Trade Management
How you manage the trade once it is open will vary depending on your personality, some people like to shoot for the big money while others prefer to take smaller more consistent profits.

If you prefer smaller more consistent profits…
kotakasu.com recommend you split your position into 2 halves, set a take profit level for one half at the same amount of pips that you risked on that trade. For example if you stop is 60 pips then you would set the take profit on the first half of you trade to 60 pips. Set a trailing stop for the second half of your position to trail behind by the same amount of pips you risked. This enables the trade to take care of its self while you are not around, the first position is used to take a quick profit and
the second will follow the trade behind by the same amount as the stop value, eventually being stopped out when price turns against it.

If you prefer larger big dollar gains…
kotakasu.com recommend you do not split your trade into two positions as this does reduce your overall dollar gain, instead use one position, and as soon as you check the trade and it is in more profit than you risked, move your stop to break even.
From here on it’s a free ride and some of these rides are huge! You can target another support and resistance level or set a predefined target like four times your risk which would give you a huge gain on each winning trade. kotakasu.com personally use the second method as it makes me the most money but kotakasu.com do get quite a few trades stopped out at break even which can be annoying sometimes.

Whichever method of trade management you choose you still should not need to be more than 10 minutes in front of your charts on the evening. Before we move on to looking at some live trade examples let’s go over the rules to make sure you understand everything.

System Rules

• Check each chart when the daily bar closes for a pin bar.
• Make sure it is bouncing off of a major support and resistance level.
• If the pin is pointing up against the resistance level we are looking to sell.
• If the pin is pointing down against the support level we are looking to buy.
• Set the 50% fib level of the pin bar to find your entry.
• Work out your risk for 2%-5% of the account.
• Set your entry order at the 50% level.
• Place your stop 5 pips + spread the other side of the pin bar (pointy side).
• Set your take profit level depending on which exit strategy you wish to use.
• Always bring your stop to break even once you are in profit by the same amount as you risked.
• If you trade is not triggered within that trading week then close the pending trade and look for a new one.

Trade Examples

Trade example #1
Below is a recent setup on the GBP/JPY which formed a perfect pin right on a resistance line.



Kotakasu.com took this trade and set my profit target at the support line below it 350 pips away. Kotakasu.com have zoomed into the pin bar in the chart below to show you exactly how Kotakasu.com calculated the entry.



Above you can clearly see the pin bar, Kotakasu.com have dragged the fib tool over the bar from top to bottom to locate the 50% fib level where I placed my entry. Kotakasu.com set my stop 5 pips above the pin and left the trade for the next day. After Kotakasu.com managed to find time to check on the trade the next day it had already moved far enough for me to move my stop to break even making this trade a free ride. Four days later my profit target was hit leaving me with 350 pip profit, not bad for 10 minutes work!

Trade example #2
Below is an example using this system with a trend line instead of the horizontal line. Another perfect pin formed on the trend line indicating the inevitable move down. Kotakasu.com set my profit target at the next strong support level, although it may not look like a logical place to place the support line on this chart but 2 months further back in history it had proven to reject price very strongly at this level.



Below Kotakasu.com have made a zoomed in chart to show you my entry.



Surprise, surprise, price yet again retraced to the 50% level before heading off in
the anticipated direction. After the first daily bar had closed kotakasu.com moved the stop to break even and two days later my take profit level was hit at the horizontal support level for a 340 pip gain.

Trade example #3
Below is another pin that formed right on a strong support line. Although there was over 700 pips to be made from this trade, at the time kotakasu.com set my profit target at the resistance line above as kotakasu.com thought that would be where price would halt.



Kotakasu.com have zoomed in on the pin bar below to show you the entry on the pin bars 50% fib level. Price was very close to my entry on the close of the candle yet
price retraced exactly to the 50% level and triggered my entry. My profit target was hit five days later for a profit of 398 pips, little did Kotakasu.com know that this trade would keep moving for another 300 pips.



Advanced Section

Kotakasu.com constantly working on new techniques to make the 10MFWb even more profitable, once Kotakasu.com have tested these ideas Kotakasu.com list them in this section for you to use and profit form. None of the techniques presented here are essential to the systems, if you are happy with the standard systems and don’t want to complicate things any further then it is fine to continue without using any of
these techniques.

Breakout System Advanced Techniques

Trailing Stops
For a while now Kotakasu.com have been experimenting with trailing stops on with the
Breakout system instead of using a fixed take profit levels and Kotakasu.com have found it to significantly increase my profits overall. This technique will enable you to let your profits run with the trend and catch extremely large trades when they develop. All the rules remain the same for the initial setup of the trade, your trade order would be placed 5 pips above/below the inside bar as usual. The only difference
would be that instead of using the normal fixed stop loss as stated earlier in the manual you would place your stop 5 pips above/below the opposite side of the bar to your entry order then place a trailing stop of the same value as your initial stop on the position. This means your stop will automatically move to break even once you are in profit as the same amount as you risked and it will trail behind from then on until it is stopped out at a profit or at break even.

To set a trailing stop on your position with Meta Trader 4 simply open the terminal and right click on the position you wish to modify, then move your mouse over 'trailing stop' from the drop down menu. Now select 'custom' and type in the value you want for your trailing stop.

Techniques to higher Win %
Here are a few techniques I found to filter some of the bad trades and higher my win % using the Breakout system.
1. Only take a trade if the slope of the moving average has been in place for at least a few days. Preferably a week or more.
2. If you cant see an obvious slope
3. Keep an eye on strong support and resistance levels and avoid taking trades into them.
4. Use the Trailing stop as stated above, this will increase your win % due to the wider stop that is designed to capture lager moves in the market.

Swing System Advanced Techniques

Trading on lower time frames
Many of you have been asking if it is possible to trade the swing system on a lower time frame. Well, yes it is very possible and very profitable but it requires a little more time than the original Swing system. Kotakasu.com trade it on the 4H charts but anything lower than the 4H charts produces too many false signals. Like the original Swing System you can't just take any pin that comes along, you must wait until everything lines up before pulling the trigger. You will need to keep a close eye on support and resistance and wait for a good pin to form as price bounces off of it. Because this is a lower time frame you have to be nimble and quick, I find it best to enter the trade at market price as soon as the candle has closed as a pin. As
with the original Swing method place your stop above the pin.I have only traded this method on the EURUSD, I'm not saying it won't work on other pairs but I find it far more profitable to focus on one pair. For my take profits I use a trailing stop at the same value as my original stop and just let the trade run its course until its stopped out. Remember the lower time frame you use the less reliable the signals become so if you decide to use this method only take the very best setups, taking the trades with the trend will also keep you on the winning side of the market.

Conclusion
Building wealth in forex may take some time and dedication but it beats any other job in the world as far a pay and freedom goes. No one should ever need to trade more than a few minutes a day in this business to make extraordinary wealth using the power of compunding. Once you have defined your edge trading is all about consistency, if you are feeling fear at all in you trading then you need to reduce the amount you risk per trade, make it 2% or less until you gain consistency and have little to no emotion in the trade. Keep in mind that you are learning a skill that will provide you with wealth for the rest of your life.