Casey Rebate Strategy

Filed Under (Journal) by Casey on 30-03-2010

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Seeing how I have gotten my rebate for my months activity I though I will share this with you. I previously wrote about forex rebates (Rocking Rebate) and pointed out with obvious fact that rebate improves my profits.

Now I want to show you how by simply just creating some turnover on an account with small drawdowns and with a help of forex rebates, one can still come out profitable.

I will call this ‘Casey Rebate Strategy’. Since no one has ever documented this strategy. I believe I have right to claim this as my strategy. Until and unless someone points out to me that this strategy has been around for ages… I am claiming this to be mine… :)

I have already posted two very scalpy strategy on my FXOpen account. One is my Silly Scalper where I put 6 EA trading on only EURCHF and my Royal Rumble where I put 3 EA trading on 4 currency pair EURGBP, GBPCHF, USDCHF, USDCAD.

For Silly Scalper, my account balance was 140.11 and previous month It was 139.99.  My profits was like a small… IE peanuts IE… about 0.12cent!!! However, when my rebates came in I looked at it and saw that from this scalping escapade alone, I got a rebate of 6.29!!

So that means my profit for this account was like 4.57% [(6.29+0.120)/139.99]

Interesting huh…

As for my Royal Rumble account, my account balance was 416.95 and my previous month balance was 419.39. I made a lost of -2.44! But my rebate was 12.03!!!

Which means my profit for rumbling FAP, Kain and Primeval yielded me a 2.29% [(12.03-2.44)/419.39]. Even though my account was showing a lost. I still come out on top. Mighty interesting indeed.

Please note that as of this posting… my Silly Scalper took a beating but I have to compare the cut off date of the time I receive my rebate which was on the 24 of April. So for illustration purpose, my FXOpen starting balance I took was from the 24 March till 24 April.

Well I don’t have to talk about Lovely Megan, coz she is steadily moving upwards. For me this rebate strategy is to ensure I have buffer to catch this fall.

However… for my Alpari account, much can be said to be the same.

Here is the run down.

Strategy           Initial               Ending                Profit/Loss  Rebate            Net Profit/Loss

Bling                  1,091.66         1,076.05              -15.61           11.85                      -3.76
Lancelot          1,026.86         1,047.95                21.09            0.72                     21.81
EuroBlitz         1,043.49            993.84                -49.65             5.42                  -44.23

Not at all interesting huh… The interesting point is Forex Bling because Thunderstorm and Thunderbold was generating a lot of trades as compared to Lancelot and EuroBlitz. Thus I got a higher rebate value for Bling. Further more, I had stopped Freedom EA which is a trending EA and a main drawdown on that account. If I did not take into consideration Freedom EA, I might come out profitable with this rebate strategy.

So… let see what sort of conclusion I can come up with this. They say Scalper works best on ECN account because spread are good and price manipulation by the broker is zero. But with FXOpen and Alpari, I believe there is a dealing desk involve and possibility of price manipulation and often requote might not give the common man an edge. I believe that unknowingly to the brokers, by offering forex rebate,  I believe with the past two months I have shown that with forex rebate, I now have the edge.

Having said this, I am still at the broker’s mercy. For instances, I do not know how Alpari (CashBackForex) reduction of forex rebate will give me the edge. I think that it still might give me an edge, but with 0.1 pips per round rebate, I do not know. I have yet to test it out.

If the broker, decided to stop these sort of rebate program. Then this strategy will only last until these broker finds out that using this strategy would give me an edge over whatever tricks they maybe doing behind the server.

Secondly, one other thing to note is that any big drawdowns generated by these EA must be closed manually. I have been pointed out that any trades that last after Asian hours should be closed manually to minimize the losses/drawdowns.

And eventhough we might close out these trades, my trading history has in a way shown that when all the currency pair are fired up the next day… The loss would easily be recovered. I have seen that, and I believe from myFXbook graph you can see how one dip at times are recovered. Mind you, I have so far never intervene with the automatic trade at all. I think it’s about time I start experimenting with this theory of closing it manually.

Well… Casey Rebate Strategy still needs to be fine tune so I think I am going to make some changes onto my live account to see how this strategy will work out.

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