Tuesday, December 29, 2009

Forex Trading Systems : Forex Ranger, an Unbiased Review

Yesterday while looking at my website's keyword log I found out that some people had found my website while searching for "forex ranger" due to this I decided to do a google search to find the system's website and then write a review about it to satisfy those visitors coming in looking for one. Today's post will evaluate the forex ranger trading system and its value for new and experienced traders as a forex trading system. I will examine all the information provided on the website in detail and I will then give my opinion whether this system is worth buying and trading.

First things first, why in the world does this guy say that trades used the system to bank more than a million dollars in 2009 when there is certainly no evidence whatsoever on the website to prove this is true ? This person is speculating in the best case scenario. Speculating about the possible profits a trading system could have had but stating them as real is misleading and unethical. Why isn't the proof shown if it really exists ? You guessed right, it probably simply does not.

The system's value is also probably exaggerated, it certainly looks like a simple Stochastics oscillator coupled with a MACD indicator with the histogram reversed. If you use these couple of indicators you certainly get extremely similar signals. You would probably get the exact same signals if you found the right stochastics and MACD periods. Below there is an image of the Stochastics oscillator (20/6/6) with a MACD (100/48/18) you can see a screenshot of the same period on the forex range website (screenshot of the site ends on the green line). If you think of the MACD as being inverted you will find that the signals match and you would have also entered the long trade pictured there upon a cross of the stochastics %K and %D lines backed up by a positive divergence in the MACD. Maybe the system is not actually based on these indicators but certainly a MACD/Stochastics system gives very similar signals.
Does this system have any merit ? Probably not. Systems like this depend extremely on your money management including your exit strategies. The system does well in trending periods as the ones shown on the site but ranging periods are obviously a completely different matter. Would I buy the forex ranger trading system ? No. Why would I buy any system that gives the same results as a simple stochastics oscillator coupled with a MACD, it just does not make any sense.

My advice is simple, focus more on your money management skills and the way in which you exit the market than on finding perfect entries and you are bound to become profitable in the world of fx automated trading. If you would like to learn about automated trading and how you too can design and program your own long term profitable systems please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !

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