Case study for Euro Yen (EURJPY)

Earlier this week we had written an article: Breakthrough Discovery in Forex Trading. To our surprise there are 420 readers on that day, wow! So we guess my readers are interested to know more about our proprietary trading strategy (BL TS System).

In our previous article we had used USDJPY as an example. This round we will use another currency pair, EURJPY. EURJPY is one of our favourite currency. Why? Reason is simple, because EURJPY has made a lot of money for us.

Here are some of our previous trades from EURJPY:
68 pips profit, 149 pips profit, 133 pips profit, 72 pips profit, 14 pips profit, 95 pips profit, 61 pips profit, 39 pips profit, 18 pips profit, 41 pips profit, 60 pips profit, 66 pips profit, 97 pips profit, 40 pips profit, 37 pips profit, 69 pips profit, 67 pips profit, 94 pips profit etc.

One common question that is often asked by our students (subscribers) in Tactical Trading Academy:
“there are so many currency pairs in the market, how do you choose which currency pairs to trade?”

We have 2 answers for them:
a) Avoid currency pairs that have wide bid / offer spreads. Some of the exotic currency pairs have very wide spreads: 100 pips (USDZAR), 10 pips (GBPAUD), 13 pips (AUDNZD), 7 pips (AUDCHF), 30 pips (USDDKK).

30 pips for USDDKK means that the price quote is 5.3427 / 5.3457. This means that your buying price is 5.3457 and your selling price is 5.3427.

In layman term this means that you will lose 30 pips immediately whenever you enter a new position to buy or sell. 30 pips means US$30 if you are trading 1 mini lot.

Major currency pairs like AUDUSD, EURUSD, EURJPY, USDJPY, USDCHF, USDCAD are only trading at around 3 – 4 pips spreads. That is very reasonable and acceptable. These are the currency pairs that I will be interested to trade.

This is why forex brokers always recommend their customers to trade exotic currency pairs. Because the higher the spreads, the higher are their commissions.

2. Trade only currency pairs that exhibit repeated patterns.
To many people forex trading is gambling or speculation. But to us forex trading is a science discovery or a philosophy approach. Why?

a) It is a science because quantitative models have to be built and programs have to be written. All these take a lot of time. We need to improve our model again and again because market condition changes all the time.

b) It is a philosophy approach. Both forex and human have repeated past patterns and behaviour. For example if a person smokes everytime after lunch for the past 6 months, there is a high possibility that he will smoke again after lunch for the next 1 week.

From the prospective of a currency pair, if this currency shows a consistent pattern and behaviour for the last 6 month, we can assume that it will exhibit the same patterns for the next 1 week or 1 month. This is NOT a guarantee, but it is a high possibility!

Ok, going back to EURJPY.

The graph in the link will show you the equity value if you have used the various indicators to trade for the past 6 months.

The result shows that graph 1 and graph 3 perform best using their respective indicators. So what are the indicators use in graph 1 and graph 3? We can only reveal this information to our subscribers.

If you are interested to subscribe to our service, do send us an email to metal.commodity@tradingeducationprogram.org.

Upon subscription, you will receive the followings:
1. Weekly updates on the proven indicators
2. One-to-one coaching on trading
3. Live emails reminders when trading opportunities occur
4. Ebook on our BL TS system
5. Live update on market activities