This is a product that was brought to our attention by a member that spotted it on eBay. It is referred to as the 1:1 Risk:Reward system on eBay if you wish to search for it.
The eBay page introduces Jamie as a UK based day trader who has “tried numerous strategies, indicators and trade signal services before I finally started to make decent gains through trading”. His strategy allows him to trade for 45 minutes a day taking between 0 and 4 signals.
There then follows some results, for the last 14 months or so, all of them positive return months with an average return of just over 200 pips per month, up to and including the month of September 2010.
Trades are Set & Forget and the results are based on this approach. Some members earn 50% more per month with some manual trade management but this is not necessary to attain the advertised results.
Jamie states that he is “not a salesman”, there will be no “50 page eBook detailing all areas of trading and giving you my life story”, “My document gets straight to the point and tells you exactly what you need to do to mirror my results from day one”, “No padding, no waffle, just simple information and strict guidelines”.
A simple 11 page pdf (manual) and a Candlestick guide supplement, the latter being self explanatory and nothing new to those with experience.
The one page introduction to the manual is followed by a page on Spread betting and then it’s straight into which markets are traded, two Forex pairs on the 15 minute time-frame.
It then takes 3 pages to describe the strategy including an example or two, “No padding, no waffle” as promised.
There is a section on increasing gains and the conclusion mentions that the system has an 80% win rate. Quite impressive considering the basis of the system is a 1:1 Risk:Reward ratio.
Set up is easy on any standard charting package, all that is required is a 15 minute candlestick chart, no indicators required (to trade the base method). There is mention of two indicators, the MACD and Stochastic, but these are not necessary to operate the system as per the advertised results.
The system is traded from 07:30 UK Local time for around an hour. On occasion some trade management is required at 11:00 UK Local time for unexecuted or open orders, but this is not typical.
In terms of Entry, the manual is indeed to the point and concise. In fact it was a little too concise in our opinion and we had to ask a number of questions just to make absolute certain we had interpreted the rules correctly. The responses were within 24 hours, detailed and allowed us to proceed with what we considered a sound understanding.
So, when traded “as is”, to attain the advertised results, the Entry is pretty much 100% mechanical as it is based largely on specific Price action. The Stop loss is clearly defined and as this system is based on a 1:1 Risk:Reward principle the Target is 100% mechanical as it is the same distance from Entry as the Stop loss.