I already expressed my thoughts about the MA and Socrates in post no 5709 on June 28
In several posts here other commentators were talking about Socrates being a system.
A trading system needs at least the following parts:
- 1 A rule how to Enter into a position in a market
- 2 If a position is entered immediately set the level where you put your stop loss order
- 3 Rules how to manage the trade if the market goes in the desired direction until the trade is closed out
- 4 Money Management Rules: how much do I risk per trade (less is better!)
If I trade multiple markets at the same time how much is my total risk (again less is better your survival rate in the market goes up!)
Now most Advisors/Gurus/Websites/Systems touted on the internet and on Trading Shows tell you about point no 1 (the Entry).
Now in my opinion points 2 to 4 together are more important than no 1.
But in MA and Socrates he doesnt even give a clearly mathematically defined Entry.
And all the other points are not even mentioned.
Also to calculate point 4 you need to be able to do historical testing over long periods (the longer the better) with the exact rules. This will give you a lot of the data needed to decide if and how to trade the system and on what portfolio.
You might find out that the great System generated 15% pa return but had twice a drawdown in excess of 50 %. So nobody would be able to trade that from a mental/and stomach perspective.
So, Socrates does not even provide the Entries. Also it turned now out, that the nice looking Charts with the Arrows he sometimes uses on his blog, are not from the reversals of his site.
So MA and Socrates does not provide a System. Nowhere on his site (free to pro subscriber).
Also without going through some extensing testing over long historical data sets you cannot make a call on the points 2 to 4.
So in my opinion nobody can trade with that information provided successfully and with confidence over a longer time.
So I have to give it a fat thumbs DOWN