My “Zero to a Million” Trading Strategy

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SPECIAL REPORT: Jack’s “Zero to a Million” Trading Strategy

The forex trading strategy designed to transform $100 into $1 million in less than 2 years – Here it is…coming to you from the inner sanctum, high atop the Hecksher Building…

All right, here we go:

-We’re going to make a million dollars (or more) through forex trading.

-We’re going to do it in 18 months (or less).

-And we’re going to start with next to nothing – $100.

I’m going to give you the basics of my trading strategy today and then I’ll share more details about it in future follow up articles.

This strategy IS designed to consistently offer excellent risk/reward opportunities, and, executed with some modest amount of intelligence (lucky for me that’s all it requires), should consistently produce winning trades that far outnumber and outpace losing trades.

MY 15 MINUTE CHART STRATEGY

HERE IT IS, the deep, dark, mysterious, intricate, secret system, worked out by an ancient Chinese Taoist sorcerer, and kept closely guarded for centuries by inscrutable Zen currency traders:

Open a new chart, set the time period to 15 minutes.  Load 3 EMAs (exponential moving averages) – the 5, 10, and 50 EMA.  When price and the 5 and 10 EMA lines all cross above the 50 EMA line, buy (or, conversely, when they all cross below the 50 EMA line, sell).  I know, I know – the complexity of it is staggering, right?

You can also add the 21 and 35 moving averages – as well as the 100 and 200 SMAs (simple moving averages) just for higher time frame reference – but the 5,10, and 50 provide the basic trading strategy.  I use EMAs weighted to the close – but that’s just my personal preference.

I’ve adjusted things a bit to my own personal trading style, but the credit for this outstanding strategy goes to a friend and fellow trader, Clay Ferrell, who was nice enough to share it for free at the Forex Factory forum (you can read more there at “Trading Systems”à”CHOROS System”, but fair warning, there’s 500+ pages of discussion – and that’s not even the original discussion thread!).  The original rule is to enter on the first retrace touch to the 10 MA (after price and both MA’s have crossed over the 50 MA).  However, I often enter when price has crossed and made a 15 minute candle close past the 50 MA.  I do that because I’ve found that price itself is a better indicator than any moving average (and because patience is not one of my virtues).

The initial stop loss shouldn’t be more than 10 or 12 pips, at most, below (or above, in a sell trade) that 50 MA line, nor more than 10-12 pips away from your entry point.  One of the main strengths of this strategy is its low risk.  The theory behind this strategy is that once that 50 MA line is crossed by all three – price, the 5 MA, and the 10 MA – that 50 MA line should pretty much hold as support/resistance.  It works best when the 5 and 10 Mas are both rising at a fairly steep angle.  The 10 MA line should continue to rise (in a buy trade), and also act as initial support for price.  Eventually price will come back through the 5 and 10 MA lines and test either the 35 or 50 MA line.  The FIRST time this happens, the 50 MA will usually hold – that is, there probably won’t be a 15 minute candle close significantly (i.e., not more than 4-5 pips) to the other side of it, and often price will just touch the 50 MA line and immediately bounce off of it.  The game is often over the second time that the 50 MA is challenged – it’ll give way, and price and the shorter moving averages will all decisively cross back over it in the opposite direction.

This is a short term trading strategy and it’s important to move your stop aggressively once you have a profit of about 10 pips – better to get stopped out with just a small profit than to let a profit turn into a loss.  Many times I’ve been stopped out with a small profit and initially wished I was still in the trade and been tempted to jump right back in…but an hour later ended up thinking, “Boy, I was sure lucky to get out with a profit on that”.

I urge you to set up your own charts with the three moving averages and watch the market action for yourself.

That’s my basic 15 minute trading strategy.  Of course it’s not quite that simple in actual trading and there’s a bit more to it than that, too much for me to cover in the space of one article.  I’ll provide more rules and trade filters for using the strategy in upcoming articles, so stay tuned.

Believe it or not, if we can simply average catching one good trade a day with this strategy, we will make it to our goal of a million dollars in 18 months or less.

3 KEYS TO SUCCESS! (applicable to ANY trading strategy)

1 – Learning.  You have to become an expert in your business, and that’s certainly true if your business is currency trading.  You need to put in the time and effort to always be learning how to improve your trading.

2 – Patience.  Starting a business with less than $100, and making a million dollars in less than two years sounds fast.  And it is.  But it can seem oh so slow in the beginning.  When you’re only seeing $5 or $10 profits, it doesn’t feel like you’re getting anywhere.  You want to be already up there making the “big coin”.  But you simply have to steel yourself to being patient, to being content with gradually increasing your equity.  Just averaging small daily profits will make that million dollars a reality.  You might even try reminding yourself every day you make a small gain, “I’m doing it – I’m making a million dollars.”

3 – Diligent adherence to a good, solid trading strategy.  It’s amazing how many traders discard a basically sound strategy just because it has a few losing trades.  They forget all the times it worked wonderfully.  No trading strategy is going to work every time – nothing’s perfect.  But I’ve found that a number of times when I thought, “Oh, this strategy doesn’t work”, that I’d often lost money not because of the strategy but because I’d departed from the strategy.  For example, sometimes I’ve jumped the trade too early, getting in as soon as price moved across the 50 EMA line – I looked back later and saw that there was never a 15 minute candle CLOSE across the 50 EMA – I’d violated the rules of my own strategy.  The trading strategy wasn’t at fault – I was.

WANT TO MAKE THE REALLY EASY MONEY? – HERE’S A STRATEGY I DEVELOPED THAT IS GUARANTEED (YES, GUARANTEED) TO ENABLE YOU TO BANK A PROFIT IN YOUR TRADING ACCOUNT EVERY SINGLE TRADING DAY THAT YOU USE IT – The Maverick Locked In Profit Strategy

As always, I welcome comments, suggestions, prayers and gifts of chocolate and liquor.  J

“As you have freely received, freely give…” – (Matthew 10:8)

Jack

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15 comments

    1. John – Thanks so much for taking the time to comment. I do try to offer help for traders, as I remember well how lost I was for good, solid advice when I first began forex trading, and I firmly believe that forex is the last road to wealth for the regular person struggling to get by month to month. So, feel free to ask questions, happy to help you out with whatever I can.

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  1. Thank you Jack for sharing this interesting strategy! Is there a way to adopt this strategy to lower term charts like M5 or even M1? In which way must the EMAs changed to fit then?

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    1. I know some people who use it on the M5 and M1 – on the M1, I think they use a 14 EMA instead of the 10 – but I’m still happy with it on the M15. I use a different strategy altogether on the M5 and M1. Thanks for your comment.

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  2. Hi Jack,

    For a new Forex trader to start with $100 and make $5 on a trade is IMHO, is misleading.
    In my experience, to make 5% on $100 would require a pretty sizable move in a given trade.

    I think it would be wiser for a newbie to start with $1,000 to truly make the $5 or more profit you speak of.

    I’m by no means an expert, so if I’m wrong or missing something, because I certainly would like to know.

    Anyways, thanks for your help and inspiring me to get involved trading Forex.

    Geoff

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    1. $5 is 10 pips, trading 5 micro lots. That’s not tremendously difficult to make. The important thing in forex trading is “don’t get killed” – don’t allow the high leverage available to entice you into a position that can blow out your entire account.
      Best wishes in trading, thanks for your comment.

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  3. Hi Jack,

    Thank you for your quick reply.

    Until you mentioned micro lots I didn’t know they existed. I’m glad I wrote
    to you so I can save time and move forward trading.

    If only I could bend you ear for a few minutes to learn more. Hehe!

    I look forward to reading more about Forex trading.

    Thanks again,

    Geoff

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    1. Geoff – Well, I am doing a daily chatroom/trading signals service now where you can “bend my ear” for a lot more than just a few minutes – You can find information on it at tradingfo.com

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  4. Good morning, I read your special report: Zero to a million, and at the end have a link Signal Service. But this link does not work. I would like to receive more information about this service. Thank you very much.

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    1. Oops – sorry, Jose, but I decided that I did not have the time available to provide the signal service right now, but forgot to remove that link. You can, however, access more of my trading strategies at Tradingfo.com. Best wishes.

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  5. Appreciate the article. I just went live on my account and was looking for a great strategy. What is the lot sizes during this process? I didn’t see it on the spreadsheet. Thanks!

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