Key Exhaustion

Key Exhaustion
I released Key Exhaustion in 2010.

Key Exhaustion is a mean reversion counter-trend trading strategy.

Its an immediate-term and short-term trend termination strategy that attempts to pick tops and bottoms.

Picking tops and bottoms isn’t for the feint hearted and is usually a career termination endeavor for most traders. Attempting to catch falling knives can be, and does, get bloody. Having said that it’s also a rush, but not one I would encourage traders to crave. Yes, tops and bottoms are parts of market structure and are worth trading for the opportunity to profit. However they’re not worth pursuing if its only fame you’re chasing. Trading for ego can put you on a very slippery slope!

Key Exhaustion’s strategy looks to fade the market following an over extended move. It looks to capture trend terminations or in laymen’s terms, pick tops and bottoms.

Key Exhaustion is 100% objective and 100% mechanical.

All the trading rules for set-up, entry, stop and exit are fully explained.

There is no discretion used with Key Exhaustion. It’s a systematic strategy.

Key Exhaustion is a pattern based methodology. It consists of four patterns and contains 5 variables. One is for a 4-bar and 20-bar average true range calculation and the other three are known only to owners of Key Exhaustion. Key Exhaustion uses the same variable values for all markets and for all buy and sell setups. Being simple ensures it’s free of “curve fitting”, one of the twin evils faced by all strategy developers.

Although originally designed to trade the currency markets I trade Key Exhaustion over my diversified portfolio of markets including;

• Currencies
• Indices
• Interest rates
• Energy
• Metals
• Grains
• Softs and
• Meats

Key Exhaustion’s success across a diversified portfolio of out-of-sample markets since its release in 2010 under scores the soundness of its methodology and demonstrates the absence of “data mining”, the second twin evil faced by strategy developers.

Key Exhaustion’s simplicity, absence of both curve fitting and data mining, and continuing positive performance since its release demonstrates both its effectiveness and robustness. Two commodities which are very rare in the business of trading education and system development.

Whether you trade Forex, Spot FX, Margin FX, Currency CFDs or Currency Futures or a diversified portfolio of markets (either Futures or CFDs) Key Exhaustion will give you the edge you’re looking for.

This strategy represents a complete methodology and is a revolution in trader education. The revolution comprises two elements:

    – the theory and
    – practical live trading.