Consistent Forex Trades (mid-term review)
I have posted week 6’s results on another post and as we are roughly half-way through the review I thought it might be a good idea to state some early views.
I like this service; it is simple, it is really easy to use, it is effective and well managed.
The difficulty for me, as a blogger, is how to communicate this because it is the nature of this service that the results will not be consistent for each user (unless using Set and Forget, more on this below). The danger is that I make this very simple and effective service look way more difficult than it actually is.
Here goes anyway!
OK, let’s deal with Set and Forget as I have mentioned it. For the 8 Forex pairs and 5 Indices (FTSE, Dow, etc) Roger posts levels and sentiment (a view on probable direction) on a Sunday before the markets open. With Set and Forget you enter these levels as pending orders in your Broker’s platform and then forget about them until 13:00 Friday (where untriggered orders are closed).
And that’s it!
The downside is that the results vary quite a bit short-term, but over time they do show a nice profit (from Roger’s published data).
I have been blogging Set and Forget (managed) which is much the same as above but the trades are managed as per Roger’s tweets. This includes tightening stops or leaving a trade slightly early as you don’t want to miss your target by a few pips only for the trade to reverse and stop you out (that happens by the way). I am nicely in profit here too!
This leads, in turn, to bank size; a question I am often asked and the problem here is that the answer depends on your circumstances and attitude to risk. The stops are quite wide, these are weekly levels after all, and at 1% risk a £1,000 will probably have you hitting your Broker’s minimum lotsize quite often. From this it follows that you’d need at least £13k to trade all 13 instruments at minimum lotsizes, and that is not a good idea. Yes, you can trade with more risk, and that is a personal choice, but a better idea (in my opinion) is to trade fewer pairs with larger lots.
The evidence of Set and Forget is that GBPUSD and USDCAD are the most successful Forex pairs. Set and Forget is a recent introduction for Indices but the early evidence suggests Dow and Dax are the best pairs. Or you could just trade the first 2 pairs to trigger that week, and there are many other ways to use the data Roger provides.
Which nicely leads in to the problem about blogging this service. I have little doubt that the most effective way to use the data is to trade; i.e. to look for a reaction at Roger’s levels, set your own stops and possibly targets as long as you can get better than 1:1. However, the way I see a “reaction”, the stops and targets I use will be different that just about every other user of Roger’s service. Note: I am NOT saying this is a bad thing, just that this makes reporting on the service difficult. Further, if using Set and Forget maybe the pairs you select will be different from mine.
Trading from Roger’s levels for folks with some trading experience will be very lucrative I think. The major benefit is that you, as the trader, can set your own stops which are likely to be narrower that the posted stops; this allows your lotsize to be larger and the profits to be bigger. Roger’s strike rate is very high but, remember, these are weekly levels and you do need enough room for the trade to breathe.
For a miserly £1 you can look at the service for 28 days. Have a look at the service, your trading style, your attitude to risk and then determine whether the service is for you.
For me, it is a keeper. I have little doubt that this service will PASS come the end of the trial.
You can try Consistent Forex Trades here: