Trading Foreign Exchange

The foreign exchange market is the largest and most liquid in the world. It also attracts the most number of traders globally, and for good reason; it takes little capital to open an account, the leverage available is significant, and it is unregulated. A vast number of new traders are lured by the promises of easy income and a new means to financial independence. But the reality is that most new traders fail because they lack financial market knowledge and they have unrealistic expectations.

To succeed in trading, one needs to be sufficiently motivated and find a committed mentor to guide them. In the Trading Foreign Exchange course, we have merged key components of our advanced level training in macro-fundamentals and technical analysis with a trader chat group that will support you, even after the course is complete.

More specifically, you will learn how to interpret global monetary policy and make confident long-term trades. You will learn to distinguish market noise from legitimate trends and position yourself for high probability swings. You will learn to develop a system that suits your temperament, and practice making trades which are rooted in optimal probability parameters. In brief, you will acquire everything you need to successfully trade forex, and you will gain access to a team of professional traders who will help you on your journey via OFA’s trader chat group.

Key topics covered in this course:

  • Starting with a proven risk management plan, you will begin by practising risk management, not just learning theory. You will learn about position sizing, scaling into positions, portfolio correlations, and develop a system that focuses on intermediate and longer-term swings.
  • Next, you will learn the macro-fundamentals of Forex and how banks position themselves for macro events. Understanding how economic data and geopolitical events affect global markets is the foundation of forex trading.
  • Next, you will learn how to be selective by taking trades which have outstanding technical set-ups. We go beyond basic technical analysis (which usually do not work) to
    offer you the exclusive strategies of one of the world’s premier authorities on the subject, Shaun Downey.
  • Finally, we follow-up with interactive training sessions and mentoring which help complete your training. The learning never stops of course, and all graduates gain access to our chat platform where they can exchange ideas and learn from professional traders.

Introduction to Forex Trading

  • Best news and research sources, authors, chat rooms and platforms
  • Characteristics of major, minor, and exotic pairs: pip value, spreads
  • Examining liquidity, volume, transparency and the major players
  • How and why most retail traders lose trading forex

Risk Management and System Development

  • Characteristics of a successful trading method
  • Refining a method for your risk profile and schedule
  • Optimal parameters: a system based on probability alone
  • Risk and understanding leverage
  • Optimal stops and profit targets, position sizing, scaling

Central Banks and Monetary Policy

  • Monetary policy applied to foreign exchange markets and yields
  • Economic indicators and their effect on forex pairs
  • Interpreting Central Bank Language (Fedspeak)

Economic Data and Forex Correlations

  • Actual vs. expected: standard deviations and variance
  • Key Indicators and how their relevance changes
  • Geopolitical events and effects on currencies
  • Correlations and portfolio design

Introduction to Technical Analysis I: essential indicators

  • Use of Moving Averages to understand strength of trend.
  • Drummond Geometry Red Eye Average. The Tightest risk management for day trading
  • Moving Linear Regression as a trend tracker and the quantifying of extremes.
  • Ichimokukinkouyou. Its correct application for Japanese markets
  • The advantage of Using Heiken–Ashi charts
  • Bollinger Bands: The two-stepped exit pattern for any timeframe or market.
  • Bollinger Bands: How the second exit can indicate trend reversals.
  • Slow Stochastics: Misconceptions and Myths, Advanced use to track trend beginnings and true measurements of overbought and oversold to mimic the MACD

Trend Lines, Fibonacci Candlesticks

  • The rules for drawing trend lines
  • What to look for at Fibonacci retracements (divergence, volume, patterns)
  • Doji’s. Why it is the most important candlestick pattern and their connection between momentum, reversal and continuation of trend

Exit strategies and the Directional Movement Index

  • Why sound exits to trend following trades need to be good enough as possible counter trend trades
  • Parabolic: Why the original concept is flawed and default settings are incorrect. The use of Parabolic and Moving Averages in combination
  • Redefining data so you can track an intraday trend and stay with it
  • Measuring difference and convergence between DMI values to create intraday exits
  • Identifying multiple timeframe extremes

The Use of Swing Patterns (Peak) as a Trailing Stop

  • The correct pattern to use
  • Why the gap between price and Swing patterns is important
  • How many times can a Swing pattern extend for day trading
  • Understanding the distance between changes in Swing pattern values
  • Identifying trend beginnings and exhaustions with Swing pattern length and Crossovers
  • Using Hi Lo Count to understand when corrections are due in Swing Patterns

Classic Patterns

  • Wedges, Flags, Triangles, Head and Shoulders
  • Why they are more useful when they don’t work
  • How patterns mutat

Putting it all Together (Real time analysis)

  • 6 hours of live market analysis
  • Integrating macro fundamentals with technical trade set-ups, case studies

$750.00 Add to cart

Course Format

This course will be held online in small group classes (maximum 6 students). There will be 2 to 3 instructors in this course, each a specialist in their field. This ensures students receive different perspectives and ways of analysing the market. This is
critical to developing one’s own independent thinking and eventual mastery of the material. To further facilitate learning, students are advised to keep a journal of their studies and trading activity. Students may access the course modules online, any time, and anywhere, through OFA’s learning portal.