MBFX were proud enough to submit their system for review a few weeks ago so as always we’re only too happy to oblige at GreatTradingSystems.com and take a look at it.
MBFX trading system comes simply as two MT4 indicators, one MT4 template and a simple 9 page PDF manual.
The system is a buy low sell high type system and most trades will be taken shortly after a reversal. It is a semi mechanical system as you have fixed targets and stops at entry and given criteria for entry but ultimately you have chose whether to enter a trade and which markets to trade.
Whilst I understand the system creator’s first language is probably not English, the manual fails to explain the set up fully and whilst the graphics and indicators make is fairly straight forward, it would have been nice to have more explanation.
As an example there is no actual written words on what the trade targets are despite suggesting stop be X% of target. This needs to be addressed in future re-writes of the manual in our opinion. Luckily I was provided with a link to videos of example trades which makes it very simple
As for the system itself. The indicators are not anything new or not at least to anyone who has been using MT4 for a while and no doubt we will now get countless emails asking what the MBFX timing indicator is. But that is not an issue in itself as all we are interested in is whether the system will make money.
MBFX claims that on the 1 hour time frame (it is mean to work on any time frame) there is a 90% winning probability. (I am assuming that is using the 2:1 risk to reward ratio). This is very hard to verify on a system where one person may take on trade and one may not and as the MBFX system indicator only draws 6 days back so it is virtually impossible to test beyond this period without sitting watching every pair on the 1 hour chart for several months.
Also, this statistic does not say whether it is for one pair or all pairs and over what period and number of trades. Out of the various pairs and time frames I checked it certainly did not feel like a 90% strike rate to me. But with the risk to reward ratio at entry being so good strike rate is not really an issue, or at least it shouldn’t be your main concern.
On analysis, I noticed that (as an example) the USDJPY on the 1 hour did not throw up any entries at all during displayed data but on the 4 hour it produced a loss over 2 trades. However on 5 min frame an even spread of wins and losses. Obviously other pairs did better. So you will have to decide for yourself which pair to trade and on which time frame.
The biggest worry is the the fact that the target price (due to what it is based on) is always moving and whilst it could be higher than it was when you entered the trade it could have well fallen closer to your entry. This means that you have a changing target price but static stop loss which dramatically reduces the ‘real’ risk to reward ratio. In short your take profit will often be less than your target.
What We Think
This system is nice and simple and think it is possible to make money over time with it, assuming you stick to the 2:1 R:R ratio or. I think you will most likely make money in sideways/range bound price action within your chosen time frames.
Entry and exit is straight forward and ideal for a new trader. And the system could be set up as an expert advisor for the more advance trader.
A system like this, which has different sized targets and stops each trade might not suit everyone. Whilst you could have a great risk to reward ratio, if your losses come on the trades when the targets are large and your winners come on the trades where the targets are small (which logically will happen) you may not get the full benefit of the risk to reward ratio. Obviously this is a feature of a lot of trading systems(and certainly could be worse than it is with MBFX) but it is something worth thinking about.
Is $97 good value for money for this system. I don’t know. I guess if you are totally new to forex, MT4 and trading then it might be good place to start but there is no cast iron guarantee you will be able to make money with it. If you already are trading well you will probably be a little disappointed with the content and would have probably come across the concept before in a similar form.
But I have to say it makes a nice change with a system retailer coming forward and offering their system for review knowing fully that any issues will get highlighted. Many system designers would not do this as they know that their system has no real foundations for success.
I would say that MBFX certainly has foundations but ultimately it is up to the user/trader whether you will make it into a consistent trading system. You will chose the pair, you will chose the time frame and you will chose whether to take every trade (I am not sure it is profitable taking every trade on every pair on every time frame).
You can check out the MBFX system Here
Update 3 February 2012
We have just discovered that MBFX are currently in the process of selling the site on Flippa. In the sales brief it claims that the MBFX Indicator was “MBFX was very difficult indicator, Just expert can read chart using it, but we convert it to be used by forex newbie ” and cost $10,000 to program.
I have to say I do not believe that these indicators cost that much to program as they are based on established FREE indicators, in my opinion, and would only cost a few hundred dollars to coded them into their current form. I just wanted to make this clear as I would not want this review to influence someones decision to buy the MBFX website as it is not something I would endorse.
On what pairs does the MBFX system work?
This system works on most pairs with the exception of a few. It also works for GOLD and stocks.
95% of currency pairs as well as GOLD and stocks respect the MBFX system.
What is MBFX Timing?
MBFX Timing is my secret Indicator. MBFX Timing gives you the right moment to execute the