The ForexGrail Simple Trading System

This is going to be too easy to believe but you can make profitable
foreign exchange trades using just two simple moving averages and a
software program called the FX meter. (Included with this eBook)

We make money buying one currency going up in value, using another currency
going down in value. The charts you look at in forex are not like stock charts at all. The
price of a stock is fixed against one currency. Forex trading involves two variables
measured against each other. The difference between two currencies is called the
“spread”. Forex charts are “spread charts”.

Your objective is to purchase a currency that will be strengthening

(going up in price) and purchase it with a currency that is expected to
weaken. The currency meter allows a foreign exchange trader to see
strengths and weakness. The meter allows a trader to have more
confidence.
This is the link for downloading the software to install the currency meter.

Save the file to your desktop and only launch after enabling the DDE from your choice of
MetaTrader broker.
I know you are probably excited to get going but keep reading before installing it. You
will need to download the free MetaTrader platform in order to provide the ForexGrail software
with data.

How to install the ForexGrail software movie.

Download zip file on installation.

Here is the help page linked inside the software.

CamPlayer for AVI if your media player can’t handle AVI. Type.

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Introduction to the ForexGrail trading system.

This is the software version of the currency strength meter. It’s a

new way of seeing what we are doing. This picture shows all the
currencies at the same time. Un-checking the currencies you don’t
need will allow you to see just the pairs you are interested in.

As currency traders, our mission is to make money trading the

difference in strength between currencies. The ForexGrail will show
you which currencies are trending over time by displaying weakness
or strength in line form.

You can adjust the snapshot timing from 1 second to 30. Just use the defaults
at first. The chart will let you adjust the timeline and display the individual
currencies one at a time or in combination.

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In Vista, you need to run the program as administrator.

With vista, you can run programs on different security levels by right clicking on the icon as the
image on the support page shows and selecting to run as administrator. Normal double clicking
on the icon brings up a response error. Also, if that’s not it, try uninstalling and I can send you
another file from the one I am currently running on my desktop.

Before sending me a support email;

Make sure to check that the MIG MT4 platform is running and you have
enabled the DDE on the servers tab inside options from the Tools” on your
MT4 menu. (explained below)

The meter does not like to be minimized on the taskbar. You must have it
open and running or a message will pop up telling you it shouldn’t be
reduced. Other programs can go over top while it runs.

The parameters for adjusting timing is important. Once you reach a limit, it
will produce a pop up message. Keep under the limits and there will be no
problems with that error message.

Most times, when people get an error, it is because they are not used to
VISTA and its ability to run security levels for programs. It has to be run as
an administrator or you will get an error message. MT should be running
as well with DDE enabled.

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 There was a finite availability of color selections and although grey is poor
but readable it would have had to be a trade off with another currency.
The yen is traded less than others since some traders are shocked at the
perceived price.
Sometimes you may need to uninstall. Make sure to use the correct
uninstall method and not just delete the folder. This could cause an error
message when trying to re-install again. Use the proper uninstall method/

Currency strength is everything when trading foreign exchange prices.

MetaTrader is one of the most popular free charting package platforms available. There
are many brokers who provide their services through it. The simplest one to download is
the MetaQuotes version from their website at http://metaquotes.net or you can sign up
for a demo through one of the many brokers carrying it. All we need is the free DDE
included with each MetaTrader charting package. In order for the FXMeter to have
something to read, the MT must be installed and running properly before we can
depend on the data feed driving the meter. When MT is running correctly, the little
green/red box should indicate KB transfers like the image below shows.

I am using the MIG broker version. It has the most pairs I can find and if you run into
problems setting up, it is good that we are on the same page.

MIG doesn’t have to be your live trading or even demo trading platform. It feeds the
meter. You do not need to have a MIG live trading account to use their free DDE. Most
brokers of MT offer free DDE feeds. I have never heard anything bad about them so they
could be a good choice, but it makes no difference in this situation.

http://www.migfx.ch/

The feed from the MT broker is independent from any charts or live trading broker you
have. They can all be run at the same time. The meter needs the platform of the MT4
open and enabled DDE in order to begin broadcasting the signal to the meter.

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There are lots of brokers using MetaTrader so finding one that fits should be easy. You
do not have to have a live account. The meter measures strength trends, so tick by tick
data isn't crucial. As long as the feed is generally in the area of other Forex brokers.

On the top tabs select "tools" and options".

The FX Meter program needs the DDE to be enabled on an MT4 platform. This way, the
Dynamic Data Exchange or DDE, can feed the meter the data it needs to make its
calculations. The image below shows the tab selector box from the "tools" "options" in
MT.

The box above indicates your feed from MT4 is missing. Make sure to launch the MetaTrader platform and have the
DDE enabled before starting the Currency meter.

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The essence of what we do as foreign exchange traders is expressed in a particular
currencies’ strength or weakness against another.
Tom Yeomans

The value of the US dollar can’t be compared to just one currency. It has to be looked at
in comparison to how it has been performing against other world currencies. As foreign
exchange traders, we watch a chart showing the difference in value of two currencies.
The difference in price between the two currencies is shown on what is commonly called
a spread chart. Forex uses spread charts. They are not the same in theory or operation as
a stock or commodities chart. That’s why technical analysis doesn’t work very well in
forex.

In order to trade the forex market correctly, determining the strength of an

individual currency is vital.

If you think in terms of strengths and weakness, and apply it to an individual currency,
you are thinking like a bank trader. When foreign exchange trading opened the door for
the retail investor less than ten years ago, people began jumping into the high leveraged
community automatically assuming that technical analysis would convert as well. On the
surface you would think so.

Traders from other markets look at one instrument fixed to the US dollar. Forex charts
look at two completely different entities. Throughout the day all currencies are changing
in value as perception, news, politics, and economics plays out in their respective
countries. One currency may be going up in value due to a piece of great economic news,
while another is losing its value from a political scandal indicating future uncertainty.
This interplay is what we are seeing when looking at a forex chart. However, using only
one chart tells us only part of the story.

Forex charts track the changes made by two individual currencies. Only by observing
interaction among many currencies can we determine how a particular currency will most
likely perform in the future.

For example:

A EURUSD chart shows only the value of the US dollar against the Euro. If the line goes
up, is the euro really gaining strength overall ? Or is it reflecting weakness of the US
dollar? We don’t know until we can see several other charts containing the EURO and
the US dollar and note their weakness or strength in that pair combination.

The value of world currencies are always changing. One interesting concept that is
known by all world market traders, is that each currency will go through a period of
trending. This means it will continue to become stronger or weaker until something

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happens to change things. Being able to electronically measure and weigh each currency
as it interacts with others is the secret to trading forex.

Your trading decision should have 3 parts to it.

1. Pick a pair of currencies that are moving toward strength or

weakness using the currency strength meter. Watch the lines form
for at least a half hour prior to beginning.

2.. Find an entry place using the 50 period simple moving

average crossing with price line plus six pips.

3.. Determine your exit by using the assistance of the 7

period simple moving average

Our job, as day traders is not to predict the direction of world

currencies for days or weeks. We shouldn’t care. Our trading decisions
should only be based on what is most likely to happen to a particular
spread for the amount of time we happen to be involved in the trade.

PRICE LINE ONLY. ( No candles or bars)

Use the line chart. No bars or candle views. When I talk about a crossing
of lines, I am referring to the price line crossing the moving average
line. Not the crossing of moving averages themselves. Sometimes,
coincidentally, all three lines may cross.

5 MINUTE CHART
The meter runs on its own DDE feed so there is no need to have the
same trading broker as the one you feed the meter with. You should
select whatever broker gives you a wide variety of pairs. The five minute
line chart should give you about two days view of the action. My
examples have the charts from Oanda, E-Signal, and MetaTrader.

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50 SMA (Simple moving average on close price)
All charts will have the ability to place a line called a “simple moving
average”. Later you may want to fine tune with other settings but for
now, use the simple close price line and color it blue.

7 SMA ( Simple moving average on close price)

The simple moving average smoothes out the price history line so we can
see the average prices during whatever period you select. I like 7.

Various currency setups happen several times a day on various

pairs. Not all crossings have potential. You must have confirmed strength
meter readings to go with this simple entry system of 2 moving averages.
Find a few potential strong and weak candidates. Keep your eye on them
for an hour or more. You will begin for feel the various trends developing.
Don’t stare at charts all day. Just keep the meter going while you go
about your business. When the conditions begin to show themselves you
will be read. Some days the setups are seen more often than others. Most
mornings I usually see two or three. Evenings here in North America I
can expect at least one good setup.

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 You must get used to observing all the various pairs for this to
work. Do not just wait to see if one or two of your favorites will work. You
can’t have favorites in this business. It is important you select the correct
pair of currencies for the trade. Some time periods result in more profit
than others.

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What moves the forex market

We are in the world’s most competitive trading environment. The

foreign exchange market has the best in the world trading against us
most of the time. I will assume that everybody knows the basic terms
in forex, such as pip and currency pairs. If not, you can refer to your
brokers manual to get the mechanics of operating a particular
platform.

Do not play with scared money!

This means that you should never trade with rent or food money. If
you can’t afford to lose it, don’t risk it. Either go to a demo or get the
heck out of a business you obviously can’t afford to be in. Start, if you
must, with a nickel and dime forex only broker, then move up to the
regulated firms as soon as you can. If you have ten thousand dollars or
more and you have established credit, use a proper broker.

There is a huge difference between forex only brokers, and

regulated brokers who offer foreign exchange products.

A forex-only broker is not accountable to anyone regardless of their

affiliation with volunteer organizations they may join. Using a reputable
broker that has been operating for many years and qualified to carry
most of the regulated market instruments, should be your first
priority.(Separate from derivatives only brokers) Trust and reputation
will become very important as you begin making money. Your goal must

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be to accumulate enough money and get your credit up as possible to
open a “proper” trading account with a regulated and reputable
brokerage.

1.. Use a 50 SMA and 7 SMA on a 5 minute line chart.

Two moving averages on a five minute chart gives us potential

entry and exit points. I suggest not messing around with the settings
until you have mastered a consistent profit. Don’t try to reinvent the
wheel. They work fine, so leave them alone.

A five minute line chart should easily display 2 days worth of data.
That’s enough for day trading. The objective is to trade with your eyes
ahead, not backward. What the chart did prior to you opening a trade
has no significance. The past is past. We are trading the future. The
market will show you a variety of patterns in hindsight, but base your
decision on what it is most likely to do in the minutes ahead. It doesn’t
matter where it has been or where it may be going tomorrow.

We are day traders. Get in and out with a profit. Always keep the
50 and 7 SMA on a five minute chart as a rule for finding trend
direction.

You need consistency to succeed long term.

Predicting the future market direction of one world currency is

enough of a task. We only need to know which currency is moving
toward or away from trend. It shouldn’t matter which currencies you
trade. Only that you see a clear trending direction developing. Messing
with one indicator after another, brings nothing consistent into your day.
You need habits. Good ones of course. When you can take a look at a

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chart and say to yourself, “Hmm. I have seen this before. I know what to
do.” You will be on your way to making a living in this exciting industry.

In the beginning, we experiment with every technical the charts or

boards are talking about. It is important for a beginner to trading to try it
all and see for themselves that technical analysis methods that work for
the stock market doesn’t work in foreign exchange.

Everyone is looking for that edge. That’s fine and dandy. As long
as all this playing and learning is taking place with demos and not your
own money. Once you begin to realize the market goes where the market
goes, and you wither can control your emotions or not, that is when you
have to do one of two things. Quit or settle down jumping in and out on
whims and instinct.

The heart of the ForexGrail system is really you.

If it was the system itself, I could automate it and the massive

money would be in leasing it to banks. A system is only as good as the
person following it. It is going to be you that makes this work. Watch
the currency meter for a few days in your chosen time period. Get used
to seeing trends develop over several hours and even days. The individual
trader is responsible for their own success and must be able to control
emotion when trading. Forex is speculative trading of derivatives at
high leverages.

All trading involves risk. You may lose several trades in a row sometimes
so you need enough money to ride it out. No system is capable of 10 out of 10
wins consistently. It is you who will make any system work.

Let’s get back to the moving averages;

Used on their own, two SMA’s (simple moving averages) on a cross

will give you a certain ratio of winners to losers according to what’s going
on in the market. It’s a gamble. The essential ingredient in this system is
the currency strength meter but another important element is the use of
a price line instead of candles. We are watching (with meter confirmation)
for the cross of the price line and the SMA.

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 The ForexGrail system specifies;

50 SMA for finding entry when the price line crosses it. Exit
when the 7 SMA is crossed with the price line.

The fifty period slow moving average tells me the trend for the
morning. It tells me what way the market is trending. (At least for the
time period I am interested in) Basically, what I want from the fifty line is
to know what the average price has been during fifty, five minute
sessions. The trending direction.

The 50 SMA below tells us at a glance what that spread has been
doing. Wait until price line has crossed the fifty to enter a position in the
same direction as the trending 50. I like to wait for at least 6 pips above
or below just to make sure it’s not a fake out.

Think of the moving average in terms of price, not position.

See it in a different light by observing it without the price line at all. Do
this on your charts. Make your chart all black except for the one 50
period moving average. Look at the price. You are seeing the actual
market direction without noise. Candles, bars. Indicators, colors, are all
noise. Just the ups and downs of trend.

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 The reason I use 50 and 7 SMA’s are the same reason I look at the
five minute charts. I’m used to them. They’re comfortable. They’re
familiar. This is very important in working any system. Get comfortable
with it. I have come to depend on the five minute chart as my way of
seeing differences or consistencies. At the same time, I have developed a
few tools to help me determine what I am seeing.
Set your charts to line mode.

All charts allow you to view price as a line instead of a bar or candle. The
forex grail system requires lines to show price as a line. The crossing of
the price line against the simple moving average line. Not the two moving
average lines. By the time the two moving averages cross, the move is
over. These are lagging indicators so I don’t want entry or exits based on
crossing of the averages. With the currency meter confirming an entry,
we get a jump on the other traders waiting for the cross between the two
moving averages. Ha.

I don’t use bars or candles. I am only interested in the averages and

current price. Learn to see the market in terms of averages. The only way
to do that properly is by viewing a line chart. It filters noise and price
peaks you wouldn’t have gotten filled at anyway. It displays at a glance
the true average direction a currency is going.

This picture was taken about 20 minutes after the signal to enter was given by the 50.
The price line is white.

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Although this system is easy to follow, there are going to be lots of
demons like emotion and lack of patience. You must be strong. Make the
determination now, before going any further, that you will follow the
ForexGrail trading system with the numbers I give you before trying to
make changes. Do not make this out to be any harder than it is.

It doesn’t matter what charts you use. They are all pretty well the same.
Five minute price line with two moving averages on close.

Don’t use bars or candles for this system. They will shake you out
of a trade too early and cause you to make decisions on emotional
triggers. When applying the ForexGrail system, use the price line. Just
use a simple line and get used to seeing it. Keeping you focused on the
line and its impartially (pointing down or pointing up) will let you make
better trading decisions.

Enter at least 6 pips after the crossing of the 50 line and price.
This makes sure it’s not just noise. The 50 is showing direction and the 7
will be marking an exit. The picture below shows my entry after meter
confirmations on the morning I am writing this.

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 THESE SETUPS OCCUR ALL THE TIME WITH VARIOUS
CURRENCY PAIRS.

I have often said that the candle was a conspiracy to keep

beginners from seeing true market action. They sometimes turn green too
early and red too late. Almost like someone is programming
them..hmmm. Seeing a candle turn green while in a short can cause you
to panic. They are probably useful to longer term traders. These fancy
things just clutter up what I am seeing. (I know it will be like weaning a
heroin addict to get you to toss them, but you must not use candles or
bars for this system to work properly.)

If I am observing other markets and long time periods I may use a

bar, but the ForexGrail system demands a price line in order to work
correctly. Keep this as simple as possible in the beginning. Make yourself
stick to the rules.

The mechanics of making trades is something you will have to wade through on your
own using your brokers’ manual. Each platform is different but they all follow the same
routines. There is no particular broker this system works with. It works with all
brokers. You need to contact your broker platform help section, not me.

You need to get used to making trades with your platform in demo or
simulator mode. Absolutely, positively, do not start using real money
until you have proven to yourself, and most importantly, the others
in your life that may be affected, that the system works and you
have clearly assessed and discussed the risks involved.

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 Basics first.

We are trading the difference in price between currencies . Charts

extract the difference in price between two separate and quite distinct
currencies, then display the result.

The line going up on any forex chart means a rising price for the
currency that has first position in the pair.

EURUSD means EURO getting stronger when compared to the US

dollar when the line is going up.

The line going up on USDCAD, means the US dollar is

strengthening against the Canadian Loonie.

The line going up on the GBPUSD means the pound is getting

stronger

Understanding that we are buying strength or selling weakness of

individual currencies, not pairs, is vital.

The US dollar is gaining strength.

This means the line on the EURUSD chart is going down.
The EURO is gaining strength
This means the line is going up on the EURUSD chart.

But… there is a crucial element involved in the ForexGrail trading

system. In the first statement where I said the US dollar is gaining
strength when the line goes down, I could have said that the Euro is
losing strength. Both are correct. For all I know by watching one
chart, the US could be weak or it could be strong…or the Euro is
weaker. I don’t even know if either currency is doing anything at all
without looking at other currencies that may be going strong and
weak while pulling this pair along.

When you give currency trading some deep thought, you have to admit
that in essence, the entire market symbolizes strength and weakness.
The ForexGrail system understands what makes currencies work.
The currency market trends. Trending among currencies is a
characteristic acknowledged by all foreign exchange experts. All
currencies tend to trend.

The tendency to trend by currencies is the basis of the forex grail

trading system. Other trading systems ask you to find the bottom
or top. This is a suckers game. If you have traded for a while, you

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 must agree that you never seem to find enough tops to make
money. This is the way the market works.

Little players at a hundred to one odds are the only market

participants silly enough to guess at tops and bottoms. Don’t play
the suckers game! Just follow the ForexGrail system. Don’t try to
outsmart the market makers.

BE CONTENT WITH TAKING A SMALL BITE OF AN EXCELLENT

TREND.

If you are using a small account with a derivatives only broker, this
is your survival tip of the day: “You must enter the market with a
steady trend that the market maker must eventually follow.”

Make your entry following the trend of the “real” currency market, the
same one the broker must follow or lose clients. The idea behind the
ForexGrail system is to get in the habit of making a trade with the trend,
not the wave within the trend. The true trend.

If you follow the rules correctly, there will be times the market
seems to be going against you when in fact, it didn’t. You got
caught on part of a wave.

Do not pick a volatile time to enter.

PLATFORM PRICES OFTEN VARY WITH THE CHART.

Do not make the mistake of confusing your chart price with what
your broker has posted in the window of the platform. Charts and
platform prices often differ. Make sure to look at the prices on your
trading platform before making a market order trade.

It would be a ring toss trading with just two simple averages. More
is needed. Lets dissect what the moving averages tell us before
going on. The two moving averages tell us where to enter and
where to exit trades based on a simple idea.
The tool I am about to introduce you to tells you what all the other
currencies are doing in relation to others. The pictures above
shows the currency meter displaying what the average strengths
and weaknesses are for various currencies during that instant.
Although this display is crude in comparison to what investment
houses use, it serves our purpose. Remember, you can get fancy
later, just follow the simple system first.

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The ForexGrail system uses the currency meter to identify
potential candidates for each side of a trade. It will alert you to the
pairs you should be looking at in more detail. You can alternatively
look at all the pair charts if you have multiple monitors but its
harder. The currency meter measures all the ticks coming into it
from a forex broker and sorts out the strong from the weak. Since
it uses tick by tick calculations, it has to be viewed for a while
before seeing the trends clearly. The system will require you to
watch the trends as they develop for at least an hour after the
European, Asia, or new York openings to make sure of a direction
to hop onto.

It is precisely the tool we need in order to determine when the time

is right for making a trade using the two moving averages. The
ForexGrail system, takes the work out of looking at more than
twelve charts to see which currencies are weak and strong. You
will need to bring up the individual charts for your currency pair
choice and fine tune things.

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Let’s begin a typical trade session.

Remember I told you about the ring toss using just two simple
moving averages on their own? They can’t do much more than tell
us during any particular moment in time, what trends seems to be
developing among the common forex pairs. They are very good at
letting us see where the trends are.. once we are able to choose
which pairs to keep our eyes on. Here is how I find the best
currencies to trade;

You must take all emotion out of your selection of a currency. Our
objective as forex traders is to extract the maximum profit from
a deviation between two currencies. We trade the spread. It
shouldn’t matter what currency you use to make money. Sticking
with a particular pair or choosing one currency over another based
on familiarity is dangerous. Keep your emotional attachment to a
particular currency for shopping.

Let’s get on to finding a pair to trade.

Wanting to know how your chosen currencies are doing in their

interaction with other currency pairs prior to opening a trade is
just plain common sense isn’t it?

In the ForexGrail system, you must trade the currencies that are
moving away, or apart from each other at the fast rate. This means
your first objective is to find one currency that is trending towards
strength, and match it with a currency that is trending towards
weakness. Makes sense eh? We make our money on spread. The
difference in price between currencies.

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Pick a currency that seems to be gaining or losing momentum as a
faster rate than the others for the time period in which you are
trading. If it is early in the euro session, you will most like see the
EURO and GBP moving a little faster than the others. New York
trading session will usually move the US dollar around faster than
the others. If you are trading any of the time periods; (Europe, Asia
or New York) Watch which ones are most active and consistent for
an hour after the opening.

You can do this by looking at a wide range of charts if you happen

to have several monitors or want to take the time to calculate how
each of the currencies involved interact with your selections. Take
a look at this picture. It shows the heart of the ForexGrail system.
It is just a simple tool, but it pulls everything together. It takes the
work out of watching multiple screens to find strength and
weakness.

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The currency strength meter is simple in operation.

It looks at all pairs and uses various weighting calculations to find

out how, relative to the others, a particular currency is doing. It
measures individual currency strengths by making comparisons
with how that currency interacts with others. Strength or
weakness is not clear using one chart. In order for you to figure
out if the currency is strong, you have to open other charts and see
if it shows strength against other currencies.

The currency meter tells you at a glance which currencies are

moving and which charts you should open to take a look. The
meter takes a free data feed from a typical interbank broker and
shows us in real time which currency is most active. It moves all
the time the market is moving. Sometimes very fast, and other
times quite slowly. The meter allows us to narrow down a pair of
currencies to trade.

USDCAD
CHFJPY
EURCAD
AUDUSD
EURAUD
EURJPY
GBPJPY
CHFJPY
USDJPY

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 I need a lot of charts to keep my eyes on so I settle with observing
one or two that contain a strengthening currency and a weakening
one. Many brokers have various pairs available to trade. The
quantity of pairs can be a factor in your broker selection, You
should always try to find one pair containing both currencies. In
this limited example I will select the CADJPY from my pair
selection with Oanda.

CADJPY

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 The meter and the trading broker can be different. We only need a
data feed (DDE) that gives us currencies on the move. Since we
only want to be alerted to a strengthening currency, the individual
trading price variations among brokers don’t matter. The currency
meter works with all brokers. It uses a Metatrader DDE which is
supplied free by more than a dozen brokers.

Lets apply a 50 and 7 SMA to this chart of the CADJPY and see
what is happening.

This will be my first chart open after seeing the numbers on the meter.
Before I do anything, I will want to have a look at the Oanda CADJPY to
determine if it is a candidate for my pair. First glance tells me the trend
is definitely in place but the trigger happened a few hours ago.

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It’s obvious that the Yen has been strengthening against the
weaker Canadian dollar for several hours. In the picture last page,
the blue line is my 7 and the pink is 50 sma. Using Oanda chart.

It doesn’t look like the fifty and 7 will be close to each other for
some time so I will look at my next candidate since this potential
trade could be exhausted. I am looking for a small piece of
momentum in spread just after it starts and before its exhausted.

Do not jump every time you see red and blue. These should alert
you to a developing trend only. They could change. You must
watch what the currencies are doing for a time to get a fix on their
true strength or weakness. You are looking at the meter to provide
you with some clues and save time watching all the pairs. How will
you know if the strength is developing or the weakness is real?
Aha.

25
Look at the 7 and 50 moving average as guides.

The fifty (50) SMA will show true trend and the seven (7) SMA
shows where things have began to turn. I always want to make a
long after a cross of the 7 if the 50 SMA is up, and a short if its
below the 50 sma.

I use the 7 period sma as an exit guide. It tells me that the

market has begun to show signs of turning. Time to get out.

I like the one hour view of the 50 SMA to be sure of the long term
trend. Going back to the 5 minute view and the general trend on
other currencies, I can time my entry on the upward or downward,
crossing of the 50SMA.

I am simplifying this example because it doesn’t show the meter

which would be indicating this pair as my best choice and I would
have spent some time observing and checking into any upcoming
economic reports affecting the trade I may be in. I am not looking
to get in as soon as the trend becomes directional. You will find
that many times it isn’t possible or preferable to get in on the first
part of a trend. Waiting and biting your nails if necessary, until the
exact moment and taking a little bite of the apple is the way to
consistently make profits.

26
Give your trade some time to work.

Don’t set ten pip stops with the broker. My hard stops are usually
more than most people are comfortable (50-100) but make yours at
least three times the amount you are going to use for a mental
stop. Keep stops above 20 with your demo until you get a feel for
where to place them. It takes a bit of ups and down for the trade to
work.

Take a safe piece of the move. 10 pip stops will kill you. They are
too small. Remember, a broker makes money on filling orders.
Either way. A stop is an order. Keep the stops high on your demo
so they can show you what’s best for you when going live.

I am always looking for the beginning of a trend. I don’t want to

trade it yet, but I am always watching for the ones that are
beginning. Sometimes the lights turning red and blue on the meter
during the beginning of my trading day may be showing peaks and
not trends. I want to see steadily rising numbers for my strong
choice.

Just picking the highest number isn’t the idea. You want to watch
the trends developing and moving towards weakness or strength,
You are trading the spread between currencies. This means you
want to see as great a difference between two currencies as
possible at an increasing rate of change. That’s the profit. Don’t get
attached to one special pair. Sure, if the signals are there fine, but
look around. Experiment with how many pips you can get with
other pairs and how much that translates to in your home
currency.

27
I want in well before the 7 begins turning around. The best way is
to watch it for a while. Try shutting off your price line and noise to
clearly see what the seven is telling you. The fifty shows direction
of trade (long or short) and seven when to exit. (On the basis of
your determination of best currencies according to the meter)
I’m saying that because you can’t just pick any favorite for this to
work correctly. Once you have identified the potential candidates
for your trade, you need to get into the market as soon as possible
or your increasing spread between the currencies begins to slow
down.

Your personal risk factor is the only thing that will determine how
much money you make.

The ForexGrail system can be used in any time period and under
most market conditions..Even economic reports. It is you who will
have to see the trend beginning and take advantage of it by
selecting a good counter currency. It’s not hard to do using a few
simple instructions.

28
To summarize;

You need the currency meter in combination with the two SMA’s.. I have
all kinds of different meters but this one is simple to use in the
beginning. On the next page, let’s finish this trade. The 7 is being hit and
it is time to exit.

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30
Risk

I consider what I do the equivalent of driving a car. Sure, there is risk.

But I am in complete control of the decisions I make concerning my
trading money just as I am in choosing where and how to drive safely.

Watching charts and trading forex is not my lifestyle. I use it to provide

me with a lifestyle. I pick a time when the market is most likely to make
a move, and I do some planning ahead of time to get a little piece of it.

The mechanics of making trades is something you will have to wade

through on your own using your brokers’ manual. Each platform is
different but they all follow the same routines. I usually make market
orders with a huge stop limit and possible take profit targets. A stop is
just an order. Keep that in mind.

We are trading currencies folks. We try to extract the difference between

separate and quite distinct currencies. Spread trading the forex market
is something people tend to keep quiet about since their methods and
techniques usually involve some indicator carried over from the other
markets where there was no spread against another quite different
entity.

Standard charts go up and down; up means good and down means bad.
In forex, we can trade both up and down.

Currency is not determined by emotions the way much smaller markets

like stocks and indices. Most commodities are ruled by the speculators’
desires and fears. Not foreign exchange.

Central banks and professionals determine the price relationship of a

currency. What we see on our forex platforms is a contrived market.
There is no single central authority for foreign exchange prices.
Professionals and specialists determine the value of a country’s currency.
We have nothing to do with it. We can only hope to find an opportunity
or an edge by understanding how these folks determine a currency value,
which is translated into a price. We only have to find an opportunity.

31
 Understanding that we buy strength or sell weakness of an
individual currency, not pair, is vital if you hope to become successful
and last trading this type of market.

How to use the Currency meter effectively.

The simple moving averages will give you a good idea of when
to enter or exit. However, on their own they will not produce a
high percentage of winners. You need the currency meter to tie
things together.

1..The 50 shows potential entry when price crosses the line.

Trade is in the direction of overall trend. Before entering, make sure
the trend meter has been showing a steadily increasing (Stronger) or
decreasing (Weaker) value.

2..The 7SMA basically tells us when the move is exhausted and

has began to turn around. When the price line touches or comes very
close to the 7 line, it’s time to get out and reassess the market.

3..The currency strength meter shows what is weakening, and

what is strengthening.

32
 The ForexGrail system of trading will work well for anyone who
follows the rules. Don’t change them until you have a good feel for the
system. Do not trade with real money until you have proven to
yourself that it will work for you. Once you have things down pat, you
can alter a few of the parameters and get fancy.

Sit down and make a clear plan of action using the meter and grail
system of entry and exits. Make yourself do it on a demo first. Apply a
money management system that works for your personal situation
and apply the rules diligently. It won’t take long. You will begin to see
how to make money in forex the first week.

Test the ForexGrail out on a demo until you have satisfied

yourself it works. Always keep leverage low and give each trade
time to work for you. Do not bail out too fast. All good trades move
up and down. This is normal. Expect to stay in the market a while
depending on the time of day.

Notes:

Don’t just jump in right away. Watch for the steady progression of
the numbers on the meter. They will change all the time but still show
you strength and weakness.

Be careful of upcoming economic announcements. Most economic

reports will not move the market out of its prevailing trend unless
there is a very big surprise. Years ago, the market would spike
frequently on these reports but they rarely do now. The big ones to
look out for and you are advised to take your profit and wait them out
are reports like Nonfarm payrolls. Big reports can still shake things
up.

I wish you the very best life has to offer.

Tom Yeomans
tom@tradetime.ca

33
 Welcome to meter operation area of the
ForexGrail
How to install the Forexgrail software movie.

The simple, yet powerful meaning behind this easy to follow

system is the use of two simple indicators along with a powerful
tool to make you win consistently. Of course, not all your trades
will be perfect. However, using the ForexGrail system of entry and
exit along with a little common sense, will result in a much higher
percentage of winners than you have been experiencing. Everyone
should follow good money management principles and never risk
more than you can afford to lose. Start with a low leverage trading
account and gradually increase the size of your trades.

This is the link for downloading the software currency meter.

Save this file to your desktop

Operational Guide for the currency meter

The meter will run in all versions of Windows.

Setting up the currency strength meter for operation in the ForexGrail trading
System requires using a free DDE supplied by all brokers of MetaTrader. The
actual prices are not important in measuring currency strength so there is no
need to have an MT broker for live trading. You can use this meter with any live
trading account in Forex since the data is received by the meter and doesn't
interface with your live or demo trading account.

Even FXCM and FXDD offers MT as an option. There are several dozen brokers
using MT4 and all have the free DDE built in. The only tweak you need to do is to
activate the DDE by clicking under "tools" and select server tab, click the
"enable DDE" and you are finished. The MT4 platform must be running and the
DDE enabled prior to starting up the meter.

34
 All MT4 data feeds will work fine. (InterbankFx has been reported as faulty at
times). Your computer can have several MT4 platforms installed. There are many
MT4 brokers you can use but I prefer MIG. Any broker will work for now. There is
one provided through MT MetaQuotes for downloading directly through link
below or use one of dozens offering the MT4 trading platform with the free DDE
that is used to drive the meter.

http://www.metaquotes.net/downloads This is the official source website.

Step 1 Start your MT4 platform with DDE enabled.

Step 2 Double click on the file FXMeter.exe or shortcut icon.

You can install as many broker demos of MT as you like. It doesn't matter what
broker you use for feeding this meter. There are lots around and since it depends
more on strength than actual price, the differences in prices from broker to broker
do not affect it.

Please make sure to read everything before emailing me for support.

Go to:

http://metaquotes.net

http://www.gtltrading.com/

http://www.migfx.ch/

35
 Support page and common questions
MetaTrader is an excellent free platform. I have been using them for a long time and they have
them become a standard for a growing amount of brokers. I have not seen a better charting
package for Forex trading. Although my brokers do not currently use the MT4 platform, I always
have someone's version running on my desktop in demo mode. The prices may vary a little from
time to time but the overall strengths should measure about the same.

We are using the meter as an assistant to provide us with one piece of information. Take your
time and get to know the MT platform when you get the chance. For now, we only need a dde
datafeed. Make up a demo using whatever name you wish. To renew in 30 days, go to the tab
inside and create a new account. The information stays in so just redo amounts or whatever and
it will reactivate.

I can renew MT as often as I like and I can run several different versions from various brokers at
once on my computer.I use http://www.gtltrading.com All we need is a demo. I have no
firsthand knowledge of the company as a broker. I just use the demo. Maybe someone will let me
know. It doesn't matter what MT provider you use as long as they have a reliable feed.

They all mess up and restart every so often. it may be administration or just resetting the clocks.
Don't worry if it happens a few times a day on ling sessions. They usually last a second or two
and come back. Please don't ask me for help on the operation or maintenance of the MT
platform. They handle that help with using the MetaTrader platform. The platform is also
programmable and some person may come up with a way to automate. I don't know. I can't think
of how you would take the human aspect out of the process and make good trades. Too
mechanical and things tend to go haywire. It would scare the heck out of me.

You don't need to use them as your broker. You can renew your demo as often as you wish or
use a different version of MT. I haven't tried an MT based broker yet but the only complaints I get
about the feed is the interbank. Get used to seeing several MT brokers and you can choose
which ones you like. FXDD and FXCM have them now but I haven't heard anything about them
from members yet.

Renew MT4 account Go to "navigator" inside MT and right click on "accounts". Create a
new account.

See all currencies and tradable instruments in MT Click on "Market Watch" and right
click anywhere in the box to "show all"

The meter used in the ForexGrail system is a simple tool I know the Yen line is very hard
to see and should be corrected in future versions of the meter.

36
The box above indicates your feed from MT4 is missing. Make sure to launch the
MetaTrader platform and have the DDE enabled before starting the Currency meter

Common Questions FAQ

How much can you make with ForexGrail?

That's a common question . You can make as much as the market will give you under the
circumstances of the day. Any professional will tell you that the market will give what it
gives as often as it feels like. Everyone is different. All trades are usually unique. If they
weren't we would know we were going to win or lose would we? It’s our unique collection
of skills that will determine what you will make trading.

Some people begin with a little money and others have a lot. You have to get the silly
notion of making huge amounts of money in Forex when starting out. its not going to
happen. The very small amount of people I know who methodically took the time to
develop a good system and ran it several months proving a profit each time ended up
staying in the game for years with me. They found a system, applied good money
management, and didn't jump the gun whenever the market moved a bit. If you follow a
demo system for a few months with good results, you should be able to carry it out live
with approximately the same win/loss ratio. Take your time. This is a tough business that
can pay off well. If you don't run before you learn to walk. Take conservative trades and
never play with scared money.

Does the meter work in VISTA?

Yes. the meter works in all versions of windows now. The meter will work fine for all
people except Mac or Linux without a virtual machine interface.

Running Vista, use your start button to launch the FXMeter file and right click to show the
menu for running as administrator.

37
How often do the setups work?

I can usually see at least two setups a morning. I have often seen a few more at different
times of the day on various currencies. I have no way of knowing what's going to be
happening. All i can say is that when the correct conditions make themselves apparent, I
will be waiting, This is a waiting game folks. You wait for the right conditions or you don't
make a trade. Stick to that, and you'll be fine.

The idea here is to adopt a system and stick to it. Sit down and write out your rules for
entry and exit. You do it for yourself. You will find that just about any good system will
work if people only stuck to it. The ForexGrail is a good system. It becomes an excellent
system with the meter added to it. Everyone will begin modifying and changing after a
while. That's fine. As long as you do not trade with real money until you have perfected a
system that works on paper trading. If you can't make it work on paper, you don't stand
much of a chance with real money. If you don't have discipline, nothing, even the
ForexGrail won’t work for you.

There could be problems with operating systems that use different numerical
calculations. French, Russian, Finnish and many other language packs need to be
adjusted for operation. This meter uses US system. Definitions in Windows e.g. decimal
point is comma i/o full stop

Copyright 2008 3157313 NS LTD.

38
TERMS OF USE
THIS MATERIAL MAY NOT BE COPIED AND DISTRIBUTED WITHOUT
THE EXPRESS WRITTEN PERMISSION OF ITS PUBLISHER.

Copyright © 2008, 3157313 NS LTD. All Rights Reserved.

No part of this e-book may be reproduced in any form or by any means

electronic or mechanical, including photocopying, recording or by any
storage and retrieval system, without express written permission from its
publisher.

The ForexGrail™ System may not be gifted or resold to anyone, under

any circumstances. Only direct customers of TradeTime are allowed to
view or be in possession of this material. If you have purchased The
ForexGrail™ System from anyone other than TradeTime, or someone
officially authorized by them as a vendor, the seller is in violation of
terms that they have agreed to and you are in possession of an
unauthorized, illegal copy. If you believe that you have obtained an
unauthorized, illegal copy, or know of someone who has, please contact:
tom@tradetime.ca

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The information contained on our website and The ForexGrail™ Trading
System e-book is compiled for the convenience of the site’s visitors
and customers of TradeTime, and is furnished without responsibility for
its accuracy.

39
Trading any financial market involves risk. We at TradeTime are not
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and investment advice as to whether the information provided is
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Failure to seek professional personal advice prior to acting on this

information could lead to you acting contrary to your best interests and
could lead to the loss of your capital. The information provided is
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If hypothetical or simulated performance results are used, these

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40
The information provided in this e-book is not intended for distribution
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Hypothetical performance results have many inherent limitations, some

of which are mentioned below. No representation is being made that any
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One of the limitations of hypothetical performance results is that

they are generally prepared with benefit of hindsight. In addition,
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trading record can completely account for the impact of financial risk in
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41