This is the third installment of our trader interview series. Currensee Trade Leader JLFX Network (Ticker: JOLSU.G) uses a technical pullback strategy on overbought or oversold positions. His entry is based on Pivot Points, Moving Averages, Bollinger Bands, Relative Strength Index and Stochastic indicators. Exit is generally based on 3 to 20 pips of profit depending on market conditions and does not use lagging technical indicators. His stop loss is usually set at 2 to 5% total equity loss for all open positions as to prevent ‘fix stop-loss hunting.’ JFLX’s profit target for account JOLSU.G is a conservative strategy with 5 to 20 trades per month, an average growth of 2 to 4% per month and a total return of investment of 24 to 48% per annum.
The first quarter of 2012 will be as volatile as the fourth quarter of 2011 mostly due to the continuation of the Europe crisis and yen strength. The market will gradually stabilize when most of the global issues have been solved and rectified. Sometimes the best strategy is to not trade during high market volatility and uncertainty to avoid unnecessary losses.
What types of Forex strategies will continue to prevail in 2012?
Different traders will have there own strategy. A counter trend strategy, where a trader enters a position when the market has been extremely overbought or oversold based on technical indicators is my best strategy. Predicting an upward or downward trend is always difficult.
What would a breakup of the euro mean for your strategy?
It may be good for other currencies because the euro has too much weightage on the dollar. Movement of other major pairs will be more predictable and less aggressive without the euro.
Next week: Adantia LLC (Ticker: ROCED.A)
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.