Which pairs do you trade?
We trade only the majors EURUSD and GBPUSD. Reasons for this decision: The major currency pairs have liquid markets and they have very narrow spreads.
First of all, we don't use risky systems like martingale or grid strategies. To reduce risks: There are usually no open trades over the weekend. If a trade don't work for us, than we close the trade without ifs or buts (on average a holding time between 4 and 5 hours).
Trading strategies: Countertrend trading with a basket system and a volatility breakout system
SystemONE: Our "countertrend" system opens several positions to earn the pips. Our forward tests had shown, that this is the best way to trade the retracements. But the important point is, that is every positions secure with a SL.
Example for SystemONE:
Trades open on 07.10.2016 and closed with +116.5 Pips profit. "The big trend is our friend".
SystemTWO: Our second system is a volatility breakout system, with a better risk ratio than the countertrend system. Here we are also adding positions but only if the market conditions are good for the system. If the market not works for us, we try to close these positions with a small loss. There are great market conditions for this system for example the "Fed Interest Rate Decisions". If there a big surprise on one of these events, we earn serveral of hundred pips in one day. But these days are very rar. We appreciate there are on average only one or two of these "surprise" days per year.
Example for SystemTWO:
3 trades opened 06.10.2016 and closed on 07.10.2016 after 10 hours holding time.
Stopp Loss 80 Pips/Take Profit 400 Pips
Hit Take Profit 3 x +400 = +1200 Pips!
Do you limited your losses?
Every trade is secure with a visible stop loss and a visible TP. The real TPs and SLs depends from the market conditions and volatility.
Lets have a look in our history (myfxbook):
Maximum drawdown in percent and pips?
We accepted drawdowns up to 40% of our balance.
An example for a drawdown (15.07.2016 with 872 pips):
To recover this drawdown we didn't increase the risk and continue to trade our fixed lot system. After the drawdown NEXTGEN TRADING SYSTEM needed 20 days to a new equity high. That is the reason for our recommendation: There is NO trading strategy all over the world, which does not produce sometimes some negative trades. If this happens please be patient and trust in us - We are strongly recommend to all subscriber's and new comers to follow our account at least 3 month and include all trades.
Risk and money management for NEXTGEN: What lot size do you trade and what is your recommendation?
NEXTGEN TRADING SYSTEM trades 0.12 Lot per 7500€ currently.
Feel free to use the Risk/Money Management section by simpletrader:
Risk Multipler by balance or equity.
We recommend 2 different risk multipler:
For trading beginners (and a smaller drawdown):
For advanced forex traders:
This recommendation works if you only use NEXTGEN. If you use other signals or systems, please reduce the trade volume in general and use risk multipler by . Safe your trading amount, is the most important part to stay longterm profitabel and earn a lot of pips.
In conclusion: If you want to have a smaller drawdown, adjust your trading size.
How many open positions are possible at the same time?
If our two trading systems work on the same time, it is possible to have up to 10 open positions. Every position is secure with a SL and a TP.
Please have a look on the following screenshot:
Here are trading our two trading systems, our breakout system with take profit 400 pips needs time to earn the pips. It is not possible to earn several 100 pips in 10 minutes. During the waiting time, we earn pips with our secound system.
Do you trade on important news?
It depends from the news. We like to trade events like the "Fed Interest Rate Decisions", because sometimes there are perfect market conditions to trade the breakouts. On the other hand we don't like to trade the "Non Farm Payrolls". Because the NFPs are not easy to analyse and we also don't want to have open position during the weekend. So you can be relaxed on every first friday of every month.
There are forward tests?
Yes, here are the results of our trading systems:
EURUSD (The Cashcow):
Year 2016 +3461.6 Pips (added on June 2016 to NEXTGEN TRADING SYSTEM) about the small volatility there are not a lot trades the last months. But there are no doubt, volatility times will come and then we are on board.
We trade this system with the double lot size than the other systems, because our good longterm experience with this system (2 x 0.12lot for every trade).
Year 2015 +2823.0 Pips
Year 2014 +1261.2 Pips
Year 2013 +1569.8 Pips
Year 2012 +1972.7 Pips
Year 2011 +3097.7 Pips
Year 2016 +1627.9 Pips
Year 2016 +3595.7 Pips (the big pips on 24. June we missed, because we turned off the system on NEXTGEN to minimize the risks (Britain has voted to exit the European Union [Brexit]))
Year 2015 +3182.6 Pips (Two screenshots because we changed the trading account)
Year 2014 + 423 Pips
Year 2013 + 712.1 Pips (There are only 5 mounths of trading history)