Aggressive Day Trading Strategy for Forex.pdf

www.rockwelltrading.com

Aggressive

Day Trading Strategy

for Forex

By Markus Heitkoetter

Please note:

THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL.

YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH

TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL

CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN

OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS

WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE

LOSSES AS WELL AS GAINS. PAST RESULTS ARE NOT INDICATIVE OF

FUTURE RESULTS. HYPOTHETICAL PERFORMANCE RESULTS HAVE

MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED

BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL

OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE

SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES

BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL

RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING

PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL

PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED

WITH THE BENEFIT OF HINDSIGHT.

Page 1

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Introduction

In the following examples we will use the $EUR-USD to illustrate our AGGRESSIVE

day trading strategy. All trading strategies are based on our ingenious template

(www.rockwelltrading.com):

The basic rules are:

• Light Green Bar : Potential Uptrend

• Dark Green Bar : Uptrend

• Light Red Bar : Possible Downtrend

• Red Bar : Downtrend

• Blue Bar : Possible change of direction from Uptrend to Downtrend or Downtrend

to Uptrend.

Page 2

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prohibited without the prior written consent of Rockwell Trading, Inc.

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Summary of the rules:

Preparation:

• Apply Template No. 2 of the ingenious template ( www.rockwelltrading.com)

to a 15 min chart of the currency market you want to trade

Entries

• Enter long at the close of a dark green bar if all three confirmation lines are

pointing up.

• Enter short at the close of a dark red bar if all three confirmation lines are

pointing down.

Exits

• Initial stop loss is placed at the value of the green confirmation line.

• At the close of EACH 15 minute bar, the stop loss is adjusted to reflect the value

of the green line.

• No profit objective with the Aggressive Strategy as the stop loss will eventually

get you out of the trade for a profit once the green line crosses the price bar.

Goals

• To take advantage of a longer day trend when price is trending significantly.

PLEASE NOTE:

Although these strategies offer nice high probability opportunities to take advantage of

directional moves in the market, the FULL POWER of our template is discussed in our

coaching sessions. This includes additional filters and ways to use our Level III template

to maximize your trading results.

Page 3

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prohibited without the prior written consent of Rockwell Trading, Inc.

www.rockwelltrading.com

Example

We apply Template No 2 see http://www.rockwelltrading.com) to the 15min chart of the

$EUR-USD, which shows the colored bars and confirmation lines :

We will trade an aggressive trading strategy on October 2, 2006*.

*** Although the currency markets are traded 24 hours a day, there are specific

timeframes that will increase a trader’s ability to trade the currency markets

successfully. These are discussed in detail during our coaching sessions.***

Page 4

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prohibited without the prior written consent of Rockwell Trading, Inc.

www.rockwelltrading.com

Here’s what we saw at 8:45 AM CST on October 2nd…

This is a nice entry showing a dark green bar that is confirmed by the 3 confirmation

lines pointing up. At the completion of this 15 minute bar our aggressive trading strategy

calls for a long trade .

We place a buy order as soon as the bar is complete:

Buy the $EUR-USD .

We receive our fill at 1.2710.

The goal of the Aggressive Green Line Strategy is to take advantage of a trending market

that could potentially move beyond our 20 pip target using the Conservative method.

Since our goal with the Aggressive Green Line Strategy is to remain in a trade on nice

trending days, we DO NOT have a profit objective. As a trader we ALWAYS need to

minimize our risk so we will place our stop loss at the value of the green confirmation

line. In this situation our stop loss is 18 pips away from our entry at 1.2692.

Page 5

Re-transmission or reproduction of any part of this material is strictly

prohibited without the prior written consent of Rockwell Trading, Inc.

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