George II - FAQ

1. Do I need any sophisticated software to trade this system?

Not at all. The most basic charting software will suffice. I recommend Sierra Chart as this is what I use myself, but you can also use Medved Quotetracker that can be free or any other charting package that suits you. If you trade with Interactive Brokers, then very basic charts they provide are already enough for this system. To only papertrade the system, you could easily get by using free online data sources.

2. What indicators are used by the system?

No indicators are used by this system. The system defines entry points in a way that does not involve any indicators.

3. Is the system purely mechanical?

Yes. Although a skilled trader could probably improve the system results by adding elements of discretion to it, the results posted on this site are derived from purely mechanical rules and no discretion is assumed on the part of a trader to operate the system.

4. How often does the system trade?

The system trades at most once a day, but not necessarily every day. Per month you can expect about 10 trades on average.

5. What kind of system is this?

This is a reversal system and as such it attempts to catch bigger chunks of market moves.

6. Is this system suitable for beginners?

Absolutely. The system is so easy to learn and operate that even a total rookie to trading should have no problem using it.

7. How long does it take to master this system?

About 15 minutes, half an hour at most as opposed to weeks you need to master many discretionary systems.

8. What comes with the system?

The system rules spelled out on only one page and commentary on another page, 4 pictures that illustrate how to apply the system rules based on actual trading situations, and a spreadsheet that lists trades and performance details since January 2006. You also get an unlimited email support.

9. What's the best way to start trading this system?

In a drawdown of at least 25 pts (45-50 pts for ES), particularly after 5 consecutive losses. Allow a cushion of $5000 ($3000 for ES) per contract in addition to a margin that can vary from $500 to $2000 with most brokers.

10. Why do you recommend that I start trading the system during such drawdowns?

For two reasons. Firstly, that's how I start trading all my mechanical systems and so it would be a bit hypocritical of me to advise you otherwise. Secondly, you want to make sure that you are starting trading this or any other system under optimal conditions as this always helps psychologically.