THE MAGIC TRADING PORTFOLIO: January 2015

General Notes:

The COT report is out and it shows that the Hedge Funds are adding to short positions on the #nzdusd #eurusd & #audusd. We can see this from the drops we had this week. I am currently short the #audusd and am watching the nzdusd and euro for a short position. Great trading for the portfolio this week. All due to the new rules I have put in place. If you haven't learn any of them, you should. I have added a link to a great source of information I have recently come across which is helping me add greatly to my trading plan and overall strategy. The link is HERE so make sure you check out Alfonso's thread page on the Forexfactory website because this guy is the real deal. Learn the strategy, watch the YouTube videos HERE that he has posted and incorporate what you are learning in your trading. Lets make 2015 the best trading year so far! I have been working on my trading plan all day today. I have incorporated a few changes that I have learned from all the trade reviews I have done throughout the year. So fasten your seat belts because we are going for a wild ride.... to profits!!! You can have it all if you trade like the institutions do. Money, freedom, the ability to travel anywhere at any time, nice homes and fast cars. All it takes is dedication and hard work! Don't you just love trading? You can be anywhere in the world and still be able to make $$$, but only if you trade alongside the institutions with Supply & Demand!

Watch the latest INSTITUTIONAL SUPPLY & DEMAND Outlook Video!

January 12 Institutional FOREX Supply & Demand Outlook
Dec 17 Supply & Demand Outlook
The FOREX Diaries Dec 1-12

SUBSCRIBE FOR VIDEOS @ www.youtube.com/The4XGuyVideos

Market Movers:
Click here for the Week Ahead -> Jan 25 - 31, 2014 Market Movers

The Magic Trading Portfolio's Position Sizing

Currencies --> Risking only $150 per trade. As my risk tolerance gets larger, I will slowly start

increasing my risk amount.

You can follow, learn & PROFIT from The Magic Portfolio by following the members only @MagicAlerts on Twitter. I'll be sharing my thoughts on the markets, providing video lessons on trading Supply & Demand and also be sharing with followers some very exclusive stuff. You'll have to follow to find out what. I am mapping out Institutional Demand & Supply. Do your own DD and use the info whatever way you see fit. Welcome to The Magic Trading Portfolio!

How to keep updated with the blog? I tweet updates to The Magic Trading Portfolio all day live, my advice is if you have an iphone etc, turn notifications on for my account @magikev to get the updates to the portfolio. If you missed an update, just come to the blog and check on the right side where the twitter feed is located and go through the feed to see what updates you may have missed. Otherwise, subscribe to the email updates and receive them in your inbox.

Magic Ingredient:

If there is any one thing that has added more to my success than anything else, it is understanding how

important it is to time the US Dollar with your trades. The key to my strategy is to time the $USD's GREEN and RED zones with the GREEN and RED zones from the setups. If the US Dollar and the $USDCAD, $USDCHF or $USDJPY are both entering their same coloured zones at around the same time or if the US Dollar and the $EURUSD, $GBPUSD, $AUDUSD or $NZDUSD are both entering the opposite coloured zones then the probability of the setup working out is highest.
SHADED GREEN ZONES = Strong Buy Zones

SHADED RED ZONES = Strong Sell Zones

SUPPLY & DEMAND ZONES

Take note of the GREEN demand zones and RED supply zones mapped out below. These are the areas of interest for me because this is where there is a great deal of demand to fill buy orders and supply to fill sell orders from the institutions.

$USD OVERVIEW (THE BIG PICTURE)
Perception of Monetary Standing: HAWKISH
--> $USD broke through supply and has room to head up even higher.

$USD OVERVIEW (DAILY)

--> US Dollar Still in strong uptrend.

$USDCAD -> Commitment Of Traders Report: Institutional traders are LONG biased. (01/20/15)

Decreased <== LONG -> 52k SHORT -> 28K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: Trend is up on the monthly, weekly and daily charts. Price up trending on the 240 chart.

THE SETUP:

Video Link ==>

$AUDUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (01/20/15)

Increased <== LONG -> 16k SHORT -> 65K ==> Increased

Perception of Monetary Standing: DOVISH => NUETRAL
Notes: Trend is down on the monthly and weekly charts. Price broke above the down trend on the daily chart. Hit weekly supply.

THE SETUP: SHORT @ 0.8019, SL @ 0.8055, T1 - 0.7944, T2 - 0.7866, T3 - ?

Video Link ==>
Jan 28 -> Trade activated and T1 hit.
Jan 29 -> T2 has been hit and T3 is at 0.7664, stop now moved above valid 240 supply http://my.jetscreenshot.com/demo/20150129-nqck-101kb

$USDCHF -> Commitment Of Traders Report: Institutional traders are LONG biased. (01/20/15)

Decreased <== LONG -> 16k SHORT -> 8K ==> Decreased

Perception of Monetary Standing: NUETRAL => DOVISH
Notes: Trend is down on the monthly, weekly and daily charts.

THE SETUP:

Video Link ==>

$EURUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (01/20/15)

Increased <== LONG -> 50k SHORT -> 235K ==> Increased

Perception of Monetary Standing: DOVISH
Notes: Trend is down on the monthly, weekly and daily charts. Price is consolidating on the 240 chart.

THE SETUP:

Video Link ==>

$GBPUSD -> Commitment Of Traders Report: Institutional traders are SHORT biased. (01/20/15)

Increased <== LONG -> 38k SHORT -> 83K ==> Increased

Perception of Monetary Standing: NUETRAL
Notes: Trend is up on the monthly chart, down on the weekly charts. Price broke the down trend on the daily & 240 chart but has hit weekly and monthly demand at the bottom of the curve. Possible upside from here.

THE SETUP: Long @ 1.5014, SL @ 1.4966, T1 - 1.5110, T2 - 1.5282, T3 - ?

Video Link ==>
Jan 30 -> Trade Activated

$USDJPY -> Commitment Of Traders Report: Institutional traders are VERY LONG biased. (01/20/15)

Decreased <== LONG -> 91k SHORT -> 26K ==> Same

Perception of Monetary Standing: DOVISH

Notes: Trend is up on the monthly and weekly chart. Price is in a down trend on the 240 & daily chart.

THE SETUP:

Video Link ==>

$NZDUSD -> Commitment Of Traders Report: Institutional traders are SHORT biased. (01/20/15)

Increased <== LONG -> 11k SHORT -> 15K ==> Increased

Perception of Monetary Standing: HAWKISH => NUETRAL
Notes: Down trend on the monthly, down on the weekly and down on the daily chart. will want a rally up to 240 supply within daily supply to short.

THE SETUP:

Video Link ==>

$EURNZD ->

Notes: Daily trend is up, weekly is down and monthly is down. Shorting at weekly supply which is valid.

THE SETUP: Short @ 1.5593, SL @ 1.5691, T1 - 1.5397, T2 - 1.4971, T3 -?

Video Link ==>
Jan 29 - Trade Activated

$GBPAUD ->

Notes: Daily demand is valid as it broke above daily supply. Weekly trend is up.

THE SETUP: LONG @ 1.9179, SL @1.9127, T1 - 1.9286, T2 - 1.9727, T3 - ?

Video Link ==>

$AUDJPY ->

Notes: Daily trend is down, broke through weekly demand. Shorting at a valid 240 supply zone.

THE SETUP: Short @ 92.75, SL @ 93.34, T1 - 91.54, T2 - 89.84, T3 - ?

Video Link ==>

$AUDJPY ->

Notes: Daily trend is down, hitting weekly demand but has been tested before. Shorting at a valid daily supply zone.

THE SETUP: Short @ 95.06, SL @ 95.90, T1 - 93.39, T2 - 90.81, T3 - ?

Video Link ==>
Jan 29 - Trade Cancelled

Institutional Supply & Demand Outlook.
Notes: Price is in a down trend on the monthly and up trending on the weekly & daily chart.

Institutional Supply & Demand Outlook.
Notes: Price is in a down trend on the monthly, weekly charts. Price has hit monthly demand.

Institutional Supply & Demand Outlook.

Notes: Price is in a down trend on the monthly, weekly and daily charts.

Institutional Supply & Demand Outlook.

Notes: Price is in a down trend on the monthly & weekly charts. Price broke down trend on the daily.

$EURAUD ->

Notes: Down trend broken on the weekly, price hitting weekly, daily and 240 demand so must take a 240 DIP n' RIP setup with the two targets.

THE SETUP: 240 DIP n' RIP Long @ 1.4062, SL @ 1.3991, T1 - 1.4195, T2 - 1.4345

Video Link ==>

Trade Cancelled

$EURCAD ->

Notes: Down trend broken on the weekly, price hitting weekly, daily and 240 demand so must take a 240 DIP n' RIP setup with the two targets.

THE SETUP: 240 DIP n' RIP Long @ 1.3835, SL @ 1.3799, T1 - 1.3905, T2 - 1.4040

Video Link ==>

Jan 20 - Trade Activated, T1 hit
Trade Review -> https://www.tradebench.com/share_trade/f8b436a7e65a32d1ce5ca83ccd9dd77b

$USDJPY -> Commitment Of Traders Report: Institutional traders are VERY LONG biased. (01/13/15)
Decreased <== LONG -> 120k SHORT -> 25K ==> Decreased
Perception of Monetary Standing: DOVISH
Notes: Trend is up on the monthly and weekly chart. Price is in a down trend on the 240 & daily chart.

THE SETUP: Short @ 117.66, SL @ 118.01, T1 - 117.00, T2 - 115.29, T3 - ?

Video Link ==> Trade Review

Jan 14 - Trade Activated

Jan 15 - T1 hit

Jan 19 - Stop hit for break even!

$USDCAD -> Commitment Of Traders Report: Institutional traders are LONG biased. (01/10/15)

Increased <== LONG -> 48k SHORT -> 31K ==> Decreased

Perception of Monetary Standing: DOVISH
Notes: Trend is up on the monthly, weekly and daily charts. Price up trending on the 240 chart. Must take a long within the daily demand zone.

THE SETUP: Long @ 1.1866, SL @ 1.1821, T1 - 1.1944, T2 - 1.2162

Video Link ==> Trade Review
Jan 15 - trade activated and stopped out.

$GBPUSD -> Commitment Of Traders Report: Institutional traders are SHORT biased. (12/02/14)

Same <== LONG -> 38k SHORT -> 69K ==> Same

Perception of Monetary Standing: HAWKISH

Notes: The pound has just breached the Monthly demand zone but hit weekly demand. I believe we will see a bounce from here.

THE SETUP ==> Long @ 1.5560, SL @ 1.5535, T1 - 1.5591, T2 - 1.5694

Video Link ==> Review

Dec 17 - Trade Activated

Dec 18 - T1 hit

Dec - 19 - took partial profits at 1.5668

Trade Review - Review

$USDCAD -> Commitment Of Traders Report: Institutional traders are LONG biased. (12/02/14)

Decreased <== LONG -> 46k SHORT -> 28K ==> Decreased

Perception of Monetary Standing: DOVISH

Notes: Price is inside Weekly Supply!

THE SETUP ==> Short @ 1.16550, SL @ 1.1675, T1 - 1.1601, T2 - 1.1572

Video Link ==> Review

Dec 16 - Trade Activated

Dec 16 - moved T2 to 1.1491

Dec 18 - target 1 hit

Dec 19 - closed position for profits (bad CPI data out)

Trade Review - Review

$EURUSD -> Commitment Of Traders Report: Institutional traders are VERY SHORT biased. (12/02/14)

Decreased <== LONG -> 57k SHORT -> 216K ==> Decreased

Perception of Monetary Standing: DOVISH
Notes: Price hit daily/weekly supply and is heading downwards.

THE SETUP ==> Long @ 1.2274, SL @ 1.2262, T1 - 1.2290, T2 - 1.2318, T3 - 1.2440

Video Link ==> Review
Dec 18 - Trade Activated
Dec 18 - T1 hit
Dec 19 - stop hit (small loss only)
Trade Review - Review

$GBPCAD

THE SETUP ==> Short @ 1.8179, SL @ 1.8231, T1 - 1.8073, T2 - 1.7945

Video Link ==> Setup Video Lesson 1
Dec 12 - Trade Activated
Dec 14 - moved stop to 1.8252
Dec 15 - moved stop to 1.8209, T1 - 1.8095, T2 - 1.7964
Dec 15 - stopped out
Trade Review - Review