July 28, 2008

Fast Forex Profits

Final Review.

Over the last couple of months I’ve been testing a Forex trading system called “Fast Forex Profits”. Using the charts provided by IG Index, I traded every signal that ocurred on the 1 hour chart for the GBP/USD pair. Note that this was my own personal choice – the system is designed to operate on ANY currency pair and in ANY timeframe, although the author does recommend not using time frames that are too fine grained (e.g. 10 minutes) due to there being too much market noise. Uisng 1 hour charts seeimed like a good comprise between getting enough trading action and there not being too many false signals.

The entry signals for trades are completely mechanical, meaning that there is no guessing involved when deciding to enter the market. Two different exit strategies are provided, one mechanical and one that requires some judgement. I decided to stick to the completely mechanical approach for the simple sake of consistency. Uisng this approach, a trade is exited either if it hit’s the initial stop loss level (which is determined at the time of entry), or if the “exit condition” is met. This condition simply requires looking for something fairly simple on the chart, and is a “twist” on a common charting indicator.

For those who have dealt with trading systems in the past, Fast Forex Profits can best be described as a classic trend following system. It uses the 2 golden rules of trend trading, namely “let your profits run” and “cut your losses short”. So long as a trade is going your way, it will be allowed to run it’s course without any early “profit taking”. Similarly, a losing trade will not be allowed to get out of hand.

Over the course of the trial, I managed 40 trades with an overall strike rate of 40% and a profit of over 700 pips. This was quite impressive, and the overall profit could have been much higher if I had decided to use stakes larger than the conservative £1/pip that I originally opted for. Based upon this, I have no doubt that the system does work and is more than capable of turning a good profit over time.

My biggest concern is how people are actually going to go about putting the system into practice. Over the course of the trial, I traded each and every signal as it came up. Because the markets run 24/7, signals could appear at any time of day or night. I doubt many people are in a position to sit a computer continuously waiting for the right conditions to show themselves. However, given that the system can be applied to any Forex market and across different timeframes, there’s certainly scope for anyone to adjust way they operate the system to their own circumstances.

My overall verdict on this system is a “thumbs up”. It DID work for me, and given that it’s available at a fairly reasonable price with an 8 week money back guarantee then there is little risk in giving it a try.

You can get Fast Forex Profits here:

http://www.cash-master.com/fastforexprofits.php

 

Filed under Forex,Spread Betting by Les

0 comments

Previous post:

Next post: