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Discuss and review vendors of commercial trading products, trading rooms and services, trading indicators or third-party paid add-ons / trading room legit? (Christian Financial Radio Network)

  #12 (permalink)

Elite Member
Trading Experience: Intermediate
Platform: MetaTrader
Favorite Futures: EUR/JPY
Posts: 2 since May 2013
Thanks: 1 given, 28 received

CFRN..better than some, but..

I gave CFRN's methodology a go for a while, essentially you pay $2k approx. for access to a set of supposedly custom indicators and a methodology for using them. There is a trading room that runs for a couple of hours from the US open; which I think has a subscription charge after the first 3mths.

Although Michael has used his own names for his indicators, they are in fact just standard indicators found in any charting package. What he calls the BBC (Bull Bear Cross) is simply a 21ema. I overlayed that MA on the chart, there is no question that is what it is.

The primary indicator Michael uses he calls the CF_Slingshot. However, it did not take me too long to figure out this one also (although slightly more tricky than the thinly disguised "BBC"). The CF_Slingshot is a combination of a fast and slow stochastic loaded in the same window. Now I am not sure exactly what settings Michael uses but you could play around with the settings to see what works in any particular market. See attached image:

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This isnt Michael's chart setup, he uses range bars, I am just illustrating the indicator

To trade with this tool you are looking for divergences to get in on pullbacks to the main trend which is essentially the trading method employed by Michael. I have shown a couple of divergence in the screenshot so it is clear what I mean. After you spot the divergence you simply wait for a close above/below a retracement trend line drawn up the lows (for a downtrend) or up the highs (for an uptrend), re-drawing if necessary when you get wicks above/below this trend line. The other entry is a pullback to the "BBC" and a downclose (for a downtrend) or an upclose for an uptrend.

In case you want to replicate the tool here are the settings I used:

Slow Stoch: %K:21, %D:5, Smoothing:7 (shown in red)
Fast Stoch: %K:7, %D:2, Smoothing:1 (shown in white)

In both cases you want to hide the main line and just show its Signal line. Again I played around until I got something that behaved pretty well for the currency pair I traded; these aren't necessarily the best settings.

Michael also uses what looks like a non-lagging ma in addition to the 21ema. Not sure what setting he uses for that but the one I show in the diagram is a 21 period and looks close to Michael's indicator. You look for a divergence following a cross of the BBC by price and the non-lag ma (and then a pullback), so price is trending in the direction of the trade indicated by the divergence. He has one final indicator called a stepline, but he doesn't use that except as a trailing stop primarily.

Does his method work? Some people in the room seem to make money - at least one guy does, his name is Frank. He seems to pull in a sackful of ticks every session. Michael calls his trades and sometimes shows his DOMs (but not all the time). He seems to take some setups and not others, I took most setups I saw and was losing money.

So the bads are:

- you are paying for predominantly standard indicators that have required no or extremely little coding, for which you are asked to pay a princely sum of around $2k or so. There is a certain unchristian lack of transparency here..
- there is little help given to those who are losing money, instead the constant emphasis in the room is making sure the people on the trial are happy and they understand the setups (clearly so that they will part with there hard earnt cash at the end of the week)
- their trade record as reported is not reconcilable with my experience of the effectiveness of the indicators. To be effective you would need to introduce some other concepts, possibly just some basic analysis of S/R levels (no mention of a pivot level or any other price structure/level)
- you are tied in with their brokerage, a small outfit called Daniels Trading who white label the OEC platform (a nice platform except the DOM). My experience with Daniels was a bit mixed, they seem helpful but are also traders and seem a little bit too busy at times (email response for instance was often slow)....I contrast that with an Infinity broker I was also using at the time who would not leave me alone...and I mean that in a nice way, he was always out to help and solve any issue I had. That is what you want from a broker.

the goods:
- he does call the trades he takes.. supposedly anyway, as I said you rarely see his DOMS.
- they run a weekly workshop for all "partners" where they go over the basic setups and nuances plus new stuff that Michael has been working on.
- they have an archive library of all (100 or so) previous workshops they have done. Interesting to see all the previous incarnations of indicators that Michael has invented over the years.

Well that is about all I have to say. For me there were elements missing in their methodology and a bit of over-reliance on indicators. Sure the indicators did give you an edge in certain circumstances, but those circumstances need to be defined a little better in my view. A fair percentage of the setups misfired in my experience.

There is also the non-transparency issue around the "custom" indicators (if you ever join, try asking Michael if the BBC is really just a 21ema...and see what the response is...if you get one). Good luck.


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