One of the most frequently asked questions I get from new students at FX University is “Do you have a forex trading system that I can use that doesn't require I spend much time in front of my computer?”
Now, generally as soon as I receive this question I immediately question the motive of the individual. I mean let's face it, most people want something without having to work for it and trading the Forex market is certainly no place for someone that isn't willing to roll-up their sleeves and get dirty. On the other hand, the reality is that most Forex Traders have full-time jobs, families and a host of other responsibilities so becoming a professional Forex trader is simply not an option.
Given the demand, I spent some time digging through my preverbal toolbox and came up with a simple and effective Forex trading strategy that ANYONE can use. The strategy is called “The Weekend Warrior”.
Now before we get to the strategy I'd like to first take a minute and explain a Moving Average as it is the basis for the strategy. If you're already familiar with a Moving Average please feel free to skip down to “Here's How The Weekend Warrior works:”
One of the most widely used technical indicators of Forex Traders is the Moving Average. The Moving Average is an indicator which shows the average value of a security being analyzed over a determined period of time.
There are many mathematical variations of the MA applied specifically to Forex trading; however, they all are attempting to accomplish virtually the same purpose: to predict patterns in currency movements that will allow Forex traders to enter and exit a position at the most profitable time of a trend shift.
Traditionally, a shorter (faster) MA is plotted on a chart along with a longer (slower) MA. The cross of the faster MA into the slower MA from above would be considered a bearish move or possible downward trend. Inversely, the cross of the slower MA from below back above a slower MA would be a signal of a bullish move or possible upward trend.
Here's How the “The Weekend Warrior” works:
On a daily chart insert a Moving Average (MA) 10 and a Moving Average (MA) 40.
Long Position: Each Friday before the close, buy any currency on a 9-day break-out, if the MA10 is above the MA40. Hold the position over the weekend and Monday morning close the position out for a profit.
Short Position: Each Friday before the close, sell short any currency on a ten day break-out, if the MA10 is below the MA40. Hold the position over the weekend and Monday morning close the position out for a profit.
Leverage: Use your existing money management strategy or we recommend less than 1% equity.
Why does it work? For one, because other people aren't doing it. And two, you're capitalizing on a pre-defined gap that occurs between the close and open of the currency market.
Now go mark your calendar for next Friday and give it a try. The results will speak for themselves and who knows TGIF could have a whole new meaning for you.