FX Turtle Review – Forex Signals Service
About the FX Turtle Signals Service
The designers of this signal service advise that the optimum method to adopt in order to create consistent profits from Forex trading is to develop and thoroughly test a strategy.
They also state that possessing such a powerful tool ensures that you will be less stressed by your investing activities especially if it has been specifically adapted to comply with your own trading style and personality.
For example, if you have a tendency to be impatient, then opting for a plan that is centered on the daily time-frame would be a mistake. Your optimum choice needs to precisely express your moods, risk appetite and psychology. Technically, your strategy must aim to secure wins that are larger in size than those of its losses. You would be well advised to base such a plan on the famous trading maxim which states: ‘Curtail your losses as quickly as possible but allow your profits to grow’.
However, although this concept seems to be simple in nature it is, in fact, more difficult to apply in reality especially if you have just sustained a series of demoralizing losses. Under such circumstance, novices have a bad habit of continuously advancing their stop-losses away from their opening prices on the hope that price will eventually reverse back into their favored direction. By adopting such a policy, they can quickly knock-up losses as great as 20% of their total equity as opposed to quickly accepting one of just 1%. They also tend to snatch at their wins without allowing them to fully mature by capturing, for example, just 20 pips as opposed to a full potential win of 100 pips. Without a properly constructed trading plan, they allow their emotions to rule the roost.
The Importance of Risk and Money Management
You will discover that most Forex experts will advise that you incorporate the concepts of money management into your strategies as a primary objective. In particular, they recommend that you never risk more than 2% of your total account balance per trade. This is because if you do suffer a sequence of 10 consecutive losses, you will still retain a large proportion of your original account size. Essentially, you must also appreciate that unless you possess a trading strategy exhibiting a positive expectancy value, you have practically no hope of trading Forex successfully.
Description of the Fxturtle
1. The above vital concepts have been utilized to construct the strategy that is central to the design of this signal service. A major point to note is that no Martingale or Grid concepts are involved in the design whatsoever. Consequently, you can trade Forex by deploying the Fxturtle with full confidence knowing that you will never over-trade by exposing your account balance to margin calls or excessive drawdowns.
2. In contrast, the strategy aims to detect tops and bottoms of currency pairs that are range trading within well-defined horizontal channels. The key time-frames used are the one hour and four hour.
3. The plan aims to identify about 100 high quality trading opportunities per month exhibiting maximum profit potential with minimum risk exposure.
4. The average stop-loss per position is 50 pips.
5. The average profit-target per trade is between 40 pips and 250 pips.
6. The strategy aims to gain about 500 pips in profit per month
7. As the plan includes hedging as a technique to reduce risk levels, you are recommended to select a broker which supports this trading technique,
What to Expect from the Fxturtle
This signal service offers three primary modes of operation depending on your growth aspirations and risk preferences, which are:
1. Conservative Growth
Monthly growth target is between 3% and 5%.
Maximum monthly drawdown is 10% or 1000 pips.
Focuses on 3 currency pairs, which are EUR/JPY, GBP/USD and GBP/AUD
2. Moderate Growth
Monthly growth target is between 5% and 10%.
Maximum monthly drawdown is 20% or 2000 pips.
Focuses on 3 currency pairs, which are GBP/JPY, GBP/USD and GBP/NZD
3. Aggressive Growth
Monthly growth target is between 10% and 15%.
Maximum monthly drawdown is 40% or 2000 pips.
Focuses on 6 currency pairs, which are EUR/JPY, GBP/JPY, GBP/USD, GBP/AUD, GBP/NZD and USD/JPY
The above description indicates that the Fxturtle is constructed on sound trading concepts which suggest that it has the potential to bring home the bacon. However, how does this design stack up in reality and can it truly deliver a stream of consistent returns?
An investigation was conducted with the specific intent of addressing these vital questions. The test results collected are recorded in the next table.
The following key parameters were next deduced using the average values portrayed in the above table. The primary intent for performing this task was to provide a mechanism which would enable you to quickly evaluate and compare the potential trading performance of the Fxturtle with other Forex software product.
1. Win-to-loss ratio = 40%
2. Reward-to-Risk ratio = 1.50
3. Expectancy Value = $0.0
These results suggest that the Fxturtle will just about break-even when traded over the long term.
No such remarks were forthcoming following an internet search that could help endorse the performance of this service or otherwise.
This service supports a two week trial period costing just $25. Thereafter, the monthly subscription leaps to $200.
The test results displayed above produced a worrisome set of trading parameters which indicate that you will only breakeven by utilizing the Fxturtle over any specified period of time. Such an outcome implies that your hard-earned profits could quickly disappear especially if you are confronted by a sequence of consecutive losses.
If you are still keen to delve deeper into the behavioral patterns of this product, then you should seriously consider implementing our recommended course of action. If you adopt such an approach, you will then be able to readily compare the Fxturtle to other Forex software products.