We have always enjoyed working with the folks over at Indicator Warehouse and recently we began discussing hosting an event with Mohan, the creator of the Boomerang Currency System, for an educational event. We have enjoyed getting to know Mohan and look forward to having him on as part of our Double Header Event this Thursday! We thought it would be a good idea to test out the system before having Mohan speak to our group so one of our traders downloaded the software and tested it out, here is what he had to say:
The following post does not constitute a recommendation from TradingPub but is simply one trader's experience with the Boomerang Currency Trader:
If you are interested in trading currency futures or the 6E EuroFx contract in particular, the Boomerang Currency Trader (BCT) software is definitely worth a look. BCT is a program that runs off of the NinjaTrader platform and can be traded at virtually any time of the day. Although the EuroFX contract trades 23 hours a day, Mohan, the developer, recommends trading between the hours of 7am-1pm CT since that is the timeframe where most of the volume is transacted. As a longtime user of NinjaTrader, I found the software simple to download and install. The charting templates and indicators are already preset so that you can get to trading as quickly as possible. There are only about 4 or 5 general rules to follow so even the novice trader should be able to learn quickly and at least get to the point where they can begin simulating the system. The picture below shows an example of the chart setup through NinjaTrader:
As with any new trading “system,” it is always wise to demo or sim the trades in a practice account. I tested the system for a few days and found the methodology to be straightforward and easy to follow. Out of the 5 trades placed while simulating, all were winners even though I did not completely wait for one of the confirmations to complete. After 3 days of demo testing, I decided to go live. My first trade went immediately against me for about 6-7 ticks but I stuck with the rules and met my profit target of +8 ticks within about ~30 minutes. On day 2, I took 2 trades and had one winner and one loser. The risk/reward ratio is not quite 1:1 so in my opinion, an accuracy rate of 60% or higher will be needed to be profitable. Day 3 had some nice setups during the early morning opening session. I took a long trade near the open for a quick +8 points and then watched as a short setup appeared not long after. I missed the initial entry bar and ended up chasing the trade down. The market traded ~+3-4 ticks in my favor before a long setup triggering for a reversal. I bailed the short trade for a small loss and missed the reversal buy which would have been another +8 ticks. After learning my lesson about chasing the market, I waited patiently for the next short setup which I did take for +8 ticks. An important rule to live by in trading is that there will always be another trading opportunity so don’t chase the trade! The currencies are generally slow moving markets so exercising patience and waiting for all of the indicators to line up to allow the trade to work is extremely important.
To learn more about the BCT, you can go to Indicator Warehouse.
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Risk Disclaimer: Past performance is not indicative of future results. Futures trading involves substantial financial risk. Views of guest commentators do not represent those of TradingPub.com. Article intended for educational purposes only and not meant in anyway as a solicitation to buy or sell certain securities. Please consult your personal financial adviser before using this information for your own trading purposes.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.