Black Dog Forex – Final review
Black Dog Forex is a set of strategies, although you do not have to use all of them. I have received the following in an email from the author:
“The programme is doing very well and the way to approach it is to start with the Black Dog original system. No-one trades it these days but all the info contained therein applies to the other systems – then move on to the MTF1, the MTF2, and finally the MTF3. Most people seem to trade a hybrid of the 2 and the 3 but I personally stick to the 3”.
For this trial I used the original vanilla Black Dog system.
What do you get? You become a member of “the Black Dog family” and have access to a forum and chat room. The system is explained in a series of forum posts that I found easy to follow and understand. There is advice on how to configure the charts, and if you get stuck, then a forum post, question in the chat room or access to the author on Skype are all available. Pretty nifty support! The chat room will help you as you learn the system too, so you are not, by any means, alone.
Like most Forex, you have to place and manage the trades in real-time. This means being at your computer for long periods every day. There are audio alarms, so you can do something else. I have set my own alarm clock to go off every 15 minutes so I can check the charts. One of the rules sets a limit on the trading hours which means you cannot do this in the evening, and because the markets close, you can’t use this weekends either.
During the trial I made 764.3 pips, or £7, 643 using the cash master standard £10 per pip. However I was as high as £13,500 at one stage, the markets have been a bit strange the last few weeks.
Will I continue with this? Definitely, but as suggested I will now progress to the other strategies and will probably concoct a hybrid of my own. As this moves away from the published strategies, this is not something I can continue to test. If I do find a profitable angle I will post something on the Black Dog forums.
Black Dog is a serious tool and I am sure that using the Black Dog strategies combined with disciplined trading is a must for the for the committed ForEx investor. I am Very happy to give this an APPROVED rating.
UPDATE 15th December 2010
A while ago we did a review for a forex trading service called Black dog forex from Dave Atkinson.
For those who followed the review, you will remember that it was based on a purely mechanical use of the most basic strategy within the service. This proved very profitable overall and was given an approved rating. The only issue was that it relied heavily on trending markets, and profits went down during flat market periods.
The author Dave Atkinson has always been clear that the initial strategy is there primarily to teach the basics of the system, and that once that has been achieved the logical step is to move onto the slightly more advanced methods. Over the last couple of months I have been using these methods myself and thought I would do an updated review to let people know what I think.
There is a trading forum within black dog where the more advanced methods are explained, and there are journals where various traders who use the strategies upload screenshots and information about their trades which proved extremely helpful with the learning process. The extra methods are called MTF1, 2 and 3. The majority of people within the forum/chat room seem to use 2 or 3. I personally settled on using MTF2 but I can vouch for either as there are plenty of people achieving success with both. Without giving too much away, for people who have purchased black dog and are curious, I’m using the same strategy that is used in the scalpers tale and nitethinkers dreams journals (and very similar to the strategy Dave uses).
Skype sessions are available with Dave where he will explain how he trades in great detail (including using mikogo so you can view his desktop as he shows you things on the chart) which really helps with the learning process. There are also various other full-time traders on hand in the chat room each day who are more than willing to help explain anything your stuck on.
And now onto the all important results. At this point I have moved on from the purely mechanical approach of the initial review, but I can still give some idea based on the results I am personally achieving. Trading on 15minute charts with a target of 20 pips and a maximum stop loss of 15 pips, my strike-rate has been just over 70% so extremely profitable overall.
I have also been moving down to the 5 minute charts if there is no signal to enter on the 15minute chart and taking similar signals there. My strike-rate on this timeframe is a bit lower at just over 60% however the stop loss is generally smaller as well so has still proven highly profitable over all.
Finally, I have just started to paper trade the strategy on the 4 hour timeframe as there are people achieving good success on this timeframe within the forum so I thought I would give it a go for testing purposes. So far I have picked out 7 trades of which 5 have hit the profit target (which have varied between 75 and 100 pips), 1 finished at break even and one finished at a loss. Overall these 7 trades have resulted in a 415 pip profit. I haven’t got a big enough sample to make definite conclusions on it yet but it certainly seems to confirm that the strategy should work on any time-frame.
I definitely consider the advanced strategies to be an improvement on the original strategy as they throw up more signals each day and greatly improve the profitability at times when the market isn’t trending strongly by keeping the stops much smaller and relying less on a large market move to hit your profit target.
In conclusion I’m sure you’ve guessed that I think extremely highly of this service. The fact that there is a forum and chat room that runs all day is extremely helpful as there is always somebody available to help you out, and there are hundreds of examples available of trades that people have taken to help with your understanding of the strategy. The forum can be slightly intimidating at first since there is so much information available, and it can be a little tricky to decide exactly which strategy you’re going to focus on, in my opinion the best thing you can do is have a session with Dave and copy him at first as you can’t go far wrong like that. Gradually as you study more and more of the content in the forum you can develop your own style if need be but it certainly gives you a very solid starting point.
All in all, black dog forex is without a doubt the best trading product/service I have ever used, to the point that I have actually ditched my previous trading strategies and now focus solely on this. I can’t see myself ever needing anything else strategy-wise in the future and give this my highest possible recommendation.