Have You Been Making Money With the Signals?

These new day trading forex signals began on February 23, 2009. Thus it has been just over a month, and it is time to evaluate how these signals have done.

A couple of trades were canceled, and these will be left out of the evaluation.

The number we really care about is how many pips did these signals give you. If you followed the signals and the comments you would have made +488 pips in just over a month.  This is not multiplying anything by multiple lots.  Each signal has potentially 3 different profit/loss positions within it (a 1/3 portion for each profit target).  All of these positions were combined to provide us with the above figure.

If you only took 1 position and exited at the first target always, you would have made 108 pips.

If you opened 2 positions and exited at the first two profit targets, you would have made 292 pips.  This is much more than simply doubling the above number because we are taking  larger profits with that second position.

And with three separate positions we make 488 pips.  As you can see, it pays to play more positions but to exit at 3 different price levels.  You can trade as many lots as you want but good results from this strategy come from exiting 1/3 at each target.  This time frame does show that it would be more profitable not to exit at the first target, but instead exit 2/3 of the position at the second target and 1/3 is kept using the trailing stop.

Your risk must still most definitely be under 5% and preferably under 2% of account value.

We had 21 signals during this time frame. Here is the breakdown of those signals.

-8 signals resulted in a overall loss (38%)
-3 signals resulted in breaking even (14%)
-10 signals resulted in a overall profit (48%)

Since generally we trade in multiple positions, we need to look at the average profits and losses for each signal overall.  Assuming each position within a signal is 1 lot:

-Average loss: 23 pips/lot
-Average gain: 37.72pips/lot

These are some key statistics. There are more, but I won’t bore you with them. The bottom line, is that if you use the signals how they are posted and updated, you would have made money. These signals are valid and I use them myself. They are not simulated results, these trades have all been posted in real time as the market unfolds. You don’t need to be right every time to make money, and you don’t need to hit any “home runs” either.

The is one simple strategy and only provides a small glimpse into what is possible with the forex market.  This strategy does not look at trends or indicators, but simply looks for very short term trades based on opening volatility, and even being so simple it is still profitable.  Soon a new service is going to be launched which will provide you with many signals each day, based on a multitude of cutting edge trading techniques – on all time frames!  Keep checking back as that service will be arriving in the coming months.

~Cory Mitchell
Market Strategist
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NOTE: Past performance is not indicative of future results. Trading the forex market involves substantial risk. By using these signals you do so of your own accord and at your own risk. You waive Cory Mitchell and http://vantagepointtrading.com of any liability relating to any losses, including other missed opportunities.