Website : Newsnight Trader Website
Publisher : Richard Hill
Cost : £247 with Agora 60 day guarantee
Review Date : January 2011

WHAT IT SAYS ON THE WEBSITE

He's back! Richard Hill of Forex Net Trap fame (this is a link to our Forex Net Trap Review) is back with a new Trading system - "Spare ten minutes during the News at Ten to raid the Forex markets for £140, £56 or even £420 tax-free".

Not a "shred of Forex experience" is required to "follow my simple, step-by-step strategy each night before you go to bed". There is "no stress", "no complicated computer programmes" and "no impossibly advanced analysis to get your head round" - Just "ten minutes at ten o'clock".

Twenty five beta-testers have been using the system since September (2010) and most of them offer some form of positive testimony on the website. The system promises to deliver "significantly more wins than losses" to provide a "consistent stream of income".

The monthly track record is also provided on the website, an impressive £23,100 return over 15 months from September 2009 - November 2010. This is an average return of £1,540 per month based on trading at £5 a PIP.

We did a few sums - Risking 5% per trade as suggested in the manual and trading at £5 a PIP would require a starting bank of £28,000 and a risk £1,400 per trade. It also means that the average £1,540 per month return equates to a net profit of just over 5% a month, or 60%+ in 2010.

Only 300 copies of "what will be the most sought after Forex system of 2011" are being sold.

THE MATERIAL

A 95 page, what can only be described as a, very well written and presented manual. A dozen pages on opening an account (with Shortspreads - but not mandatory), a dozen on setting up charts and 20 pages each on the Buy and Sell signals respectively. The manual rounds off with a Risk & Money management and FAQ's section.

We would go so far to say that anyone that doesn't understand this system after a read through or two and an hour or so (maximum) should not really be let near a trading account.

THE SYSTEM

Newsnight Trader is what it says on the website:
• It's simple to set up - One industry standard indicator on the Daily EUR/USD (the only instrument traded) chart - 1 minute maximum to set this up.
• It is operated around 10pm (UK time) and takes no more than a couple of minutes each session.
• It's Set and Forget with only a little trade management, if one of two targets are hit. This trade management can be done each evening when looking for a signal or, if preferred, during the day - A matter of choice.

Trades run for 2 - 5 days and the Risk:Reward is 1:1.5. 5% of account balance risk per trade is suggested in the manual.

CAN IT WORK

Since we have been using Newsnight Trader we have had two trades, one on the 5th and one on the 13th of January. One made +280 and one made +420 PIPs, that's 700 PIPs to date.

With a risk of 280 PIPs and 5% of account per trade thats a 12.5% return so far in 2011. So, a flying start for Newsnight Trader - We will be keeping an eye on this one for another couple of months (at least) and reporting back.

The only other thing we could do review wise was to compare 2010's official results with a back-test of our own (due to the simplicity of the system we thought this feasible):

Newsnight Trader 2010 Backtest vs Official Results

JANUARY - 10-Jan +140 PIPs - Total - +140 PIPs (Official +140 PIPs)
FEBRUARY - No Trades (Official +140 PIPs)
MARCH - 18-Mar +420 PIPs - Total - +420 PIPs (Official +140 PIPs)
APRIL - 27-Apr -280 PIPs - Total - -280 PIPs (Official -280 PIPs)
MAY - 4-May +420 PIPs, 11-May +420 PIPs, 18-May -280 PIPs, 24-May +140 PIPs, 26-May -280 PIPs - Total - +420 PIPs (Official +980 PIPs)
JUNE - 4-Jun -280 PIPs, 4-Jun +140 PIPs - Total - -140 PIPs (Official -140 PIPs)
JULY - 1-Jul +280 PIPs - Total - +280 PIPs (Official +840 PIPs)
AUGUST - 2-Aug +140 PIPs, 11-Aug +280 PIPs - Total - +420 PIPs (Official +140 PIPs)
SEPTEMBER - 7-Sep -280 PIPs, 13-Sep +420 PIPs, 24-Sep +420 PIPs - Total - +560 PIPs (Official +560 PIPs)
OCTOBER - 5-Oct +140 PIPs, 28-Oct +420 PIPs - Total - +560 PIPs (Official +560 PIPs)
NOVEMBER - 9-Nov +280 PIPs, 15-Nov -280 PIPs, 23-Nov +420 PIPs - Total - +420 PIPs (Official +560 PIPs)
DECEMBER - 15-Dec -280 PIPs - Total - -280 PIPs (Official - 0 PIPs)

That makes it 2,240 PIPs for us against the 3,640 reported for the same period or a return of around 40% vs 65%. Of course, we did not trade in real time and our results are based on "eye-balling" the historic EUR/USD Daily charts (on Smart Live Markets).

So, it seems that 2010 was a good year performance wise (even based on the official results being 50% greater than our own back-test) and 2011 has kicked off in impressive fashion. On this basis we will continue with this system for another couple of months or so and report back.

SUPPORT

We had no reason to contact support so cannot comment.

CONCLUSION

PRO's
• Profitable in 2010 and 2011 has gotten off to a great start too.
• A well written manual means even the complete novice will be up and running in an hour.
• Mechanical, Set & Forget, a few minutes each evening.
CON's
• None really at present except for maybe, us not matching the 2010 results on a back-test - Granted it's not as accurate as live trading nor is it a huge difference to actual.

Do remember, your comments are important, if you decide to purchase this system, please support us by using our link and by reporting back your findings, both are valuable to us and the service.

Thanks for that RT- I got similar backtest results myself. I know I've posted this in the 'requests' thread but I've written an indicator to accompany the system if any owners would like it. I have been posting a download link in the chat room from time to time, or I will accept PM requests if people are prepared to answer some check questions from the manual. I hope you don't mind me posting this here.
I'd just like to point out that I've written it off my own bat and it's not endorsed or supported by anybody else but me :-)

What is important is that people don't blow their whole account on one trade by using 'just £1 per pip'. I saw it suggested on a MMR email recently and it annoyed the hell out of me. All publishers are doing themselves a disservice if they encourage customers to take undue risk, as those customers might buy one product and then quit when they blow their account. Unless of course they blow that account at the publisher's own broker... hmm...

Despite all that ranting, I quite like this system. It's really easy to run every night and is quite stress free if. You. Just. Watch. Your. Risk.

One other detail - there is a support 'forum' mentioned in the manual. It's basically a blog where it seems that Richard Hill has been completely overwhelmed by hundreds of newbie questions, and it seems that some of the postings have been censored. Hopefully those people will find their way over to these forums to free (well, freer) speech. Viva la revolucion!

Z

Z,

Sound advice and we did mean to mention the indicator in the review - Thanks for the kind offer of sharing your indicator, so long as its shared via pm and you perform your own checks of ownership - perfectly fine by us, we got it on our charts already.

Once again thanks we appreciated it and we are sure others will too.

No new trades to report since we published our review.

Our results for January are therefore - Two trades, one on the 5th and one on the 13th of January. One made +280 and one made +420 PIPs, a net profit of +700 PIPs. With a risk of 280 PIPs and 5% of account per trade thats a 12.5% return.

Hi Zorba

I am interested in looking at your additional indicator. Did you do a comparative backtest with it? What difference did it make?

keithc - if you're referring to my homemade indicator, it didn't make a difference really. It's just useful for backtesting different parameters but does have its own limitations e.g. it uses the close of candle price and not the price at the the official signal time. The additional indicator that I mentioned in the 'ask us' thread is the i-FractalsEx which comes with MT4 or can be downloaded for free from their website. From a rough manual backtest, exiting a trade on the day of its appearance (in the opposite direction of the trade) would have changed stoplosses to partial profits on about ten occasions in the past year which isn't too shabby. *However*, I am yet to see one appear live - the last one on my chart was on 10/1/11 and I was happily in a trade already so didn't think to look. Basically I'm thinking this indicator is one that only shows up when a few bars have passed and therefore useless to us. The source code seems to say so.
There is nevertheless potential to use this in the H4 timeframe as an 'early' warning of a reversal. Still, just ideas.

Originally Posted by zorba_g

. Basically I'm thinking this indicator is one that only shows up when a few bars have passed and therefore useless to us. The source code seems to say so.
There is nevertheless potential to use this in the H4 timeframe as an 'early' warning of a reversal. Still, just ideas.

I might be wrong here, but looking at the default iFractal settings, it is set at 6 days before and 6 days after before the arrows appear. You could set it to 6 days or whatever before and 1 day after and see if that is any use.

Thanks TT, I will check. I didn't spend a lot of time on this, I'll confess.

Quick update - 2 trades in February so far. Both losing trades for -560 PIPs or -10% based on 5% risk per trade. We continue to monitor this new system.

A shame that this system has ground to a halt. Richard Hill's latest update seems to promise some sort of advanced techniques to use with it, in the near future. Here's hoping!