Monika Korzec is a full time foreign currency trader and is often a speaker at many trading seminars. In her private forex chat room, she suggests and explains trades as they are setting up and will trade these signals along with you and other members around the world.
Lately, I've been receiving e-mails from some of you asking me to review the MMTS Forex System by Monika Korzec, however I hesitated as I don't usually buy systems. But then I couldn't review it without trying it myself...
I don't often do this - but I thought what the hell! It costs less than £50, let's have a look. I have to say that I'm impressed. The MMTS system was developed by one of the Peter Bain subscribers and seems to be a good method when applied properly... The e-book is well set out and it covers 5 different methods of trading - 'One Pip Candle', 'News Candle', 'MK Session Trendlines', '8:30 am EST News Time' and the 'London Open System'. She uses 15 min charts and the set-ups are quite easy to understand and well explained.
Monika Korzec describes a news trading mechanical trading system* based on trading news releases. The MMTS e-book is mainly about price action, 1, 2, 3's and Monika's trendlines as well as her London open and New York news price action systems, which you would have to buy the e-book to get a handle on.
Monika reveals a couple of ways which you can use to bank profits, and no not really on letting profits run, although I think letting profits run is a good way to go, there is a basic 30 pip stop loss with a 15 pip take profit, or a stop loss 4 pips below a recent low, or close the losing trade when a 15 minute candle closes on the wrong side of the trendline…etc But all stuff you can work out for yourself, maybe price will bounce off an earlier trendline, I've seen that happen a few times, it's the drawing of the trendlines that are so interesting, but how you trade with them to make money is up kind of left to the trader, although advice is given to get you started. The original system was for trading the 8.30 – 9.00 a.m et paradigm but the latest version (MMTS 2.0) is a little different with more filters and variables.
I will try to explain as simply as possible the 3 systems extracted from her book MMTS 2. All three systems are fairly easy to use but they do have a number of rules -:
All the systems use a 15 minute time-frame and most of them use the GBP. The systems are fairly easy to use but they do have a number of rules. When you read the MMTS e-book and read the rules behind the system, you wonder how she exactly she arrived at these particular rules – you couldn't even imagine that someone could dream up some of this stuff.
The money management part of this book is somewhat controversial as her stop loss is bigger than her target. I have the same thing with the Dow method I use; my stop loss can sometimes be twice my target. But when the win rate is very high this can still work. For instance -:
Suppose you have an 80% win rate - that means that 1 in 5 trades will fail. Say you have a target for each trade of 20 pips and a stop loss of 50 pips. This means that you will make 80 pips from the 4 winning trades and 1 50 pip loss, which still gives you a net profit of 30 pips.
With Monika's system she has different stop loss values for the different types of trade, but they are never as bad as the ratio I have shown above. Typically on the MKS trendlines she has a 15 pip target and a 30 pip stop loss. Put this into the equation above and you still get a 30 pip profit after 5 trades.
These are not bad results for a mechanically traded system. You could set this up and go to work and leave it to trade. However if you are trading and watching the screen, then you can make a lot more than 15 pips on most trades. The key is to lock in the profits when a trade is going in your direction and letting the profits run.
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* Mechanical trading systems are techniques that make trading decisions for you! You input the trading data, and the system generates a response that indicates the appropriate action. You either buy, sell, or do nothing depending upon the formulas the system uses.
There are people who do nothing but trade the news. If you are so inclined the 'London Open System' might help you with timing trades during news releases. As the name suggests it uses the news releases on the London session in conjunction with mathematics to work out entry and exit strategies.
This is a very simple set-and-forget system which needs to be executed at 8:30 UK time, everyday if possible, if the setup is there – you need to look at several candles at or before the 8:30 time and if a particular setup is met then you would either buy or sell. The take profit point is 30 pips and the stop loss point is 50 pips.
You might be wonder how often this system works – according to the author you would have made 3,170 pips in 2005 if you followed the Mechanical Entry and Exit.
If you had used the Mechanical Entry and Manual Exit with the use of Technical Analysis which is also shown in the book the total profit would have been 10,561 pips (however as technical analysis is subjective you are likely to have made less than this but still a lot more than just using the Mechanical Entry and Exit).
This particular system (named after Monica Korzec's name) requires a custom trend line called MKS to be drawn on the chart at a particular time - when that time approaches you draw the trend line and if the subsequent candle is above that trend line you go long and if it's below that trend line you go short. That is quite simple. There are four of these trend lines called MKS throughout the day. The stop loss is generally 30 pips while the take profit is always 15 pips.
This particular system uses a 15-minute timeframe and specifically the the GBP/USD currency pair. As you can deduce from the name of this system – the New York News Release system relies on news releases, specifically the 8:30 Eastern Time news release (news is released everyday except Friday). This system will tell you what to do after the news release and it requires you to check the specifics of the candles (mainly finding out how big the bars are to see if the setup meets the required criteria) just before the news event. The limit is either 19 pips or 75 pips (the 75 pips limit is only used on the first Friday of the month, for the rest of the time you will be using a 19 pip limit). If you're using the 75 pip limit, then you will be using an 80 pips stop, however if you're using the 19 pip limit you can either have 20, 25, or 40 pips stop depending on the setup you have.
Good Points About the Forex Cash Cow Strategy:
What I don't like about this system:
There are two other systems but these 3 are my favourites – I do trade them myself and I'm profiting from them – although the money management side of things is not so good but because the percentage of goods to losses is great – over 80% you can actually get away with it. The systems in the book aim to make between 10 to 20 pips or more a day and if that is what you make every day all you need to do is increase your lots and eventually you would make more and more.
Monika's Momentum Trading System (MMTS) is ideal for those who wish to trade a thoroughly tested forex trading system with full support and a completely open system. All rules for trading and the simple software product to gauge and manage the system are contained within the full book that is provided with the trading system. The book also contains other trading systems used with the software and trading tips and techniques from Ms Korzec who trades professionally from her base in Canada. Lastly, it also includes a number of exit strategies that are presented by two well known traders: Neal Hughes, and Mark Braun.
The system is inexpensive and comes with a money back guarantee and full support from Ms Korzec's website.
Format Pages: Downloadable PDF ebook [130 pages]
Price: $95.00 USD
View the Monika Korzec's website for more details
Does anyone use the MMTS system trading system? If so how do you like it and what are your opinions on the forex trading systems explained in the book? Send us your feedback by filling the form below.