Website : G Code – Golden Ratio Website
Publisher : Steve Copan
Cost : £197 with Agora 60 day guarantee
Review Date : June 2010

WHAT IT SAYS ON THE WEBSITE

Surprising introduction “Once you know this code, you’ll hardly ever need to trade again”. The system could reward you with “£35,000 - £40,000 (trading £10 a point (expect up to £8,000 trading £2 a point)) a year in your spare time, by tapping a few keys two or three times a month”. And a rather bold statement, “I’ve finally cracked the holy grail of investing ... a hidden code that dictates EVERY stock market movement and has made me – a former engineer – £1.2 million over the past 10 years”.

The invite to this system is not open to everyone, “No novices, no dreamers and no halfwits” allowed. It’s a system for “busy people who want to trade as little as possible”, perhaps “once or twice a month at most and place trades that almost always have to pay out”. This system may trade only 34 times a year, or even less, but takes just minutes a day to check if there is a signal, or not.

The upfront requirements for this system entails that “you need a decent grasp of the stock market” and “you must be prepared to put 30 hours of work in whatever your experience”. This entails reading the guide, re-reading it and getting used to spotting the signals.

Golden ratio (Fibonacci) dictates the spaces between almost everything from the gaps between your DNA molecules to the distance between your limbs to the space between stars and galaxies - “It occurs everywhere in nature, even in the stock markets”. This is the basis of the G-Code system and it is all fully explained in the manual.

Steve has had many offers in the past to reveal this system but turned them all down, “this secret has made me well over £1.2 million since I discovered it, so I don’t need any more money”. He was convinced to do so only when he was assured it would only be open to people who knew a bit about trading and the stock market, and that there were no free gifts or stupid claims associated with the system.

The system is provided with a 60 day no obligation guarantee, backed by Agora.

THE MATERIAL

One deliverable, the 95 page Golden Ratio (The G-Code) Simple Trading Technique by Steve Copan. Steve originally developed and released, to the general public, the Market Matrix, back in 2004. An update was written and published in June 2008. The G-Code is a “book of simplified techniques ... to make it as simple as possible to help the beginner start trading with confidence and even give something to existing traders to think about”.

The basics section of the manual covers bar charts, Fibonacci retracements/extensions (the basis of the G-Code system) as well as Stochastics. These are all discussed at just the right level to set the tone for the two strategies that make up the G-Code system itself.

Stochastic Strategy – Almost 30 pages to explain this strategy, although it is very well explained. It starts with the theory, explanation and then Entries, Stops and Targets. This is then followed up by stepping through 6 months worth of S&P Daily charts (from October 2008) detailing each potential and actual trade. It does come across as rather complicated and may seem daunting to some on first read and to be honest we had to read through a couple of times. In the end though, together with the one page summary and flicking through some charts ourselves, we had a pretty clear picture of the strategy.

ISD Triangle Strategy – Steve has taken an already familiar and popular strategy and made it his own. This strategy is less complex than the Stochastic strategy but nonetheless will also require at least a second read through. Again, well explained with many examples to compliment the theory and logic behind the strategy. The one page summary is again useful when walking through charts on your own.

THE SYSTEM

Two strategies that although well documented, will seem complicated and daunting to some. However, as Steve suggests, some time commitment is needed here, he suggests 30 hours but we doubt it requires that long. All in all about 3 or 4 hours should suffice to run through the manual a couple of times (maybe three), print off the summary sheets and flick through some charts looking for the signals. A few notes of our own and we were satisfied we had a reasonable grasp of both strategies.

Both strategies are 100% mechanical, Set & Forget and are operated at the same time, once a day on the S&P Daily time-frame. Entries, Stops and Targets are crystal clear and a couple of minutes each day is all we needed. We placed our trades around lunchtime (UK), plenty of time before the S&P market opens. Straight forward once you have a grasp of the strategies.

CAN IT WORK

As these strategies are easy to apply and we traded the S&P Daily time-frame our first step was to back-test a few months worth of data. We back-tested from March – May 2010 and then traded June on a real account. Our results are detailed below:

Strategy 1 (Stochastics) – 13 trades, 7 winners and 6 losers – Net return of around 9% assuming a 3% risk per trade.

Strategy 2 (ISD) – 2 winning trades and 1 loser – Net return of around 2%, assuming a 3% risk per trade.

So, just 16 trades in 4 months, however, a profit is a profit and for just a minute or two each day, cannot be sneezed at.

As we like boring, slow, easy to execute mechanical systems, we are going to continue with this one for another month.

If in the meantime if there is sufficient interest we will gladly open a Live Trading Room, at least for the period during which we will be trading this system.

We will report back at the end of July.

SUPPORT

Excellent, response within 24 hours, courteous and great attention to detail.

CONCLUSION

PRO's
• Another system which ticks a lot of our boxes, 100% mechanical, Set & Forget, minimal time commitment and profitable (over the period we back-tested and traded).
CON's
• Beginners may struggle, they may not, we just feel this should not be the first system you ever decide to try.
• May not be enough action for some.

Note: Steve also suggested that this strategy can also be applied to currencies. As yet we have not had time to explore this option.


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.

ReviewTeam - www.systemsfortraders.com

I have been looking at/using this system for a relatively short time but have ben impressed with its reliability/high success rate.
I believe if you limit yourself to S and P only there will be quite limited trading opportunities, but if you look at forex pairs as well there will be many.
I look forward to hearing what you think but I feel very positive about this one.

Yes, agreed, it would be useful to expand - At present we do not have enough time but if and when we do we will do some back-testing. Perhaps if there is enough interest we will open a Live Trading Room for this as a means of getting additional real-time input.

Please post below if you are interested in this.


ReviewTeam - www.systemsfortraders.com

As far as trading opportunities, why does this system not work on lower timeframes to increase opportunities? Did you examine this aspect in testing?

The nature of fractal mathematics and certainly the universal ratio can all be distilled through multiple time periods.

We only checked and traded the S&P Daily time-frame, as per the manual. Perhaps it would work on lower time-frames assuming like you suggest the logic is applicable at all levels. We are quite happy with the Daily time-frame and the only option we may look at is extending the system to Forex.


ReviewTeam - www.systemsfortraders.com

If anyone else has looked at lower timeframes, please let us know if the logic is sound.

Thanks...

Oh, I had assumed that the G-Code was a follow on to Steve's Omega system (his update on Welles Wilder's 'The Delta Phenomenon'.
I didn't buy his 'Market Matrix', but got the other 2 systems from him.

I was never able to make them work for me - so I avoided this one.

Let me count, this must be the third time that Steve has cracked the 'holy grail' and this after making untold millions following Wilder's Delta.
It sounds like it is third time lucky!
But I think I will give it a miss and await his next masterpiece.

Ian

Cannot comment, never seen them - Time will tell if it is 3rd time lucky eh !

Just one trade since the initial review - a winning trade today, will provide updates along the way and for sure at the end of the month.


ReviewTeam - www.systemsfortraders.com

Hi Reviewteam

Thanks for reviewing this- a great review- thorough and gives a snapshot of whats involved in the system- very informative.

The daily timeframe really appeals here- steady with little by way of screen watching.

Just picking up on a good point you have made re the 1minute daily review- the question of using strategies for growth- do you think that this type of strategy could be used for trading equities bearing in mind its trademark instrument is the S&P?

Also,could you tell me what platform you used the G- Code on- IG Index by any chance? (advanced charts?)

Thanks again

Mark

Hi Mark,

Thanks, glad its useful to you. Actually trading G-Code on S&P on Ava FX, for convenience sake, as we are trading off those charts and small stakes as we have not yet decided on the way forward with this.

Re: Equities, not so sure, especially in these environments - There are quite significant gaps (as you know) in a lot of the liquid equities at the moment. Personally would prefer to look to Forex - Problem is we just don't have time at the moment. Mainly holidays and generally nice weather which needs to be enjoyed. One of us is flagged to try and have a look at Forex the week after next (probably GBP/USD and EUR/JPY for a bit of a mix), but no promises!

We would much appreciate anyone posting their Forex analysis as we would gladly back-check.


ReviewTeam - www.systemsfortraders.com