hello everyone,
if you look at the monthly chart USD/JPY you can see that the highs in that pair is in economic boom times and when share markets are going down the drain, this pair will go down as well. Investors will buy a "safe" currency like the yen in these uncertain times.
May 2007 was about the top of the economic boom and from then on it was downhill until October 2011.
Suppose you sell during this period when the trend down reverses 50% from the last swing low, you would have sold in August 2008 at 110.00, February 2009 at 98.00 (although high of 101 in April), December 2009 at 93.00 (went higher in May 2010 to 95.00), April 2011 at 85.00.
Suppose you have a lazy 100k laying around; leverage 500:1 = maximum investment is 50 million;
In August 2008 at the first 50% retrace at 110.00; I sell 25 lots @ 110.00
In February 2009 2nd 50% retrace at 98.00: capital has grown to about 400k; now I sell 75 lots @ 98.00
In December 2009 3rd 50% retrace at 93.00: capital has grown to about
960k; now I sell 140 lots @ 93.00
In April 2011 4th 50% retrace at 85.00: capital has grown to about 3.300k; now I sell 580 lots @ 85.00
Price went as low as 76.00 and I would close out the position if a monthly bar closes above 85.00.
heaps of profit with 4 trades in over 3 years.
October 2011 - now: US start recovery slowly.........time to get in soon for the run back up???
if you look at the monthly chart USD/JPY you can see that the highs in that pair is in economic boom times and when share markets are going down the drain, this pair will go down as well. Investors will buy a "safe" currency like the yen in these uncertain times.
May 2007 was about the top of the economic boom and from then on it was downhill until October 2011.
Suppose you sell during this period when the trend down reverses 50% from the last swing low, you would have sold in August 2008 at 110.00, February 2009 at 98.00 (although high of 101 in April), December 2009 at 93.00 (went higher in May 2010 to 95.00), April 2011 at 85.00.
Suppose you have a lazy 100k laying around; leverage 500:1 = maximum investment is 50 million;
In August 2008 at the first 50% retrace at 110.00; I sell 25 lots @ 110.00
In February 2009 2nd 50% retrace at 98.00: capital has grown to about 400k; now I sell 75 lots @ 98.00
In December 2009 3rd 50% retrace at 93.00: capital has grown to about
960k; now I sell 140 lots @ 93.00
In April 2011 4th 50% retrace at 85.00: capital has grown to about 3.300k; now I sell 580 lots @ 85.00
Price went as low as 76.00 and I would close out the position if a monthly bar closes above 85.00.
heaps of profit with 4 trades in over 3 years.
October 2011 - now: US start recovery slowly.........time to get in soon for the run back up???