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Many of you have heard of Russell Sands

Russell Sands is now proud to announce the release of his newest product, the Turtle Forex System!

Russell is famous for not only being one of Richard Dennis' Original Turtles, but also is considered by many to be the foremost teacher of the Turtle Trading Concepts. His story along with the history of the Turtles in the commodities markets is at his website Russell Sands Original Turtle There you can find out how to receive personal training by Russell. While you are there you can browse Russells products such as the eHotline with which we send out the entry and exit signals for all 43 futures markets we trade, nightly to your email inbox. Find out more at TurtleTalk.net

One of the keys to a succesful trading strategy is to diversify your portfolio and trading styles. 5 years ago Russell Sands, knowing this fact well, decided to develop a new system specifically designed to trade the Stock Indexes. With the aid of two top financial programmers, he created the Balanced Trader

This turtle forex trading system is specifically designed to trade the exciting Forex markets. Russell Sands has taken the best of both his hugely successful trading systems and tailored them specifically for trading the FX markets! And with the skills of a financial programmer he has developed the code to run this forex system in TradeStation.

Please note that there is no guarantee any person who uses the new Forex Trading System will be profitable or not incur substantial losses.

Most trend following systems have some kinds of rules telling you how to cut your losses and let your profits run. The Turtle Forex system is a little more sophisticated than most others, as the computer program actually has two different sets of money management rules. The first group of rules is related to position size in terms of portfolio theory and market volatility, and tells you how aggressively to load up on each new signal that comes along in order to make the most amount of raw profit with the highest degree of efficiency on any given trade. The second, and totally independent set of money management criteria, are derived from established risk of ruin tables and statistical probability theory, and are designed to keep you in the trading game for as long as it takes to get into the mathematical “long run”, regardless of how choppy the markets might be in any short term period. The bottom line is that even when the markets are giving out false signals and there are no trends of which to take advantage, the money management systems attempt to control the losses keeping you in the game until the point that as soon as one big trend does comes along, which may get you back to the profitable side of the ledger.

Please note that the money management systems may be unsuccessful in reducing risk or limiting losses. 

We are very excited about this new Forex System, and if it even comes close to the success of Russells Turtle Trading System for the Futures markets, and his Balanced Trader for the Stock Indexes then we can expect great results.

If you want more information about the Turtle Forex System please email Steve or call us toll free at 1-800-532-1563

The Foreign Exchange Markets
The Foreign Exchange Market is the largest financial market in the world. With daily volumes approaching $2 trillion, it’s now more than three times the total of stocks and futures markets combined. In 1978, seven years after the ‘Gold Standard’ was abandoned, the value of world currencies was allowed to ‘fluctuate’ according to supply and demand. Thus, the Forex Trading Market was born.  For the next 17 years, Forex Trading was only available to banks and multinational institutions. But in 1995, thanks to the availability of computers and the newly popular internet, this highly profitable market became available to everyone.  Now, this huge international market offers unmatched potential for profitable trading in any market condition or in any stage of the business cycle.

Please note that there is risk of loss in trading in forex.

Foreign Exchange is the simultaneous buying of one currency and the selling of another. Thus, these currencies are executed in ‘pairs’. The price of each currency in the pair is constantly fluctuating relative to all other world currencies.  For example, if the British Pound is stronger than the Japanese Yen, the British Pound – Japanese Yen pair will go up in price. Similarly, if the Yen suddenly becomes stronger, the price of the pair will go down.  The Foreign Currency Exchange (FOREX) was established to allow traders and investors to participate in the gain or loss in world currencies. As these changes occur, they’re measured in terms of one currency vs. another.

Currencies are what bind the world together.  If you decide to take a vacation to a foreign country and you convert US Dollars into ‘their’ currency, you’ve entered into a FOREX trade. Although it may not be your intention to profit or lose from this transaction, the value of the trade will fluctuate until your vacation is over and you convert your remaining funds back into US Dollars.

World currencies have a tendency to trend. In other words, if the U.S. monetary policy causes less demand for the US Dollar, other currencies will become more valuable as the dollar declines. Similarly, if conditions in the Far East cause instability in the Japanese economy resulting in less demand for the Japanese Yen, other currencies will become more valuable as the Yen declines. In most cases, changes to a government’s monetary policy occur rather infrequently. Also slow to change are other economic conditions such as interest rates, imports and exports, etc. As a result, steady price declines can last for months, if not years.

Unlike some financial markets, the Foreign Exchange Market has no single location. In other words, trading is not conducted in a trading pit as with many other markets. Instead, trading is done by telephone and computer links between dealers in various locations and on different continents. London is the largest foreign exchange center followed by the U.S., Japan, Singapore, Hong Kong, Germany, Switzerland, and France.  Because London is centrally located between the U.S. and Japan, British traders can easily transact business with traders from both countries during a normal London business day. This is not the case, however, for trading between the U.S. and Japan (or Singapore).

The constantly changing relative value of one currency against another currency continually creates trading opportunities which are accessible to virtually anyone, anywhere, anytime of the day or night. The Forex market is open 24 hours a day for 5 ½ days a week. Trading opens on Sunday evening at 5 PM Eastern time and closes on Friday at 4:30 PM Eastern time

Trade With A DISCIPLINED Plan

The problem with many traders is that they take shopping more seriously than trading. The average shopper would not spend $400 without serious research and examination of the product he is about to purchase, yet the average trader would make a trade that could easily cost him $400 based on little more than a “feeling” or “hunch.” Be sure that you have a plan in place BEFORE you start to trade. The plan must include stop and limit levels for the trade, as your analysis should encompass the expected downside as well as the expected upside.

Cut Your Losses Early and Let Your Profits Run

This simple concept is one of the most difficult to implement and is the cause of most traders demise. Most traders violate their predetermined plan and take their profits before reaching their profit target because they feel uncomfortable sitting on a profitable position. These same people will easily sit on losing positions, allowing the market to move against them for hundreds of points in hopes that the market will come back. In addition, traders who have had their stops hit a few times only to see the market go back in their favor once they are out, are quick to remove stops from their trading on the belief that this will always be the case. Stops are there to be hit, and to stop you from losing more than a predetermined amount! The mistaken belief is that every trade should be profitable. If you can get 3 out of 6 trades to be profitable then you are doing well. How then do you make money with only half of your trades being winners? You simply allow your profits on the winners to run and make sure that your losses are minimal.

Please note that there is no guarantee that any stop loss order will be executed at the stop price.  Therefore, there can be no guarantee that placing a stop order will limit losses or protect profits.    

Do Not Bet the Farm

Do not over trade. One of the most common mistakes that traders make is leveraging their account too high by trading much larger sizes than their account should prudently trade. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $1000 as a minimum margin deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 put up as margin. Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As a consequence of this, they are often forced to exit a position at the wrong time. A good rule of thumb is to trade with 1-10 leverage or never use more than 10% of your account at any given time. Trading currencies is not easy (if it were, everyone would be a millionaire!).

Forex Glossary

Base currency is the first currency in the pair. Quote currency is the second currency in the pair.

USD
/
JPY
=
120.25
Base currency
Quote currency
Rate

This abbreviation specifies how much you have to pay in quote currency to obtain one unit of the base currency (in this example, 120.25 Japanese Yen for one US Dollar). The minimum rate fluctuation is called a point or pip.

Most currencies, except USD/JPY, EUR/JPY, CHF/JPY and GBP/JPY where a pip is 0.01, have 4 digits after the period (a pip is 0.0001), and sometimes they are abbreviated to the last two digits. For example, if EURUSD is traded at 1.2389/1.2394 the quote may be abbreviated to 89/94.

The currency pairs on Forex are quoted as the Bid and Ask (or Offer) prices:

Bid
Ask
USD / JPY =
120.25
/
120.30


Bid is the rate at which you can sell the base currency, in our case it's US dollar, and buy the quote currency, i.e Japanese Yen.

Ask ( or Offer) is the rate at which you can buy the base currency, in our case US dollars, and sell the quote currency, i.e. Japanese Yen.

Spread is the difference between the Bid and the Ask price.

Pip is the smallest price increment a currency can make. Also known as a point. e.g. 1 pip = 0.0001 for EUR/USD, and 0.01 for USD/JPY.

Currency Rate is the value of one currency expressed in terms of another. The rate depends on the supply and demand on the market or restrictions by a government or by a central bank.

Lot Size is the number of base currency, underlying asset or shares in one lot defined in the contract specifications. For details refer to the Table 2.

Lot is an abstract notion of the number of base currency, shares or other underlying asset in the trading platform.

Transaction (or deal) size is lot size multiplied by number of lots.

Long Position is a buy position whereby you profit from an increase in price. In respect of currency pairs: buying the base currency against the quote currency.

Short Position is a sell position whereby you profit from a decrease in price. For currency pairs: selling the base currency against the quote currency.

Completed Transaction consists of two counter deals of the same size (open and close a position): buy then sell or vice versa.

Leverage is the term used to describe margin requirements: the ratio between the collateral and the value of the contract. 1:50leverage means that you can control $100,000 with only $2,000 (2%).

Margin is the collateral required to open and maintain a position.

Balance is the total financial result of all completed transactions and deposits/withdrawals on the trading account.

Floating Profit/Loss is current profit/loss on open positions calculated at the current prices.

Equity is calculated as balance + floating profit - floating loss.

Free margin means funds on the trading account, which may be used to open a position. It is calculated as equity less necessary margin.

If you want more information about the Turtle Forex System please email Steve or call us toll free at 1-800-532-1563

FOREX TRADING IS RISKY AND INVOLVES RISK OF LOSS AS WELL AS THE POTENTIAL FOR PROFIT.
Do not risk money that you cannot afford to lose. This method cannot be guaranteed to make profits in the short term and past performance is no guarantee of success. The Original Turtle Trading System is a long term trading method requiring patience and discipline.
THERE IS ONE GUARANTEE WE CAN MAKE: TRADING IS HARDER THAN YOU THINK.
RUSSELL SANDS AND HIS AGENTS MAKE NO WARRANTY AS TO LIKELY SUCCESS OR OTHERWISE
.

 

 

Currency
1.0 lot size
1 pip
EURUSD
EUR 100,000
0.0001
USDCHF
USD 100,000
0.0001
GBPUSD
GBP 100,000
0.0001
USDJPY
USD 100,000
0.01
NZDUSD
NZD 100,000
0.0001

Understanding Forex Quotes
Reading a foreign exchange quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1

The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.


What is a pip?

In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the fourth decimal point, which is 1/100th of 1%.

In EUR/USD, a 3 pip spread is quoted as 1.2500/1.2503
Among the major currencies, the only exception to that rule is the Japanese yen. In USD/JPY, the quotation is only taken out to two decimal points (i.e. to 1/100 th of yen, as opposed to 1/1000th with other major currencies).

In USD/JPY, a 3 pip spread is quoted as 114.05/114.08

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.

When trading forex you will often see a two-sided quote, consisting of a 'bid' and 'ask':

The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency).
The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).

Forex vs. Equities and Futures

FOREX
EQUITIES
Liquidity (volume generated) Near 2 trillion dollars of daily volume Around 200 billion dollars
Trading Hours 24 hr market, 5.5 days a week Monday through Friday from 8:30 EST to 5:00 EST
Profit potential In both, falling and raising markets Most investors profit only from raising markets
Buying power Leverage up to 50:1 Leverage from 2:1 to 4:1
Specialization 8 Major currency pairs More than 400 stocks to choose from
FOREX
FUTURES
Liquidity Near 2 trillion dollars of daily volume Around 400 billion dollars
Leverage Fixed rate of leverage Different levels of leverage on overnight positions than day time positions

Benefits of Trading Forex

Here are some advantages of trading Forex:

Liquidity. Forex is by far the most liquid financial market in the world with nearly 2 trillion dollars traded everyday.

24hr Market. The market opens on Sunday at 3:00 pm EST when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminates operations. There are transactions in practically every time zone, allowing active traders to choose at what time to trade.

Leverage trading. For instance, a trader using 50:1 means that to have a US$100,000 position, only US $2,000 is needed on margin to be able to open that position.

Low Transaction costs. Almost all brokers offer commission free trading. The only cost traders incur in any transaction is the spread (difference between the buy and sell price of each currency pair).

Low minimum investment. The Forex market requires less capital to start trading than any other markets. The initial investment could go as low as $300 USD, depending on leverage offered by the broker.

Specialized trading. The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main investments (85% of all trading transactions are made on the seven major currencies). Allowing us to get to know better each instrument.

Trading from anywhere. If you do a lot of traveling, you can trade from anywhere in the world just having an internet connection.