When is a Forex Strategy Not a Forex Strategy?
When is a Forex Strategy Not a Forex Strategy?Snapback FX is a trading system making some noise at the moment by promising a simple signal that anyone could profit from.
The package arrives as a well-presented trading manual with some bold promises on the front cover:
“NO magic indicators, NO fantastic mathematical equations, NO bogus tips or recommendations. Just a simple, solid strategy that you can use every day to profit from the forex markets in just 10 minutes.”
Snapback FX: How does it work?
The premise is that this forex strategy looks for times when the market has overstretched itself in one direction and like an elastic band will snap back in the direction you predict.
The strategy is certainly simple on the face of it, in fact I’d hesitate to call it a strategy, or even a signal, as to my definition, these involve some very precise entry and exit criteria. For example, one of the entry criteria is to identify an up trend or a down trend. The definition used is fairly simplistic, which is good, but also leaves much open to interpretation.
Snapback FX would best be described as a simple method that is not exactly rocket science or original. On the positive side, it is easy to grasp the fundamentals and would probably suit a complete beginner trader looking for a framework to start their trading within.
Does it work?
We’re told Snapback FX has a 70% strike rate, but no proof or record of trades are provided.
No doubt the Snapback creators could provide plenty examples of winning trades, but ultimately I believe even if we were granted access to their personal trading records, the strategy involves a lot of subjectivity, and so each trader’s performance would vary.
This is not necessarily a bad thing provided you have the right expectations with this package. As usual, I’d suggest taking the sales page with a pinch of salt. We’re reminded that “even with just £1 trading you could be looking at pocketing around £698 during your trial period alone”.
Although appealing you must be aware that the trades are taken on 4 hour charts (a good thing in my view), with stops which can be 100 pips or higher. There’s nothing wrong with this and I’m all for wide stop losses to avoid trading churn, but it does mean that even to trade at “just” £1 per point you’d probably need an account size of around £5,000. This is realistic in my view and more trading strategies would be best served by pointing out this sort of equity requirement. Thankfully, you can start a lot lower if using the likes of Smart Live markets.
The bottom line
Would I recommend Snapback FX? Given what I’ve written so far, you might be surprised to hear that yes I would. You can get much of this information for free on sites such as www.babypips.com, but realistically I know that most people like the certainty of a trading strategy provided within a package.
It would suit beginners looking for a methodology to start their trading with. As methodologies go, there is nothing ground-breaking about Snapback, but what it will allow you to do is focus your trading on one approach. The real success will come when you really learn about the characteristics of different forex pairs – the nuanced intuition that only comes with experience. In this way Snapback is best seen as a starting point that is far from being a complete solution. The price is just under £50 with a two month money-back guarantee.
OK for complete beginners.
WRP Ratings:
Value For Money: 2/5 – Nothing ground-breaking in this manual, it’s not expensive relatively.
Profit Potential: 3/5 – Hard to define, but should serve as a good starting point.
Ease Of Use: 5/5 – Well presented and easy to get going, but this is only the beginning.
Longevity: 3/5 – You’ll probably move on from this in time.
WRP overall rating: 2.5/5 – OK for complete beginners.
