FREQUENTLY ASKED QUESTIONS
The advantages of our methodology and approach are explained here.
Follow the instructions detailed in the Blackbox Trade Controller Installation Guide video tutorial.
Follow the instructions detailed in the MT4 Installation Guide video tutorial.
London Capital Group (LCG) is our broker of choice as outlined on the Brokers/Spread Betting page.
The configuration of the user defined trade money management parameters is covered in the Blackbox Trade Controller Installation Guide (section from 12:15 – 14:25 mins).
Our reasons for specializing in trading the DAX are outlined on the page Why The DAX?
Our trading platform of choice is MetaTrader 4 and we use it in ways you have probably not seen before.
The evaluation period allows the user to trial the software and familiarize themselves with the trading environment which is best done on a demo account. It can be likened to a ‘Flight Simulator’ allowing the user to get used to the controls before taking to the air for real.
Please contact us should you wish to enable a live account before the end of the evaluation period.
Due to margin requirements, you need to fund your account with at least twice the amount of money that you want to trade with. For example, a £1000 trading bank where 1% (£10) is risked on each trade will require at least £2000 in the trading account.
The minimum amount required to trade the DAX is £1000, this will allow you to trade a £500 bank risking 1% (£5) on each trade.
The Trade Tool calculates position size according to user defined trade bank settings and consequently limits the risk on any one trade.
It is possible to trade with a bank smaller than £500 but degrees of inaccuracy will be introduced due to the rounding of position size by the Trade Tool.
Currently we trade using a live account where the trading bank is set to £1000 and configured to risk 1% (£10) on each trade. This has the following benefits:
- It demonstrates a typical entry level live trading bank once you’re ready to move on from a demo account.
- It serves as a reference bank and by using a trade copier EA the multiplier value is easily configured to copy all trades entered to other MT4 accounts. This is used for both demo accounts and other live accounts allowing us to keep private the full details of our personal trading.
We do not use indicators, we use a technique known as Price Action Trading which is based on the actual price movement on the chart, as opposed to relying on lagging or leading indicators.
We promote and apply Pure Price Action when trading the DAX which is based on chart structure that consists of support and resistance in all its forms.
Price Action Trading is based purely on technical analysis and real-time price movement so we do not follow fundamentals.
The Blackbox methodology is not mechanical or indicator based, it is based purely on the real-time price movement on the charts. Therefore anticipating and taking trades with our methodology is subjective and no two traders will take the exact same trades at the exact same levels.
We do not use any indicators or EA’s to enter trades based on various levels or signals so it is not possible to perform any back testing as there is nothing automated about our approach.