System update: Bread and Butter Trader

Before I begin the autopsy of how we did in the quiz last week (don’t worry, there’ll be no naming and shaming!), I’d like to update you on the performance of a trading strategy that’s very close to my heart …

Last year, I showed a group of Trader’s Bulletin members the exact details of the system I use to trade the markets myself.

These automated signals have racked up a return of 204% across six instruments since September last year.

At the end of last year, the Cashmaster independent review team took a look at it. This is what they had to say …

“An overall profit of £4,500 in ten weeks … the system is easy to use and very profitable.” Cashmaster review team

And my members continue to bring in excellent results …

“The best bit of kit, I have ever bought, for just really straightforward trading – and that’s after over five years of trying most.” R.P.

 

“I like the simplicity and unambiguity of the system and Mark’s thoughtful and comprehensive support” M.W., Torquay

 

“I like B&B because: It’s easy and simple to use and does not require a host of often conflicting indicators. Trading times can be fairly flexible and one can trade fx as well as Indices.” B.C.

The trading technique I’m talking about is Bread & Butter Trader. If you missed out last year – you may be kicking yourself that you’ve missed these profits.

However, it’s not too late to join.

Bread and Butter Trader

But first I’ll explain a little about how it actually works …

… your computer or smart phone beeps at you …

… you log on to your spread-bet account …

… follow the step-by-step instructions …

… and collect a potential £100 or £200 payout.

That’s it.

There’s no software to upload on your computer.

There’s no signalling service or data-feed to pay for (these signals are free to set up – I’ll show you how).

And you’ll never risk more than 2% of your trading fund.

You can trade Bread & Butter at any time that suits you, from 7am to 8pm, but the beauty is that you don’t need to be stuck to your charts. Just log on to your account when you get a signal.

If you’d like to catch a slice of those 200%+ returns, simply get your name down here.

The great forex quiz – just how much do Trader’s Bulletin readers know?

A big thank you to all of you who took part in the fun quiz we ran last week. If you missed it, it’s still online here.

The verdict is that … much as I’d expected of Bulletin readers … you’re really quite a smart bunch of well-informed investors!

If you’d like to compare yourself to the majority, here goes …

1. Over 90% of you knew which was the base currency in a pair.

2. 93% of you knew that going long means buying the base currency.

3. 50% of you didn’t know what PIP stands for (tut tut!) – but, let’s face it, it may be mildly embarrassing, but that’s not going to cost you any money!

4. Of course, 94% of you knew what the non-farm payroll was.

5. And 80% of you know how to calculate your risk on a EUR/USD trade.

6. 74% of you knew that EUR/USD was the most traded market in forex.

7. And 86% of you know what a market order is.

8. Only a third of you knew that there were 2 GDP estimates ahead of the final figure (the advance report, and the preliminary report). Again, as long as you’re abreast of data releases (on forexfactory.com for example), you really don’t need to know this.

9. Nearly 60% of you got this one wrong: the bid price is the price you SELL at. (the ask price is the price you buy at).

10. 50% of you put MACD down as a momentum indicator, with only 37% getting this right. MACD is based on moving averages and is a trend indicator (I’ve put this on the list of things to cover in future Trader’s Bulletins).

11. 40% of you got the position of your stop right on the GBP/USD trade.

12. But you were up to speed on your technical analysis, with 74% knowing what a symmetrical triangle means …

13. And 88% understanding the doji.

14. 58% of you knew that the Canadian dollar was closely correlated to oil prices.

15. And 40% of you knew that AUD/USD was strongly correlated to gold prices.

16. This one surprised a few of you, with only 27% getting jewellery as the primary use of gold. According to the stats I found, around 78% of gold consumed each year goes into jewellery.

17. Another one that caught a few people out, with only 36% of you getting the right stop level on a USD/JPY trade. The value of a pip on USD/JPY is just 0.01 rather than the 0.0001 that we’re used to dealing with.

18. 77% of you knew that an exponential was weighted to more recent data, so would be more responsive than a simple moving average.

19. 87% of you know what slippage is (probably from experience!)

20. Well, 47% of you need to give yourself an extra mark here because the question really wasn’t clear enough to get the right answer. My fault – I apologise.

A FULL Bearish Gap is when the opening price of a candlestick is below the low of the previous one.

A PARTIAL Bearish Gap is when the opening price of a candlestick is below the closing price of the previous one.

Apologies again for the error.

I’ve had a number of requests to run regular quizzes, to keep us on our toes (and to ease us gently into Friday afternoons), so I’ll see what I can come up with.