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Justin Butler Justin Butler Institutional Sales Manager, ThinkForex Years of Experience 7+ Years Specialization Institutional Forex Services Retail Trading Strategy

EDUCATION DRIVES SUCCESS Strategies of a Professional FX Trader April 26th, 2012 Justin Butler – ThinkForex.com

Agenda Review of Trading Strategies Key Elements of Successful Trading Strategies Trend Identification Defined Entry & Exit Signals Strict Money Management

Examples of Some Basic Strategies Trend Following Moving Averages Cross Channel Breakout Short-Term Range Breakouts

Example Trading Strategies – Trend Following Moving Average Cross 34 / 100 Daily EMA Example Entry Exit Buy when 34 EMA crosses above 100 EMA Sell when 34 EMA crosses Below 100 EMA Close trade when 34 EMA crosses 100 EMA in opposite direction of entry Long view traders Generates a small amount of trades and few false signals Rules Style - Slow

Trading Strategies – Channel Breakout Short-Term Range Breakout– Various Forms – 15 min Chart Sell Signal Identify trading ranges Buy / Sell on breakout Close - Depends on custom target Mid to short-term traders Generates numerous trades Greater chance of false signals Rules Style – Moderate Speed Sell Signal False Sell Signal False Buy Signal Buy Signal

Elements of Successful Trading Strategies Defined Entry & Exit Signals Strict Money Management Trend Identification Complete Strategy

Trend Identification - How to Filter Global Information News & Events move the markets more than ever! ?? ? ? ? Where is money flowing to or from and why? Reserve or secondary currency? Impact Perception?

Trend Identification - Trade with the Trend Signals in the direction of the trend have a higher probability of success When price crosses below the 200 EMA the trend is down When price crosses below the 200 EMA the trend is Up 200 Daily EMA

Defined Entry & Exit Signals - Remove Emotion Keep it Simple Limit entry / exit signals to trigger on a specific indicator or combination of 2 indicators – Avoid false signals Remove the emotion of the decision process Never trade on a non-signal Conflicting Signals – 3 EMA Combination Cross signals Buy, RSI signals sell – No Trade

Strict Money Management – Control Risk Every Time! Most traders are wrong a large % of the time Successful trader limit loss You can be wrong and still be profitable Use a Risk/Reward ratio of 1: 2 or greater Successful traders are not right they are consistent.

Strategies of a Professional FX Trader - Recap Trend Identification Defined Entry & Exit Signals Strict Money Management Successful traders use a systematic process that include :

EDUCATION DRIVES SUCCESS me directly for a copy of the presentation.

EDUCATION DRIVES SUCCESS Strategies of a Professional FX Trader April 26th, 2012 Justin Butler – ThinkForex.com