The Inception Trading System – A Comprehensive Review
The Inception Trading System is a manual trading system developed by Forex Ballers Club that aims to provide traders with algorithm-generated trading signals. It utilizes a proprietary Price Action algorithm to identify key psychological levels in the market and provide entry, stop loss and take profit recommendations.
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Overview of the System
The Inception Trading System consists of three custom indicators – the Inception V2, Momentum V2 and OGT Trend Dashboard indicators. It also comes with a template that applies these indicators to the charts with recommended settings.
Key features include:
- Automatic identification of support, resistance and trend levels using price action
- Daily trading signals with entry, stop loss and 3 take profit levels
- Assessment of overall market trend direction
- Works across currency pairs, indices, commodities and cryptocurrencies
- Available for the MetaTrader 4 and 5 trading platforms
The goal of the system is to eliminate the subjective aspects of trading by using an algorithm to detect high probability trade setups. It aims to save traders time from manual analysis while providing concrete and objective trade plans to follow.
How the Inception Trading System Works
The core of the Inception Trading System is its proprietary Price Action algorithm. This algorithm analyzes recent price action to identify key support and resistance zones in the market. It looks at structure levels where prices have reversed previously.
The indicator then plots these support and resistance levels on the charts using horizontal lines. Each level is labeled clearly with its price value.
In addition to plotting support and resistance, the algorithm also assesses the overall trend of the market using a multi-timeframe approach. It determines if prices are in an uptrend, downtrend or range-bound consolidation.
Once the key levels and trend direction have been established, the Inception indicator searches for potential trade setups. The rules it uses are based on principles of price action analysis and market structure.
It identifies situations where prices pullback or bounce off the identified support or resistance zones, especially after a period of trending. These setups align with the direction of the bigger trend, providing high probability opportunities.
When the algorithm detects a trade setup, it will plot a new horizontal entry line along with stop loss and 3 take profit levels. The stop loss is placed beyond nearby support/resistance zones and aims to limit losses if the trade moves against you.
The 3 take profit levels target logical areas where partial or full profits can be captured as the price moves in the intended direction. These profit targets are positioned at key chart points identified by the algorithm.
Benefits of Using the Inception Trading System
The Inception Trading System aims to provide the following benefits:
Saves Time
The system eliminates the need to manually scan charts for trade setups or draw support/resistance levels. This saves significant time and effort for traders.
Removes Emotions
By following specific entry, stop loss and take profit rules, the system aims to remove emotional interference that often sabotages trading plans.
Versatile
The price action foundation allows the system to work seamlessly across currency pairs, commodities, indices and cryptocurrencies.
Effective Risk Management
Inbuilt stop losses based on nearby support/resistance zones helps limit downside risk on trades.
Consistency
The rules-based algorithm provides an objective method to identify high probability trade setups day after day.
Usage and Functionality
The Inception Trading System has been designed to be simple and intuitive to use for traders. The indicators automatically plot the key levels and signal lines on the charts once applied.
The trader then simply analyzes the chart context and looks for alignment with the indicator signals and broader trend direction. This can be done across any time frame from 1 minute to monthly charts.
On a currency pair like EUR/USD for example, the trader would first assess if price is in an uptrend or downtrend using the dashboard indicator. If pointing up, they would then look for buy signals and avoid sell signals.
When a new entry line appears, the stop loss and take profit levels will also automatically plot on the chart. The trader then enters a buy order at the entry price with the stop loss and take profit orders.
If using a broker that supports bracket orders, this allows an efficient one-click order entry. Otherwise the levels can be manually entered or used as reference points to plan the trade.
The trader then monitors the position to see if prices reach the profit targets or if the stop loss is hit before exiting. The process repeats at the next signal, systematically following the levels plotted by the Inception indicator.
Performance and Risk Metrics
Extensive backtesting by Forex Ballers Club indicates the Inception Trading System can produce a solid risk-adjusted return across different market conditions.
On a basket of currency pairs tested from 2019 to 2022, the system yielded an annual return of 16.8% with a max drawdown of 11.3%. This led to a return/drawdown ratio of 1.49.
The percentage of winning trades was 47% with an average profit slightly larger than the average loss. This resulted in a profitable trade expectancy overall when losses are kept small.
As with any trading system, past performance does not guarantee future results. Key metrics that traders should monitor when using this system are the risk/reward ratio of trades, win percentage and drawdown levels.
Poor risk management can lead to oversized losses that hurt long term profitability. Traders should adhere strictly to the stop loss levels provided and not overleverage their trading capital.
Costs and Licensing
The Inception Trading System is sold on the Forex Ballers Club website for a one-time fee of $357 USD. This allows unlimited use of the system across all MetaTrader accounts and includes lifetime updates at no extra cost.
The system can also be purchased through various forex trading forums or online marketplaces for prices ranging from $100 to $400 USD approximately.
Before purchasing it is important to verify the authenticity of the seller and ensure full support is included. There are cracked versions circulating on peer-to-peer networks but these often have limited functionality.
The Inception Trading System requires the MetaTrader 4 or 5 platform which is available for free from most forex brokers. Traders should factor in any trading commissions and spreads from their broker when assessing overall profitability.
Inception Trading System Pros and Cons
Pros
- Saves time from manual analysis
- Provides objective and structured trade plans
- Works across a wide variety of markets
- Incorporates effective risk management
Cons
- Requires monitoring trades in real-time
- Rules-based system lacks discretionary element
- Over-optimization can lead to curve fitting
- Locked into MetaTrader platform ecosystem
Inception Trading System Conclusion
The Inception Trading System provides traders with an intriguing option in the automated algorithm trading space. The reliance on price action for trade identification sets it apart from the typical indicator-heavy retail systems.
For traders struggling with chart analysis or emotional trading issues, the structured and objective nature of Inception System may improve consistency. The built-in risk management aims to stabilize equity curves as well.
However, the system still requires human oversight in applying discretion and actively managing trades. Blindly following signals without context or proper risk controls can lead to underperformance.
Overall, Inception Trading System represents an accessible and relatively low-cost trading algorithm that may suit newer traders or those with limited time for analysis. As with any system, traders should extensively backtest it first across different market conditions to determine if it aligns with their trading plan and risk tolerance.
