The Real Deal — Forex System & Mentor
I received the following post from a user this evening and I didn't know if this was legit or not. Sorry but I get bombarded with crap on a daily basis. The mentor he mentions below is Phil McGrew who developed the McDot system. He does have videos on his site that you would find beneficial. Thanks for the taking the time to post David.
After paying good money (and learning little more than is available online) from an online forex "mentor" I realized I lacked a robust, well-tested system (this mentor's systems changed every 6 months). I wanted a real mentor (a system designer who trades full time for a living rather than one who does seminars/online teaching full time) and I wanted an online community filled with traders who trade one system and offer support, trade journal critiques & post testing results. Check out: http://www.currensys.com/ See the videos. The guy who is behind the system & the site is humble & doesn't advertise. So I'll do it for him because he's a wonderful guy and has a fabulous product:) -david (just another trader)
Rob Booker Divergence System
Though I don't consider Rob Booker my full-time mentor, I still do follow a little of what he's been up to. I did pay for it after all so I might as well utilize it.
Anyway, I've heard him talking more about his divergence system, so I decided to shoot him off an email to find out a little more. What peaked my interest was that he mentioned in one of his videos that it works well during the Asian session. I had altogether given up trading the Asian session months ago. His response regarding his divergence system was "that system works really well in the asian session, even on short term charts like the 5 and 15 min." I'm sure a lot of you know what divergence is but I put together a nice little reference PDF with graphs and examples of the 4 types of divergences. You can download it here:
Forex Divergence 25/08/2006,14:53 90.84 Kb
If you're interested, start looking for divergences on your charts between price and especially an indicator like MACD. You could also use RSI, CCI, or another indicator of your choosing. This requires some work but it may be worth it. When I find the time to look into it more, I'll be sure to post more about it.
Another win with the h-system
I had another nice profit today when I got a signal to go long during the European session early this morning. I manually entered the trade at 2 am this morning right when I got home from a night out. I profited 60 pips on the first two lots and my last lot was just stopped out with a 47 pip profit. That's a total of 107 pips.
Since going live last week, this system is up 328 pips.
I'm actually looking into another system that depends on the h-system. It entails reversing if the GBP/USD reaches certain levels. This would be contingent on having a profitable trade. Right now I like what I see. It seems like when the GBP/USD reaches certain levels during the European session and the US session, the pair reverses after 10am EST possibly due to profit taking or lack of liquidity.
It's nice to see this system working out so far but I've been in similar situations before so I remain cautiously optimistic. I feel like I'm further along in this journey than I've been in the past but nowhere near where I have to be to become a full-time trader. I have to say though that I've never had a system like this before that has well established rules with a limited level of discretion. I would recommend that for those of you that haven't already, dedicate your time to developing a system that fits you and learn it well.
Maybe Rob Booker has it right. He gives you a system that he believes in and shows you how to trade it consistently. Stick to the system everyday and use a limited amount of discretion. It's really not the system that's important. What's important is the discipline involved in trading this system.
The Latest From Rob Booker
I get a ton of requests from a lot of you asking about Rob Booker as a mentor and I've responded to probably all of them. I'm in the process of adding a FAQ (Frequency Asked Questions) to the site so that you have the information at your fingertips.
I thought I'd attach the latest PDF Chart School from Rob Booker. You have to be one of his students to get it but I'm posting it here. For those of you that may be interested in signing up with him, it may give you a little idea of what to expect.
Rob Booker Chart School 25/07/2006,16:25 157.17 Kb
Not Forcing Forex Trading
I didn't force anything this week in my trading and I'm really happy that I didn't pull the trigger impulsively on any trades even though some may have been profitable. My automated trading gave me 22 pips this week and that was it. I had no other trades. I concentrated on chart patterns and BS'ing with a lot of other traders on Yahoo Messenger.
The Current Account and Michigan Consumer Sentiment reports were this morning but this week has been filled with such indecision that I decided to totally stay away from the market. I hardly even looked at a chart.
I feel like I've been teaching myself to be more patient with the market and the last couple of weeks have been good for me. I'm not sure when I'm going to manually enter a trade but the time is drawing near.
All of Rob Booker's students (me included) received an email today from Rob that went like this:
Good evening!
There is a new long term update in interactive form.
I also produced an update called "What the Crap Happened this Week?" to discuss how bad trading has been and why it's ok.
So furthur evidence that some traders had it rough this week… I have not viewed the video yet but if it is interesting, I'll let you know.
I hope everyone did well this week whether you traded or not.
Keep focused and hungry and hopefully we'll all make it…
Rob Booker Recommended Trading Books
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Rob Booker recommends some trading books by addressing the following points:
- How to pick books that will help you?
- How many strategies do you need?
- The 10 best books on trading and how they can help you now
You can check it out on FXStreet's Live Transcripts,
http://transcripts.fxstreet.com/2006/06/rob_booker_reco.html
Booker Says…
Good evening!
Friday we have the Canadian jobs report at 07:00am
EDT. That can move the market, so you might want to be ready for it.
Draw your NY Session box on the USDCAD from 00:00 to 06:45 instead of
07:00.
The
US Trade Balance report will also be released Friday, but watch out for
spikes and reversals. If you've had a good week of trading so far,
consider not trading at all. Keep your pips!
Rob Booker Workshop
Rob Booker presented at a workshop called, "Smart Money Management for Forex Traders." Unfortunately I don't have a complete review of this because I was at lunch during half of it. I figured that I paid for his training and he is sort of my mentor so I caught the last 20 minutes. I have to say that out of all of the presenters, Rob is definately the most interesting. He is also a pretty funny guy and I regret that I missed most of his workshop.
One of many questions he asked was, "If I locked you in a room for 6 months with the MACDizzle (what he calls the MACD), could you build a system from it?" The point he was trying to make here was that Testing, Testing, Testing of a system is imperative to success. He stated that he never goes live with a system until it has been thoroughly backtested. He also stated that if you spend enough time, you can create a system from almost anything.
Another question he asked was, "How many steering wheels are in your car." The obvious answer was to stress the need to keep your trading simple. If someone has 1 steering wheel, 1 gas pedal, and 1 brake in their car as opposed to someone that has 7 steering wheels, 7 gas pedals, and 7 brakes in their car, who would be most successful at driving? It's kind of silly but it was all about keeping things simple. How many indicators do you need? If you had tons of indicators on your charts, how easy would it be for you to actually come to a decision to make a trade. Not very, just like if you had 7 steering wheels when driving.
Here is one of Rob's ebooks from his Subscriber section which mentions some of the stuff he was talking about today.
Rob Booker trading naked 03/06/2006,21:28 548.82 Kb
Rob Booker Chart School
I thought I'd give you Rob Booker's latest Chart School PDF. Take from it what you may.
Chart School 01/06/2006,09:41 82.45 Kb
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.
