Trialing A Trading System
If you’ve read my previous articles, I’m fairly skeptical that an off the shelf commercial trading system can deliver the goods. My concern is that many systems may simply not work at all, or need subjective interpretation of charts, or generate negative expectancy trades, or be curve fitted to generate good results over a particular period for sales, or be otherwise unsuited for real world trading.
I’ve read that Forex Machine might be different, so I will buy it and test it out on a live trading account and see whether it works and write about the results (good or bad).
From what I have read about it, Forex Machine appears to be a fully disclosed system, which is a good start. That is a much better scenario than a black box system where the rules are hidden, and trades are just generated without any explanation. It is a 150 page e-book which explains the trading systems, plus gives a background to forex trading.
It provides three different disclosed systems, one a swing trading style system using end of day data that generates about 3 trades a month, plus two intraday trading systems.
One aspect of this system that does interest me is that it doesn’t use either charts or indicators, but is based purely on price action. My preference is for a completely mechanised system that has no ambiguity, so I am not a big fan of charts. In addition, I find most technical indicators to lag the market significantly since they are typically based on moving averages (I get around this with my own smoothing algorithms).
I’ll be buying my own copy soon and will write about the results and my evaluation of the system in future postings (this is a proprietary system that is being sold, so will not disclose the system parameters, only the results). If you are interested in trying it out as well, you can buy Forex Machine here.
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