Hi Folks.

One of my students sent in a great question that I thought I would share with you (concerning the Winter 2016 Webinar on Demand with the USDMXN).

The question was this:  "I know everything in Forex can change seemingly overnight, and what works today stops working tomorrow sometimes.  So how long has this 1,000-3,000 pip Average Daily Range been in this range, and how long can we expect it to remain?"

Excellent question.

To find the answer I had to spend a couple of hours poring over the Daily and Weekly charts for the USDMXN, testing various candles to determine the highs and lows to see if I coul spot any prolonged period where the UM dropped out of the 1-3k pip range.

The good news is I went back as far as 2002 on the Traders Way Daily chart and found that the 1,000-3,000 ADR was in place 14 years ago and has pretty much stayed in place ever since.  Yes, there have been the odd days when price action slowed down for one reason or another, but it was rare to find more than 2 or 3 days where price fell below a 500 pip range, and without fail a quiet day (or group of days) was followed immediately by a return to the 1,000-3,000 pip range.

So this is not something that is likely to quit working anytime soon.

A second equally good question I was asked was this:  If I open a Traders Way account to trade the UM, how much money do I need to be able to take a trade using a single minilot?"

Because of the huge leverage you get with Traders Way (1,000-1) you can place a single minilot trade with the UM for $10.  Since 100 pips would equal a little over $6, and our normal stop loss is in the 100-250 pip range, your loss exposure would be anywhere from $6 to $15 dollars per trade.  This means you can start with as little as $200 and comfortable trade a single minilot and ride out two or three losing trades without doing any serious damage to your account. 

Obviously, having more money in your account to start would be better from both a risk and a psychological standpoint, but since I realize many people are staring with tight budgets, this pair and this particular trading method really do give you the best chance to consistently profit while keeping your risk of loss down to a minimum.

Just FYI, I will be taking down the Live Trade Room option for learning this method tomorrow evening.  So if you would like to learn and trade live with me in my trade room, you have about 24 hours left to get signed up, which you can do here: 

www.simple4xsystem.net/winter2016.html

I look forward to seeing you in the trade room.

Jeff

P.S.--The basic method without the Live Trade Room option will remain up indefinitely.