What the author shares are ideas worth testing. For example, while the inside lemonade trade works well on some markets, it doesn’t work at all on others. This is typical of any strategy, and my point is you need to back test these ideas.
To further my point, Inside Days works on some currency pairs, and Inside Lemonade works on some currency pairs … not necessarily the same currency pairs. Inside Days might work on one pair, but the lemonade trade doesn’t work on the same pair. You should program each trade individually and give each trade a test on each pair to find what works and where it works.
Surprisingly, I didn’t find the Reversal Day setup to be profitable on any pairs. The Reversal Lemonade works on a few. Channel Breakout, using the typical 55/20 that Courtney also suggests in the book, doesn’t work on a single currency pair. I see the potential of this trade though, with a better stop …
I’ll be reprogramming it to exit on fractals using a shorter time frame than the time frame on which I entered on a channel breakout. I did find 90/90 works on some pairs with 30 minute bars. Regardless of whether one of Courtney’s specific trade setups work, the best thing to take away from this book are his ways of thinking:
1. His approach to psychology is great and can be summed up quickly: Consider yourself to be a casino, with the market as the gambler at your card table, and your trade setup as your card game. You lose some, win some, and overall you take home a profit. No need to freak out and yell at the monitor when a trade isn’t making money. Play your hand and then play the next hand.
2. Program numerous trade setups that are based on a fundamentally sound idea. For example, inside days and reversal days, as well as reversal lemonade and inside lemonade, are all fundamentally sound, although they are not all profitable on all pairs. Start with something that works fundamentally. Program it, backtest it, throw out the ones that don’t work, and forward test the trades that do work. Don’t expect any trade to work on every pair. Trade it where it works.
3. Once you see it works even in forward testing, such as with a demo account or a small live account using micro pips, then open a larger live account and let it work for you. Personally, I wouldn’t get caught up in paying anyone to coach you to trade, which seems to be the end goal of this book. There are also a lot of typos that can seriously confuse you if you don’t pay a lot of attention to what you’re reading. I found them while highlighting and working through sections. Courtney says at the end of the book you can go to his website to ask a question, but I’ve never received a single answer. Lack of follow through and some trades that don’t even work = 4 stars.