The Pullback Stock Trading System is a trading system developed by well-known online forex educator Rayner Teo. I have reviewed his previous works, including the TradingwithRayner educational packages and Price Action Trading Secrets trading course. Here we will take a look at what the Pullback Stock Trading System offers to help you decide if it is something that you would like to implement into your daily trading activities. Despite it being created specifically for stock trading, the same principles can be applied to other markets, including Forex, Commodities, Indices, Gold, Silver, Oil, Gas, Cryptocurrencies, etc.
What is the Pullback Stock Trading System?
The Pullback Stock Trading System comes as a 31-page full-colour trading booklet that contains a specific trading system that Rayner has created, based on his many years of trading experience. A pre-prepared trading strategy can save users from the many hours required to learn the markets, practice trading and creating their own trading system.
As the name rightly eludes to, the strategy is based on trying to pinpoint potential turning points in the market. It is designed to be used primarily on the higher chart timeframes of the daily and above. It is therefore not intended for short term swings. You are free however to use it on any chart or timeframe that you wish.
Rayner claims the Pullback Stock Trading System has a 70% winning rate but I would take this with a pinch of salt. I do not think any strategy can guarantee “x” number of wins. The market conditions are constantly changing and historical results are therefore by no means any indication of future results. It is important to have a clear understanding of the significant risks involved with trading online using any manual or automated trading system. There are just too many variables in play for anyone to claim you will have a specific win rate. More to come on this later.
In saying that, Rayner has shared some results going way back to 2000. The problem for me is that they are not verified using a third-party verification service such as Myfxbook. It would take minutes to link up the results but I understand that he may not want to due to privacy reasons, possible scrutiny or whatever else it may be. That does not mean I am saying the results are made-up, it just means that I would prefer to see them verified as I am sure many others would also.
Pullback Stock Trading System Features
The 31-page Pullback Stock Trading System features include:
- The Pullback Stock Trading System
- The exact rules of the system including the setup criteria, entries, exits, and risk management
- Market conditions for pullback trading
- How to apply The Pullback Stock Trading System to your own trading even if you’re a discretionary trader
- Full back test results
- FAQ section
- Position sizing calculator – free calculator that can help to work out position sizes for trades without needing to do the complex mathematics
- Profitable Trading Secrets training guide
Does the Pullback Stock Trading System work?
No system can be 100% accurate and I would personally always practice a new system on a demo trading account to begin with. Once I feel confident enough with the strategy and I am consistently producing good results, that is when I may consider switching over to using it on a real live account. We should also be aware that no matter how good any trading system is, results can differ between users. This can be due to money management, trading psychology and discipline.
I would always like to have a favourable risk to reward ratio where 1 losing trade would not wipe out a run of consecutive winners. If for example, the user had a take profit of 20 pips and stop loss of 100 pips, this would be that 1 losing trade would wipe out 5 wins, and that is not even accounting for trading costs. It can be disheartening to have 5 wins in a row and then 1 loss that takes everything back and then some. On the other hand, if the user had a take profit of 100 pips and stop loss of 20 pips, they could potentially have 4 losing trades in a row and still be up 20 pips (minus costs) if trade number 5 hits the target.
I would personally aim for at least a 1:3 risk to reward ratio and may even move the stop loss to break-even after 1:1 and then trail the remainder of the position to try and grab as much of a move as possible.
When using a manual trading strategy such as the Pullback Stock Trading System, it is important not to let negative emotions get in the way such as fear, anger and greed. Having a trading plan and sticking to it can help some traders to stay discipline, whatever the circumstances. It is often said to treat trading as a business and thus, follow a specific plan with a criterion of rules to help you stay on track to reach your own specific goals.
Another important factor worth considering is the online broker that you are using. Most brokers tend to offer different spreads, commissions, execution venues, platforms, etc. I would prefer to use an ECN forex broker as I find they can have some of the lowest commission fees and tightest spreads. They can also pool together liquidity providers which means they are able to offer some of the best bid/ask price quotes available at any time. This can all help save on trading costs in the long term, especially if day trading and taking frequent positions.
How much does the Pullback Stock Trading System cost?
Rayner says that the book is free. However, it actually costs $9.90 US or $12.90 outside US, for shipping and printing. When you order The Pullback Stock Trading System, a physical 31-page colour trading book will be shipped to you within 3 weeks. If you don’t want to wait 3-weeks, when you get your copy of Pullback Stock Trading System, Rayner will send you a digital copy of it—for free. Any updates are provided in the digital version, free of charge.
Pullback Stock Trading System Conclusion
The Pullback Stock Trading System is not the holy grail. There is no holy grail, this is not Indiana Jones. If you do find it, please let me know! Instead, this is a manual trading system that implements some of the key principles that Rayner teaches in his forex educational courses. It is a systematic trading system. The trading rules are objective with no discretion.
A trading system can only be as good as the trader using it. I would certainly conduct my own additional market analysis – technical analysis, fundamental analysis and price action analysis. I would also make sure my money management is sound and that I am using a reputable forex broker.