RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT

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2 RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any financial market. The contents of this material are for general information and educational purposes only [contents shall also mean the website or or any website ( the sites ) the content is hosted on, and any correspondence or newsletters or postings related to such website]. Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using the product, ideas and techniques. We do not purport this to be a get rich scheme. Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed in this report or on or on the sites. Past performance is not indicative of future results. By purchasing any content, subscribing to our mailing list or using the website or contents of the website or materials provided herewith, you will be deemed to have accepted these terms and conditions in full as appear also on our site, as do our full earnings disclaimer and privacy policy and CFTC disclaimer and rule 4.41 to be read here with. So too, all the materials contained within this course, including this manual, whether they appear on our domain(s) or are in physical form, are protected by copyright. "Warning: The unauthorized reproduction or distribution of this copyrighted work is illegal. Criminal copyright infringement, including infringement without monetary gain, is investigated by the authorities and is punishable with imprisonment and a fine." We reserve all our rights in this regard. Alaziac Trading CC, in association with the sites, content, and its representatives do not and cannot give investment advice or invite customers or readers to engage in investments through this course or any part of it. The information provided in this content is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program and method. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are material points that can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results. We reserve the right to change the set terms and conditions without notice. You can check for updates to this disclaimer at any time by visiting or Governing law: this policy and the use of this report / course / DVDs / ebook, provided in any form, and any content on the website are governed by the laws of the Republic of South Africa. If any dispute arises the parties have agreed to resolve it with the help of an arbitrator in the following location: Durban, South Africa. Further details on this are found under the Terms and Conditions on our site. Please ensure you have read and agree with all Terms and Conditions as set out on our site before using any of the materials. Your use and reliance on the materials is based on your acceptance of such Terms and Conditions and policies as appear on the site. 2

3 The LEVELATOR PRO Method In this report, we will discuss a system called the Levelator Method. We are going to use an indicator called the Levelator that will identify several levels that appear between a swing high and a swing low. You can trade this method on any timeframe and on any currency pair. This also works on non-forex charts, so if you trade Oil or Gold, you are still good. System Components & Indicators Timeframes: All Timeframes Currency Pairs: All Currency pairs, preferably ones that are moving nicely and not moving sideways. Indicators: 1. 2ColorMA 2. Levelator 3

4 Before we get to the charts and the system itself, you must download and install the indicators. You will find a Levelator Autoinstaller. This will automatically download and install your indicators and a Levelator template. Chart Setup Applying the Levelator template to your charts. 1. Open a new chart. 2. Click the Template Icon on the toolbar. 3. Choose Load Template... 4

5 4. Click on the Levelator template in the selection. 5

6 Your chart will now look like this: Or maybe like this: 6

7 Explanation of the Indicators 2ColorMA: This is the red and yellow line that runs through the price. This is the directional indicator that will tell us in what direction the market is likely to go. When the 2ColorMA is red, we will be looking to sell. When the 2ColorMA is yellow, we will be looking to buy. 7

8 Levelator Indicator: The Levelator will give us levels in which we can: 1. Buy or sell. 2. Place a stop loss. 3. Place a take profit order. By default, the Levelator will look to identify the lowest low and the highest high over the last 100 candles and then connect them. Once a high and a low has been identified, the Levelator will draw 6 equally spaced levels or zones between the high and the low. If the market has been moving upwards, the zones will be colored Orange. If the market has been moving downwards, the zones will be colored Blue. At each line that separates the sections, you will see a yellow number. This is the number of pips the current market price is away from these levels. These numbers will continually change as the price of the market changes. 8

9 Notes Before We Get Started It's important to understand that in a buy trade or a sell trade, it doesn't matter if the Levelator is orange or blue. Once price has moved through a zone to touch the next level, the color of that zone will disappear. You will see a lot of zones that have disappeared to leave the chart color to show through. A Blue Levelator will have disappearing zones as the price rises upwards from the very bottom to touch the next upper levels. An Orange Levelator will have disappearing zones as the price falls downwards from the very top to touch the next lower level. 9

10 Long Entry Rules Long Example 1: 1. The 2ColorMA must be yellow. 2. The price on the chart must touch a few pips above the closest level. 3. The Take Profit will be just below the next level above the current price. 4. The Stop Loss will go just below the next level below the current price. 10

11 Long Example 2: 1. The 2ColorMA must be yellow. 2. The price on the chart must touch a few pips above the closest level. 3. The Take Profit will be just below the next level above the current price. 4. The Stop Loss will go just below the next level below the current price. 11

12 Short Entry Rules Short Example 1: 1. The 2ColorMA must be red. 2. The price on the chart must touch a few pips below the closest level. 3. The Take Profit will be just above the next level below the current price. 4. The Stop Loss will go just above the next level above the current price. 12

13 Short Example 2: 1. The 2ColorMA must be red. 2. The price on the chart must touch a few pips below the closest level. 3. The Take Profit will be just above the next level below the current price. 4. The Stop Loss will go just above the next level above the current price. 13

14 The Levelator will draw levels automatically based on the last 100 candles. You can change this in the properties window. You can also have the Levelator automatically update itself for each new candle. This too can be set in the properties box. The auto-update feature is turned off by default. To get to the properties box, first you need to open the Indicators List box. To do this, press Ctrl-I on your keyboard, or right-click on your chart and click the Indicators List option. Either way will open your indicators list box. Chose Levelator and click Edit. This will open the Levelator properties box. 14

Under the Inputs tab, you will see the Bars Back setting. This is the Levelator look-back number. The default is set to 100 bars, but you can change that to anything you like.

15 Under the Inputs tab, you will see the Bars Back setting. This is the Levelator look-back number. The default is set to 100 bars, but you can change that to anything you like. The Levelator will look for the highest high and the lowest low within the last 100 candles unless you change that number. Next, the AutoUpdateMainLine is set to false by default. If you set it to true, the Levelator will automatically adjust itself for every new bar that is created. 15

When the Levelator is blue, the diagonal line will be red. When the Levelator is orange, the diagonal like will be blue.

16 With the AutoUpdateMainLine setting remaining on false, you can manually adjust the Levelator to the highs and lows that you deem more appropriate. Double-click on the diagonal Levelator line to select it. When the Levelator is blue, the diagonal line will be red. When the Levelator is orange, the diagonal like will be blue. Once the line is selected, you will see a small box on the top, the bottom and in the middle of the line. Now that the line is selected, you can drag the top and the bottom to the new levels you prefer. 16

17 Advanced Section In this section, we are going to look at 3 different ways to take a good system and make it great. Filter First, we will look at a method how to filter the trades. As you know, the market can`t move in one direction for ever, so eventually we are going to get losing trades. Using a filter to help us determine if the market momentum is failing is going to save is from losers as the market reaches its top or bottom. Adding To Your Position Next, we will look at a way that we can use the levels of to catch much more than the average trade. We can double the size of the trade but earn 3 times the profit. Trailing a Stop Loss Finally, we will look at a way to manage the Levelator trades by reducing the risk on each trade with a Trailing Stop technique. Reducing the risk on each trade you take can sometime mean the difference between making and losing money. It`s also nice to know a method that will allow the losers to be smaller than the winners. This will encourage you to keep trading when you have a rough patch, knowing that you can easily get back what you have lost. Imagine putting them all together: Taking fewer losing trades, al the while keeping the losers small but adding to the winners to make them huge! Sounds like a good time! 17

18 Filtering with the MACD In my opinion, the MACD is maybe the best tool a trader has to measure momentum. When the market loses its momentum, there is a good likelihood of it stalling or turning around. With your Levelator chart open, click on Insert at the top of your charts: Then click on Indicators > Oscillators > MACD Under the Parameters tab, the settings should remain as the default, 12, 26, 9 Then click OK. 18

19 This is what you will have: From here, it gets easy! The silver MACD has a red moving average running through it, this is called the Signal Line For Short Trades When the conditions are right to trade the Levelator short, we want the grey bars of the MACD to be UNDER the moving average. Together, we want the moving average on the to be red and for the MACD bars to be under the signal line. For Long Trades For long trades, we want the moving average on the Levelator to be yellow and for the MACD bars to be above the signal line. 19

20 Short Trades Filtered By The MACD. In the image below, you will see the is looking for short trades as the moving average is red. However, since the MACD is above the signal line, we will no longer look for short trades. Any short signals that do occur during this period of time will not have the momentum to see it through to the next level. Looking back through the image, you can see how slow the market moved when the MACD was above the signal line and how aggressively it moved when it was below the signal line. If you are in a short trade when the MACD moves above the signal line, it's ok, this doesn't mean you will lose the trade, but it does mean it might be a struggle for the market to get to its target level. You do have the option of closing the trade with a small loss. 20

21 Long Trades Filtered By The MACD In a market that is moving up, we know that it can't keep moving up forever. In the example below you will see a section of the chart where a long trade was filtered out of the equation because the MACD was below the signal line, although the Levelator moving average was still yellow. The upward momentum has started to fail, and as a result, the market no longer has the energy to continue moving in that direction. Taking a long trade when the MACD in below the signal line is risky. It doesn't mean that the trade won't work out, but it does mean that the probabilities of it working have been greatly reduced. As much as I can, I want to keep the odd in my favor. 21

22 Adding To Your Position Adding to your position is a fancy way of saying that you are taking another trade in the same direction as the first one. Most traders will place a trade and then that's it. That trade either wins or loses. Fair enough. With the Levalator system, we get an opportunity to place a second trade in the same market move, And what's even better, is that the winning on that trade will be 3 times as much as what we would have normally gotten. How this works: We will trade from one level to the next. Instead of closing the trade when we get to the target level, if we think the market can keep moving, we will open a second trade. The second trade will target the level above its entry and the first trade will also target the same level. The second trade will have a stop loss placed at the level below the entry level, and the stop from the first trade will also match that of the second. Trade 1 and 2 will have the stop loss at the same place. Once both trades reach the target level of the second trade, both trades will be closed. If, for example, the target level was 10 pips away from the entry: Trade 1 would take 10 pips from the first level and then another 10 pips from the second level for a total of 20 pips. Trade 2 would have taken the 10 pips it was aiming for. In the end there were 2 trades, a market movement of 20 pips, and a total of 30 pips collected. 22

Adding To A Short Trade In the example below, let's run though the process of adding to your position. Step 1: Trade 1 is entered at the bottom of Trade Area 4.

23 Adding To A Short Trade In the example below, let's run though the process of adding to your position. Step 1: Trade 1 is entered at the bottom of Trade Area 4. Stop for trade 1 is placed at the top of Trade Area 4. Step 2: Market reaches the bottom of Trade Area 3. Instead of closing trade 1, we keep it open. Trade 2 is placed at the bottom of Trade Area 3. Stop for Trade 2 is placed at the top of Trade Area 3. Stop for Trade 1 is moved to the top of Trade Area 3. Step 3: Market reaches the bottom of Trade Area 2, this is the target for both trade 1 and trade 2. Both positions are closed. As a result, trade 1 won 2 times more than trade 2, but together, both trades amount to 3 times more than a single trade. 23

Adding To A Long Trade In the example below, let's run though the process of adding to your position. Step 1: Trade 1 is entered at the top of Trade Area 4.

24 Adding To A Long Trade In the example below, let's run though the process of adding to your position. Step 1: Trade 1 is entered at the top of Trade Area 4. Stop for trade 1 is placed at the bottom of Trade Area 4. Step 2: Market reaches the bottom of Trade Area 2. Instead of closing trade 1, we keep it open. Trade 2 is placed at the bottom of Trade Area 2. Stop for Trade 2 is placed at the bottom of Trade Area 3. Stop for Trade 1 is moved to the bottom of Trade Area 3. Step 3: Market reaches the top of Trade Area 2, this is the target for both trade 1 and trade 2. Both positions are closed. Trades 1 and 2 were winners meaning our trade earned us 3 times more than a single trade. 24

Trailing Your Stop Loss Trailing a stop loss is the best way to reduce the risk on any trade you take. I never want to lose the entire amount that I put on a trade.

25 Trailing Your Stop Loss Trailing a stop loss is the best way to reduce the risk on any trade you take. I never want to lose the entire amount that I put on a trade. If I risk 2% with my initial stop loss, I don't ever want to give that entire amount away. We have to find a away to move the stop loss toward the entry level, ideally for each new candle. There are several ways to do this, but there is one that I like best. I will be adding a 10 period exponential moving average (10 EMA) to the highs and to the lows of the price. This will give us a moving average channel. For sell trades, we will manage the trade using the 10 EMA of the highs. For the buy trades, we will be using the10 EMA of the lows. 25

26 Adding the moving averages With a Levelator chart open, click the Insert option at the top of your charts. Then click on Indicators > Trend > Moving Average Under the Parameters tab, the settings should be as follows: Then do it again but change the Apply to: to Low 26

As each new candle opens, there will be a new section of the 10 EMA of the highs.

27 Managing A Short Trade When we are in a short trade, we will be using the 10 EMA of the high to manage the trade. Once a trade is entered, the stop loss will be placed just above the 10 EMA of the current candle. As each new candle opens, there will be a new section of the 10 EMA of the highs. Each time we get a new section that is lower than the section before it, move the stop loss lower to meet the new section. This will always be the end of the moving average and it will be above the currently forming candle. 27

In the example below, the chart has been broken into 4 different spots where the stop loss was managed (showing it for each candle would be far too cluttered).

28 In the example below, the chart has been broken into 4 different spots where the stop loss was managed (showing it for each candle would be far too cluttered). The initial stop loss would be placed at whatever location was closest to the entry, either the upper level or the 10 EMA of the highs. In this example, the upper level was closest. Next as each new candle starts, there will be a new piece of the 10 EMA of the highs. If this is lower than the upper level, then we start to manage the stop along the 10 EMA of the highs. In the chart example, when the trade finally hits the target of the lower level, the stop loss was in profit! At that point, we would have won on that trade no matter what happened. In sell trades, we will place out stoop loss just above the 10 EMA of the highs, AND THEN ADD THE SPREAD. If the spread is 2 pips, we add on top of the stop placement. 28

29 Managing A Long Trade When we are in a long trade, we will be using the 10 EMA of the lows to manage the trade. Once a trade is entered, the stop loss will be placed just below the 10 EMA of the current candle, or just below the lower level. In the example below, the 10 EMA of the lows is quite a bit lower than the lower level, so we will use the lower level to position our stop loss. As each new candle is opened, the stop loss will be trialed along the 10 EMA of the lows. We want to wait until the 10 EMA catches up to the lower level where the initial stop has been placed (if it was closer to the entry), but once the 10 EMA moves closer to the entry, the stop gets moved along it. This is the nicest way to move our stop loss. it's quick and easy to do and it reduces the risk on our trades in a really effective way. 29

30 That's all there is to it. This is a nice little system with very defined entry and exit rules. Try it out, it has about a 60% win ratio if you are trading with the direction of the trend as determined by the 2ColorMA. The manual features of the indicator can have you trading the levels you see fit, this aspect of the system is very customizable and will allow you to trade your way. Best of luck to you! 30

Russ Horn Presents. Forex Money Bounce

Russ Horn Presents. Forex Money Bounce Presents Forex Money Bounce RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer