The forex market is rigged

How do I trade bank manipulation?

Although the commercial thread caused such a stir, I decided to post the method here in the forum. I ask everyone who posts here to be factual.

In the following, I am describing the entire past week including Friday, October 5th, 2012 in relation to my view of the manipulation by the banks. I also describe all the trades I have made. The trades are documented by the account history in the screenshot. There is also a live screenshot during a trade. My EAs leave arrows and dashed lines on the chart for every trade, which can also be seen in the screenshots.

The banks tend to push the price in 3 main movements (mostly spread over 3 days) in one direction and then in 3 main movements (usually spread over 3 days) in the other direction. With regard to the trend that can be seen in the daily chart, they do this both trend-following and countertrend. Since we carry out intraday trades and we follow in the footsteps of the banks, we also don't care whether we trade with the daily chart trend or against the daily chart trend.

A major move is price move that has brought in at least 70-80 pips. This is the profit release phase of the banks where they made their money. After that, it usually goes into the narrow range during the Asian session. There are also days when two main movements are made. On these days there is a capital V or an inverted V on the 15 min chart. As a rule, there is only 1 main movement.

Since banks tend to push the price up or down in 3 main moves, we trade with that

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Last Friday (October 5th, 2012) the EURUSD reached the third main move to the long side (left Level3). Then there was a reversal formation that initiated Level 1. On Mondays at the end of the London session, Level 1 was reached. You can see the long retracement at the lowest point on Monday (profit-taking by the banks) and then the sideways movement into the Asian session. During the Asian session, the banks are again busy collecting short positions.

At around 2:00 a.m. GMT on Tuesday, banks quickly pushed the price out of the Asian range. My

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Because the downward manipulation was carried out on Wednesday, I corrected my assumption that Tuesday only contained level 2 and had defined the following bank levels as the most likely for me now:


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Over time you will become more experienced with level detection and not only need to make level 2 and level 3 trades. Then you can also see the manipulation that takes place AT THE BEGINNING OF LEVEL 1 (you have been busy counting the levels beforehand and you know when you are in level 3). I therefore also do level 1 trades, which I then hold for up to 3 days. These trades are done manually by me (but

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The screenshot shows the account history of all trades that I describe in this post. It was an extremely good week because the banks were sticking to their normal rhythm and it was easy to see what they were up to. This week I had 3 winning trades, 1 breakeven trade and no losing trade. It would be nice if it were always like this :-) This week ended with a 9,5R so 19% profit.

5.10.12 Level1 Short -> 4.5 R
9.10.12 Level2 Short -> 3 rows
10.10.12 Level1 Long -> 2 R
12.10.12 Level2 Long -> 0 R

Next comes the level 1 long trade that I entered into on Wednesday morning. The two long candles (railroad pattern, almost an engulfing pattern -> blue arrow) gave me a good feeling at the entry.


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I survived the stop hunt on Thursday below Wednesday's low by almost 2 pips. As I said with the level 1 trade, my HelferEA sets the stop 12 pips below the last extreme. The following is the screenshot during the trade that I sent to a colleague. The green thick line below the Wednesday low is the stop. My broker does not see this stop because the

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I held this Level 1 long trade until Friday. I sold 1/3 of the position at 1.2964 (3rd line in Account History), 2/3 of the position at 1.2945 (6th line in Account History). This trade was a 2 R winner so 4%. I actually expected that the 1.3000 would be cracked on Friday. I would have used the following reversal to exit the long trade and to enter the next level 1 short trade. When I noticed that the 1.3000 would no longer be cracked, I no longer wanted to take the risk of holding the positions over the weekend and got out as just described. I expect the stop hunt for 1.3000 on Monday. I'm trying to catch this reversal (shown in red in the upper screenshot) on Monday. That would be the next level 1 short trade that I hold for up to 3 days.

Next I will describe the long intraday setups of Thursday and Friday, for which I had discontinued the AutotraderEA.

On Thursday no intraday trade was carried out by the AutotraderEA. The

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On Friday the entry was carried out fully automatically by the AutotraderEA. However, when I saw in the morning that the stop hunt was not going as deep as I had expected, I became uncertain about the position. What also reduced the likelihood of the trade being successful was that the Asian range broke out quite clearly to the long side before the price was pushed down. I watched the trade for about 1 hour and then decided to get out of breakeven. About half an hour later I regretted this ;-) The trade would have become a 2R winner.


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This is what bank manipulation looks like. There are always variations. Sometimes there are only 2 levels, very rarely there are 4 levels. But you can usually tell from the direction of the breakout from the Asian Range whether there is a higher probability of a movement in the same direction of the previous day or against the direction of the previous day.

The intraday trades can of course also be carried out manually. But the entry comes sometime between 1:00 a.m. and 1:00 p.m. GMT. I don't want to get up at the same time as our bakers, then watch the monitor for 5 hours and then have to drive to work in the morning. For stress-free intraday trading, the autotrader is my holy grail.

If you are interested in the AutotraderEA, please send me a private message.

Happy trading
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