MRP – Mean Reversion Profit Strategy by Martin Carter

This hedging strategy will challenge most beliefs that people have about trading “I want you to forget everything that you think you know about trading”

Regulars of this site may well recall that fellow blogger Art trialed this service back in April. Art is a seasoned veteran of trading the markets and trialed two different methods of using this system that is offered as a snail mail manual from Thames Publishing. His Adhoc trading didn’t do too well but he did mention that the set-and-forget strategy turned a reasonable profit.

To summarise MRP trades two indices : the German DAX and the French CAC. A signal is generated by Martins proprietary software and he advises via a website, to which subscribers have password access, whether to BUY DAX / SELL CAC or vice versa. Simple as that.

A spreadsheet trade size calculator is provided for you to easily determine you trade sizes (determined by your bank size), place your trades and leave to ‘mature’…..

Being a relative novice to trading the markets and with work commitments of my own day to day I have been happy to re-trial the ‘set-and-forget‘ method to see if the profits are there for the likes of a novice such as myself. The signal to trade is often online from 6.30am. So, I have placed the trades at a convenient time in the morning generally between 8am and 9am. I check periodically, when I can during the working day and close regardless of time of day, if the trades is showing a profit within a prescribed profit range. If the trades are showing a loss, keep open for a maximum of two nights (charges are incurred for trades carried over).

Crucially and quite cleverly, because these particular financial instruments move at similar rates in different directions (although not exactly the same, otherwise there would be little chance of profit), there is no need for a protecting stop loss that any level headed sensible trader would consider.

Anyway, onto my results so far.

You will need a reasonable bank size to trade and in these markets anything less than £1,000 is probably going to be difficult for you, although this is very dependent upon the minimum trade size offered by the broker you place your trades with. I am using a starting Bank of £1500

CAC DAX
Open Close             Swap
25-Sep 26-Sep £-0.40 £20.84 £-2.1
26-Sep 30-Sep £-1.62 £73.4 £-53.93
27-Sep 30-Sep £-1.21 £88.33 £-67.32
30-Sep 30-Sep £-2.11 £18.4
02-Oct 03-Oct £-0.40 £32.28 £-5.21

As you can see in the time period shown – there have been 5 trades and amazingly, all have shown a profit to the tune of £98.95 overall!
That’s all for now. I will update in a couple of weeks.

(also, see the latest offering from Thames Publishing – MRP Energy)