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Email us at [email protected] Or visit our website, www.iTradeAIMS.com 2 Copyright 2011 © www.iTradeAIMS.com AIMS Stress Free Trading The Setup Imran & AIMSters 3 Copyright 2011 © www.iTradeAIMS.com Table of Contents WELCOME TO 7 CHAPTER 1: GETTING READY 11 The Strategy in a Nutshell 11 CHAPTER 2: THE AIMS INDICATORS 24 AIMS Indicator 1: The AIMSigator 25 Anatomy of the Alligator 25 AIMS Indicator 2: AIMS AO 33 AIMS Indicator 3: AIMS Box 40 AIMS Alert: AIMS Talking Alert 51 CHAPTER 3: THE SETUP 53 The Ground Rules 53 Putting it all Together 55 The Setup – waiting for the Dots 56 The Three Rules 56 Double AIMS Levels 62 Exit Setup 74 CHAPTER 4: MONEY MANAGEMENT 85 Money Management and Risk Percentage per Trade: 85 ROI: The Concept of Adding On 90 Glossary of Terms 95 4 Copyright 2011 © www.iTradeAIMS.com A Strategy based on The Science of Chaos A successful strategy already famous for its success on higher time frames Now applied to very short time frames using new techniques with even greater success A strategy to help master the Art of Trading Chaos on Forex Markets It is my intention to share this “Knowing” with you so that you may achieve great success Other Supporting Books to Read from AIMS Stress Free Trading AIMS STRESS FREE TRADING – THE MIND Trading is 80% Mental. In this book you will learn how to remain calm and relaxed during trading. It is vital for a trader to learn to effectively use the powers of the mind. You’ll be pleasantly surprised that techniques to fully utilise the powers of the mind are relatively simple compared to the very complex nature of the mind itself. 1 AIMS STRESS FREE TRADING – 10SEC ELLIOTT WAVE The market is not random; it is highly organised. Everything is energy and energy follows the path of least resistance. Everything has a usually-unseen underlying structure that defines the way it moves. The market also has a structure and this book is about that structure. Learn to trade with the structure of the market. 1 1 Available to premium members of www.AIMSForum.com. To upgrade please visit www.iTradeAIMS.com. 5 Copyright 2011 © www.iTradeAIMS.com ACKNOWLEDGMENTS It goes without saying that I could not have done it without my AIMSters Friends. Simple words cannot express my thanks to these outstanding individuals. Thank you Special Thanks to: - Grant Hardiman: for your insight and help in developing this strategy and iron clad discipline. Steve Norman: for helping with writing and finishing the revised edition of this book. Jim Czel and John Wimberley: for helping with moderating the forums, chat-rooms and excellent trading company. A salute to Dr. Bill Williams ABOUT THIS BOOK My main job in this book is to show you a unique strategy of trading the currency markets. It provides a solution for Forex traders. It shows simple techniques that when mastered, collectively put you on the path to a true trading expertise. I show you step-by-step how to create a setup and trade it in the best possible way. I show you that there’s a simpler, better way to trade the Forex markets. This book is designed for beginners and experienced traders who want to become successful. What all traders have in common is an ongoing effort to improve their trading efficiency and profitability. Nearly all traders find themselves searching for the illusive Holy Grail system. This book shows you that there really could be a Holy Grail to Forex Trading and that it is not a hidden secret. In this book you will learn how to successfully trade Forex Markets using AIMS Stress Free Trading Strategy: a complete trading system. It is part of a package which also includes AIMS Indicators for Metatrader 4 platform. To make full use of information provided in this book, the reader must have access to the indicators package. In Chapter 1: Introduces the strategy In Chapter 2: You will learn about the indicators In Chapter 3: Explains the use of the indicators and ‘The Setup’ In Chapter 4: You will learn about money and risk management along with position sizing. Let’s begin! 6 Copyright 2011 © www.iTradeAIMS.com Introduction to You have at your hands an opportunity to learn a simple yet powerful trading strategy. AIMS Stress Free Trading Strategy has been tried and tested by thousands around the world with great success on all kinds of markets, including stocks, futures, commodities and currency markets. Markets keep changing constantly but the underlying structure of the market remains almost the same. We find that the time frames that we have chosen to trade never stop trending. We often grab very lucrative trading opportunities 2-3 times a day. In this book, you will learn how to apply trading Chaos to Forex on shorter time frames (thoughthe strategy can also be effectively applied to higher time frames). Rest assured, you will not be disappointed. First you need to accept the fact that trading is simple. LIFE IS REALLY SIMPLE, BUT WE INSIST ON MAKING IT COMPLICATED. Many people immediately have their “aha” moments. They grasp the idea relatively quickly, yet others take longer, but eventually they all get it. One thing that everyone agrees on, whether its trading the financial markets or any other business: trading success requires consistency. I have a formula: PATIENCE + DISCIPLINE = CONSITENCY Success in trading can not be achieved without consistency. Every time you take a trade following the rules of your system, you move one step closer to your destiny. Every trade is an achievement as long as it is taken according to the rules of your system. To be successful in trading, you have to consistently trade the system as it is supposed to be traded. It really is simple but without consistency and the right mind-set, it might be difficult to say it is easy for all. I know it is not. I also know that it can be made easier. Ironically, in life the simpler things are at times the hardest to achieve. This is not hard work, it is a new way to see the markets. Most of us perceive the market as an unfriendly place, but it is not - the market is neutral. I suggest we shift our perspective about markets from a dangerous and unfriendly place, to a friendly and neutral place. 7 Copyright 2011 © www.iTradeAIMS.com Remember what Einstein said: “The most important question we should ask is … “IS THE UNIVERSE A FRIENDLY PLACE?”. Your answer to this question will fundamentally determine your trading success and, indeed, success in all aspects of your life. Happiness, creating success, great relationships, money, health and wealth, everything. Your answers set in place your belief system. To understand the markets, all you need is a paradigm shift - for many a quick shift, for others it takes a bit longer, but it does happen. I’m not asking for hardwork, as no hard work is required. Just be open to change; be open and ready to accept “New Incoming Information”; relax and experience the change. “I HAVE FOUND THAT WE HUMANS HAVE TWO INNATE TENDENCIES: 1 – WE TEND TO OVERCOMPLICATE EVERYTHING WE TOUCH AND, BECAUSE OF THAT, 2 – WE CANNOT SEE THE OBVIOUS”. BILL WILLIAMS I have learnt, through working with people, that the only way to be consistently successful is to establish a firm belief in your system. A strong belief system paves the path towards the state of “knowing”. A firm belief system can be created by trading your system religiously, repeating the same processs over and over, day in day out. So I urge you to trade the system as it is supposed to be traded: trade the Setup and only the Setup. To do that, we need to learn and thoroughly understand the Setup. The Setup is created when a certain set of rules are in place and a certain picture is created. We create and trade a certain picture that we call The Setup. Essentially we use only three simple rules (referred herein as “the Three Rules”) to create our Setup. It is important to understand the logic behind the rules before applying. Again, it’s just a pattern recognition exercise, it is simple. This books attempts to discuss and explain the Setup and the Three Rules. Please read this manual carefully and keep in mind that it’s not rocket science. Take it easy, relax and tell yourself: “I’m going to learn a simple way of trading”. Say to yourself and accept that it is simple. “IT IS THE SIMPLE THINGS IN LIFE THAT ARE THE MOST EXTRAORDINARY; ONLY THE WISE IS ABLE TO UNDERSTAND THEM.” 8 Copyright 2011 © www.iTradeAIMS.com Important Notes and Actions to Take: • I assume that you already know a bit about trading in general. However, if you are new to trading please consider visiting http://www.babypips.com WWW.AIMSFORUM.COM: STANDARD OR PREMIUM MEMBERS ONLY: • Please visit www.AIMSForum.com and register a new account. Registration requires validation which is a manual process so please allow 24hrs for activation. • Updated templates and indicators are available for download in the Forum. • If you do not understand any topic or concept please do not hesitate to ask questions in the Forum. I do a better job replying to forum posts than emails and I appreciate questions asked via the Forum. START A JOURNAL: • I strongly recommend starting a journal - it has many advantages. Take pictures of your trades and record your comments about your psychological and emotional states of minds. Try to record, in words, how you felt at that time about that trade. It is a very effective tool for learning. Please give more attention to the trades where you followed all the rules correctly and give less attention to the trades taken otherwise. Remain disciplined 100% of the time. AIMS BLOG: • I encourage you to visit my Blog at www.iTradeAIMS.com as well, to enhance your understanding of the strategy. The blog is a free resource and a great knowledge base. DEMO TRADING: • Start by trading a demo account, until you are completely comfortable and confident with AIMS and Metatrader – this may take more than three months for some; others just a few weeks. When you are consistently profitable on demo, start trading a live account with micro lots, gradually increasing your lot size as you gain confidence. • If you do not have a Metatrader platform, search for Forex brokers such as Alpari, FX Pro, FXCM, FXDD, etc. and download a free demo from their website. 9 Copyright 2011 © www.iTradeAIMS.com SPECIFIC TERMINOLOGIES, WORDS OR PHRASES: • You will likely find some specific terminologies, words or phrases peculiar to this system or Forex in general, that you may have not heard before. When you come across such, please check the Glossary or, if its not covered there, I suggest you Google the word or phrase, before continuing to read . Alternatively, feel free to ask in the forum. • Many of people might require two or three reads of this book. It’s a new concept, so it is important to read it as many times as you need, for all the information to sink in. • If you have any comments or feedback please do not hesitate to contact us via the forum. “Trade What You See Not What You Think, With An Attitude Of Gratitude” It really is simple I WISH YOU MANY MONEY-FILLED PIPS. HAPPY TRADING AND HAVE FUN! Imran & AIMSters www.iTradeAIMS.com www.AIMSForum.com 10 Copyright 2011 © www.iTradeAIMS.com