I have been researching long hours in my day trading  lab the last 2 weeks with Boomerang Currency Trader as I have made some new discoveries.  My goal is to make Boomerang Currency Trader a bit clearer to trade and simply to enhance even more the best trading system on the market.

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 up to 85% 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.

By the way: I did a meticulous count of the BCT trade setups using the new enhanced method only from the new recommended trading period of 8-3:00 est

From the period of 12/27/11 to 1/23/12  there were :  108 trades…91 gains (+8 ticks) and 17 losses (average – 8 ticks) which is an average of 85% winning trades.

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)  ENTRY RULE:  If the BFI color matches the direction of the new Trade Channel Arrow signal on the close of the candle OR on the first tap on the Signal line within that new channel  then take the  entry on that First Signal Line Tap.

3)  Target 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.

Thats it!  This enhanced approach with the new expanded hours will give us more winning trades in most cases due to the extra active hours and because this enhanced approach will catch many trades the core approach misses.

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. 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 not 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 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.

Now please watch these 5 video’s and see how accurate and profitable the new BCT Enhanced method is.

*Be sure to hit “Full Screen” so you can see the extreme detail of the trade setups.

http://www.screencast.com/users/DayTradersAction/folders/BCT%20Enhanced/media/26b8c3e6-4685-4384-a4ba-45265664dfa5