.  Donchian Trading System... Average User Rating: ****........... Yours Free   If your budget is really slim, here's the ultimate freebie: Richard Donchian created a trading system many years ago that was used mainly on commodities (and stocks). However with so many people now choosing to trade the forex markets, it's worth discussing how effective this system can be trading the major currency pairs. The system itself is relatively simple. It is basically a breakout system which aims to take advantage of new 4 week highs and lows. You simply go long when a new 4 week high is made and go short (or close long positions) when a new 4 week low is made. This does sound far too simplistic but it can actually be a very profitable system. The reason why it is so effective is because these new 4 week highs or lows often mark the beginning of a new long-term trend. These trends can last several months and can yield substantial profits so they will usually cancel out many of the losing trades that turn out to be false breakouts. Click to Visit Tech Trading 101 In the forex markets this system tends to work well because currencies will often trend in the same direction for several months, so this system will capture a huge slice of these trends. Another reason it works so well is that these 4 week breakouts are observed by many other traders and financial institutions all over the world. Therefore when a breakout occurs, many traders will jump on board and add momentum to this breakout, so in many ways it essentially becomes a self-fulfilling prophecy. Plus of course in trading circles, 4 week cycles are seen to be very important and therefore if you do see a breakout in this time frame, then it is very likely to signal the start of a new trend. As with most systems, however, the Donchian System is not perfect. You will inevitably have to endure false breakouts on occasions and you do still need to have an exit strategy in place, particularly if the markets are stuck in a narrow trading range. A popular exit strategy is to close your position when the currency pair makes a new one or two week low, or the opposite for a short position. This will help to contain your losses in choppy markets and yet will be sufficient to help run some of your winning trades. Overall though the Donchian System four week breakout system can be a profitable forex trading system. The system is so easy to follow and yet it has sound logic behind it. Donchian aims to capture many of the long-term trends that occur throughout the year. So if you are patient enough to trade this relatively long-term system, then I suggest you at least check it out because it's worked for many traders over the years. If you need to update yourself a bit more than the information you received above, you may want to check out our own trading manual, Tech Trading 101, which you can download for the nominal fee of $27.00. This manual covers the basics at a nominal price and will give you a background in Trading. Click to Visit Tech Trading 101 Good Luckzzzzzzz Lee Currency Trading Mini Course Discover my Secrets !   NAME : E-Mail:   Note: I HATE spam as much as you do and will never give out your email address to any third parties for any reason. Ultimate resource to Supplement your income Are you making money other than working? I strongly recommend that you check out a Currency Trading System Back to Strategy ...

U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

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5/3/01