Forex Time Machine is a brand new forex course from Bill Poulos that includes 3 separate trading methods that you can use to trade the forex markets. The methods themselves are loosely based on the philosophies of W.D. Gann, and best of all they can be used on any time frame.
I was lucky enough to get my hands on a pre-release copy of this course so let me give you my full and honest review of the Forex Time Machine course:
Forex Time Machine Course Contents
Unlike most of the courses that are sold online, this course is a physical product that is delivered directly to your door and includes the following:
- 7 CD-ROMs.
- 7 reference manuals in a 3-ring binder.
- 3 trading cards that summarise each of the methods for easy reference.
- A broker blueprint to help you choose a forex broker.
- Quick start guide.
The modules that are included on the 7 CD-ROMs are as follows:
- Bonus Module - Forex And Trading Basics (46 minutes)
- Module 1 - Background And Overview (45 minutes)
- Module 2 - Breakout Method (77 minutes)
- Module 3 - Momentum Method (76 minutes)
- Module 4 - Spring Method (62 minutes)
- Module 5 - Forex Brokers, Charting Software And Trading Platforms (75 minutes)
- Module 6 - Bringing It All Together (65 minutes)
Most of the modules are fairly self-explanatory so let's dive straight into the trading methods:
Trading Method 1 - Breakout Method
Breakout trading is one of my favourite trading methods because when the price breaks out of a narrow price range, it will nearly always continue moving in the same direction as the initial breakout and yield some very tasty profits.
There are of course many different ways you can trade these breakouts. Indeed I've probably mentioned most of them on this blog. However this particular trading method is one of the most profitable strategies I've come across so far because it is extremely accurate. The entry rules are very strict and is has clearly been tested many times to ensure it generates maximum profits.
It also seems to employ similar rules as my own trading methods in that it aims to close half the position after a certain profit target has been achieved and lets the other half run for as long as possible using a trailing stop. So you can potentially capture some huge price gains if the breakout turns out to be a very strong one, particularly if you use this method on the daily or weekly charts, for example.
Another thing I like about this method, and indeed all the methods included in this course, is that it forces you to move the stop loss to break-even at the earliest opportunity. So therefore as a result of this you will often find yourself in a free trade situation soon after you enter a position, which is obviously a fantastic position to be in.
VERDICT:
I like this breakout method a lot because it is quite a low-risk trading strategy. Of course not all breakouts will work out, but they nearly always move just about enough to enable you to move your stop loss to break-even, and even if they don't continue moving in the desired direction straight away, the system employs a strict stop loss policy to keep losses small.
The great thing about this strategy is that the breakouts that do come to fruition can deliver some huge profits. I've been backtesting this breakout method on several different pairs (using the daily chart) and there have been plenty of examples where you could have banked 200-400 points for the first half of the position and sometimes as much as 800+ points with the second half of the position if the trailing stop isn't triggered too early (I've just been looking at a GBP/JPY set-up from last year that would have generated over 1400 pips in just 9 days).
So it's clearly a highly profitable strategy and it seems to work just as well on the short-term charts as well, even the 5 minute charts, although you need to need to be careful that you only trade the very best set-ups on these smaller time frames.
Trading Method 2 - Momentum Method
The momentum method is designed to trade markets that are in strong trends. More specifically it is designed to get you into a trade just after a brief period of consolidation. For example if the price moves strongly upwards and then falls back slightly and trades sideways for 5 or 6 bars, this particular method will help you to open a new long position if the momentum returns and the upwards trend continues (providing all of the conditions are met).
This is similar in some respects to the breakout method but you will generally find that you will get different set-ups at different times, so you get more opportunities to trade the markets. (This method is specifically designed to trade currency pairs that are in very strong trends).
The rules of this method are very strict, but this is a good thing because the set-ups that do satisfy the criteria often turn out to be very profitable trades.
The momentum method uses the same technical indicators (which are commonly found on any charting software) as the breakout method, with one additional indicator to help identify trending markets.
VERDICT:
I've been backtesting this method on various time frames from the daily charts right down to the 5 minute charts to try and pick holes in it, but I have to say it does look a very profitable system on the whole.
I think this is largely because of the strict trading criteria because just like the other methods, this strategy has clearly been optimized to trade the very best set-ups that occur on any given time frame. One example of this is that if the set-up bar is too large then the set-up will automatically be rejected.
Of course there are some set-ups that are better than others, but this is the case with all trading methods. After a while you should be able to quickly identify the set-ups that are most likely to generate decent returns.
It's not a fool-proof system by any means. You will have losing trades along the way (particularly on the shorter time frames) because these momentum trades can sometimes peter out very quickly. However because of the highly effective trailing stop that is employed with the second half of the position, you should find that the winning trades more than compensate for the losing ones.
Overall I would say I slightly prefer the breakout method because although you seem to get slightly fewer set-ups, the ones that do occur seem to have a slightly higher success rate. Nevertheless I think both systems could generate some very handsome profits in the long run.
(As an example of how profitable this trading method can be, the set-up bar that occurred on May 14th (on the daily chart of the GBP/USD pair) went on to achieve 226 points profit with the first half of the position and just over 1000 points with the second half of the position after the trailing stop was taken out).
Trading Method 3 - Spring Method
The final method included in the Forex Time Machine course is the spring method. This method is used to trade trend reversals and is very useful because these reversals often occur at the end of a breakout or momentum trade.
This method can also be used on any given time frame but you should find that, like most methods, it performs increasingly better as you lengthen the time frame.
This method uses the same technical indicators as the two previous methods. The only difference is that the spring method uses slightly different settings. Furthermore although this method also uses a tight stop loss, the exit points are slightly different. There is again a two-part exit strategy but the two profit targets are calculated in advance because this isn't really a system that generates big winners that run and run. It's main purpose is to capture short-term price reversals, so you will often be out of the trade after just 1-5 bars/candles.
VERDICT:
Overall I think this trading method has a lot of potential. Due to the very specific trading criteria you don't get that many set-ups on certain time frames (particularly the longer ones), but when they do occur they do tend to generate some decent trading opportunities.
In some respects the spring method is similar to a classic divergence method but this method seems to be a lot more reliable because of the nature of the entry rules that need to be satisfied.
You probably wouldn't want to trade this method in isolation because you would probably get frustrated waiting for good set-ups to occur, but you should certainly consider using it in conjunction with the other two methods.
Final Thoughts
On the whole I think the Forex Time Machine course could turn out to be an excellent investment for anyone who is looking to become a profitable forex trader. This course provides you with three profitable trading methods that you can use, and you can either use one or two of them in isolation, or you can use all three of them in conjunction with each other because they all trade different market conditions.
The methods do take a while to learn but once you watch each of the trading modules three or four times you will soon pick them up. Plus of course you have the trading blueprints that you can keep by your computer for easy reference.
The best thing about these methods, particularly the breakout and momentum methods, is that they can potentially capture some really big price moves due to the trailing stop that is employed with the second half of the position.
Also each method teaches you to move your stop loss to break-even as soon as possible so you will often be in a free trade soon after you enter a position.
As I've already mentioned you can use these methods on any time frame. So you can either use them to trade the intraday time frames, or if you only have a limited amount of time to trade every day you could apply them to the daily charts, for example.
You should find that whichever time frame you use, there should be plenty of good set-ups for each of the three methods across the various different currency pairs.
So overall I am happy to recommend the Forex Time Machine course and I wish you all the best if you decide to buy the course yourself. If you have any problems you are given a full year's worth of support (via email), and if you're not entirely satisfied with the product you can always send it back and request a refund within 60 days.
Here's the link if you want to find out more about the Forex Time Machine course:
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