An In-Depth Review of the Controversial Forex Navarra Trading System
The Forex Navarra System is a manual trading system for the foreign exchange (forex) market that was originally developed by a trader named Enzo in 2013. It aims to identify potential trading opportunities across different currency pairs using custom indicators.
Over the years, the system has developed a bit of a controversial reputation in trading circles. Supporters claim it is a simple yet powerful system that can generate consistent profits if traded properly. Critics argue it is overoptimized and too reliant on outdated technical indicators.
So what’s the real story? In this review, we’ll take an in-depth, unbiased look at how the Forex Navarra System works, its claimed strengths and weaknesses, performance statistics, and whether it may be worth learning for your own forex trading.
How the Forex Navarra System Works
The Forex Navarra System is based on trading the 4-hour timeframe across a handful of liquid currency pairs like AUD/JPY and EUR/USD. It uses a combination of moving averages, support and resistance levels, and price action to identify potential trade setups.
The system relies on custom indicators like the AllAverages_v2 and FX Reactor alongside standard indicators like moving averages. When certain criteria are met across these indicators, the system triggers long or short trade signals.
Some of the entry rules for the Forex Navarra System include:
- Price closing above or below certain moving averages
- The AllAverages indicator changing color
- Looking for confluence between indicators and support/resistance levels
Once entered into a trade, the system uses wide stop losses of around 70 pips along with profit targets based on previous swing points in the market.
The trader behind the system claims it only requires checking the charts once per day for 10-15 minutes to find any new setups. This makes it appealing for people who want a simple, set-and-forget style trading system.
Overall, while the Forex Navarra System has some logical aspects, it also relies heavily on questionable technical indicators that add unnecessary complexity. The wide stop loss rules also pose a challenge for managing risk properly.
Claimed Strengths of the System
Now let’s examine some of the main claimed strengths of the Forex Navarra System by its developer and supporters:
- Supposedly able to turn an account of $500 into $35,000 in just 7 weeks (although these claims have not been independently verified)
- Followers of the system report consistent profits over time
- Requires only 10-15 minutes per day to check for trade signals
- Easy to understand entry and exit rules
- Clean charting setup makes it easy to see potential trades
- Can be traded on a variety of currency pairs like AUD/JPY, EUR/USD and more
- Multiple trade setups each week across different pairs
On paper, the system seems appealing, especially for beginner traders looking for an easy-to-follow plan. However, we also have to look at some of the main criticisms of the system to get a balanced perspective.
Criticisms and Drawbacks
Here are some of the most common criticisms of the Forex Navarra System that traders have pointed out over the years:
- Too many custom indicators that have been overfitted to past price data
- Unlikely to produce the same results going forward compared to historical simulations
- Relies heavily on lagging indicators like moving averages rather than current price action
- Questionable whether custom indicators actually add value
- Very wide 70+ pip stop losses pose significant risk management challenges
- Difficult to achieve 3:1 or higher risk/reward ratio
Insufficient Track Record
- No third-party verification of the performance claims and statistics
- No long-term track record available to evaluate performance across different markets
Overall, while the developer and some followers claim strong performance, many professional traders argue the system has not stood up well to scrutiny. There are more efficient ways to trade forex in today’s market environment.
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Performance Statistics and Verification
Given the bold profitability claims surrounding the Forex Navarra System for MetaTrader 4, you would expect some detailed performance reports to back up these claims.
However, one of the biggest issues frequently cited by critics is the lack of transparency around actual performance statistics and verification for the system:
- There has been no independent third-party auditing of the trading results
- The developer has not released detailed long-term performance reports following accepted industry standards
- No breakdown of metrics like risk-adjusted return, drawdowns, win percentage etc
Without proper verification and performance statistics, traders have to take the claims around profitability on faith alone. This is a clear red flag for many professionals.
While anecdotal evidence from supporters indicates the system can generate profits, it’s unclear whether this performance could continue long-term across different market environments. Without performance data, it’s difficult to gauge the risk and reward profile.
Ease of Use for Beginner Traders
Another consideration is whether the Forex Navarra System is actually practical and easy to use for most beginner traders.
In theory, the simple entry rules and basic indicators make it appealing to get started with. However, trading results often come down to proper execution of a system rather than just having a set of rules.
When it comes to real trading, beginners may struggle with aspects like:
- Identifying trades accurately on the charts
- Managing risk on trades with wide 70+ pip stop losses
- Having the discipline to follow setups and rules perfectly each time
Real trading is often far messier than backtested simulations. Without strong risk control and discipline, even a profitable system can fail in live markets.
The wide stops and need to monitor multiple currency pairs also reduce the set-and-forget appeal for beginners. While the system has potential, it takes more skill than expected to trade properly.
What Do Experts and Users Say About the System?
With conflicting opinions about the system across different forums and websites, what do real forex experts and traders actually say about the Forex Navarra strategy?
Most seasoned forex traders advise caution about expecting great results from the system out the gate:
“There are some logical aspects but overreliance on questionable indicators and lack of verification are definite issues.”
“I’ve seen some traders make money with Navarra but proper execution is key and risk management is difficult.”
“Better systems exist today that take advantage of machine learning and market dynamics.”
In general, while some traders have been able to achieve consistency with Navarra, experts suggest the results do not justify the effort compared to other advanced trading techniques available today.
Here are some actual user reviews of their experiences with the system:
“I lost my account using Navarra. Maybe it worked years ago but hard to make money now. Too reliant on big stops and lagging indicators rather than current price.”
“Took many months of practice before I could trade the system profitably. Not as easy as expected for beginners and the wide stops posed some early challenges.”
“I’ve modified the system a lot over the years and changed out some useless indicators. In its current form I’ve been able to make steady income from home with it.”
Overall, trader experiences vary widely from profits to losses and everything in between. Yet even some profitable traders admit modified versions of the system were required rather than using the rules completely out of the box.
The Verdict? Proceed With Caution
In summary, the Forex Navarra System has attracted intense debate within trading circles since its release in 2013. While some traders claim strong profits, experts argue there are issues around lack of verification, outdated techniques, and improper optimization.
Here are the key takeaways around the system:
- Requires strong risk management skills and trading discipline to implement properly based on user reviews
- Unlikely to be profitable long-term using completely out-of-the-box rules without experience
- Better entry-level systems exist today for new forex traders
For Experienced Traders
- Possible to generate profits after modifying rules and eliminating ineffective aspects
- Requires rigorous ongoing optimization and adaptation to stay profitable long-term
- Better use of effort to learn modern techniques with clear statistical edge
Overall, while parts of the Forex Navarra System have potential, traders may want to proceed with caution before considering it as their primary approach. Newer methods using machine learning and statistical validation offer better long-term prospects for profitable forex trading.
The lack of transparency and verification around the performance claims also raise doubts – it’s wise to always scrutinize bold claims of easy profits in trading. With dedication and practice, profits are certainly possible, but rarely guaranteed year after year.