JOHANNESBURG - A Johannesburg forex trader/researcher known as the “Grandmaster of Forex” is on a quest to demystify foreign currency trading through a unique strategy he’s researched, developed and is now implementing.
Ramerafe Nkele, from Meadowlands in Soweto, says he wishes to be seen as the father of modern forex, because of the strategy which he calls “Lerumo” that he has discovered.
Lerumo means spear in Sotho. “I have discovered that the secret of modern forex is knowledge of the characteristics and tendencies of a candlestick,” he says.
The candlestick is a thin vertical line showing the price movements of a security, derivative or currency.
He describes as platform-based trading (PBT) the manipulation of candlesticks for easy identification of the highs and lows of price.
Nkele says he’s the first person to put emphasis and focus on candlesticks as a basis for teaching forex, a $5.3trillion-a-day (R66.75trln) industry.
“My aim is to prove that pure modern forex trading is possible without dependence on technical and fundamental analysis,” he says.
“My contention is that the current forex is basically traditional and conservative, and it is grossly under-utilising the basic features of the trading platform.”
He is against the fact that traders still depend largely on technical and fundamental analysis to inform decision-making.
Precise execution of trades, he says, is made difficult by a lack of basic teaching of the trading platform.
“We are therefore about to embark on a global PBT literacy programme, to make sure that forex is no longer conducted by the rule of thumb,” says Nkele.
He admits that the most important thing for every trader in the forex market is to make profits through precise execution of trades.
He says traders are constantly in search of a better strategy, yet the issue is not the strategy but the inadequate approach to the trading platform. “What I did with the Lerumo strategy is that I learn the general characteristics of the movement of price on a single candlestick, which gives you the edge over the market,” he says, maintaining that the knowledge of the nature and characteristic of a candlestick is a solution to modern forex trading.
“It gives traders the edge and opportunity to make precise trades without consideration of the fundamental and technical analyses,” he says.
He is confident that the Lerumo strategy would revolutionise the way forex trading is viewed.
“If you hunt with this strategy in the forex market you will not go wrong,” says Nkele.