Is Rob Booker Forex Training Any Good?

This is a question I receive often and unfortunately I can no longer give an honest answer which is the only answer that I ever want to give. This is due to the fact that I haven’t dedicated myself to Rob Booker’s training since 2006 making my experiences outdated. The good news is that over the coming months, I will be able to give you an honest opinion because I am in the initial phases of giving his tutelage another go. This is possible because he has no expiration date on his training. According to his training contract, "You have as long as you need. You never have to pay me anything again…."

At first glance, there have been many changes to his training. His chart school, which are Rob’s trade ideas for students in video format appear to be more interactive. He provides a web conferencing platform where any of his students can attend and ask questions via messenging or voice. Other basic course materials seem unchanged such as the course introduction, FX basics, backtesting, support and resistance, moving averages, and similar topics. These are really basic though and I don’t see any reason why these would ever change. The course materials are also for the totally inexperienced forex trader, someone who has really never explored Forex outside of this course.

His primary trading system which has many components to it is called the Arizona Rules. He was just developing this system back when I lost interest in his training so I haven’t really explored it. If anything, it seems like Rob’s attempt is to provide his students with a well tested and possibly profitable trading system while also providing a comprehensive trading plan and system that one can take knowledge from to develop their own forex trading system.

I’m just getting involved again so I cannot comment further at this time but keep checking back here in the upcoming days and weeks for more details on Rob Booker Training. You can also read my previous and new experiences at http://www.forexproject.com/category/rob-booker-training/.

This week PROFIT GOAL REACHED!

I carefully reached my profit goal in Week 4:

Week # Pip P/L Gross P/L Total # of Trades Total Winning Trades Total Losing Trades Total Even Trades Avg. Winning pips Avg. Losing pips
4 61 $506.8 18 9 7 2 19.8889 -16.8571

This week, I profited 61 p.  If anyone remembers, my goal when I started Rob Booker training was to make a total of 60 p each week.  Trading 1 lot at a time isn't going to allow me to do this for a living but increasing this to 3 or 4 lots will.  I personally feel that a lot of people go into trading forex (myself included) with the thought that they need to profit many many pips each week.  When I say many pips, I'm thinking over 200 or so pips a week.  I hear how many traders not unlike myself profiting over 400 p for a given week which is absolutely possible but you also have to be honest with yourself.  Can you consistently make 400 p a week? I don't think it is possible!  Imagine the additional pressure you're putting on yourself when you're expecting even 200 p a week.  I find that keeping a pip target low and then raising your lot count is a more realistic expectation.  

The above trades were all day trades.  I do not have any position trades open and really haven't in a long time.  My goal is to continue day trading and then find position trades on longer term charts.

Making 61 p isn't easy.  I made 18 trades, profiting on exactly half.  I was very careful today and hesitated to make a short AUD trade which would have hit my target (30 p had I made the trade) because I was at +51 p and was satisfied with ending the week here.  I did see another trade this morning though and took the chance of going long on the USD/CAD.  I was still very careful placing a tight stop and only looking to stay in the trade if it went a little my way  I got out of the trade quickly for a 10 pip profit bringing my total for the week at +61.

To be totally up front, I really haven't sent Rob Booker email in weeks nor have I been following his "Chart School" all that closely.   I've been discretionary trading all week just like last and I don't know if it is a coincidence or not that I have been profitable both weeks.  I'm not trying to apply any new techniques but just trying to become more intimate with the techniques and indicators that I already have.   I haven't stopped learning or exploring new techniques or indicators but it really is just for exposure and because I feel the need to learn new things regularly.

I'm away until Sunday and will be back then to get ready for next week.  I hope everyone caught some good trades this week.  Take care. 

Week 4 Performance

I'm done for the week.  The channels were too wide in the GBP and Yen going into the US Session this morning and the CAD swung wildly up and down.  I made no trades today.  I'd also rather end the day and be up for the week.  It's good for my psyche. 

In my 4th post Booker week of trading, I managed to pull off a small profit of 14 pips or $111.  Here are some more statistics from this week:

TOTAL # of TRADES

18

TOTAL Winning Trades

10 

TOTAL Losing Trades

6

TOTAL Scratches

I feel like I went back to my "roots" this week.  I'm trading like I did months ago when things were going more my way.  The thing is, other than channel trading rules, a majority of my trades don't have any hard rules.  Most were based on discretion only.  Since I'm moving back towards this style of trading, maybe this is just what is needed.  I was sending comments back and forth with a visitor to the site, Wim and Wim states that in 5 years of trading FX:

"I can tell you that a combination of a mechanical simple system and your own judgement will give you the best results…. Make your own judgement on trades!!!"

I've done a lot of reading over the past 12 months and a lot of it is repetitive.  I've also been trying hard to go by what I've been told over and over again but maybe I've been wrong.   Yes, some of the preachings are absolutely true like the recommendation to PLACE STOP LOSSES.  But no one knows what your or my personality is.  Just because a certain way of trading whether mechanical or discretionary works for 1 person doesn't mean it will work for you or I.  

I look back at the first 11 weeks I was trading and I don't think it was beginners luck:

Week # Pip P/L Gross P/L Total # of Trades Total Winning Trades Total Losing Trades Total Even Trades Avg. Winning pips Avg. Losing pips
1 73 $650.8 11 6 5 0 29.0000 -20.2000
2 80 $748.4 21 8 13 0 41.8750 -19.6154
3 -15 $-55.1 9 4 2 3 25.0000 -57.5000
4 -15 $-242.2 10 4 6 0 31.2500 -23.3333
5 289 $2453.4 20 12 8 0 39.5833 -23.2500
6 -41 $-619.5 14 8 6 0 24.8750 -40.0000
7 189 $1727.1 13 11 2 0 23.6364 -35.5000
8 -214 $-1782.6 7 2 5 0 44.0000 -60.4000
9 169 $1425 3 3 0 0 56.3333  
10 304 $2598 3 3 0 0 101.3333  
11 71 $742.2 8 5 3 0 41.4000 -45.3333

Yes, I made some mistakes but overall, I was doing something right.  I was up $7700 after these first 11 weeks and this was mostly trading 1 LOT.  I don't know what the future holds but we will definately see if my discretionary way of trading is what works for me.

Trading the News

Trading the news is something I've been trying to learn since I started Rob Booker "1 on 1" training.  I'm finding that the potential to be profitable doing so is there.  It does take time to learn though and the only way is to gain the actual experience of trading during volatile macroeconomic news reports.  

Today, I traded the news and made 30 pips on 1 trade and lost 30 pips on another.  Unfortunately during these times more than others, the price can swing wildly back and forth so the chances of your stop getting taken out quickly is a strong possibility.  The key is obviously in the entry.  You don't want to jump the gun and enter too quickly but you also don't want to enter too slow.  I entered both positions today at the same time after the close of a 15 minute candle.  These were both valid entries and both swung against me by more than 20 pips.  The Yen swung too far against me and I was stopped out as mentioned previously.  The Sterling swung about 25 pips against me (I had a 30 pip stop) initially and tried for an hour to move back in my direction.  There was a point when my position was even and I could have gotten out of the trade unscathed.  I decided to stay in because I've made the mistake of exiting right before the trade goes my way.  The pair went 20 pips in my favor and I thought again that I should exit.  I waited and waited.  My limit was 30 pips.  The pair was up 28 pips and I still waited.  My target was hit and even though I'm even for the morning, it felt good to have shown a bit of restraint and confidence in my initial entry.  

With that said, I wanted to mention a new article by Boris Sclhossberg that talks about exactly what I'm trying to learn; trading the macroeconomic news.  It's a quick read and worth it if your interested in learning how to trade the news.

http://www.investopedia.com/printable.asp?a=/articles/forex/06/ScalpFundamentally.asp

Week 2 Performance

After my 2nd full week of Rob Booker 1 on 1 training, my results have improved from last week, I only lost 153 pips! I'm being sarcastic and once again don't blame anyone for my results this week but myself.  I made 17 trades this week, only profitable on 5.  My average profit per winning trade was 18.8 pips and my average loss per losing trade was 20.58.  Now it isn't unusual for traders to only "win" 5 out of 17 trades but when your risk/reward is only 1:1 like mine, it is difficult.  That is why I find myself questioning Booker's channel trading strategies where most trades only give you the 1:1 risk/reward.  

On an upbeat note, I ended the week on a 2 trade winning streak, my 1st was contrarian and my 2nd was during the jobs report on Friday.  I actually have been quite successful trading the jobs report in the past and it was no exception on Friday.  As I have done in the past, I drew channel lines for the high and low for the previous 12 hours or so.  I placed a buy order 6 pips above the upper channel line with a 20 pip trailing stop.  I placed a sell order 6 pips below the lower channel line with a 20 pip trailing stop.  On Friday, the price broke the upper channel, my buy order was initiated and 15 minutes later was automatically closed when my trailing stop was hit with a profit of 30 pips.  I could have made more if I didn't place a limit but I've never been greedy when it comes to taking profit.  I'm a lot more stupid when placing stops.

Frustration Bottling Up

I'll admit that the frustration of losing is bottling up.  I did manage to end the losing streak by getting a couple of smaller pip wins today after my 30 pips loss.  I ended the day -15 pips.  I sent a message to Rob this afternoon stating my frustration and he had 2 suggestions for me:

  1. Stop trading the EURO!  He thinks the currency pair is a "turd" and that it hardly moves.  He told me to stick to the GBP which has been moving big time over the last 2 weeks.
  2. Decrease my lot size on a day with no economic news whatsoever.  I only traded 1 lot, followed my rules, and only lost 30 pips so it ain't so bad

I sent a follow-up question asking him what pairs he likes to trade most. 

Not Following the Rules Can Hurt!

I am attaching a PDF file that includes all of my trades this week with date/time, P/L, max drawdown, max run-up, and important commentary about the trade including whether I followed the rules.

While I was putting this together, I realized that I failed to follow the rules 50% of the time.  Do you know how many pips I lost because I didn't FOLLOW THE RULES?


113 

How many pips did it cost me for following the rules?

43

This doesn't count the fact that I failed to follow the rules today in my GBP/USD trade that cost me 30 pips or more!  

If I would have followed the rules 100% of the time, I would be about even. 

I take full responsibility for my trades and blame only myself.  I should also note that though this trading system has rules, it is discretionary.

Here is the file:

pdf Forex Trade Report 28/04/2006,00:08 11.74 Kb
  

It’s My Fault

A transcript between a couple of us today:

Wim Says:

Hi Rick,

Minus 180 pips on 3 days of trading seems not that
great. Wow, I would be pissed of, part of learning.. Are mentors really
that great..
Why would you coach someone if you make a ton of money?
I would not spend my time trying to learn somebody for $1000 if I can
make 50K/month with my personal trading.

Some time ago, I
took the FXCM euroshop ($169), well in my eyes, it is worth nothing. it
looks really nice on their website until you pay for it.
3 methods but none of them actually work in my eyes. Everybody can make a course or call himself a mentor.
Personally,
I won't spend a dime to education or learning anymore. Being in this
business for 3 years, I make money now but not the first 2 years.

I
think a combination of knowledge and market understanding is a lot more
worth then pulling up some indicators and following them blindly.


Magdalena Says:

Wim,
A couple of questions for you:
1) Are you saying you didnt make money in the first 2 years and are you trading full time?
2) What in your opinion is the best way to learn how to trade and gain the knowledge of the market, how did you do it?

Rich,

What
is the "touch of emotion" and how big of an impact it had on your
trading recently? Are you saying that Rob's methods work and you simply
didn't have enough discipline to stick to them, cuz that's exactly what
happened to me recently when using Raghee's setups.


Craig Says:

Hi Rich,

Bummer, I have been making a bunch of losing trades as
well. I was looking though your trade history and trying to figure out
why you made all those AUD/USD trades on the 25th, the pair was going
sideways. Is it possible to elaborate on your current stratergy?

P.S.
Have to say Wim's comment is pretty on the mark.


I Said: 

I'm getting my spreadsheet together to analyze these trades but before
I jump over Rob, I have made some mistakes with execution and did so
specifically with my lost GBP trade this morning. I entered incorrectly
and got stopped out by 5 pips before the 100 pip move up. This cost me
huge. Some of the other trades were also executing issues. I can
honestly say that without even analyzing and from the top of my head,
if I was more experienced with this system, I would probably be up. A
lot of his strategy utilized multiple lots so that you can let some
more profit run. I'll post more when I know more.


I Said again: 

Magdalena, I think Rob's strategies can work. I think they give you the
best shot at making money doing this. The touch of emotion happened 2
times to me:

The first was with my Aussie trade where I entered
before the candle closed. Rob says you can enter before the candle
closes but he waits and recommends you wait. After this trade, I would
definately wait also.

The second time was with my trade today. I
entered 2 candles late on the GBP/USD trade and set my stop without
reflecting the price 2 candles ago. If I would have set a stop based on
the price if I had entered 2 candles ago (when I should have) I would
have made MANY MANY pips today. Like I said before, I think I would be
in positive territory if I didn't make these mistakes.

Rob Booker Training Update

Well, the bottom line is that since my first winning trade, I have had all losers.  It is quite discouraging but part of trading and training.  Rob really recommends using a demo account or a mini-account but I'm going to continue to chug along here.  I am using a lot of Rob Booker's methods with a touch of emotion so my results are in no way related to his performance.  I'll be entering my trades later today so everyone can view my performance so far.  They will be listed to the left menu in, My Trading History or the My Goal & Performance links.

I'm going to put together a spreadsheet for this week to more closely analyze my losses.  Rob Booker's methods for trading the 15 minute chart really don't give more than a 1:1 risk/reward ratio and going forward I would like to keep track of maximum drawdown so that I can see if decreasing the stop/loss is possible.   

Rob Booker 1 on 1 Training Going Well

So I ended today up 26 pips which surpasses the goal I set in the beginning of the week which was to end the week up 20 pips.  The week hasn't ended yet though and I'm not going to stop trading because I'm learning. 

I know 26 pips doesn't sound like a lot but I really have to attribute this to Rob Booker.  I also have to admit that I really haven't talked to Rob much since starting the training but from his Chart School and other lessons I've been able to gain more confidence and clarity.  I'm thinking that I will have more questions once I'm a little furthur along.

Next Page »