July 7th, 2009

Black Box Trading from NetPicks – Review

Posted in Finance

Having established itself over 10 years of excellent service, NetPicks is one of the most well known trading signal providers. Unprofitable or dishonest trading system vendors tend to get found out pretty quickly, so the relative age of NetPicks means they must be doing something right.

In fact, their results express they are doing a lot of things “right”, so I decided to stand a closer await.
I was particularly haggard to their new auto-trading overhaul. I just love black box trading, as you users of TSim and my regular readers already know.We will talk about that in a bit, I’d like to address the service first.

involuntary trade scheme

In a nutshell, Nitpicks offer a routine trading organization.
NetPicks, a trading signal provider servicer lets you sign up as a member, that does the thinking for you, and tells you when to trade. Each day they send you what they call their Key Numbers for the session ahead. you will be entering your trade, and are accompanied by an exit target, stop loss, and reversal points.
To put in another way, you are instructed precisely where to purchase and market – no discretion connected.

You can choose from two systems that are available: the EMini Day Trader or the Forex Trading system. The S&P, Nasdaq, Dow and Russel from the United States and the Dax and EuroStoxx in Europe are covered with the EMini service. you don’t necessarily need a big account balance to get started
You can get a Mini-Dow contract for only five dollars..

The Forex system works in basically the same manner as the EMini system. A trade occur with the first being a fixed target and the second being a trailing stop. This gives a good balance between trying to catch average size moves, whilst still being in a position to profit from the longer trends when they happen.

with positions closed out before the end of the session.
Being a 24 hour market, Forex is not available to trade for the 24 hour period as there are certain time periods which must be adherred to, in reality it should be considered a day trading system.
Mechanical trading systems by their nature, expect periods of drawdown.
the winners from those that come and go are the frequency and depth of those drawdowns.

By that measure, NetPicks is impressive indeed. The Eurostoxx contract had only one draw down month in a whole year of business trading. As of today, it has averaged 180 points a month. At first glance, that may not appear to be very much, but as you continue to increase your productivity as your account balance increases and see returns at that level every month, you can do quite well.

it’s already showing good results. For instance, the use of USD/CHF (Swiss Franc) pair has not had a single losing month, and is averaging over 150 pips a month.

2% is the largest draw down that the system has ever suffered in a month, which is modest by any standard.
How to Utilize a Mechanical Trading System

Instead of investing time in guesswork about trading, you work with this automated system and it determines the trades for you.

you still have to pull the trigger when the system says Buy or Sell – a problem for some traders, who hesitate at the vital moment.
Netpicks now has available automatic trading for forex, they are now a true competitor.

In reality it is not totally “automated” based on the fact that, well, TSim may automate trading. Rather, you sign up with one of their two partner brokers, and the broker trades the signals for you. This is an additional $100/month above the standard service, for accounts up to $10k. Once your account balance grows to exceed that, there is a sliding scale for the management fee. Its possible to pass the work on to someone and have your trading signals taken care of, you are now really playing the ’set and forget’ way.

forex.com just another entitity of the Gain Capital Group., and RobbinsFX Try WorldCupAdvisor.com. new account with the former has the advantage of earning you a free month of the autotrading service.
the money making system offered by net picks is a tried and tested one. Trading Emini contracts or currency pairs will balance out the drawdown that will be seen with this mechanical system since it is very small.

I can see several ways of using the service – a steady income whilst learning to trade, a “hedge fund”, or simply a set-and-forget investment offering a higher return than any bank account can.

A good discretionary trader can of course make more money than any mechanical system, but for those struggling with their trading, or wanting some return while learning, NetPicks offers a proven solution that will provide income.

free trial shows the confidence NetPicks have in their product, and it’s justified confidence.
this will for many be the easiest way to make money from trading.