First Post of FDM System

After months of developing, backtesting and forward testing the often mentioned "Forex Day Monster" system, I'm posting the first chart of a trade I took using FDM the other day. For those of you unfamiliar with my concept for this system, it came out of many traders who asked me about using Forex Profit Monster on low time frames like 5 and 15 minute charts. I developed the original Forex Profit Monster system to trade on higher time frames (1 Hour and above) and it is quite successful at that, but it was never really designed to handle the fast cycles and "noise" that you find on the lower time frames. The requests from those short term traders did however give me the idea to put the same principles to use in a new system designed for short term daytrading and that's how Forex Day Monster came to be. After developing some new proprietary indicators and using them in conjunction with some of the Forex Profit Monster indicators, here's the new system:

As you can see it looks similar to FPM, but FDM is made for daytrading. I've gone through several versions of this system already... and truth be told it looks NOTHING like the original version, but I am very happy with the way it works. It's designed to be used on the 15 and 30 minute charts and can be used on any pair, although I've found it works best on the majors because they have the best combination of volume, volatility and stability. The trade above was taken just the other day on the USD/CHF and is a good example of a trade you may find once or twice a week on a pair. The other trades you may get may give you smaller wins of 10-50 pips closing at support/resistance. Losers are usually 10-30 pips and are on average about 2.5 to 3 times smaller than winners, giving you an excellent risk/reward ratio. I've been backtesting and forward testing this system the most on the EUR/USD as it offers the smallest spread along with the volume, volatility and stability mentioned above which is extremely important when you are daytrading. Also, this system because it is a daytrading system relies heavily upon time of day. I only trade this system from well after the Tokyo open until the New York close... in other words mostly during the European session.

I'm very excited at the possibilities of combining the Forex Profit Monster system for my long term trading and the new Forex Day Monster for short term day trading!

For those interested in the FDM daytrading system, it should be available for sale within the next week or so... keep checking this blog! For those of you who haven't used the Forex Profit Monster system, I recommend you try this system first... you'll find more information about it on the website... www.forexprofitmonster.com.

Best of luck in your trading...

Jim