NetPicks is one of the most well established trading signal provider services, having been in business for almost ten years. 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.
I investigated into it a little deeper because i felt that their results spoke volumes about what they were doing. I was particularly haggard to their new auto-trading overhaul. (loyal readers as well as those who use TSim already realize how much I like black box trading!), but after we cover the general service, I’ll come to that.
Mechanical Trading System
A mechanical trading system is offered by NetPicks. If you are mark up as a component, absolutely they will reflect for you and tell you when to deal They have you attend their Key Numbers meetings daily to prepare for the upcoming session. These numbers tell you where you will be entering your trade, and are accompanied by an exit target, stop loss, and reversal points. In other words, you are told exactly where to buy and sell - there is no discretion involved.
You can pick from a pair of versions for this plan - EMini Day Trader or the Forex Trading method. The EMini service actually covers the S&P, Nasdaq, Dow, and Russell US futures as well as the Dax and EuroStoxx which are popular in Europe and are gaining popularity in the US. Don’t worry if you don’t have a big balance to start off with. There’s a wide variety of contracts priced for all different budgets. You can get a Mini-Dow contract for only five dollars..
EMini and Forex are the two systems and they process in same way. Two lots are traded, with a fixed target for the first, and a trailing stop for the second. You need good balance between catching average size moves, while positioning yourself to be profitable with longer trends when they occur.
The EMini version is a true day trading system, with positions closed out before the end of the session. Forex is essentially a real day trading system as it is a 24 hour market, however, there are distinct rules as to when you should trade or not.
Outcome
Most automatic trading systems expect times of drawdown. What separates 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. Up until the present time, it has been averaging 180 points monthly. but bear in mind you can easily increase the number of lots traded as your account balance grows, and you see that with returns like that month in month out, you can do very nicely indeed.
The Forex mode of this plan has not been in use as long as futures trading, yet it is returning positive outcomes even now. The USD/CHF is one of these. (Swiss Franc) pair has not had a single losing month, and is averaging over 150 pips a month.
the system has suffered in one month is 2%, which is modest by any standard.
Automated Currency Trading
The advantage of a mechanical trading system is that you don’t have to think about what to do - the system tells 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.
Now NetPicks have taken mechanical trading to it’s logical conclusion and have introduced automatic trading for their forex product, thus eliminating this final hurdle.
The trades are not as automated as you might think, TSim and make the trades automated. The first step is to contact one of the two partner brokers, sign up and then allow the broker to trade the signals for you. For accounts up to 10k, an extra $100 have to be paid every month over the standard service. there is a sliding scale for the management fee. If you desire someone else to handle your trading signals, this is actually the best in “set it and forget it”!
There are two partner brokers - forex.com A member of the Gain Capital Group, and RobbinsFX www.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. Like all mechanical systems, it will see some drawdown, but this is relatively small, and can easily be balanced out by trading multiple Emini contracts or currency pairs.
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 trader will of course make more money than any mechanical system, but if you are struggling with trading or wanting to learn how to do it better while still trading, NetPicks will give you a better way to earn an income.
NetPicks demonstrates their well-deserved faith in what they offer by providing a two-week complimentary trial. At under $200 a month for the system, this will for many be the easiest way to make money from trading.