Foolproof Earlybird Trading System Final Review
Ok, so by now I think Louise will have answered all outstanding e-mails and it’s time for an update on my progress with this system.
I was getting a lot of e-mails, and no doubt Louise was too, concerning the discrepancy between my results and those she was getting. As I mentioned before, I’m not an experienced trader and I have just been following the very basic system for identifying a trend and entering at a specific point which those that have the system will understand. I have simply gone for a 10 pip profit with a 15 pip stop loss. I do not bother with any other considerations except in the last couple of weeks where I have been keeping an eye out for local highs and lows which, to be honest, don’t really seem to be present at 8am because the trading in the hours running up to this time is usually pretty flat.
Again, as I previously mentioned, you can be a bit lucky with the entry point occasionally which may mean a winning or losing trade depending on what price you get when the order is placed.
Since this system is about scalping the market for no more than 10 pips at a time you do need a pretty good strike rate to make a profit over the long term, but with the associated staking plan of going for 1.5% of bank per pip, the profits can mount up if the strike rate holds out.
Here are my results since my last post:
16/4 Buy (£52) Stop -£780
17/4 Buy (£52) Sell +£520
Sell (£52) Buy +£520
18/4 Sell (£52) Buy +£520
Buy (£52) Sell +£520
Sell (£56) Stop -£840
21/4 Buy (£56) Sell +£560
22/4 Buy (£56) Sell +£560
23/4 Sell (£60) Buy +£600
Buy (£60) Stop -£900
24/4 Sell (£60) Buy +£600
25/4 Sell (£64) Buy +£640 (very lucky with entry price)
28/4 Buy (£74) Sell +£740
29/4 Buy (£85) Stop -£1275
Sell (£85) Buy +£850
30/4 Sell (£85) Buy +£850
Initial Bank: £2000
Current Bank: £6130
Total Profit: £4130
20 winning trades
8 losing trades
Strike Rate: 71%
So again it seems that simplicity is the key, unless I have just been extremely lucky. I know Louise advocates going into more detail and learning to read the markets better, and no doubt she does very well because of it, but I seem to have done remarkably well just doing it mechanically, and indeed using a trading bot, if one were available, would have had the same results more or less without me even having to do it.
So is this system for everyone?
I have to be honest and say that you can’t please everyone all of the time and Earlybird, indeed trading in general, is not for everyone. For this blog test I had to monitor the charts from 8am to 11am every weekday. This is simply impossible for anyone that has to work for a living. In my initial test of this system in March I just went for one trade a day and did pretty well with that, but for the last three weeks I wanted to see how well it would perform trading the full three hours a day and the results, at least for these three weeks, have been impressive.
I will certainly continue to use this system although definitely not everyday as I do have other commitments some mornings and to be frank, starting work at 8am is just not civilised in my opinion.
I had some e-mails from people asking me whether it would be worth using this system if they only had ten or twenty minutes spare in the morning before work and to be fair I don’t think so. A lot of trades do show up before 9am but then a lot don’t. In my first trial I would get back from dropping my daughter off at nursery, at around 9.30am, flick on the charts and then find something around 9.45 or 10am. Before then there had been nothing at all. Having said that though, as this is a long term business, it may be ok even finding only two or three trades a week.. it’s down to the individual I suppose. As it says in the various manuals I’ve read on trading… don’t worry about missing trades, there will always be plenty more where they came from.
So all in all I do endorse this system based on six weeks of trialling… three weeks aiming for one trade a day, and three going for as many as I could find. It does make a good profit and it is remarkably simple to do. The only downside I can see is the time factor.. 8am-11am. Great for some people, not so good for others.
When available, you can get the Earlybird Trading System here:
http://www.canonburypublishing.com/earlybirdgl/
