The Blade Forex Trading Strategies

The Blade Forex Strategies were created by Dean Saunders who started trading at the age of 16. He won't win a writer of the year award but his trading strategies are some of the best I've seen and used. He also teaches three (3) trading strategies in his book. One is called the M5 Scalping System (not my favorite because I don't like scalping), the other is called 4H Breakout System and the last is the Divergence System.

As I mentioned, the M5 Scalping System is just that; a scalping system. Scalps usually only net a few pips such as 5-10 and executing these scalps can be a time consuming. Scalps are really meant for traders who want something to do between better trades. You can make a lot of money scalping the market, but you need to be looking at your charts every minute and be ready to act when price starts moving against you. That's just too much work and stress for me, but some traders live for this stuff. I can live without it.

The 4H Breakout System is used with the 4 Hour charts and it's great for traders who don't have all day to sit in front of their computers watching charts and indicators all day long. This is my favorite forex trading strategy of the Blade startegies. It basically works by waiting for price to break thru resistance on the 4 hour chart, wait for a retracement and then you buy before price continues in the breakout direction. This is a very high probability trade and allows you to set very small stop losses with the potential for very large gains. This should only be used on a few currency pairs and all that is descibed in the book. This is also a very easy to understand and simple to use strategy. That's why I like this one so much. I don't like overly complicated trading strategies. The easier the better.

The Divergence System is another longer term trading strategy that works with the 1 Hour charts and up. It's also only best used with two (2) currency pairs but I'm sure it works with others. I've only used it with two and one of them has performed better than the other. This system is based on MACD divergence. There are many systems that use MACD divergence, but this has a few additions than make it easier to pick out the better trades. I've been trading a while so I've seen many of these systems. I personally haven't had much luck with MACD divergence trades so I don't use this strategy any more. I know a lot of traders who only trade MACD divergence and do very well, so again, this forex trading strategy is more geared to a traders style of trading.

If it weren't for the 4H Breakout System , I would not have liked the other strategies and would have returned the book. But I use the 4H Breakout all the time now so this book was a keeper for me. If I get at least one great thing from an ebook, I'm a very happy person. Since the like the 4H Breakout System so much, that's why I recommend this book to others. And who knows? You may love the other 2 trading strategies in the Blade Forex Strategies. They just weren't for me.