I'm subscribed to The Beatles ans The Rolling Stones.
As stated in the description The Beatles is much more aggressive. So when opening a long position and the markets keeps falling, The Beatles scales more and more into the long position (hoping, that there will be a bounce soon to exit at break even or with a tiny profit). I would say that the market timing entries are good to excellent, when the market keeps in a uptrend. The Beatles buys fast pullbacks and exits them as fast, when a rebound occurred. There is a problem, when the rebound doesn't come and The Beatles starts to scale into a losing position, to average down the entry price. So you can get huge draw downs in your equity curve. If you trade it, don't leverage this system too much into your account. Me as a discretionary trader has sometimes the same strategy to sit some huge sell offs out, so this makes this system not diversified to my strategy, you need to know this.
The Rolling Stones doesn't normally average down the entry price, which makes it less aggressive, but at the end also hopes that the markets will rebound after a heavy sell off to exit at break even or with a tiny profit.
Both systems often move stops further down, which makes sense, but you need to know this.
Main problem will be a -20% sell off without any rebounds. Then you can have easily a draw down of 50% to 70%.
If you're seeking for good entries and if you have a good risk management, those systems are excellent!
Since both of the vendor's other two systems are known to occasionally hold on to losses for a long time and run up large drawdowns I was hoping that this system would be different. Now it turns out that he is again using the hold and hope strategy. Too much aggravation, not worth for me to continue.
This system was good until January when it started taking excessive risks with trades clearly against trend without proper SL. Some recovered but only luckily and some took a huge loss. Now there is another bad loss still open. And this can only get worse.
As recently reported this system is very risky. Took a long on the morning of FOMC and added a second position 16 pts lower that morning going into the report. This trade ended up positive but could easily be a huge loss with the unpredictable results from FOMC. Also, 3 days later doubled down on another 14 pt loser and saw it go another 30 pts in your face. MOVED the stop lower. That shows irresponsibility! This type of trading will result in a major loss, it is just a matter of time.
The system entered long just before the market moved down and stayed with it to wait for the rebound, but it exited just before the big move up next couple day. Good timing!
The big draw down will occur in the Future, just don't know when, but it will.
Opening a long position at 1/31/14 15:58 (2 minutes before weekend close, why ???), moving the 'catastrophic stop' down because system 'says still long', adding to a losing position and finally getting lucky. Sorry, I have to unsubscribe and run far, far away ...
Until now this system has shown good results. It’s true that it is a relatively young system but the developer has another two systems that are trading the same market and have consistent gains for longer periods. On this basis, we can expect the owner knows well the market and would achieve positive results in a longer term for this system as well. At this moment - four stars. If the system continues with the same results until Jun 2014 (one year in production), I’ll come back with 5 stars.
