Tactical Range
A Guided Trading System which Makes Money by Going Against the Crowd

Ever feel like the market is always against you? Determined to succeed at trading FOREX you dedicate yourself to an astute understanding of global economic fundamentals and market moving events. You establish positions based on thorough analysis of government data releases. Your position reflects everything that is right about the value of the underlying currency and yet the market moves against you again and again. Why? Because trading FOREX is a game of strategy not unlike military campaigns. Believe it or not principals which lead to success in warfare can help you to make money trading FOREX. The concept of an assault, ambush and a feint can be seen playing out in the price action every trading day. Sound far fetched? Think again. Sure, anyone can get lucky on a few trades or have a winning streak which can net admirable profits but to be successful in the long run, enough to make a career of bringing home consistent returns, will require a change of perspective. This will lead to a change in behavior which will certainly affect your trading results putting you on the side which surprises the market.

Tactical Range is a signal based system from Neuro Forex. We do the analysis and send you an alert when its time to buy or sell a particular currency. The alert is delivered via instant message, email or as cell phone text message. We tell you exactly when to open, close or add to your position through very simple and clear messages. Depending on your willingness to learn, each guided trade you make improves your technique and market stance ultimately resulting in a better trader.

Tactical Range is a range trading system which is designed to predict tops and bottoms. As such it goes against the short term trend and frequently appears to contradict sentiment as reported by the media. The Tactical Range system buys on weakness and sells on strength. This can lead to scary positioning so it is not recommended for meek personality types. If you feel that you can handle this kind of system or plan to get steroid injections prior to trading this system then please read on. Otherwise, you may be better off with a trend following system which inherently provides greater psychological support. Please understand that this is not a joke. Tactical Range is intended for serious traders having a strong will to succeed. Hobbyists and casual traders are much more likely to capitulate to pressure at the worst time of the trade potentially resulting in sever losses.

Range Trading	Trend Following	Pick Tops and Bottoms	Add to Position	Entry and Exit Signal	Financial Gambling

How Does It Work?

Tactical Range uses our Fringe Proximity Indicator (FPI) to determine when to buy or sell a currency. The FPI itself uses the Range Trader Pro position matrix to establish overbought and oversold thresholds. Tactical Range is not the Range Trader Pro signal. Instead Range Trader Pro's open positions, the locations of which, form a two dimensional frame having an upper and lower boundary. When the currency price reaches the upper threshold the FPI signals a SELL condition. Conversely, a fall to the lower threshold constitutes a BUY condition. These conditions may or may not coincide with Range Trader Pro's net trading direction. Tactical Range and Range Trader Pro often disagree on short term trading direction but both are profitable since, by definition, range trading is an oscillation of price movement. Generally speaking, trades are initiated when the currency price reaches one end of the FPI and those positions do not close until the price retraces to the opposite side. Tactical Range will signal add on positions as the price continues to penetrate deeper into overbought or oversold territory. The add on trades effectively average down the position. When the price finally retraces all positions are closed at once.

This system behavior can lead to holding a net short or long position for extended periods (several weeks) during which time the media, at large, will doubtlessly be proclaiming the many reasons for the currency to continue moving beyond the FPI signal boundary. It is this exact situation which gives a person engaged in range trading the element of surprise thus creating a bountifully profitable opportunity should the market indeed reverse. Technically speaking, Tactical Range scales into its position by giving consecutive signals as the price continues to move into overbought/oversold levels. However, Tactical Range does not scale out of the position since all trades are closed once the retrace is complete.

The Tactical Range signal is sent to the subscriber via instant message, email and cell phone text message. The instant message is short since message space is limited. A detailed message is sent to the subscriber's email. All messages are simple and easy to follow. Tactical Range does not rely on complex stop or limit orders and since the profit targets are relatively large the system does not require the subscriber to hit the exact signal price. The following is an example of the instant message to open a long position on the USD/CHF:

From: Neuro Forex  Subj: USD/CHF  Msg: The TR1 system has altered its position to 1 from 0. Check email for detailed message.

All subscriber's receive a support telephone number which is monitored 24 hours a day during the weekly trading session (Sunday 1900 until Friday 1600 (EST)). Subscribers may use this number to verify signals or ask questions regarding market conditions which triggered the alert.

System Guidelines

Tactical Range is a stop less trading system which means that the system does not rely on preprogrammed orders to enter or exit the market. Stop orders are a simple and convenient way to reduce the maximum loss which a position can suffer. They are also heavily exploited by institutional traders with the capital necessary to wage stop hunting campaigns. As in warfare, the simple and convenient path is usually the best one to ambush. Its also the path to lay mines and booby trap. If you are to make real money trading FOREX you'll have to work harder at it. Simple and convenient won't do. This means a few sleepless nights every now and then and plenty of sweat. You'll have to get smarter about trading in general and learn to use other financial devices besides stops to reduce your risk. One of the best ways to reduce risk is by hedging your currency position with a call or put option. You could also hedge your position with another currency which bears an inverse correlation to the movement of your trade. Many trading platforms even permit hedging within the same currency pair. Metals traded on the futures exchange such as gold, silver or platinum can offer similar hedging benefits in addition to being able to be funded with high yield currencies. The number of resources which can be used to reduce your FOREX risk is limited only be your imagination.

The method Tactical Range employs to reduce risk involves a combination of elements which include small trading capital, small transaction sizes and high margin ratio of 400:1. Since Tactical Range expects to close positions with relatively large pip gains, a series of small transactions have the potential to yield significant profit while dampening the impact of strong price spikes. The high margin gives your position a wide berth to the brokerage margin call threshold. Lastly, the small trading capital ultimately reduces the asset risk by limiting any total loss to just that amount. Using this methodology, your trading account can withstand plenty of price shock giving your account real staying power and putting you on the same footing as much larger players. This may seem unorthodox to you but that is the reason why it works. The less you risk the less you fear. The less you fear the more you gain. This is as true in FOREX as it is in warfare. The following table summarizes the recommended trading sizes for the tactical Range system:

Risk Capital	Lots per Trade	Description	Max Trades Per Position	Max Position Size (Lots)	Avg Position Size (Lots)
$5,000	0.1	One Mini	10	1.0	0.4
$10,000	0.2	Two Minis	10	2.0	0.8
$25,000	0.5	Half a Lot	10	5.0	2.0
$50,000	1.0	One Lot	10	10.0	4.0
$100,000	2.0	Two Lots	10	20.0	8.0

System Liabilities

Probably the single greatest thing that can go wrong is the emergence of a real trend leading to a prolonged overbought or oversold condition. In this situation the subscriber's trading account will likely reach the maximum position size and draw down the account margin. Durable trend safeguards are designed into the Tactical Range system. Should an expected range turn into a real trend the FPI window will begin to move in the direction of trend. Consequently, trades exposed outside of the FPI window will expire at a loss. Each expired trade will reduce the net position size. However, according to range trading theory, the longer the price moves away from a starting point the more likely the price will return to that point. Therefore, Tactical Range will not entirely close its position until a significant retrace occurs or the trend has moved the FPI window beyond all previously open positions. While it is certainly possible that all trades involved in a position close at a loss the thinking is that, although unfortunate, it is acceptable since overall the system gains more than it loses over a protracted trading period. In other words, you should have or will make more than enough to cover this loss. Additionally, it should be mentioned that Tactical Range has been in development for over a year, endured hundreds of back test simulations using five years of historical data and has been live traded on a demo account since November 2005. But, Tactical Range relies on the FPI which is merely a fabrication based on Range Trader Pro's position matrix ultimately making Tactical Range only as good as Range Trader Pro's ability to identify a trading range. Thus far, this has been sufficient to generate consistent returns.

Another liability resides within the trader themselves (Tactical Range subscriber). Never underestimate the power of fear. Make no mistake the reason that range trading makes money is because most market participants truly believe the price to continue moving in the direction of strength. It is the resultant surprise that causes a sudden price swing in the opposite direction of seemingly insurmountable strength. Thanks to the proliferation of brokerage based stop orders, the speed of a retrace can often be greater than momentum achieved by the original trend. Triggering a cascade of stops orders is usually a sign that the trend has faded and the price is now going the other way. However, until that time comes the range trader will question themselves and their position as the price continues to move against them in the direction of the trend. Self doubt is the result of fear which is fueled by one's own ability to comprehend market moving forces such as the media, economic factors, geopolitical events, etc. The more you know the more you doubt. This makes you, the subscriber, a tactical liability. You could, for example, succumb to fear and close your position early or worse reverse the trade outside of the system's guidance. Of course, you could be right and outsmart the system but that is not the point. Tactical range is designed to make money over time and that means following the system and taking the losses which the system normally incurs and trusting that the system will make more than it loses. Its not blind faith. Its genuine faith. Trading according to the system sometimes but not others will quite likely lead to real losses. Range trading is, certainly, not for everyone so if you can't handle it find another system but stick to it. The moment that you begin to trade off your emotions is the moment your account will fall into the FOREX cross hairs.

Performance

The following table shows the performance of Tactical Range over 2005. Please note that these are simulated results and do not reflect actual trades made. Profits are measured in pips so the actual monetary amount gained depends on the transaction size. Profits do not include the brokerage cost of executing the trade nor does it include interest which the brokerage would charge for holding overnight positions.

Warning: Past performance is not necessarily indicative of future results. Please see  FULL RISK DISCLOSURE  for details.

Currency:	USD/CHF
Profitable Trades:	139 out of 140
Forecast Accuracy:	99%
Maximum Positions:	13
Average Positions:	3
Max Single Draw:	340 (pips)
Avg Single Draw:	64 (pips)
Gain Amount:	23,690 (pips)
Loss Amount:	63 (pips)
Profit:	23,627 (pips)

Click here to see the entire 2005 track record for this system.

Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

The trade report shows a forecast accuracy of 99% for the entire year. You should not expect to achieve this degree of accuracy in live trading. Simulations are intended to model the behavior of a system so the actual purpose of this report can be fulfilled by closely examining the simulated trade log. The trade log demonstrates the conditions which are supposed to trigger positions to open and close. By plotting positions on your favorite chart tool you can see the Tactical Range mechanics as described by the information contained on this page. A few system characteristics are noteworthy from the trade log. There are many occasions when the system does not trade. This is by design. As a pure range trading system there must exist a discernable range which has stabilized by trapping the price action for a measurable amount of time. If the range is too small or moves around, particularly in one direction, then Tactical Range will not engage. Again, Range Trader Pro is ultimately responsible for identification of the range not Tactical Range. However, Range Trader Pro is much more sophisticated and has been in development far longer than Tactical Range. Another thing of note, which we mentioned in the system description, is that positions are held for a while. Tactical Range will not close positions until the price has move to the other side of the FPI. So if we sold at over bought the position remains in play until the price becomes over sold. If you are the kind of person who needs to trade every day then Tactical Range may not be right for you.

Demo Trade Log

Neuro Forex does not offer a free demo of the Tactical Range signal since we publish the actual trade log right here on this page. This is a brokerage generated report which tracks all trades made to the FOREX demo account. This account does NOT use real money. It is the same type of account which you would normally get to test Tactical Range if we did offer a free demo. We update this report periodically as Tactical Range closes positions. To view the report click on the following link:

[>> CLICK HERE TO SEE THE DEMO ACCOUNT REPORT <<]

To evaluate the performance of Tactical Range as a trading system simply return to this page a couple times a month and pretend that this is your account. There are some differences between the signal the subscriber receives and the trades made to this account. This demo account is managed by our automated trading system which emits trading instructions. The subscription signal is the net trading direction of these instructions. For example: The report may show a BUY order when the subscriber actually received a signal to reduce a short position by one transaction unit (the net change). However, the net trading direction is what really matters in so far as increasing your account equity. If you chose to have Neuro Forex automate your signal this report more closely resembles the trading behavior your would observe in your account.

Eligibility

Tactical Range is open to the public. However, the United States CFTC considers FOREX signals and alerts to constitute commodity trading advice. Therefore, all subscribers must sign a risk advisory document prior to receiving Tactical Range messages. Additionally, Neuro Forex requires retail customers to possess at least two years of live FOREX trading experience preferably system trading. Subscription to Tactical Range is by invitation only and we do not accept applicants whom we feel are not suitable for this system.

Cost of Service

Tactical Range is available as a monthly recurring subscription established through Pay Pal. The monthly subscription fee is $300.00 (three hundred dollars). This is a forward payment which means that the first month's subscription must be received in order to initiate service. The subscription fee is fully refundable for the current month only. You may cancel your subscription at any time for any reason. We only ask to know the reason for cancellation so that we may improve our service. If you would like to subscribe to the Tactical Range system please complete our  Tactical Range Request Form  to receive sign up instructions. If you would like to speak with us directly please see our contact page for our hours of operation and telephone numbers. We will be happy to answer questions regarding any of our products.

Life as a Tactical Range Trader

You decide to become a Tactical Range Trader and subscribe to this service. You fund your trading account with $10,000 but you're skeptical of the system's performance so you limit your risk by trading only half of the recommended transaction size. That means that you will commit only 0.1 of a lot (one mini) to every Tactical Range signal you receive. You want to feel comfortable with the system so you decide to test it out for a while and if it works out you plan to increase the transaction size later. You receive an email from Neuro Forex requesting "Alert Destinations" and you respond with your email address and instant message ID. You don't plan to trade on the road so you decline to provide your cell phone number thus preventing alert text messages. Everything is in place so you patiently await your first message.

1.  You receive your first message which looks something like this:
From: Neuro Forex  Subj: USD/CHF  Msg: The TR1 system has altered its position to -3 from 0. Check email for detailed message.
The very first message each subscriber receives is intended to bring their account in line with the current system status. In this example the message is telling you to open a short position on the USD/CHF cross. The position size is three transaction units. You decided earlier that you would trade 0.1 lots to every transaction so your starting position equals 0.3 lots (0.1 * 3). Negative numbers mean short (Sell) position and positive numbers mean long (Buy) position.

2.  Three days go by and the market receives news of tension building between China and Taiwan over reunification efforts. Saber rattling ensues and the dollar begins to appreciate on safe heavens flows out of the Asian Pacific region. Well, you're short so your position begins to draw down (lose money). Your position has now draw down 55 pips and at 19:23 (EST) you receive the following message:
From: Neuro Forex  Subj: USD/CHF  Msg: The TR1 system has altered its position to -4 from -3. Check email for detailed message.
Remember, this is a range trading system so its supposed to go the wrong way initially. In fact, this is the only way Tactical Range and range trading in general makes money. The message is telling you to increase your short position by one transaction unit. You now have a 0.4 (0.1 * 4) short (Sell) dollar position.

3.  Five more days go by and the market begins to anticipate the U.S. Payrolls report due on Friday morning (EST). Today is Monday so we still have a week before the report is released. However, traders will not want to be caught wrong footed so participants start to look for reasons to buy the dollar and square up short dollar positions. The rumor mill begins to churn out speculation of a surprisingly large number of newly created jobs for the prior month. The number sounds well above expectation. The dollar begins to creep slowly higher putting even more pressure on your position. You begin to question the direction of your position and calculate how much you could lose if the rumors are true.

4.  Its now Wednesday morning 03:41 (EST) and the USD/CHF cross has now gained an additional 80 pips. Your original position is nearly 150 pips in the red. At this time its late evening in your geographical time zone and you are a sleep. Since you are keen to trade every signal you have set up your instant message software to play an audible alarm when trading messages arrive from Neuro Forex. You really want to get up so you have installed a very ugly and particularly annoying sound which plays long enough to be heard even in your deepest sleep. The alarm sounds and the following message is received:
From: Neuro Forex  Subj: USD/CHF  Msg: The TR1 system has altered its position to -5 from -4. Check email for detailed message.
The message says to increase your position by one transaction unit. Your position is now short 0.5 lots USD/CHF cross. The market appears to be still climbing and you not sure this message is accurate so decide to call the 24 hour trader support line at Neuro Forex. This number was given to you after you paid the initial subscription fee and before you received your first trading message. The account manager who answered the call knows who you are and informs you that the message is indeed valid.

5.  Friday finally arrives and the U.S. Non Farm Payroll Report produces a dismal number far below expectation. The market subsequently falls 178 pips within the first 40 minutes of the American session. All of your trades are in the black but you have not received any messages from Neuro Forex. You feel anxious to close your position and lock in profits but you restrain yourself and wait for guidance. Two hours later at 11:20 (EST) the markets falls another 32 pips and you receive the following message:
From: Neuro Forex  Subj: USD/CHF  Msg: The TR1 system has altered its position to 1 from -5. Check email for detailed message.
The message states to close your entire short position and reverse with a new long position the size of one transaction unit. The range trading process begins again in the opposite direction. Your net gain for your previous short position is roughly $840 (eight hundred forty dollars). Had you followed the recommended transaction size you would have gained approximately $1680 (one thousand six hundred eighty dollars).

Substantial Risk Is Involved
Unique Experiences and past performances do not guarantee future results! Trading Stocks, Futures, Options and Spot Currencies involve substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high trading the Foreign Exchange Market, only genuine "risk" capital should be used in such trading. If you do not have extra money that you can afford to lose then you should not trade in the Foreign Exchange Market (FOREX). No "safe" trading system has ever been devised and no one can guarantee profits or freedom from loss.

U.S. Government Required Disclaimer
Commodity Futures Trading Commission (CFTC). FOREX, Futures and Options Trading have large potential rewards buy also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the FOREX, Futures and Options Markets. Don't trade with money you can't afford to lose. This web site is neither a solicitation for, nor an offer to Buy/Sell Futures or Options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.