Alpari II – GBP

Filed Under (Live Account) by Casey on 27-12-2011

  • Broker: Alpari
  • Leverage: 1:500
  • Currency Account: GBP
  • Started:Dec 27, 2011
  • EA Use: Primeval EA

2/1/12 – Testing IvanaPipALot with different currency account & strategy
4/5/12 – Stopped Testing after 3 failed attempts.
14/5/12 – Tested EAKain & Primeval EA on EURUSD and EURGBP only
31/7/12 – Remove EAKain and keep Primeval EA on EURGBP only

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Merry Christmas and A Happy New 2012

Filed Under (Journal) by Casey on 23-12-2011

It was interesting that while I was preparing this post to wish my visitors a good holiday season, I found that I have been getting hits base on the search term ‘Merry Christmas and Happy New Year’

I really do not know how my site about forex can make it to the top 10 list in google search. Maybe Santa knows I have been very nice… :)

Anyway, it gave me an opportunity again to look back and read what I had written about a year ago in 2011. On that post ( I mentioned that 2011 was another year of learning and another year of growth.

By gawd… I got what I wished for! 2011 was another year of learning for me and by the end of it… I gawd dang hope that I have grown from it.

Well… just wanted to take this opportunity to wish all my visitors Happy Holidays and have a great new year!

I guess the key here in forex trading is persistence. Continue moving forward is all that I can do. Moving forward with Lovely Megan again :)

Never say DIE!

That will be my motto for 2012 especially when speculation has it that 2012 is the year of Apocalypse. Bah!! Why fill oneself with DOOM and GLOOM? Better fill oneself with whiskey and vodka no?

Anyway… I’m closing up shop for the holiday season as usual. Winding down Lovely Megan to not take any position during the festive week, you know all about drawdown and $hit like that… Then I shall restart everything once more… from the beginning.

So Santa… I have been very nice this year. So this is what I wish for: Please bring peace to all mankind and please give Barrack Obama and Angela Merkel some wisdom to get us out from this economical mess that the whole world is in or will be in if they don’t do something about it. And after that… do fill my forex account with some nice looking figures… I could use a new car.

For my 2012 goal and objective: To start learning from my past mistake and grow my account further and be consistent over the year. Oh… and not let the cycle happen again. The cycle where I fu(k everything up during the 2nd half of the year.

So wishing you all a very wonderful Christmas and a champagne filled New Year… Be Good ye’all! If not stay safe and be careful…


Courtesy of

Pepperstone I – AUD

Filed Under (Live Account) by Casey on 22-12-2011

  • Broker: Pepperstone
  • Leverage: 1:500
  • Currency Account: AUD
  • Started:Dec 22, 2011

7/3/12 – Tested EAKain on EURUSD on an ECN account
14/3/12 – Added USDJPY for EAKain
13/4/12 – Added EURGBP for EAKain

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Forex EA 104 – Understanding The 2% Risk

Filed Under (Journal) by Casey on 21-12-2011

After understanding what leverage is, I think it’s time to I learn about… sorry. I RE learn about what this 2% risk is all about.

Both leverage and risk I believe are interconnected. The higher we leverage the more we risk. Taking from the example from my previous post (Understanding Leverage).

With 500:1 leverage I put in 200EUR to trade 1 lot and if I made 100EUR it means my return on my capital/deposit/collateral = 50%

With 100:1 leverage I put in 1000EUR to trade 1 lot and if I made 100EUR it means my return on my capital/deposit/collateral = 10%

With 500:1 leverage I put in 200EUR to trade 1 lot and if I lose 100EUR it means my lost on my capital/deposit/collateral = 50%

With 100:1 leverage I put in 1000EUR to trade 1 lot and if I lose 100EUR it means my lost on my capital/deposit/collateral = 10%

Now doesn’t it relates to risk? If the gain of $100 on on a 100:1 leverage is a 10% profit or reward , a lot of $100 on a 100:1 is a 10% lost or risk. So leverage and risk or reward is interelated.

But I think we need to hump on the risk part, since all traders say that managing your risk is your key to success in trading.

I have been doing some studying and it seems that how much I risk on my trade is actually up to me. And if we are going to equate risk to be equal to how much I leverage on each trade, then it will also mean how much I leverage on each trade is up to me. Plain and simple.

Now here is a new definition I learn: Real Leverage

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Forex 103 – 99% Backtest Modeling for Beginners

Filed Under (Journal) by Casey on 18-12-2011

During my recuperating month, I have been going back to basic. You know as they say “When all else fails, go back to the basics of it all”.

And I have been going back to basics. Learning everything all over again. And one of the things was to learn how to do is 99% backtest modeling.

I have been gawd dang lazy and have been procrastinating this particularly simple task. It is simple, but I found it a bit tedious or maybe overwhelming. Whatever the reason it may be it was just an excuse for me to not do it. Don’t know why? And don’t know what?

But… I finally got my ar$e to really do something about it. Better late then never as they say…

Now take a look at Brit’s page here on tick data, it’s just crazy with information. Crazy as in a whole loads of information. I have also bought myself into Rob Casey’s “Guide to Getting Rich with Forex Robot” which also explains about 99% backtesting in a more simple and visual way. Even with Rob’s video steps, I found it a bit of a challenge…

If you are not overwhelm with the information written on Brit’s page… then you are probably a veteran and knows most of what he is talking about. If you are overwhelm, you are not at fault. It’s just that we have not reach that stage just yet.

Rob Casey’s guide was must more simple and with video on how to do it step by step… I found it easier to understand. However, when I want to go back to a point where I was stuck… I have to play the video over again… From the start! And I have to wait for the buffering to reach that point before I can see where I did wrong. That was pretty annoying.

He also had a step by step guide… But sometimes without the visual, I do not know whether I was doing it right or wrong.

So… after learning and doing a few 99% backtest modeling on some EA. I got the hang of it. And I though it will be a great help to all newbies if I share with them my easy understanding of both these two sites about 99% backtesting.

Before I continue, I just want to say that this is what I believe to be the most simplest form a step by step. It’s just a do and follow the steps A, B, C, D, to get result E. ┬áThere are no additional information as to why and how and what. All this information has already been very well written in Brit’s page. Take you time to read, learn and understand more if you want.

But if you want to get down and dirty and start doing some 99% backtest modeling… Then continue on…

Here you go… 99% backtesting the straight forward ABC steps without the heavy information.

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Forex 102 – Understanding Leverage

Filed Under (Journal) by Casey on 16-12-2011

I have to admit, while I do understand what leverage is per say… One thing that I am still ignorant about is how leverage is going or can be used properly in Forex.

Especially for a guy who plays with Martingale strategy, leverage and margin are two important key… However, all I know is that I need high leverage and high margin in order for martingale to work but I never realize how it can work or will work towards my favor.

So in order for me to re-educate myself, I share with you what I leave, read and understand.

From Wikipedia Leverage
In finance, leverage (sometimes referred to as gearing in the United Kingdom) is a general term for any technique to multiply gains and losses.[1] Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.[2] Important examples are:

  • A public corporation may leverage its equity by borrowing money. The more it borrows, the less equity capital it needs, so any profits or losses are shared among a smaller base and are proportionately larger as a result.[3]
  • A business entity can leverage its revenue by buying fixed assets. This will increase the proportion of fixed, as opposed to variable, costs, meaning that a change in revenue will result in a larger change in operating income.[4][5]
  • Hedge funds often leverage their assets by using derivatives. A fund might get any gains or losses on $20 million worth of crude oil by posting $1 million of cash as margin.[6]

It goes on to say that there are two different definition of leverage investing and corporate financing. But I guess we will go on to investing as it is more applicable to me.

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The Best Forex VPS

Filed Under (Journal) by Casey on 09-12-2011

I am coming close to my third year with SWVPS and I though it would be nice to write about Forex VPS again. There are many articles out there with regards to the need for a Virtual Private Server for forex EA traders and one of the key questions is which is the best forex VPS around.

Why do you need VPS for your forex EA trading? The simple answer is that your MT4 needs to be 24 hours online and you do not want the internet connection to be interrupted by anything.

And on top of that our normal internet connection at home can be said to be unreliable unless you are living in South Korea.

Fast execution is another thing… but if you are not scalping than probably one just needs a reliable connection to ensure that the trade are being executed properly.

Anyway, I am about to renew my VPS subscription and I though after 3 years there should be another VPS provider out there who might be able to provide me with a cheaper and better alternative.

And so I scour the internet once more to find a good and relatively cheap VPS provider. Of course I am going to use my current subscription with SWVPS as my bench mark. On top of that, I am going to make some assumptions here. Other than the parameter I state below in the table, I assume that all other services and perks are equal and non vital to a forex traders requirement

In my honest opinion, there are what I look at when choosing a VPS provider.

Disk Storage: Now, hosting your EA and your MT4 broker does not require a lot of space. At most, one MT4 broker will only take 6 to 8 MB. So why do you need so much disk storage for?

Even if I were to put all my EA on the server it would only take up about 1G.

Unless you want to do backtesting on your VPS, then of course you need more storage space for data download. And if you want to do 99% backtesting on VPS, you need at least 2G per currency pair. But I won’t recommend doing backtesting on your VPS. I don’t want to slow down my VPS for any reason. After all, I want my VPS to be in peak performances when trading.

More disc space means you can also keep other stuff in there.

While disc space is not all that important, humans being humans, the more the better as they say…

Physical Memory(RAM): This is very important because and unless you want to put in say 10MT4 testing it back to back… either demo or live. The more RAM you have, the more MT4 you can host on one VPS.

Bandwidth: Nothing more than how much traffic moving in and out. From my observation, leaving one MT4 platform with 10 charts open, my bandwith is about 800MB if you have 10 MT4 running with 10 charts open it will only be 8GB.

Again, humans being humans… we just want more for less.

So at the end of the day, I let the figures speaks for themselves. And I am sticking to the one and only the best Forex VPS (in my books) in terms of PRICE and POWER…. SWVPS

Forex Arb

Filed Under (Journal) by Casey on 07-12-2011

Forex Arb is the new forex arbitraging tool that came into the market just recently. Yesterday actually at this time of writing.

The idea of arbitraging in the financial market has actually been around for a long long time while forex arbitraging has also been around for as long as forex existed. The only thing was that there was never an avenue for retail traders to take that opportunity.

But now with the booming of forex broker left right and center, forex arbitrating to retail traders has become a reality.

I myself love the idea of arbitraging… Hey… I even toyed with which is a sport betting arbitraging software. Great way to take advantage of the price differences between two parties.

As usual… the sales page of Forex Arb is relatively attractive. If it wasn’t for my past experiences I would have already jump into the sales and cough up 2 grand for this piece of software…

It was precisely for my past experiences that I was skeptical with this site. Ok… my past experiences was with sport betting arbitrage but I think there are some similarities between both these two methodology of arbitraging.

So… from my limited experiences in arbitraging. I can only say a few things about

Firstly, additional information is almost non-existences with regards to what is required. What Jason wants you to do is… Pay first… then we will let you know what is required. The sales page is like any other sales page… blah blah blah… how I came about blah blah blah… sad story about how i lost money… blah blah blah… how i discover this by accident… blah blah and more blah…

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