If considering trading foreign exchange as a way of making some extra money, there are a whole host of products and systems which claim to aid the would be trader to increase their profits. Here we look at the “morning trade system” developed by professional trader Mark Fric.
In the first instance the morning trade system is a mechanical system of trading foreign exchange based upon the GBP USD pair. The system advocates setting up one trade per at around 06:30 in the morning UK time when the markets are at their slowest, the trade then realises its profit or loss based upon the high levels of volatility experienced in the first two hours of trading.
The system is a relatively simple one and easy to operate, and based upon two key indicators, momentum and CCI, the results of which are used to determine whether a long, short or no position should be taken. Based upon an analysis of these indicators, a trade is then placed with fixed profit and stop loss of 40 pips either side. Once the trade is set up, traders are then encouraged to leave their PC and let the trade play out, returning later on to check the results.
Does Forex Morning Trade Work?
Back testing of the method over an extensive period as well as an analysis of the developers own results which are published online would suggest that the Forex morning trade system does indeed work in the long term. However as with all technical analysis, one should be carful to note that past results are not guarantee of future performance of any given system of trading.
What are the Pros and Cons of Forex Morning Trade?
Pros:
- Extensive back testing suggests positive results
- The system is simple and suitable for beginners
- The system takes up relatively little time out of one’s day
Cons:
- The system will set you back $97
- All Forex trading carries a high level of risk to one’s capital
- A high level of discipline is required if the system is to produce results
- If trading manually, you need to be at your computer around 06:15 UK time
In summary, Mark Fric’s morning trade system is an interesting Forex trading strategy with proven results as seen in both the developers’ own records and from product testing conducted by a large number of individuals. However, before parting with the $97 for the system, one should consider first whether or not Forex trading of any sort is really the right choice of investment due to the high level of risk and requirement for strict discipline.
Frank Smith - Frank Smith currently works as an full time industry analyst for a well known construction company in Lincolnshire. In his spare time, ...
