Website : No longer available
Cost : $77
Author : Stephen Lee Jones
Review Date : June 2009

WHAT IT SAYS ON THE WEBSITE

One of those websites that when opened, pops up with an annoying audio. Well worth turning off as soon as you can, the little stop button is located just under the headlines which include, "stuffed $13,510 in the bank in only six days", "$6,480 in only 1 week" and "$13,800 in only 8 days".

Stephen is a "regular guy" who "was a complete Forex novice two years ago" and "after 12 months of development and thousands of dollars of testing" created "the simplest 'automatic profit' system you'll ever see".

"Plug in a few parameters, press a few buttons, and you can get the same results I get every day". After 5 screen shots of examples, all winning trades, is the statement "I took everything I learned, boiled it down to the simple system you need to take to duplicate my results and put it in a manual so simple that a trained chimp could use it", it is "based on something so simple it'll shock you".

This system is "the closest you'll ever get to 'point and click' easy profits" and offers up the challenge, "take control of the markets and print money at will with Forex Invasion". It takes "a few minutes of your time each week", "set it, and forget it".

There is a no questions asked 60 day money back guarantee that this system will "catapult you into the upper echelons of highly profitable traders".

THE PURCHASE

$77 via Clickbank.

THE MATERIAL

The 38 page manual is reasonably well written but does leave some room for ambiguity, in our opinion.

Anyway, the core of the system is based on divergence and two industry standard indicators. The "secret weapons" section expands on this, adding Fibonacci (for exits) and a well known candlestick formation for entries.

The only recommendation we can see for timeframes is 30 minutes or above with a number of examples based on the 1 Hour chart.

It is recommended that the major pairs only be traded, EUR/USD, GBP/USD, USD/CHF, USD/JPY and AUD/USD.

A sensible maximum risk of 2-3% of account size is also recommended.

THE SYSTEM IN THEORY

Set up is easy, in either Meta Trader 4 or IG Index.

Entry is clear, as is Exit. Stops are also clear and in reality the system is pretty much 95% mechanical. The only room for discretion is ones interpretation of divergence.

To give an idea of risk, stops are typically, the most recent high/low +30 pips. This we feel could do with some more detail and is where some confusion comes in. For example, for a 30 minute chart, this is probably too big a Stop, for a Daily - not enough, for a 240, probably about right, in most instances.

THE SYSTEM IN PRACTICE

One of the headlines for this system was the "a few minutes of your time each week" statement. With this in mind and the +30 from previous high/low Stop seeming to best suit a 4 hour time-frame, that's the one we went with.

As the system is almost 100% mechanical it was easily possible for us to back-test, on the 4 hour charts, over a 3 month period for the 5 currency pairs mentioned above. We identified 8 trades in total with 4 winners and 4 losers. The winning trades would have generated around 450 pips and so, would just about have outweighed the losing trades, and thus, a profit of some sort.

However, with 5 pairs over 3 months and just 8 trades (4 winners) for little reward we decided to take this system no further. Not because it may lose money, more because there is very little action, and even then, that action doesn't seem to generate, for us, enough profit.

As an aside, we did also investigate EUR/USD (and USD/JPY) on the 1 hour timeframe, again, over a 3 month period. This did seem to be somewhat more profitable than on the 4 hour time frame and trades were, obviously, more frequent. That said, to apply this system on the 1 hour timeframe certainly detracts from the "a few minutes of your time each week" objective.

CAN IT WORK

This system does seem to hold up, on the 4 hour (Set-times strategy) timeframe, but trades are just way too infrequent, and then, not hugely profitable (based on our limited back-testing).

On the 1 hour timeframe (Intra day strategy), it seems this system holds up much better but then it requires, not just a few minutes a week, but some dedicated screen time.

In theory certain aspects of this system could probably be used and applied to ones existing strategy depending on your timeframe. And, depending on the timeframe, could probably also be traded as is, e.g. on the one hour time-frame.

SUPPORT

We never contacted support so cannot comment.

CONCLUSION

PRO's
- Seems like it would not lose money (on 4 Hour or 1 Hour timeframes).
- Could be rewarding for the very very patient (on 4 Hour timeframe).
- May suit some as an intraday strategy (on 1 Hour timeframe).
- System makes sense and certain aspects may be useful as additions to ones existing strategy.
CON's
- On the 4 Hour timeframe, just not enough trades (or reward, based on our limited back-testing).


Do remember, your comments are important, if you have experience of this system please leave your comments below.

ReviewTeam - www.systemsfortraders.com