Website : Forex Pip Taker Website
Publisher : Josh Jakeups
Cost : $77 via Clickbank
Review Date : August – October 2011

WHAT IT SAYS ON THE WEBSITE

Forex Pip Taker is “a system that will make you 300 to 500 Pips on each trade – Easily ... in just 10-15 minutes a day in any market conditions ... guaranteed”. It can be learnt “in just a few hours (and mastered in a week)” and it “will show you how to go from placing 10 trades a day to only 10 trades a month” by trading on the 4 hour instead of the 1 minute timeframe.

There’s a video example and also 12 screen shots of winning trades as well as half a dozen or so testimonials. The FAQ’s tell us that the system works best on the exotic pairs GBPCHF, EURJPY and GBPJPY.

As this is a Clickbank product it comes with the usual 60 Day Money Back Guarantee.

THE MATERIAL

A concise 22 page manual, half of which is devoted to describing how to open an MT4 account (with Think Forex) and installing the custom Forex Pip Taker MT4 template and indicator.

The other half of the manual explains the system and it’s quite well done. This is because the system is pretty much mechanical with just a few decisions required. Mainly relating to Stop and Target setting as well as Trade management.

The manual concludes with the recommendation that the system is best applied to the 4 hour timeframe although the Daily and Weekly can also be used. We chose just to trade the recommended 4 hour timeframe.

THE SYSTEM

Suffice to say, as there is only 1 custom MT4 template and indicator, setup is easy, even those with no previous experience of MT4 should have no problems. We used our GKFX account (where we can Spread bet directly from our MT4 charts).

The chart consists of the Forex Pip Taker indicator and the “TD (Trend Direction)” line, the latter is nothing more than a 100 EMA. Trade entry is based on the change in colour of the Forex Pip Taker indicator as well as the slope of the 100 EMA. Entry is at current market price on close of the 4 hour candle when the Entry criteria is met.

For the Stop we went with the option to place it 40 Pips above/below the last Forex Pip Taker indicator value. For Target we went with the recommended 1:2 Risk:Reward, thus for a 120 Pip Stop we used a 240 Pip target. Trade management, we trailed the Stop loss to 40 Pips above/below the last Forex Pip Take indicator value, as suggested in the manual.

Trade management is required every 4 hours to check for new trades and move Stop losses as appropriate. These rules mean you should be around for each 4 hour candle close.

We applied no discretion, we took every signal except if we were already in a trade. This means we always waited until the Target for any open trade was hit before we considered a re-entry.

We risked 2% per trade meaning at any one time our maximum risk in the market across the 3 instruments was a potential 6%.

CAN IT WORK

Based on trading the recommended GBPCHF, EURJPY and GBPJPY currency pairs on the 4 hour timeframe and applying the rule base outlined above our results were as follows:

Common Parameters

· Time period / Time-frame = 3 months / 4 hour
· Time Traded = Ideally, every 4 hours
· Risk Per Trade = 2.00%

GBPCHF

· Number Of Trades / Winners / Losers = 16 / +7 / -9
· Percentage Of Profitable Trades = 44%
· Average Winning / Losing Trade = +3.53% / -1.14%
· Profit Factor (Gross Profit / Gross Loss) = 2.42
· Largest Drawdown = -4.94%
· Average Per Month Return = +4.83%

EURJPY

· Number Of Trades / Winners / Losers = 20 / +8 / -12
· Percentage Of Profitable Trades = 40%
· Average Winning / Losing Trade = +3.53% / -1.77%
· Profit Factor (Gross Profit / Gross Loss) = 1.33
· Largest Drawdown = -7.43%
· Average Per Month Return = +2.33%

GBPJPY

· Number Of Trades / Winners / Losers = 14 / +5 / -9
· Percentage Of Profitable Trades = 36%
· Average Winning / Losing Trade = +2.82% / -1.21%
· Profit Factor (Gross Profit / Gross Loss) = 1.29
· Largest Drawdown = -3.80%
· Average Per Month Return = +1.07%

Positive results for all instruments we traded. Our roll-over Spread-bet costs are not included though because we could not actually take all the trades and this is one of the downsides of this system. Like most other systems which are based on the 4 hour timeframe one has to be around every 4 hours. In this instance we missed 30% of the trades reported above because we were not around for the 20:00 and 0:00 candle close at all times. We also missed on moving some Stops but this worked for/against us, swings and roundabouts.

SUPPORT

We had no reason to contact support.

CONCLUSION

PROs

• Easy to set up (on MT4).
• 95% mechanical, discretion on slope of TD line applicable.
• Positive returns across all instruments.

CONs

• Having to be around at all 4 hour candle close times is an issue.

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.

Hi Reviewteam,

Thanks for the review, Having to be around for every 4 hour candle does seem to be an issue. 4 hour trader
Suffers the same problem. would running them together make it worthwhile. I think it would take Quite a lot of money to get me out of bed in the middle of the night. I didn't even like getting up early for forex morning trade.

Thanks
Colin

If one was trading this and committing to it it would possibly be worth while looking at 4 Hour Trader too.

Great review, I like the way you guys always use 2% risk, unlike in the video on Forex Pip Taker website where they place a trade for 1 lot, show 400 pips winner, tell you the profit was $4,400 with a LOW risk 200 pips stop. They must be trading a $100,000+ account because there is no way a 200 pips stop is low risk with that trade size; all advertising I guess.

Thanks for the kind words and contribution - Smoke & Mirrors perhaps !