Trading

FX-180 Final Review

FX-180 costs £247. For that you get a 91 page PDF. I found this a little bloated, but as an experienced trader I don’t need all the blurb on how to setup an account and configure the charts. However, if you are new to ForEx trading you will find this information useful. There is also a members area online which only slightly improved upon the content of the PDF in my opinion.

I did change one thing from my initial setup; I stated that I was looking for a risk/reward ratio of 1:1. The vast majority of the time this target would not have been met, so instead I closed when the candle changed colour and closed above/below the line (depending on the direction of the trade). This way I was able to take some profit out qualifying trades whilst being able to run with a strong movement.

As per normal I used £10 per pip. I looked at EUR/USD and GBP/USD pairs on the 5 minute timeframe and these pairs form the basis of this summary. I also looked at US Crude and Gold using a 4 Hour timeframe, hopefully to demonstrate that the longer timeframes are a viable option too. More on Gold and Oil later.

Let me say up front that I dislike the structure of this system. I do not like lagging indicators and to build a system based on two of them is not a solid idea in my opinion. However I cannot argue with a profit over the five weeks of this trial. 300 pips were accrued in five weeks, or 60 pips per week on average. This equates to £3,000 at £10 per pip. The average stoploss was 28 pips but was rarely activated.

The maximum stop was 67 pips, so to play £10 per pip at 1% risk you’ll need a bank in the region of £67K. Obviously you can reduce this by using higher risk; you only need a bank of £13.5K at 5% risk.

My main criticism of FX-180 is the reason I am stopping this trial early; playing 5-minute charts glues you to your computer all day, and you barely have time for “comfort breaks”, meals or tea breaks.  Even then, you get a lot of false setups that never trigger. I feel this is a lot of work for a mere 60 pips per week. It is because this is taking way too much of my time each day that I am calling a halt to this trial.

So, I don’t like the structure of the system: lagging indicators, masses of computer time and many false setups. This would be a FAIL other than the fact that is has made a profit. That alone will make this NEUTRAL.

The position appears to be better if you look at the four-hour Crude Oil and Gold. These add another 1,423 pips or 284 pips per week, and takes the profit to a respectable £17,225 at £10 per pip. However the average stoploss was 350 pips. You’d need a bank of at least £350k to play these (at 1% risk), but as one trade had a stop of 739 pips, actually nearer £750K. In other words, whilst the four-hour Crude Oil and Gold worked, the size of bank requires is beyond the reach of most cash-masters readers. Four-hour Crude Oil and Gold doesn’t rescue the NEUTRAL rating. I have not tracked whether four-hour currencies work or have reduced stops, they may well do.

You can get FX-180 here:

http://www.cash-master.com/FX-180.php

Filed under Forex,Spread Betting,Trading by Arthur

Week 5 (26/9 to 30/9)

Summary:
GBP/USD this week 11 pips. Total 95 pips for £950 at £10 per pip.
EUR/USD this week  43 pips. Total 204.5 pips for £2045 at £10 per pip.
Overall (Currencies Only) this week 54 pips. Total 299.5 for £2995 at £10 per pip.

Please remember that the Crude Oil and Gold trades are purely for my own satisfaction. Crude is a strange beast and is not a recommended market for new traders.

Closing the trade that was left open last week:

Gold  last week  +1661 pips. Total 1941 pips for £19,410 at £10 per pip.

Crude this week -9 pips. Total -107 pips for £-1070 at £10 per pip.
Gold  this week  -411 pips. Total 1530 pips for £15300 at £10 per pip.
Overall (Commodities Only) this week -420 pips. Total 1423 for £14230 at £10 per pip.

Overall (all instruments) this week -366 pips. Total 1722.5 for £17,225 at £10 per pip.

Filed under Forex,Spread Betting,Trading by Arthur