Page End                          Tips about The Plan (yen and euro) and F A Qs

Below are explanations of the rules of The Plan (Yen and Euro) and answers to some frequently asked questions. Most of the information below are what clients have asked me to explain.

Initial Entry (following step 1 of every plan)

    A trader is urged to enter the market as fast as possible after receiving The Plan a little after 01:00 a.m. California Time - Pacific Time. If a plan is good, it will be good all day, and chances are you will never get a better entry price as time goes by.

Rule 1 (exit rule based on time)
    As the rule states, any position that you did not exit by applying Rule 4, or by the stop loss level during a trading day must be liquidated by 23:59 California Time (Pacific Time) Monday through Thursday and by noon on Friday.
If you need to find out what time is it now in California - Pacific Time go to:  

Rule 4 (exit rule based on the targets list provided with every plan)
    "If a target price from the Targets List is hit exactly, or plus or minus up to three points a.k.a. Target Zone (TZ) look at the hourly chart. If the price continues not to break that TZ during the next hourly bar, then take the profit (or loss) on the opening of the following hour a.k.a. Potential Exit Hour (PEH) on one condition.." that condition is:

    After the PEH opens, exit only after making sure that the market price moved 20 points against your position/s from the opening price of that hour (regardless of which currency you are trading). This new stop loss is valid till the close of trading per Rule 1.

    In the case that the price does not go 20 or more points against your position/s from the opening of the PEH, but does not make new extremes during this hour, you will continue to hold the position/s from one hour to the next until one of the following possible outcomes occur:
1)    The price goes against your position/s by 20 or more points from the open of the PEH. If this happens, exit all your position/s at once.
2)    The price never goes against your position/s by 20 or more points from the open of the PEH; however, should the end of the trading day arrive, you may need to exit applying Rule 1 above. Rule 4 does not apply beyond the end of the trading day.
3)    New extremes are made in your favor and a new target (or TZ) is hit. Apply Rule 4 again with the new target. If while waiting for a newer PEH a sudden retracement against your position/s takes place, then the stop loss of the previous PEH is applied. The stop of the first PEH may hold till the end of the trading day. With newer PEH the newer stop loss replaces the old one as long as it is better than the previous one. If no such move takes place, then the new stop will be the opening price of the new PEH plus 20 points against your position/s. This process may be repeated over and over till the end of the trading day arrives, then Rule 1 takes over. The rolling PEH with new extremes does not apply to Rule 1.

Note: If the market moves crossing all the targets you have in the Targets List, then you hold your positions till the end of the trading day, and apply Rule 1.

Example on a target crossed by more than three points:

Targets List (such list is provided with The Plan)

102.01/34/40/51/57

101.02/06/19/24/29/34/62

100.32/40/58/60/69/74/88

    A target that has been passed by more than 3 points is deemed dead. Suppose you are in a Sell yen at 100.01 (buy dollar) plan and the yen moves from 100.10 to 100.45 and the closest target is 100.40 and the next target is 100.58 (see the list above). The price stops at 100.45 and starts to fall back to 100.25. At this point, you will not apply Rule 4 because a target was not hit exactly, or plus/minus up to 3 points TZ. Also, if the price were to go back up to 100.40 you would not use this target anymore. On this particular trading day, you would need the price to go up at least to 100.58 or plus/minus up to 3 points (i.e. any of the following levels 100.55/56/57/58/59/60/61) or to a higher target in order to apply Rule 4.

Sample euro targets list that comes with The Euro Plan on a Sell euro (buy dollar) day:

1.5464/70/77/78/89/91

To apply rule number 4 of the plan you need to use these targets above.
Each target is the center of a target zone (TZ)
The first target is 1.5507
TZ is 04-05-06-1.5507-08-09-10
Once a target is crossed by three or more points, then it is deleted as we wait for the following target/s.

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Note: Also if you see that the hourly chart hit an entry point and your order was not filled by your broker (assuming you have a limit order), then enter the market missing on some points. It is better to miss on some points than to miss the move completely. Note that as time passes by, the system is being improved and the trading results have the potential of getting better and better.

Frequently Asked Questions

Q.    Why is it that when I Buy the yen (sell dollar), I want prices to go lower in the yen chart?
A.    When you buy the yen against the dollar, you want the yen to appreciate in value versus the dollar. At 120 yens per dollar, the yen is worth more versus the dollar than at 121 yens per dollar. As a result, when you see that prices have moved down from 121 to 120 yens per dollar any Buy position is better off and any Sell position is worse off.

Q.    What is the contract (lot or position) size used in The Yen Plan?
A.    The contract (lot or position) size is 12,500,000 yen. That is $100,000 at ¥125 per $1

Q.    How is the yen dollar value per point calculated?
A.    The dollar value per point varies depending on the yen level at which a position is liquidated.
For example, at 120.00 yen per dollar:
¥12,500,000 (contract size) / 120.00 (liquidation price) = $104,166.66.
$104,166.66 x 120.01 (liquidation price plus one point to determine the dollar effect of one point) = ¥12,501,040.
¥12,500,000 (original yen amount) - ¥12,501,040 (new yen amount at exit) = ¥1,040(difference)
1,040/120.00 = $8.67 per point.

Q.    How can I use your plan and be more conservative or reduce my risk?
A.    One possibility is that you modify the number of contracts suggested per entry. For example, you can divide the number of contracts to enter the market by two in every step, and add one or more extra contracts to the step before the stop loss step.
    Another possibility is to start applying the system from the second step and beyond. You will run the risk of missing the whole move if the market goes straight in favor of the initial entry without looking back. Whatever you do keep the same weight when you trade, that is if you cut the positions before the stop loss from two to one then make your reversal with two positions instead of four and so on. Do not switch back and forth just because you made some profit, because chances are you will be hit with a loss when you have the most number of contracts open. As time goes by hopefully your account will grow and you will be able to apply The Plan in full. Note that any modification to the system may lead to different results that could be better or worse than without the modification.

Q.    How can I save time while following The Plan?
A.    You may want to consider the following while applying The Plan to free some of your time:
    1. Placing limit and stop orders etc... while trading.
    2. Having a system where you get paged or your computer beeps when certain levels are hit (assuming you have access to trading at all times). This way you do not need to keep watching the monitor all the time.
    3. Having at a trading partner so you can alternate trading shifts.
    4. Trading every other day, or whenever you have the time to. The problem is, you may miss the good days and get stuck with the bad ones. The opposite may be true.
    5. Hire a professional to do the trades for you.

Q.    Are the interbank quotes traded on exchanges around the world or in a specific location?
A.    Interbank rates do not trade on exchanges and are prices that banks are quoting on a continuous basis.

Q.   Is there any difference between The Yen and The Euro Plan?
A.   Not at all.                                                                                                                    Page Top