My TUFXP Method

This page is specifically for people that use, or intend to use, the Ultimate Forex Predictor, and wish to use a method that has been proven to be successful.

I’ve been using Tufxp since May 08 and shortly after starting with it I stumbled across a method of using it that has been extraordinarily successful. Tufxp is designed to be a tool, and as such there is an almost infinite variety of settings and methods you can use depending on your own trading style and needs. This is all very well but what I wanted from it was a simple point and click method that told me exactly when to enter a trade and so that I don’t have to make any decisions. What I came up with was a method that did just that.

Since May 08 this method has made £57,520 tax free at £10 a pip.

The method has remained practically the same over that period with the exception of a few tweaks here and there, but this is the most current version.

So onto the method itself. It really is very simple indeed.

My PTP settings are as follows:

And my PTP Calculation Tool is set up like this:

Trading times are 7am-3pm, Monday to Thursday (not Fridays as they are not profitable long term). I trade through all news items, and I don’t use any indicators except for the PTPs. I told you this was simple!

I run three time frames for each currency pair. The 5 minute, 10 minute and 15 minute time frame and I trade on GBPUSD and EURJPY.

Now, this is the important part. I will only enter a trade if there is a Qualified PTP signal on AT LEAST two time frames, and only if there is a maximum of 15 pips between the entry points of the two time frames.

The vast majority of trades occur on the 5 and 10 minute time frames.

I set up the chart so that the three time frames are sitting vertically one above the other. I use candlesticks because I find it easier to see (white candlesticks show the market moving up, and black down). I do have the professional buying and selling bars showing but these are not necessary for the method at all:

In the above picture you can see a standard sell trade with my method. We got a red PTP signal on the 5 minute chart and one in the same position in the 10 minute chart. Please note that the PTP on the 5 minute chart is on the FIFTH bar after 1 o’clock. The FIRST and SECOND bars after the hour correspond with the FIRST bar on the 10 minute chart. This is because there are two bars on the 5 minute chart to every one bar on the ten minute chart (obviously). So bars THREE and FOUR on the 5 minute chart correspond with bar TWO on the ten minute chart and so on. This is just to clarify that you have the PTP’s correctly alined. If the PTP on the 5 minute chart in the above picture was on the FOURTH bar then it would need to be on the SECOND bar on the 10 minute chart to qualify with this method instead of the THIRD.

So, we get the two PTP’s showing and we use the PTP calculation tool to draw in the lines. If you look at the entry points on both charts you will see that they are within 15 pips of each other, in fact they are 9 pips apart (135.42 on the 5 minute and 135.33 on the 10 minute). This trade will therefore qualify if the PTP’s qualify on BOTH charts. In other words the market has to reach the PTP entry point that is furthest away, in this case 135.33.

If it does then you enter the trade at the second entry point. Usually there is enough time to place an order to open at the actual entry point you need. If you want to add a couple of pips to account for the spread then that’s up to you. If you use IG Index then you set your limit to 25 pips and your stop at 25 pips and it will make you exactly 25 pips profit assuming the trade is a winner.

Here’s another trade:

As you can see this time we had two green ‘buy’ PTP’s on the 5 and 15 minute charts. The entry points are 12 pips apart and we enter at 135.38, which is the furthest away. Again another straightforward winner. Once the trade is activated it is closed automatically either by hitting the limit or hitting the stop. There is no need to manage your trades.

That is pretty much all there is to it. One thing you must do though is stick with the method. Using this method you will often go many hours without a single trade, sometimes you won’t get any trades. If you want more trades, don’t mess with the settings, rather go for more currency pairs. The point is that having used this method for a year now, I can safely conclude that it works well. You may not have that many trades, but you’ll get a high strike rate of winning trades and therefore make a good profit. You can always go for a higher value per pip rather than going for more trades and risking more losers. However, even trading at £10 a pip you can reasonably expect to make around £1000 a week profit. Some months are better than others so don’t expect a profit every day or every week even but over the last year I think I’ve only had about two or three weeks where I was in a loss position, usually it’s a healthy profit.

I hope this is of help.

If you don’t have The Ultimate Forex Predictor already you can get it here:

http://www.cash-master.com/tufxp.php