Cashing Out?

Filed Under (Journal) by Casey on 05-04-2012

Sometime a few weeks ago, I was approach by what I believe to be one up-and-coming internet marketer. He said that he wanted to venture into the forex market and was wondering if I was interested to sell my site.

He explained that since my site is already well establish and he does not want to start from scratch. It was this reason that he wanted to buy my site.

I was like ‘Whoaa… my site is that establish?’

Thinking about it for a while, I guess my site is… or rather my domain is a very generic domain name. It’s Best Forex EA dot com and what content do I have on my site, nothing but blah blah blogging… but still no Best Forex EA in sight.

Not bragging… but the search term Best Forex EA yield me to be on top of the search page… And according to google analytic, it is a generic search name, and was the top 50 search for forex ea or forex robot… I said was… That is because when I bought this domain, I did some research to get good domain from the term forex, and ba ba boom! … Best Forex EA was on the top 50 and that domain name has not been registered.

Gold mine?!

You bet cha!! However, as much as I wanted to turn this site into something like Forex Peace Army, or 4xproject or all the other forex ea review site, I did not have the web or internet skills to do so.

I only have the skills to… Talk bull $hit… Rant… Complain… and probably adding some humor into some articles on forex. I mean I found most forex blog sites to be a bit dry with news and technical article… So at that time, I thought what the heck… Maintain my site as a blog site and explore my creativity…

Coming back to the point here… Cashing out…

I was initially tempted when he ended his email by saying ‘… let’s talk numbers…’  So how much is my ‘establish’ site is worth?

$200? $2000? $20000? Or $0?!?!

No… I don’t think it’s worth $0… If Jersey Shore and all the other BS reality TV (except for Amazing Race and maybe The Apprentice) shows are worth millions, then some of my BS on forex is worth something…

And so… I went to a few website appraisal site to see how much my site is worth. And the result it yielded ranges from $490 to $6,500! The only two consistent site that give me a good or relatively fair valuation (with traffic and all the site statistics attached) was DNFight.com and SiteValueCalculator.com
which was $2,329 and $2,179

Like any other stocks, either I add a premium by the potential that it can make or I can just accept the ‘as it is’ value, but like most stuff that has a potential to grow… Usually they sell on a premium of what the potential is really worth… So I want to add 5 times premium to the current my current site worth. And I think if anyone wants to buy my site… It’s going to cost you a big $10,000!! Fair no?

But… after all that fun doing the research of my site worth, I decided to decline his offer.

No doubt, my site is not fulfilling it’s full potential but I guess that is because my own personal forex trading with EA has not reached it’s potential …

And when I do achieve it… I guess my site will propel me to STARDOM!!

FAME and FORTUNE awaits me!!!

Until then…  I guess all you visitors have to continue to put up with my dry humor and some bull $hit on the Best Forex EA…

Focus on the Few

Filed Under (Journal) by Casey on 04-04-2012

First let me share with you this video that got me thinking a few weeks ago…

Now I have already been aware of this principle but have never really applied this until i started looking at my forex activity…

The principle of it is very simple,  it is the law of the vital few, and the principle of factor sparsity which basically says that  for many events, roughly 80% of the effects come from 20% of the causes. http://en.wikipedia.org/wiki/Pareto_principle

There are so many example of this principle, for instances (from wikipedia)

80% of your profits come from 20% of your customers
80% of your complaints come from 20% of your customers
80% of your profits come from 20% of the time you spend
80% of your sales come from 20% of your products
80% of your sales are made by 20% of your sales staff

Therefore, many businesses have an easy access to dramatic improvements in profitability by focusing on the most effective areas and eliminating, ignoring, automating, delegating or re-training the rest, as appropriate.

Ok… these information is fine and dandy but how the hell should I apply to my forex activity?

Hmm… Let’s see if I can rewrite the above

80% of your profits come from 20% of your customers; the currency pair
80% of your complaints losses comes from 20% of your customers; my lousy forex ea
80% of your profits come from 20% of the time you spend; on forex trading
80% of your sales come from 20% of your products; [What product? Affiliate product?]
80% of your sales are made by 20% of your sales staff [Can’t find any relevance]

This kind of make some sense to me… I think…

So in forex sense, I need to find the right 80/20 ratio to maximize my performances. That is to say:

I need to focus on a few currency pair. 2? Maybe? Because that is where my profits would probably generate. On that currency pair/s I need to find 20% of all the bunches of EA that will provide me with 80% of my profits.

Subsequently I need to spend time on that 20% of my time on those 20% EA that matters on 20% of the currency pair available to yield me 80% of my forex trading profits…

Hmmm… that don’t add up to 100%

Anyway… I think I got the drift here…

Before I end this post… Here is an inspiring read… http://www.entrepreneurs-journey.com/397/80-20-rule-pareto-principle/

PS. Maybe it’s a good idea to only be affiliated with 5 reasonable good EA out there whereby one of those EA will make me a millionaire!! Muahahaha… 😀

Breaking Up With Lovely Megan

Filed Under (Journal) by Casey on 28-03-2012

But we are still friends…

Yeah… it was pretty nasty… I kind of understand how Brian Austin felt…

Anyway…

I was pretty confident that these sort of shit won’t happen with Lovely Megan, I had calculated the stop and the level really thoroughly and couldn’t understand how it could take almost 160% of my equity?

I had a stop in place to ensure at least only 30% – 40% of the equity will be triggered at any one particular currency pair

Dumb founded… I rechecked my calculations over and over again… And I realized how I had actually fu(ked myself…

I kind of screw this account up by applying a 0.2 micro lots… Yes… Just by simply increasing my lot I actually magnified the drawdown by 2 times.

And so… this is how it come to an end…

However… it is still not the end of it all…

I am still keeping this account alive and Lovely Megan is still trading on my FXOpen account. It’s going to take a bit of time to heal this wound… that is if I manage to recoup this back in time.

As always… We shall see…

Not So Hyperly Happy

Filed Under (Journal) by Casey on 10-02-2012

Ok… bad start… Very very bad start to the year

Even the new year of the Dragon does not seem to be helping at all…

Sigh…. Well no one to blame except myself. It was personally my fault. In one case, I did not read the manual properly while the other was because I had to scratch an itch.

For Hyper EA, I had the TimeCorrection setting wrong. Yes, this EA still uses a manual time correction setting rather than having an AutoGMT function. Not sure the reason behind this, but comparing my result and his it shows that the trade that I took which cause me to take my first drawdown was a trade that was not taken by his own account with PepperStone.

So it was pretty screwed up. On top of that Hyper EA seems to work better with Fin FX than Pepperstone… This EA does not take trades everyday… Pretty interesting I should say. Not all EA that trades a gazillion times per day is the best EA.

Anyway, the developer is and will try to insert an AutoGMT feature into the next update.

As for Happy EA… The itch I had to scratch was an itch I needed to satisfy. In the manual it was recommended that with less than $1000 (which is the case for my Alpari account) I had to use the second setting which takes a conservative approach.  Being me, I whack setting 1 instead of setting 2 on my account.

And what a whacking I got… well…serves me right… as the developers result shows a steady rise. My result shows a gawd dang fall…

A fundamental self flaw which I need to correct…

One Loses And the Other Gains

Filed Under (Journal) by Casey on 17-01-2012

It is shocking to note but Plimus just kicked a lot of Forex EA product out of it’s portfolio and they seem to be restricting all forms of forex product. Now clickbank still supports forex product but not forex EA, or forex robots or forex software.

Why?

One of the suspected reason is the rate of refund is just too high. Apparently, 25% rate of refund is the maximum. Anything more than 25% refund rate means your product is $hit. And probably the rate of refund for all forex product with Plimus breached the 25% rate.

Well, they say that Plimus is actually just doing some spring cleaning and clearing out all those lousy forex business model or rather lousy forex product. Fair enough. They have every right to do so… Who wants a product that has a very high rate of refund anyway?

However, a lot of vendors are complaining that they were kick out with out much warning and time to prepare. Some affiliates were also complaining that because they are selling EA, they also got their account suspended.

Yeah… that’s not cool. Even if you want to massive spring cleaning, you do it PROPERLY and PROFESSIONALLY.

Anyway… and like a flock of birds migrating. It seems that all forex ea vendors are moving their payment platform from Plimus to RegNow.

Did a quick search… and voila!!

Most of them have started to move… I suspect there will be more soon.

As they say ‘One man’s losses is another man’s gain.’

There are two ways of looking at this. One, Plimus losses a lot of forex business. RegNow will see an increase in forex business. Two, Plimus have gotten rid of refund rates headache… and RegNow has just began.

One things for sure… Plimus’s credibility has kind of drop heavily overnight and probably they will take a long while to be a competitive Online Selling Platform Provider. Maybe for forex product only…

Don’t You Dare Spread those Legs!

Filed Under (Journal) by Casey on 17-01-2012

It’s interesting to note that myfxbook.com keeps improving their services… over and over and over again.

Much like the I can do it Chuggington Town trains… it keeps moving and moving and moving…

If you want to check brokers spread at any time, check this out http://www.myfxbook.com/forex-broker-spreads

If you are a scalper and want to check and compare brokers spread during those nice Asian legs… I mean Asian trading hours. What better place to check everything on one page.

So… all you sissy brokers out there… Don’t you dare spread your legs too wide. We are watching.

 

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 (http://bestforexea.com/2010/12/merry-christmas-happy-new-2011/) 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 FreeLogoPlanet.com

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

Read the rest of this entry »

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.  There 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.

———————————————————— Read the rest of this entry »

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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