I am going to be looking at 4ex Pip System, a ForEx scalping system costing £99.
Looking through the pdf manual, it appears to be a simple enough system based upon sound principals. Two trading windows are advised for each day, but with any luck you’ll be done and dusted quickly in the first window, so you aren’t tied to your computer all day.
With scalping systems, you aren’t really trying to grab the most pips you can out of each trade, or even each day. Rather, you set a daily target of between 10 to 30 pips. As there are two trading windows noted in the manual, I’ll blog this looking for 10 pips per window; that way we should see if there is a bias to any particular window.
I want to blog this using a ForEx pair, a commodity and an index. For ForEx I will look at GBP/USD and EUR/USD pairs. The commodity will be Texas Light Crude as this is often very volatile but I might have to widen the stops because of this volatility (and consequently the pip target too, we’ll see). Ideally I’d like to use DOW as the index, but it isn’t reasonable to expect the morning session to make the pip target so I will use FTSE. However I will blog both just in case.
The stop loss is 20 pips. As per normal for Cash-Masters ForEx blogs I will operate at £10 per pip but I will also run a £1,000 start bank using 3% risk. 3% of £1,000 is £30, divided by 20 pips means my starting stake will be £1.50 per pip. My broker needs stakes using 10p multiples, so the stake will be rounded down to the nearest 10p.