Presents. Trade Predator Published by Old Tree Publishing CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA

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1 Presents Trade Predator Trade Predator Published by Old Tree Publishing CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA Copyright 2013 by Old Tree Publishing CC, KZN, ZA Reproduction or translation of any part of this work by any means, electronic or mechanical, including photocopying, beyond that permitted by the copyright law, without permission of the publisher, is unlawful. Trademarks: Old Tree Publishing CC, Trade Predator

2 RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any financial market. The contents of this material are for general information and educational purposes only (contents shall also mean the website or any website the content is hosted on, and any correspondence or newsletters or postings related to such website). Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using our product, ideas and techniques. We do not purport this to be a get rich scheme. Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed in this report or anywhere on Past performance is not indicative of future results. By purchasing any content, subscribing to our mailing list or using the website or contents of the website or materials provided herewith, you will be deemed to have accepted these terms and conditions in full as appear also on our site, as do our full earnings disclaimer and privacy policy and CFTC disclaimer and rule 4.41 to be read herewith. So too, all the materials contained within this course, including this manual, whether they appear on our domain(s) or are in physical form, are protected by copyright. "Warning: The unauthorized reproduction or distribution of this copyrighted work is illegal. Criminal copyright infringement, including infringement without monetary gain, is investigated by the authorities and is punishable with imprisonment and a fine." We reserve all our rights in this regard. Old Tree Publishing CC, in association with the website, content, and its representatives do not and cannot give investment advice or invite customers or readers to engage in investments through this course or any part of it. The information provided in this content is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program and method. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are material points that can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results. We reserve the right to change these terms and conditions without notice. You can check for updates to this disclaimer at any time by visiting Governing law: this policy and the use of any of this material and or course, provided in any form, and any content on the website are governed by the laws of the Republic of South Africa. Further details on this are found under the Terms and Conditions on our site. Please ensure you read and agree with all Terms and Conditions as set out on our site before using any of the materials. Your use and reliance on the materials is based on your acceptance of such Terms and Conditions and policies as appear on the site. 1

3 TABLE OF CONTENTS RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT... 1 INTRODUCTION... 3 SETTING UP YOUR CHARTS... 4 PUTTING IT ALL TOGETHER... 8 BUY TRADE RULES SELL TRADE RULES BUY TRADE EXAMPLE SELL TRADE EXAMPLE CONCLUSION

4 INTRODUCTION The Trade Predator trading system is a simple yet powerful system that has performed well during Demo and the Live Rounds of the recent Surefire Trading Challenge. It is a simple system that would be ideal for new traders that are still getting up to speed with trading the Forex market but can also be very powerful in the hands of more advanced traders. The system relies on two key custom indicators that many traders are unaware of. The system has also been designed to work on an intraday basis but it can be traded on all timeframes and all available currency pairs. The Trade Predator system is very easy to apply once you are familiar with the rules. It uses a 1:1 to 1:1.5 risk/reward ratio which means you could potentially gain as much as you risk or more on each trade that you enter. The indicators that are part of this system are very easy to understand and interpret making it a great system for new traders. The Trade Predator system can be considered as a conservative strategy which means that the risks are relatively low. This is a trend following strategy and the entire strategy revolves around ensuring that traders remain on the right side of the trend at all times. As you know, the trend is your friend and if you can follow the rules of this trading system you can be sure that you will remain on the right side of trade for the majority of your trading endeavours. 3

5 SETTING UP YOUR CHARTS This system uses two custom indicators that are to be downloaded to the MetaTrader 4 trading platform which is available through most brokers on the web. The primary indicator is the Trade Predator indicator and the second indicator used in this system is the Trade Predator Histogram (TPH) indicator. We ll go into greater detail about how these indicators are used as part of the trading system but before we can get to that, we will need to setup our charts by applying each of the indicators and configuring the settings. Setting up your charts to trade this system is very easy. Once you are done setting up your charts, this is what your charts should look like: As you can see on the chart image above, the Trade Predator system relies on an uncluttered chart setup. Once you are familiar with the Buy and Sell entry rules, identifying trade setups becomes very simple. Before we get to the rules for entering trades, we will need to prepare our charts so let us now take a closer look at how to accomplish this. 4

6 The first step is to install the Trade Predator indicators and chart template. Please download the Trade Predator files from the member s area. Open the zip archive then double click on the TradePredator.exe file to start the installation wizard On the image above you can see the installation wizard which will install the indicators onto your MetaTrader4 platform, and save the template into your templates folder. Once done, you may apply the chart template on your chart. Just open your MT4 platform, click on the Templates icon and select the TradePredator template. 5

7 The Trade Predator indicator helps us to identify the overall trend and the direction in which we should be looking to trade. When the Trade Predator produces a Red arrow on the price chart, it is a good indication that the market is starting to move downwards. And in the same way, when the Trade Predator produces a Blue arrow on the price chart, it is a good indication that the market is starting to move upwards. 6

8 The Trade Predator Histogram indicator helps us to confirm the overall trend and identify an area where we should be looking to enter the market with a trade. There are 3 horizontal lines that need to be aligned to produce a valid signal or confirmation of the trend direction. As you can see on the image above, when the 3 rows of histogram bars on the Trade Predator Histogram are Red, we have a valid Sell signal. When the 3 rows of histogram bars are Blue, we have a valid Buy signal. 7

9 PUTTING IT ALL TOGETHER Now that you know how to setup your charts we can take a closer look at how the different components of this system work together to produce trade signals. This system works on all currency pairs and all time frames. This system is ideal for day trading and has been found to work best on the 1 Hour time frame. The Trade Predator indicator is the core of the system. This indicator determines the direction in which we will trade. The Trade Predator will notify us when there is potential for a new trend by inserting either a Red or Blue arrow on your chart. On the images above, you can see that when the market is considered to be in a downtrend the Trade Predator will produce a Red arrow pointing downwards. When the market is considered to be an in uptrend, the Trade Predator will produce a Blue arrow pointing upwards. As you can see, the Trade Predator indicator helps us determine the overall trend direction. Now let s take a look at how the Trade Predator Histogram serves to confirm the signal. On the images on the following page you can see an example of how the Trade Predator Histogram indicator helps confirm the trend direction we have determined using the Trade Predator indicator. 8

10 If the Trade Predator produces a Red arrow and the Trade Predator Histogram bars all turn Red we have confirmation that the market is heading downwards. On the other hand, if the Trade Predator produces a Blue arrow and the Trade Predator Histogram bars all turn Blue we have confirmation that the market is heading upwards. 9

11 BUY TRADE RULES Now that you have a basic idea of how the Trade Predator system works, let s take a closer look at the rules for entering Buy and Sell trades. These are the rules for entering a Buy trade: 1. Wait for the Trade Predator to produce a Blue up facing arrow. 2. Wait for the 3 Trade Predator Histogram bars to turn Blue. 3. Enter a Buy trade at the open of the next candle. 4. Insert your Stop Loss below the most recent Swing Low. 5. Set your Take Profit the same number of pips away from your entry price as your Stop Loss, i.e. a 1:1 or greater Risk/Reward Ratio. On the image above you can see an example of a Buy trade as per the rules of entry. As you can see, the Trade Predator produced a Blue upward facing arrow. The 3 Trade Predator Histogram bars turn Blue and at the open of the next candle I opened a Buy trade order. I then placed my Stop Loss below the most recent Swing Low around the 50 pips level. My Take Profit was set at the same number of pips as my Stop Loss. As you can see, price had eventually moved in my favour and taken out my Take Profit level. 10

12 SELL TRADE RULES Now that you have a basic idea of how the Buy trade rules work, let s take a closer look at the rules for entering Sell trades. These are the rules for entering a Sell trade: 1. Wait for the Trade Predator to produce a Red down facing arrow. 2. Wait for the 3 Trade Predator Histogram bars to turn Red. 3. Enter a Sell trade at the open of the next candle. 4. Insert your Stop Loss above the most recent Swing High. 5. Set your Take Profit the same number of pips away from your entry price as your Stop Loss, i.e. a 1:1 or greater Risk/Reward Ratio. On the image above you can see an example of a Sell trade as per the rules of entry. As you can see, the Trade Predator produced a Red downward facing arrow. The 3 Trade Predator Histogram bars turn Red and at the open of the next candle I opened a Sell trade order. At the open of the next candle I opened a Sell trade order and placed my stop loss above the most recent Swing High around the 22 pips level. My Take Profit was set at the same number of pips as my Stop Loss. Within the space of about 3 candles price had moved in my favour and taken out my Take Profit level. 11

13 BUY TRADE EXAMPLE Here is another example of a Buy trade using the Trade Predator system: On the image above you can see an example of a Buy trade as per the rules of entry. As you can see, the Trade Predator produced a Blue upward facing arrow. The 3 Trade Predator Histogram bars turn Blue and at the open of the next candle I opened a Buy trade order. I placed my stop loss below the most recent Swing Low around the 20 pips level. My Take Profit was set at the same number of pips as my Stop Loss. Price moved in my favour but it took a bit of time before price made its way up to my Take Profit level which was set at 20 pips away from the entry level. 12

14 SELL TRADE EXAMPLE Here is another example of a Sell trade using the Trade Predator system: On the image above you can see an example of a Sell trade as per the rules of entry. As you can see, the Trade Predator produced a Red downward facing arrow. The 3 Trade Predator Histogram bars turn Red and at the open of the next candle I opened a Sell trade order. I placed my stop loss above the most recent Swing High around the 22 pips level and my Take Profit was set at the same number of pips as my Stop Loss. Price moved in my favour immediately but it took a bit of time before price made its way down to my Take Profit level which was set just over 22 pips away from the entry level. 13

15 CONCLUSION By now I am sure that you will agree that the Trade Predator trading system is a simple yet powerful system. Remember, this system has performed very well during Demo and the Live Rounds of the recent Surefire Trading Challenge so I am sure that this system will work well for you when applied in the correct way. Take your time and practice using this system and you will see that this strategy can be very powerful in the hands of responsible traders. By trading this system you will always be on the right side of the trend and this is a vital part of being a profitable trader. Stick to the rules and I am sure that you will be very happy with the results. All the best! 14