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THE SIMPLEST

FOREX PIPS

Disclaimer

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Commodity Futures Trading Commission Futuresand Options trading has large potential rewards,but also large potential risks. You must be awareof the risks and be willing to accept them in orderto invest in the futures and options markets. Don'ttrade with money you can't afford to lose. This is

neither a solicitation nor an offer to Buy/Sellfutures or options. No representation is beingmade that any account will or is likely to achieveprofits or losses similar to those discussed on thisweb site. The past performance of any tradingsoftware or methodology is not necessarilyindicative of future results.


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CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATEDPERFORMANCE RESULTS HAVE CERTAINLIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE

RECORD, SIMULATED RESULTS DO NOTREPRESENT ACTUAL TRADING. ALSO, SINCE THETRADES HAVE NOT BEEN EXECUTED, THERESULTS MAY HAVE UNDER-OR-OVERCOMPENSATED FOR THE IMPACT, IF ANY, OFCERTAIN MARKET FACTORS, SUCH AS LACK OFLIQUIDITY. SIMULATED TRADING PROGRAMS INGENERAL ARE ALSO SUBJECT TO THE FACT THAT

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No representation is being made that any account

will or is likely to achieve profits or losses similarto those shown. In fact, there are frequently sharpdifferences between hypothetical performanceresults and the actual results subsequentlyachieved by any particular trading program.Hypothetical trading does not involve financial risk,and no hypothetical trading record can completelyaccount for the impact of financial risk in actualtrading.

All information on this website or any e-bookpurchased from this website is for educationalpurposes only and is not intended to providefinancial advice. Any statements about profits orincome, expressed or implied, do not represent aguarantee. Your actual trading may result in losses


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as no trading software is guaranteed. You acceptfull responsibilities for your actions, trades, profitor loss, and agree to hold Forex Mercenary and

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Copyright 2010 www.simplestforexpips.com

Dear Members

Let me introduce you to the The Worlds Simplestforex strategy - The Simplest Forex Pips.This is a simple system that I have been using foryears. You dont need to be a Forex guru to usethis system.

There is ALWAYS an opportunity to make somepips whenever you have time, keep reading and I


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will explain whyI recommend that you open a demo account atgcitrading.com or alpari.co.uk and try it You will be

very impressed! Make sure to open history chartsto see how profitable the system can be.

Profit: 10-100 pips per trade. 5-20 trades a day.

You can use this strategy anytime you want, thereare always very strong signals ( I will explain

below..) The system will work on many Forex pairsand many major Stocks. The rules to this systemare simple, and executing and managing tradeswill take no more than five minutes of your time.The only tricky part is bringing your knowledgebase up to speed with the strategy.

Let me introduce to you the three simple steps

below. Then Ill take you through some workedexamples in order to illustrate just how easy thissystem is.This trading system involves 3 simple steps.

1. Identify a current trend2. Identify your entry signal3. Place your trade

Manage your trade later..

The system

1. Determinate a current trend, if there is no trend(sideways trend ) no trades!


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2. Wait for the last candle to close. If the lastcandle closes inside the previous candleimmediately get ready for a trade.

Sample for down trend:

Sample for up trend:

3. Place your order as soon as you get your entrysignal (explained below)

4. Place your stop loss order.

5. Close your trade with profit.


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Below I will show you what to do step by step.

The system works on 15 minutes, 30 minutes 1hour, 4 hour and daily time periods. This is oneof the most simple but very profitable tradingsystems available today.

Setup step by step:

-Identify the current trend.(For example: use 200SMA or 200EMA toidentify the current trend. If the price is belowthe EMA the current trend is down. If the priceis above the EMA the current trend is up oropposite)

-Open a chart ( any time frame ) and wait for

the last candle to form. If there is a combinationof two candles matching the picture below - it isyour trade opportunity.

Lets call them as follow: 1 start candle, 2 signalcandle, 3 entry candle. (IMPORTANT: The 2nd signal candle must close inside the 1st start

candle)


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Looking at your chart you will see a lot of 2 candlecombinations like the one on the picture above andall of them are great trading opportunities! Usuallyeach trade brings you 10-100 pips profit:

Trades


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LONG TRADE SETUP: We BUY at the breakout of

the high of the 2nd

(signal) candle + 1 pip if thecurrent trend is up and the signal candle (2ndcandle) is going up.

The opposite rule for the SHORT trade.


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REMARKS: Start candle and signal candle couldbe different candles for example the startcandle could be an uptrend candle (blue) andthe signal candle could be a downtrendcandle(red). It is not necessary that both candleclose in the same direction (the same colour

candles).- Example:


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The signal is still valid! (see sample trades

below)

It is very important to follow the major rule-Place trades only follow a current trend:

- If the breakout is down and the current trend

is down too - place a trade.

- If the breakout is up and the current trend isup too - place a trade.

- If the breakout is up but the current trend isdown NO TRADE!

Long trade sample chart:


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SHORT TRADE SETUP We SELL at the breakoutof the low of the 2nd (signal) candle 1 pip if thecurrent trend is down and the signal candle (the2nd candle) is going down.

Short trades samples chart:


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There is ALWAYS an opportunity to make somepips whenever you have time: All you have to dois to open few pairs charts on different timeframes and you will always find your 2 candleswith inside candle forming combinations on

some pairs! This is guaranteed!

Actual Trade Sample May 20th, 2010130 pips profit!


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Actual Trade Sample May 20th, 2010


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Take profit (Exit)

Option I

Your profit target is 10-30 pips. Use a trailingstop order to maximize your profit.

Option II (Advanced exit)

Find on your chart the first strong resistancelevel and exit near that point.

See advanced exit setup sample on the chart.


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below:

Stop loss

Stop loss needs to be placed above or below thesecond (signal) candle: If you BUY place astop 1 pip below the 2nd (signal) candle, if youSELL place a stop 1 pip above the 2nd (signal)

candle.


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When not to trade

- when a breakout is against the current trend

- when the 3rd (entry) candle closes inside the2nd (signal) candle.

Time framesM15, M30, 1H, 4H, 1DThe higher time frame that you trade the higherthe probability is that you will make a profit.

I have good results on 1H charts.


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Pairs and stocks

This system will work on all major pairs and

Stocks. Try EUR/USD GBP/JPY..

Money management

Do not trade for more than 3-5% of your deposit(per trade)

Stock trading

Exactly the same method can be usedfor Stock trading. It works in the same way andwith the same rules.

Thank you!

Best regards

Karl Dittmann

www.simplestforexpips.com


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Forex brokers that you may use:

CMS Forex www.cms-forex.com

ACM Advanced Currency Markets

Fairlot Financial Group

Forex Capital Markets

GAIN Capital

GCI Financial, Ltd.

Global Forex

IFX Markets Limited

London Capital

Meridian Forex Pty Limited

MG Financial Group

SaxoBank

Tricom