The Testing Team have been reviewing Level Trader FX. Below are their findings:
10th February 2013
The New Year saw me reviewing something rather different than usual. As a change from trying to make money from horse racing I have been following a service trying to do the same thing by predicting the exchange rate between the Euro and US Dollar. Spread betting the forex market is big business and should you wish to familiarise yourself what it’s about then you will be spoilt for choice from an internet search.
Lee Scholfield, step-brother of jockey Nick, developed and sold a well-reviewed forex product called the Boss Trading Method. He says he has now moved on and he is now giving it away and you can claim a free copy from his website at www.leveltraderfx.com. Here you will see he is now offering his latest signals service for $97 + VAT a month. This will not be for everyone as it requires you to be online from 7:00 am for up to 4 hours most weekdays. His aim is to make at least 20 pips a day risking no more than 1% of his bank per trade with a maximum stop-loss of 10 pips.
Between the 7th and 30th January there have been 18 trading days. One day there was no trade and on another there was nine, with a total of 75 trades to date shows there was an average of just over 4 trades a morning session. Ten of these broke even, 53 hit their stop-loss and 12 were winners, a strike rate of 16% giving a net loss of 50.7 pips.
Lee has put his money on the line by funding an IG Index account with £5,000 which is to be traded exclusively with his signals. A screen shot summary of his trades is recorded each day. He is confident that this initial downturn is just a temporary setback and as he still retains almost 95% of his starting bank it may explain why he is not too worried at this stage. I will be continuing and will report my experiences next month.
Update: 10th March 2013
Continuing this trial from the 31st January through to the 25th February there were 18 trading days. The service provider Lee Scholfield doesn’t trade on Non-Farm Payroll day so that was a holiday and there was no action during the 4 hours between 7:00 and 11:00 am on another 3 days. The rest of the time he called 49 trades: 37 were stopped out, 6 at break-even and 31 for a loss. The other 12 trades were winners but there was still an overall loss of 22.9 pips.
The bank is being reported as near break-even as Lee doubles the stakes after a certain number of losing days – but on straight pip-count it is down 73.6 pips. This system is good at controlling losses when winning trades are scarce but is nowhere close to its target of 100 pips profit a week. I’ll be surprised if this service survives another month unless it shows dramatic improvement.
Update: 10th April 2013
I continued to log-on to Level Trader FX at 7:00am each trading day but did not follow it for the usual 4-5 hours but dipped in to note the odd trade and catch-up with the posted results. There was a gap in the service for the 1st week and when it resumed Lee stopped displaying his results. The impression I gained from the trades that I did see was that nothing much had improved despite a complete overhaul of his system. Financial trading can be a hard and thankless game.