Posts Tagged ‘being’

Is Your FOREX Signal Provider Being Honest About Performance?

Is Your FOREX Signal Provider Being Honest About Performance?

I know you’ve seen some ridiculous claims from signal providers.  Some claim thousands of pips per month in winning trades.  I’ve sampled some of my competition’s FOREX trade signals to see how well they match their claims.  To make a long story short, THEY DON’T!  In fact, most report using what I call, “Apples and Oranges Reporting.”  Apples and Oranges Reporting is when a FOREX Signal Provider reports his losses in single lots, but sums his wins, claiming all of the pips for two or three take profit points.  I found a great example at a well known signal provider who’s charging 9.00 per month for his signals.

FOREX Signal Provider X reports having placed the following FOREX trade signal:

Sell EUR/USD@1.3367  SL:1.3405  TP1:1.3337  TP2:1.3307 TP3:1.3257 

The risk is 38 pips

The profit at TP1 = 30 pips

The profit at TP2 = 60 pips

The profit at TP3 = 110 pips

This trade was picked up and reached TP1 and TP2.  Price then turned around and the rest of the position was quickly stopped out.  

The reported profit for this trade is +90 pips!  FOREX Signal Provider X claims the first 2 take profits as full positions—when they are really two thirds of one position—yet ignores the 38 pip loss for the last “lot”. There are a few things wrong with this scenario.  Remember, this is an actual FOREX Signal from one of those other guys.  Pay attention because this is a very popular way for FOREX Signal Providers to exaggerate their wins.  First, the reported profit is absolutely FALSE!  There was not a 90 pip profit. Price did not even move 90 pips during the trade, unless you count the reversal.  The real profit was 17.16 pips.  How do I calculate that?  I simply use a weighted earnings formula.  Since the trade is broken up into thirds, I use a 0.33 multiplier for each of the wins and losses.  Then I add the wins and subtract the loss. 

 (30 x 0.33) + (60 x 0.33) – (38 x 0.33) = 17.16 pips   

The second problem is that the reward-to-risk ratio on this trade is horrible!  

Using the same weighting formula as before, we find a maximum 66 pip gain [(30 x .33) + (60 x .33) + (110 x .33)] vs. a potential 38 pip loss.  Why?  Because our profits reduce as the trade progresses, but the loss is total.  I could get into more depth on this, but simply put, the best case scenario makes this a low value trade.  Market Mover Edge FOREX Signals are only considered with a reward-to-risk ratio of 2:1 or more.  I seek out—and often find—those “treasure trades” with a 4:1, 5:1 or even 6:1 reward to risk ratio. 

     Finally, I have to mention that this FOREX Trade Signal had almost no possibility of making it to the third take profit target.  This was a counter-trend trade that was projected to hit an important Fibonacci level near TP2.  Counter-trend trades are risky when they are good setups.  They’re suicide when the analysis is flawed.

     Market Mover Edge FOREX Signal reporting is two-fold.  First, I report all wins and losses.  Some of my trades have what I call the Risk-Free Trading Zone.  These are trades where I call a ½ take profit to preserve your capital in case of a jittery market.  Again, a few trades I recommend taking a ½ position.  This is all recorded and visible to all on the performance page.  No games, no tricks, no polishing—just honest reporting.  I have losses!  I’m proud to report those losses.  It’s how I handle losses that makes me successful.  My intra-day results from 1 May 2009 to 22 May 2009 were:

USDCHF/Short – 4 May 2009  +106 pips

EURUSD/Long – 5 May 2009  +128 pips

EURUSD/Long – 6 May 2009  -25 pips

GBPUSD/Long – 7 May 2009  -59 pips

GBPUSD/Long – 8 May 2009  +100 pips

USDCAD/Short – 13 May 2009  -28 pips

GBPUSD/Long – 15 May 2009  + 200 pips

GBPJPY/Long – 17 May 2009  +27 pips (gap)

USDJPY/Long – 17 May 2009  +20 pips (gap)

EURJPY/Long – 17 May 2009  Flat (gap)

GBPUSD/Short – 18 May 2009  -30 pips

USDCAD/Long – 18 May 2009  -5 pips

EURUSD/Short – 18 May 2009  -26

USDCHF/Short 20 May 2009 – +61 pips

USDCHF/Short – 21 May 2009 – +109 pips

Total:  +578 pips  Please see our performance page for more in-depth details.

     Market Mover Edge Weekly Extreme trades for May SO FAR are over 1100 pips!  My earnings are actually 1119 pips, but others entered later or earlier and got a few more or a few less. 

     Now that you know how to debunk the typical FOREX Signal Provider’s accounting practice, it’s time to demand the very best.  Honesty, accuracy AND performance can and does come in one service—Market Mover Edge.  See you in our private trading room after you’ve joined our team!  Welcome home, fellow trader.  Let’s go rip some pips!

10 Benefits of Being a Day Trader

www.ForexAutopilotRobot.com – 10 Benefits of Being a Day Trader – I am a Day Trader in the Stock Market especially the Forex Market. There are many benefits of being a Day Trader in the Stock Market. These are a list of a few benefits; 1. You are your own boss – You make your own decisions about which markets to trade and decide your own trading strategies. 2. You do not require any qualifications – Although you do require to learn the basics of trading, you do not need to have a university degree to become a day trader. Continual self education on the financial markets and trading is essential. 3. You can start with as little as ?500 – You can start small and with a good trading strategy and good money management, you can slowly build up your capital. 4. You can earn unlimited amounts of money – There is no limit to how much you can earn on the stock market. 5. You can trade from anywhere in the world, hence you are not restricted 6. All you need is a laptop and internet access 7. Everyone is equal in the Stock Market – The stock market respects no one and does not discriminate against anyone 8. You can trade a variety of financial markets such as Indices, Forex, Commodities, Individual stocks and Options 9. You decide when or when not to trade, you are the master of your time 10. You gain better understanding of the financial markets These, along with other benefits, makes me excited about been a Day Trader. I also enjoy teaching people how to trade, especially Forex …

Forex Trading Robots – What are They? And Why Are They Being Used So Much Nowadays?

Trading volumes of these markets are growing in an arithmetic progression every year. Traditional daily turnover in Forex markets were reported to be over US $3.2 trillion in April 2008. With this figure alone, no one should tell you how liquid Forex markets really are. Though the bad economy has greatly reduced the potential of the Forex matters, its still stand out as the most liquid markets you can find out there.

Trading Forex is a very difficult and risky task. But given the huge amount of profits available in this market, people are flooding it on a daily basis with the aim of making some extra or full income from Trading Forex. With the financial crises around, and people loosing their jobs, some folks always think Forex trading can be a save heaven for them. But you should always take special care when getting in to such markets because: where there are big profits to be made, there is always the possibility of big losses as well.

In any efficient economy, there would always be a supply to every demand. Given the complexity involved in trading in the Forex markets, there are quite a number of people who don’t know enough about Foreign exchange markets but are interested in trading foreign currencies. Special software called Forex robots have been designed which could greatly reduce this complicated process involved in Forex trading.

Most of this software is called Forex robots, meaning that they are capable of instructing you exactly on what to do in what circumstance. Others may even automatically do it do it for you. For example, the robot may instruct its user to sell a particular currency, and buy another currency based on the market data analysis made.

While these robots could be right in most cases depending on the mark, it is good to take note that they are not always correct. There are just a software and like any other software, their output depends on their input. Garbage in, garbage out. This simply means that you may loose so much money if you don’t a good robot that that has been effectively designed to take most of the parameters into account. The Forex market is actually beyond the reasoning scope of even a Forex robot. That is why no one can say with certainty that they can trade Forex without some losses here and there.

Since Forex indicators have been programmed to run on some given pre- market indicators which have been judge by experts as key indicators preceding key events, it can be a wise idea to take a look at them if we intend to trade this very liquid market.

Pokemon Championships Being Held In Hawaii

Pokemon Championships Being Held In Hawaii
KAILUA-KONA, Hawaii — The Pokemon World Championships are being held on Hawaii’s Big Island this weekend. Hundreds of players from around the world qualified to play in the Kona championship, which includes competitions in both its trading card and video game versions.

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Is there a Forex Trading indicator that shows “in real time” how many pairs are being traded?

Is it possible for one to manipulate the price of a currency pair by selling or buying a huge amount? I don’t want to buy a huge lot and the price goes down because my own trade made it go down. I don’t want my own trade to change the price trend because if I buy more than is actually being traded on the market, it more likely will go in the opposite direction I want it to go.