5NITRO+ Instructions – Trading 1

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Trading Page 3 ( last  )
Summary ( final )

[ Trading Pages are summarized HERE at the very end of Trading Page 3 ]
[ Trading Pages are intended to be scanned quickly - then bookmarked for later reference ]
[ Trading Pages do not include any special trading secrets or 1-2-3 steps to follow ]
[ Product Packages do not include any top secret 1-2-3 Trading Steps PDF or eBook ]

Reference Guide – Not Starting Guide

There are no exact trading instructions to profit from 5N+. There are no exact trading instructions to profit from the Forex market or any financial market.

Trading any financial market successfully long term is arguably one of the most difficult prospects in the world.

An investment in any Metatrader Indicator or EA will absolutely never replace the years of daily screen time required to develop the needed long term habits + knowledge.

Use the information this tool provides as you see fit based on your own intuition, insight, and methodologies developed from your own years of hard work and trading education.

These guidelines here and ideas are not required to learn before you can begin using your new 5N+ tool. This is not the starting point. The starting point began back when you first started to develop your own trading ideas and theories. Back when you placed your very first trade.

Shortcuts?   Not In This Enterprise of Trading

EURUSD does not care that you have succeeded at every other venture your entire life. It does not care that you have a ‘winning personality’ or that you are all family because EURJPY is actually your Brother-In-Law:) It will trip your stop losses and force a margin call when you least expect it – just like it would every other Retail trader in the world.

There are no shortcut possibilities in developing long term winning methods. Sure, there may be shortcut possibilities in other professions or other aspects of our lives, not here though.

Markets are pure. Or at the least we hope that they are pure.

So then let’s just say “Markets are intended to be pure”.

There are entire government agencies trying to ensure that they remain pure. Or at the very least these agencies are trying very hard to maintain the appearance of market purity and their due diligence as an enforcer.

You Are Special

You are unique. Your trading style and methods are very special and very unique. No one knows this better than you. No one knows the quirks and idiosyncrasies of your trading methods better than you.

No one knows how to coordinate and integrate 5NITRO+ into your unique trading plan more perfectly than you do.

Will this happen immediately?   No.

Will you know immediately how to best integrate 5NITRO+ into your daily trade decisions?  No.

~120 hours across multiple pairs is amount of time new 5N+ users are becoming comfortable with response and percentage outputs across a wide range of price action scenarios

Just like with learning to use any new tool, it will require a period of time to become fluent. It will require a period of time to become comfortable with the tool and what it tends to output in different price action situations. But once you do become familiar, you will come to know the meter’s response like the back of your hand.

This is when everything begins to click. Users eventually then come to anticipate the meter’s response and output. And with this then comes a nice unity of chart, price action, and 5NITRO+ meter output. The user eventually learns to anticipate upcoming price action and upcoming meter output – based on current price action and current meter reading.

It is impossible to explain this phenomena. The tool needs to be installed. The tool needs to be experienced and learned on an individual basis. This may not be the quickest method, but it is by far the best way long term for each individual user.

Instant Relativity

While the formula inside 5N+ is fairly complex relative to other indicators, it is fairly simple to understand in theory + concept. In general, it is providing us with trend strength and momentum which provides entry, add-to, and hold relativity along with some exiting guidance. And now with matriXx overbought oversold indications added as a new optional on/off feature, it is providing even more exiting relativity.

Changing chart time frames, changing pairs, changing chart zoom, constantly changing pattern formations, and different chart overlays can all make it challenging to quickly identify what is happening. It may take a period of time before we are able to gather relativity of current price action. To gather our directional bearings.

But with 5N+, we instantly gather relativity. It is the same output regardless of all these other variables. If GBPJPY is showing momentum and price action similar to GOOGLE, they will show the same relative output. This ‘instant relativity’ aspect of the tool is one of its values that is gradually understood. It is gradually learned and evolved to then be relied on by the user over time.

It is similar to other software and hardware tools we use every day and come to rely on every day. Like, for example, switching to Android from iOS or switching to Windows 8.1/8.2/10 from Windows 7. Or how about unboxing your first BlackBerry or other Smart Phone in the mid 2000s coming from your NOKIA or Motorola RAZR? At first, all is foreign and has an overall foreign vibe to it.

But then gradually over time, they become extensions of our brains. They truly become tools.

This instant and ongoing relativity that a tool like this can provide over time should not be diminished or overlooked. If this tool accomplishes only this for each user for many years to come, it would be an achievement by itself.

This goes for all the small improvements and slight gains in decision making efficiencies and clarity this tool can bring. A trading career cannot be improved dramatically overnight or with one piece of software. It is a huge puzzle that requires years of constant work and improvement. 5N+ is just one of those pieces. And with each new piece, we can build upon. We can use it to figure out other pieces to the puzzle. Other pieces we didn’t even realize mattered or that we needed, such as correlations or the money flow behind Risk On / Risk Off, as examples.

Not Marketed as a Magic Bullet or a Complete System

Many new users really want for 5N+ to be the only tool they’ll ever need. They really want to make the GLOBAL% output the only source of information they need or use. They really want to build some sort of repeatable technical system around it. They really want to make an EA of it. They really, really want this to be ‘complete’. Sure would be easier right?

It is no different in theory than any other technical tool. And thus then, it is impossible for it to successfully be the sole or primary or complete reason for a trading decision** over an extended period of time.

*overall, on average, on whole, when measured across all trade decisions across one year – as opposed to any singular trade decision that is.

One Tool Alone Cannot Build a House

People inherently assume that this was created to be a complete system. That we are promoting this tool to be a complete system. That because there is a complete website created around a singular tool and seemingly essentially a complete enterprise, the tool must be complete or can be solely relied on to make any and all decisions regardless of any external variables.

That by default, we must be claiming it is possible for anyone to succeed who has installed it onto their charts. If this possibility for success is not readily apparent on the home splash page, details are no doubt provided within the site or in a secret PDF or e-Book included free with the download.

forex trading requires more than one tool or tacticWhat brings this idea? Well, nearly every other seller of nearly every other commercial product … promotes their product in this manner.

They sell this fantasy notion that their tool, or in combination with a few other tools or key technical levels, can be used solely as a repeatable system. Hour after hour. Day after day. Year after year.

They have created a tool that exploits some hidden glitch in the market. And of course this technical glitch is always present regardless of all else.

Let’s all acknowledge that for some reason 97% of all FX marketers are oddly unscrupulous. For some reason, it is completely acceptable and almost mandatory to have zero morality whenever selling any Forex-related product. Have never understood this high percentage of scammers when compared to other industries? Maybe it has something to do with the FX industry’s #1 trading platform MetaTrader being rooted in Russia?

The same goes for most threads about a particular tool in FX discussion forums. The indicator or technical combination is almost always presented as ‘complete’. That the system can be relied on primarily by itself with zero regard to any fundamentals, in any environment, day after day.

Again, this is fantasy. And until we finally get over these fantasy ideas, we will be forever stuck.

We will be forever stuck in the same endless cycle of new system testing always resulting in account balances that never seem to increase, for some odd reason. It’s like the markets and universe are in a conspiracy against us. After every single combination of modified indicators + templates + EAs have failed, the next and final step is usually the blame game.

Such as the all time most awesome excuse … Brokers are hunting my stops**

  • **Brokers Hunting Stop Losses of their individual clients here in 2016 is ludicrous
  • This is not 2002 where maybe it could have happened when only two or three Retail brokers actually existed and Real Time FX quotes hadn’t yet flooded the web around every corner
  • A broker hunting my stops would be an absolute arbitrage windfall
  • It would be the only scenario in trading that would guarantee massive arbitrage predictably and fairly quickly
  • Because of course as we all know, any price that has distanced itself from actual Interbank or Futures … inevitably needs to normalize at some point … eventually
  • This is Not a Complete System

    How much influence 5NITRO+ has on any given particular trade decision of mine personally varies greatly from one trade decision to the next. It can also vary greatly dependent on whether the decision is:

  • Entry
  • Adding-to Longs on Strength
  • Adding-to Shorts on Weakness
  • Adding-to on Retracement
  • Replacing on Retracement
  • Cutting Losses
  • Cutting Some Losses
  • Stopping and Reversing
  • Managing Buy Limits
  • Managing Buy Stops
  • Managing Sell Limits
  • Managing Sell Stops
  • Managing Stop Losses
  • Managing Take Profits
  • Final Exit
  • 5N+ Influence on Any Given Personal Decision
  • Sometimes, 5N+ may have a 40% influence on any particular decision
  • Sometimes, 5N+ may have a 30% influence on any particular decision
  • Sometimes, 5N+ may have a 20% influence on any particular decision
  • Sometimes, 5N+ may have a 10% influence on any particular decision
  • Sometimes, 5N+ may have a 0.3% influence on any particular decision
  • But, it never has 100% influence for me personally. And I doubt ever over 40%, though possibly subconsciously. It does not and will never have 100% influence even when combined together with any other Technical Analysis Tools. Hence, I never use it and it is not recommended ever to be a Complete (TA) System.

    For more information about these fantasy ‘Repeatable Technical System’ notions, view The NITRO+ Test Results Page

    Simple Concept

    An argument might be made that this tool’s rather simple concept needs no more than the concise explanation below:

    Increasing Color Saturation + Brightness = Increasing Trend Strength + Momentum

    Increasing Number of matriXx Dots Illuminating = Increasing Overbought or Oversold Levels

    Translation Not Needed

    5NITRO+ was designed to be a Visual Tool. Primarily in Full Mode which contains the full amount of visual graphics, the user gains quick relativity and knows exactly what is happening after a quick glance by combining the price chart, 5NITRO+ GLOBAL Percentage, and the overall color intensity.

    Percentage numbers do not need to be translated.

    Color saturation + brightness does not need to be translated.

    The average 10 year old child will come to a reasonable conclusion that more Blue or Lime along with a large Up arrow is good for price moving Up. More Red or Black along with a large Down arrow is good for price moving Down.

    2nd Opinion

    What is your (or a) logical trading response when momentum begins to increase leading to price beginning to increase within your current strategy (or historically accepted momentum-based strategies) – such as when 5NITRO+ pushes through 50% making the vertical NITRO bars illuminate and triggering your alert if turned on?

    What about as price continues to increase and begins to approach major support or resistance levels within your current strategy – such as when 5NITRO+ keeps pushing through to +95% and begins to illuminate the majority of matriXx overbought or oversold blocks at these major support or resistance levels?

    Whatever your strategies call for now in these scenarios above remain the same. Now, you have a 2nd opinion to help provide a little more guidance and do so in a clear manner all day long.

    5N+ obviously is not a binary, absolute signal provider. The meter does not change only from red to green. The meter does not only output a Long 100% or a Short 100%. And likewise, markets do not move up or down in perfectly straight lines or better yet, perfect parabolas or inverted parabolas.

    In this very large ‘gray’ area, for lack of a better color in between green and red, analysis needs to be done. Decisions need to be made. Positions need to be managed. The uniqueness of your entire trading situation is what fills this grey area of decision making. And no one knows your entire and complete trading situation better than you do.

    So, the ideas and thoughts here are to serve as a Reference Guide. A guide to initially scan very quickly and then bookmark for later. Then, when certain situations are encountered throughout the next few years, use this as a reference.

    The User Guide needs to be created by you. There is no person in the world more qualified to draft the User Manual of your trading day – better than you.

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    Marginal Trading Advice

    These trading pages are providing some general trading ideas and concepts. But mostly, information and theories provided here are only trading thoughts and observations meant to be considered, proven, or disproved while developing your own styles. Thinking for one’s self along with trial and error are required elements of your organically engineered personal trading system.

    While I may outline my own personal methodologies throughout these pages that include higher time frame trading, creating variance and diversification, or creating take profit grids for example – this carries no significance towards your personal use of 5NITRO+.

    These methods are what I am personally comfortable with. I believe these methods are superior because they have proven superior for me. After all these years of trial and error, this is what has risen up and evolved organically for me.

    While I may feel that other Trader’s methods are inferior or faulty, other Traders may feel the same of methods here.

    This is the ultimate point that has tried to be outlined here in these pages, that there is no singular correct method. There is no singular correct method of using 5NITRO+. There is no singular correct way of trading Forex.

    As long as we all arrive at the same goal of clearing our take profits, this is all that matters. Right?

    I Will Create The Perfect System

    Maybe obsessing over ‘Creating The Perfect System’ is a bad obsession? Maybe it is the wrong obsession?

    Because as soon we are convinced the perfect system has been created and we stop adapting it or just acknowledging that it needs constant adapting, the Market punishes our account balance.

    It may be difficult for all of us not to initially strive for this perfect infinitely-elusive and repeatable system when first beginning to trade. It might just exist somewhere deep within all of our DNA to strive for perfection in everything that we do in life.

    However, this misguided drive actually becomes an obstacle to growth when absolute perfection is not possible and does not exist. I know, everyone else in the FX World keeps telling us that perfect systems are possible. We constantly are being told that everyone else is apparently minting money with their laptops and tablets using only Stochastics(5,3,3)

    Maybe instead trading perfection should be measured in relative terms rather than absolute. If we just acknowledge that absolute perfection is not possible since of course markets are not a video game, all of the sudden then … perfection is now everywhere. 51% win loss ratios with average net gains dwarfing average net losses seems really to be … relative perfection.

    Learning From You

    And so for me personally, it has been important and beneficial to keep learning of other’s methods and their perspective of the markets.

    Since 2010, it has been interesting to learn how differently different customers approach trading. It has been interesting to learn how differently they all utilize N+ 2N+ 3N+ 4N+ 5N+ and with the various other tools or indicators or trade managers in their screenshots.

    At least once per week I am exposed to an entirely different point of view or philosophy, or even leading indications I had previously overlooked.

    What I have learned over the years from customers only serves to reinforce what has been included, or rather not been included, in these ‘Trading Instructions’ pages. That our trading strategies have to be our own. And when they are, this introduces confidence.

    And then once we are no longer obsessing over seeking out and creating the perfect repeatable system, clarity is introduced. We learn to just look at the markets and get a feel for the markets instead of obsessing over Indicator settings and outputs. We can now focus on just making logical decisions. Reducing effective per pair or effective per event leverage is a huge benefactor in this clarity and ability to make mostly high probability and logical decisions. Reducing effective leverage while still retaining overall net gains is discussed heavily throughout this site.

    Reliable strategies and methods take years of screen time to develop. As unwelcoming as this statement is to newer traders looking for 5N+ or some Forex Robot to provide them with a shortcut, it is the only way. It is reality. This realism is in sharp contrast to the fantasy reality being sold by the rest of the Forex software world.

    Position Trading

    … this is all that I know. Higher time frame Position Trading capturing extended gains is what I know, or at the least is what I am most comfortable with.

    Long USDCHF Position Trading Examples     (click+)
    Long Position Trading - #1 USDCHF 0.91702 Long Position Trading - #2 USDCHF 0.94032 Long Position Trading - #3 USDCHF 0.97791 Long Position Trading - #4 USDCHF 0.98113
    Short EURUSD Position Trading Examples     (click+)
    Short Position Trading - #1 EURUSD 1.31769 Short Position Trading - #2 EURUSD 1.28400 Short Position Trading - #3 EURUSD 1.23042 Short Position Trading - #4 EURUSD 1.22505

    If your expertise is more related to very short term trading such as Scalping or Binary Options, great! This will allow you to create your own step by step instructions and ignore the higher time frame notes and thoughts here on these pages.

    This applies to all strategies and all users. Develop your own style. Develop your own instructions.

    So when such sections within the following pages are headlined with “Increase Time Frames” or “Think Like GEICO and Walmart”, these viewpoints are not necessarily intended to apply to all Users or Readers. These are only my personal guidelines. These pages are an outline of the thought process and lessons learned over the years to arrive at my current methodologies and utilization of 5NITRO+. To arrive at my perspective of the markets and trading in general.

    Similar to how the video illustration included on this site is just one example as opposed to the ‘one and only example’, my lessons learned in trading and resulting use of 5NITRO+ outlined throughout these pages are only provided as an example to spur thought. And well, because at least some general experiences need to be provided. So I have written and included what I know.

    Free Will

    Although there are some examples throughout the site that show price continuing in the same direction enough to make 5N+ display 100% after it first displays 50%, this does not occur 100% of the time, on every pair loaded, on every time frame loaded, every day, every session, or through multiple sessions without fail.

    The thousands of large market participants across the globe including institutions, hedge funds, pension funds, global banks, global corporations, central banks and entire countries are completely unaware of this obscure, Metatrader Indicator called 5NITRO+. Presumably then, none of these participants feel “obligated” to continue their current trading behavior until 5N+ reaches 100% on a 5 minute chart.

    The markets move because people across this world with free will press buttons for an endless variety of reasons. They press Buy/Sell buttons sometimes randomly with no awareness or any care whether RVI Period (10) is above or below 0.00 on the 30 minute time frame, for example.

    Sure, there are also thousands of computer algorithms around this world pressing buttons. Though much of the reasoning within these black box decisions to buy or sell could often also be perceived as random or directionless and being zero influenced by RVI. There are thousands of parameters which may include hundreds of macro parameters not necessarily dependent on the actual underlying instrument it is buying or selling. Such as for example, the price of tea in China.

    The lead currency trader at Samsung or LG may be unexpectedly forced to sell $4,000,000,000 worth of USDKRW over 3 days simply because of end of quarter balance sheet or tax needs. What random effect will that have on USDCNY + USDJPY + USDSGD, for example? What ripple effect across all currencies will this random act then cause, with no regard whatsoever to any technicals in place?

    In Summary:
    Most of these large Traders could care less about Pivot Points or Fibonacci or MACD. And thus, most of the transactional volume on whole could care less. Technicals are merely an attempt to make sense of the chaos these large institutions cause every day with their fundamental actions.

    Which Means:
    If ‘Fundamental Actions’ are part of the equation that causes price to move up or down or sideways, we cannot mathematically expect that one could follow specific instructions based on specific ‘Technical Levels’ or specific 5NITRO+ percentages to reproduce net gains at will.

    Realistic Expectations

    5NITRO+ is Not intended to be the sole source of decision making information.

    5NITRO+ is Not intended to eliminate the decision making process, but rather to assist.

    5NITRO+ is Not intended to have strategies or systems reverse-engineered around it.

    5NITRO+ is intended to be added-to strategies that have been previously engineered organically from years of hard work and screen time.

    5NITRO+ is intended to help provide additional Information, Confirmation, Confidence, and Clarity. A 2nd opinion.

    5NITRO+ is intended to be part of an overall methodology that roots all decisions in Logic + Probabilities.

    5NITRO+’s Job is to calculate and provide dynamically aggregated information    … learn more

    Black Magic

    If you would rather use a type of product that can predict the future and give exact Buy and Sell entry points and always produces tons of pips regardless of any external variables, then click and buy the no-loss, always-profit magic indicator below:*

    Scam Forex Software

    *Please Note -  You will lose your entire account balance within 2-5 days of using ‘Magic Arrows’ like this that give what appears on screen shots to be perfect, exact Buy Sell signals. Arrows in screenshots like shown for all these scam indicators are programmed to plot at extreme highs or lows from the actual price point at which they occurred. The casual surfer does not look closely at the charts and only connects the dots between the extreme high + extreme low arrows. Arrows are inherently wide which makes it difficult to analyze at which bar close they actually line up with.

    Also, the arrows or any exact Buy-Sell, Green-Red indicators are only actionable after the bar close. A 1H candlestick or bar can have a 50pip to 70pip range. A Daily candlestick can be +300pips from high to low. This is why only using a tool such as our ClearChart may seem like a no-brainer by looking at the screen shot and thinking traders can become rich simply by placing trades whenever the color changes.

    This is basically how all the Magic Arrow Indicators are coded, by taking a simple indicator such as MACD – and changing the output to plot an arrow at the 0.00 cross instead of drawing the standard histogram. Many newer traders fall prey to these screen shots until they fully understand Heiken Ashi candle colors or Magic Arrows can change many times prior to candle or bar close. Changing direction bias or color within the current bar does not constitute re-painting. These ‘screen shot illusions’ have sold much Forex software. This type of software is sold to unsuspecting newer traders who are endlessly in search of exact Buy-Sell indicators so they do not have to mess with the hassle of thinking or learning.

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    Full Spectrum Analysis Required

    5NITRO+ provides the user with superiority in ~50% of the trade decision equation – the trend analysis portion. The remaining ~50% is made up of dynamically changing fundamentals and is up to the user.

    When used together with Metatrader and 5NITRO+, a thorough and efficient human brain has the ability (at times) to provide similar output to that of a Goldman Sachs’ algorithm.

    Here in 2016, our $4000 computer using a Metatrader EA will never have this ability alone without the use of a human brain (even at times).

    All of the ‘if, then’ variables needed for correct algorithmic trading are not provided by our Metatrader brokers. If they were, our computers would instantly freeze upon the EA being loaded and our plastic router would melt.

    Therefore to compete within the pairs and time frames we trade, we are left only with the weapon of identifying overall what Goldman Sachs’ algorithm is indicating to them, using a hybrid approach.

    Like static, computer-based indicators that are added to your chart, dynamic human-based indicators are not correct 100% of the time. Remember, we deal in Logic and Probabilities. We only need to be correct the majority of the time.

    There are two types of indications needed for a trade decision if we desire to compete long term:

    1. Static
    2. Dynamic

    Or rather:

    1. Technical
    2. Fundamental

    5N+ provides the user trend analysis advantages from a technical basis. However, like the United States possessing military tank superiority going into Iraq and Afghanistan in the early 2000s, there is more that is necessary to win the war.

    Likewise, it is impossible for commercially available Forex Robots using only technical inputs to win the war individually.

    Fully automatic trading strategies, that are not developed and used by market makers such as Goldman Sachs or large hedge funds with $50,000,000 IT budgets, fail fantastically because they are neglecting these dynamically changing parameter inputs.

    A more logical choice is the one you have made – trading manually or semi-automatic. Using 5NITRO+, covering your necessary static and technical bases, allows you the added ability to now insert these missing dynamic parameters into the equation when necessary. For example, such as before and after economic releases. This would be considered a hybrid methodology or approach.

    It is advised to seek professional guidance for your fundamental parameter needs.

    You Are Unique

    What’s Your Favorite Time Frame?

    In addition to these dynamically and fundamentally changing parameters, nearly all traders have their own unique perception of time and expectations within it. There are hundreds of factors separating one M5 trader to the next. Two traders performing open and close trade operations on an M5 chart does not make them identical.

    More information about how 5N+ tries to use time frame selected in determining ‘most likely’ style of tradeing can be found on The Formula Page. New options have been added to this 5th version now further helping each user fine-tune and tweek the meter to better match unique needs using the following new features:

  • Time Frame
  • Time Outlook
  • Strength Lookback
  • OBOS
  • While 5NITRO+ itself was programmed to deal with these different time frame factors by optimizing itself for each, it is actually grueling to try and explain how to trade dependent on the time frame used and each different type of trader.

    As W.D. Gann initially recognized and subsequently later exploited, similar activity and patterns occur in all time frames. It does not matter which time frame chart you are looking at. For example, the chart pattern ‘Head and Shoulders’ can form on any time frame. Because of this, 5NITRO+ performance is equivalent on all chart periodicities loaded because in fact all is equal within the technical analysis world.

    However, all is not equal in the physical world. Markets and economies are not populated by linear computers and Heiken Ashis. Markets and economies are driven by dynamic, non-linear human beings with free will.

    Economies and thus central bank rates are also affected by unpredictable events such as for example earthquakes, tsunamis, and suicide Jihad bombs.

    The remaining ~50% of your internal decision making algorithm needs to include fundamentals. By default, fundamentals dynamically change in real time.

    The dictionary definition of ‘dynamic’ suggests the impossibility of providing exact instructions for variables that are endlessly changing in real time.

    This is How You Should Trade

    Telling someone how to use 5NITRO+ is the equivalent of telling them how to trade Forex. How do you do that?

    Is there some correct way to trade Forex?

    No.

    The only correct way to trade is to do whatever it takes to make your take profit lines… disappear.

    As explained at the top of The 5NITRO+ Formula Page each different time realm requires a completely different type of trading style and strategy. Each different time frame has a different set of external variables that need to be factored in.

    In addition, the number of different pairs a user trades along with other factors and user information we are not privy to – makes it completely impossible to try and provide concrete trading rules that are supposed to be followed and apply to all users. The mere attempt to do so implies that it is actually possible to rely solely on software to trade successfully regardless of experience, sessions traded, symbols traded, effect of economic reports or news events, etc….etc….etc….etc….etc.

    It is not possible to rely solely on software or technical levels to generate 100% of our wealth unless we are a large institution or hedge fund with virtually unlimited resources and virtually unlimited access to all necessary algorithm data (had I mentioned this yet?)

    Endless Variability Per User

    A EURUSD-only trader using an M5 chart time realm strategy may need to plan for and factor in an upcoming French PPI report by ignoring Long indications produced by 5NITRO+ because it is too close in time to the upcoming report.

    Another user however, who in addition to trading EURUSD is also trading twenty (20) other pairs covering a full spectrum of countries and risk-on / risk-off action. This user could care less about such a negligible external factor such as French PPI and therefore should and does take into consideration a strong long indication shown by 5NITRO+.

    Because of these infinite external variables, we would require hundreds of web pages to provide exact 5NITRO+ trading rules to follow for each different type of situation. These external variables are another reason that current, commercially available Forex robots fail miserably.

    There are a few exceptions, of course.

    Constantly evolving quantitative systems created and used by Goldman and the like who have $50 000 000 IT budgets are the exception.

    Goldman Sachs is not using a $10 copy of FAP Turbo Evolution that they were the highest bidder for on eBay.

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    Trading Higher Time Frames May Have Positive+ Effect

    Forex Trading - Increase Time Frames IllustrationAll time frames were traded at some point while Beta testing, however the mean time frame for the account statistics was somewhere between H1 and H4 based on the total volume of transactions.

    If measured using total volume of net gains, the mean time frame for the account statistics was somewhere between H4 and D1. Leaning closer to D1.

    Just going by an aggregation of what I have absorbed over the years across the web, the most popular time frames used by Retail Forex traders seems to be mostly M1 and M5 with some M15. Almost entirely and solely intraday, encompassing the London and New York sessions together on average. It seems there are very few Retail Forex traders, including our customers, who ever hold positions overnight. The percentage who do is slim.

    With the above new Retail trader statistics being noted, we are not going to cater to the larger percentage group of potential customers by claiming 5NITRO+ is perfect or better on smaller time frames or for scalping simply to increase sales.

    Newly available broker stats in recent years since 2010 show that Retail traders with longer hold times and higher average take profit amounts are more successful – Long Term.

    While pushing 5NITRO+ for use by intraday traders or scalpers or (short term) Binary Option traders may increase sales in the short term, it would be doing a disservice to these new customers and hurt us and them in the – Long Term.

    Professional bank traders, corporations, hedge funds, and central banks use H1 H4 D1 and WK charts for guidance. Do what they do. Reverse engineer what they are doing to get your risk threshold in sync with them.

    However, it is understood that many have been sold an idea since day one of researching Forex Trading on Google, Yandex, or Baidu. An idea in complete contrast to the ‘extended gains achieved from an extended outlook’ being sold throughout this site. These short-time-frame pushers are mostly FX and Binary Options brokerages looking for increased transactions and scam software vendors touting ‘Magic Arrows’.

    The proposed theory is that we all have an advantage over the institutions and hedge funds because we are quick and nimble while the institutions and funds are slow and cumbersome by default. That we as Retail scalpers using FXCM can be in and out quickly before the hedge funds even know what hit ‘em.

    A delusional idea that we are precise Go-Fast Boats with our shiny new MacBook Air and they are unwieldy Container Ships using Windows 95.

    Think instead it is possible to triumph via many small gains using the M1 or M5 over and over and over and over ….?

    Unfortunately for us Retailers, this is the High Frequency Trader’s playing field. We don’t stand a chance. And these HFT folks are not paying 1.2 pip spreads in the EURUSD.

    Properties of High Frequency Arbitrage Trading:
  • 100s of trades within fifteen (15) milliseconds
  • 1000s of trades from one HFTrader within the one (1) second following NFP
  • Establishing data center within 1000ft legal limit of Exchange servers in New Jersey
  • Yes, using HFT may be a false comparison in making the point because it is extreme. But it is made.

    If there are arbitrage-type opportunities that can be exploited on a short or very short time period over and over, someone with more resources than us is doing so and always has been doing so.

    And again, they are not paying 0.8 pip spreads in USDJPY

    As if their endless speed advantages on all fronts providing them endless advantages during specific events such as NFP or French PPI or Consumer Confidence were not enough. Is it actually possible that our competitors have been receiving this high impact data before you and I all these years?

    Are You Purchasing Early Economic Data?
  • Search:  HFT subscription early data release
  • Deal Book:  Regulators Examining Sales of Early Financial Data
  • CNBC:  Unraveling Monday’s Early Data Release to Traders
  • CNBC:  Thomson Reuters Gives Elite Traders Early Advantage
  • Wall Street Journal:  Fast Traders Are Getting Data From SEC Seconds Early  (locked)
  • Reuters:  Fast Traders Are Getting Data From SEC Seconds Early  (unlocked)
  • Zero Hedge:  Reuters Admits To “Inadvertently” Leaking ISM Data Early To HFT Clients
  • Zero Hedge:  15 Milliseconds Of HFT Fame: Watch Today’s Early Leak Of The ISM Print
  • Rolling Stone:  16 Major Firms May Have Received Early Data From Thomson Reuters
  • PBS:  Thomson Reuters releases Consumer Confidence data early to about a dozen premium subscribers
  • May 06, 2015  -  Recent FX HFT Enlightenment @ ZeroHedge.com
    August 13, 2015  -  Why HFTs Never Lose Money @ ZeroHedge.com
    So Then, What is Most Logical?

    Very short time frames or medium-higher-highest time frames? Out of these two choices, which end of the spectrum do we have more of a chance succeeding in over an extended period of time?

    What Disadvantages Do We Have as Retail Traders?
    • 1. Ping     [ comparably ]
    • 2. Software     [ comparably ]
    • 3. Hardware     [ comparably ]
    • 4. Capital     [ lack of, comparably ]
    • 5. Effective Leverage     [ more reliant on, comparably ]
    • 6. Time/Manpower/Focus/Attention     [ lack of, comparably ]
    • 7. Spread/Commission     [ does exist or higher, comparably ]
    • 8. Anomalous Price Action     [ susceptibility to ]

    Which of the two trading styles magnify our disadvantages, short term trading or long term trading?

    In fact, when analyzing that question above and trying to arrive at an answer, an interesting thing happens. Each time we increase time frame, then the more we keep increasing our average take profit per trade to try and achieve the same ultimate net revenue end result – the more and more we keep diminishing each of the 1-8 disadvantages listed above.

    Pretty Neat-o, huh?

    Competing against highly capitalized competitors is hard enough because we have no choice but to use more effective leverage than they are. Trading on short time frames puts us at even more of a disadvantage because we are forced to use even higher effective leverage due to our smaller Take Profit goals. Therefore, our loss thresholds are much smaller than theirs. The only chance we have is to equalize our risk and loss threshold with theirs as much as possible, so that we are trading in sync with them.

    *’Medium Term’ trading or a nice, hybrid combination of many time frames was excluded from the above so that the query could be better visualized. Analysts often find that comparing the complete opposite ends of a spectrum to each other is a quick way to get an idea of what comprises the full spectrum.

    Better Position Management

    With higher time frames and longer hold times, we now have the time to actively manage take profits in a relaxed, analytical state of mind.

    Instead of the majority of our time being focused on entering and completely exiting positions all throughout the day, we can instead redirect that time and energy into adjusting take profits. If we feel a trend is losing some momentum or fear it is not light retracement, we can simply move some take profits closer instead of completely exiting a position prematurely out of fear or because our trading day is approaching the end.

    Actively managing positions by moving some take profits further away during moves can also lower spread costs. The action of moving a take profit further away can be equivalent to having more open lots, or adding more lots. If price action is beginning to show signs of real strength [or weakness] with good tick volume, you can move some of your take profits further away instead of letting them get taken out early.

    If you move a take profit further away ultimately by 200% during fast moves from say 20 pips to 40 pips … you have essentially doubled your position at a great entry point without the spread cost, risk of entry slippage, or to the detriment of your existing great average entry position.

    MT4 Indicator VideoNow, this does not mean we do this on every occasion with all take profits. This technique can help diversify your other exit strategies, such as just having a static wall of take profits that was preset.

    We all know the feel of a market when it is in a fast move in our favor. This is the time to use that strategy. Instead of falling over yourself to add to your position … just move some take profits further. This is shown in the YouTube Video further down the page or in Pop-up image to the right.

    Only 20 pips per day,   I’m not greedy      Downfall of Many Retail FX Traders

    Is this your mantra?

    Many new Retail traders ultimately decide upon short term intraday strategies as their one and only method for a variety of reasons.

    It is thought some has to do with current volatilities and daily ranges during the preceding months leading up to the initial research phase of an all new FX account being established for the very first time. Namely, of EURUSD and USDJPY.

    Though ’20 pips per day’ is probably the result of reverse-engineering idealistic yearly gains with the Windows Calculator. 400:1 or even 500:1 leverage is plugged-in along with aggressive compounding wherein profits are immediately reinvested the next day or even the next session within the same day.

    24 Hour Forex Trap      Downfall of Many Retail FX Traders

    Maybe a reason though that so many Retail traders fall into the short term trading trap is due to the 24H Forex structure.

    Most other markets sleep when we sleep, excluding of course the overnight electronic Futures which seldom contain any volume. The main participants in most other markets are primarily regional and all wake up at the same time. Forex is global. Forex does not care if we need to sleep or see our kids play soccer/futbol.

    While volume is reduced in the Australian and Asian sessions, there is just enough liquidity to where these sessions cannot be dismissed similar to how ‘After Hours’ is dismissed in the Global Equities Market. Algorithmic programs can still kick in from European and American firms during certain economic release events during Australia and Asia.

    While yes there are also spikes in price and volume during After Hours sessions in equity primarily in response to company earnings, this usually occurs within the hour before or after the main sessions while traders are still in the office building.

    There is just enough volume and possibility for volatility spikes to cause problems. Therefore, highly-leveraged short term Forex traders have a fear of holding positions overnight. This fear is understandable and correct.

    Magical Trick:
  • Reduce Lot Sizes
  • Reduce Effective Per Pair Leverage (percentage capital per pair)
  • Increase Pool of Instruments Traded
  • Increase Number of Units Overall
  • Increase Time Frames
  • Increase Hold Times
  • Increase Take Profit Net Amounts
  • … all while initially setting a goal for the same projected net gain per month or per quarter as compared to alternative short term trading methods.

    We all have control to apply these statistically-proven beneficial techniques and we can begin tomorrow. It does not require any Secret Forex Software developed by a Rogue Russian Programmer in their mother’s basement.

    Entertaining the above bullet points will help to eliminate the fear that our account can be adversely affected beyond our thresholds while we are asleep, over the weekend, spending time with family, producing auxiliary income, or maybe just not feeling 100% that day.

    Once we eliminate this constant fear of positions quickly moving against us, a world of confidence and possibilities awaken.

      The Lure of Scalping

      This ‘small gains over and over and over….’ thought process is understandable when contemplating a career of trading. It is understandable this desire to construct a repeatable system that can capture 10 pip gains at-will a few times each session multiplied by two sessions per day, day after day …

    1. 21.35 days per month
    2. 512.41 equivalent sessions per year
    3. 5/8, 1/2, 3/8, 1/4, 1/8, and 1/16 scalping gains is what lured me into Day Trading AOL, CSCO, DELL, GTW, INTC, INTCW, MSFT, IBM, JNPR, U.S. Robotics and Iomega stocks in the first place back in the school year of 1996-1997.

      Windows Calculator

      This burning desire we all have for that quick and repeatable system of short term gains is natural, and possibly a needed trait for any aspiring trader.

      That once this repeatable system has been mastered and is perfectly bullet proof, effective leverage can be increased indefinitely. New gains can be immediately reinvested into the next new session.

      forex trading profit adding machineOk so after all necessary forms are faxed to FXCM UK or FxPro and the credit card deposit has been confirmed, the Windows Calculator is opened and the math is reverse engineered. A total profit for the year is established such as $100 000.00 on the initial $2 000.00 deposit.

      Then, the math is worked backwards from there figuring out how to arrive at this reasonable net profit using the seemingly popular, normal, and widely broker-marketed … 400:1 leverage.

      The Windows Calculator then ultimately shares with us the amazing news that a “conservative 20 Pips Per Day” using the “conservative 400:1 leverage” will inevitably suction the GDP equivalent of Norway or Sweden into our FxPro account – in just over 2.6 years!

      Secret Roulette System – $97

      Scalping/Binary Options just seem to make more sense mathematically. It seems like less risk. It seems easier to predict where price will be in five minutes rather than five days or five weeks. It seems more conservative and less greedy. It seems like we are maximizing our genius brains rather than choosing to be lazy.

      Hopefully sooner than later however, traders often come to a realization that ‘Scalping/Binary Options just don’t seem to work very good for some unknown odd reason’

      What is that some unknown odd reason?

      It is the same reason why delusional careers of betting on Red/Black or Odd/Even at the Roulette table …. also end quickly.

      If not quickly, then definitely inevitably.

      [read more about Casinos on the next page]

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