79# Disparity System (Correlation Strategy)
Submit by Joker
Note: Go Directly To Bottom & Read Red Text 1st
This is a strategy that is virtually so profitable, and
repetitive that you may only want to trade this way for
very limited risk and high profit potential!
In technical terms, it is called a Disparity Hedge, whereas once a certain setup is visible, you buy one currency and sell another simultaneously. But, It is not a Hedge.
It is not to be confused with a true Hedge, which at present, is not allowed under NFA Brokers. A True Hedge, is a simultaneous Buy and Sell position in the SAME currency. This method is totally different, as it deals with different currency pairs. Not subject to the new rules.
Once your trade is in play, you wait until the setup
arrives at its maximum profit potential and exit the trade.
It is based on the 1Hr chart and you can get trades on a
regular basis depending on market conditions.
However, you do not risk anything until the trade sets
up, and then all you do is wait for the profits to mount.
Disparity Trade # 1
The EUR/USD – GBP/USD trade
The Theory: GBP/USD pays a positive rollover when
you are long. EUR/USD pays a positive rollover (but
less than the GBP/USD) when you are short.
Trade Basics: Always use 1 Hr Time Frame
Always BUY GBP/USD
Always SELL EUR/USD
Trade Setup: Compare chart overlay of the 2
currency pairs, and when there is a
specific disparity between them,
the trade is ready for entry.
Example: lf you have overlay capability in
your platform, you are in good
shape. You will look at both
currency pairs in the 1 Hr time
frame, with each pair viewed in a
When the GBP/USD is below the
EUR/USD by any reasonable
degree, the trade is ready for entry.
TO See manual..
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