Well, here we are again and another month has flown by in the fast paced world of Forex. The big news, the bailouts, the interventions, the new issues of bonds continue unabated with uncertainty growing by the day. I’m bloody glad I’m no longer a part of that mess as it just sucks the life out of you, I couldn’t care less and I’d rather be designing and building an automated system that can turn 100% plus months irrespective of what the markets are doing – so read right through this report if you want to open yourself to that opportunity.
As we outlined in last months report, and for the benefit of new subscribers, our plan of action was to vastly simplify our whole approach, and focus entirely on much shorter term trading and trading systems where we can keep control of the risk and be in and out of each trade quickly before it is upset by the next violent swing in the other direction or some unexpected news event. This is the most sensible way forwards for all of us, because really, our forté should be technical based systems that aren’t at all reliant on fundamentals. If you want fundamentals based exposure in your portfolio, then load up on stocks or bonds or commodities and take your chances. We, however, feel entirely more confident in leveraging our skills, resources and contacts in the arena of scalping.
Before we expand on significant developments achieved towards our primary objectives this past month, lets first touch on our Managed FX introductions which have both had stellar months….yes, it’s good news all the way across the board this month.
Firstly, as you may be aware, we already support one service provider, Cayoflow, and the range of accounts they offer. As I outlined in last months report they’ve had their fair share of challenges to face recently, with more still to come, see Cayoflow blog. Despite the challenges they face I still believe that they hold much long-term promise and are well worthy of your consideration.
Well that’s been vindicated it seems this past month as they post a solid 10% result across the board for the month of October.
Moving on now to a stand-alone brokerage first created to access a direct feed for their own in-house scalper that was designed by a young maths-whizz and is supervised by an older and very experienced trader, with somewhere near 10 years in FX. They have proven this system beyond any doubt whatsoever, and further it runs on more than 10 currency pairs simultaneously for a much smoothed overall result. The fact that it runs on so many pairs is a real testament to the robustness of the system. And I should know, because I’ve designed and built several EA’s from scratch, so I can honestly say that what they’ve achieved here is really something. They are constantly looking to better the feed and improve their system, which they currently run with about a million dollars of their own money. Over and above this, they are bound by regulatory protocol and are actively working towards even more extensive compliance protocols and regimes.
Without further extolling many of the virtues I see in their company and system, how about I just tell you that they posted a result in excess of 20% this past month.
Usually, an opportunity of this calibre comes with a high minimum investment, but given their early stage of maturity and the fact they are looking to build their business, they are currently offering the very low minimum entry of just US$2,000.
As I said last month if you value my judgement for digging out a good opportunity, then please follow-up with a direct inquiry to enjoy the same benefits that some clients already are and I’ll personally introduce you to my points of contact.
If you choose to go with them, you can be sure they both genuinely work hard to provide the best outcome for their clients. If you let them know you found them via NMi, or better yet Cc: us in on your communications, we’ll do our best to grease the wheels for you.
Pendulum EA Project.
Well what a long story it’s been, so lets cut it short here. At the end of the day it just didn’t make the grade and I couldn’t bring myself to allow a system to be released if I didn’t have the required faith in it. It’s not ethical. I should know because I’m the designer and I’m an extremely harsh and critical judge of systems, and you need to be in forex. There’s no room for second best, or second place in FX – you’re either the winner, or the loser.
It may sound shocking to many reading this that someone would invest over a year of their life and a 5 figure sum on coding only to walk away from it. Well I can tell you the choice was rather an easy one to make given that recently in the space of a 2 week period, I achieved more significant results than I was ever able to achieve with the Pendulum system by just following my gut on a new concept with many highly desirable attributes:
· FIFO compliant
· Runs on Multiple currencies
· No GMT or Timezone trading restrictions
· No new release contingencies required
· No hedging
· No minimum leverage requirements
· Extremely low maximum relative drawdown versus monthly returns ratio
· Positive risk to reward ratio on each trade
· Frequent daily trader
· Trades closed within 1-60 mins, no weekend holds.
· All orders are pending and hard stopped, no @ market executions
· Trailing stop loss feature
· No Martingale or Cost Averaging
Aside from the impressive overview on paper – we actually have this EA system running on a live FWD test demo account already. The first build of this EA out of the blocks has proven to be brutally effective and the right words are hard to find which would adequately convey the level of performance witnessed, and without much further developing seemingly required. But terms such as incredible, unbelieveable, insane and mind blowing have thus far been uttered.
I realise its early days, but all indications thus far are that this system has the potential to achieve in excess of 100% months consistently, and with relative limited drawdown. I realise that sounds just to good to be true and of course it remains to be seen, but right now we have a live FWD test going that has seen 28% up-spikes in a day and is projected to return several hundred percent ROI per month at the current rate of return. Keep in mind this account is being run on 7 currency pairs for thorough testing purposes, and the performance of the different pairs does vary considerably so when the best trading pairs are discovered even higher returns with lower drawdown is a natural consequence.
Purely and simply I have never ever seen a system or any managed account that shows as much potential as this system, it may well exceed performance levels of all that has come before it. Maybe I’ve stumbled upon the secret that others are onto, as I find it hard to believe that I’m the only one using this type of method because in retrospect it’s so obvious. I’m nearly pinching myself that fortunes can change so quickly though and am reminded of another famous saying:
“Success can be but one step away from failure”
And lets face it, if nothing positive was derived from the year invested into the Pendulum EA project that ultimately failed to make the grade, then certainly it would have been a failure. But I credit in no small part the lessons learnt from the Pendulum project as being an integral step in the evolution of this new system.
NMi Managed Accounts Moving Forwards.
Judging by what we have seen in the testing of this new system, most definitely our near term plans are to include the offering of this system as a managed account option for our clients, and most probably under contract to some other managed account service providers/asset management groups. The EA system will be retained in house and we have no plans of a public release, so as to best leverage the available liquidity in the market into the longer term.
We are very excited that possibly we may be amongst the few that can offer a managed account with a reliably achievable 100% month ROI potential. Really we just don’t know how well it works on a real money test until we do so, but that said the demo feed we are running is exactly the same as the live. The difference will be in what is achievable in a live real market, and yes we do expect some decrease in the performance over the demo, in fact our projections are based on achieving less than half the performance of the demo and still the indication reflects 100% plus months.
It may be that we quickly have to limit participation in order to ensure liquidity and continued level of performance, and naturally we seek to do this as soon as we can, on a first come first served basis with early investors given the priority and first right of refusal for additional placements. So at this point we welcome expressions of interests in what will almostly certainly become an official offering in the very near future. More to come soon!
As always, if you’ve any questions please feel free to ask by leaving a comment below, or via the contact form if you need to reach us directly on any of the above mentioned items. Either way we’ll always aim to give you a quality response by the next business day.
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