Jamie Marsdens Forex Morning Strategy Review

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  • #1483
    ReviewTeam
    ReviewTeam
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    Jamie Marsdens Forex Morning Strategy Review

    Key Info

    Publisher:  None specified
    Cost:   £19.99 via eBay or PayPal
    Review Date:  August/September 2010

    What It Says On The Website

    This is a product that was brought to our attention by a member that spotted it on eBay. It is referred to as the 1:1 Risk:Reward system on eBay if you wish to search for it.

    The eBay page introduces Jamie as a UK based day trader who has “tried numerous strategies, indicators and trade signal services before I finally started to make decent gains through trading”. His strategy allows him to trade for 45 minutes a day taking between 0 and 4 signals.

    There then follows some results, for the last 14 months or so, all of them positive return months with an average return of just over 200 pips per month, up to and including the month of September 2010.

    Trades are Set & Forget and the results are based on this approach. Some members earn 50% more per month with some manual trade management but this is not necessary to attain the advertised results.

    Jamie states that he is “not a salesman”, there will be no “50 page eBook detailing all areas of trading and giving you my life story”, “My document gets straight to the point and tells you exactly what you need to do to mirror my results from day one”, “No padding, no waffle, just simple information and strict guidelines”.

    The package comes with a Strategy guide, 2 months email support, access to results and strategy updates “if I tweak”.

    The Material

    A simple 11 page pdf (manual) and a Candlestick guide supplement, the latter being self explanatory and nothing new to those with experience.

    The one page introduction to the manual is followed by a page on Spread betting and then it’s straight into which markets are traded, two Forex pairs on the 15 minute time-frame.

    It then takes 3 pages to describe the strategy including an example or two, “No padding, no waffle” as promised.

    There is a section on increasing gains and the conclusion mentions that the system has an 80% win rate. Quite impressive considering the basis of the system is a 1:1 Risk:Reward ratio.

    The System

    Set up is easy on any standard charting package, all that is required is a 15 minute candlestick chart, no indicators required (to trade the base method). There is mention of two indicators, the MACD and Stochastic, but these are not necessary to operate the system as per the advertised results.

    The system is traded from 07:30 UK Local time for around an hour. On occasion some trade management is required at 11:00 UK Local time for unexecuted or open orders, but this is not typical.

    In terms of Entry, the manual is indeed to the point and concise. In fact it was a little too concise in our opinion and we had to ask a number of questions just to make absolute certain we had interpreted the rules correctly. The responses were within 24 hours, detailed and allowed us to proceed with what we considered a sound understanding.

    So, when traded “as is”, to attain the advertised results, the Entry is pretty much 100% mechanical as it is based largely on specific Price action. The Stop loss is clearly defined and as this system is based on a 1:1 Risk:Reward principle the Target is 100% mechanical as it is the same distance from Entry as the Stop loss.

    Can It Work

    First off (for some), it’s an early(ish) riser, 07:30 UK Local time. On the other hand, it’s all over and done within an hour most days, 11:00 latest (rare), so not too bad.

    This is a system that is not for those completely new to trading, a little experience is required in our opinion, as are reasonable reflexes. We are not talking fighter pilot here but you will have to get orders in quickly, sometimes even execute at market if the market is moving fast. This is compounded by the fact that on occasion two trades / orders have to be entered at the same time, for both Currency pairs. What is nice though is that this action takes place at specific times, 07:45, 08:00 and 08:15 (all UK Local time).

    So, this is what we would class as a “scalping” system due to the relatively tight Stops / Targets (in our experience 20 Pips on average). It is therefore quite important to have a broker offering spreads of 2 Pips or less for both pairs and also speedy execution. We would say any more than a 2 Pip spread would not be a wise move, we typically used IG Index.

    In our experience we were, 95% of the time, in line with Jamie’s results. Where we differed was due to the fact Jamie reports his results without including spreads. The reason given for this is that everyone has different brokers and different spreads so this is the fairest way to report.

    We had to include spreads of course. This did rarely did make a difference to the outcome of the trades, just the one we can think of. There was also the interpretation of a doji (one reason not to take a trade), at times Jamie took a trade and we didn’t, or vice versa.

    That said, as mentioned above, results were comparable, as follows:

    – August – 21 winners, 19 losers, +74 Pips profit, a net return of circa 7.5%
    – September – 22 winners, 12 losers, +142 Pips profit, a net return of circa 14%
    – October (to 15th) – 14 winners, 7 losers, +110 Pips profit, a net return of 11%

    Our returns are based on an average Stop loss of 20 Pips and a risk of 2% per trade.

    The reported results for the same periods were; +122 Pips, +131 Pips and +103 Pips respectively.

    The system headlines with an advertised 80% win rate, based on our experience we achieved a 66% win rate.

    Before we finish, there are further caveats worth our mentioning – Our statistics are based on us taking all the trades and on being able to apply money management at our usual 2% risk per trade level for each trade. In reality, things move so fast sometimes that when trading both currencies some late entries are experienced – This may become less so with more exposure to the system. We included results as is, without our slippage, lateness etc. in anticipation that we were just slow as scalping is not typically “our bag”. Further to this, there is one final consideration, the speed with which one has to calculate the Stop means it is difficult to “trade size”. We opted to trade a fixed amount £/point regardless of Stop size. Thus, where 20 Pips are lost one day and then 10 Pips won the following day the return is skewed even if there are more winners than losers. However, this is also true vice versa.

    Jamie does mention that many customers, by applying some discretionary aspects (defined in the manual) increase their returns by 50%. These rules are not hard to grasp or apply and could easily be implemented to add a couple of Pips here or there to make up for spread costs. This does however pull us away from the system being 100% mechanical and Set & Forget.

    Support

    Support was concise, to the point and usually within 24 hours.

    Summary

    PRO’s
    •  Easy to set up.
    •  1 hour a day, Set & Forget (the majority of the time).
    •  Pretty much 100% mechanical.
    •  Profitable – We didn’t experience the 80% win rate but did achieve 60%+ over 10 weeks.

    CON’s
    •  Experience is required to time those entries.
    •  “Trade sizing” is not always easy to get right, due to speed of execution.
    •  Manual a little too concise, could do with a little padding and waffle.

    Do remember, your comments are important – If you have used or decide to use this system, please contribute to the community by reporting back your findings.

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    #1531
    ReviewTeam
    ReviewTeam
    Keymaster

    Systems For Traders had to be rebuilt in 2013

    This is a selection of key posts and comments from the original forum prior to the rebuild

    ReviewTeam

    30-Nov-2010

    At the request of the vendor of this system we have removed reference to which Currency pairs are traded and also detailed transaction history (including what we thought to be useful back-testing results (although they were negative) produced by a member) – This is the first time we have been requested to take such action and we are happy to oblige.

    We have now ceased coverage of this system for obvious reasons and we kindly request that no other comment be posted.

    Thanks in advance,


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