Trading Currency Futures – Yen and Euro make profits.

While trading currency futures this morning, we lost about ten ticks on the British Pound counter-trend trading in the trading room, the Yen and Euro definitely made up for it.  We knew to trend trade both currencies as the higher timeframes were trending up.  The ADX was not magenta and we knew there was no chance of counter trend trading.

Trading Currency Futures:  Euro

First, the Euro formed a congestion area and retraced back to the ATR.  Entry at the ATR (plus sign) was generated.

Euro trade made 48 pips while only risking fifteen ticks (or a minimum of ten ticks).

Trading Currency Futures:  Yen

Later, we had almost exactly the same setup on the Japanese Yen.  The 3 minute Yen pulled back to the ATR and gave an entry long.  Yen trade made 17 pips with only a ten tick risk.

Click on the chart to expand.

Trading Currency Futures

By incorporating the ADX, we know when to trend trade and when to counter-trend trade.  Then entries are simple — at the ATR.  Stop is always a maximum of 15 ticks from entry.  Profit target is a minimum of 30 ticks.  Simple, plan, and consistent entry and exit rules.

The THD Strategies automatically highlight the entries for you.  The ATR strategy also identify the profit target and has two built-in stops.  One stop is based on the ATR stop indicator and the second stop kicks in once a minimum profit target has been achieved.  Then the stop follows price closer to get more profits.

The THD Strategies will be available soon on a subscription only basis (either quarterly or annually) for clients that have the indicators.  Of course with our new subscription service, clients will always have the latest indicators, online training courses, and access to a weekly webinar on Mondays from 10am till noon.