THIS IS THE TRADING METHODOLOGY FOR

THE STEALTH FOREX TRADING SYSTEM

YOU SHOULD HAVE ALREADY READ AND APPLIED THE
INFORMATION IN THE SET UP DOCUMENT
IF NOT - DO SO BEFORE READING THIS

This product named stealth forex system, which

includes all written material contained within this
document, the custom indicators named LCD
and stealth buy/sell together with all of the
various set up combinations, (but excluding the
metatrader4 trading platform) hereinafter called
the system is and are copyright protected. You
the purchaser of the system are granted sole
personal use of the system. You may not copy,
hire or sell or in any other way promulgate any
part or parts of the system without prior written
and documented consent of the owners of the
system.

TRADING METHOD
BE SURE TO READ AND UNDERSTAND THE DISCLAIMER AT THE BOTTOM OF THIS
DOCUMENT
WHEN NOT TO TRADE
Very Important
DO NOT ENTER A TRADE IN THE FOLLOWING CIRCUMSTANCES AS YOUR SYSTEM WILL
NOT FUNCTION CORRECTLY - YOU WILL GET FALSE SIGNALS AND YOU MAY LOSE
MONEY
1. For STEALTH SCALPERS: Within 40 minutes before and after major financial news
releases. The market gets erratic before and after news releases so stay out and have a
break. There will be plenty more nice trades afterwards. There is a good free calendar of
news releases here: Economic Calendar
For STEALTH MISSION TRADERS either exit your trade in profit before news releases
ready to re-enter after the volatility has subsided or make sure that you have brought up
your stops to the previous STEALTH SIGNAL. SEE TRADING INSTRUCTIONS FOR MORE
DETAILS.
For STEALTH SIMPLE SYSTEM (ideal for absolute beginners) do not enter a trade within 1
hour either side of major news releases.
For STEALTH CREAMER SYSTEM see instructions later in this document.
2. When VOLUME is low. These are the green vertical lines at the bottom of your price
chart (referred to as grass). If the grass is short...you will get false signals and there will
not be enough profit to be worth the risk of entering the trade. If you can barely see the
grass or if the grass is at equal height, like a perfect lawn, this is a no trade time. You are
looking for uneven tufts. This should be the first and last thing that you check before
making your trade, and with a little experience you will instantly know if there is sufficient
trading volume. (SEE PIC ON NEXT PAGE)
Also look at what price has been doing during the past few hours. There can be periods
when price moves sideways in a very tight range. These are bad trading times and on days
like these you should turn off your PC and go do something else.

3. STEALTH SIMPLE SYSTEM & STEALTH SCALPERS. Do not trade on Fridays after 4pm
GMT or on Sundays (before 2am GMT Monday).

STEALTH MISSION TRADERS. Make sure that you exit all positions before the close for
the weekend.
It is vital that you decide which strategy suits you best. DO NOT try to mix the methods. Either use
BEGINNERS SIMPLE SYSTEM or STEALTH SCALPING SYSTEM or STEALTH MISSION
TRADE or STEALTH CREAMER SYSTEM.
USE A DEMO ACCOUNT UNTIL YOU HAVE MASTERED THE SYSTEM AND HAVE PROVEN
TO YOURSELF THAT YOU HAVE THE DISCIPLINE TO TRADE IT PROPERLY AND
PROFITABLY

MONEY MANAGEMENT
STRONG MONEY MANAGEMENT IS AT THE HEART OF EVERY GOOD TRADING SYSTEM

One of the quickest ways to lose money when trading (even with a great system like this) is
the failure to observe good money management techniques. You cannot learn too much
about money management.

Here are some of the most important rules.

Never risk more than 2% of your account at any one time. NOT EVER!!!!!! Learn to
compound your winnings and over time you will be able to trade more lots whilst still never
risking more than 2% of your account.

Never add to a losing position or double up after a losing trade. Stay calm, focused and
stick to the system.

Always use a stop-loss.

Never widen your stop-loss. Stick to the formula.

As your account balance grows, consider reducing your leverage.

Capital conservation is king. If you suffer more than 3 loses in a row (its rare but can
happen) take a break from trading. When you return re-read the system to make sure that
you are not overlooking something.

Never try to take revenge on the market. Losses are as much a part of trading the Forex, as
are wins. Learn to accept your losses without anger or dismay. If you stick to the system,
over time, you should have many more wins than losses.

Trading takes time, patience and discipline. Do not jump into a trade just because price has
made a sudden large move. Always wait for the proper signal. Likewise do not worry about
trying to capture every last cent of a price movement.

Traders who become obsessed with always trying to trade the whole move usually lose
money.

STEALTH SIMPLE SYSTEM

Using only the 1 hour chart, watch for a buy (blue) or sell (yellow) bar to start forming on
the LCD only.

Check that there is volume (grass tufts), (and that price has not been trading in a narrow
range over the past few hours) and enter a trade in the direction indicated.

Immediately place your stop-loss at the tip of the Stealth symbol on the opposite side of
the price line to your direction of trade (plus the spread).

Continue to move your stop-loss to the tip of each new Stealth symbol as and when the
trade moves in your favour (always remembering to add the spread).

Continue this process until you are stopped out automatically usually with a nice profit,
or the LCD on the 1 hour chart, changes colour.

Before entering the trade make sure that should your stop-loss be hit, it would not result in
your losing more than 2% of your account. If this is the case, wait for the next stealth to
appear and see if this gives a tighter stop-loss.

STEALTH SCALPERS: How to ENTER and EXIT a trade.

First check out the when not to trade parameters!
You may wish to also refer to the cascade screen shot

1. Start to hunt for a trade (I mostly trade the Eur/Usd because of the tight spreads) by
flicking through the 15minute then 5minute and finally the 1minute charts to identify a new
buy (green) or sell (red) bar on the Stealth buy/sell indicator on all 3 timeframes.

2. If the indicator is showing a red bar ON ALL 3 TIME FRAMES, be ready to enter your
trade for a SELL AND PLACE YOU STOP AT THE POINT OF THE PREVIOUS STEALTH
SIGNAL above price ON THE 1 MINUTE CHART PLUS YOUR SPREAD.
NB. 2 or even 3 Stealth symbols appearing together above price with a sell signal is a very
strong sell signal - providing you have volume.

Conversely, if the indicator is showing a green bar on all three time frames, be ready to
enter your trade for a BUY and place your stop at the point of the PREVIOUS STEALTH
SIGNAL BELOW PRICE ON THE 1 MINUTE CHART PLUS YOUR SPREAD.
NB. 2 or even 3 Stealth symbols appearing together below price with a buy signal is a
strong buying signal - providing you have volume.

Finally check that your buy or sell signal is in agreement with the LCD indicator and if so
enter the trade - providing you have volume.

An excellent place to enter a trade is when the 5 minute and the 15 minute Stealth BUY/
SELL and LCD are in agreement and the 1 minute Stealth BUY/SELL and LCD indicators
have both just changed to be in agreement with the 5 and 15 minute charts.

Stronger trades can be identified on all time frames when the LCD and the Stealth BUY/
SELL change colour at the same time.

If you see mixed signals, DO NOT TRADE.

3. Now you need to be patient. Sometimes good trades take a little while to mature. Keep
flicking through the 15 minute and 5 minute time frames (or better still, click the cascade
button) to make sure that the LCD indicator has not changed color on the 5 minute or 15
minute charts. If they have changed color, EXIT before your stop triggers.

4. As price moves into profit, keep moving your stops up to the preceding STEALTH (These
are the next STEALTH SIGNALS TO APPEAR ABOVE THE PRICE LINE ON THE 1 MINUTE
CHART on a short trade (SELL).

Conversely, on a long trade (BUY) it is the STEALTH signals that appear below the price
line that are your markers to move your stops to (the point of the new STEALTH).

5. Keep moving your stops (always ONLY IN THE DIRECTION of your trade) in this way
(remembering always to add the spread) until eventually you will be stopped out, which is
great because usually, you will have been stopped out in PROFIT!! However, if before
being stopped out in profit, you find that the A.O. has reached an extreme level (it is
higher or lower than in previous cycles) and or you have two stealth signals on the
opposite side of price to your stop, and or the LCD indicator bar has changed color on the
5 minute or 15 minute chart TAKE PROFIT IMMEDIATELY.

6. If on the 1 minute chart, at the beginning of a trade, the Stealth buy/sell bar changes
color back and forth a couple of times, use the LCD indicator to confirm that the trade is
still good by looking on the 5 minute chart and the 15 minute chart to establish that the
LCD is still either YELLOW for a short trade (SELL) or BLUE for a long trade (BUY).

7. Price pattern very often forms an M shape (double top) before going down (SELL) and a
W shape (double bottom) before going up (BUY). Less aggressive traders may want to
wait until the second top or bottom has appeared on the 1minute chart before entering,
with a tight stop of 6 pips (plus spread).

The downside of waiting for this is that sometimes a double top or bottom will not occur,
but should this happen, do not worry, just wait for the next STEALTH signal to appear
above price on a short trade (SELL) or below price on a long trade (BUY).

8. Very occasionally, in times of high volatility a STEALTH signal may appear and then
disappear. If this happens and it is against your trade EXIT immediately as the signal will
reappear soon in a higher or lower position on the same side of price. If this happens
below price on a short trade (SELL) or above price on a long trade (BUY) take your profit!
Stay out of the market for a while until things settle down.

9. If your are a STEALTH SCALPER you do need to sit by your PC and watch your charts,
moving your stops for the duration of the trade. No going off to the shops until you have
secured your profit! Since this is a scalping system, should you suddenly be presented
with a fast decent profit Take it and say Thanks!

10. With practice and experience you will soon get into the flow of this system and find
that you can successfully pick winning trades time after time. JUST remember to keep
moving up those stops until you are stopped out in profit.

STEALTH MISSION TRADERS

How to enter and exit a trade

1. On the 1hour chart look and wait for the start of a buy signal (green bar) or a sell
signal (red bar) on the Stealth buy sell indicator.
2. Confirm that the LCD indicator is in agreement (blue for buy or yellow for sell)
An excellent place to enter the trade is when both the BUY/SELL and LCD indicators
have changed colour at the same time.
3. On the 1 minute chart wait for the BUY/SELL to change to a new colour in your
favour (this ensures optimum entry positioning)
4. Check that there is sufficient trading volume (grass)
5. Enter your trade. Immediately place your stop-loss at the top of the point of the
previous STEALTH signal on the 1 hour chart (above the price for a SELL trade or
below the price for a BUY trade), remembering to add the spread.
6. As the trade moves into profit move your stop as the next stealth signal appears
above the price in a sell trade or below the price in a BUY trade.
7. Keep doing this until you are stopped out in profit, which could be a couple of
hours, one day, a couple of days or a week!! However, if the AO indicator is starting to
reach extreme levels, you may wish to start positioning your stop loss by using the
Stealth positions on the 5 minute chart to lock in more profit before a possible
reversal.

You should note that when trading this system your stop-loss will be greater than a
stop-loss in the Stealth scalping system.

Before entering the trade make sure that should your stop-loss be hit, it would not result in
your losing more than 2% of your account.

S TE AL TH CR E AM E R ST R AT EG Y
S ET UP IN ST RU C TIO NS &
TR AD IN G R UL ES

T his strategy is for tradin g th e USD/JPY o nly an d is time sensitive. Yo u

should o nly use this strategy AFT ER 00.30am G MT .
First create a new 30 minute chart for the USD/JPY.
Now add the stealth BUY/SELL
Next add Bollinger Bands using the default setting. To do this, click
insert indicators Bollin ger b and s. Set the line thickness to a th icker
line (under ch arts indicator list then sing le click Bo llinger bands
edit select line thickness - accep t).
Your chart shou ld n ow lo ok like this:

If yo ur chart now looks like this save this set up as a template called
Stealth Creamer (char ts temp lates save as). Yo u will not g et the
vertical red and blue lines. T hese are just to sho w the trad e entr y time.

S tealth Cream er Trading Rules

Before we start lo oking at the trading ru les it sho uld be un derstood that
trad ing at this time of day is much mo re d ifficult. Th ere will b e days
w hen there is no set up for a trade and you sh ould learn to accept that. If
yo u do no t g et a g ood set up DO NOT b e tempted to trad e. As with all
forms o f trad ing, watching w hilst no t ho ld ing a po sition is still trading .
At 00.30 GMT Start to look for a trade set up. Dont p anic if you d o not
see a set up straigh t away, you have until 06.00am GMT to enter yo ur
trad e.
T he first thing that yo u need to do is to measure in p ips the distance
between the up per and lo wer Bo lling er bands. Yo u must have mo re than
23 pips betw een the upper and low er band. 23 pips o r less means n o
trad e yet. As time pro gresses, the b and s may open or close. T he 23 p ips
rule is ONLY for entry purp oses (See the NO T RADE screen sho t b elow ).
If yo u do have mo re than 23 pips between the b an ds you no w need to
w ait for a NEW BUY/SELL colo ur bar to appear. DO NOT trade unless
yo u get a NEW BUY/SELL signal.
If in the previou s co uple of h ours the BUY/SELL ind icator h as b een
chang ing colour b ack an d fo rth this w ill be a NO TRADE DAY.
W hen you g et a new BUY/SEL L sig nal (b ar chang es fro m green to red or
vice versa) wait for price to retrace to the centre line of the Bo llinger
Band s and then enter your trad e in th e direction ind icated b y th e Stealth
BUY/SEL L indicator (red for sell o r green for b uy).
Immed iately after entering the trade set yo ur stop lo ss to th e price
indicated b y the ou tsid e ed ge o f th e Bolling er Band +5p ips. W hen d oing
this en sure th at the outsid e ed ge of the Bolling er Band is at least 20
pip s + spread (should b e 22 or 23 in total) away from yo ur entry price. If
it is less than 20 pips + sp read w id en your sto p lo ss to 20 pips + spread.
Do not just set yo ur stop lo ss to 20 + spread on every trade. It is most
impo rtant to use the o uter ed ge of th e Bo llinger Band so lo ng as it is 20
pip s + spread or more.
Now set a T ake Profit ord er for 30 pips from yo ur entry price. Do no t try
to gain mo re. This strateg y has been well tested and 30 pip s is the
op timum take pro fit level for this type o f trad e (see fin al screen sh ot
below).
You no w need to let the trad e run its co urse. Go to bed or w atch T V o r
go out (if it is still early enoug h) and leave the trad e alo ne. Th e trade
may run all nigh t an d into the next d ay o r it mig ht end w ithin a few
ho urs. Either w ay, leave it alone. T he o nly exceptio n is if sh ortly after
entering the trade the BUY/SELL changes co lour again . In this case, exit
the trad e w hether in profit or no t.

C hec k y our tra de in the m o rning. O ne of th ree thing s w ill ha ve

ha pp ene d, yo ur tra de clos ed in pr ofit or it clo sed with a lo ss or it is s till
live. If it is s till live and the B UY/SELL h as not cha nge d, lea ve it to run. If
the B U Y SEL L ha s c hang ed co lou r, c los e the tra de , whe th er in pro fit o r
no t.
R ep ea t the s am e pro ces s tom o rrow eve ning .

Forex Risk Disclosure

Please read this carefully. If you don't understand any of the information provided in this disclosure or if you have any questions, please contact us. The National
Futures Association (NFA) and CFTC (Commodity Futures Trading Commission), the regulatory agencies for the forex and futures market in the United States,
require that customers be informed about potential risks in the forex market (see the information below).
Risks Associated with Forex and Trading
Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate
in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you
cannot afford to lose.
There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the
potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.
Moreover, the leveraged nature of FX could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you
fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses. Investors may lower
their exposure to risk by employing risk-reducing strategies such as 'stop-loss' or 'limit' orders.
There are also risks associated with utilizing an internet-based deal execution software application including, but not limited to, the failure of hardware and
software.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well
as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you.
Profit and Loss Potential
In any market where a potential for profit exists, there exists also a risk of loss. None of the information on STEALTH FOREX SYSTEM nor any information or
education provided to the client by any means assures that the client will make money in the forex market. The information contained in this document does not
constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or
indirectly from use of or reliance on such information.
Benefits and Risks of Leverage
Even though the forex market offers traders the ability to use a high degree of leverage, trading with high leverage may increase the losses suffered. Please use
caution when using leverage in trading or investing.
Hypothetical Performance or Back-Tested Results
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS. NO REPRESENTATION IS BEING MADE THAT ANY
ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE INFERRED OR SHOWN. THERE ARE FREQUENTLY
SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS & THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY A
PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THEY ARE GENERALLY
PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK & NO
HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. THE
ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL
POINTS WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE MANY OTHER FACTORS RELATED TO THE MARKETS
IN GENERAL OR TO THE IMPLEMENTATION OF A SPECIFIC TRADING PROGRAM OR SYSTEM WHICH CANNOT BE FULLY ACCOUNTED FOR
IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS -- ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING
RESULTS.