5

22
Exercise E 3

23
Solution E3S.

24
 THE EMA CROSSOVER SYSTEM
AND SPARTAN TRADER FX CRITERIA RULES

Now that you understand how to use the EMA 200, let’s go on to the crossover of
EMA 12 and EMA 36. The EMAs and the EMA crossover system will be used in
combination with the 1-2-3 method. With this, you will learn were to enter a trade and
how to manage the trade when the trend is changing its direction. You can use this
method on anytime frame. Later on I will explain how to approach a trade, no matter if
you want to scalp or swing the market. It is very important to remember and always
follow the rules of the SPARTAN TRADER FX system before you take any action.

Confirmation for a long entry

(BUY ORDER)

1. Do we have an EMA 12/36 crossover to the upside?

2. Do we have a support at the price level?

3. Do we have a break of resistance level(s)?

4. Do we have a point 2-3 break to the upside after the 1-2-3 setup?

Confirmation for a short entry

(SELL ORDER)

1. Do we have an EMA 12/36 crossover to the downside?

2. Do we have a resistance at the price level?

3. Do we have a break of support level(s)?

4. Do we have a point 2-3 break to the downside after the 1-2-3 setup?

Only if you answer yes on all four rules, you should take action and
execute the trade

25
 HOW AND WHERE EXACTLY DO WE EXECUTE A TRADE?

On the following chart you can see the execution of a short trade (eur/usd) using the
one minute chart for an early entry.

N6

Let’s analyze this short trade. Imagine you are sitting in front of this particular chart
trying to spot a trade. So how do you start?

First you have to focus and remind yourself of the four rules you need to follow before
you take any action.

At the upper left side you can see that price has stopped its move to the upside (1).
After the down crossover of EMA 12/36, the candles break EMA 200 support quite
fast, creating a lower low on the chart (2). Then price was able to retrace back to the
EMA 200 level again (3) were it found resistance creating a nice 1-2-3 setup.

Please make sure that point 3 is always lower than point 1 when we are talking about a
bearish 1-2-3 setup, and higher than point 1 when we talk about a bullish 1-2-3 setup.

After the down break of the 2-3 line (look at the red arrow) you have to take action and
execute your short trade.

It is important to enter at the right level to get the best price possible especially when
you are scalping the market.
26
Look at the 2-3 break again. Notice the first red candle after the break. You can see a
big candle body with a small lower shadow/tail exactly on the EMA 200/36 and 12 (in
the black rectangle). It is important the body of this red candle closes at least 50%
under EMA 12 (over the EMA 12 for longs) to alert you. Then you wait for price to
move a couple of pips under the previous candle and off you go. You enter the trade
exactly at this level.

N7

At the lower left side you can see that price has stopped its move to the downside (1).
At first you can see that price is able to break the resistance line (blue dotted line).
After the up crossover of EMA 12/36 (in the black circle) the candles also break over
EMA 200 resistance, creating a higher high (2) and a higher low (3) on the chart. Then
price was able to find support at EMA 200. You should easily spot the 1-2-3 setup
now.

Please make sure that point 3 is always higher than point 1 when we are talking about a
bullish 1-2-3 setup.

After the up break of the 2-3 line, (look at the blue arrow) you have to take action and
execute your long trade.

Again look at the 2-3 break. Notice the first green candle after the break. You can see
a nice candle body with a small upper shadow/tail exactly on the EMA 12 (in the black
rectangle). It is important the body of this green candle closes at least 50% over the
EMA 12 to alert you. Then you wait for price to move a couple of pips higher than the
previous candle and off you go again. You enter the trade exactly at this level.
27
Please remember patience is the key here. Many traders don’t wait for a retracement
(the 1-2-3 to set up). It is very important to give the market time to breathe and execute
your positions at the right spot. The first reason to do so is that you will have a low risk
and high probability trade. Secondly, you normally get a much better entry price. The
third reason is you will be able to place your stop at the best price.

28
 SPARTAN TRADER FX MONEY MANAGEMENT RULES

To make money in the forex market or in any other financial market you have to follow
healthy money management rules. If you think you can make money without these
rules for the long term, I have to disappoint you. Even with the best system you are
likely to loose your money if you don’t know how much to risk on each of your trades.
To protect your money you have to always place stops at the right place. Many traders
think that stop losses are their enemy and hate it when a stop gets hit. That is really
wrong and the key to disaster. The stop loss is there to protect you from loosing your
money. Yes, the stop loss is your ally not your enemy! Start to believe this and
trading will be much easier for you in future.
A general Spartan Trader Forex rule says…

We never risk more than 2% of our money on any trade!

The most important thing you have to think about even before you execute a trade is,
“how much money can I allow myself to loose if the trade does not go my way and,
where exactly do I place my stop”?!

The Spartan Trader Fx system has clear rules on this most important subject. You
should never even think about not placing a stop loss order when you execute a trade.

Remind yourself that the exit rules of any system are more important than the entry
rules and you will do just fine!

The following rule is there to help you improve your discipline…

I WILL ALWAYS PROTECT MY MONEY BY PLACING A STOP LOSS ORDER

BEFORE OR IMMEDIATELY AFTER I HAVE ENTERED A TRADE.

THE STOP LOSS ORDER IS MY ALLY AND NOT MY ENEMY!

After you have placed a stop loss order you then wait patiently to see how the trade is
doing. If it is going your way you have to trail your stop to minimize your losses. If
the trade is not going your way then two things can happen. 1. You get stopped out or
2. You get a reversal signal. When this happens you reverse your positions, closing
your trade even before the stop gets hit. So remember: having a stop loss order in the
market does not mean that it has to get hit.

A reversal signal will give you the opportunity to enter a new reverse position and to
minimize your losses. After a few pages I will explain and show you exactly how to do
that. Before that, please take a look at the following chart. Here you can see how
frustrating it can be to trade without strict rules and discipline.

29
N8
30
 LONG POSITION AND
TRADE MANAGEMENT RULES

What should you do now?! First of all you should relax and go quickly through all the
system rules again. You know that you have a high probability and a low risk trade in
front of you. So there is nothing to worry about. You should be happy that you are
able to spot this setup and that you took action immediately. O.K., now you have
executed a long position…

1. The Spartan Trader FX system works best with 3 lots (or 1 lot divided into 3
parts) when entering a trade. We recommend starting with micro lots.

2. The target for the first lot should be at least 20-30 pips depending on how fast or
volatile the market is moving when you enter the trade. For the second lot you
should follow the EMA 12 looking for higher highs and higher lows. Trail your
stop under the trend line and go for at least 40-60 pips here. For the last lot, you
should wait for a lower low and a lower high, and a clear trend line break. If the
trend is strong then the last lot can give you much more than 100+ pips,
depending again on the currency pair and the movement. You can trade any pair
you like, but I personally prefer faster moving pairs with the nice and obvious 1-
2-3 setups, like EUR/JPY or GBP/JPY for example.

3. Place a protective stop loss order of 20-25 pips under the closest support level.
For example: Trend lines or EMA support levels.

4. Look for resistance or potential reversal levels during the uptrend so that you are
prepared to take some of your profits out. To do that, you have to switch to
higher time frames like 15/30 min or 1/4 hour charts. Look again for trend lines
and EMA 200/633/36/12 resistance.

5. If your first target gets hit, move your stop slowly with caution to the upside.
Make sure you place the stop order still 10-15 pips under a good support level.
Do the same with the remaining two lots so that you can achieve the best results
in the long term.

6. It is not necessary to wait for your stops to get hit. When the signal changes,
just close your position and wait for the next opportunity. So, let’s assume
that you have entered a long trade, but soon after your entry the price goes
against you. If price goes below point 3 of your bullish/long 1-2-3 setup and
closes below point 3 you are out. There is no need to wait for bigger losses. The
stop loss order is there to protect you but that does not mean that you have to wait
until it gets hit.

31
 SHORT POSITION AND
TRADE MANAGEMENT RULES

Let’s assume that all rules are respected and you have a clear short signal on a 5
minute chart for an intraday trade.

Enter the short position, and remember…..

1. You cut your position into three parts (1 lot x 3 or 1 lot divided by 3), depending
on what is more convenient for you.

2. The target for your first lot should be at least 20- 30 pips depending on how fast
or volatile the market is moving after entering the trade. For the second lot you
should follow the EMA 12 looking for lower highs and lower lows. Trail the
trend to the downside and go for at least 40-60 pips here. For the last lot, you
should wait for a higher high and a higher low, and a clear trend line break. If the
trend is strong then the last lot can give you much more than 100+ pips
depending again on the currency pair and the movement.

3. Place a protective stop loss order of 20-25 pips under the closest resistance level.
For example: Trend lines or EMA resistance levels.

4. Look for support or potential reversal levels during the down trend so that you
are prepared to take some of your profits out. To do that, you have to switch to
higher time frames like 15/30 minute or 1/4 hour charts. Look again for trend
lines and EMA 200/633/36/12 support.

5. If your first target gets hit, move your stop slowly with caution to the downside.
Make sure that you place the stop order still 10-15 pips above a good resistance
level. Do the same with the remaining two lots so that you can achieve the best
results in the long term.

6. It is not necessary to wait for your stop to get hit. When the signal changes, just
close your position and wait for the next opportunity. So, let’s assume that you
have entered a short trade, but soon after your entry the price goes against you. If
price goes above point 3 of your bearish/short 1-2-3 setup and closes above point
3 you are out. There is no need to wait for bigger losses. The stop loss order is
there to protect you but that does not mean that you have to wait until it gets hit.

BY FOLLOWING THESE SIMPLE RULES I REALLY CUT MY LOSSES

AND LET MY WINNERS RUN

32
 Now study the chart very carefully. Look at the entry, exit and stop levels. After this example (N9 eur/usd 5min) many exercises
will follow, so you can practice this simple and very effective trading strategy.

N9
33
 SPARTAN TRADER FX MONITOR SCREEN SETUP
&
TRADING APPROACH

Before we start to practice with exercises in this book let’s first organize the charts on
your screen and take a look at how to approach trading the right way.

1. Open 4 charts with the same currency pair on your screen. Choose the daily, 4
hour, 1 hour and 5 minute chart (N10).

2. Choose Heikin-Ashi candles instead of classic candle sticks on all four charts.

3. Choose different colors for your EMA setup. I prefer blue for the 12, red for the
36, black for the 200 and gold or brown for the 633 EMA.

After your 4 screen setup is ready, you must do your top-down approach. Make sure
you are relaxed and able to focus.

First look at the daily and4h chart to get the direction of the trend, if there is any of
course. Look for trend line breaks, support/resistance levels, and where the EMAs are.
Additionally look for double tops or double bottoms so that you can get an idea in which
direction the market could move in future. Let’s say you have spotted an uptrend on the
daily and the four hour charts. Now switch to the 1h chart to take a closer look. If you
spot a long 1-2-3 setup with no lower high in the making and price remains over the
200/36 and 12 EMA, then you are looking 100% for long trades. Now switch to the 5
min chart and look for a good setup according to the Spartan Trader Forex system.

If you are in the trade making good pips and you have already taken some profits,
always remind yourself to switch to the higher time frames and look for these important
support/resistance levels. Bounces off the EMA 200 on the 1 hour or 4 hour chart can
be very powerful.

It is important that you organize your trading. Spend a few minutes every day to
analyze your charts and the fundamental news before you take any action. Why
fundamental news? You don’t need to know about the announcement results to take an
action. What you are looking for is the time the really important news is released. As
you may already know important news can move the markets like crazy within a few
seconds.

After you have turned on your computer choose one good website to find out what time
the important news announcements will be released for that day. Important
announcements for example are: Non-farm payrolls, Fed, Trade balance, Ism or
Cpi-Ppi.
34
Make sure you don’t enter a trade 15 to 30 minutes before the important news
announcements. Wait until the news is out and the market has relaxed then look for a
trading signal.

Let’s assume you are already in a trade. In this case you have to make sure that you are
able to manage your open position(s) well. Often many good signals appear right after
an important fundamental news announcement. So after you have done your analysis
you are free to enjoy your trading with passion.

FUNDAMENTAL NEWS CALENDAR EXAMPLE

N10

35
 SPARTAN TRADER FX 4 SCREEN SETUP

N11

N12

36
N12

N13

37
N14

The screen on your computer should look like this. It can be very easy to spot a trade if you can watch all four charts at once. All
support and resistance levels are easy to spot like this.
38
 SPARTAN TRADER FX TRADING EXERCISES

Before you start the exercises make sure that you understand the system’s
rules. If you are not sure about something review that particular subject
again. Also try to stay focused and relaxed when you are doing the exercises.

Take breaks and don’t get upset if you are not able to do it 100 % right the
first time. It is normal that you need time to get use to the system, but after a
while, you will see how easy it really can be.

Use a ruler and colored pencils if you prefer to draw your trend lines, 1-2-3
setups, targets, reasons, limits and stop orders. This way you can make fast
and easy corrections on the charts.

Later on I will show you how to manage a trade when it is not going your
way, and how to decide when it is best to stand aside and avoid trading.

Let’s start!

Take a look again at the following chart (T1) and study this example well.
Use it at any time as a guideline for the future exercises.

In the next 15 exercises I would like you to find the support/resistance levels,
the trend line breaks, the 1-2-3 setups, the exact entry and exit points of all 3
positions, the stops and trailing stops, the results and of course all the trading
reasons you can find.

Remember that you have to cut your position into 3 parts, so every time you
open a position you have to manage 3 lots.

Have fun!

39
SPARTAN TRADER FX

WORKBOOK

EXERCISES & RESULTS

T1-T15

40
T1

41
T1 fix

42
Look at the short trade. You had an EMA crossover to the downside, but there is still an EMA 200 support. This is a more
aggressive entry but allows you to enter a position earlier. You don’t have to take this short position if you prefer to trade more
carefully or conservatively.

T2
43
T3

44
T4

45
T5
46
T6

47
T7

48
T8

49
T9

50
T10

51
T11

52
T12

53
T13

54
T14

55
T15 Find the entry on the 1H chart (Left) and compare with the entry on the 5 Min chart (right). What do you notice ? Do the
exercise and take time to compare the two frames.
56
SOLUTIONS
T2-T15

57
T2FIX

58
T3FIX

59
T4FIX
60
T5FIX

61
T6FIX

62
T7FIX
63
T8FIX

64
T9FIX

65
T10FIX

66
T11FIX
67
T12FIX

68
T13FIX
69
T14FIX
70
T15FIX

71
 IN THE FOLLOWING FIVE EXERCISES YOU
WILL LEARN HOW TO MANAGE A TRADE
WHEN IT IS GOING AGAINST YOU.
AGAIN USE YOUR PENCILS/ RULER AND MAKE
YOUR NOTES.

L1 - L5
&
COMPARE TO YOUR RESULTS

72
L1

73
L1FIX

74
L2
75
L3

76
L4

77
L5

78
L2FIX
79
L3FIX
80
L4 FIX
81
L5FIX

82
You made it ! Congratulations.

Hopefully you are reading this page because you have worked through all to
the exercises preceding this.
These exercises were carefully chosen to provide you with as much exposure
to the Spartan Trader Forex System as possible.
I hope that most of the exercises have been helpful to you. With a bit of
practice I am convinced that anybody can learn to trade this simple and most
powerful system.

It is important that you write down your questions and repeat the exercises
until you thoroughly understand the concept.

Take a look at the following 4 charts. These examples are as important as the
main system itself because here you will learn when it is best to take a break
and stay out of trading. Try to remember the following examples in order to
spot setups like this in your future trading.

83
O1

84
O2

85
O3

86
O4

87
NOW TRY IT FOR YOURSELF

EXERCISES & SOLUTIONS

O6-O10

88
O6
89
O7

90
O8

91
O9

92
O10

93
O6FIX
94
O7FIX
95
O8FIX
96
O9FIX
97
O10FIX

98
 A TRADING ADVISOR, COACH OR MENTOR

If you want to enjoy financial freedom through trading you have to follow proven
strategies and systems. The key to achieving this is in your head. The way you think
will greatly impact your success as a trader.

You must have goals and targets, dreams and passion, discipline and patience.
At times you will have to take two steps back just to move one forward but if you really
love what you are doing you will succeed in the end.
You will find that a trading coach or mentor can make the difference between success
and failure.

A good Trading coach should be a person you can trust, who will guide you, who will
advise you, and who will take you through all the obstacles during your training. There
is really no need to fail at trading if you have someone who is able to show you the way
to do it right. More importantly, you must be willing to listen and follow their guidance.

Unfortunately only a few traders seek help from a trading coach therefore it should not
surprise you that more than 90% of all traders lose their money. Of course it is not easy
to find someone you can really trust. Looking at the quantity of forex related companies
on the web it is very difficult to determine who is worth the effort and the cost of the
course.

Avoid mentors who are promising millions in only a few weeks with very little effort on
your part. Be reasonable and think logically, every professional singer or artist or
athlete has a coach and a teacher. To reach the top you have to choose the best training
you can get and with trading it is no different. You need to get better at what you are
doing every day and a good coach will surely help you with that.

Developing positive psychology is arguably the most important aspect of trading. If

you are able to overcome your fears, your overdoses of greed, and your anger in trading,
you will find that this will impact everything else in your life. Success at trading has a
spill over effect in the rest of your life.

Remember - The best system in the world is worthless if you are not able to take
responsibility for yourself and learn from your mistakes.
A good trading mentor should be able to take you to higher levels step by step and
encourage you on your journey to the top.

The student-mentor relationship should be based on respect and focused on your

professional growth. Your personal coach should have one main goal - to help you
achieve your goals so you can live the life you have always dreamed about.

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Don’t hesitate to find yourself a good trading coach if you are not satisfied with your
results.

It is truly worth it and I am not just saying that. I speak from experience!

If you have any questions, or if you are interested in joining our club by participating in
one of our SPARTAN TRADER FX mentoring courses, please feel free to visit our site
www.spartantraderfx.com or send us an email at info@spartantraderfx.com

100
 A PERSONAL MESSAGE

Trading in the forex market can indeed be profitable if you know what you are doing,
however you have to keep in mind.

• If you are not able to follow the rules of any good system, you are simple not able
to succeed.

• You should trade first with a demo account and double the money on that account
before you consider trading with real money.

• You have to become confident with the system before you risk even a cent of
your own money. Then you should start with small lots and increase your lot size
according to the system’s rules.

• If you are not able to pay your monthly bills at home, or if you need every cent of
your money to survive, you should not even think about trading with real money.

• If you don’t have any experience in trading look for a mentor or coach to assist
you. This is very important especially for new traders.

• Many people don’t mind losing a lot of money in the financial markets but they
never consider participating in a good training program or trading courses. This
could save thousands in the long term.

I hope this E-Book was helpful to you.

I wish you health, success and happiness in your life and of course in your trading

Nikos Mermigas

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SPARTAN TRADER FX ©
ALL RIGHTS RESERVED 2010

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