Over the next few weeks I’m going to be taking a look at a trading system called “Fast Forex Profits”. As you can probably guess from the title, this system is concerned with trading the Forex (currencies) markets as opposed to the indexes (FTSE-100 etc) or individual company shares (stocks).
The Forex markets are the largest and most liquid markets traded in the world, and run 24/7. Therefore there is no “trading day” as such, since the markets are open continuously. However, for each currency market (e.g. GBP/USD) there is a “peak activity window” which basically equates to a typical trading day in terms of duration. E.g. the peak trading window for GBP/USD pretty much mirrors the time when the FTSE-100 market is open.
Fast Forex Profits can be applied to various timeframes which makes it a flexible option for traders. The same trading principles apply no matter what time frame is used, so a trader using a 5-minute bar chart would look for exactly the same signals as a trader using a 60-minute bar chart. For the pupose of this trial, I am going to use a 60-minute chart which means that I do not have to be continually glued to my monitor.
Unlike other trading systems such as “Foolproof Early Bird Trading”, the emphasis of Fast Forex Profits is to catch profitable trends in the market rather than aiming for quick “in and out” profits. Therefore some of the trades could be quite long in duration, possibly spanning several hours (and potentially days!)
The system uses entry and exit signals to get in and out of trades (including advice on where to place protective stops). The entry signals are completely mechanical in nature so there is no doubt as to when to enter the market. Two different exit strategies are presented: the first involves some discretion while the second is completely mechanical. For the sake of consistency and transparency I’m going to be using the latter exit strategy during the trial.
I am going to aim to cover a period of 1 month with a starting bank of £1000 and base all trades on the GBP/USD market. The choice of market is purely down to personal choice and does not affect the way the system is operated in any way. The manual doesn’t cover staking, but I will be trading at £1 per pip. This fairly modest stake reflects the fact that I am using a 60-minute chart where there is much more potential for larger movements compared to using a smaller timeframe.