In a previous article, I wrote about Forex Trading Machine.  This is a PDF format e-book (and accompanying videos and other materials) that provide one swing trading style “cash cow” system, plus two shorter term systems, all suitable for beginning traders.  I’ve now bought my copy and will be researching this system to see whether it works.  Generally I am fairly skeptical about commercial systems, so this will be an interesting evaluation.

I haven’t yet started trading with it (the forex market is currently closed), but have now had an opportunity to review the materials and will now make some comments about the quality and my perception of how practical the Forex Trading Machine is in real life trading based on my own experience in developing trading systems.

In fairness to the author, I won’t be discussing too many details of the actual approach – see the link at the end of this article if you want to buy it and find out for yourself.

What do you get?

The main item is a 180 page e-book.  This covers a lot of useful background material on forex trading, then it discloses the three trading systems.  I expected a very basic exposition of each system, but the book is actually fairly detailed, and includes some indepth examples.

The overall style is very readable and easy to understand.  You could pick this up and have virtually no understanding of forex, and come away with the knowledge you need to be a trader.

There are also some videos (in WMV format – I would have preferred QuickTime) and two other e-books – one is on trading the Non Farm Payroll data release, the other is a basic guide to training.  I have not yet reviewed any of the other materials.  I am unsure whether the two e-books are a permanent part of the offering, or a limited time bonus.

Background information in the e-book

The background information covers:

• Introduction to forex (market participants, how a trade works)
• Reading charts
• Fundamental and technical analysis (support and resistance)
• Trading psychology
• Money management (using stop losses, smooth equity curves, reducing drawdowns)

In summary, the background information is excellent.  The concepts are presented clearly so that the average person can learn what they need, not just for this system, but for understanding the overall operation of the market.

Markey psychology is presented in an extremely pragmatic way – nothing too abstract or highbrow.  The author makes a good point about it being more important to follow a winning system over time than be right with each trade.

The topic of money management could be quite tricky, but it is presented in a straightforward way.  I am glad that this is included, as some trading systems completely omit this vital area.  The only topic that I would have liked to have covered is that concept of expectancy.  Whilst this is inherent in the trading systems, and the discussions on money management, it is useful in the context of a basic introduction.

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Tags: forex, forex machine, review, Trading Systems

This entry was posted on Sunday, March 30th, 2008 at 12:16 pm and is filed under Trading Systems. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.