Make Money With No Stop Currency Trading

Make Money With No Stop Currency Trading

Make Money with No Stop Currency Trading
Hedged,​ No Stop,​ Forex Grid system trading (the No Stop system) is​ one of​ the​ most misunderstood techniques in​ forex trading .​
I​ am going to​ describe the​ No Stop system as​ best I​ can in​ the​ limited space available .​
There is​ a​ series of​ 7 other articles describing the​ elements below in​ greater detail.
There are many hedged systems around and the​ No Stop system below is​ one that is​ being traded profitably.
The No Stop system is​ an​ investment technique which creates favourable dollar cost averaging on​ all transactions entered into .​
For this reason the​ technique is​ too much of​ a​ paradigm shift for most conventional traders who like charts,​ support and resistance and indicators .​

It is​ strictly speaking,​ it​ is​ not a​ trading technique .​
It has however become very popular as​ a​ trading technique because of​ the​ short term gains that can be made.
The No Stop system trades without stops .​
No stop loss orders are used at​ all except for when a​ group of​ transactions have a​ positive result and we want to​ liquidate the​ entire group of​ transactions at​ a​ net gain .​
Because the​ No Stop system cashes in​ its transactions regularly it​ becomes a​ trend following No Stop system too .​
There is​ no need for charts when using this No Stop system as​ we use predetermined price levels to​ cash in​ transactions positively (The No Stop system loves price spikes).
Transactions can or​ should be slow at​ a​ rate of​ about 3 to​ 4 a​ week .​
As price levels are determined well in​ advance orders can be placed well in​ advance so the​ No Stop system takes very little supervision .​
The technique is​ highly systematic and can easy be converted into an​ automatic trading system or​ expert advisor very easily .​
The No Stop system is​ always in​ a​ sell and a​ buy at​ the​ same time and therefore can cash in​ on​ any move the​ market makes .​
Being in​ a​ sell and a​ buy at​ the​ same time also created a​ hedge .​
Predetermined cash in​ levels create a​ grid of​ price levels there positive transactions will be cashed in​ continuously until the​ group of​ transactions are profitable .​
In simple terms you​ will enter the​ market at​ a​ particular level with an​ active bay and a​ sell .​
You would have predetermined levels at​ which you​ would cash in​ positive transactions .​
For instance one could decide to​ cash in​ on​ every 100pip (grid gap) move made in​ the​ market .​
When the​ price moves 100 pips you​ would cash in​ your positive transaction and then enter into another buy and sell transaction at​ that point .​
This process will continue until the​ total for the​ group of​ transaction is​ positive and then you​ would liquidate .​
You would then start again – as​ simple as​ that .​
No need for charts .​
Patience is​ the​ biggest virtue required.
Money is​ made when the​ price revisits some of​ the​ cash in​ levels over and over and over again (which it​ does) .​
In the​ above example should the​ price return to​ the​ starting level (after moving 100 pips) the​ group of​ 4 transactions in​ total will be positive and you​ would then cash in​ the​ unwanted transactions,​ bank your profits and start again.

The big danger of​ this No Stop system is​ strong trends with no or​ very few retracements .​
You will lose money in​ trends .​
There are however specific techniques to​ manage and contain these losses .​

The biggest one is​ to​ start with a​ big grid gap .​
What is​ a​ trend on​ a​ 5 minute chart could be a​ small spike on​ a​ daily or​ weekly chart .​
Grid gaps of​ between 150 pips and 300 pips have been found to​ work well .​

One could also vary the​ grid sizes relative to​ the​ trend to​ reduce the​ number of​ unhedged transaction .​
For example have grid gaps of​ 100,​ 200,​ 300 etc .​
The other way is​ to​ vary the​ number of​ lots used when entering into the​ buy and sell transactions at​ a​ particular cash in​ point to​ ensure balanced hedging .​

Trends tend to​ scare people away from this technique but if​ one views this as​ an​ investment technique and not a​ trading technique the​ trends could have a​ reduced impact on​ the​ annual return on​ investment .​
The market only trends 20% of​ the​ time any way .​
Talking about return on​ investment some current trading groups are showing returns of​ between 200% p.a .​
and 1000% p.a .​
on current investment levels .​
There are many trading records are available to​ back this up .​
The longer you​ trade this No Stop system the​ lower your risk and the​ better your return .​
That said,​ you​ can lose more than just your boots (your whole trading account) if​ you​ treat this No Stop system with disrespect.
Success factors for this No Stop system are: - Selecting appropriate grid sizes,​ currency pairs,​ lot sizes,​ cash in​ times and an​ investment mentality .​
All very easy,​ if​ you​ have done it​ for a​ few years .​

This No Stop system is​ not for everybody however,​ and is​ not the​ best Forex system since sliced bread,​ but is​ does very nicely for some traders,​ thank you​ very much .​
It is​ important to​ know about this system as​ using its principles could help your conventional trading .​
For freely available information on​ this No Stop system search the​ net for no stop forex trading

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