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Boomerang Currency Trader| New Enhanced trading method
Posted on23. Jan, 2012 by Mohan.
Greetings Traders,
I have been researching long hours in my day trading lab since the release of Boomerang Currency Trader to always bring us the maximum precision and favorable win/loss ratio. My goal is to always make Boomerang Currency Trader a bit clearer to trade and simply to enhance even more the best trading system on the market when possible.
Now Boomerang Currency Trader has gotten even better and I will show you why in a moment.
Trading in the EuroFX market is a high speed adventure and there is definitely risk in all forms of trading. The reason I chose it to be my primary market and to develop Boomerang Currency Trader specifically for that market is because when you are on the right side of the trade the target profit goal can get filled very quickly (average 10 minutes or less). This takes the pressure off of having to sit in a trade for sometimes hours biting your nails wondering what is going to happen.
This is what I love the most about the EuroFX. However, like ALL futures markets there can be periods of erratic trading or what we call “Whip Saw” moves. In this report I identify rules that will assist us in avoiding whipsaw as much as possible.
So below I will describe the new enhanced method which is showing a tremendous percentage of winning trades. I will describe the simple method and rules which most of you who own BCT or have seen my videos are familiar with. In addition to that on the link below you will see a library of 5 videos which show sessions in January that feature the new, Enhanced method in action. On this report I added an even newer very slight enhancement that gives us an additional, important filter.
New recommended trading hours are: 8-3:00 Eastern Standard Time….USA
HERE ARE THE NEW ENHANCED RULES FOR THE “BOOMERANG CURRENCY TRADER”
1) Focusing on the Boomerang Force Index (Bias Indicator #2) we are watching for a matching bias/color on the BFI with a new Trade Channel Arrow and First Trade Signal on the entry line.
2) We are combining 3 simple methods one of which is what I call the original or “Core” method described in the BCT trading handbook. All 3 of these methods can be traded stand alone or in combination which is what I recommend.
3) Target on each trade is + 8 ticks and the stop is the Red channel line + or – 4 ticks depending on which side your trade is on. IE: Buy side means stop is 4 ticks below the Red line and Sell side means the stop is +4 ticks above the Red line.
THE 3 SIMPLE METHODS WILL BE DESCRIBED AlONG WITH THE FILTER FOR WHICH ONE TO USE AT ANY GIVEN TIME DURING TRADING.
Method #1: We watch for a new Arrow on a new Trade Channel to signal and CLOSE the candle. If the Boomerang Force Index (BFI) is the SAME COLOR on the close of the candle as the new Arrow/Trade channel AND with PRICES TOUCHING THE ORANGE LINE (or very near) WE TAKE THE NEXT TRADE ON THE SIGNAL LINE TAP.
Method #2: If the market has formed an extensive, elongated channel after a big move OR has formed a “Fat Channel” we can take the next Trade Signal WITHOUT THE FILTER OF HAVING THE PRICES NEAR OR TOUCHING THE ORANGE LINE. In such a case we require that THE FIRST TAP ON THE SIGNAL LINE IN THE NEW TRADE CHANNEL MUST HAVE A CORRESPONDING SAME COLOR BFI READING. If the BFI reading matched the closed Arrowed Candle opening the Trade channel then the BFI does not necessarily have to match the First tap on the signal line and the trade can be taken anyway.
Method #3: The Core Method described in the BCT handbook.
The Core/original approach is still very much valid and highly profitable. It can be used in conjunction with the new enhanced approach. You will often see how they correlate. Sometimes one of the setups will not occur and then the core approach will set up. As you watch the videos and go over a dozen charts or so you will see how amazing the new enhanced approach is.
Enhanced Approach Advantage: The new approach will capture trades that are often missed using the orignal, core approach. The great advantage of the NEW FILTER which is described in Method #1 combined with the ADDITIONAL FILTER (as described in Method #2) WHICH OCCURS AFTER AN ELONGATED TRADE CHANNEL AND/OR “FAT CHANNEL” provides us with a three pronged approach to set up precision BCT trades in almost any environment that the EuroFX gives us (except of course for strong Whip Saw/choppy markets). The rules shown below combined with strict adverhence to the three pronged method with filters above allows us to deal effectively with Whipsaw and Choppy market conditions.
As mentioned I also expanded the trading hours to 8-3:00 est to give us more trade setups.
Rules: (most of which are repeats of the rules from the trade handbook manual)
1) Don’t trade in choppy markets by watching out for the low volume readings on the volume meter. This meter is described in the special report here on the Boomerang Blog under “Links and Resources”.
2) Avoid choppy markets also by using Caution taking trades when you see prior spikey candles of +7 ticks in length before the next new Trade Channel arrow. See videos for more explanation
3) Use Caution on Whip Saw after long Extended moves of 3-4 waves or levels in length. Let the market chop around and then find the reversal point usually on the opposite side of the Orange line. Extended moves can also be identified by a Wide Spread on the Red Line and the Orange Line
4) Don’t trade against a STEEP ORANGE LINE
5) Very Important: Do not take trades in at the top or the bottom of a (Fat) Trade Channel that was opened with extended spike candles and has formed what I call a “Fat Channel”. You will see samples on the videos below of this.
6) When the Red line crosses over the Orange line look for the bias to lean in that direction normally for at least one trade channel and often significantly more. A recross of prices back over/under the Orange line after the Red line has Crossed over/under the Orange line creates an aberration on the new potential short term bias.
Now please watch these 5 video’s and see how accurate and profitable the new BCT Enhanced method is. Also see chart examples below the video.
*Be sure to hit “Full Screen” so you can see the extreme detail of the trade setups.
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