Part III The Ultimate Forex Trading System
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20. High Performance Trading High performance trading is in fact a trading style that you take advantage of a combination of various highly probable strategies (that were discussed in previous sections) in your trading. For example, instead of using only one good bullish pattern such as a sandwich or triangle to enter a trade, at the same time you check traders sentiment, possible price rejection(s), hourly correlations, considerable changes in volume and so on. More entry signals you take into account in your trading, you will eventually come to a more accurate trading decision. In theory, the average winning probability of a perfect single signal is 0.7. If you enter a trade according to a perfect head and shoulders pattern in good time and good place, the chance of winning will be 70%. On the other side there is a 30% chance of losing this trade. According to my experience, these average winning-losing chances are true for all perfect patterns, price rejections, volume-price signals, correlation opportunities and other high probability signals. Now, think about combining a few of these trading signals at the same time in your trading. For sure, your chance of winning will become higher and you can take your trading decision with higher confidence. If you consider two signals during your trade the probability of losing will be (0.3/0.7x0.3/0.7=0.18) or your theoretical winning rate will be 82%. If you take into account three signals to enter in a trade the losing probability will be (0.3/0.7x0.3/0.7x0.3/0.7=0.08) or your winning rate will be 92%. However, these are theoretical figures and in the end 70
your experience, skills and your psychological control will determine how much your success rate will be. But, without doubt you can see that a combination of trading signals will greatly enhance the accuracy of your trading and the winning ratio of your trades. Also, as I will discuss in the chapter about psychology of trading, being more certain about your trading decision, will help you to lessen your stress and be psychologically more ready to manage your trade to a winning end. In the following examples I have tried to illustrate the advantages of high performance trading using simultaneous combination of a few trading signals. On the pictures, figure 1 refers to a pattern signal, figure 2 refers to a correlation signal and figure 3 refers to a volume spike signal. Coincidence of all these signals tells us that we can enter a very highly probable trade.
Figure 20.1 High performance trading opportunity
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Figure 20.2 High performance trading opportunity
Figure 20.3 High performance trading opportunity
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What you read is a free sample of “The Ultimate Forex Trading System-Unbeatable Strategy to Place 92% Winning Trades.� From this book you will learn top 8 Forex trading strategies (92% winning rate), the best money and risk management method, high performance trading and the best advice to control your psychology during trades. All required tips to become a successful trader are included in this book. You Can Download This Book Here: