By Omar Eltoukhy
FOREX AND DIVERSIFIED TRADING
by Omar Eltoukhy
Q) What is the Diversified Trading System?
A) The Diversified Trading System (DTS) is a complete set of tools used for trading different markets including Futures, Forex, and Stocks. It consists of 3 separate market approaches:
1. The Eagle Trend System: Capitalizes on longer-term trend trading to capture
larger moves when the market is trending.
2. The Falcon Swing System: Takes advantage of swings in the market to trade
the daily back-and-forth movement of the market resulting in medium to large size trades.
3. The Hawk Scalping System: Scalps the market to take smaller trades with a
higher frequency and can even be used when market is choppy and not tradeable with other systems.
Q) Why Forex?
A) The foreign exchange market (forex) is the single largest market in the world and trades with higher volume than any stock market meaning excellent liquidity, price action and execution available to the trader. It is open 24 hours a day for 5 days a week allowing a much larger window of opportunity to trade successfully around YOUR schedule rather than having to focus on just a few specific hours a day. The forex market also allows large leverage which means you can make meaningful gains even with a smaller account. In addition to all that, forex trades as a commodity which makes technical analysis a very successful approach to trading this market.
Q) I Heard DTS Has a Really Great Track Record With Futures But I Want to Try Forex as Well. I Can’t Afford Two Systems Though, What Should I Do?
A) You do not need to buy a different DTS system to trade different asset classes. Whatever DTS system you own – The Hawk Micro Scalper, The Falcon Swing Trader or The
Eagle Trend Trader can be used to trade forex, futures, and stocks. Flexible, powerful. The training material and expert guidance will be available to you whether you wish to trade futures, forex or BOTH! One price / one DTS System gives you everything you need to be on the road to successful trading in the market of your choice.
Q) I’m New To Trading and Everything I’ve Seen So Far Has Been Very Complicated and Hard to Use. Is DTS easy to learn and use?
A) The experience of DTS owners indicates that they fully grasp how to use the system within a few weeks. New traders included. When you buy a DTS System you get immediate and unlimited access to the futures and forex video training by Erich Senft, CTA and Omar Eltoukhy, respectively. If anything seems unclear or would like to ask questions, Erich, Omar, and Stephanie are available on the Indicatorwarehouse.org forum to answer your questions – forever. That means unlimited questions. It’s really up to you how much you want to glean from Erich, Omar, and Stephanie.
Not only is there the training but you get unlimited access to Erich’s Trading Room. Monday to Friday from 9:30 to 11:30 AM, EST, as well as Omar’s Trading Room which is once weekly on Tuesdays to trade forex during the London or New York open.
So, no matter if you are new to trading or very experienced, we are there to help you advance at a pace that suits you.
Q) I’m Already A Successful Trader and I Spend A Great Deal Of Time In Front of the Computer Making it That Way. Why Would I Want DTS?
A) Diversified Trading System, although easy enough for a novice trader to use, is extremely powerful in the hands of someone with experience.
I was already using time-tested, successful methods when I first tried DTS, and now I use DTS full-time to make all my manual trades. I have integrated DTS into my own style and methods of technical analysis and has not only made my trading more powerful, but I now spend a fraction of the time in front of the computer to make those trades. They always say “Work smarter, not harder.” DTS is the perfect way to accomplish that.
Q) What is the Best Indicator To Use?
A) Adam, Erich, and the programmers have done everything they can to make DTS “the best indicator.” Adam with his intimate knowledge of the needs of traders having been a vendor since 2009. Erich with his experience with just about every system that has come along for the last 17 years, and the programmers – who build and refine every design specification.
But of course, we are bias! Nonetheless, you won’t find any system for Ninja Trader that compares to DTS in terms of accuracy, ease of use, training, live room access, and support. We’ve made sure of that!
As any successful trader can tell you, price action is the most “honest” and relevant indicator one can use in technical analysis. One of the biggest features of DTS for me was the fact the system’s core was price action based while being enhanced with complementary indicators to give insight into the momentum in the market.
Q) What Timeframe Does DTS Use?
A) DTS uses a custom, modified version of the Renko Bar. A Renko Bar only paints when the market actually moves the pre-set distance the bar is adjusted to and removes time from the equation.
This gives the trader a “pure” view of price-action and filters out the “noise” in the market from normal, volatile ups and downs in short term price action, offering a clearer picture of what the market is really doing and better decisions can be made from that information.
Interestingly enough, Renko can be adjusted larger or smaller to simulate bigger or smaller timeframes without losing the strength of seeing what price is actually doing. Indicator Warehouse’s custom version of this charting technique (The Mean Renko Bars) gives the price action accuracy of a traditional Renko, while still remaining nimble enough to react quickly to direction changes like traditional candles.
Q) What Pairs Should I Trade?
A) It’s important to trade the pairs that have the most volume. This leads to
smoothest price action, lots of movement generally and the best execution from the large order volume. I recommend sticking to the majors, and some others. The pairs I personally trade are the Eur/Usd, Gbp/Usd, Aud/Usd, Eur/Jpy, Aud/Jpy, Eur/Aud and Eur/Cad and sometimes the Usd/Cad. These pairs give you numerous opportunities to find trades throughout the week and enough variety that you can avoid any single currency if there is important news being released for that region. I also recommend for beginners trading the Eur/Gbp since its daily ranges are smaller and moves aren’t very volatile.
Q) What Time of Day Should I Trade? Do Some Pairs Trade Better At Certain Times of Day?
A) The best time to trade is when the currency pairs are the most active. This happens usually when there is the most volume in the market. This occurs from about one hour before London opens till about one hour before the NY currency markets close. All pairs can be successfully traded during this time on a normal day. Of course, the Asian session does allow one to trade the Yen and Australian crosses successfully as well. So, with the exception of just a few hours on any given trading day, you can find time for forex instead of trying to arrange your life around a small window to trade.
Q) How Can I Find the Answers to My Other Questions?
A) We are all dedicated to your success at using the DTS system. All owners of the system get top-notch training, personal contact and support for as long as they wish to use the system. To find out more, contact me directly at Omar@DTSForexSystem.com and I would be happy to assist you in any way I can.