The Ten Minutes Per Day No loss Trading System

The Ten Minutes Per Day No loss Trading System

12 money mach

The 10 Minutes Per Day Trading System

The ten minutes per day no loss trading system for everyday people who go to work, have commitments of just a life!

Forex trading can become obsessive and we can end up spending a crazy amount of time glued to the trading screen, often for all too small a level of return or even a loss.

For some years now we have been working on, building, refining and testing a system of trading that can make good returns quickly with low risk, a low capital requirement and that only requires a minimal amount of time in front of the screen. Not satisfied with all of these advantages, we also don’t want to have to accept loss making trades!

14 digital clockWe call this system the Ten minutes per day no loss trading system and with the launch of this issue of Forex Trader Magazine we are about ready to unveil the system.

However, this is not just an article that will describe the trading system it is the start of a major and unique experiment. We are going to put our money where our mouth is and demonstrate the system trade by trade, good or bad, over the rest of 2014. We will use this publication and a brand new blog to give a full report on the trades we open and close – live as they happen. The idea is to report trade entries and exits on the blog with a little detail of the thinking behind them and then to give a full report and update in each edition of the magazine.

Find the blog at http://forextradermagazine.co.uk

What you will need to join in with us:

MT4 Trading Account

Well, obviously a trading forex trading or spread betting platform. It can be a live or a demo account. Do not put too much equity into it and make sure it is money that you can afford to lose! We are going to use £1,000 ($1,650) as our trading “pot”. This is a good number to able to demonstrate everything and a nice easy figure to work out gains, losses and other figures from.

We will be using an MT4 spread trading platform to allow us to avoid any issues of UK tax. However, a straight forward MT4 forex trading account will work in exactly the same way.

Trading Tools

We will be using a variety of trading tools. However, the most frequently used tools are likely to be The Rule of Thirds, Jeff’s Lines and Bollinger Bands. The first two of these were detailed in issue #1 and issue #2 of Forex Trader Magazine and the very unusual way that we use Bollinger Bands is covered in this issue. This should cover around 80% of our trading and we will explain any other trading tools used as we progress. We will also take into account scheduled news announcements.

The Rule of Thirds and Jeff’s Lines trading tools are essential. You do not necessarily have to have them visible on your trading screen but it is much easier if they are. The plug-ins for these can be obtained from our online shop at http://coursesonforex.co.uk/shop They come with a short video explaining the very simple installation procedure.

This trading system was designed and tested for the GBPUSD pair only. It may work with other currency pairs, it may even work better with other pairs but we have not tested it on any others and will therefore be sticking with Cable.

Time

Our ten minute title is actually a bit of an exaggeration! Used in its most pure form this trading system will only use around four or five minutes each day between Monday and Friday so around 20 to 25 minutes per week!

However, unfortunately, it is not the case that any old few minutes per day will do. We need to have this time available at between 10.00 pm and 8.00 am (UK time irrespective of whether day light saving is in operation. My preference is to set things up and to make adjustments just after the start of this period.

Knowledge

Our trading style is very different from any other that we have ever come across in the public domain. We almost never use stop loss orders and instead employ a system of hedge trades that mean that we never have to take a loss – even though sometimes we may decide that it is better to do so for the purpose of freeing up trading capacity.

You will be able to follow what we do if we need to start using the defensive strategies that we have. However, it is highly recommended that you study them as part of what we consider to be the best online forex trading course there is. This comes in the form of our four special edition magazines available at Http:// In the event of any difficulty or to purchase the training material in an alternative format visit http://coursesonforex.co.uk/shop or email to editor@forextradermagazine.co.uk

Let’s get started

We are going to take things very slowly and only enter trades when all or almost all of our tools tell us that the time is right. We are also going to be quick to exit trade with a profit and our trade sizes are going to be very small relative to the equity in the trading account.

The first thing we are going to do is consult the Rule of Thirds. This will inform us as to whether we are looking to use buy, sell or buy and sell trades. At the time of writing, Sunday 12 January 2013, at 10.00 pm (UK) the price action id deep inside the upper area of our trading screen not far away from a price of 1.64850.

The border between this, the sell only area, and the middle buy and sell area stands at around 1.6325. Given that there is no significant economic data news due to be published on Monday 13 January. Given the position of the Rule of Thirds we will be setting a limit sell order.

Our limit sell order will be set to trigger only if the price moves beyond the opening +50 pips level and hits the 75 Pips above the opening price level of 1.64850 therefore it is set at 1.65596. We could choose to set a second limit order at 100 Pips above the opening price or 1.65841.

In the cases, +75 Pips and +100 Pips (had we set a second limit order) a take profit order is set at the opening level 1.64850 and no stop loss order is placed.

The size of the order is extremely important. We only wish to use an order equivalent to 0.06% of the equity in the account. This is to allow a very large swing against the order to not take us out of the game. In this case, with the equity worth £1,000 our maximum open order value will be £1,000 x 0.0006 = £0.60.

However, this limit is set to allow us to have up to three orders open at any time. Until we build up the equity I am going to use just one open order of £1.00 in value. If this goes badly against us I will consider using one more order or “neutralizing” the open sell order with a same size open buy order.

Normally, I would only report the progress of this order in the blog at Http://forextradermagazine.co.uk However, as we still have some time to go until the publication deadline for this magazine I will a weekly summary here.

Week 1 & 2 – Building a Money Machine!

We are building a money machine using the ten minutes per day trading system and other tools and techniques described in the February / March edition of Forex Trader Magazine and reporting every trade here. Once the magazine is published this blog will report trades as they happen unless they are limit orders. In that case they will be reported when then order is placed. So, below is the outcome from weeks one and two of the experiment, weeks commencing 12/1/2014 and 19/1/2014. Note that the dates refer to the trading day start and this is usually at 10.00 pm (UK) on the date shown.

15 paper cut A

16 paper cut B

Weeks 1 and 2 of Ten Minutes Per Day Trading System Experiment

The experiment started with an equity pot of £1,000. In the first week we set limit orders to open sell trades only, because the rule of thirds is in the sell only area. We also used a limit order set at 50 Pips above the opening price. We would frequently use a limit order position 75 Pips away from the opening price. However, it is our current view that the GBPUSD is trading close to the top of its range and therefore the 50 Pips away setting is more appropriate.

The first week saw three limit sell orders set with only two triggered both of which were closed in profit of 50 Pips (less 2 Pips spread = 48 Pips profit per trade). This is because on one of the days a previously triggered limit order was still in progress and we did not want to double our open trades at this stage. In addition, towards the end of the week we were concerned about big economic news coming out in the following week which would make trading particularly unpredictable.

After week one we had equity of £1098 and are therefore 9.6% up on closed trades with no open trades left in place.

For week two, commencing on Sunday 19th January 2014 we stayed out of the market. With UK Inflation and Unemployment Statistics due to be published we felt this was appropriate. As it happened, the market rose above 1.6600 so any sell trade would have looked a bit sick! We now intend to stay out of the market until at least after the UK preliminary GDP q/q announcement on 28 January 2014.

About The Author

Jeff Fitzpatrick

Probably the UK's most successful home Forex trader