526# SDF, Forex Trading System
SDF forex trading
Submit by Buddy 21/12/2013
This SDF Forex Trading System works with Metatrader 4 platform. if it’s installed on your computer, please sign up with any broker you choose – that supports Metatrader – open a demo account and start the installation process.
Please note that the indicators used are the ex4 files. This file format is not a desktop based application. So please don’t try to run it by double clicking on it. It won’t work!
This SDF Forex Trading System is designed for long term daily trading. It’s not for scalping.
Please don’t use the SDF Forex Trading System on your live account without testing on demo first for at least 1 month. This is very important. You must test on demo so you can understand how it works and what’s the best way for you to use it according to your own needs and trading style.
You don’t need any trading experience to be able to use the system, but you need basic trading knowledge. Especially regarding money management and how to work with Metatrader 4.
Best time frame for this SDF Forex Trading System is 1 hour chart and best currency pair is EUR/USD.
The SDF Forex Trading System works with 4 -‐-‐-‐ 5 digits brokers, ECN brokers and new NFA rules. So there is no need to adjust the settings for that.
Once the installation is done, simply follow the system’s rules and you would be ready to trade.
Installation process is very easy. It’s as easy as copy/paste. No need to make it more difficult than that. Just follow the steps below and it will be done in 3 steps
minutes.
First Step
Close Metatrader if it’s running
Copy the ex4 files to : Windows/program files/Metatrader/Experts/indicators
Copy the template into: Windows/program files/Metatrader/templates
Run Metatrader and open 1Hchart for EUR/USD
Second Step
Right click on chart >>> Templates >>> SecurePips
This system is a trend following system with signals based on trend and inner
waves of support and resistance.
The SDF Forex Trading System uses 3 indicators + Targets indicator.
Buy Signal…
1 – Blue Arrow
2 – Blue trend line
3 – Stop loss = Blue dots
4 -‐-‐-‐ Target = Target Lines
Sell Signal…
1 – Red Arrow
2 – Red trend line
3 – Stop loss = Red dots
4 – Target = Target lines
Exit rule for buy/sell signals= close @ target or when an opposite signal is
generated.
Pretty much any online forex broker you choose will have a trading platform that automatically calculates your profits and losses for you. But I think it's important to understand the basic math behind it. It's a good way to make sure your broker is honest, plus it's just good to know.
Besides, calculating profit and loss is really simple.
There are only two simple formulas to remember.
When USD is the quote currency (the second currency in a pair), the formula is:
Profit = Price Change in Pips X Units Traded
When USD is the base currency (the first currency in a pair), the formula is:
Profit = Price Change in Pips X Units Traded / Exit Price
Let's look at some real -‐-‐-‐ life examples to help you understand.
First we'll look at an example when USD is the quote currency.
To keep things simple we'll assume the broker requires 1%
margin, which means you can trade $100,000 in currency for only $1,000.
So let's say you are looking at EUR/USD which is currently trading at 1.2518/9.
You predict the euro will rise in value against the euro so you execute a trade to buy euros, which means you also simultaneously sell USD.
You buy $100,000 units at 1.2519. Remember since you are buying you have to
take the ask price, which is the second number in the quote.
Your calculations are correct and the price rises to 1.2532/3. You initiate a trade to sell EUR and buy USD. This time you use the bid price, which is 1.2532.
Since you bought at 1.2519 and sold at 1.2532 your profit was 17 pips, or 0.0017.
Now we need to convert that into real money.
So take your formula above:
Profit = Price Change in Pips X Units Traded
or,
Profit = 0.0017 X 100,000 = $170.00
An easy rule to remember is that when trading a standard sized lot (100,000) of a currency pair in which USD is the quote currency, a pip is always equal to $10. 17 pips equals $170.
Now, let's look at an example where USD is the base currency. We'll execute a buy of 100,000 units of USD/JPY at 117.22. The price rises and we sell at 117.35.
We just made 13 pips.
To calculate our profit we use the second formula:
Profit = Price Change in Pips X Units Traded / Exit Price
Or, Profit = .13 X 100,000 / 117.35 = $110.78.
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