Richard Hill Forex Net Trap

GeofT said:
This is a set and forget system that gets you in with the direction of the trend with a good R:R.
Click to expand...

Time will tell on this one - Personally, I believe the system is too simple to provide long term results - that is not to say complex systems will perform better per se...

I would regard a trade with good R:R as one that can have a tight stop - usually just the other side of resistance (be it ma, daily range, and/or a fib levels) - strong trend as indicated by an oscillator and an ma) with a reasonably 'free passage' (no resistance levels) up to the profit target (which could be next fib for instance)... Normally the potential trade would be confirmed by looking at larger timeframes to make sure the longer term trend is inline with the shorter term one (safer trade) - but it is still possible to profit from short term trends that go against longer term trends... In my view the method NT uses to establish trend is flawed as it is seriously laggy and should really be used as confirmation rather than the sole decider...

But of course this moves away from NT, its 'set and forget' approach and its ease of use... Overall I do not believe NT has good R:R as the stops and limits are fixed irrespective of resistances that appear on the charts when you add a few indicators... Having said that it does appear to have been profitable in the recent past (not many months of results) - but I am sure it could be better with extra criteria that kept us out of entering many of those bad trades...
 
Melb said:
... In my view the method NT uses to establish trend is flawed as it is seriously laggy and should really be used as confirmation rather than the sole decider...
Click to expand...
I would not agree with this. In a way, his use of the MA gives you an idea how the late Asian session compares to the rest of the Asian session and late American session. Somebody posted a link here to the "London Open Move" or something system. The guys behind it say that their system is built on the idea that the London session continues the trend set by the Asian session. RH is then exploiting the same idea.
 
Tanguero said:
I would not agree with this. In a way, his use of the MA gives you an idea how the late Asian session compares to the rest of the Asian session and late American session. Somebody posted a link here to the "London Open Move" or something system. The guys behind it say that their system is built on the idea that the London session continues the trend set by the Asian session. RH is then exploiting the same idea.
Click to expand...

Tanguero, a point taken, I think.

My understanding is that this strategy seems is how to trap the British Early Morning Momentum.

1) If UK Morning momentum continues the trend (MA) from early European Session (4.00 am) yes we are lucky, get nice pips.

2) If UK Morning momentum changes the early Morning trend (MA) strongly, there are no trade. Actually we often see this.
(NG. This system has no intention to make a trade every day. NO GAME - NO LOSE another trick for a "coin flip" system to increase the odds. I have tested double bet (long and short) system, but that would create two losses in a day, NT's point of view, no trade is fine as not trapped.

3) If UK Morning momentum changes the early Morning trend (MA) weakly, comes back and trap, I called this as Boomerang :) Then let the game play between -30 and 50 until 8:30. Hopefully coming back to our trend.

Euro mad volatility price movement is like M or W, not Boomerang ! NetTrap does not like M or W movement. But quite surprisingly NetTrap rather managed well against hyper volatility . As someone mentioned here, I think R:R and money management helps a lot.

I myself became more interested in trading and money management, I won't modify NT but I just started to study a bit more further.

Finally, people forgot the principle, :rolleyes: NT is the system without monitoring.
(Of course it is up to you! :)

P.S. I have finised NNT (Nassim Nicholas Taleb)'s Black swan, What I said here may be "Narrative fallacy",
what I rather prefer to say yes, we are just lucky if we check the monthly results. :LOL:
 
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I can't comment on the success or otherwise of net trap, but I do trade mechanically and I can tell you I'd take a simple system over a complex one anyday. A lot of it comes down to basic statistics - a complex system has more "degrees of freedom" which reallly means there is less probability of continuing similar results in the future.

Don't waste your time with lots of extra filters and rules - if it works trade it and swallow the drawdowns, if it doesn't look for another idea.
 
Ok maties. A treat for all those who ask about Net Trap historic results. From the sales blurb figures, my roundup emails from RH and Aprils roundup emails kindly donated by Peter1966 here are the First "official" full year Net Trap results as traded by the inventor Richard Hill. This Covers 12 months from June 2009 to May 2010, we are just starting the second year of trading the system. :smart:

12 month Total = 1800 pips profit! Average 150 pips p/m profit.

Monthly Breakdown

Jun 2009 +298 pips
Jul 2009 +410 pips
Aug 2009 +257 pips

Q1 total +965 pips = 53.6% annual total

Sep 2009 +120 pips
Oct 2009 +56 pips
Nov 2009 +221 pips

Q2 total +397 pips = 22.1% annual total

Dec 2009 +12 pips
Jan 2010 +125 pips
Feb 2010 -29 pips

Q3 total +108 pips = 6% annual total

Mar 2010 +154 pips
Apr 2010 +139 pips
May 2010 +37 pips

Q4 total + 330 pips = 18.3% annual total


As you can see the Greek euro crisis started gathering pace in Feb 2010 and the Euro lack of stability in General has caused lots of volitility that effect GBP / USD and Net Trap but March and April where still ok months. With the flare up again in Euro worries during May 2010 again Net Trap suffered but coped better than in Feb 2010.

I suspect as long as the Euro is all over the place along with the other Global economic uncertanties we wont see a repeat of the fantastic run NT had at it's start during the Summer 0f 2009 during the mini bull run in gobal markets. But time will tell.

If it can average 100 pips p/m in year 2 in the current markets and the potential world austerity ahead of us I would say it's a pretty solid system which should give good results in the future once markets resume to a more settled pace. (y)

Happy chatting


Mark
 
MikesDirect said:
Thanks for the feeback guys,

I once read that the "only" people making money out of Forex are those "selling" Forex Systems (something tells me you've probably read it too).

I am genuinely not having a swipe at RH here, but human nature being what it is, if you're making the beautiful amounts of money out of your beautiful system, then why on earth would you even bother to try and "sell" it to people (hello?)? You might share (ie GIVE) it to family and close friends perhaps ... but why bother marketing (SELLING) a system if you're doing so well? I guess that excludes the hundreds of "genuine, honest, ethical, compassionate, heartfelt" people who are burdened to help their fellow men and women to achieve financial freedom by selling them one of the hundreds of Forex systems available (just echoing what we all ask ourselves)?

As for RH's financial claims:

What's really ideal about Forex Net Trap is that you only need to spend "five to ten minutes each morning" to "pocket £1,200, £560 or £2,210 tax-free every month". (Correct me if I'm wrong here).

Are any of you actually making that sort of money 'cos that's what NT claims?

I will pop in each day for a quiet gander at how you guys are getting on. Apologies but I'm not usually this vocal in Forums.

Regards,
Mike
Click to expand...

Hi Mike,
Yes, I am getting those results (if you bet at £1/pip), but i have only been trading this sytem 'live' since Feb and started at £0.20p/pip.
If you send me your email address I will email my chart for the last 5 months to see my trading results.
Thanks
SA Trader
 
msharma74 said:
Looks like a no trade day today. Does everyone agree?
Click to expand...

Its a clear buy signal by the rules: 40MA is rising.... Hasn't been much movement overnight though so whether volatility will deliver a favourable trade looks questionable. Good luck all
 
too fast breakouy.. cudnt execcute at the price.. slipped now!! did it happen with anyone else here?
 
I've gone for it with a buy as I'm willing to experiment but the 14500 figure scares me in itself.
 
Looked like a buy to me - or am I missing something? In at 14500 (no slippage) - would have been a +10 for MNT within seconds...
 
Mini Netrap was in and out today, 10 pips in 4 mins. :cool:

Buy 14500 stop 14470 limit 14510 Hit Yes + 10 pips

MNT June TD +20 (Win +50 loss -30)


Grrrrr ........ if it wasn't for that stupid stop out yesterday due to sell orders only have 27 pip stop travel MNT would be flying in June on +60,


M
 
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bombettor said:
too fast breakouy.. cudnt execcute at the price.. slipped now!! did it happen with anyone else here?
Click to expand...

You had 2 mins to execute open order @ 14500. 6.30 high was 14495 , 6.31 high was 14499.7, 6.32 your off.

Do you not use spreadsheet and pre set up your ticket Bomb?
 
Was expecting slippage on IG (but none received) as it shot past the trigger and was at 508 before my trade appeared in the open window...!
 
Is there a way of Opening an order 'At Market' on IG because like we saw this morning you had to be quick to get in at 14500 ?
 
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