Currency trading system: a simple and effective currency strategy that anyone can use

One of the most frequently asked questions I get from new FX University students is “Do you have a forex trading system that I can use that doesn’t require me to spend a lot of time in front of my computer?”

Now, generally as soon as I receive this question, I immediately question the reason for the individual. I mean, let’s face it, most people want something without having to work to get it and operate in the Forex market, it is certainly not a place for someone who is not willing to ride and get dirty. On the other hand, the reality is that most Forex merchants have full-time jobs, families and many other responsibilities, so becoming a professional Forex merchant simply is not an option.

Given the request, I spent some time investigating my preversale toolbox and it occurred to me a simple and effective Forex trading strategy that anyone can use. The strategy is called “The Weekend Warrior”.

Now, before reaching the strategy, I would like to take a minute and explain a moving average, since it is the basis of the strategy. If you’re already familiar with a moving average, feel free to skip to “This is how The Weekend Warrior works”:

One of the most used technical indicators by Forex traders is the moving average. The moving average is an indicator showing the average value of a value that is analyzed for a given period of time.

There are many mathematical variations of the MA specifically applied to Forex trade; However, everyone attempts to achieve practically the same purpose: predict patterns in currency movements that will allow Forex operators to enter and leave a position at the most cost-effective time of a change of trend.

Traditionally, a shorter (faster) MA is plotted on a chart alongside a longer (slower) MA. The crossover of the faster MA with the slowest MA from above would be considered a bearish movement or a possible downward trend. On the contrary, the crossing of the slowest moving average from the bottom back over a slower moving average would be a sign of an upward movement or a possible upward trend.

This is how “The Weekend Warrior” works:

In a daily chart, insert a moving average (MA) 10 and a moving average (MA) 40.

Long position: Every Friday before closing, buy any currency in a 9-day break, if the MA10 is above the MA40. Hold the position over the weekend and on Monday morning close the position for a profit.

Short position: All Fridays before closing, sell in short, any currency in a ten-day break, if the MA10 is below the MA40. Hold the position over the weekend and on Monday morning close the position for a profit.

Leverage: Use your existing money management strategy or recommend less than 1% capital.

Why does it work? For one thing, because other people aren’t doing it. And two, you are capitalizing on a predefined gap that occurs between the close and open of the forex market.

Now go to mark your calendar for next Friday and try it. The results will speak for themselves, and who knows, TGIF could take on a whole new meaning for you.