What’s Amazing With The Amazing Forex System?
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By Nicholas Jarder
Amazing Forex System is an eBook about a forex trading strategy developed by Robert Borowski. To an experienced trader, there is really nothing amazing with the eBook nor the trading strategy contained therein. However, the trading strategy never-the-less is a proven technique and employs well-founded and logical reasoning.
The Amazing Forex System employs a popular trading strategy called ‘trading the news’ which I have often used myself in the past with a great deal of success. Basically, the strategy calls for placing two orders (a buy and a sell order) simultaneously just minutes before a highly anticipated, market moving news hit the wires. The news comes in the form of agency reports which by law are mandated to be released publicly and on a calendared basis. The news normally contains economic data and/or policy pronouncements that may greatly impact the currency market. Economic news reports of great significance often throw the market into a frenzied state. Interest rates, unemployment and export rates, or the central bank’s policy shifts, can drive the market crazy.
Since the release of such highly anticipated news is often followed by substantial price movements, there is nothing more for the trader to know except to pin down the exact date and the exact time the news is to be released to the media. Where ever the market goes, up or down, or however the major players react to the news will be of no consequence. With this strategy, the trader is sure to catch the trend and trade the opportunity for profit.
The Amazing Forex System may be too simplistic and rather straightforward to many sophisticated traders but it works! In fact I have seen an automated trading system that has incorporated a robot built with the same principles. Besides, as I have said earlier, I have used a similar trading strategy in the past with great success.
There is no perfect trading system. They all have flaws. Similarly, the Amazing Forex System has its own flaws. Here are some of them.
The market becomes highly volatile during important news events. During such times, the dealers widen their spread. This will definitely impact your bottom line.
Big market moves especially those triggered by news events are often accompanied by equally big whipsaw movements. Prices may soar in one direction for a while only to be whipsawed back to the other direction. This can turn your profit into losses if you are not fast enough to get out of the market while you are still ahead! Or, if you have not cancelled out your other entry order, it could be triggered by the whipsaw move leaving you locked up with losses. To avoid such situations, you need to place OCO (one cancels the other) orders.
The stop loss order in this strategy is set at 10 pips. In a very volatile market this is considered too tight! For all you know, the market may momentarily move against your position, trigger your stop, then return again to resume its move. In short, with the tight stops it employs, you can be unnecessarily taken out of the market despite trading in the right direction.
But even with these misgivings, I still think the Amazing Forex System is a workable trading system which can be a profitable after a few adjustments. With some more fine-tuning and a lot of actual hands-on testing of the Amazing Forex System may yet prove its value with consistent profitable trades!
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