Reviewed By Ian Frost
I have been looking a Fight Back Trader over the month of June and so far it has turned out a winner. The premise is that this is targeted to those who want a simple system, a set and forget one, although this is not strictly true, as I will explain. However, it is easy enough to execute and only requires you to look at your account twice a day. From what I understand this is a “fixed” and improved version of a system that was previously sold and failed. It has a 30 day trial period for those who gain access to it. At the end of the 30 day trial you either get your money back or continue on with it having paid the purchase price. Also at that point you will either subscribe to the members’ area to get access to the day’s signals, which costs £5.95 a month, or after being given the formula calculate the signals yourself.
The claims are that from the Feb 2018 start to the end of June 2019, (these are my figures not those reported on the website), your account would be up a fraction under 476%. The returns are claimed against a minimum funding size for accounts, which is £200 per £0.5/pt trade.
With the changes in rules for spread betting accounts for retail investors that came in last year, the concept is how to take the funding requirements into account and still make a return. The manual goes into detail about what account size you require per £1/pt so at £10/pt the account size needs to be £3,500.
The process is very easy once you get a hang of it. Log onto the members’ area, where the day’s signal will be posted. Make a note of it, and log onto your trading account. Core spreads is the recommended broker, and Mark explains why in the manual. Place the trade, and the exit levels and then wait and see. If you want, you can also place an alert if those levels are hit, and an email will be sent to you should that happen. There is action required at the end of the trading day if a position remains open, and you need to make a note to log onto your account to deal with those cases.
June was a positive month. At £10/pt the gain I recorded was £1,462, a return of 41.7% on a £3,500 account size. For the month, 20 trades, 8 losses, and 12 wins, with the wins totalling £3,345 and the losses £1,883. In what I think was a difficult market environment these are great results. And if every month was like this then life would be great. However, there are some caveats.
The leverage used here takes position sizing to the limit. Meaning that when there are losses you have to have additional funds to top up your account. If you are trading an account size greater than the minimum £0.50/pt then one could just scale down the bet size based on the reduced account size, although this is not recommended or talked about in the manual. It just so happened this month that there were few days of continued losses but still it required a top up of £720 after the first two days, 21% of the account. Looking back over the history provided, the drawdowns, (ie the amount of money the account loses before winning trades come back to return the account to its original value) have exceed 56%, with my analysis showing the largest was £1,979 cumulative maximum losses. This was during a period lasting just over a month during July and August last year. But by early Sep those losses had been recuperated and by the end of that month close to £2,000 had been added to the account in winnings.
As with virtually all systems, timing is everything. If you had started this back in June of last year after 3 months, and a lot of negative days and weeks you would just about be positive with a gain of £268 and frankly most people would have quit it well before the end of those 3 months. Roll on another 3 months and your account is now up £5,217, 149% in 6 months, and at this point everything looks and feels a lot better with an average return of 24.8% a month.
It takes a lot of faith and willpower to keep on playing a system during these periods as it feels like a winner will never come and you are just pouring good money after bad. I can only presume such a period will happen once again, who knows.
The other last caveat is that there is no set time to enter trades. There is a window that is discussed in the manual but it is up to each user when they place their trades. This opens up one other element that users could find frustrating. It is entirely possible that two users could enter trades at differing times in the morning and on a trade by trade basis get different results. Trader 1 may, because of their entry level, hit the take profit exit target, trader 2 may just miss their exit level and the market reverses and registers a loss for them. So far during the first month I’ve not encountered this compared to the official results but it could happen and it is just one of those things, so be prepared. You could also be the lucky one in this scenario. Though it means over time there are likely to be differences in the returns of users, however one would hope with randomness they will even themselves out.
For me, this system shows a lot of promise. I am looking at it as a long-term system that if it can repeat itself over the next 18 months and hopefully for many years, will produce substantial gains. However, I am prepared for the worst; drawdowns and months of flat returns and topping up my account.
Let’s see what months 2 and 3 bring.