Forex Trading System – First Impressions
Quality of the trading systems – first impressions
In summary, the trading systems are not based on reading chart patterns (although charts are used as a visual aid) or traditional indicators, but by examining price action.
These trading systems are completely rule driven and mechanical. If situation A and situation B occur, then enter a trade with at point C with a stop loss of D and a profit target of E. If the profit target is not reached a certain time then do this, otherwise move the stop to that. Very simple to follow.
The main system, the Forex Cash Cow Strategy, is an excellent approach. Several years ago, I backtested a similar system and although it was not well known, it yielded some very impressive results. My initial impression of the cash cow is therefore favourable. It also lends itself to automation if you use a tool such as TradeStation. This system does not require very much time and is suitable for those who don’t want to spend all their time following the markets.
The system is well illustrated with examples. If you are a more advanced trader, then some options are presented to improve it at the cost of slightly more complexity.
The second system, Forex Runner is similar, but over a shorter timeframe, trading off a 5 minute bar chart. Again, I think the basic idea is sound. I would be prepared to trade this system.
The third strategy is called Flip and Go. It is a bit different to the others in that it involves identification of reversals, which require extremely specific parameters. I do have some concerns over this system. That is because I believe that the pattern may not mean anything, and there are more entry conditions. The entry conditions concern me. I am not completely closed off to the idea, but think it may have limited longevity.
In summary, I like the first two systems, and have some reservations about the third. As yet, I have not traded any of these, so my opinion may change later.
Summary to date
I think that there is some value for money in this system and the bonus materials (which I have not yet reviewed). At least two of the systems appear to be winners, and I’ll consider the third based on how it trades. The overview of forex trading is quite useful, especially for beginning traders, and does not make any assumptions on your skill level.
Based on my initial evaluation, this package appears to be sound and I believe that beginning traders do stand a chance to make money from it. In addition, it is original and not simply a rehash of what we can find out for free from elsewhere. Given my low opinion of systems that are sold over the Internet, I am pleasantly surprised.
If you are interested in purchasing the Forex Money Machine, you can do so here.
I’ll start trading with it on a live account and report back on real life performance over time. Hopefully the real world performance will match my initial evaluation.
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Tags: forex, forex machine, review, Trading Systems