Firstly apologies for the delay in any update but there have been some very valid reasons and work has been ongoing in the background.

The purpose of this test was to see if the system is still working and is still profitable, well the answer to both those questions is yes.

The downside for me has been the fact that it is necessary to be sat at the computer for at least three hours a day; six if you want to do both sessions which is something I simply can’t and don’t want to do.

The original test explained that the optimum times for trading this system is between 07:00 – 10:00 and again between 13:00-16:00. There is good reason for this and is connected with the opening hours of the markets for the currency pairs.

The upside is that the system is very mechanical so if you follow the rules as written then there is no ambiguity in entering a trade. This means it has been possible to look at the historical performance the details of which are below:

January – April

Month       Total Trades     Winners      Losers     Strike Rate         Profit

January          173                    129               44           74.5%               20.5%

February        140                    102               38            73%                  13%

March             173                    127               46            73%                  17.5%

April                 87                      64                23            73.5%                 9%

So as you can see a consistent strike rate if you took all the trades between 07:00 – 19:00. However as previously outlined this performs best during two specific windows so lets look at the performance at different times of the day:

Winners               Losers                Strike Rate                Profit

January

0700 – 10:00              34                          9                           79%                         8%
10:00 -13:00              18                        10                           64%                       -1%
13:00 -16:00              41                         7                            85%                        13.5%
16:00 -19:00              35                        18                           66%                       – 0.5%

February

0700 – 10:00              31                          8                           79%                         7.5%
10:00 -13:00              17                         11                          60%                        -2.5%
13:00 -16:00              33                          6                           84%                         10.5%
16:00 -19:00              21                         13                          61%                         -2.5%

March

0700 – 10:00              32                          9                           78%                         7.1%
10:00 -13:00              36                         10                          78%                         8.1%
13:00 -16:00              28                         15                          65.1%                     -1.1%
16:00 -19:00              31                         12                           72%                        3.5%

April

0700 – 10:00               12                         4                           75%                            2%
10:00 -13:00               13                         6                           68%                           0.5%
13:00 -16:00               17                         7                           70%                          1.5%
16:00 -19:00               22                         6                           78%                           5%

So to bring those monthly stats together the performance difference can be seen:

January – April            Winners         Losers             Strike Rate               Profit

07:00 – 10:00                      112               30                        78.8%                    26%
10:00 – 13:00                        84               37                        69.4%                     5%
13:00 – 16:00                      119               35                         77.2%                  24.5%
16:00 – 19:00                      109               49                         69.9%                    5.5%

So its quite obvious that the system works best between 07:00 – 10:00 and 13:00 – 16:00 and significant profits can be made despite a very quiet April.

The issue for me then was how to make best use of these six hours a day so I have been put in touch with Arthur and am working with him to hopefully create a bot which can work with a spread betting account (we both use IG ) to place trades without the need to sit at a screen which could be game changer as far as this is concerned. Now when I say “working with “… Arthur is mostly definitely doing all the heavy lifting so I can’t take any credit for whatever he comes up with, nor can I take credit for all the lengthy painstaking back testing which has been done by my son who has a masters in finance and investment and actually loves price action / candlestick charts and who is starting up his own trading product very soon which I hope will be trialled here on Cashmaster.

So to sum up, 4ex Pip System remains profitable but at the moment does require a fair bit of user input, if you can / want or are prepared to give it the time then you can see double digit profits can be made.

I will keep you updated with the progress of automation.

You can get The 4ex Pip System here