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Discipline is the key to success. Remember that all forex trading strategies involve risk: there is no trading technique that is immune to losses. Our strategies work because they are not revolutionary but have stood the test of time. There is no ‘Holy Grail’ system that is going to bring you millions, and we are not going to promise that. Our strategies work because our traders believe in them, do their best with them, reliably and with discipline first and last. At Elite Financials, our promise to you is a good experience and peace of mind.
Currencies Traded
We trade two pairs GBPUSD and USDJPY for up to three sessions per day. We also normally take one to five trades daily, or an average of 20 to 60 trades per month. It is also normal to see days with no trading at all. This is because our team of traders filter the trade setups to select those with a high probability of success, without compromise.
Equity Allocation
Our normal practice is to place one trade at a time and follow it to its conclusion before placing another. Depending upon the quality of trade setup, a conservative, balanced or aggressive approach is followed. In a conservative approach, 3.5% of the total equity is used. Similarly for a balanced approach it is 5 to 7% and for aggressive trading our traders use 10% of the total equity. However, Clients may set the personal maximum risk level with which they are comfortable.
Depending upon the continuing quality of a trade setup, it is sometimes decided to do averaging, a technique which a Client may opt out of if preferred. In averaging, after a trade is opened and if the exchange rate moves against it by a specific number of pips, another position is opened in the same direction. The objective is that an equal Take Profit is settled for both positions, thus taking a profit as an average of both positions.
It is also our policy to start an account with a relatively aggressive approach, moving gradually towards a conservative approach as the account equity grows. This helps our traders generate reasonable profits in a forex managed account from the outset [where although the risks are higher, the amount at stake is not as significant as it should become later on]. But overall it is a strict policy to use no more than 10% of the total equity at any time.
Entry / Exit Points
Our aim is always to enter early and close the trade at the very reasonable chance given, to book profit.
Stop Loss Policy
Our traders always use stop-losses as part of the discipline of trading. Our stops are determined by the current quality and state of the trade setup, current market behaviour and fundamentals, rather than being tied to a specific range of pips. In general our traders use the daily high/low as their stop loss areas, but this is not a hard and fast rule. Sometimes very tight stop losses are adopted. As always the flexibility that this allows demands strict discipline, which our traders follow implicitly.
Technical Analysis and Trading Tools
Different technical tools have been tried and tested over the past many years. The set we currently use are those we find to be the most consistent over the years. They consist of our own defined combination of MACD, RSI, Stochastic and closed price trend lines.
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