I’ve now had some opportunities to see how the Forex Money Machine works in real life after purchasing a copy on March 29 and testing it against a live account.  In particular, I have seen it across different market conditions.

To date, I have focussed on the Forex Runner strategy, which is a short term swing trading strategy.  This article discusses how this has performed over the last few days, trading the EUR/USD.

In summary, it has been the best of times and the worst of times.  I made 40 pips on Thursday, followed by a number of losses on Friday as a result of the enormous volatility of the market.  This strategy uses fixed entry and profit targets, and these ended up being out of the range of the market on Friday.

The following chart shows what I mean (the last half shows the conditions that were experienced on Friday:

The system would enter a position, then be stopped out by an immediate opposite movement, only to recover.  At this point, the market volatility was evident much greater than usual.

My response was to override the system parameters and increase the stop loss, but this still was not enough.  To its credit, the system would have protected capital by limiting losses to a small preset amount.

I can only conclude that the best thing to have done was to actually withdraw from the market until it became more orderly, then again start using the system.  In order to use this system properly, I do think that some entry rules (besides those provided) are required.  I’ll be doing some work on this.  I still think that this system has merit since it is simple and seems to work well except in situations like those shown above.

If you are interested in purchasing the Forex Money Machine, you can do so here.

Tags: forex money machine, Forex Trading, trading system

This entry was posted on Saturday, April 12th, 2008 at 4:35 am 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.