Forex Cash King
Thank you for purchasing the Forex Cash King system.
The Forex Cash King is a powerful trading system that generates signals in all Forex
pairs. This guide will show you how to trade this system for super profits!
If you have any questions about it please contact our support team at:
technical@[Link]
Trading Strategy
The Forex Cash King is using pivot points to generate trading signals.
Pivot points are a method of predicting support and resistance levels for the future.
Using mathematical formulas the trader is able to know today, what will be the most
powerful support and resistance levels tomorrow.
Don't worry, you don't need to calculate anything manually- there are indicators in any
trading platform that do that automatically. We are supplying you with the indicator for
MetaTrader 4 platform.
If you are interested, here are the formula for Pivot calculation:
H – Yesterday's Highest Price
L – Yesterday's Lowest price
C – Yesterday's Close Price
P = (H + L + C) / 3.
R1 = 2×P − L
S1 = 2×P − H
R2 = P + (H − L)
S2 = P − (H − L)
R3 = P + 2×(H − L)
S3 = P − 2×(H − L)
Each of these points is a PIVOT POINT. The R points are Resistance levels that we will
trade only with LONG trades, and the S points are Support level that we will trade only
with SHORT trades.
Actual Trading
Each day there are 5 pivot levels that we can trade. However we don't trade any pivot
levels (it has to meet our filters).
First step is to confirm that the pivot level is strong.
We confirm that by demanding that price was in 30 pips distance from the pivot level at
some point of the day.
This makes sure that the pivot level is strong enough to trade:
After we confirm that the pivot level is good, we proceed by putting a trade order:
if the level is a RESISTANCE level we will enter a long trade when the pivot is broken,
if the level is a SUPPORT level we will enter a short trade when the level is broken.
For long trades will put a buy order 1 pip above the level, and for short trades we will
put a sell order 1 pip below the order.
So if we have a Resistance pivot at 1.3119 the buy order will be placed at 1.3120
If we have a Support pivot at 1.3019 the sell order will be placed at 1.3018, and so on.
Stop Loss
We use a 20 pips trailing stop. This means that if price goes into +5 pips profit our stop
loss will move 5 pips upwards, so the maximum price can go back before we exit the
trade is 20 pips.
How to set trailing stop loss:
After entering the trade, right-click on it :
Click on 'Custom' and choose 20 poins.
This video also shows how it is done in real time:
[Link]
Take Profit
We exit half of the trade at +26 pips profit, and half the profit at +52 pips profit.
This is designed to get us in profit AND to take advantage of big moves.
How to close half position:
Click on 'Close Order', then set the lot number to be half of the lots number. This will
make only half of the position to close.
Receiving Alerts
To receive automatic sound (message box) alert when the Forex Cash King generates a signal,
click on Inputs tab and set 'SoundAlerts' to True.
The Forex Cash King can also send emails when it generates trades and\or exit signals. As a
default it is turned off. To receive email when the Forex Cash King issues signals, do the
following actions:
1. Enable Email Alerts. In the 'Inputs' tab, set '[Link]' to True.
2. Click on 'Tools' and 'Options'.
3. Click on the 'Email' tab.
4. Check the 'Enable' checkbox.
5. Ask your Internet Service Provider (ISP) what are his email server details.
6. Click on 'Test'. You should receive a test email to your inbox.
Money Management
"Successful traders have a larger edge and better money management than
unsuccessful traders. Unlike popular belief however, this study shows that
the smaller edge of successful traders is not the cause of their failure.
Traders' failures can be explained almost exclusively by their poor money
management practices."
"The Secrets of Successful Trading", Fernando Diaz
Money management is another part of the system that is here to protect your capital and
reduce your drawdowns. We will now present you several money management rules you
should employ. Do not deviate from these rules at any cost:
7. Never risk more than 1-3% of your capital in any single trade – Never risk more
than this amount in any trade you enter. Risking more than 5-10% in any trade will lead
you to great risk, and very few losing trades would kill your account, preventing you
from trading and recovering from your losses.
8. Never change your Stop Loss – Never change your stop loss due to your capital
and equity. We have presented you with solid stop loss rules you should use to
calculate your stop loss point. This point has nothing to do with your capital and should
not be affected by it. You should change the trade size (lots) to fit the amount you are
willing to risk. For example: your stop loss is 10 pips and your equity is 10,000$. You
wish to risk 2% of your equity in this trade, so you enter trade with 2 lots – so your risk
is 200$, or 2%.
For traders interested in learning more about money management we recommend entering
this great mini-site:
[Link]
Mindset
This is the final concept we will explain before teaching you the trading setups. However, it is
still important no matter how or what you trade.
It also derives from the first conclusion regarding the hit rate: any trade sometimes has losing
trades. No matter how good your trading system is, it may have losing trades. In any system or
strategy, you may also face streaks of 4-5 losses in a row. This is the reality of trading and you
have to face it.
However, professional traders know that these streaks have nothing with their trading
proficiency or abilities. They are simply the result of temporary bad luck. What most novices
do in such situations is starting to questions themselves: they think about changing their
trading strategy, adding indicators or confirmations, or completely changing their system. They
do not understand that their system is fine – and these losses are a part of trading reality.
They alter their system after any loss, aiming to achieve 100% hit rate. 100% hit rate is not
achievable, as in any time one bank can take a trade against you and drop the market 50 pips
in a second. There is no way you can anticipate such moves, so please stop trying.
What you need to understand here is simply: always stick to the strategy. Do not change it no
matter how much you lose. Don't worry, if you trade this strategy, your winning will be 3, even
4 times the losses. Again, do not change the system. It has proven itself for a hundred years
and will continue forever, so enjoy your knowledge and trade the system as mechanically as
you can.
For more information about trading mindset, we recommend the great book: Forex Mental
Fitness by John J. Drummond.
