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 100PercentWeener.com 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 forexarb.com.

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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This is an article I have, which I thought it would be interesting to share.

I previously did some manual trading, and I must say… It is not as easy as it sounds. One needs to be like Bruce Lee, Chuck Norris or IPMan… (Everybody is Forex Trading… ) However, if one is not like them, one trys to use what ever resources avaiable to the person to try to steal pips from the market.

As they say, there are many ways to skin a cat… Meowww….

Anyway, if any of you forex ea traders want to try manual trading, probably this article might sound useful

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If you’re keen to improve your success rate within the world of forex trading, then there are certainly one one or two things which you will want to bear in mind Here are just a few points which anyone looking to become involved in forex trading should consider.

Firstly, you may well want to consider investing in a reliable Forex advisory software or system. Of course, this is not essential, but many of new traders find that such systems can be extremely helpful in identifying changes within the foreign exchange market.

You will also want to make sure you have a good knowledge of the worldwide economy. Although this won’t always affect your trades, it sometimes will, and can prove essential in making sure you spot trends and changes in time to be able to benefit from them. Don’t automatically assume that your previous financial experience will mean you are well-equipped to start trading on the foreign exchange market. You might have an extensive background in Commodities or Superannuitants or Futures, but you will need to brush up on your understanding of Forex before attempting to start trading. Without doing so, you will run the risk of encountering significant losses.

However, even the most dedicated and experienced forex trader will be likely to make mistakes and losses at some point during their trading career. The most important thing for anyone who is keen to improve their trading skills is to learn from such mistakes, ensure that they don’t make the same errors in the future. Never attempt to regain any losses which you have made by making risk-heavy trades, which may not pay off. As a forex trader, you will need to learn to be both patient and disciplined with the decisions which you choose to make.

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I did not previously mentioned this in my last article, but the one of the foot that was planted in the forex water was also my rebate strategy escapade.

This idea was conceived like a few months back when I was fu(ked left and right by forex and I had to calm myself down to regain my bruised ego.

With a bruised ego and lost in direction, the only thing that I could muster and maintained was my martingale escapade and my rebate escapade.

Both which over the months has slowly risen and have slowly given me back the confidences to explore further what I have.

Previously in my Rebate Report, (which I have since taken down because it was last written a year ago and I needed to update it). I wrote that it should be a secondary strategy only when we applied a certain strategy to it.

While the idea seems sound, it was the application of the strategy that should be fine tuned. Initially it was ‘blast the account with every scalping EA like a machine gun’ and then see the turn over on your account feed your forex rebate account. This is of course with the assumption that the scalping EA works well… And I did that with FXOpen. Which has initially shown me relatively good result but I was unable to consolidate it to find out if it does actually work in the long run.

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Wow… I did not realize that it has been a long time since I last made an entry to this blog…

Last post was in July… and now it is the end of November.

Didn’t realize that it took so long to heal my ego in my forex journey.

In denial? In pain? I don’t really know but the last crash did seem to take  a longer healing process. I seem to be numb with the things that has been happening in the forex world.

Even trying my hands on manual trading took a back seat. Reading all the forex books again and again also did not give me any inspiration. All the motivational books, phrase, sentences, words did not really put me on track to coming back into forex. I just feel so jaded.

But the yearning for success in forex still burns in me, while it does not burn like a fire, it however burns like a charcoal in a barbeque stove. Waiting for the steak to be grilled and cooked.

However… I manage to something which I wanted to do like a gazillion years ago. I manage to do 99% backtesting on a few EA. I also manage to do some work to further improve my Lovely Megan EA, which is the only EA that I am running right now.

Without speaking too soon… I think that is my best EA so far.

I maybe out of touch… but I think forex EA seems to be dying… Most of the old EAs seems to be either have died or selling at drop down price.

Having said that, I seem to be receiving one promotional forex ea every now and then. So probably it’s not totally dead… but I guess the trend seems to be moving towards manual forex trading… Mentoring… or even signal providing.

But as I say… I maybe out of touch…

With one foot in forex… I don’t think it is right for me to write off forex EA.

After a few years trading forex EA… I can only say that there is still more to trading forex EA then just setting it on your account and hoping to make you money without any work.

Now… I have to slowly crawl my a$$ back into forex.

Hey… What’s up people…

It’s been a while no? Yeah… standing up again after a fall is no easy task. The healing period took a little longer than expected. Actually I was more distracted… Or maybe I purposely got myself distracted… Anyway… today is not about me. It’s about well… you guessed it. Forex Growth Bot.

This Forex EA has been around for a while and it seems to be doing very well.

Looking at my lesson Forex EA 101 – I manage to strip and reset all my EA on my account except for Lovely Megan. Lovely as ever and Transformer 3 sucks without Lovely Megan.

Anyway, following lesson 2, looking at what Brit had to say… Forex Growth Bot seems to be a trending EA and have so far looked very good.

It was because of that I took into lesson 3 and started doing more research on this EA and very little have been written about it. Even if it has, I seem to find more good things than bad.

No I did not demo this sucker… I straight away put it on live. There were already a lot of ‘evidences’ to show that the strategy seems sound.

It does (1) take small losses and (2) let the profit run which I believe it is one of the fundamental rules of trading. On top of that Brit’s own, live account looks terrific.

I myself have already put this sucker live for about a month plus…

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I thought of dedicating another post to my interest in Martingale to streamline my thoughts and principle.

Hell! I have prove the critics right all this while when I busted both my accounts or probably busted all my accounts when I toy with Martingale. Yes, toying with martingale  in any form is dangerous.

Make no mistake, I am not here to prove the critics wrong. I am not here to prove anyone wrong. Neither am I proving anyone or even myself right. I am just here to have some fun with Martingale on Forex.

All forex trader will say that Martingale in forex is BS… Even some EA users thinks Martingale EA are BS.

However, some EA traders things that scalping EA are at times acceptable. To those who ever have this notion are hypocrites. What so acceptable about large stop losses with small take profits.  As it is, scalping EA with large stop losses goes against every trading mantra that ever exist. The logic is that… take as many small profits as you can against one big stop losses.

That in a way is how Martingale works… but the only differences is that the stop losses are much much bigger. So that makes it unacceptable. Risk is an objective perception isn’t it?

Anyway…  let’s get a few things straight here.

Martingale strategy will not make one rich in forex.

Every trader will echo this statement. No one will be stupid enough to risk a huge amount of money on Martingale. Then again, there are a lot of stupid people in the world that does stupid things. Then again, no one has every said has ever come forth to say that Martingale strategy works.

Martingale is 100% risk. All one needs is a black swan.

One of the reasons why trader stays away from this strategy is because they don’t know when the black swan will come. If it does… one can say bye bye to their account. No matter how nice and linear the curve is at first… it just needs a spanner to wreck havoc onto ones account.

Martingale is just for fun, period!

Given that the downside is 100% risk and the upside are just small profits then what else could it be when one trade Martingale strategy? Of course it is for fun. In life everyone wants to beat the odds. Haven’t you bought a lottery before? While the example are two different thing, the point is the same. Everyone wants to try to beat the odds especially me.

I have always said that there is a possibility that if used correctly, this type of strategy can be profitable in the long run. Don’t mean to be disillusion here. But I feel like Galileo and want to go against the ‘church’ of trading when it comes to trading with Martingale.

So… I have make a couple of losses. It hurts… it’s painful but in a sadistic manner, I feel that it is fun. Like a stunt man whose stunt went wrong, hurt himself then heal himself and then get back into the game.

It’s like a drug… I just can’t get this off my mind.

So in order for me to have fun but also to try and make money out of it… I of course have to split my style into two account. One is for fun and absolutely have nothing to do with trading while the other accounts will be for serious trading.

My FXOpen was my fun account…. while my other Alpari and GoMarket will be for some ‘Don’t screw around’ account. So far Lovely Megan has been holding on very strong. Almost two years now and it seems to be holding up. It has not made me rich yet, but it has not yet to make me poor. YET… to make me poor.

Pipstrider and FX-Pitbull where to only other two Martingale EA that I toyed with and both were a failure. And why is that?

Because I never followed my lesson. And one of the easiest lesson which I never applied was to backtest those motherfu(king EA…

That was the differences between Lovely Megan and Lovely Cheryl.

Following this… I shall once again… backtest all Martingale EA because this strategy has worked with Cyborg… why can’t this work with other EA. All I need to do is work a bit harder with backtesting.

Martingale… here I come again…

This goes against every trading Mantra in the book… and this is what I call ‘Rebel without a Cause!’

Hey Forex… Miss me?

I have been healing a bit after the past month since I got clobbering from you. I took some time out from both trading forex ea and blogging to review and reflect. I have also been dabbling with manual trading and it was fun. However, my daily commitment does not allow me the liberty to trade manually. Over the past few weeks while healing I have been doing a lot of reading and relearning the ins and outs of trading in general.

In my last post, I mention that automatic trading and manual trading are two different breed of style. One applies logic into the market while the other apply judgement.

Today I do not want to debate about both these styles. I want to concentrate of automatic trading or forex ea because that is what I still believe that there could be a balance to meet between logic and judgement without having to sacrifice my lifestyle.

So I started reviewing my own strategy as to how I should go about looking starting to get my self back on track with forex ea and see if my personal history or experiences can teach me any lesson.

Lesson 1 – Don’t overload

I realize now that there is no point dumping gazillion EA that ‘looks good’ on my account. Whether demo or live. It’s just too difficult to handle. I think 5 different types of EA should be the maximum that I should use either in different account or within the same account

Lesson 2 – Look at what Brit has to say.

Brit from http://eareview.net/ knows what he is talking about. Read what he has to say. His post is very detail and technical. This is so far the only blog that I have come across that breaks it down to you.

If he is talking about one particular EA, then it’s probably worth checking it out. He has done most of the work… and this type of review takes time and effort. For him to waste his time reviewing on ‘stupid’ EA is just stupid. And I do not think he is.

So if he is looking at it. I should also spend my time looking at it.

Lesson 3 – Be cynical and verify every information.

A lot of forums and review page have one thing in common. Too much information. I should not take these information at face value. All information needs to be verified especially when big numbers are thrown at you.

Most review sites will show you big percentage profits… big figures here and there. So on and so forth.

If it is not verified by myfxbook… Forget it.

Lesson 4 – Consider only Live account

There are many EA developer that will not put their money where their mouth is. If they don’t put it live… Screw it.

And to add a more stringent criteria. If the EA is not live on either Alpari, IBFX, GoMarket or big reputable broker… Screw it too.

Lesson 5 – Do ones own backtesting

Sure…. Brit has done all the nice simulation and 99% backtesting. If I were to take into consideration lesson 3, then I myself needs to verify his information. After all, he is affiliate with all of the EA he review. I mean I don’t fault him for doing that. I would too…

I just want to satisfy my confidences.

Lesson 6 – Remember lesson 1 to 5

One thing about being human is that we at times get carried away with excitement. Reviewing my post I realize how I can at times be so caught up with the moment that I forget what I have learned.

So having to reset my whole forex ea search I believe this 6 new lessons will be good enough go get myself back on track with this next half of 2011.

I’m coming home
I’m coming home
Tell Forex that I’m coming home
Let the rain wash away all the pain of yesterday
I know my kingdom awaits and they’ve forgiven my mistakes
I’m coming home, I’m coming home
Tell Forex that I’m coming home

Forex EA is a great technology and about one or two years ago, there was a debate going on as to whether to trade automatically or to trade manually.

And there was a equal point to both side divide.

I have never join the debate. I just love forex ea because I am just plain lazy… with the capital L. I love forex and I love technology. And as they say you can never be lazy with love.

Ok… there is no ‘they’. I believe that one can never be lazy with love.

And yes… forex ea has made me lazy. Has made me take for granted what forex ea is actually all about. Forex trading is a journey and a tough one where it pits you mental strength and ones resolve to succeed in the forex market.

I thought forex ea is the key to all of this… Very naive and very ignorant indeed.

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Good day all…

Things has not been looking that great for me these past few months. Initially in March… It was a normal pinch. Then in April the breakup and finally in May… The healing process.

My rabbit year does not seem to be hopping for me eh?

Well… this is the cycle I guess. At the beginning of May, I was kind of lost. Never have I felt so lost when it comes to forex trading before. Lost as in not sure what next.

Month after month I have been trying to make auto trading work. But it seems that month after month… the cycle returns.

I think this is a cycle every forex trader goes through. Or for that matter every market trader.

When things are looking good, we get elated. Then when things are looking back, we get stumped. In between there will be a period of celebration and a period of hurt.

Well, if not every trader then it is me who seems to be experiencing this cycle.

Last month was the hurting period. And probably this month is the healing period. Hopefully next month is the ‘screw you forex here I come again’ period…

Blogging is probably the best way to get me on track again.

Dear Erik

I thought that I would dedicate a post to your comment on my previous post. Since you are my most avid commenter with regards to my recent event and also your comments did spark a much deeper thought into my Martingale escapade. And probably talking about it might give me a clear mind of who I am and what I am doing.

Anyway, this is what you commented

Casey,

Instead of just “guessing” how to run strategies that work you should study statistics man, learn how to perform Monte Carlo simulations and learn how to study systems for real. I would hate to see you get all wiped but unless you get a grip and truly learn the stuff you are on the way for that. Don’t be stubborn, take advice, study statistics.

Erik

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Casey,

Backtests without an out of sample period are useless (you’re just curve fitting) not to say about the simulation capabilities of MT4 which are very poor for a system on a 5 minute time frame. Once you do truly reliable backtests accounting for broker dependency, spread widening and slippage and you also do Monte carlo simulations you will notice that this is a sure wipeout in the long term. Get your statistics together Chris, don’t ignore the shortcomings of your simulations. I hope you are humble enough to take this advice!

Erik

So… the first thing that came to my mind was “What is Monte Carlo simulation?” In your previous comment you did mention about that simulation, but I did not understand so I has assume that you were mentioning about backtesting. I mean… this was the first time I here this kind of testing on forex.

Ok… granted my forex knowledge is not as vast as the internet… So I went to do some research and this is the first site that came out when I google “Monte Carlo Simulation” was of course Wikipedia…

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