The Trade With A Day Job (TWADJ) system from Markets Mastered is a method of trading one of the US indexes that can be applied in the evening between 5.00 and 9.00 UK time, hence the title, as many people would have finished work by then.
My only reservation with this would be the time it often takes for people to get home and the fact that you would then have to keep an eye on the computer during the evening, but that aside, my initial impressions are that this is a useful system that does what it says on the tin. From looking at the charts, I would also suggest that it will work at other times of the day as well although this is not mentioned, so this may be something that you could fit into your lifestyle quite easily.
TWADJ is delivered electronically in the form of a 73 page pdf file and although there are, to my mind, a couple of minor detail errors, the manual itself is well written and does a good job of explaining the system and how to use it with plenty of examples.
At £88, I think it is quite reasonable, especially when compared to some of the other offerings around and comes with a 60 day money back guarantee. Support is provided via a web site and email and the Author, Nick, claims that he has never had a losing month in the years he has been trading it; quite a bold claim.
Annualised figures are given for the last 7 years, although not the actual details, so it would be difficult to confirm, but having said that, a quick look back through the charts suggests a highly profitable system, so I am inclined to believe the claim.
The Trade With A Day Job system is based on detecting a given condition and then looking for a candle pattern to confirm entry. Nick explains everything clearly, giving some good examples in his manual.
Although there is a chart provided of the candle patterns to look for, Nick suggests downloading what is considered to be one of the definitive guides to candlestick charting and whilst this is provided on the site and again delivered as a pdf, it is 330 pages in length and unless you develop a real interest in this area and want more background, my own feeling is that this particular book is a bit over the top for what is required and would simply send you to sleep!
Having said that, it is useful to have a bit more knowledge about candlestick reversal patterns, but there are plenty of resources that can be found via Google, so initially I would be tempted to take that route instead.
Several Brokers and charting packages are suggested, all of which are easy to apply for. All provide charts in one form or another, either web based or installed on your computer. My own preference is for the MT4 package as I already use it extensively, but there are a few other options. TWADJ shows you how to set your charts up and what the settings need to be and as there is only the one oscillator to worry about, it is a relatively simple task.
The recommendation is that you spend some time getting used to the trading platforms and taking sample trades either on paper or on a demo account and although I did not actually take any of the trades, over the last 4 trading days (27/6/12-2/7/12) the trades I have seen indicated would easily have reached the suggested 20 pip target each time and if left to run would cumulatively have made in excess of 200!
I should say at this stage that I do have some experience of charts and spread betting, so I am aware of the principles involved. If you are approaching this from a position of having no knowledge at all, then it probably will take a while to get used to, but I think the effort would be amply rewarded! If you are new to this, all I would add is never be worried about not taking a trade. They are like buses – there will be another one along in a minute.
My intention is to trial the Trade With A Day Job over the next 2 months and report my findings on a regular basis, but from what I have seen so far, this is a system that I would happily trade on my own account.
Well, it’s felt like a bit of a marathon at times, but here we are at the end of the trial. For anyone who has ‘stayed the course’, well done, I hope you found my comments worthwhile.
I have to say that from the moment I read the Trade With a Day Job manual, I had a feeling that this was a system that worked PROVIDED the user put the time in. Nick, the Author, states in the manual that it is important you practice spotting entry signals for at least 60 trades before you start going live and also looking back to spot entries yourself. I would concur with this and say that if you are prepared to put the effort in, you will be amply rewarded, but you DO need to put the effort in to learn the signals.
There are a couple of add ons to the main system that provide other opportunities for trades and I have to say that although the signals do not crop up that often, they are easy to spot when they do, so it is well worth the small extra investment..
Nick sends out examples of his own charts each day and I have to say that I still look at his charts and sometimes think ‘how did he work that one out’! Undoubtedly it comes with experience, but I get the feeling that you occasionally have to be a little bit ‘flexible’ with the application of the rules.
Having said all that, although I have not kept a strict record of gains and losses, partly because many of the trade set ups were looked at after the event, there were very few losing days which, considering the markets are often erratic during August, is not a bad record. Overall, I have counted 7 losses with a deficit of around 77 pips. However, when this is looked at in line with the positive trades, there were almost 50 days which would have at least met the basic 20 pip target, so 1,000 pips up! I think that is a record that speaks for itself.
I would thoroughly recommend this system with the one proviso being that you are able to watch the chart during the evening and although I occasionally struggle to find the time in the evening to give charts my undivided attention, Trade With a Day Job is a system that is definitely going into my arsenal.
Although this review was due to commence on 3rd July 2012, the Americans were getting ready for and then actually celebrating Independence Day on the 4th, so the markets were closed! However, there were two trades towards the end of the week with Thursday returning 47 pips and Friday 82. I should say that although Nick recommends taking 20 pips per trade at the beginning, I am intending to report what could be acheived if the trade is allowed to run. The review will therefore commence in earnest from Monday 9th July, but an impressive start!
TWADJ Day 1: 09/07/12
13 pips this evening. Would have made the recommended 20, but first use of platform! Either way, a positive start.
TWADJ Day 2: 10/07/12
92 pips acheived over the space of about 3 hours. Could have made over 130, but normal life beckons!
TWADJ Day 3: 11/07/12
A 20 pip trade was available early in the session but as there was a News release due (FOMC Minutes), waiting until after the release gained 43 pips
TWADJ Day 4: 12/07/12
93 pips. I have, however, taken a bit of a liberty with this one as the 93 were available had you been able to enter the trade about an hour before the recommended start time. Had you only been able to trade between 5 and 9, then there were a couple of opportunities that would heve netted between 20 and 30 pips. Either way, positive results.
TWADJ Day 5: 13/07/12
No trade this evening. There had been a sharp up move during the afternoon and the index pretty much traded sideways for the rest of the time. Even so, looking on the conservative side, 168 pips for the week, so an excellent start.
TWADJ Day 6: 16/07/12
Bit of a strange day in trading terms, but 20 pips were available. I have to confess I didn’t see the conditions until after the event as it wasn’t really obvious, but it was there!
TWADJ Day 7: 17/07/12
Nothing obvious till near the end of the session, but met the 20 pip target.
TWADJ Day 8: 18/07/12
Again, not the easiest of days, but 20-40 pips were available, 20 straightforward, 40 if you’d held on. The last couple of days were unusual in that there were big moves during the day that meant the evenings were fairly quiet. All down to Ben Bernanke and QE3 in America. Hopefully things will now settle down.
TWADJ Day 9: 19/07/12
Probable loss of about 14 pips with no second trade allowing an opportunity to recover.
By way of clarification, most trades will be either ‘paper’ or demo as this is the recommendation in the manual covering the first 40-60 trades. Selection and reporting will be as accurate and realistic as possible.
TWADJ Day 10: 20/07/12
No signals, no trades.
TWADJ Day 11: 23/07/12
As I was not going to be near the computer after the first trade triggered, I set a profit target of 20 pips. By the time I got back to the computer, it had missed my target by 1 pip! As there was a signal going the other way, I was able to close the first trade for a loss of 2 and took 25 pips from the reversal which eventually ran for about 50. Net gain on the day then of 23 pips.
TWADJ Day 12: 24/07/12
Not watching the charts live this evening as the weather is so good for a change and the family wanted a barbecue, but there was a clear signal which comfortably achieved the 20 pip target. There is another potential trade setting up as I write which I will report on later.
The second trade did set up and comfortably reached the 20 pip target with a further 30 pips if you’d held on.
TWADJ Day 13: 25/07/12
Although tonight’s report is retrospective, as I’m not able to sit looking at the screen on a wednesday, there was a clear entry signal and an equally clear exit area that would have resulted in a comfortable 50 pip gain.
TWADJ Day 14: 26/07/12
A signal this evening that resulted in a loss of 14 pips with no further chance to recover. Probably would have been a good day to leave it alone, especially after M. Draghi saved the Euro. Again. Most Indexes had moved huge amounts during the day and this probably influenced the moves.
TWADJ Day 15: 27/07/12
As I am going on holiday, there will be no further reports until 13 August when I will aim to post a retrospective view of what has happened over the next two weeks.
Watch this space.
Update: There was 1 trade available at the end of the session that made 20 pips.
TWADJ retrospective update Days 16 – 20, 30/07/12 – 03/08/12
Whilst this is a look back at what has happened, I have tried to scroll through the charts bar by bar therefore making the following report as realistic as possible.
Monday 30th July
Not the easiest of days, but there were 2 trades available, either of which would have made the 20 pip target
Tuesday 31st July
Clear trade that comfortably made the 20 pips and went on for, potentially, a total of 100. Realistically, I would probably have closed it at about 50. Either way, a good evening.
Wednesday 1st August
A clear signal and strong downward momentum would have easily met 20 pips and went on to 100
Thursday 2nd August
An early signal made 20 pips followed by another clear signal with movement that easily made 20 pips and went on to make around 80 without too much effort.
Friday 3rd August
As the first Friday of each month is the release of the NFP figures in America, it is generally considered to be a day to go fishing, or whatever takes your fancy. There was a trade available, however, for those with a considerable degree of patience!
TWADJ retrospective update Days 21 – 25, 06/08/12 – 10/8/12
Monday 6th August
Clear signal and strong momentum made 20 pips comfortably and went on to around +50 in total. This was one of those days when movement was sluggish to begin with and then took off, so the higher number would have been easily acheivable.
Tuesday 7th August
Again, a clear signal that, although it took its time, went on to reach 50 pipswithout too much trouble
Wednesday 8th August
Whilst there were a couple of signals, I would have skipped the first as my chart gapped up, not by much, but enough to put me off. The second made the 20 pip target but no more.
Thursday 9th August
Clear signal early in the sesion made around 30 pips in total.
Friday 10th August
Clear entry that went straight up for a profit of around 50 pips.
Whilst I accept that the last 2 weeks have been, to an extent, trading with hindsight, the entries relate directly to the signals given and in each case, the 20 pip target was met. The extra pips that were on the table may be considered to be subjective, but I have tried to be realistice about what I would have aimed to achieve given the chart conditions.
TWADJ Day 26: 13/08/12
Clear signal this evening with a comfortable 50 pip return
TWADJ Day 27: 14/08/12
I would have to describe this evening’s price action as a mess although there was a signal and a trade at quarter to five which gave a comfortable 30 pips. Apart from that, there were no further trades during the suggested hours.
TWADJ Day 28: 15/08/12
One signal that would have made 20 pips
TWADJ Day 29: 16/08/12
3 signals this evening, 2 of which would have been losers to the tune of 10 pips and 7 pips respectively whilst the 3rd would have made 20. This actually brings me to the one point about this system where I would have to take issue with the Author. For a short trade, the manual places trade entry 1 pip below the entry candle with the stop 1 pip above the high. The spread is not taken into account which I have to say I disagree with. I have always placed my stop when going short a certain distance above the entry point PLUS the spread, which in this case, is 4 pips. Doing so on this occasion would have made the second trade a 20 pip winner instead of a loser.
This point should not take away from the fact that this would overall have been a winning evening even though there was a losing trade which, I think, is only the third losing trade of the trial.
TWADJ Day 30: 17/08/12
Waste of time and effort this evening! By way of example, see the following screen shot. It represents a total of about 28 pips movement and as such, was not, imho, tradeable!
Let’s hope for beter next week.
TWADJ Day 31: 20/08/12
Another messy evening and although there was a signal which did run for 20 pips, I think I would probably have left it alone.
TWADJ Day 32: 21/08/12
Although this evening did have a nice trend, a lack of clear signal kept me out
TWADJ Day 33: 22/08/12
Clear signal this evening that ultimately ran for 80 pips. 50 would have been easily achievable
TWADJ Day 34: 23/08/12
Another clear signal that comfortably reached the 20 pip target
TWADJ Day 35: 24/08/12
Clear signal, but 20 pips would have been touch and go depending on entry point. This was one of those days when the spread would have come into play.
TWADJ Day 36: 27/08/12
Signal came just before the 5.00 pm start and actually took a few bars before entry, but did reach the 20 pip target and went on to hit 50.
TWADJ Day 37: 28/08/12
3 signals this evening, 2 of which would have given the 20 pips whilst the third only just managed 19 but as with a couple of days ago, this is where the spread comes into play. Either way, it was a successful evening although price action is still within a very narrow range.
TWADJ Day 38: 29/08/12
No signals within the time period
TWADJ Day 39: 30/08/12
Initial signal was a sell but before reaching the 20 pip target, at about +17, a signal arose to go the other way. The best option was therefore to close and reverse. Although the Author doesn’t mention this in the manual, it is the action I would adopt! This therefore turned a potential loss into a 40 odd pip winner, although you would have had to be watching the charts to implement it.
TWADJ Day 40: 31/08/12
Nice signal this evening resulting in a 50 pip gain.
TWADJ Day –: 03/09/12
No trades today due to it being a Public holiday in the USA and the markets therefore closed
TWADJ Day 41: 04/09/12
One trade this evening. I have to say it wasn’t the most obvious, not all of them are, but it was confirmed by one of Nick’s other systems and went for 70 pips without looking back
TWADJ Day 42: 05/09/12
Not the most obvious of signals, but it was there and comfortably hit 40 pips. Price action still seems a bit unusual at the moment and as there are some major news releases due over the next couple of days, I am intending to be very careful!
TWADJ Day 43: 06/09/12
I am not sure whether I would have attempted to trade this evening following today’s news releases, since there were some huge moves including the index traded moving over 200 pips. However, in the interests of science(!), there was a signal this evening that was tradeable and did achieve the 20 pips (but see comments). However, it also acts as a good example of my earlier comment about taking the spread into account. Nick, the Author, suggests trade entry is one pip beyond the extreme of the candle with the stop being one pip beyond the other end. However, a quick glance at the following chart makes it plain that this evening’s trade would have been a loser if the spread had not been taken into account.
The entry candle is the first one with the large arrow and it can be seen that before the 20 pip target was hit, there were 9 candles that would have potentially stopped the trade, indicated by the smaller arrows. Two of them came within a pip of taking out the stop + spread, so it was touch and go, but it does illustrate the value of taking the spread into account when going short. The spread is clearly illustrated by the 2 lines spanning the chart and vertically indicated by the solid green lines and the green rectangle. The grey line is the bid price whilst the red line is the ask and is not normally shown. When going short, the entry price is as shown by the grey line, but the closing price is shown by the red line – the ask price. That does mean, for the observant amongst you, that this trade would only have acheived 17 pips at most, since the candle that went through the profit target only did so by one pip. The ask level would therefore have missed the target by 3, so unless you had been watching, you could still have been stopped out for a loss. Price action would probably have induced me to close it early in any case.
My intention here is not to ‘preach to the converted’ as I am sure many of you will be aware of this, but this is about the only area in this system where I feel it falls short and I think it needs to be mentioned.
TWADJ Day 44: 07/09/12
NFP Friday, so no trading! In actual fact, there were no trade signals with the index only moving a total of 22 pips
TWADJ Day 45: 10/09/12
Not the easiest of signals to spot this evening, but one did arise with price then moving steadily downwards for a maximum gain of around 100 pips
TWADJ Day 46: 11/09/12
A couple of signals this evening the first of which gave, according to your risk tolerance, 15 pips, break even or a loss of 12. Personally, I would have been at break even as once a trade goes in my favour by 15 pips, I tend to move my stop. The second trade was almost at the end of the session and made around 30 pips.
TWADJ Day 47: 12/09/12
Slightly frustrating this evening as although there was a reasonable amount of movement and there were some clear entry opportunities, none of them were from this system, so, no signal, no trade
TWADJ Day 48: 13/09/12
Depending on your point of view, this was either a great evening to trade, or the worst! Following the FOMC statement, the index, along with many others, moved a total of 280 pips! Good if you were on the right side of it, however, it did not generate any signals for this strategy, so again, no trade.
TWADJ Day 49: 14/09/12
One signal this evening which met the 20 pip target.
TWADJ Day 50: 17/09/12
A very lacklustre day but there was a signal which made 20 pips
TWADJ Day 51: 18/09/12
2 signals this evening effectively from the same level. The first would have come very close to being stopped but either acheived the 20 pip target
TWADJ Day 52: 19/09/12
Clear signal this evening that easily made 20 pips. There was a second signal from the same level later on which, IF you had taken it and left it, would have made over 100! I appreciate this is a hindsight comment, but the index dropped fairly quickly and if I had been in this trade, would have let it run precisely because of the momentum.
TWADJ Day 53: 20/09/12
Nice clear signal, comfortable 30 pip gain
TWADJ Day 54: 21/09/12
Clear signal that did not deliver and stopped out after about 1 hour. However, as it was stopped out another trade was setting up that went for 40 pips, so initial loss recovered and overall gain of 20 pips for the evening
TWADJ Day 55: 24/09/12
Nice signal this evening that delivered a comfortable 30 pips and went on for about 50
TWADJ Day 56: 25/09/12
At least 3 signals this evening although one of them came shortly before 5.oo. All of them were profitable with the index moving a total of some 200 pips. The later 2 would easily have netted 100 pips each!
TWADJ Day 57: 26/09/12
Two trades this evening, but I still ended up down! As I think I have said elsewhere, I am unable to watch charts on a wednesday evening although on this occasion, the first signal arose before I went out. Having entered the trade, I set a profit target of 20 pips and came home to find it had missed by 1 pip! Even more galling was the fact that the second signal came as the price reversed and went for about 30 pips. I have to stress that the loss this evening was not the result of the system, more the operator although it does indicate that unless you are prepared to take a few more losses, then you do need to be able to watch the charts.
TWADJ Day 58: 27/09/12
Signal this evening gave the 20 pip target without too much of a problem.
TWADJ Day 59: 28/09/12
Nice signal this evening with a 120 pip move down. Trailing a stop would easily have made 90 pips.
TWADJ Day 60: 01/10/12
Ending on a high, clear signal this evening with a second opportunity to enter that easily made 50 pips