Introduction

So here we go. John has brought me aboard the good ship FX-Fun as a tester/reviewer and I will be looking to do the business on any systems that happen to catch my eye. It’s great to be here and I thank John for his kind words of welcome last week.

 I will look to run an initial test of one month, with the possibility of extending that run for those that show promise.

 It will not necessarily be those that flood your in-box which come up for testing but those which have caught the eye for some reason. Maybe they’ll seem to offer some new twist on an old idea, or perhaps something which seems to offer something completely new. Who knows. All I can say for sure is that the tests and reviews will be completely fair and impartial – no affiliate connections here – and if I like something, you will be the first to know.

OK, down to business… First up for us is an indicator from Terry Brooks called FXSmooth.

Note that I said indicator, not system. This is not a complete plug-and-play system which holds your hand as you trade…nor is it a bot. It actually requires a bit of thought and attention.

 Terry sent me the Platinum package, which comes as a .zip file and includes indicators for the EURUSD, GBPJPY, GBPUSD, USDCHF and USDJPY. As well as these currency pairs, there are also indicators for Oil and Gold and an exit indicator.

It is very important that the indicators are attached to the MT4 charts they represent. They are optimised for those pairs. Having said that, you also get a platinum indicator, which can be used on any pairs other than those listed. As well as the main pairs, I have attached platinum to the EURGBP, EURJPY, USDCAD, EURCHF and AUDCAD.

There is no particular reason for this, other than I wanted to test an equal number of smooth and platinum charts and I had these charts already open on the account.

 I didn’t use the gold and oil indicators, as I have never traded these markets before. Maybe later.

Also included in the package is a brief installation manual and up-to-date statements for the currency pairs traded.

 Downloading and installing the indicators takes no more than a few minutes, however if you need more info on installation, there is a link to youtube, where you can view a video of the process.

All-in-all, a no-nonsense product, which is fine by me.

 Before getting started I fired off a few questions to Terry and without fail, he responded extremely quickly, often within a couple of minutes. After-sales support, therefore, gets a big thumbs-up.

 Terry recommends IBFX, Alpari and FXDD as the brokers to use and I used an account with FXDD, however I see no reason why the indicator wouldn’t work with other brokers.

Once you add FX-Smooth to your charts, you will have your candlechart and the entry and exit indicators in separate windows for each pair.

The indicator is optimized for the 1-Hour time-frame – and that is what I have used for the test – however Terry says that any timeframe can be used. I would say straight away, that I feel it works best on the H-1 and upwards, purely because no indicator, no matter how good, will always tend to lag – even a little – and on the longer time-frames this will be less of a factor. Stick it on a 5-min or 15-min chart and you will immediately see how frantic it gets. Not for me, I’m afraid.

 Having said that, from what I have seen so far, FX-Smooth does indeed seem to have very little lag. I will get to the little quirks that it does have later on throughout this test.

The first thing I did was to customize the appearance of my charts. The indicator default colours are green and red. Green for buy signals, red for sell. I changed these to blue and red. Ditto for my candle chart. Purely personal, I know but when you’re going to be looking at something all day, you should at least protect your eyes from garishness! Sorry, Terry!

 On first viewing, you may be a little disappointed, as there are no bells-and-whistles here. The indicators consist of an angular snake of blue-and-red lines. Entry in one window, exit in the other. The idea is you go in when you see the colours change on the entry indicator. You will also get an audible alert when a trade is looking likely and a note of the recommended entry and stop-loss. The exit point is more of the same, with an audible warning and a colour change. That’s it.

The original plan was to start the run on the 1st of July, however due to the Independence Day holidays, I decided to knock it back, beginning instead on Tuesday the 6th. I could have let it run, just to see what happened, however I never trade that week myself and I like to run a test under as close to real conditions as possible. I don’t see the point otherwise.

I left the one day (the 5th) as a buffer afterwards and then let it run.

I have set up the account with a $3000 (USD) balance and will be starting off at 0.5 lot-size. This equates to around $5.00 per pip. As a slight departure from the norm, I will be giving results as profit/loss figures, rather than +/- pips. This saves any confusion over the different pip-values and shows at one glance what kind of profits (or losses) in hard cash you will be looking at…and ok, it saves me having to continually translate from abstract numbers to cash. If we’re all honest, the first thing most people want to know is how much cash can I make with this? Can I live off it? etc, not how many pips does it average.

The 0.5 lot is, I admit, slightly aggressive for an account of this size, with 0.25 perhaps being more suitable, however I have to come clean here and admit that I have been using FX-Smooth very successfully over the last month on one of my accounts, so I know what it can do and the draw-down levels to expect.

The caveat to this is that I have added my own twists to the indicator and am not using it straight out of the box. I’ll avoid muddying the waters for now and will keep these additions out of the picture until later in the day. Even without my add-ons though, I feel confident that we can handle the lot-size.

Terry is very open to suggestions as to future directions, so maybe these add-ons could be something to talk about in the future.

 There are no recommendations as to trading times and trades can and do trigger at all times of the day and night. This is not ideal. Most – if not all – serious traders only work the main open times. You will most certainly miss many set-ups, especially using the longer time-frames and this is something I will come back to over the month.

 I will run the test using profit figures from trades taken only, if I miss one and it goes on to bag big pips, I’ll mention it here but it will not be added to the figures. You will have to be around your screens all day to catch the alerts and in the real world we all know this is not possible. Real life has the habit of getting in the way.

However, for the last month I have been running my own personal test on a bot and this is going to be a long-term thing, so my screens will be on 24 hrs-a-day. This means that if I see a set-up at any time, then I will take it.

I will also let the trades run from open-alert and entry all the way to the indicator exit signal. I won’t deviate from the exit signals other than closing it when I first see the chart the next morning if a trade has signalled close overnight. I will not manage the trades in any way.

 Right – at last – some of those figures (all times are GMT and on the pair, ‘fx-s’ is an FX-Smooth chart and ‘fx-p’ a platinum one):

Tuesday, 6th July

 1501 Sell USDJPY fx-s

0707 close +$108.62

1601 Sell GBPJPY fx-s

 0707 close +$382.98

2101 Sell GBPUSD fx-s

 1105 close +$145.00

 The last two were closed manually in the am, with the official exit alerts having come slightly earlier but still ok.

This felt incredibly strange to me, to leave a trade running with no trailing-stop. Ok, I did have a hard-stop in place but how frustrating would it be, to have crawled out of bed only to find that a nice overnight profit had disappeared – perhaps even reversed to stop out – in the hour or so before wake-up time, in a pre-uk opening move.

 Again, however, I am running this as it comes, straight out of the box, so that’s what you’d be doing.

 Wednesday, 7th July

 0235 Buy USDCHF fx-s

1102 close -$146.34

1001 Buy USDCAD fx-p

1203 close -$127.62

1204 Sell USDCAD fx-p

 0714 close +$549.45

 1502 Buy GBPUSD fx-s

0714 close +$90.00

1602 Buy EURUSD fx-s

1848 close +$30.00

 1702 Sell EURGBP fx-p

1854 stopped -$174.94

 1903 Buy EURUSD fx-s

 0714 close +$30.00

 2007 Buy GBPJPY fx-s

 0910 close +$600.29

2103 Buy EURJPY fx-p

1002 close +$306.43

 2109 Buy USDJPY fx-s

 1003 close +£226.94

 Yes, that first trade was opened at 02.55 as I was up and about. I must admit, it didn’t feel right but I obeyed the signals. Hey ho..

. Letting all those trades run over night was a real struggle for me but in this case, it certainly paid off! To give you some idea what I was looking at, the profit figure stood at +$452.71 at 00.28 before taking off big-time, to peak at +$1131.42 at 01.11…I’m guessing you can already see the kind of decisions you could make to increase your profits even more.

 Interestingly, there was a trade on the AUDCAD (12.00 till 13.00 the next day) which FX-Smooth didn’t pick up. This closed at + $765.00, from a high of +$935.00, so not so hot there.

I also missed two, on the EURCHF (06.00 till 00.01) +$380.00 with high of +$525.00 and on the USDCHF (13.00 till 03.00) +$380.00 and high of +$480.00…

 Thursday, 8th July

 0807 Buy USDCHF fx-s

 1008 close -$104.44

There was a bit of indecision on this trade, with the trade coming on a moderate zoom-candle. The indicator will flicker from one colour to the other in these situations and you must wait until the candle has closed before pulling the trigger. Even doing this here, however, didn’t help any, as it reversed on us. The indicator then gave a quick succession of conflicting signals, first sell, then an immediate buy. I chose to stay out. See what I mean about decisions?

 Anyway, first week over, as nothing happened on Friday and I had already planned to only take an entry if it came before noon, uktime. As it turned out, there was nothing going, with a lot of the pairs centipeding along their 20-day average.

 So, after all that, we are sitting on a new bank of:

$4909.74

+$1909.74 in clear profit over three days and an increase of +63.66%.

I have to be out for the day on Monday, so no update till Tuesday but watch this space to see if we can continue on in this way.

 Graham.

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    • John W
    • July 12th, 2010

    Hi Graham

    Will follow with interest as your results have been good so far.

    On the face of it it’s exactly the sort of product I would avoid like the plague. The usual internet marketeer website, the special bonus offers etc etc.

    I notice the domain name was only registered a couple of months ago and there seems to be no other reviews of the service despite the usual website testimonials of people saying how much it had changed their life.

    You mention that you’ve been using the indicator for over a month already, do you mind if I ask how you found out about the product ?

    Thanks
    JOHN

    • David
    • July 13th, 2010

    I agree with John that on the face of it the web site looks just like a lot of other hyped sales pitch pages, and I hate both the upsell of a “better” version and the usual bonuses. Nevertheless Graham’s initial input above looks interesting – is there any information on how the indicator is constructed?

    David

    • nick
    • July 13th, 2010

    Welcome Graham, I look forward to your reviews.

    • phil
    • July 13th, 2010

    Hi Graham, whats all this fx smooth then, this is not a bot then i assume, what a profit you made, very interesting plse keep us informed

    Phil

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