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Posted on January 31st, 2012
by Rapid Forex
A normal part of online forex trading is drawdown. It’s not often talked about because it isn’t “sexy,” but drawdown isn’t something you need to be afraid of.
What’s Drawdown?
Drawdown is when your trading account equity moves down in value. Forex traders want their balance to go up, so periods of declining account equity are typically feared, but they shouldn’t be because drawdown is normal.
Eliminating drawdown completely would require you to accurately & consistently pick the HIGHEST price & LOWEST price in every trend. This is almost impossible due to variation in prices, known as volatility in financial markets. Nobody on earth can accurately get the highest price & lowest price on each trend. We can get good prices, but there’s always a better price we could have got.
Close Enough for Profits
As a forex trader you can correctly guess the trend direction. If prices are likely to go up, you buy. If they are likely to go down, you sell. But once you buy/sell to open a position, it doesn’t mean prices will turn around the moment you place your order. Moments after you open your trade, a better price is often available. When this better price is available, you are experiencing DRAWDOWN…
This is ok.
Sometimes better prices are available DAYS after you opened your position, resulting in a larger drawdown. You don’t want to panic, because you still may be correct about prices going up over the longer term. You can also benefit from periods of drawdown.
Larger Profits with Drawdown?
A period of Drawdown is a windup for better profits.
Let’s look at a trade where we buy (long) 1,000 units of EUR/USD @ 1.3100. Prices expected to rise to 1.3300. Wait to 1.3300 to sell.
Look at these 3 scenarios:
Scenario #1 – No DRAWDOWN: If prices go from 1.3100 straight up to 1.3300, we make 200 pips on this trade. This is the ideal case as we won’t experience any drawdown.
Scenario #2 – Moderate Drawdown: If prices go from 1.3100 down to 1.3000, we are at 100 pips of DRAWDOWN. This is a point where some traders get nervous, start feeling sick and start to doubt what they’re doing. But there’s also an opportunity. We could buy another 1,000 units @ 1.3000. This brings our average open price to 1.3050. Now, when the price rises to 1.3300 we make 500 pips profit! This is 250 pips per 1,000 units traded.
Scenario #3 – Severs Drawdown: If prices go from 1.3100 down to 1.2900, we are at 200 pips of DRAWDOWN. This would tempt many traders to panic, but it’s also an opportunity to increase profits. If we buy another 1,000 units @ 1.2900, we make 600 pips profit when we reach our target at 1.3300. This is 300 pips profit per 1,000 units traded!
As you can see, larger drawdown gives potential for higher profits. The key is not to confuse drawdown with trend reversal. As long as you still believe you are right about trend direction, drawdown is really just a difference in timing between you & the market…a difference that can earn you higher profits.
Avoid Drawdown Denial
There are times when you should cut your losses and prevent drawdown from wiping you out. There is a point where drawdown turns into devastation. It’s a line you need to walk carefully. It’s not something to fear, it’s something you need to understand how it fits within your trading system.
With portfolio hedging, drawdown is automatically accounted for & used to grab higher profits when the drawdown turns into a huge UPSWING! To receive the benefits of a well planned money management system that uses drawdown as an advantage (and avoids drawdown as much as possible), check out the rapid forex hedge report today.
Posted in
Money Management
Posted on March 27th, 2011
by Rapid Forex
A few months ago I claimed that the Forex Ladder could make 100+ pips per week with 15 minutes of effort per day.
I was actually lowballing it because I knew it sounded unbelievable. At the risk of sounding crazy, I recently published the *actual* results of 226 pips/week a few days ago.
Complete Trading Course
For the past 3 months I’ve been teaching the Forex Ladder exclusively in the LIVE Forex Training class.
I’ve now taken the entire forex ladder trading method and put it into a comprehensive downloadable video course.
Here’s What You Get:
The Forex Ladder Trading Course is broken into Six Video Modules:
Module #1. Forex For Beginners - The Basics of how the forex market works.
Module #2. Forex Ladder Introduction – An introduction to the Forex Ladder calculator. Explains why the forex ladder works.
Module #3. Directional Movements - Never before taught method for spotting price trends in less than 30 seconds. I use this SAME method to scan ALL 16 currency pairs in less than 4 minutes each day. Works with ANY trading method, but particuarly powerful with the Forex Ladder method.
Module #4. Basic Ladder Trading - The simplified Forex Ladder trading method. Great for Beginners or people with *tiny* (<$500) trading accounts.
Module #5. Ladder Matrix - The complete Forex Ladder Matrix Trading System. Designed for maximum gain on currency price movements.
Module #6. Money Management - Manage your trade sizes, calculate risk, and keep your account safe. Specifically tailored to the Forex Ladder Trading System.
Appendix. PDF Notes - Complete PDF notes for the entire Forex Ladder Trading course. Print these out for reference, and make your own notes in the margins.
The “Tool”. Forex Ladder Calculator - This tool calculates buy, sell, stop & limit targets for your Forex Ladder trades. Just enter high, low and close prices.
For a limited time, I’m ALSO offering the complete Forex Ladder video course so that MORE PEOPLE (including YOU) have a chance to start creating your Forex Fortune.
Posted in
News
Posted on March 23rd, 2011
by Rapid Forex
It’s been a little over 3 months since I publicly announced the Forex Ladder Trading Method. Since then I’ve been working with a small group of traders in the LIVE Forex Training class.
The EUR/USD is about to make another BIG MOVE…keep reading to see how you can benefit from it…
Before telling you *HOW* to grab the next big EUR/USD movement, allow me to *SHOW* you the results of the last 145 trades this method has produced:
Forex Ladder Produces Results
Although this new forex trading method has only been available to a small group of traders for the past few months, I spent many years painstakingly developing this method prior to releasing it. To prove the results, here is a summary of EVERY Forex Ladder Matrix trade that has happened since January 2010 for the EUR/USD on daily charts:
| Date |
Buy |
Sell |
Gain/Loss |
Total |
| 01/25/10 |
1.4080 |
1.4134 |
0.0054 |
0.0054 |
| 01/27/10 |
1.3982 |
1.4036 |
0.0054 |
0.0108 |
| 01/28/10 |
1.3924 |
1.3985 |
0.0061 |
0.0169 |
| 02/02/10 |
1.3900 |
1.3904 |
0.0004 |
0.0172 |
| 02/03/10 |
1.3857 |
1.3906 |
0.0049 |
0.0222 |
| 02/03/10 |
1.3779 |
1.3953 |
0.0173 |
0.0395 |
| 02/04/10 |
1.3679 |
1.3988 |
0.0309 |
0.0705 |
| 02/08/10 |
1.3747 |
1.3941 |
0.0194 |
0.0898 |
| 02/08/10 |
1.3747 |
1.3664 |
-0.0083 |
0.0816 |
| 02/08/10 |
1.3747 |
1.3659 |
-0.0088 |
0.0728 |
| 02/08/10 |
1.3747 |
1.3703 |
-0.0044 |
0.0684 |
| 02/10/10 |
1.3602 |
1.3758 |
0.0156 |
0.0840 |
| 02/10/10 |
1.3672 |
1.3741 |
0.0069 |
0.0909 |
| 02/15/10 |
1.3656 |
1.3614 |
-0.0042 |
0.0868 |
| 02/15/10 |
1.3656 |
1.3603 |
-0.0053 |
0.0815 |
| 02/15/10 |
1.3656 |
1.3629 |
-0.0027 |
0.0788 |
| 04/26/10 |
1.3209 |
1.3323 |
0.0114 |
0.0902 |
| 04/26/10 |
1.3258 |
1.3399 |
0.0141 |
0.1043 |
| 04/26/10 |
1.3306 |
1.3324 |
0.0018 |
0.1061 |
| 04/26/10 |
1.3209 |
1.3412 |
0.0204 |
0.1265 |
| 04/29/10 |
1.3326 |
1.3355 |
0.0029 |
0.1294 |
| 04/29/10 |
1.3326 |
1.3251 |
-0.0075 |
0.1218 |
| 04/29/10 |
1.3326 |
1.3199 |
-0.0127 |
0.1091 |
| 04/29/10 |
1.3326 |
1.3231 |
-0.0095 |
0.0996 |
| 04/29/10 |
1.3326 |
1.3279 |
-0.0048 |
0.0948 |
| 05/02/10 |
1.3182 |
1.3356 |
0.0173 |
0.1121 |
| 05/02/10 |
1.3238 |
1.3293 |
0.0055 |
0.1177 |
| 05/09/10 |
1.2924 |
1.2662 |
-0.0262 |
0.0915 |
| 05/09/10 |
1.2924 |
1.2814 |
-0.0110 |
0.0804 |
| 05/11/10 |
1.2621 |
1.2704 |
0.0083 |
0.0887 |
| 05/12/10 |
1.2578 |
1.2651 |
0.0074 |
0.0961 |
| 05/17/10 |
1.2264 |
1.2346 |
0.0082 |
0.1043 |
| 05/23/10 |
1.2456 |
1.2268 |
-0.0188 |
0.0855 |
| 05/23/10 |
1.2348 |
1.2398 |
0.0050 |
0.0905 |
| 05/24/10 |
1.2306 |
1.2326 |
0.0020 |
0.0925 |
| 05/24/10 |
1.2188 |
1.2481 |
0.0293 |
0.1218 |
| 05/25/10 |
1.2207 |
1.2459 |
0.0252 |
0.1470 |
| 05/27/10 |
1.2302 |
1.2614 |
0.0312 |
0.1782 |
| 05/27/10 |
1.2302 |
1.2297 |
-0.0005 |
0.1777 |
| 05/27/10 |
1.2302 |
1.2243 |
-0.0059 |
0.1718 |
| 05/27/10 |
1.2302 |
1.2343 |
0.0041 |
0.1759 |
| 07/05/10 |
1.2496 |
1.2551 |
0.0055 |
0.1814 |
| 07/05/10 |
1.2526 |
1.2575 |
0.0049 |
0.1863 |
| 07/07/10 |
1.2588 |
1.2676 |
0.0088 |
0.1951 |
| 07/11/10 |
1.2598 |
1.2783 |
0.0011 |
0.1962 |
| 07/14/10 |
1.2675 |
1.2692 |
0.0016 |
0.1979 |
| 07/14/10 |
1.2633 |
1.2644 |
0.0185 |
0.2164 |
| 07/14/10 |
1.2548 |
1.2831 |
0.0283 |
0.2447 |
| 07/14/10 |
1.2597 |
1.2880 |
0.0284 |
0.2731 |
| 07/19/10 |
1.2734 |
1.2996 |
0.0262 |
0.2993 |
| 07/21/10 |
1.2880 |
1.2881 |
0.0001 |
0.2994 |
| 07/22/10 |
1.2941 |
1.2957 |
0.0017 |
0.3010 |
| 07/25/10 |
1.2875 |
1.2980 |
0.0105 |
0.3116 |
| 07/26/10 |
1.2934 |
1.3027 |
0.0093 |
0.3209 |
| 07/28/10 |
1.2814 |
1.3037 |
0.0223 |
0.3432 |
| 07/28/10 |
1.2799 |
1.3073 |
0.0275 |
0.3706 |
| 08/01/10 |
1.2853 |
1.3093 |
0.0240 |
0.3946 |
| 08/01/10 |
1.2890 |
1.3149 |
0.0260 |
0.4206 |
| 08/02/10 |
1.2957 |
1.3219 |
0.0262 |
0.4468 |
| 08/05/10 |
1.2997 |
1.3240 |
0.0243 |
0.4711 |
| 08/05/10 |
1.3000 |
1.3300 |
0.0300 |
0.5011 |
| 08/09/10 |
1.2993 |
1.3147 |
0.0154 |
0.5166 |
| 08/09/10 |
1.3157 |
1.3147 |
-0.0010 |
0.5156 |
| 08/09/10 |
1.3212 |
1.3147 |
-0.0065 |
0.5091 |
| 08/09/10 |
1.3119 |
1.3147 |
0.0028 |
0.5119 |
| 08/09/10 |
1.3176 |
1.3147 |
-0.0029 |
0.5091 |
| 08/09/10 |
1.3180 |
1.3147 |
-0.0033 |
0.5058 |
| 08/09/10 |
1.3260 |
1.3147 |
-0.0113 |
0.4945 |
| 08/09/10 |
1.3198 |
1.3147 |
-0.0050 |
0.4895 |
| 08/10/10 |
1.3160 |
1.3005 |
-0.0155 |
0.4740 |
| 08/10/10 |
1.3082 |
1.3005 |
-0.0078 |
0.4662 |
| 08/18/10 |
1.2813 |
1.2865 |
0.0052 |
0.4714 |
| 08/19/10 |
1.2765 |
1.2831 |
0.0067 |
0.4780 |
| 08/23/10 |
1.2632 |
1.2715 |
0.0083 |
0.4863 |
| 08/23/10 |
1.2586 |
1.2677 |
0.0090 |
0.4954 |
| 08/27/10 |
1.2677 |
1.2643 |
-0.0034 |
0.4920 |
| 08/28/10 |
1.2636 |
1.2706 |
0.0071 |
0.4990 |
| 08/31/10 |
1.2797 |
1.2663 |
-0.0134 |
0.4856 |
| 08/31/10 |
1.2797 |
1.2722 |
-0.0076 |
0.4780 |
| 08/31/10 |
1.2797 |
1.2709 |
-0.0088 |
0.4692 |
| 08/31/10 |
1.2797 |
1.2768 |
-0.0030 |
0.4663 |
| 08/31/10 |
1.2797 |
1.2728 |
-0.0069 |
0.4594 |
| 08/31/10 |
1.2797 |
1.2695 |
-0.0102 |
0.4491 |
| 08/31/10 |
1.2797 |
1.2682 |
-0.0116 |
0.4376 |
| 08/31/10 |
1.2797 |
1.2740 |
-0.0058 |
0.4318 |
| 09/20/10 |
1.3056 |
1.3115 |
0.0059 |
0.4377 |
| 09/20/10 |
1.3071 |
1.3159 |
0.0088 |
0.4465 |
| 09/20/10 |
1.3070 |
1.3204 |
0.0135 |
0.4600 |
| 09/23/10 |
1.3363 |
1.3393 |
0.0030 |
0.4629 |
| 09/23/10 |
1.3343 |
1.3443 |
0.0100 |
0.4729 |
| 09/27/10 |
1.3420 |
1.3501 |
0.0081 |
0.4810 |
| 09/27/10 |
1.3462 |
1.3540 |
0.0078 |
0.4889 |
| 09/29/10 |
1.3574 |
1.3654 |
0.0080 |
0.4969 |
| 09/30/10 |
1.3612 |
1.3689 |
0.0077 |
0.5045 |
| 09/30/10 |
1.3625 |
1.3752 |
0.0128 |
0.5173 |
| 10/04/10 |
1.3726 |
1.3783 |
0.0057 |
0.5230 |
| 10/04/10 |
1.3643 |
1.3847 |
0.0204 |
0.5435 |
| 10/05/10 |
1.3718 |
1.3898 |
0.0180 |
0.5614 |
| 10/06/10 |
1.3891 |
1.3972 |
0.0081 |
0.5696 |
| 10/10/10 |
1.3849 |
1.3991 |
0.0142 |
0.5838 |
| 10/12/10 |
1.3937 |
1.3965 |
0.0029 |
0.5866 |
| 10/13/10 |
1.3913 |
1.4003 |
0.0090 |
0.5956 |
| 10/13/10 |
1.3837 |
1.4049 |
0.0211 |
0.6168 |
| 10/13/10 |
1.3917 |
1.4094 |
0.0177 |
0.6345 |
| 10/14/10 |
1.3958 |
1.4141 |
0.0184 |
0.6528 |
| 10/18/10 |
1.3974 |
1.3920 |
-0.0055 |
0.6474 |
| 10/18/10 |
1.4053 |
1.3920 |
-0.0133 |
0.6341 |
| 10/18/10 |
1.3902 |
1.3920 |
0.0017 |
0.6358 |
| 11/15/10 |
1.3531 |
1.3633 |
0.0102 |
0.6460 |
| 11/17/10 |
1.3627 |
1.3529 |
-0.0098 |
0.6362 |
| 11/17/10 |
1.3627 |
1.3572 |
-0.0055 |
0.6308 |
| 11/21/10 |
1.3614 |
1.3687 |
0.0077 |
0.6384 |
| 11/22/10 |
1.3553 |
1.3611 |
-0.0127 |
0.6257 |
| 11/22/10 |
1.3442 |
1.3737 |
0.0063 |
0.6321 |
| 11/23/10 |
1.3302 |
1.3674 |
0.0372 |
0.6692 |
| 11/25/10 |
1.3297 |
1.3345 |
0.0049 |
0.6741 |
| 11/25/10 |
1.3248 |
1.3345 |
0.0096 |
0.6837 |
| 11/28/10 |
1.3184 |
1.3269 |
0.0085 |
0.6923 |
| 12/02/10 |
1.3370 |
1.3115 |
-0.0256 |
0.6667 |
| 12/02/10 |
1.3370 |
1.3033 |
-0.0338 |
0.6329 |
| 12/02/10 |
1.3370 |
1.3096 |
-0.0275 |
0.6054 |
| 12/02/10 |
1.3370 |
1.3208 |
-0.0163 |
0.5892 |
| 12/02/10 |
1.3370 |
1.3271 |
-0.0100 |
0.5792 |
| 12/07/10 |
1.3226 |
1.3339 |
0.0113 |
0.5905 |
| 12/08/10 |
1.3240 |
1.3324 |
0.0084 |
0.5989 |
| 01/11/11 |
1.3051 |
1.2977 |
-0.0073 |
0.5916 |
| 01/11/11 |
1.3051 |
1.2928 |
-0.0122 |
0.5794 |
| 01/11/11 |
1.3051 |
1.3003 |
-0.0047 |
0.5746 |
| 01/12/11 |
1.3279 |
1.3178 |
-0.0101 |
0.5646 |
| 01/16/11 |
1.3381 |
1.3439 |
0.0058 |
0.5704 |
| 01/20/11 |
1.3459 |
1.3528 |
0.0069 |
0.5773 |
| 01/20/11 |
1.3463 |
1.3592 |
0.0130 |
0.5903 |
| 01/24/11 |
1.3562 |
1.3696 |
0.0134 |
0.6037 |
| 01/26/11 |
1.3620 |
1.3733 |
0.0113 |
0.6150 |
| 01/27/11 |
1.3652 |
1.3598 |
-0.0053 |
0.6097 |
| 01/27/11 |
1.3653 |
1.3598 |
-0.0055 |
0.6042 |
| 01/27/11 |
1.3690 |
1.3598 |
-0.0092 |
0.5950 |
| 01/27/11 |
1.3654 |
1.3598 |
-0.0056 |
0.5894 |
| 01/27/11 |
1.3709 |
1.3598 |
-0.0111 |
0.5783 |
| 01/30/11 |
1.3645 |
1.3720 |
0.0075 |
0.5858 |
| 02/02/11 |
1.3787 |
1.3715 |
-0.0071 |
0.5787 |
| 02/02/11 |
1.3812 |
1.3715 |
-0.0096 |
0.5691 |
| 02/02/11 |
1.3764 |
1.3715 |
-0.0048 |
0.5643 |
| 02/07/11 |
1.3570 |
1.3572 |
0.0002 |
0.5645 |
| 02/07/11 |
1.3529 |
1.3572 |
0.0043 |
0.5689 |
| 02/07/11 |
1.3600 |
1.3572 |
-0.0028 |
0.5661 |
That’s 226 Pips a Week!
As you can see, over the course of the 25 weeks trades were signaled, there was an overall gain of 5,661 pips! This is impressive considering that the EUR/USD from it’s high to it’s low during the same time period only moved 2,538 pips!
Out of the 145 total trades, 90 (62.1%) were profitable. The best part about this trading method was that it takes less than 10 minutes a day AND there’s nothing to think about. You simply enter your buy/sell orders and you’re done for the day.
How Does It Work?
The Forex Ladder takes the most recent price data from the forex charts and gives you buy and sell targets. It works by allowing you to buy low & sell high (the secret to all profitable trading).
All you need to do is determine if the currency is trending (takes 30 seconds or less with a simple trick), then login to your forex account to place your orders (takes 5-7 minutes).
By placing many trades, you are able to put the odds of being right (making a profitable trade) on your side. It’s impossible to be right all of the time, but you can be right more than you’re wrong…and THAT is a very profitable SKILL to possess 
What About Other Timeframes and Currency Pairs?
The Forex Ladder also works well with other timeframes and currency pairs. There are certain timeframes you should avoid for ALL trading (covered in the forex ladder course), this mistake has undoubtedly ruined untold fortunes for forex traders worldwide.
Next EUR/USD Price Wave Imminent
It’s been about 6 weeks since the EUR/USD had a trade using the forex ladder method. The EUR/USD is currently approaching a new price wave. With such a potentially lucrative movement about to happen, I want to give you a “heads up” on how you can take advantage of this new opportunity taught in the LIVE Forex Training class…I’ll even PROVE the results to you:
Click Here to Enroll in the LIVE Forex Training
to Benefit from the Next EUR/USD price wave!
Posted in
Technical Analysis
Rapid Forex on 
Larry on 
Dan Onzo on 
Rob on