Money Management is everything with this Strategy
This forex trading system is simply the most effective system out there with a solid fundamental core, using advanced money management, risk to reward ratios, and position sizes giving the average person the ability to be consistently profit with a very easy to trade strategy that does not require you to be in front of the screen all day. Yes, the system return lately is astonishing but prior it has now been averaging 5,000 pips a month.
[box type=”spacer”]The Conquer v2 Forex Trading System uses price action for entries along with the True Trend indicator to define the current long term trend of the market providing the opportunity to profit in all market conditions including trending markets along with consolidation phases. The core of the system is the favorable risk to reward ratios ranging from 1:3 to as high as 1:12 on each trade and positions sizes with variable stop losses & targets depending on current market volatility.
The Conquer V2 is able to produce high returns with a very limited draw down and perform well in both trending and non trending market conditions.[/box]
How the System Works: Rules for Trading
Account leverage should be set to 50:1 (Conquer V2 only use a small fraction of this leverage, approximately 1/5 of the available account margin).
Currency Pairs Traded
Recommend Currencies: GBP/JPY, EUR/USD, GPB/USD, EUR/JPY, AUD/USD, EUR/GBP
Above are the pairs that I am personally trading. You can trade the Conquer V2 on any currency pair.
[box type=”note”]If you are just starting out trading one or two pairs the best performing pairs recently has been the EUR/USD & EUR/JPY. Of course past performance is not indicative of future results.[/box]
Time Frames Traded
Conquer V2 is traded off of the 8 hour time frame since it is the most profitable and easiest to trade. The 8 hour time frame requires special setting up for Metatrader charts as they are not included by default. The step by step instructions in the help section as well as setup video are found directly below under indicators.
8 hour time frame = 3 signal periods a day
0:00, 8:00 & 16:00 GMT.
If you are using a different data feed such as FXCM (8 hour charts come default and candle open an hour ahead) or FXPro (also different candle times) you can do so, always trade what is on your charts following the system rules.
Getting Setup and Beginning Trading
People often have trouble sticking to a set of rules. Exiting profitable trades too early and hold onto losing trades too long. You might not be used to having several trades open hundreds of pips into profit and in the beginning might feel the urge to close trades early taking profits because you believe the market is going to turn. I am unable to predict the market so I stick to the rules. The conquer forex system will always have you on the right side of the market holding onto winning trades and exiting losing trades quickly. Although simple and easy to trade the core structure of this system is rock solid.
From my experience once you have built up trust in a system then you are then able to have the confidence follow it no matter the market situation knowing if you do then you will be profitable and if you do not then you will not be. Remember you are not smarter than the markets.
1. Download the 3 required indicators and then setup the 8 hour charts. Follow the step by step directions and if you run into any problems setting up you can watch the video for setting up your charts to help. The 8 hour charts should read ‘offline’ however so long as you keep the 1 hour partner charts open they will update in real time.
2. Read below the rules the rules of the system. Make sure to read them carefully and fully.
3. Begin by taking each new trade as they occur. This is the easiest and best way to begin. In a short time it will become familiar and easy for you. You may need to begin with trading only a couple of pairs. If so pick any two pairs that you like to trade.
The True Trend indicator which defines the trend as positive (when above the zero line) or negative (when below the zero line) and the ATR or Average True Range indicator which is used to determine the stop loss & take profit levels according to current market volatility.
True Trend = determines the greater trend of the currency pair in place.
We use the True Trend to define the currency market swing.
1. We always and only trade what is on our charts on the time frame we are trading and according to our trading plan.
2. We never pay attention to any news event being price always prices everything in and we are trading and reacting to price.
You just cannot approach trading in a manner where you think you are smarter than the market.
Along with our entry and exit rules we place a high importance on our money management. Our position sizes and risk/reward ratios. If a series of trades stop out our loss is minimal and because of the high risk to reward we are using on each trade we know it only takes a couple of winning trades to recover from any draw down.
In other words, we expect to have losses and our trading plan is set accordingly.
To sum it up, I have no idea what is going to happen in the markets ever so I am just following my trading plan! All of the work went into developing the trading system. If you are not trading a well developed plan you are trading subjectively all the time and will continue to blow out your accounts losing money.
How to download the indicators?Make sure you close your MT4 before downloading the files
Download one file at a time by saving them to this folder on your C Drive:
C:\Program Files\metatrader 4\experts\indicators
Do not try to open it the file, save it.
Add the indicators
If you have already downloaded the indicator to add it to the chart click:
Insert > Indicators > Custom > True Trend
Insert > Indicators > Custom > ATR_MTF
Create a chart template to make life easy
Once you had added it to one chart you can then click:
Chart > Template > Save as and name it Conquer.
Then to load it on another chart simply click:
Chart > Template > Load > Conquer
8 Hour Charts – Setup on MetaTrader 4
The 8 hour time frame requires special setting up for Metatrader charts as they are not included by default. The period converter indicator is needed to set up the 8 hour charts. You can find both written instructions as well as a chart setup video to help walk you through this process.
Can I use any broker?
I DO NOT any recommend any broker over another. Do a google search for “best forex brokers” and read up on it. For manually trading the Oanda platform FXGame is outstanding with MetaTrader 4 charting (even though Oanda has 8 hour charts now). With Oanda you can trade any size account and take all of the trades on several pairs at once and only use a fraction of your margin.
The Conquer V2 Forex System Rules
You must learn to be detached in your trading. By forex trading under a demo account you will learn detachment and enforce positive behavior (following the rules) and you will build trust, in yourself and begin to believe that you can be a successful forex trader.
There is no rush, the market is always going to be there.
At that stage you focus on only doing the best possible thing you can for yourself and your trading, simply following the rules.
Practicing correct behaviors is the best way.
You will trade on a demo until you have 3 consecutive weeks of profitability. It takes three weeks to form a habit; good or bad for you. So around this time you should start to understand what you need to do.
There is no rush, the market is always going to be there.
Buy & Sell Trade Criteria
Buy: The True Trend indicator must be above the zero line (positive reading) and then the entry is above the high of that price bar.
Sell: The True Trend indicator must be below the zero line (negative reading) and then the entry is below the low of that price bar.
With regard the the reading of the True Trend you are only focused on if the reading is positive (above zero) or negative (below zero) and do not need to pay attention to the color at all.
Even if there is the slightest positive or negative reading that is enough for trade criteria.
Once Criteria is Met – Ready to Set Buy & Sell Stop Limit Orders
“We always have criteria on each pair for each signal period UNLESS there is an open trade without profit yet locked to +10 pips.”
That means that once you have an open trade on a given pair with profit locked in we do have trade criteria once again. By continuously adding new positions once profits are locked in which does not increase initial risk but does allow for further opportunity for gains.
Buy: We place our limit order 1 pip above the high of the previous candle. If the trade does not trigger by the open of the new price bar we again adjust the order to the high of the previous candle plus 1 pip.
In addition to the 1 pip above the high of the previous candle we also add in the spread for buy side trades (sell side we only subtract one pip from the low).
Sell: We place our limit order 1 pip below the low of the previous candle. If the trade does not trigger by the open of the new price bar we again adjust the order to the low of the previous candle minus 1 pip.
The entry price is adjusted with the opening of each new candle or signal period until the entry occurs. There is also criteria for
The rule of thumb to follow is as follows:
If price is below the correct entry (meaning going against us) you can enter the trade on a market order since you are now getting a better entry then you would had originally had. You set your Stops and Targets though as if you had entered correctly.
If price is above the correct entry (meaning going in our favor) you cannot enter the trade right now and chase after the trade. You can set a limit order to enter at the correct entry price.
- Once the stop loss has been moved to lock in +10 pips you can no longer seek to enter the trade according to missed entry. The reason being the trade would stop out at +10 pips before your trade was filled at the original entry price.
Targets, Stops & Exits
Once you place a pending order you do not need to change the ATR for the SL and TP until the trade triggers and enters the market, you need only adjust the entry price of the limit order every new signal period.
When a trade takes profit on Order 1 or Order 2 the current ATR at the time is used for locking in profits.
1. The initial stop is 1/3 of the Average True Range (ATR) using the 14 period ATR of the daily time.
2. Once priced has moved 1/2 ATR the stop is moved to lock in 10 pips on all orders.
3. The 1st order takes profit at 1x ATR and the stop is moved to lock in 1/2 ATR on all remaining orders (orders 2 & 3).
4. The 2nd order takes profit at 2x ATR the stop is moved to lock in 1x ATR on the remaining order (order 3).
5. The 3rd order takes profit at 4x ATR.
All new bars have re-entry criteria unless there is an open position on a pair without profit yet locked in to at least +10 pips.
If stopped out of a trade new limit orders are not placed until the beginning of the next signal period.
Risk to Reward Ratios
All risk to reward ratios are actually greater than listed below since once a trade moves 1/2 ATR into profit the stop loss is moved to lock in +10 pips eliminating all further risk on the trade.
1st order = 1:3
2nd order = 1:6
3rd order = 1:12
With this positions size you can trade an account with any $ size and still take all trades on all 6 pairs using the correct money management using Oanda as your broker. Even an account size of $100. Below Risk Per Trade which is for the below position sizing I am including Position sizing for Metatrader brokers or any broker that offers micro lots sizes.
3 trade orders = 1 complete trade
1st order = 0.4% of account balance (risk to reward is 1:3)
2nd order = 0.6% of account balance (risk to reward is 1:6)
3rd order = 0.2% of account balance (risk to reward is 1:12)
Account minimum: No minimum size when using Oanda to trade up to 6 currency pairs at a time. Expected (max) draw down in percentage: -9%
How to automatically set a trade to a percentage (%) of account balance (Oanda) How I Place Orders
In order to set the Oanda platform to automatically set each trade to % of your account click TOOLS then USER PREFERENCES then the Trading tab.
Next to “Default Order Size” type the % you would like to set it to and make sure to the right of “Default Order Size” in the pull down arrow you select %.
Now when you place an order it will automatically set the order to the % of the account balance you programmed it to.
Here is how I place my orders with Oanda which will give you better insight.
Risk Per Trade
Although the total position size for orders 1-3 is 1.2% that is NOT the risk per trade. That is the total position size of the available margin. The risk per trade varies depending on the currency pair being traded and the current market volatility (gauged through the ATR) which increases or decreases the stop loss (also take profit) levels. The risk per trade (includes orders 1-3 or the % lost for those 3 orders stopping out ranges anywhere from approximately -0.35 to -0.55%.
Advanced Money Management
For traders who have been trading the Conquer trading system for over six months which is enough time to have traded through both trending market periods as well as tight choppy consolidation periods and enough time to foster the trust and confidence needed to trade successful you can trade with a broker who offers higher leverage.
You can read the update for advanced money management here.
1. Do we carry open positions and/or waiting limit orders over the weekend?
Positions are always kept open over the weekend and until either the stop loss or take profits are reached. You do have the option of closing all of your waiting limit orders on Friday after the market close and resetting them Monday for 0:00 GMT or leaving them open (as I do). There is always the risk that a weekend market gap could jump over a stop loss order not filling it to be aware of although extremely uncommon.
2. What about the Sunday pre-market bar?
We ignore the Sunday pre-market bar and use the last bar on Friday (16 GMT) to set our 0:00 GMT orders for Monday. If you are buying and the pre-market bar’s high is higher than the Friday 16 GMT bar you use the high of the pre-market bar for you long entry orders. If you are selling and the pre-market bar’s low is lower than the Friday 16 GMT bar you use the low of the pre-market bar for you short entry orders.
3. What can I do if I am only able to trade 2 of the 3 signal periods?
I do understand it can be challenging for some to trade all three signal periods. Especially, with work and family priorities it could be tough to keep odd hours depending what time zone you are in.
As you said, “it’s incredibly difficult to create a profitable system”, and you most definitely HAVE already done it with the Conquer v2. Why dilute the effectiveness of this proven vehicle to try and make “something else” fit into a trader’s lifestyle? If you found a stone tablet that contained the absolute secret of all humankind — that would positively impact the lives all that cast eyes upon it, but it would require a person to lessen his sleep by a half-hour per night…
If you are unable to trade all 3 signal periods begin demoing trading 2 of 3 signal periods. Over a period of time this will give you the understanding of the effectiveness of the system and then you can purchase the Conquer V2 EA and have the system auto traded for you. It makes everything much easier, for three years we all manually traded the system and you can too.
4. Okay, now I understand the rules. Is there anything I can do to better understand the system itself?
The best way to come to fully understand the power of the system is to begin trading it. It is only through your own experience with the system in action that you will know its worth. This post will also help you understand how the system works and it is also important to have the correct mindset so that you will be able to trade through drawdowns that surely will occur.
Order Flow Charts for Long Trades(the 3rd order % should read 0.2% in the flow charts below)
Order Flow Charts for Short Trades
“What a fantastic system that you have developed. Trade with the trend let your profits run cut your losses. All of the ingredients of a professional system. It is no wonder that your forum is not active. This is no get rich quick system. This is the way that Pro’s trade. Not for everyone. No emphasis on indicators. Money management is everything. I laughed when I saw how people wanted to change this and change that. I can only say that I am an open book. If you teach me I will listen..”
This is system is free for personal use only and cannot be used for commercial gain by anyone, through the building of an expert advisor or selling of any type of an automated version of the system. Please do link back to pages that you are relevant to a specific part of your website that will bring others helpful information contributing to yours.
If you are a beginner to forex and just getting started before anything else understand the high risk of forex trading. Please read the risk warning found on each page. If you are truly new than take this lesson on the Snap Back trade entry before learning the forex system on this page.