Using a discretionary approach, trades are entered both manually and automatically when a combination of historically proven technical indicators being met. The goal of this strategy is to make conservative trades with the aim of providing the investor with a monthly profit of between 10% – 40%.
A minimum of three different technical indicators are used in most cases to determine market entry levels. Strict Money Management rules are used while Stealth Stop-Loss and Limits are automatically set and adjusted during trading using ATR indicator settings.
Risk / Reward ratio (R/R) (above 10):
A 1:2 risk reward ratio means that your potential reward is two times bigger than your risk. Professional traders recommend a 1:3 ratio for obvious reasons. Faida Forex aims to deliver a R/R of 1:10
Profit Factor (above 2):
The Profit Factor is a quality index of trading. It assesses as a figure the relationship between the risk taken and the results.
If a trading is good, the profit factor will be greater than 2. Faida Forex aims to deliver a Profit Factor of above 2. Below 2, the trading needs to be reviewed, even if you generated a profit. In effect, a Profit Factor less than 2 indicates that the risks taken to increase your capital are too high. In the medium term, a trader with a profit factor less than 2 is statistically damned, as the risks are too high to generate a profit. This therefore means that losses will at some point take over and you will not have the opportunity to recover. With a profit factor greater than 2, you are safe from extinction.
Profit Factor = (sum of profits) / (sum of losses)
Draw Down (DD) (max 40%):
A maximum drawdown (MDD) is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum Drawdown (MDD) is an indicator of downside risk over a specified time period.
Trading profiles: Normal / Conservative / Aggressive
Target Risk per trade: < 3%
Target Account max draw down: < 40%
Target monthly ROI: 10 – 40%
Target Profit Factor: > 2.3
Target Risk / Reward ratio (R/R): 10
AUD/CAD, AUD/CHF, AUD/NZD, AUD/USD, CAD/CHF, EUR/CHF, EUR/GBP, NZD/CAD, NZD/CHF, NZD/USD. USD$ pegged pairs are “mostly” avoided.
Trade Timeframes / Charts: 1 Day, 1 Week
Avg trade length: Two (2) days
Trade frequency: approximately between 5 – 20 trades per account per week depending on market opportunities
System type: Automatic / Manual trading system
1. We use automatic Stealth Stop Loss (SL) for each order and we control the max loss per trade under 3%.
Actual for most order the SL is under 0.5%-1%.
2. We control the total max account drawdown under 40%.
Normal Accounts: max dd < 20% and 10-20% profit per month
Conservative Accounts: max dd < 30% and 20-30% profit per month
Aggressive Accounts: max dd < 40% and 30-40% profit per month
In volatile market conditions, losses may still occur but the account drawdown will not exceeds 40%. Positions are kept open until such time as either a protective stop order is triggered guaranteeing a safe predefined loss, or a trailing stop/limit order is triggered thus locking in profits.
NB: It should be noted that in extremely volatile market conditions stop/limit orders may not be triggered. This is the nature and risk/reward of any leverage trading. View our disclaimer.
Strict money management methods are incorporated in order to preserve capital and produce the maximum return for investors.