How to Improve Your Forex Trading Skills

Filed Under (Journal) by Casey on 25-04-2012

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 trading in commodities via sites such as Bullion Vault, for example, but you will need to brush up on your understanding of Forex before attempting to start trading within this particular arena. 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.

This article was written on behalf of Bullion Vault

It’s Sexy and You Know it!

Filed Under (Journal) by Casey on 10-04-2012

Once in a while I do go to Brit’s site (EAReview.net) to see what he has been up too… I mean one of the few sites which blocks out all the noise and hyped up talk about this EA being the best that EA being the best only to see if flatter from the face of the earth.. His sites shows you like it is…

Anyway while sucking up to Brit is not the objective here, I notice that he did something different. To my surprise in March, he started to feature EA’s which by his own admission, he mentioned that he does not toy around with these sort of EA. And which sort of EA is that? Grid and/or Martingale EA.

Man he is really cramping in on my ghetto… I mean… I am suppose to do all the martingale testing here. Not him…

Ok… I was just kidding… He can review whatever EA he pleases but gird/martingale EA? That is not like him, Volatility Factor EA (grid) and Forex Envy (martingale) were featured on his site.

Yes, he was the kind of person who would look at an EA, backtest it and describe the strategy behind that EA and if he thinks that EA has a sound strategy he would put that EA live. But again… Grid and Martingale EA?

I am still taken aback. So what does that say about the forex EA market??

Don’t know… I think I mention before in one of my post that Martingale EA will soon claim it’s place on the EA market. Why? Because most of the strategy EA sucks… Only a few of that EA probably stood the test of time. Probably Brit’s site will tell you which one it would be.

I mean… just the other day… Another long time EA trader commented on my previous post, that a new Martingale EA is in the market… Drive Expert Advisor

Having another guess on this trend is that, people have probably wasted a lot of money on all the other EA (non martingale) that they now believe it is time to give Martingale EA a try. Don’t know… I’m just guessing here

OR!!!

Martingale EA is sexy and you all know it!

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.

 

Hyper!! Hyper!! Hyper!!

Filed Under (EA System) by Casey on 10-01-2012

This is the first thing that came into my mind when it comes to this EA.

I was born to this Street Fighter era and like any classic comics, this was one of my love during my schooling days.

We would be running around in the school corridor going “Holuken!”  “Holuken!” “Holuken!” (with both hands extended stances)  pretending to blow the discipline teacher off his feet. Yes, in our schooling system, we actually have a teacher dedicated to disciplining us boys from turning into monkeys. How that system failed miserably…

Anyway, coming back to forex. The developer of Hyper EA contacted me last year asking me if I would feature his EA on my site. I… at that time as you all might know… was out of luck and wasn’t really motivated to do anything about it.

I mean… this guys was going to forward a copy of his EA to me. Free! Even with that incentive, I was not motivated. Geess… that was how out of luck I was.

It took me about a few months to get my act together and subsequent requested if his offer was still valid. And surprisingly he said yes. He added that my timing was just great because he only started his site up and running. I mean his new site. He previously had a site offering Hyper 2.0 and a few other EA.

And like a small buy with a new toy, I took a swing at backtesting this sucker…

Phew wah!!! Hyper on EURCAD 2007 – 2011 – 90% modeling quality

Somehow there were only history for EURCAD from 2007. However… it is this kind of graph that encourages me to take to the next step of backtesting which was of course 99% modeling quality… And so I ‘Hyper’ my way thru all the necessary backtesting…

Hyper!! Hyper!! Hyper!! Hyper!!

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2009 – 99% – 3 pip spread

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2009 – 99% – 4 pip spread

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2009 – 99% – 7 pip spread

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2010 – 99% – 3 pip spread

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2010 – 99% – 4 pip spread

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2010 – 99% – 7 pip spread

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2011 – 99% – 3 pip spread

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2011 – 99% – 4 pip spread

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2011 – 99% – 7 pip spread

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Looking at the curves, you can imagine how excited I was. Even though the curve seems to deteriorates with the widening of the spread. It was still recover nicely.

Now the reason I put it into 3 different spread setting was because the developer encouraged me to put his EA on an ECN account where spread could vary. So I had to test it to the extreme.

With the kind of backtests results above, the only next step to take is to put this on my live account… Of course the developers own live account also played a part to that decision.

Now… there are two broker which the developer says it shows sign of good result. It was either Pepperstone or FinFX. While his live account was with FinFX, I choose Pepperstone (RAZOR account) which was ECN platform. IE i pay commission on every trade I make.

This is pretty new to me actually. ECN and commission payment. Well it’s something different and probably add to my trading experiences.

On top of that, Pepperstone allows a broker to broker fund transfer from Alpari. (Well… at least I could dip into the funds from my Alpari account which is practically sitting there waiting to be pipped)

After some preparation of setting up and funding my account before the new year… I finally put it live just after the new year. While the developer mentioned that they have stopped trading from the 15 Dec 2011 till the 9 Jan 2012, I took the dive and started the EA on the 3 Jan 2012.

So here it goes… Let’s see if I can blast some pips off with this EA.

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Here is my Pepperstone account

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And below is the developers account (FinFX)


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Hyper EA cost CHF199 or you can get it free if you register a broker under their IB program. So… you get to choose. On top of that they offer PAMM account (Managed account services) I think it does say something about the developer of this EA.

Son of Odin! Bring Forth thy Thunder!

Filed Under (EA System) by Casey on 06-01-2012

And smite thou mighty hammer on thy pips…

Of course I am referring to Forex Thor

However, Forex Thor is not the Son of Odin but rather the Son of Shark EA.

I am baffled by creativeness of this EA developers. I mean, this developer has actually release Shark EA, Sigma EA, ProFX and FX Pulse. And these names are kind of original, seeing how Alexander (EA developer) has started this business a few years ago.

For him to come up with Forex Thor and selling it like a much hyped EA is well… different. Maybe he is trying to re-invest himself… or maybe marketing an EA like this makes better sales.

I don’t know… but usually with these sort of sales hype means more critical look at his EA.

And so… Son of Odin, what bring-eth of you-eth to the mortal realm-eth? To blow the forex world to kingdom come?!?!

Oh lord… How I tremble upon thy power…

It is because I tremble by thy power, I dare not venture further… as I am not worthy of your awesomeness.

And so I watch by the side to see how the power of Forex Thor performs smashing pips after pips.

It looks good no?

Well… at the point of this writing it seems that is a very huge problem with memory leak. A lot of user seems to be saying that Forex Thor is crashing their VPS.

At this point of writing, Thor Forex myfxbook stopped updating since 5th of December. That is about one month since the last update, probably that could be the reason.

This memory leak seems to be a serious problem and the developer just kind of disappear from myfxbook discussion thread after a lot of people or should I say his customers are complaining about this memory leak.

http://www.myfxbook.com/community/trading-systems/thor-forex/219954,1#?pt=2&p=12&o=219954

Initially in the discussion thread he said that, it stopped updating because he ‘accidentally’ switched it off. He ‘ACCIDENTALLY’ switched it off. Then when they started to complain about the memory leak, he said that he is not facing that problem.

But this memory leak issue has not only been discussed in myfxbook but also a lot of other forex forum. And now probably Alexander is behind the scene trying to solve this problem. Or probably busy trying to issue a refund to all the customer who are unhappy with the EA.

Now this guy… has actually made a bold guarantee statement on his sales page.

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Firstly you get your refund in 90 days should you not be happy with the product. Secondly if you are not making money with Forex Thor, he will give you 100 bucks!

Man… with this memory leak issue, I am sure everyone is not making money and will try to claim this $100 bucks!! I guess that could probably be the reason why he is so quiet. Either he is laying low trying to repair the problem or busy handing out refund + cash. The last I heard was that he was issuing a new patch.

Anyway, Forex Thor seems to be performing very well until 5 December 2011 (on demo that is), about a week after that people started noticing and complaining about this memory leak issue.

And of course… I just couldn’t help myself but comment on this…

Hahaha… Get it?? Leaki… As in Loki… Thor’s evil brother? As in Thor’s evil brother trying to bring Thor down.

Get it? Get it?

No? Seriously… no?

Ok… never mind… It was a cheap joke but I just couldn’t resist it.

Anyway… until Alexander solves Forex Thor’s problem on this ‘Leaki’ memory issue, I’ll probably wait till then to get my hands on his hammer.

Erm… probably that did not come out right. But I guess you know what I mean…