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Trading Strategy

Trading Strategy
The general overview of the trading strategy incorporated into the Spot Forex Leveraged & Protected Capital Trading Program, based upon the C.A.M.E. system developed by Stephen Mepstead, is :

• The six majors are traded:EUR,GBP,CHF,AUS,CAD and JPY.

• The traded Crosses depend on prevailing technical and fundamental appraisal but most commonly traded are: EUR/YEN, EUR/GBP, EUR/CHF, GBP/YEN, EUR/CAD.

• Knowledge: Daily sourcing, in-house Fundamental Analysis on Global Events, Geo-political appraisal relative to the specific market is written into the trading equation along with Technical Analysis Trading Tools. M arkets are in a constant change of flux, keeping on top of the markets volume and flow is paramount in maintaining profitability and in gauging the strength of the trade signal.

• Technical Analysis Trading Tools: Differing technical tools have been tried and tested over the past 15 years. The system is under a constant ongoing revaluating process for maximum efficiency. The tools currently implemented by the C.A.M.E. System have been found to be the most constant therefore reliable whatever the market condition. Employing these tools, within the chosen mathematical formula for optimum profitability, in varying degrees of weightiness generate trading signals within set profit and loss distribution levels. As a general rule of thumb, 80% of trades are day trades while the 20% remainder are “strategic trades” positioned to catch a trend. The system works on a pre-emptive entry therefore will always be ahead of the trend. Consideration is given to differing trading time zones. Although the system is Human run, the Black Box approach is used for strict adherence to stop entry exit limits underlying the commitment to trading discipline.

• Market Evaluation: Appraisal of current psychology of the market, Bull, Bear Lamb; Creates a Trading Opportunity. Analysis of market mood found very useful in helping to arrive at trading decisions and is an important factor greatly ignored by the marketplace and a possible contributing factor to a trader’s losses.

• Entering: When all the criteria for entering a trade has been met a trading opportunity will present itself and a position is enacted. The jobbing trade will be such that it will have a downside risk of generally no more than 30 pips, will offer a three tier profit distribution level each one when hit triggers a trailing stop thereby ensuring that a potential profit is never lost. A stoploss on position entry is automatically placed. Term trades run deeper stops but to set favourable risk/reward ratios. There is a time element imposed on the trade from the outset, which triggers a close out if the market has not reacted as expected.

• Options are used as a valuable tool to compliment an existing trading scenario or as a stand alone tool in certain instances.

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