PMT Forum

PMT Forum's MOST POPULAR Discussion Boards => Forex Trading and Investing => Topic started by: buddy on Feb 02, 2007, 04:22 AM

Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 02, 2007, 04:22 AM
Discussion continued from previous thread (http://www.pinoymoneytalk.com/forum/index.php?topic=4751.0). -Mod.


Quote from: Mike QC
Hi buddy, this is not how the Freedom Rocks system works.  I suggest you try the software yourself.   You sounded more like on the traditional approach.


Like you, I was so anxious to go live and earn money big time from FR system. Good news is, I did!
Yes, I tried it for 6 months Live. I am not sure if they change the Portfolio Allocator now. I was in FXSol before because
FR recommended them and they had a great and high swap(well not now). Sure, they call the sell market order as a limit but it will confuse other traders if you talk to them like that when you are referring to a different thing.


Quote from: Mike QC
Btw, I finally graduated last week so now I know the big difference of traditional forex trading and the FR/FFS system. It's also great and I'm really proud to learn the traditional approach with all those very effective strategies & indicators...breakout, rangebound, fibonacci, MVA, stochastic, bolinger bands, RSI, Parabolic SAR, and so many many more to mention.  But this doesn't mean that I'll be stuck in either FR/FFS or traditional approach. Of course I'll always go for where I'll be laughing all the way to the bank.  peace


FR system in general is the same as any other system, whether it is scalping, breakout, sidus, bagovino, daily range,
pip boxer, fibonacci, vegas, Pivot here and Pivot there, etc. All of them will buy low or sell high but the question is,
when is the right timing, I dont know either. So if you dont know that, you have to incorporate money management and that really matters bigtime. Good thing FR has a good MM out of the box so newbie will not be expose to high risk and lose it all.

After creating and studying many systems, I create something that go along with my personal way of trading.

When I was starting from forex traiding, I thought about this great idea about buying and selling at the daily timeframe.
It worked for almost 2 months consistently and boom the next month I lost almost everything in one hit.
Well, it was a demo account so no harm done. The strategy goes something like this, try to look at the daily
timeframe, what do you notice? Most of the bar have a shadow below or above at a close time for the daily candle.
I aim for 4 pips only above or below of the body and it made money consistently in 2 months.
There is one problem, I know you know it by now and I wont elaborate.  So there's about it.  See ya and go for pips!

Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 02, 2007, 06:06 AM
Quote from buddy post:
Sure, they call the sell market order as a limit but it will confuse other traders if you talk to them like that when you are referring to a different thing.
----------------------------------------------------------

Hi buddy, Welcome to PMT.

When you say/saw "market order" that means instant execution at the current price.

In forex trading there are only 2 types of pending orders which are buy/sell limit and buy/sell stop. The last time I check the FR site, I didn't saw any market orders except in the porfolio allocator, but it's not sell but a buy market order.

In Porfolio Allocator. there's only buy/long market order.
In Porfolio Manager. there's only buy/sell limits order.

I must have missed something.

----------------------------------------------------------
Another quote from bubby's post: (gee... ba't di kaya gumagana yung quote button ngayon?

After creating and studying many systems, I create something that go along with my personal way of trading.
----------------------------------------------------------

Glad to hear that buddy, hope we can exchange more ideas...

I agree with you, FR is same as any other system out there, I will consider it as traditional way of trading, the only difference is you will use a software to guide you. I can sleep more soundly at night using it, knowing I won't get any margin call the next morning.

and seems you're also a forexfactory site member. Those advance system you've mention do works, but most of them will let you enter late.

Just curious, why just aim 4 pips a day when a market price can range 100 or more pips a day? Don't you think its a waste of time? (I know... to each his own, there's a lot of ways to skinned a cat :hihi:). Since you're also a forexfactory member, why not check the "sexy stoch" thread there for scalping? or just use the KISS (Keep It Short and Simple) approach by using only thrend lines, fibo and price action. So you can gain more than 4 pips a day.





Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 02, 2007, 07:25 AM
hi Mike,
I just had funds reach my account at IBFX and will most probably enter the trades on Monday.   Ill be trading the 3 majors at 10% margin.  
Keep in touch and let us know how your FR account is coming along.
Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 02, 2007, 08:07 AM
Sorry if it is confusing because I don't know how they do it now with the new brokers.
Ok, As I remember, you put 1 buylimit and 1 instant sell or close order(not sell limit bec this will create a pending order when hit) above the market price. When the market goes up it will sell some of your units from your active lots. So yes, my bad, it was not a market order but an instant sell or close of your position type. I am not sure how you do it now in mt4, seems like
you use a closeby or something. In FXSol you can create that close order or limit as they call it by selecting the active order
then sell or close some units when hit by a specific price. I handle that close some units differently by creating an EA and closing some portion of the lots by OrderClose function.

No, I dont trade that 4 pips in live trading. It just came to my mind when I was starting up learning forex and started
demoing hit for two months.

Yeah, FF is a good source of new info and there are a lot of good systems there. But I'm not comfortable using any
system or strategy without doing any in depth research with it. Anybody can create any system but most of them
will only work in trending or ranging conditions. You have to analyze what really is going on, why the market is behaving
that way. Anyone can say, put SMA 10 low, EMA 150, RSI period 14 on a 15 min timeframe and go long when SMA 10 crossing 150 from below and RSI is above 50, and go short for the opposite. Well, been there done that.

I want a system that is unique that I understand which is consistent and effective that will work in ranging and
trending market.

FR is good if you want something that will work out of the box. I just can't handle the drawdown because sometimes
it takes months to level out.


By the way Mike, Did you guys get the compounding for riskfreeprofit?



Quote from buddy post:
Sure, they call the sell market order as a limit but it will confuse other traders if you talk to them like that when you are referring to a different thing.
----------------------------------------------------------

Hi buddy, Welcome to PMT.

When you say/saw "market order" that means instant execution at the current price.

In forex trading there are only 2 types of pending orders which are buy/sell limit and buy/sell stop. The last time I check the FR site, I didn't saw any market orders except in the porfolio allocator, but it's not sell but a buy market order.

In Porfolio Allocator. there's only buy/long market order.
In Porfolio Manager. there's only buy/sell limits order.

I must have missed something.

----------------------------------------------------------
Another quote from bubby's post: (gee... ba't di kaya gumagana yung quote button ngayon?

After creating and studying many systems, I create something that go along with my personal way of trading.
----------------------------------------------------------

Glad to hear that buddy, hope we can exchange more ideas...

I agree with you, FR is same as any other system out there, I will consider it as traditional way of trading, the only difference is you will use a software to guide you. I can sleep more soundly at night using it, knowing I won't get any margin call the next morning.

and seems you're also a forexfactory site member. Those advance system you've mention do works, but most of them will let you enter late.

Just curious, why just aim 4 pips a day when a market price can range 100 or more pips a day? Don't you think its a waste of time? (I know... to each his own, there's a lot of ways to skinned a cat :hihi:). Since you're also a forexfactory member, why not check the "sexy stoch" thread there for scalping? or just use the KISS (Keep It Short and Simple) approach by using only thrend lines, fibo and price action. So you can gain more than 4 pips a day.
Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 02, 2007, 08:29 AM

hi Mike,
I just had funds reach my account at IBFX and will most probably enter the trades on Monday.   Ill be trading the 3 majors at 10% margin.  
Keep in touch and let us know how your FR account is coming along.




Good luck, gr8collector!

You are not using FR?
Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 02, 2007, 08:44 AM
Hi ping,
ill be using FR.  
Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 02, 2007, 09:37 AM
^Goodluck buddy.
Follow it to the T and don't use more than 20% of your Equity.
We look forward to your many earnings and pips!
Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 02, 2007, 12:08 PM

Ok, As I remember, you put 1 buylimit and 1 instant sell or close order(not sell limit bec this will create a pending order when hit) above the market price. When the market goes up it will sell some of your units from your active lots. So yes, my bad, it was not a market order but an instant sell or close of your position type. I am not sure how you do it now in mt4, seems like
you use a closeby or something. In FXSol you can create that close order or limit as they call it by selecting the active order
then sell or close some units when hit by a specific price.


That's not how the FR system works. I'm not sure if we're referring the same FR, or they did changed their system.

Actually its easy to follow the steps:
On the Porfolio Allocator, you place buy/long market order (instant execution) in all currency pairs you want to hedge. 2,3 or 4 major currency pairs. TAKE NOTE: NO SELL

Then on the Porfolio Manager, the software will tell you at what price to set those buy and sell limits. TAKE NOTE AGAIN: only buy/sell limits, no buy/sell stops.

If a limit order triggered and turns positive, close that position and go back to your porfolio manager, recalculate the next buy/sell order of the currency pair you have closed.
If it didn't turned positive, just live it there and wait.

Now, the last stage, If you saw your overall unrealize balance turns positive, close all those active/opened positions at the same time. Delete all pending positions that have not executed.
 
Title: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 02, 2007, 01:16 PM
Yeah it's the same system. I did not elaborate that much with the Portfolio Allocator and Portfolio Manager.

The bottom line is this, you create a buylimit and a sell or close price order for each currency. If you have two pairs for example eurusd and usdchf, you will create 1 buylimit and a closeby(limit as they call it in FXSOL) order for eurusd based on how many units Portfolio Manager gave you. It's like a breakout system, you put 1 closeby order above and 1 buylimit below the Market price. The Portfolio Manager will tell you the price & units you need to set your trigger above and below the current market price. You do the same for usdchf actually and will
reset only a pair that has been hit.

If you have 3 currencies then you will have a total of 6 orders 3 buylimit and 3 close orders.
Same follows for 4 currencies.

Well, it could be different because they are using MT4 platform now and they dont have a
close or automatic sell in MT4 like what we see in an FXSOL. The nice thing about
FXSOL is the sell or limit is run on the server and you just wait for an email or text
when one is hit.

For Visuals:

Close some of the active units (Portfolio Manager says close 3 units only)
^
|
Market Price
|
BuyLimit (Portfolio Manager says execute a buy order when hit)


I hope we are on the same page.
Is it really different now or I just have a bad memory?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 02, 2007, 03:32 PM
Hi buddy, more or less it's the same, siguro iba lang pagkaintindi natin. Thanks for sharing your experience with FR. Malaking tulong rin yung sinabi mo for us who want to enter this thing. Anyway, if it's ok, I'd like to ask more questions:

What pairs did you trade? How high was your leverage? What margin did you use? For the 6 months that you traded, how much was your total profit from the interest alone? (I guess this is the primary method for earning long term with FR - carry trading)

Pansin ko lang the drawdown could really last for months. That's how the markets behave, minsan talaga drawdown, unless we can time our entries.


Guys, btw, someone in FFS also created some indicators on when to time the 'entries', di ko lang maintindihan. Sam_1_els, maybe you could help, I'll share the custom indicators with you guys...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 02, 2007, 05:07 PM

hi Mike,
I just had funds reach my account at IBFX and will most probably enter the trades on Monday.   Ill be trading the 3 majors at 10% margin.  
Keep in touch and let us know how your FR account is coming along.


Mind if I ask, when did you send the funds?  Via wire transfer ba? How long (hours) did it take for IBFX to acknowledged the receipt of your funds?

UPDATE: Mine got credited in less than 15 hours, fyi.


If you are not using FR yet, are you planning to use traditional trading?




Quote from: MikeQC

I'm starting conservative with only 10% margin, 3 pairs (eur/usd, gbp/usd & usd/chf), 400:1.  Amount: $5,000 and I'll make it $10,000 on March 1st.


Wow, that's quite a lot to achieve in 1 month!?  Good luck!  I hope I can do that too...  :yehey:


Quote from: buddy

FR is good if you want something that will work out of the box. I just can't handle the drawdown because sometimes
it takes months to level out.


Hi, from your posts, I understand you came out a winner after 6 months of using FR.  Mind if I ask how much, in percentage was the return?  How long was the drawdown you mentioned here, as in how many months?



UPDATE:

Wish me luck, I'll go live today!



Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 03, 2007, 03:39 AM
What pairs did you trade?
eur/usd, gbp/usd, usd/chf => as recommended by FR at that time

How high was your leverage?
1:400

What margin did you use?
15% of $5000

Swap Profit?
$3000 in 6 months => It helps a lot when you have a big drawdown

Biggest Drawdown?
$7800 when I reached $10,000 balance

Your Broker?
FXSOL


Hi buddy, more or less it's the same, siguro iba lang pagkaintindi natin. Thanks for sharing your experience with FR. Malaking tulong rin yung sinabi mo for us who want to enter this thing. Anyway, if it's ok, I'd like to ask more questions:

What pairs did you trade? How high was your leverage? What margin did you use? For the 6 months that you traded, how much was your total profit from the interest alone? (I guess this is the primary method for earning long term with FR - carry trading)

Pansin ko lang the drawdown could really last for months. That's how the markets behave, minsan talaga drawdown, unless we can time our entries.


Guys, btw, someone in FFS also created some indicators on when to time the 'entries', di ko lang maintindihan. Sam_1_els, maybe you could help, I'll share the custom indicators with you guys...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 03, 2007, 03:56 AM
Yes, I turned $5000 to $12000 in 6 months, 6 1/2 months to be specific. Probably I was lucky.
I reset everything as soon as my Accont Equity becomes more than $1000.
Biggest drawdown happens twice or thrice a month. I cant remember how long exactly but it's like a
roller coaster ride. Sometimes you're up, sometimes you're down.


Hi, from your posts, I understand you came out a winner after 6 months of using FR.  Mind if I ask how much, in percentage was the return?  How long was the drawdown you mentioned here, as in how many months?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 03, 2007, 04:19 AM
Thanks for the answers buddy. Hopefully the system is better this time, though I feel that we have to be conservative to survive these huge drawdowns
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 03, 2007, 07:12 AM

Yes, I turned $5000 to $12000 in 6 months, 6 1/2 months to be specific. Probably I was lucky.
I reset everything as soon as my Accont Equity becomes more than $1000.
Biggest drawdown happens twice or thrice a month. I cant remember how long exactly but it's like a
roller coaster ride. Sometimes you're up, sometimes you're down.




That's great, more than 20% a month!  

Your profit target per session is set at $1000?  That's 20% of your initial investment.  I thought that's hard to achieve, that's why I am targetting about 3-5% per session only.  But if ibfx rocks can get their target trail to work...
 
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 03, 2007, 08:36 AM
I noticed that FR has a boomerang effect. The more drawdown you have
the more returns you will get. So it goes with the saying that
if you risk high, you gain high.

There are also instances that one currency is going south too fast and
your correlation will get so wacky. Be ready with that and dont
freak out because it will happen a lot of times I'm telling you.
Relax and drink a lot of water when that time comes because when the
market goes south it will eat your available margin like theres no
tomorrow. But the good news is, the big drawdown will give you more
earnings when it returns back doing 60 mph in 3 secs (specially in NEWS TIME).
You will see it sooner or later.

When you average 20% per month, I bet you will look for other strategies or
risk more of your money by increasing your margin with your existing system. Everybody wants to be millionare tomorrow, it's a never ending chase.
Ofcourse that is my opinion and you dont have to agree with me.

Goodluck my friend and go for the pips!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 03, 2007, 10:48 AM
Ping - the transfer took me less than 16 hours from when i sent it.  Telegraphic transfer (wire) yesterday at 10am (BDO) and it was in my account when i got home at 3am this morning.

I already put the trades in (3 pairs -Eur , Gbp and Chf)

1.5% drawdown as expected going into the weekend.  

What you have to keep reminding yourself when using FR is to keep that margin nice and low so that you'll always be far from a margin call.  Even without the Yen at my portfolio i used 10% margin just to be safe.  Even in the future when i experience profits from FR ill keep my margin at 15% at the most.

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 03, 2007, 01:22 PM
Quote from: buddy
I noticed that FR has a boomerang effect. The more drawdown you have
the more returns you will get. So it goes with the saying that
if you risk high, you gain high.

There are also instances that one currency is going south too fast and
your correlation will get so wacky. Be ready with that and dont
freak out because it will happen a lot of times I'm telling you.
Relax and drink a lot of water when that time comes because when the
market goes south it will eat your available margin like theres no
tomorrow. But the good news is, the big drawdown will give you more
earnings when it returns back doing 60 mph in 3 secs (specially in NEWS TIME).
You will see it sooner or later.

When you average 20% per month, I bet you will look for other strategies or
risk more of your money by increasing your margin with your existing system. Everybody wants to be millionare tomorrow, it's a never ending chase.
Ofcourse that is my opinion and you dont have to agree with me.

Goodluck my friend and go for the pips!


Hi buddy, thanks a lot for sharing your great experiences with Freedom Rocks and really appreciate them.  As what I've been telling everyone here, and just like investing in other forms of investments, we should always exercise discipline, self-control, steadfastness and focus on our long-term goals and not just those short-term daily market swings that can eat us alive. We should not let the greed factor come into play always.

For me, Freedom Rocks is more like a gift and that we have to use it properly.  I'll admit, FR is what got me into forex trading, which I've been avoiding for ages due to its 95% failure rate.  Now FR made life a lot easier and safer for forex traders and newbies and as long as you always go easy with your margins and your choice of pairs, FR will always work for you for many years to come (with or without drawdowns).  But again, unexpected major worldwide events such as natural disasters, wars, terrorist acts, geopolitical and economic instability will always move the financial markets in a big way so whether you're into stocks, forex, mutual funds, commodities, etc. etc., you should always have safety parameters in place.

Like it or not, Freedom Rocks is a major shift from traditional forex trading and once again for the benefit of all those who are curious about FR, here's the comparison:

Freedom Rocks:

It is so perfect even for Newbies as the software already does 95% of the job for you so it.....
• Requires NO prior trading experience
• Requires NO research
• NO charts or graphs to read
• Analyzes and calculates your positions and provides you BUY & SELL points
• Not having to really understand and again, it just let the software do 95% of the work for you.
• Practice with live trades in the market, without risking a penny
• No cost to utilize a trading platform for execution of trades.
• Includes step-by-step instructions and screenshots showing what your trades will look like.
• Takes just a few minutes per week to manage a portfolio of any size.
• Provides structure to your trading approach, helping you set up a balanced portfolio & suggesting BUY & SELL points for your positions.
• The Simplicity of a "set it and forget it" type of approach to trading without having to watch multiple charts on my monitor on an ongoing basis.
• Alerts you by text message or email when your trades execute, so there is no need to monitor your progress throughout the day and there is no risk of you missing a trading opportunity.
• Allows you to balance your portfolio to earn varying rates of interest on your account.
• It is a major shift from anything you've ever seen.
• AND more importantly here's what I like most.... it drastically reduce your risk exposure and you're definitely NOT included in the statistical 95% failure rate that traditional forex trading entails (as long as you're doing it correctly, and you're not being so greedy with your margins).

Traditional Forex Trading:

• It takes several months or even years to learn.
• You do the technical and fundamental analysis and hope you always accurately predict the market direction.
• You read multiple charts, graphs and indicators and hope that you are doing it correctly.
• You are glued to your computer and always pray that the market will go your way.
• You always worry and may cause you sleepless nights.
• You are expose to that dreaded statistical 95% failure rate that traditional forex trading entails.

But don't get me wrong,  as I've said traditional forex is really good to learn (which I did) and will of course give you an advantage.  :thumbsup2

 
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 04, 2007, 07:37 AM

Ping - the transfer took me less than 16 hours from when i sent it.  Telegraphic transfer (wire) yesterday at 10am (BDO) and it was in my account when i got home at 3am this morning.

I already put the trades in (3 pairs -Eur , Gbp and Chf)

1.5% drawdown as expected going into the weekend.  

What you have to keep reminding yourself when using FR is to keep that margin nice and low so that you'll always be far from a margin call.  Even without the Yen at my portfolio i used 10% margin just to be safe.  Even in the future when i experience profits from FR ill keep my margin at 15% at the most.






Great!  They got my funds in less than 15 hours too!

Was able to open my live trade, for the first time!  400:1, 3 pairs, 10%

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 04, 2007, 08:58 AM
great job Ping!!!  keep us posted on your results.  
Always go by your planned strategy and never deviate because of emotions.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 04, 2007, 01:50 PM
Quote
Yen slides to new lows

The Yen is by far the weakest major currency in the world, having recently touched an all-time low against the Euro and a four-year low against the USD, despite strong economic fundamentals and a positive current account balance. It has been reported exhaustively that the cause of the Yen weakness are low interest rates, which has spurred investors to borrow cheaply in Yen and invest in higher-yielding currencies. Even domestic Japanese investors are exerting downward pressure on the Yen by shifting funds abroad in the search for yield. The lower the Yen drifts-in complete defiance of economic fundamentals-the greater the risk a sudden reversal poses to global forex markets; at this point, it could be devastating. The Wall Street Journal reports:

    The extent of this kind of trading is notoriously difficult to measure. But, according to a Jan. 26 report by Barclays Capital, the magnitude of yen-funded carry trades “is reaching scary levels” not seen since 1998.



Does this mean we should shy away from JPY, or this is a good chance to trade JPY, hoping it'll comeback in the next couple of days?!


 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: BasicSpot on Feb 04, 2007, 08:34 PM
 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 05, 2007, 03:10 AM
Quote from: Ping
Does this mean we should shy away from JPY, or this is a good chance to trade JPY, hoping it'll comeback in the next couple of days?!


Maybe or maybe not.  IMHO, if you happen to buy the yen at its lowest price and hold onto it until it fully recovers (assuming you're hedge on the most stable pairs, eur/usd & usd/chf ), you will definitely see some big benefits. But the question is we don't know how long will it take for the yen to recover and how long you'll be willing to keep those positions open (which may encounter wild swings along the way and expose you to several small or huge drawdowns before it hits your target).  Remember, although gbp/usd already adds some volatility, the usd/jpy will add more spice to it and give you further excitement due to its higher degree of volatility. Again, usd/jpy got the weakest correlation against those european  pairs and is very upredictable......one day it may be on your side then on the next day it may move against you.  Fyi, usd/jpy's historical correlation against the eur/usd ranges from -0.31 to -0.84 and at times even hits -0.04 to -0.16. With gbp/usd, its correlation ranges from -0.20 to 0.86.  Hope this helps. :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 05, 2007, 01:04 PM
Musta na live results ninyo? Sabay sabay pala kayo halos nagopen
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 05, 2007, 02:25 PM
still have a drawdown of 1-1.5%.  not too worried though as this can easily be covered by the swap rate in less than a week.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 05, 2007, 08:55 PM
just checked again and drawdown is now around 3.5%.  just hit a buy limit on gbp/usd.

Mike, i just upgraded under you.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 05, 2007, 09:06 PM
Mine is -4.0% now, hit a buy limit at GBP/USD too!  ... and going down quite fast!?!  :cry:

@gr8collector, how many ID number was "issued" to you?

@MikeQC, were you able to see my name under you na? gr8collector's?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 05, 2007, 09:42 PM
yup. still went down.  still a comfortable margin left though.  dont worry too much about it Ping.  we'll be okay soon.   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 05, 2007, 11:34 PM
yup pabagsak pa nga rin. my account opened on 1/23 is now down 50% (10000 demo). Another account opened on 1/26 is down 24%. Both accounts use 4 pairs
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 06, 2007, 01:25 AM
Quote from: Ping
Mine is -4.0% now, hit a buy limit at GBP/USD too!  ... and going down quite fast!?!

Hi Ping, I suggest you turn off your computer now and go get some sleep hehe.  That's nothing and you guys will be ok soon.  
Quote
@MikeQC, were you able to see my name under you na? gr8collector's?

Yup I saw your name already.  Gr8collector already signed up but is yet to activate his account.

Quote from: gr8collector
yup. still went down.  still a comfortable margin left though.  dont worry too much about it Ping.  we'll be okay soon.

Yup Euro, GBP and JPY are all currently down but don't worry guys it's not a big deal and it will correct soon. Go get a good night sleep.  :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 06, 2007, 09:30 AM
You are very welcome mate!

Just like I always say to my friends, you will win in this battle if you have
discipline and patience. Seems like you have those qualities so I bet you will
come out as a winner and probably double or triple your investment in no time.

Being said that, no matter what happens just follow the original FR system and dont make any
mistake of playing with it. If you want to experiment then try it on a demo!

Well, goodluck guys and go for the pips!

Quote:
Hi buddy, thanks a lot for sharing your great experiences with Freedom Rocks and really appreciate them.  As what I've been telling everyone here, and just like investing in other forms of investments, we should always exercise discipline, self-control, steadfastness and focus on our long-term goals and not just those short-term daily market swings that can eat us alive. We should not let the greed factor come into play always.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 06, 2007, 08:22 PM


Hi Ping, I suggest you turn off your computer now and go get some sleep hehe.  That's nothing and you guys will be ok soon.  

Yup Euro, GBP and JPY are all currently down but don't worry guys it's not a big deal and it will correct soon. Go get a good night sleep.  :thumbsup2



@MikeQC,

Parang ang bagal mag reply sa email ng FR?

Naka-live ka na?  

Nakaka-inip pala pag live na, kasi maya't maya gusto mong tignan if positive na position mo ...  :rofl:

Anyway, -5% na ang floating loss ko.



yup. still went down.  still a comfortable margin left though.  dont worry too much about it Ping.  we'll be okay soon.   :thumbsup2


Yup, not worried.  Just a bit *tense*   :rant:  hehehehe

How's your trade doing?  Siguro, pareho lang tayo, kasi almost sabay yata tayong nag live?  3pairs, 400:1 10% setting ko.


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 06, 2007, 09:24 PM
drawdown umaabot ng 8-9% on my account.  no worries naman on my part as i only used 10% of margin when i bought the 3 pairs.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 06, 2007, 11:40 PM
not to worry guys. I see a bullish engulfing candle forming on the daily time frame. If price today close higher than yesterday high. Malaki yung chance na aabot na ng 2.000 mark yung G/U in a couple of days. and makakaalis na din tayo sa floating loss.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 07, 2007, 01:32 AM
Ping, Gr8collector, I was down 2% a while ago but now my floating loss is about 3%. Same pairs, 400:1 and 10%.  Both Euro & GBP have taken a beating for the past few weeks already.  Hope they will recover soon.  We'll find out tomorrow and I'm shutting down my computer now.

     
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 07, 2007, 07:48 AM
USD took a beating resulting in a drop in usd/chf.   account still has a floating loss of 9%.  It will no doubt recover though.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 07, 2007, 12:09 PM
the u/j and u/chf is giving me headaches these days but thanks at least to the swap rate.  the weakening of yen is one of the agenda of G7 meeting do you think guys the yen could still recover in a short time?  I've seen an-8k in my account last night, whew! that's 50% down to my current balance.   :coffee: :whistle:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 12:32 PM
up to what level kaya USD/JPY?  Ano ang balita?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 07, 2007, 12:46 PM
Yup the usd/chf took a beating this time and eur/usd has recovered and still is recovering.  Gbp has recovered.  Usd/jpy is still being battered.  My floating loss has a bit recovered.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 07, 2007, 01:02 PM
good thing is the words of US Finance Minster is not so strong towards yen compared to rmb (ren min bi) so i think will be expecting an end to battered yen but that is if it will not break the 120 support level.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 01:38 PM
^Wynn,

Ahem..  I just wanted to make sure I am on the same page here, ok?  :confused:

When USDCHF is taking a beating (rate going down), it means USD is weakening vis-a-vis CHF, right?  Take SHORT position on this pair should be the way to go.

Now, when you say "weakening of yen is one of the agenda of G7 meeting," it means USDJPY is expected to go up, if G7 could have it their way.  And so are other currencies paired to JPY, right?  So, if I understand it correctly, time to go LONG on USDJPY, GBPJPY?

Now USDJPY is hovering on 120.10 to 120.20 in the last 2 hours or so.  Again, exactly what do you mean by "that is if it will not break the 120 resistance level"?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 07, 2007, 01:55 PM
weakening of yen refers to a bearish trend so you go long position for this.  The members of G7 is concerned of contnuous bearish trend of yen so it's one of the agenda in the meeting that means they don't really like to see weak yen.  That 120 is the support level not resistance sorry for for the typo error.  Based on the analysis i received if it will not break that 120 level then will see the end of a battered yen.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 02:00 PM
Oh, thanks for clearing that out!  

But, JPY is still weakening now, 120.48...  too bad, I open trade on the other 3 major pairs only....

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 07, 2007, 02:10 PM
^ok lang sorry also for the confusion caused. not really good in explaining things especially forex technical terms.  btw, isn't a weak yen good for us, i mean to those who have long on uj and still have floating loss?  why it's bad for you :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 04:08 PM
Check this out:
http://www.interbankfx.com/swap_rates.php

I thought FR users of IBFX should be getting a preferential rate?  It seems to be FR are the same rate as the official published rate?


 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 07, 2007, 08:52 PM
Quote
I thought FR users of IBFX should be getting a preferential rate?  It seems to be FR are the same rate as the official published rate?

I thought so too. Or maybe the FR membership drove them to increase their swap rates in order for FR to recommend them?  Anyway, it doesn't matter as long as they maintain those very attractive swap rates.

Ok guys YES my drawdown is finally over and I'm now on the positive territory.  I'm currently $133 up and still is going up up!!!  :yehey:    

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 08:53 PM
Wow!?!   :clap:

How did that happened?!?  Mine is still lingering in -5% floating loss.  :cry:

How about you, gr8collector?!?


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 07, 2007, 08:59 PM
Quote from: Ping
Wow!?!  What happened?!?  Mine is still lingering in -5% floating loss.  How about you, gr8collector?!?

Ok let's compare how much we bought our pairs.  
Here are mines.....
EUR/USD: 1.2968
GBP/USD: 1.9695
USD/CHF: 1.2417
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 09:04 PM
EUR/USD: 1.2966
GBP/USD: 1.9670
USD/CHF: 1.2468  ->  got killed here, I think!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 07, 2007, 09:30 PM
timing also plays a part in profits.  We got in too early Ping.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 07, 2007, 09:31 PM
Quote from: Ping
USD/CHF: 1.2464  ->  got killed here, I think!

Yup our 47 pips difference is HUGE!..  Now I'm further up around $344 close ka na ba to grab some quick profits?   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 09:40 PM
Good for you, MikeQC!

Way to go!  In the meantime, we'll just have to wait for a while, gr8collector!


 :rant:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 07, 2007, 09:44 PM
Quote from: Ping
Good for you, MikeQC!

Way to go!  In the meantime, we'll just have to wait for a while, gr8collector!

Don't worry guys you'll get there soon.  Nauna lang kasi kayo sakin eh.  Dapat pala nag sabay-sabay tayo.  I decided not to close it muna antayin ko na kayo. :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 07, 2007, 09:53 PM
@gr8collector,

Diba na trigger yung buy GU yday, now I assume na trigger naman yung sell GU now.

Why is it instead of closing the open buy GU, nagkaroon ako ng open sell GU?  Tama ba ito?  Since both of them are in a profit, I close both of the positions.   Did I do the right thing?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 07, 2007, 11:04 PM
yep thats the right thing to do Ping.  When you hit a sell limit, youll have to close that sell and the same number of lots in a buy.

also hit a buy limit usd/chf.  man that pair is taking a plunge.  usd weakening alot.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 08, 2007, 04:29 AM
I started a new demo account with $3k equity, 200:1 leverage, 100k lot and 30% margin. This NF demo acct will be just temporary as I'm still observing what will be the out come with my 2 weeks old floating loss at IBFX. Di kasi pwede double decimal lot sa NF, so I'm getting a hard time rounding off the lot sizing, much easier sa IBFX.

Started my 1st trade yesterday 8pm, closed all positions at 3am (7hrs trade) when profit price exceed my target profit (10% of used margin).

That was a 3 pairs hedge. Gained $164.46 (5.5% of $3000)

(http://i84.photobucket.com/albums/k28/krugger21/Statement_392307-krugger21_p01.jpg)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 08, 2007, 06:35 AM
Way to go, sam_1_els!   :yehey:

How's the spread at NF?  Heard they have option for NO SWAP trading?

How's your floating loss today, gr8collector?  You can view my daily progress at "My Forex Blogsite"   :welcome:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 08, 2007, 06:56 AM
^ NF spreads are just about the same as IBFX. GU=4 pips, EU=2 pips and UC=4 pips. I'm not aware of their "no swap" option.

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 08, 2007, 08:29 AM

@gr8collector,

Diba na trigger yung buy GU yday, now I assume na trigger naman yung sell GU now.

Why is it instead of closing the open buy GU, nagkaroon ako ng open sell GU?  Tama ba ito?  Since both of them are in a profit, I close both of the positions.   Did I do the right thing?



I watched the video presentation at FreedomRocks again, it seems to me something is wrong here.  Supposedly, we should SELL a portion of what we have if the value went up, and not SHORT on a new open trade.


 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 08, 2007, 08:51 AM
hehe.  you did the correct thing ping.

it works differently for IBFX.  you have to do it the way you did it.  close a short and close a long position at the same time with the same lots.  

if you use 1world or oanda and you hit a sell limit, it will SELL a portion of the existing long position and not open up another short trade.

IBFX makes you work a little bit more for the extra interest.  :hihi:  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 08, 2007, 09:09 AM
Yeah, thanks!

I just spoke with the LIVE HELP now.  Just have to learn to live with it, huh?  

Anyway, lapit na recover yung positions ko.  You?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 08, 2007, 12:16 PM
 :yehey: Ok People this should be a very good day for us Freedom Rockers!!!  :yehey:

I just turned on my computer and was so amazed to see a gain of a whopping $2,744.00 but greedy me I waited a bit more and didn't close it right away (gusto ko sana i-close ng $3,000 flat hehe), so I it went a bit down so finally I decided to close it at $2,526.69 profit.   So now from an opening of $5,000, my account stands at $7,526.69.   Whooooo ang ganda naman ng araw na toh!!!  :thumbsup2

(http://img296.imageshack.us/img296/2871/image001sz1.png)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 08, 2007, 12:50 PM
WoW! grabeh Mike! that's 50% in 3 days time. Daig mo pa ang banko sentral gumawa ng pera.

My second trade:
started yesterday 3am, closed 12noon (9hrs trade)
3 pairs uli. same settings.
Gained $106 (10% of used margin)
Total gain since started: $270.22 (9% of initial equity)

(http://i84.photobucket.com/albums/k28/krugger21/Statement_392307-krugger21_p01-1.jpg)




Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 08, 2007, 01:06 PM
Langya, kala ko nananaginip lang ako kanina nung nakita ko eh. And that's 3 pairs (EUR/USD, GBP/USD & USD/CHF).  As you can see, my Eur/Usd really shoot up to 1,915.00 and Gbp/Usd to 575.40.  My Usd/Chf naman, negative -233.69 plus the gains pa from the swaps.  

Chamba lang siguro to hehe.   :thumbsup2


Btw, Ping said he might drop by to see us today at Markso's forex school.  See you later Ping.  :)

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 08, 2007, 01:43 PM
@MikeQC,

GREAT!  Real great!   :yehey:

Question, what settings did you use?  Bakit sa akin, 400:1 10% 100k lots, pero decimal lang ang lots bought ko?!?

I'll PM you the lots I bought.

Anyway, right now, breaking even going positive na open trade ko, pero parang masyadong barya, compared to your $2500+ gain!?!\

Sige, see you later!



@gr8collector,

Ok if you PM me the lots you bought too?  Para ma-compare ko.

 :rofl:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 08, 2007, 02:52 PM
thats great news Mike!!  Congratulations!! :yehey: :yehey:  you got in at the correct time.  50% is unheard of.

mine still has a 1-2% drawdown.  

Ping,  the amount of lots you purchase also depends on your balance.  I think all 3 of us used the same pairs, leverage and margin.  But that 50% gain of Mike sure sounds like he used alot more margin than 10%.  can you confirm this Mike?


Posted on: Feb 08, 2007, 02:45 PM
CHF shot up and now am in 1% profit.   how about you Ping?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 08, 2007, 03:00 PM
up 2.5% na me!

how about your allocation, as big as that of MikeQC ba?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 08, 2007, 03:33 PM
what do you mean allocation?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 08, 2007, 05:41 PM
hows your account balance now Ping?  :thumbsup2 :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 08, 2007, 06:10 PM
Closed my current portfolio.  Up by 6.57%  You?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 08, 2007, 07:37 PM
Wow good day today, will try to execute trades later tonight as well!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 08, 2007, 11:27 PM
Closed my 3rd trade for the day with $207 gain (20% of used margin).

Total gain since started: $477.73 (15.9% of initial equity)

(http://i84.photobucket.com/albums/k28/krugger21/Statement_392307-krugger21_FR3.jpg)

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 09, 2007, 01:40 AM
Quote from: Ping
Question, what settings did you use?  Bakit sa akin, 400:1 10% 100k lots, pero decimal lang ang lots bought ko?!?

As we discussed a while ago with Markso, that is because my lot size is only 10k and yours is @100k.
So as a result, the FR's Portfolio Allocator calculated and asked me to buy....
3.83 lots eur/usd
2.74 lots gbp/usd
9.67 lots usd/chf

Btw, thanks for visiting us at Markso's school yesterday.

Quote from: gr8collector
But that 50% gain of Mike sure sounds like he used a lot more margin than 10%.  can you confirm this Mike?

My margin is just same as you guys (10%).  Again my "Lot size" is only 10K. :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 09, 2007, 03:42 AM
Good Job Mike. Kudos to you.
You see, your patience pays off!


 :yehey: Ok People this should be a very good day for us Freedom Rockers!!!  :yehey:

I just turned on my computer and was so amazed to see a gain of a whopping $2,744.00 but greedy me I waited a bit more and didn't close it right away (gusto ko sana i-close ng $3,000 flat hehe), so I it went a bit down so finally I decided to close it at $2,526.69 profit.   So now from an opening of $5,000, my account stands at $7,526.69.   Whooooo ang ganda naman ng araw na toh!!!  :thumbsup2

(http://img296.imageshack.us/img296/2871/image001sz1.png)

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 09, 2007, 06:05 AM
@MikeQC,

Nice meeting you with Mike yesterday.  Had a very enlightening, albeit confusing 1 hour, listening to MACD, SSD, Fibonacci   :rofl:  Kindly say THANK YOU to MarkSo for me again.



Anyway, I requested my IBFX standard account be changed to mini account.  Problem, I have to wait 1-2 working days before it can be done.  In the meantime, I am suggested not to open any trade, so as not to delay the processing.

So, good luck muna sa inyo guys!

Remember, sa mga interested to get a FreedomRocks demo account for free, you can PM me or MikeQC.   :welcome:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 09, 2007, 07:28 AM
Ping.  great to hear you realized profit in your account.  I wasnt able to close my positions early enough so im still in.  -1% currently.

Any particular reason why you are changing your account from Standard to Mini?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 09, 2007, 07:53 AM
^hello

Sayang!  

The reason why I wanted to change to min, is look at the interest gain made by MikeQC.



UPDATE:  My mini account is now activated.  Took them about 12 hours only!  Great job, IBFX!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 09, 2007, 11:47 AM
why will you gain greater interest with mini?  

i just closed my allocation with a 1.5% profit. i may try trading 4 pairs at 10% margin.  or will allocate again 15% 3 pairs.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 09, 2007, 12:05 PM
Technically, why?  I dont really know.   But if you check with FR portfolio allocator, enter the same amount, then see the interest difference between 100k lots, and 10k lots, you'll see a 10X (yes 10 times!) difference in the daily interest to be earned!

I guess it has something to do with the number of lots bought?!?  Or maybe there is a system error?  But comparing our interest with the illustration posted by MikeQC, mas malaki talaga ang interest difference.

On trading 4 pairs, what's your outlook on USDJPY ba?  Di ba medyo mas volatile yun?




Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 09, 2007, 12:13 PM
why will interest be greater with the mini?  The only difference is the decimal point in the lot sizes.  FR command center will compute it the same way.  
Posted on: Feb 09, 2007, 12:09 PM
so when you compute using FR you'll do so using standard 100k account with 2 decimal points?  
sobrang lalaki ang margin used.  have you tried it in a demo to see what your margin will be?

please let me know.
thanks!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 09, 2007, 12:55 PM
Hi guys!
thank you very much sa mga posts nyo dito.  it really helps me a lot.  but i still have some things to verify before i go on with my live account probably next week. I'll start with 10k.  and since my purpose of opening the account is mostly due to the swap interest so i choose the ff: pairs:  gbp/chf,usd/jpy,gbp/jpy& usd/chf.  I've demo these pairs and i think it's ok with me. but there are some that i'm still not so clear of like the swap rates and this mini and standard account.  in my demo accounts, if i'm not wrong, i'm using 200:1 20% setting but when i check the site it says there that standard account is only up to 100:1  :confused: and isn't it that the swap rates in standard account is higher than that of mini accounts, for example in pair usd/jpy:standard-13.75/1 lot
           mini-1.37/lot :confused:

what is the pros & cons of using a standard or a mini account?  

advance many thanks to those who will explain this

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 09, 2007, 01:24 PM
just started a new portfolio using the 4 pairs. standard account, 400:1 10% margin.
keep you guys posted.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 09, 2007, 01:52 PM
@Wynn,

Standard Account = 100k lots
Mini Account = 10k lots
Micro Account = 1k lots

Therefore, in mini accounts, you tend to buy more lots, therefore, more in terms of swap.  The swap trade is based on the number of lots bought.  That's the reason why I requested to use mini instead of standard in IBFX.

BUT, in mini account, you are allowed to buy a maximum of 50 lots only!  So, if your 10k becomes 20k, it'll leave little room for you to buy more.  But, then, you might want to cross the bridge...

Anyway, I noticed you are going to use different pairs than those suggested by FreedomRocks?  Or are you doing it on your own, using traditional forex trading technique?

I opened my 2nd portfolio this 8am, using 400:1, 10%, 3 pairs.  I am now up by 1.5% to 2%.  This time, I used the mini account.

Talked to MikeQC a while ago, he opened trade this 2am, and is now up USDx,xxx again!

We both used FreedomRocks, and it seemed to be going real great!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 09, 2007, 01:56 PM
Quote from: Wynn
and since my purpose of opening the account is mostly due to the swap interest so i choose the ff: pairs:  gbp/chf,usd/jpy,gbp/jpy& usd/chf.


Quote from: Wynn
but when i check the site it says there that standard account is only up to 100:1  Confused and isn't it that the swap rates in standard account is higher than that of mini accounts, for example in pair usd/jpy:standard-13.75/1 lot
           mini-1.37/lot Confused

I guess you are not using Freedom Rocks.  As I've mentioned previously, FR has a special arrangement with IB4X so even though their site shows similar rates to the public, there is a special calculation for FR subscribers based on the lots.  Sorry I can't do the math but that's how it works.

Quote from: Wynn
what is the pros & cons of using a standard or a mini account?  

In the portfolio allocator if you have a standard account you use 100K lots and if a mini account you use a 10K lot.  On both you choose 2 decimal places.  Again their calculations differ, even on the # of lots that it will ask you to buy.  For small accounts of $10K or less, I think it will be advantageous to open a mini instead of standard.  Actually, we Markso explained this to Ping yesterday.    

Wynn, I suggest you drop forex4smarties and sign up a free FR 15 day demo account under Ping.  In that way, you will also be able to help Ping on the marketing side. Btw, we are hitting 2 birds with one stone as we will be aggressively marketing FR here in the Philippines due to its phenomenal success in USA, Canada and everywhere.  Personally, I'm now doing well with my live account but I wouldn't limit myself here because I know that the referral  program of FR is also phenomenal.   :thumbsup2

 
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 09, 2007, 02:08 PM

Personally, I'm now doing well with my live account  


Of all the statement MikeQC said, this is one line you should not believe  :rofl:

He's done extremely well, even MarkSo was surprised!  Imagine, USD2,500 in 3 days, and now, he's on his way to collect another USD X,XXX!


 :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 09, 2007, 02:36 PM

@Wynn,

Standard Account = 100k lots
Mini Account = 10k lots
Micro Account = 1k lots

Therefore, in mini accounts, you tend to buy more lots, therefore, more in terms of swap.  The swap trade is based on the number of lots bought.  That's the reason why I requested to use mini instead of standard in IBFX.


Actually i'm aware of this but i still don't get the point since buying several lots in mini account is just equal to buying 1 lot only in standard account.   :confused:


BUT, in mini account, you are allowed to buy a maximum of 50 lots only!  So, if your 10k becomes 20k, it'll leave little room for you to buy more.  But, then, you might want to cross the bridge...


why you need buy 50 lots when you only need to  buy 5 lots in standard account?


Anyway, I noticed you are going to use different pairs than those suggested by FreedomRocks?  Or are you doing it on your own, using traditional forex trading technique?


yep different pairs and will do it first using traditional fx trading and since i consider my account as  more of a savings deposit so i'm primarily after of the swap rates

 :sorry: i'm still confused as of now :wall:  

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 09, 2007, 02:53 PM
Ok another good day but sorry Ping I didn't wait for our target of $1500, ang tagal kasi eh at baka bumaba na naman sa $600 tulad kanina.  And I have to go to the gym na rin.  :thumbsup2

Here's my final result for today....
Since yesterday, a $1,090.24 gain including the swaps.  
eur/usd: +$401.10
gbp/usd: +$572.60
usd/chf: +$116.54

So my account now stands at $8,718.55.  Looks like I won't be needing to add additional capital anymore to make it a $10,000 account.

(http://img63.imageshack.us/img63/9112/image001uf4.png)


Freedom Rocks is indeed awesome and is making everybody rich!!!  :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 09, 2007, 03:02 PM


I guess you are not using Freedom Rocks.  As I've mentioned previously, FR has a special arrangement with IB4X so even though their site shows similar rates to the public, there is a special calculation for FR subscribers based on the lots.  Sorry I can't do the math but that's how it works.

Yeah i don't use FR right now but the what i'm just clarifying here is the difference with their live and demo accounts
actually i already open a mini account but it's just that i'm still a bit confused of the pros & cons of the 2


Wynn, I suggest you drop forex4smarties and sign up a free FR 15 day demo account under Ping.  In that way, you will also be able to help Ping on the marketing side. Btw, we are hitting 2 birds with one stone as we will be aggressively marketing FR here in the Philippines due to its phenomenal success in USA, Canada and everywhere.  Personally, I'm now doing well with my live account but I wouldn't limit myself here because I know that the referral  program of FR is also phenomenal.   :thumbsup2  


I am only using FFS right now since more or less the concept of trading is the same with FR, right?  and will consider using either of the 2 once i achieved the results i want and once i fully understand how they really works.  For now i'll train myself with the traditional forex and hope to combine it next time with this two programs.  
 
Anyway thank you very much guys, GOOD LUCK to all of US! LETS RAKE TOGETHER $$$$ in FOREX :yehey:
 


ps:  mike i just computed your interest in u/chf pair and i come up with 19.79/lot (not sure if this is right).... god this is awesome!  for normal standard accounts it's only 9.90/lot
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 09, 2007, 03:08 PM


Actually i'm aware of this but i still don't get the point since buying several lots in mini account is just equal to buying 1 lot only in standard account. ? :confused:

why you need buy 50 lots when you only need to ?buy 5 lots in standard account?



Precisely my question before.

But definitely, swap rates are based on the number of lots.   Plus the fact IBFX has a special arrangement for FR clients.  Thus, the bigger swap rate you observed.

But, they limit the number of max lots that can be bought using mini account, like I said earlier.




yep different pairs and will do it first using traditional fx trading and since i consider my account as ?more of a savings deposit so i'm primarily after of the swap rates

 :sorry: i'm still confused as of now :wall: ?


Wow, you are going to hedge using traditional trading.  Di ba medyo delikado nang kaunti? Anyway, good luck. Hope we all do well here.  Anyway, anytime you feel like going FR, give us a "yell!"




@MIkeQC,

Another awesome trade! Congrats!   :yehey:  Bakit ako, still hanging on less than 1% gain now ...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 09, 2007, 03:21 PM
@MikeQC,

I noticed your entry points are not much diff from my entry points. ?The lots bought are not that much different too. ?But why is it I am only up by 2% when you closed your positions?

Your entry points:
EU 1.3036
GU 1.9580
UC 1.2467

My entry points:
EU 1.3041
GU 1.9588
UC 1.2462

I noticed you hit several buy/sell limits, malaki ba ang na generate na income from it? ?Of course you entered a good 6 hours ahead of me.

Hmmm... is there some setting I forgot to do? ?400:1, 10%, mini account, 3 pairs?


UPDATE:  Euro and Gbp is falling ... guess I am in for another long wait ...  good thing my swap is now set to gain more ...


 :zzz:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 09, 2007, 03:26 PM
Quote from: Wynn
I am only using FFS right now since more or less the concept of trading is the same with FR, right?  and will consider using either of the 2 once i achieved the results i want and once i fully understand how they really works.

That's why I advise to you to at least try the free 15-day demo that FR is offering so you will know the difference.  Why give yourself a hard time with FFS?  I have tried them both.  Although they got similar concept, I'm telling you their calculations still differ and I noticed those grids go out of balance at times specially during long drawdowns.  And yes it's good to learn traditional forex trading but it will be much easier and effective if you will train on a brick & mortar school such as Markso's forex school.  Ping visited us yesterday and he can attest to how really effective and easy to learn on a brick & mortar school.  Self-training or self-studying traditional forex training is very hard and will take several months or even years.  Markso will do it for you in only 2 weeks.  And of course Freedom Rocks made it a lot easier for all forex traders and newbies alike.  Just think about this way.... Why did the President of the largest Forex group and seasoned traders in Canada shift to the Freedom Rocks methodology?  and why are those forex trading veterans in USA into FR?  And also why is Freedom Rocks being sought after by those large veteran forex brokers in USA?   Btw, a new large Swiss forex broker also enlisted with FR called "TradeX SwissAG".  You may also want to try them.   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Feb 09, 2007, 04:26 PM
^MikeQC,

FR is very promising.. I've just downloaded the files and I'm analyzing them. Also, I've heard the Q&A's on the site and it is very nice to hear some positive feedback. I was wondering how was your trades going? Did you buy EUR/USD and USD/CHF.. I think those pairs are the best correlation partners.

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: buddy on Feb 10, 2007, 05:01 AM
Hi Wynn,

Understanding leverage can answer a lot of your confusion. I'll explain it to you clearly
so you understand how it works.

Trading from Mini account is the same as trading from Standard Account in terms of risk
management. Yes, they are the same, the only advantage of high leverage(mini) is that
you can magnify your profits but the trade of is, you can magnify your loss too.
Okay let me give you an example:
Initial Deposit= $10000
Trader buys 5 Lots (mini)  eur/usd ; 1 pip move is equal to $5

Leverage = 400:1 = $25 X 5 = $125. After 100 pips move the Trader makes $500. (Risking 1.25% of Capital)
Leverage = 200:1 = $50 X 5 = $250. After 100 pips move the Trader makes $500. (Risking 2.5% of Capital)
Leverage = 100:1 = $100 X 5 = $500. After 100 pips move the Trader makes $500. (Risking 5% of Capital)
Leverage = 50:1 =  $200 X 5 = $1000. After 100 pips move the Trader makes $500. (Risking 10% of Capital)

As you can see, for only $125(400:1), you can gain the same profit in comparison with other low leverage account.  
That's cool!

The only problem lies when you try to increase your risk because you think you have a lot of
buying power. Here is an example:

Leverage = 400:1 = 40. That is, 10% ?risk? will be 40 lots or 400K. Pip value = $40.00.
Leverage = 200:1 = 20. That is, 10% ?risk? will be 20 lots or 200K. Pip value = $20.00
Leverage = 100:1 = 10. That is, 10% ?risk? will be 10 lots or 100K. Pip value = $10.00
Leverage = 50:1 =   5. That is, 10% ?risk? will be 5 lots or 50K.   Pip value = $5.00

So if you have a 400:1 IBFX account, you trade 10%($1000) of your initial deposit, when the market
moves 100 pips in your favor then you will gain $4,000 because every pip move is $40.00 (40 Lots)
but If it turns out the other way then you will lose same amount easily.
You see, It does amplify your profit and loss.

On the otherhand, if you have 50:1 leverage then your profit will only be $500 but you will
minimize your loss to the same amount.

In essence, it is good to have a high leverage account because you can control more money but
you have to remember that you can increase your risk too.

If you want to win in forex then you have to be always in the game!
Learn how to use your high leverage to your own advantage.

~~~~~~~~~~~~~~~~
Swap price for mini or standard is proportionally the same. The discrepancy happens because you are limited
to the amount of lots you can buy in a standard account(100k). Everything is proportional here, if you
have $10,000 account(mini) and you are trading 10% of it then you will have more margin for market
movements compared to an account with $5,000 deposit. If you want to have the same risk as the $5000 account
then you can have that too and double your interest or swap earnings.

IBFX Swap Rate per 1 lot
EUR/USD
Standard Account = -$6.55
Mini Account = -$0.65

USD/CHF
Standard Account = $9.90
Mini Account = $0.99

Quote:
There that standard account is only up to 100:1 and isn't it that the swap rates in standard
account is higher than that of mini accounts, for example in pair usd/jpy:standard-13.75/1 lot
mini-1.37/lot. what is the pros & cons of using a standard or a mini account?  

A.They are the same. In standard account you are limited to low leverage account so that means your
risk is low but you cannot control more money and your buying power is limited. Mini account is very
high risk if you will use most of your margin but it's a good thing to have if you know how money
management works. With high leverage, you can buy more lots with a lot of cushions for market movements.
1 Standard Lot = $1,300 (long EUR/USD) with 1:100 => swap -6.55 => $10 per pip
1 mini Lot = $130 (long EUR/USD) with 1:100 => swap -0.655 => $1 per pip

You see they are proportionally the same.

Quote:
Actually i'm aware of this but i still don't get the point since buying several lots in mini account is just equal to
buying 1 lot only in standard account.

A.You are right they are the same but you dont have the luxury of high leverage on a standard account and
you have to put in more money ($1,300) to buy 1 lot of one currency. Note: $1,300 applies to EURUSD only,
other currencies will have higher price.

Quote:
why do you need to buy 50 lots when you only need to buy 5 lots in standard account?

A. It's also the same and you can do that if you have enough margin to cover the drawdown. You usually
trade Standard accounts if you have more than $20,000. Leverage plays a big role again here so you
will not blow up your account in secs.

I would recommend you study the behavior of the following currencies you like:
gbp/chf,usd/jpy,gbp/jpy& usd/chf. I'm afraid that you would lose all of your $10,000
if you dont trade wisely. All those currencies are very volatile and the correlation will
get whack easily. Look at it this way, the curriencies you want have different personalities
so I would advise you to study them for a month in a demo. Always remember this,
what works now will not work tomorrow. It is easy to double your money in 1 week but it will
be very hard to do it consistently that is why money management is a very important concept
in any trading vehicles.

Goodluck to you and go for the pips!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 10, 2007, 07:48 AM
Thanks, buddy!   :clap:  That was quite an explanation.  

It's a good thing I am using FR.  At least I know, I am hedged quite safely with EURUSD, USDCHF, GBPUSD, and USDJPY, with the use of their Portfolio Manager.  Although right now, I am using the first 3 major pairs first.  Kasi medyo mas volatile yung USDJPY.


Quote from: Wynn
I'll start with 10k.  and since my purpose of opening the account is mostly due to the swap interest ...

mike i just computed your interest in u/chf pair and i come up with 19.79/lot (not sure if this is right).... god this is awesome!  for normal standard accounts it's only 9.90/lot



Wynn, just like you, I intend to make gains primarily from the swap interest, too.  Medyo conservative kasi ako.  One of the reasons I signed up FreedomRocks, is to take advantage of the swap rate being given by IBFX.

Look at it this way, if we were able to make "only" 10% a month, compound it monthly, you'll be surprised, net gain will be an impressive 159% !!  That means, your USD10k will become USD26K after 12 months!

Of course, if I can make what MikeQC did last week, I would not complain... an astounding 70% gain in one week!?!

Considering USD TD is about 4-5% annually, aba, you'll be making double in just one month.  Medyo safe ka pa, dahil sa FR, calculated na talaga ang hedge mo.   Think about it, USD10k is lot  (at least for me) to risk.  

Sabi nga ni buddy, "It is easy to double your money in 1 week but it will be very hard to do it consistently"  

At any rate, whatever you plan to pursue in trading, good luck... sa atin lahat!   :yehey:

Actually, this is what I plan to do  - conservatively, I'll try to lock in a 1% gain DAILY, until I get 10% for a month.  Then I'll go more aggresive, by "waiting" for larger gains before I close the trade.   Let's see, if that is possible ...  Do it monthly, and who knows, I just might be 159% richer at the end of 12 months, that is at least!


 :rofl:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 10, 2007, 01:14 PM
Quote
^MikeQC,

FR is very promising.. I've just downloaded the files and I'm analyzing them. Also, I've heard the Q&A's on the site and it is very nice to hear some positive feedback. I was wondering how was your trades going? Did you buy EUR/USD and USD/CHF.. I think those pairs are the best correlation partners.

4x

Hi 4x, so far our trades are doing quite well.  As you probably may have seen it already, my gains this week is indeed a lot more than what I've expected.  Yes the EUR/USD and USD/CHF will always be included in the pairs that I trade because they are the most tightly correlated and give out the most stability.  For extra volatility, I also include either GBP/USD or USD/JPY from time to time depending on their current rates.  If I see that their rates are already too high I don't include them because it may go out of balance specially if there's a sudden significant downtrend and this may take a while to recover.

Quote from: buddy
I would recommend you study the behavior of the following currencies you like:
gbp/chf,usd/jpy,gbp/jpy& usd/chf. I'm afraid that you would lose all of your $10,000
if you dont trade wisely. All those currencies are very volatile and the correlation will
get whack easily.

Hi buddy, that was quite an explanation and many many thanks for being so diligent enough with that "must be" painstaking long post.  We really appreciate your contributions here.  Just keep it going buddy. :thanks:  And yes I strongly agree that these pairs mentioned by Wynn (gbp/chf,usd/jpy,gbp/jpy) are very volatile and trading these pairs will no longer be considered an FR methodology due to the absence of a stable correlation.  I would strongly advise that everyone should just stick to those 4 pairs that are included and recommended by the FR allocator: EUR/USD ; GBP/USD ; USD/CHF & USD/JPY.   :thumbsup2

 
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 10, 2007, 01:27 PM
Got this from another board:

"The interest rates calculated will be close to correct if you are allocating a 100K standard account. If it is a 10K mini account you need to take 10%. Example, if it says $125 daily interest it would actually be about $12.50. Remember it is only an approximate value."


This finally answers my question re the confusion between the swap rate I got and the swap rate calculated by the FR Portfolio Allocator.  Anyway, it is finally "fixed" by FR now.  

Besides, the swap rate I got when using the standard account is almost the same as the swap rate I got when using mini account, as it should be.   :thumbsup2

Now, I still can't figure out how MikeQC got that much lot of swap interest in his spectacular USD2,500 gain last week (screenshot at page 5 of this thread)?   :confused:

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 10, 2007, 01:35 PM
IBFX UPDATE:

:clap:

The IBFX Rocks EA has finally released v1.27 for live trading!

Now, I can set my "daily" target profit at 1% (or maybe 2%  :rofl:), and let it run.  I just have to figure out how to set the "alarm" on to inform me, so I can open new portfolio again.  

Now, that is what "set and forget" really means ...

Can't wait 'til I close out this current portfolio.  I still have a floating loss of 3.98% at the moment.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 10, 2007, 02:44 PM
how do you go about using this EA?  has anyone tried it on their live accounts yet?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 10, 2007, 03:45 PM
I dont think there's much change from the last demo to the live version.  Ka-la-launch lang ata ng version just before the market closed.


 :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Feb 10, 2007, 04:10 PM

how do you go about using this EA?  has anyone tried it on their live accounts yet?


Hi gr8collector,

Ping is right there's not much difference between live and demo. The difference lies on how the money is traded either "demo" or "live" and we also mustn't forget: our feelings involved which is very high when you're trading on "Live Accounts" than "Demos". ;)

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 10, 2007, 07:14 PM
Ping, just remember when using the IBFX Rocks EA, you have to turn on your PC 24/5.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 10, 2007, 07:29 PM
Really?!?  I thought the trade will go thru even if your are not logged in?  Where did you read that?   :gagged:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 10, 2007, 07:44 PM
^ doon sa IBFX Rocks forum na pinupuntahan mo. Trade/pending orders will not execute if your PC is off....
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 10, 2007, 07:58 PM
No worries, they have added a new feature.  Here it is, verbatim:

IBFX-Rocks Advisor 1.27 has a new function.

There is a new file in the scripts section of the navigator window. It is called "IBFX-Rocks Manual Orders". This offers a way to enter manual orders that the Advisor will monitor as if it was a trade it placed. This is important because the Adviosr will not recognize any normally placed manual trades.

If there is a reason to place a manual trade for the Advisor to monitor and track. You have to use the IBFX-Rocks manual orders script.

To use the script drag and drop the script on a chart. Click the "common" tab be sure to check "allow live trading". Click the inputs tab and enter in the currency pair to trade (for mini accounts place a small "m" at the end of the pair), enter buy or sell and enter the amount of lots to trade. Press OK and it will enter the trade.


 :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 11, 2007, 01:59 AM
^ Ping, Dale (IBFX Employee) just answered your question. Here's what he said:

Quote

Remember that this EA only runs on your computer. If your computer is off or the program is not running on a chart.....then its not running.

Dale
 


It was also mentioned twice on the instruction file.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 11, 2007, 02:40 AM
Something to good to read while the market is close....

While trading the markets, there are times when the little child within us shouts: "I don't want to wait. I want it now." But sustained profitability takes time. In his book, "Enhancing Trader Performance, " Dr. Brett Steenbarger argues that superior performance develops in three stages: Initiation, Development, and Mastery. Many novice traders dream of mastering the markets and achieving extreme wealth; they want to make huge profits now, but it is necessary to go through the initiation and development stages before achieving mastery. Why is it necessary to recognize the stage you are in? Eventual success in a challenging endeavor, such as trading, requires motivation. And cultivating the proper motivation requires that one set specific, realistic goals. Setting specific goals is essential for achieving high levels of performance. They allow for direct feedback. You know exactly where you stand and what you need to do next. Setting goals that are unrealistic usually leads to disappointment. For example, you may aim for a 20% return on your trading account, but if that is not a realistic objective, you end up failing, feeling disappointed, and giving up. If you set more
realistic goals, however, you feel satisfied when you achieve them. You feel optimistic and ready to tackle the next goal in earnest. By realistically acknowledging where you are at in your stage of development as a trader, you can set goals that are consistent with your abilities, achieve them, and feel you are making steady progress.

For the entirety of this article go to:

www.innerworth. com :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 11, 2007, 03:36 AM
^ Good read Mike.  :clap:

BTW, back to the IBFX Rocks EA. It is not like any other EA that runs continuesly even when you shut off your PC or close the MT4 platform. You will surely missed those pending orders even when the price reaches your target entry. That's the downside of it.

But the advantage is, you won't charge with extra spread if a pending order is executed, unlike when you trade it manually with limit orders.

Pwede pa rin ito maging advantage kung dalawa ang PC mo sa bahay.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 11, 2007, 09:09 PM
Another Recommended Broker by Freedom Rocks!

We're pleased to introduce our newest recommended broker, Trade X.  Trade X is based in Switzerland.  Currently, customers residing in the United States  cannot trade on their platform.  We will have links available on the Command Center over the weekend.  To visit their website and download the trading platform, please go to http://www.Tradexfx.com/FreedomRocks.

Once again, this only proves that FR is being sought after by Brokers. This is simply the power of "numbers count" which FR commands due to its large membership that keeps growing by the day.   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 12, 2007, 12:29 PM
Ayos a, may bagong broker, musta results niyo? Mukhang magandang run last week, di man lang ako nakapagtrade buong linggo hehe :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 12, 2007, 12:33 PM
@gr8collector,

How's your 4 pairs?! ?Laki ng gain ng USDJPY, close mo na position mo?

Sa 3 pairs ko, still down ng -3%, a small improvement from Friday's close of -4%



Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 12, 2007, 01:22 PM
wala pa.  up only .5% as of now
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 12, 2007, 05:28 PM
Ok Team Freedom Rocks!

Interbank FX invites you to attend an online training.

This training will cover the installation and use of the IBFX-Rocks Advisor.  This Advisor is used in trading the FreedomRocks system.

Please read the following instructions to prepare you to attend the conference.  You may log in to the conference 10-15 minutes before the conference starts.  Availability is first come first serve, and is limited to the first 100 logged into the room.

 

Title: IBFX-Rocks Advisor / Training
Time s & Date s:

Monday    2/12/2007   6:00 PM PST,   9:00 PM EST

Tuesday    2/13/2007   8:00 AM PST, 11:00 AM EST

Tuesday    2/13/2007   4:00 PM PST,   7:00 PM EST

Thursday   2/15/2007   4:00 PM PST,   7:00 PM EST

Saturday   2/17/2007   8:00 AM PST,  11:00 AM EST

You can log into the conference 10-15 minutes early.  To Log in go to the link below and follow instructions.

Log-in URL: http://www.instantpresenter.com/interbankfx1

Remember...to open a LIVE or a Demo account with InterbankFX, visit:  http://www.openmyfxaccount.com

Hints and Tips:

If this is your first time attending an online presentation of this kind, we recommend that you take the system test at http://www.instantpresenter.com/system_test

This will make sure that your computer is ready to go.

1. We recommend using a headset in which the microphone and speakers that have been tested to make sure that they work properly.

2. Turn the headset on before you enter the presentation.

In the rare case that you have any technical difficulties viewing the online presentation, please email support@instantpresenter.com and the good folks at Instant Presenter will be more than happy to assist you.
--
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 12, 2007, 06:59 PM
drawdown again as USD gains strength.  will close my current account once it hits 2% profit.  Then reallocate when market goes down.  Timing also plays a key role getting in and out to maximize profits.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 12, 2007, 07:03 PM
Exactly.  I'd been wanting to get in since this morning but I saw the downtrend of both eur & gbp so I decided to wait.  Now I'm in but still heading down.  

Ok just checking now..... I'm finally on the positive side about $233.  Usd/chf very bullish :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 12, 2007, 07:11 PM
what pairs are you trading?  margin?  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 12, 2007, 07:26 PM
same 3 pairs 10%.  Now on $610 range
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 12, 2007, 08:02 PM
how much is in your account?  i also use 10% margin but your gain/pip seems to alot more than mine.  Are you using the exact figures that the allocator comes up with?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 12, 2007, 08:37 PM
Here's the link for pip calculator, http://www.interbankfx.com/pip_calculator.php.

I just verified that my EURUSD's pip is indeed $1 per pip.  

How about yours, MikeQC and gr8collector?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 12, 2007, 09:24 PM
i think if you have the USD as the second currency in a pair and you are using standard lots, a one pip move is $1.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 12, 2007, 11:25 PM
Just found out my account is indeed standard after all (and been aggressively using 10k lot calculations in the Portfolio Allocator) hehe.  Gosh sineswerte pa din ako. Anyway here are my results for today.....
Eur/Usd: -2,726.50
Gbp/Usd: -475.00
Usd/Chf: +4,854.93
Total One Day Gain of: $1,653.53

My account now stands at $10,371.98 from last week's opening of only $5,000 (a whopping 100% return in only 1 week). Btw, I was already told by Carole Noxon that FR does not allow us to post our live trade screenshots on any forums so I guess we have to refrain from doing so from now on.  Just can't help but post this awesome result anyway. I think we have already proven enough how effective Freedom Rocks really is.

(http://img172.imageshack.us/img172/2131/image001qf4.png)

 :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 13, 2007, 02:07 AM
Grabe Mike that's awesome. Ganda ng trades mo this week!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 13, 2007, 03:54 AM
Mike, congratz! Request to change your standard account to mini before you place your next trade. I tried to PM you but your inbox is full.

BTW guys, I tried the FR's EA, may bug pa ata yung live version. I set may target profit at $200, $150 start trailing and $50 trail. Nag automatic close lahat ng positions with +$126 gain (without any pending positions triggered). Parang mali ata yung ginawa ng EA.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 13, 2007, 06:29 AM

But the advantage is, you won't charge with extra spread if a pending order is executed, unlike when you trade it manually with limit orders.

Pwede pa rin ito maging advantage kung dalawa ang PC mo sa bahay.



Question:

1.  What do you mean, "wont be charged extra spread"?

2.  Why 2 PCs?  Alternately open them?


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 13, 2007, 07:19 AM

Mike, congratz! Request to change your standard account to mini before you place your next trade. I tried to PM you but your inbox is full.

BTW guys, I tried the FR's EA, may bug pa ata yung live version. I set may target profit at $200, $150 start trailing and $50 trail. Nag automatic close lahat ng positions with +$126 gain (without any pending positions triggered). Parang mali ata yung ginawa ng EA.


ok yun EA pag ganun.  just means that profit reached $176 and then dropped $50 to $126.  




Question:

1.  What do you mean, "wont be charged extra spread"?

2.  Why 2 PCs?  Alternately open them?





using the EA when a sell limit hits you dont get charged an extra spread like you will when you placed the sell limit manually.  When placing the sell limit manually and it hits then what you are actually doing is opening up another short position.  After which you'll close the same amount of lots of the same pair both long and short.  Using the EA, when a sell limit hits it doesnt open a new short position but instead just closes a portion of your existing open long position.

Using 2 pcs para one PC will always have the platform up and running and the other PC for whatever else you need to be doing.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 13, 2007, 07:21 AM
^ I don't think it reaches $176. tinutukan ko kasi eh, and the market is quiet at that time, lumipat lang ako sa ibang window for a few seconds pagbalik ko sa platform, nag-close na yung position with just $126 gain.

Manually trading with FR:
- If a pending limits order is triggered, a new position/trade will be opened. You'll pay for the spread of that position.

While trading with FR EA:
- If a pending order (take note: not limit order) is triggered, there will be no new position opened, instead it will just add or deduct a portion of your lot size on your previous/existing opened position. So, you won't have to pay for the spread. That's the beauty of it.

For 2 PCs. yes, alternately and simultaneously. No, not for doing other stuff with your extra PC. para di lang mag-overheat yung PC kung iisa lang yun.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 13, 2007, 07:53 AM
Can we use the EA then, to open and close new trades, instead of manually doing it?  Or we have to have open trades already?  

Can we use the EA to close the whole trade (manually opened), instead of just portion of it?

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 13, 2007, 08:24 AM
No, you can't close "manually opened" trade with that EA. But you can use the scripts that I gave you.

Pag EA EA lang, Pag manual manual lang. di pwedeng pagsabayin. While using the EA, if you want to change anything, kailangan idaan mo sa EA advisor.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 13, 2007, 08:51 AM
just a correction.  When using the EA when a sell limit hits, no new trades are opened.  A portion of your existing buy lots will be closed.

When a buy limit hits, a new trade will be opened.  It will not add lots to your already existing buy position because these 2 buys will have different prices.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 13, 2007, 08:52 AM
Ok, fair enuf  :rofl:

Here's a situation, I buy 10 lots of USDJPY (only) using EA.  Now, can I use the EA pending order to close the whole 10 lots of USDJPY later?

Will that situation create any "savings" for me, in terms of paying extra spreads?

Kasi, alam ko, when you open a position, say USDJPY bid 121.67 ask 121.70.  When you buy, you pay for 121.70.  But immediately, when you want to sell, you sell it at 121.67 right?

I dont understand how EA can "go around" this spreads thing, and create some savings for us?


 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 13, 2007, 09:04 AM
EA will save you spreads only when sell limit hits.  This is because you dont need to open up another position only to close it again after.  konti lang masasave dito per allocation but over a period of 2-3 years it all adds up.

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 13, 2007, 10:24 AM
Mike ok nga yung profit mo last week, ingat lang sa standard and mini, you got a message sa ym :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 13, 2007, 10:30 AM
Guys again thank you for all your kind responses here, i won't enumerate or quote here anymore because i'm too lazy to do that :rofl:  Btw, my account application in ibfx is still not ok, maybe it took them time to translate my documents to english :rofl: but anyway still have my demo accounts to practice more so waiting is just ok.  Happy trading to everyone!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 13, 2007, 09:42 PM
OMG, medyo pangit ang trading today...  :rant:

Anyway, tomorrow will be another day ...   :zzz:

Hopefully paggising ko, positive na uli positions ko!!


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 14, 2007, 02:41 AM
It was a good trading day for me. :harhar: Timing the entry is important to maximize your earning potential and minimize the drawdown period/percentage.

Special thanks to lehboy para sa pag share ng indicators. Together with my existing indis, I was able to let the profit run til exhustion, instead of my original 10% used margin target.

I started a demo account again, this time using IBFX, para may 2 digit decimal (unlike NF).
Initial equity: $500
10K lot
400:1 leverage
30% margin
Hedge 2 pairs

I gained almost 30% of my used margin today, that's 6.9% ($34.50) of my original equity ($500).

Alam ko pinagbawal na ng FR ang pag post ng screenshot ng results, but telling the results above without prove, mahirap paniwalaan. so, here's the prove (anyway di pa naman ako nag subscribe sa FR eh, kaya abswelto ang kaso) :hihi::

(http://i84.photobucket.com/albums/k28/krugger21/Statement_1375657-krugger21_p01.jpg)

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 14, 2007, 02:51 AM
Great work sam! Also trying to time my entries, and look for the most probable trades that will go my way.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 14, 2007, 04:32 AM
This is how my platform looks like after adding all the indis.  :rofl: pretty messy huh, but this is what inside an super ATM machine suppose to look like. Sa mga di pa naka pag-try ng FR, hindi po ganito ka complicated ang FR software, I just made it complicated to maximize my profits.

I entered on the first red arrow on the right and exit my trade on the red arrow on the left. Masmaganda sana kung sa 23.6 level ng fibonacci yung enter. Di lang ako nakapag-antay.

(http://i84.photobucket.com/albums/k28/krugger21/chart4.gif)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Feb 14, 2007, 07:31 AM
^sam_1_els,

Quote

This is how my platform looks like after adding all the indis.  ROFL pretty messy huh, but this is what inside an super ATM machine suppose to look like.


Grabe yung ATM machine mo parang signal!!!  :rofl:

Quote

I entered on the first red arrow on the right and exit my trade on the red arrow on the left. Masmaganda sana kung sa 23.6 level ng fibonacci yung enter. Di lang ako nakapag-antay.


Manual ba yan? hindi ka ba gumamit sa EA ng FR?

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 14, 2007, 08:15 AM
^ manual lang boss 4x, hindi ako comfortable sa auto pilot eh.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 14, 2007, 08:28 PM
Currently back on track with my trading with FR

Primarily changed my trading strategy from non-timing of entries to one with proper timing via technical analysis using Fibonacci support and resistance levels as well as oscillators to time the trades.

2/12-2/13 Eur-usd / usd-chf 400:1 10% margin - gained 5.4% (closed trade)
2/13-2/14 gbp-usd / usd-chf 400:1 10 margin - floating profit - 5.5% (open trade)

@sam, more or less my screen looks the same. I'm looking at the crosspairs to time my entries and exits.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 14, 2007, 09:33 PM

This is how my platform looks like after adding all the indis.  :rofl: pretty messy huh, but this is what inside an super ATM machine suppose to look like. Sa mga di pa naka pag-try ng FR, hindi po ganito ka complicated ang FR software, I just made it complicated to maximize my profits.

I entered on the first red arrow on the right and exit my trade on the red arrow on the left. Masmaganda sana kung sa 23.6 level ng fibonacci yung enter. Di lang ako nakapag-antay.

(http://i84.photobucket.com/albums/k28/krugger21/chart4.gif)


nice Sam grabe yung atm machine mo ah :thumbsup2, pede tanong pano i combine yung 3 settings nang stoch indicator mo in to 1 window?

Btw, my application with IBFX was approved already and i made a deposit also today so hope next week maka start na rin ako.  :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 14, 2007, 09:51 PM
if you wired the funds today it should reach your IBFX account by tomorrow.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 14, 2007, 10:00 PM
^ - Attach the first Stoch to the chart window.
   - On the navigator, look for the Stoch indi, click, drag and drop it at the 1st Stoch window.
   - Set the parameters, change color, you may also add levels.
   - Do the same for the 3rd set of Stoch.
   - After that, sign up under me. :hihi:

Alam mo ba gamitin yan?

@lehboy, should be the same. Ikaw nagturo sa akin nyan eh. :harhar:

As of this moment. My trade is up 8% of my $534 equity (still open), 32% of my used margin.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 14, 2007, 10:17 PM
^thanks :thumbsup2, pero di ata pede sya sa mt3, mt4 lang ata pede sya, anyway, di ko masyado familiar ang function sa mt4 so still doing some trial  n error  here

i'll be using mt3 muna but once ok na ko sa mt4 i'll transfer na lang,

sign up under you, ok ba sign up lang ha :rofl:

@g8collector plan to rest muna this week para ready na for the battle next week  :rofl:

GOOD LUCK TRADING TO ALL OF US!  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 14, 2007, 10:24 PM
^ why did you use MT3? uninstall mo nalang yan tapos install ka ng MT4 bago ka mag live. :fight1:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 14, 2007, 10:31 PM
ok na sa kin muna tong mt3, next na pag ok na ko sa mt4, importante ma doble ko ang 10k in one month :rofl:       sana :hihi:  just like my demo 100% up in just 8 & 14 days, parang atm machine lang :rofl:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 14, 2007, 11:23 PM
Wynn, ano gamit mo palang settings and what pairs?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 14, 2007, 11:28 PM
^i'm using the crazy pairs, gbp/jpy, gbp/chf, usd/chf & usd/jpy  in 200:1 20% setting,
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 15, 2007, 01:06 AM
^ you mean you hedge gbp/jpy against gbp/chf using FR? o gbp/usd against usd/jpy and gbp/usd against usd/chf?

Just closed my second trade. equity balance now up 20.4% in 2 days.

(http://i84.photobucket.com/albums/k28/krugger21/Statement_1375657-krugger21_p01-1.jpg)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 15, 2007, 06:20 AM
Whew!  I must have entered the market in the worst possible time!   :rant:

I still have my Portfolio 2 and Portfolio 3 open with floating losses hovering between -3% to -5%!  Good thing with my last 3 Portfolios - 4, 5 and 6, I was able to lock in another 7.04%!

As per IBFX's time, my trades were entered:
Portfolio 2:  Feb 8, 23:48  (3pairs)
Portfolio 3:  Feb12, 04:57 (4pairs)

May mga kasabay ba ako during these period of time?  Naka recover na ba positions nyo?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 15, 2007, 07:43 AM
hi Ping,

when my porfolio #1 was down 2 days ago around 9% i opened up another allocation in the same account using the same 4 pairs at 10% margin.  I was basically trading at 20% margin, 4 pairs, 400:1 leverage.  

Just closed both portfolios/allocations for a net 5% profit.  

Did you open all 3 portfolios under one account?  what margins are you using? What is your current margin level?  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 15, 2007, 07:51 AM
Portfolio 2 -  3 pairs, 400:1, 10% margin of full amount of deposit
Portfolio 3 -  4 pairs, 400:1, 20% margin of partial amount of deposit

Basically, I did the same for Portfolios 4, 5 and 6.  I used several combination of pairs, but 400:1, 20% margin of partial amount of deposit.  I was able to closed the last 3 portfolios already.  But still the other 2 are open, with a combined floating loss of about 4.5% now.

Good thing you are able to close your position now with a postive 5%.  Guess I will before the market closes for this weekend.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 15, 2007, 07:53 AM
do you run 2 or more portfolios in one account at the same time?  what is your current margin level?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 15, 2007, 07:59 AM
Margin level is still a safe (or is it?) 682% now.

Unfortunately, I am running the 2 portfolios in one account only right now.  A little dangerous, and ill-advised I supposed.

But, after I closed this 2 portfolios out (I am now hoping for a break even na lang, as I have already reached my target for the month of February), I plan to separate my funds into 2 accounts:

Acct 1:  75% will be used for 2 pairs only, EU-UC, 400:1, 10%
Acct 2:  25% will be used for 3-4 pairs, 400:1, 20%

Any suggestions?  How about you?  I think you also opened the 2 portfolios simulteanously in one account only?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 15, 2007, 08:43 AM
yup.  i opened 2 portfolios at the same time.  both 10% 4 pairs.   I opened the 2nd when the 1st hit a 8-9% drawdown 2 days ago.  Closed both this morning for a 5% profit.  The triple swap on wednesday really helped out
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 15, 2007, 11:55 AM
I have a few positions that are still down (opened on 2/12). Actually haven't tried na ipagsama and different portfolios under one account, I always reallocate and close the previous portfolio before I open a new one. Hindi ba medyo magulo?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 15, 2007, 12:02 PM
magulo rin ng konti.  Next time i do this ill write down on paper all the trades done on each portfolio to lessen the confusion.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 15, 2007, 12:09 PM
Yes, talagang magulo pag sama sama na yung mga pending orders, sell/buy limit orders na na-trigger from 2 different portfolios.   :rofl:

And yes, makakatulong yung if you'll have a notebook to manually track your transactions.


@lehboy, pareho pala tayong may "aging" open trades na.  And the way market is behaving lately, seems like we have to wait a little longer...  :rant:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 15, 2007, 12:14 PM
To all the Trainees here and even the Experts,

Finally, there are NEW worksheets in the FreedomRocks Command Center!  When you login to the FreedomRocks command center, http://www.freedomrocks.com/commandcenter  and click on the Training Webinars page.  Scroll down to the bottom of the page and you will find two sets of worksheets.  The first set is to be used when you are setting up your initial portfolio and your second set is used when you are resetting your portfolio (after one of your buy/sell limits has been executed).  I HIGHLY recommend that you print out copies of those two worksheets for the broker you are using.  :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Feb 15, 2007, 02:48 PM
update ko lang dito ibfx received already my funding this morning, really fast :thumbsup2 and the service of ibfx is also really commendable.  I won't start trading however today might wait till next week but will go on with my demo.  

Btw today is not really good day for those hedging with usd/jpy pair :coffee: but no worries anyway since the daily swap rate is  :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 15, 2007, 05:28 PM
hows your account doing now Ping?  naka recover na usd/jpy.

BTW, I opened another portfolio so i currently have 2 portfolios open using the same account.  3 pairs 10% .  didnt include the yen though.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 15, 2007, 08:06 PM
Ha?  Did USDJPY recover?  Negative pa rin ako eh  :rant:

Maybe next week.  GU, bumagsak din...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 15, 2007, 08:57 PM
if i had more funds ill open up a third portfolio.  I applied for another account and will wire some funds tomorrow.
Dont worry Ping.  you'll get into positive territory soon enough.  just need patience talaga.


bagsak usd/chf and gbp/usd.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 15, 2007, 09:43 PM
para saan?  you want to average out?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 15, 2007, 10:35 PM
Guys, I'm sure hope napagaralan nyo na yang ginagawa nyong "2 set of trade in same account" sa demo. Good luck sa live trade.

UPDATE: Total gained in my initial equity, 24.8%.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 16, 2007, 01:30 AM
Hmm, di ba medyo delikado at magulo na magopen ng sabay sabay na portfolio? The correlated amount will change in my opinion, at hindi na balanse, but I might be wrong.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 16, 2007, 01:41 AM

Guys, I'm sure hope napagaralan nyo na yang ginagawa nyong "2 set of trade in same account" sa demo. Good luck sa live trade.

UPDATE: Total gained in my initial equity, 24.8%.



nice one!!!  what parameters are you using?  pairs traded?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 16, 2007, 01:53 AM
USD/CHF News:
New York February 15.
Following the range bottom break around 1.2370 the dollar bears were howling and growling and hungry for red meat, but what started as a range break has "morphed" into range extension, picking up the Jan 8 1.2330 low as the new base. So far the bounce looks more like a dead cat bounce, with spot holding around 1.2355 but the unexpected bids around the 1.2335-40 area have frustrated the bears as it looked like they had a straight run at penetrating into the 1.22s for the first time since the beginning of the year. Even more worrisome is the fact that on the hourly study the 50% Fibo of a wider range - the Dec 19 low 1.2110 and the Jan 31 1.2575 high - comes in around 1.2340-45; basically where we bottomed this morning. The next Fibo target on that range is 1.2290, just below the high of Jan 3, and techies will probably view this as an interim target. Gold is off $1.20 per oz at $670.50 for the front contract, and the recent news from N. Korea, holding out the possibility
of a longer term agreement has slightly eased global tensions, and takes a little of the gleam off the Franc. Inter-bank players and techies alike are hoping for a close below 1.2290 so that they can finally get into a trending market. Peter.Wadkins@thomson.com /rs
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 16, 2007, 01:55 AM




nice one!!!  what parameters are you using?  pairs traded?


 $500 initial equity, 10k lot, 400:1 leverage, 30% margin, eur/usd and usd/chf.

I'm trying gbp/usd and usd/chf right now. masmalaki yung draw down.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 16, 2007, 06:45 AM
Yes, in light of the abnormal drawdown of the major currency pairs, medyo "out of balance" na yata ang FR hedging allocation?  I am experiencing a huge drawdown in my portfolios:  One with -27.72%, and another with -21.20% drawdowns.   Margin level still stands at a safe (or is it?) 511%.

Let's hope the major pairs will stage a comeback in the next few days.  I dont think the swap interest earning alone will easily overcome this huge drawdown...  :confused:

People, how's your trading, live and demo?





when my porfolio #1 was down 2 days ago around 9% i opened up another allocation in the same account using the same 4 pairs at 10% margin.  I was basically trading at 20% margin, 4 pairs, 400:1 leverage.  

Just closed both portfolios/allocations for a net 5% profit.  


@gr8collector,

When you opened your 2nd portfolio to average it out, did you use the same allocation?  Or you referback to FR for a new set of allocation for the same set of 4 pairs?



bagsak usd/chf and gbp/usd.


Kaya nga eh.  Kelan kaya makaka recover ito?



USD/CHF News:
New York February 15.
Following the range bottom break around 1.2370  ...


@MikeQC,

Welcome back!  I thought you went on a vacation to Maldives ...  :rofl:

Anyway, what does that mean?  Talked to MarkSo re the recent meltdown of all major currencies?



Just like gr9collector says... patience ... while waiting, it gives me time to go back to the gym (maybe next month?)


 :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 16, 2007, 10:44 AM
Experiencing a drawdown as well. Pero not as huge. Medyo bagsak talaga these past few days...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 16, 2007, 11:21 AM
I think I made some wrong calculations.? Anyway, current combined drawdown stands at -33.77%, and margin level at 515%.

Not as huge as I posted a while ago, but still a big drawdown, nevertheless.  :cry:

Guess I just have to wait and sit it out, while I collect interest payments...

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 16, 2007, 11:46 AM
same here ping.  sobrang bumagsak ang mga pairs.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 16, 2007, 12:01 PM
Let's just wait and sit it out, hopefully within the next two days next week bumalik na lahat...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 16, 2007, 12:06 PM
Quote from: Ping
Welcome back! ?I thought you went on a vacation to Maldives ... ?

Anyway, what does that mean? ?Talked to MarkSo re the recent meltdown of all major currencies?


Take it easy guys, that's the way it is hindi all the time panalo tayo and sometimes we have to give drawdowns a chance to reign hehe. ?I'm not worried at all as I've seen this over and over and we're no stranger to this....I can even turn off my computer now and go back next week or month and still laugh all the way to the bank. ?Don't be too emotional about it and just be patient. ?We all know that what goes down will always go up and the important thing is we have an awful lot of space for these drawdowns. ?

Quote from: gr8collector
same here ping. ?sobrang bumagsak ang mga pairs.

gr8collector, it's just the usd/chf that we're watching closely here so not to worry. ?:thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 16, 2007, 02:27 PM
USDJPY also crushed down to 119.xx level

Who's worried?!?? ?:rant: :cry: :confused:?

No, I am not!? :rofl:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 16, 2007, 03:17 PM
Quote from: Ping
USDJPY also crushed down to 119.xx level

Who's worried?!?? ?
No, I am not!?


So So So naka 4 pairs ka pala or kayo???  Yup we all know that usd/jpy is very volatile that's why hanggang 3 pairs lang ako.  Ok sit tight na lang coz you're on a bumpy ride for now. Most likely next week na siguro ang recovery nyan and don't you worry coz super layo ka sa margin call.  :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 17, 2007, 09:13 AM
Weekend update:

So far, not much action, total portfolio's still floating loss of about 35%

The good news is the swap rate keeps on adding up!   :thumbsup2


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 18, 2007, 10:55 PM
Interbank FX invites you to attend an online training.

This training will cover the installation and use of the IBFX-Rocks Advisor.  This Advisor is used in trading the FreedomRocks system.

Please read the following instructions to prepare you to attend the conference.  You may log in to the conference 10-15 minutes before the conference starts.  Availability is first come first serve, and is limited to the first 100 logged into the room.


Title: IBFX-Rocks Advisor / Training
 

Times & Dates:

           

Tuesday        2/20/2007   8:00 AM PST, 11:00 AM EST

Wednesday   2/21/2007   6:00 PM PST,  9:00 PM EST

 

You can log into the conference 10-15 minutes early.  To Log in go to the link below and follow instructions.

Log-in URL: http://www.instantpresenter.com/interbankfx1  (just log in on the scheduled time and date)

Hints and Tips:

If this is your first time attending an online presentation of this kind, we recommend that you take the system test at http://www.instantpresenter.com/system_test



This will make sure that your computer is ready to go.

1. We recommend using a headset in which the microphone and speakers that have been tested to make sure that they work properly.

2. Turn the headset on before you enter the presentation.

 

In the rare case that you have any technical difficulties viewing the online presentation, please email support@instantpresenter.com and we will be more than happy to assist you.

 

Best regards,


Interbank FX Support

www.interbankfx.com

Direct: 866-468-3739
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 19, 2007, 07:38 AM
just opened up a third portfolio this morning.  4 pairs 10%.  all 3 portfolios are currently all open.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 19, 2007, 07:46 AM
It's not going to be fun monitoring them, man .. I tell you  :rofl:

Anyway, good luck, hope USDCHF will finally go up this week.


 :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 19, 2007, 07:54 AM
thanks Ping.  here's to profits to all!!!  :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 20, 2007, 02:37 AM
Quote from: Ping
It's not going to be fun monitoring them, man .. I tell you  :rofl:
Anyway, good luck, hope USDCHF will finally go up this week.


What do you do when your profits are down??

Here's what we tell people who are concerned about their accounts being so negative.

Well, first of all, I want them to realize that they may not be in as bad a situation as they think.  Remember, even when your profit/loss is negative, you are STILL earning interest on LEVERAGED money.

To put this into perspective, print out an account summary and look at the SWAP you've been paid since your trade has been running.  Then, divide that amount by the number of days your account has been open.  Take that result and multiply it by 365.  What you'll get is the amount of INTEREST you would earn on your account in a year.  It's probably a pretty impressive amount!  Point out that they are earning that whether or not their profit/loss is positive or negative.

Next, have them look at their free margin (if they are using MetaTrader) or their equity (if they are using GFT).  Remind them that they have that amount of money still left as a cushion in their account (if using GFT, it's the equity minus the Margin Req).

Remember, this is a LONG TERM strategy and it's going to have its ups and downs.  If you want to enjoy the profits, you have to be willing to weather the draw-downs.

Also, remember that, as a group, we are MUCH more successful than ANY other trading system that is available.  If they would like to attempt to trade "traditionally", remind them that 95% of the people who go that route lose ALL of their money.  We are SO fortunate to have this system available to us.  There are MANY people right now who are singing the blues because they guessed wrong.  We're just riding the wave!

Keep things in perspective and don't panic.  I keep remembering last year (May, June) when some FR veterans' profit/loss was negative for SIX WEEKS and then in July, they DOUBLED their MONEY.  It's hard to complain about that!  :rofl:



Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 20, 2007, 09:42 AM
just closed my third portfolio at 2.5% profit.  

Mike, where did you find out about the EA tutorial?  this webinar will only focus on the EA correct?  any password that is needed to enter the room?
thanks!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 20, 2007, 10:12 AM
just closed all my positions with 2 portfolios open. made around 2% profit.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 20, 2007, 11:42 AM

just closed my third portfolio at 2.5% profit.  

Mike, where did you find out about the EA tutorial?  this webinar will only focus on the EA correct?  any password that is needed to enter the room?
thanks!




Nice, how about the first 2?  Negative pa rin ako, pero yung 3rd portfolio ko, lapit na POSITIVE

Asan yung EA tutorial?

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 20, 2007, 01:36 PM
market did pick up today.  sana tuloy tuloy na to!!!
ill open up another portfolio this time using the EA.  ill take profit at 3% with a little trail.


2:26PM.  opened up another portfolio.  3 pairs (didnt include JPY) 10% using IBFX Rocks v.1.28.  set the profit trail at 4% with a 1% trail.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 20, 2007, 02:21 PM
If you guys have EURO and CHF positions, and its at positive right now. Better to get out of the market NOW!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 20, 2007, 02:40 PM
^ouch!!  i just got in!!  What did you find out Sam?  I still have 2 portfolios that are still down double digits.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 20, 2007, 03:01 PM
^ eur/chf 1 hour chart shows reversal, with a pin bar and bearish engulfing candle. If you have any positions na eur/usd or usd/chf, maaapektohan yun. So its better to close it with a little profit than close it with a little loss, pero kung nasa floating loss naman talaga, then hayaan mo na, just wait for it to turn back nalang.

I gained $32 this morning with my initial $528 equity, it was just a 3-4 hrs trade, good thing I saw the reversal and bail out.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 20, 2007, 03:16 PM
This morning I also got out of my trades, parang di pa ganun kaconducive to enter again.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Feb 20, 2007, 10:12 PM
^Sam_1_els,

Quote

eur/chf 1 hour chart shows reversal, with a pin bar and bearish engulfing candle. If you have any positions na eur/usd or usd/chf, maaapektohan yun. So its better to close it with a little profit than close it with a little loss, pero kung nasa floating loss naman talaga, then hayaan mo na, just wait for it to turn back nalang.


FR Strategy is giving it a little more time.. a couple of months at least right now my E/U and U/C open positions are on their eleventh day and it's earning interest. I think in order to maximize the FR Strategy it should be closed after 30 days gaining more interest than closing it immediately. Right now if I were to close the positions it would gain me 15% profit already starting at $100 capital. If it is closed 30 days after, it may reach at 30% profit. Let's think about it.

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 20, 2007, 11:17 PM
^ with all due respect sir 4x. I don't rely much on interest that I might earned, there's a bigger fish to catch which is the price differential of the hedged pairs.

When you said? "If it is closed 30 days after, it may reach at 30% profit", there's a powerful word there, but what if on the 30th day, you are experiencing a large drawdown, what good is the interest there? it will only help cushion your drawdown.

While in my advice above. You could just bagged your 15% profit and wait for the next perfect wave. The important here is not to be greedy, its better to win a little than to loss a little.

Take a look at the screenshot below. It is my first live trade. When I saw price will reverse, I bagged my 6.2%, that's 2 and a half hour trade. If I did't close those positions this morning, I will experiencing a drawdown right now and earning only a few interest everyday.

(http://i84.photobucket.com/albums/k28/krugger21/Statement_22048-HarwinPun_p01.jpg)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 21, 2007, 02:48 AM
Nice one Harwin, you really are a full-blooded freedom rocker now hehe.  :yehey:

Quote from: gr8collector
Mike, where did you find out about the EA tutorial?  this webinar will only focus on the EA correct?  any password that is needed to enter the room?
thanks!

Gosh really sorry for my late reply. I hope you guys were able to join the webinar coz I think there's no password needed. I've been out the whole day and evening coz my best friend in NY is currently in town and you know, gotta take him to gimik spots.  So my trades are mostly on "auto-pilot" the whole day hehe... and once again you know that's the beauty of employing Freedom Rocks methodology.  :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 21, 2007, 06:03 AM
^MikeQC,

Are you using the EA for IBFX-Rocks v1.28?


UPDATE:  My Portfolios have improved a lot.  It now has a total floating loss of 20% na lang.  What I am doing is try to "scalp" a few pips here and there, with the help of sam_1_els, while we are chatting online to finalize some details for our PMTFC.


 :thumbsup2



Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Feb 21, 2007, 08:05 AM
^sam_1_els,

I see what you mean because I know the pairs have a slight difference, well, you also have a nice strategy. But in order for you to make profit also of the swaps, you might just close it a little longer, that is if you want to. God bless you! with your trading strategy and for the Forex Club! :clap:

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 21, 2007, 01:48 PM
^ No adding of pressure pleasezzzz brotha. :hihi: Ayaw ko na sana i-post last night yung trade results ko. But I felt oblige to back up my claim, when I shouted wolf yesterday morning, there is indeed a wolf.

Just like anyone here, I also do experience long period of drawdown. And with FR and God all mighty guiding me all through out, I were able to surpassed and hope I will still be able to....
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 21, 2007, 02:09 PM
BOJ raised interest rate.  carry trade using USD/JPY is still very attractive though.  Im just hoping that this rate change is already factored into the yen price already

2/21 3:48pm.  took 3% profit with portfolio #3.  will most probably open up another portfolio so i can get in for the triple swap.

2/21 9:51pm.  took 1% profit with portfolio #1.  portfolio #2 still open with a 5% drawdown.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 22, 2007, 11:54 AM
set my buy/sell limits tighter.  about half the pips as FR computed.  Will try to take more advantage of grid trading.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 22, 2007, 01:28 PM
gr8collector, kamusta trades? the market is pretty quiet today
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 22, 2007, 02:05 PM
yup.  not much volatility.  waiting till the other 2 markets open
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 22, 2007, 02:57 PM
^ ok na leverage mo?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 22, 2007, 03:44 PM
Sayang just pulled out earlier from gbp-usd usd-chf, biglang nagspike ngayon :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Feb 22, 2007, 09:30 PM
@sam_1_els,

I'm trying your strategy with FR in my demo account and will be ready to deposit into my live account to try it for myself, if ever i have more than three profit successes in it. Anyway, I'm just trying to experience different results and have tried almost every strategy and finding one that works that is not also stressfull. I've already closed my lots and re-opened again. I gathered 11% profit last night with 50% of equity traded! Nice one!

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 22, 2007, 09:46 PM
Nice trade! congrats 4x.

I got another EA, its for "close all positions when target floating profit amount is reached". Just like any other EA, it only works if your PC in on and metatrader is running. This is not the EA I ask Patrick of IBFX to create. PM me if you want it.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 23, 2007, 12:10 AM

@sam_1_els,

I'm trying your strategy with FR in my demo account and will be ready to deposit into my live account to try it for myself, if ever i have more than three profit successes in it. Anyway, I'm just trying to experience different results and have tried almost every strategy and finding one that works that is not also stressfull. I've already closed my lots and re-opened again. I gathered 11% profit last night with 50% of equity traded! Nice one!

4x


what strategy is this?  50% of equity traded?  isnt that too risky for comfort?
great work by the way!!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 23, 2007, 12:45 PM
Ok a god day today.  My floating losses have finally rebounded and currently up 2% and again swaps are really great.  FR Rocks!!!

And here's a very good analysis that I wanna share with you guys that I got from the largest forex traders group in Canada.  Hope you like it.....


"I ran an analysis on the EUR/USD and USD/CHF this weekend. If I get a chance in the next day or so I will run one on the GBP/USD and USD/CHF as well. You may find these results interesting and reassuring.

I played around with some historical Forex data yesterday and would like to share the results with you. I think that you will find them pretty interesting.

I accessed data for the EUR/USD and the USD/CHF. I used 1HR data for the past 10,000 hours. I used the opening price for each 1HR data point. I assumed an initial investment of $10,000 on Dec 28th 2005 (the date was random and just happens to be 10,000 hours ago from Friday). I used a 400-1 leverage, 15% margin and a profit goal of 5% with a trailing stop of $100. I also assumed that I would immediately reallocate once I took my profits.

It turns out that over the 13.5 months I would have hit my profit target 29 times. Using the trailing stop method is nice because on 3/23/2006 I would have made 4.66% in 2 days but on 9/13/2006 I would have made 13.30% in 7 days. The bottom line is that an original investment of $10,000 on Dec 28, 2005 grew to $52,979 on Feb 17th 2007.

That being said, the ride was not always an easy one. Upon making the original investment my account would have immediately turned south and it took 46 days before I hit my first profit target making 5.66% or $567. 3 days after that I would have grabbed 6.27% ($650), 1 day later on 2/17/2006 I would have grabbed 8.3% ($911). The amazing thing is that during that initial 46 day wait my account went down as much as 30.2%....but still came back!

The toughest ride would have occurred between 4/3/2006 and 7/27/2006 it took 115 days before I hit my profit target and grabbed 7.26% ($1290). During that 115 days the account lost as much as 58.32% but still came roaring back.

There were 13 times where I would have hit my 5% target in 7 days or less. My best stretch would have occurred on 9/13/2006 catching a sweet 13.3% in 7 days ($2881). Dollar wise 1/18/2007 would have been a pretty sweet day grabbing $4972 in 15 days (11.51%).

So I guess the moral to the story is ..the market goes up and the market goes down but as a long term investment strategy the FreedomRocks system Rocks! Oh yeah, and here's the crazy part..I did not even account for all the times where we would have triggered our pending orders, adding to our positions when the price was low and then selling the additional lots when the price went up..which it always did! This would have resulted in the account growing to considerably more than $52,979.

I am very glad that I ran this analysis. I have a very itchy trigger finger and have been programmed over time to cut my losses and run for the hills. With this system I just watch my account and smile knowing that sweet profits are right around the bend.

Stayed tuned for the GBP results."

Paul   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 23, 2007, 01:20 PM
Mike, didn't you experienced swap not credited for the past 2 days with IBFX?

Ano yung 5% target ni Paul? 5% of his balance equity? I thought it's impossible to make a back test with FR system, since hedge sya?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Feb 23, 2007, 10:25 PM
@sam_1_els,

Quote
I got another EA, its for "close all positions when target floating profit amount is reached". Just like any other EA, it only works if your PC in on and metatrader is running. This is not the EA I ask Patrick of IBFX to create. PM me if you want it.


I see that's great!

@gr8collector,

Quote
what strategy is this?  50% of equity traded?  isnt that too risky for comfort?
great work by the way!!


FR strategy.. it's a little risky but provided it's a hedged trade it will not reach margin call if ever it's on the negative side and the profits are also limited.

4x


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 23, 2007, 10:44 PM
Quote from: sam_1_els
Mike, didn't you experienced swap not credited for the past 2 days with IBFX?

Yup.  Some of IBFX accounts did not get the swap interest due Wednesday. I called customer support and they stated they did have some issues and my account was finally corrected within 24 hrs. IBFX Customer Support was very good and easy to work with. The information I got was that the accounts that did not get the swap interest should contact IBFX to get the swap interest credit to their account.

Quote
Ano yung 5% target ni Paul? 5% of his balance equity? I thought it's impossible to make a back test with FR system, since hedge sya?

Yes I guess he's referring to 5% of his equity.   He accessed a forex historical data of both the eur/usd and usd/chf and I don't how he did it.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 24, 2007, 06:04 PM
Pansin ko lang, pag open ng position sa FR, why is it that it seems to go negative (after considering the spreads, of course) more often and stay longer than it goes positive, kahit maliit then dahan dahang umakyat?

Or is it just me?

 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 24, 2007, 10:12 PM
Ping, depende rin ata sa timing ng pasok mo e. when you go in usually at the peak of the cross pairs, it really tends to go down kaagad even considering the spreads. But when you enter usually at support levels (looking at the crosspairs), there's lesser chance for you to experience long drawdowns.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 25, 2007, 10:57 AM
Hep Guys, I would like to inform you that one of our most ardent supporters of the Freedom Rocks system, has come up with an ingenious way to improve on the system. This keen adaptation is being tested as we speak. We hope to have some reasonable performance evaluation by March 1st.  The system is so simple and logical in its adaptation, many of you will be stunned why you did not think of it first... It will reduce draw-downs and increase profit.. STAY TUNED!  :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 25, 2007, 04:36 PM
Wow, cant wait to see that MikeQC!

Imagine, a turbo-charged FreedomRocks!?!   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 27, 2007, 06:58 PM
guys, how are your trades?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 27, 2007, 08:44 PM
@lehboy,

down 30% as of this moment ... open trade last Friday.... you?



@MikeQC,

Where's your news!?!   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 27, 2007, 09:33 PM
chf and yen are rallying pretty hard!  lets hope for a correction soon.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 27, 2007, 10:12 PM
mine also in negative since 2/21. I heard, the rumor increase of interest rate of Japanese on the 20th has been pricing in, kaya not good a good time para sa mga naghe-hedge.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 28, 2007, 04:58 AM
any news on what caused tis meltdown?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 28, 2007, 06:08 AM
Whoa!    :rant:

Woke up and see my drawdown close to 50%!?!  Is this true?!?



 :cry:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 28, 2007, 07:23 AM
unfortunately its very, very real!!  stocks have plunged worldwide.  this may have been a cause.  Or maybe some big guys know of a interest rate hike next month by the BOJ.  

In any case i really do hope that we can get some of this back soon.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 28, 2007, 07:28 AM
 ... and it looks like more bad news coming out for USD re its annual GDP report ...  we better hold on tight for a bumpy ride ...     :rant:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 28, 2007, 07:33 AM
hedged naman tayo sa USD.  positive news should be boosting price of the cable though.  
at any rate im holding on to my positions and will see if FR will work through this.  swap rates are very minimal in offsetting the gravity of the drawdown.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 28, 2007, 07:36 AM
me too ....

but it seems to be USDCHF is going down faster than EURUSD and GBPUSD going up?!?


 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 28, 2007, 07:56 AM
thats because of the huge strengthening of the carry currencies...  YEN and CHF.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Feb 28, 2007, 08:48 AM
wow woke up also, same results as you ping...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: healthypinoy on Feb 28, 2007, 09:17 AM
I hope that when the PMT Forex Club starts trading, maging maganda na ang takbo ng market.

There are many movements in the market today as per international news.  Naapektuhan talaga ng matindi ang US stock market.  Baka magdomino effect sa ibang market... :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Feb 28, 2007, 12:33 PM
Yes it has affected both the usd/chf and usd/jpy big time, so right now I'm on a huge floating loss. Good thing, I don't have usd/jpy coz it would have made it worst.  Anyway, it's ok because the swaps will gradually cushion it as it slowly corrects in the coming days or week(s).  :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Feb 28, 2007, 02:11 PM
There are few reasons why we are experiencing huge drawdown right now.

Currency markets reacted to the correction in equity markets by dumping carry trades which led to the large rise in the yen.

A long overdue correction from US dollar high swing.

Continuing concerns over Iran's nuclear program played a major part in the jump in both the yen and Swiss franc overnight, with the yen benefiting from both selling in the US dollar/yen and euro/yen trades.

Reaction of investors over the BOJ rate hike this coming month. I think big guys are liquidating their gains from the US dollar and transferring it to yen.

Though we hedges currency pairs, market abnormality moves will slightly affect our trades. Better to wait for a corrections before entering again.




Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Feb 28, 2007, 05:22 PM
I hope we have scratched the bottom already, and time for it to correct now.  It (my floating loss) has been bouncing from 45% to around 50% all day now.  Hopefully, with bias towards recovering.   :thumbsup2

Well, just last 2 weeks, we hit a floating loss of around 38%, but was able to get back pretty good after 2 weeks or so.  This time, we hope it'll be as fast too.  I opened 3 pairs (w/o JPY) last Feb 23 pala.  How about other traders here, live and demo?





Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Feb 28, 2007, 06:07 PM
anyone here have a robot to predict a good time to enter?  there is one over at the FFS forum that was launched by the admin but i cant seem to get it to work on my computer.  it wont let you enter trades if the pairs you are planning on trading are in a downtrend.  If the robot calculates that pairs are in an uptrend then it will let you place trades on the currency pairs involved.

the robot also has a re-enter function which automatically places trades back into play after you have taken profit.  

sounds great but , like i said, i cant get it to function properly.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 01, 2007, 03:15 PM
hmmm... robot?  how I wish it could predict the current meltdown in the future.   :confused:

Anyway, floating loss still ranging between 45% to just-a-little-above 50% for the last 2 trading days.  What does this mean?  Consolidation stage na ba?  Is the support level strong now, that it'll be a matter of days (hours, or weeks) before it bounces upward again?

After successive bad news for USD, there seems to be a high-impact somewhat good news for USD later at 9:30pm, as posted in Forex Factory (http://forexfactory.com/)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 01, 2007, 10:14 PM
Letter from Jim Marshall-Platinum Associate


Hello fellow FreedomRocks members-

What a day FreedomRocks had yesterday!! Wow! We are so lucky to be
trading our forex accounts the FreedomRocks way!

I can't count the number of times over the months - in the year that
I've been working with this system - that people have asked me,
"What's the worst case scenario with my account if I trade using the
FreedomRocks system?" Folks, yesterday was "worst case scenario". and
FreedomRocks traders have survived to trade another day!!

Dave Brubaker and I spoke to John Garianno yesterday evening and what
an enlightening conversation it was! (You definitely want to be on
Thursday's forex Q&A call which John will be running this week.) John
told us that yesterday was a day of "catastrophic proportions" in the
forex market (indeed in the entire global financial marketplace) - and
that FreedomRocks showed its true colors on one of the ugliest forex
days in recent history. John stayed in touch with our brokers all
afternoon to gauge how FreedomRocks trading accounts were doing and
told us that a very, very small percentage of FR members accounts
(less than 1%) were margined out yesterday - AND that in each of these
cases the accounts were not following recommended FreedomRocks trading
patterns. When John researched each of the very few accounts that were
margined out he found that they were all trading either at high risk
levels, or even that they were no longer using FreedomRocks the way it
was designed to be used. (For instance; some were trading the Yen at
20%+ margin; others had added the New Zealand dollar/Yen combination
to their portfolio; still others were holding extra long positions on
the GBP, etc.) In short, each of the very few margined accounts was an
aberration, not a conservatively traded FreedomRocks portfolio!

The wonderful news here is that all the rest of us have survived to
trade another day, and this is exactly what the FreedomRocks system is
designed to allow us to do! Now that, friends - is really GREAT NEWS!!
We truly do have in FreedomRocks the very best forex trading system in
the entire world!

Yesterday was a global financial aberration; a "worst case scenario."
Can anyone predict when these will happen? Of course not. Does this
mean we give up trading altogether and crawl back into our caves? Of
course not. Given the unpredictability of the global market I
personally feel very confident that we are offering the best product
for trading the forex available anywhere today!

As John said at the conclusion of our phone conversation yesterday
evening -- after outlining to us how FreedomRocks had prevailed
through a worst case scenario day, "Remember this day in the future -
that you were here, and that you survived it. We'll have stories to
tell about this!"

Onward and forward; and congratulations! You have survived to trade
another day! In two weeks or a month, or two months, when your account
has recovered its full value and you are marching forward into profit
once again - remember that you survived yesterday!

You'll have one heck of a story to tell about FreedomRocks!!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 01, 2007, 10:16 PM
Dear Freedom Rocks Members:

As noted earlier, here is Grant Mathews' adaptation of the FR system.
A number of us have been using this system in one form or another
with much success. I will allow you some time to digest this post and
will ask both Grant and my good friend Kevin C., to respond to your
inquiries about it.

Regards,
Elias



Freedom Rocks & Dollar Cost Averaging

As you know I've been involved with Freedom Rocks since the beginning
of 2006 and so have had ample time to study exactly what happens when
using the Freedom Rocks system on a day to day basis. Here is an
important observation...

The most important "extra" thing I've learned and implemented along
the way is to "dollar cost average" my way in to the market. While
the Freedom Rocks system will tell you to go buy your total holdings
all at once I prefer to do it in stages. Here is an example.

Let's say you have an account of $10K. Normally, you'd go in to the
Portfolio Allocator, which is located in your Freedom Rocks Command
Centre, and enter the following information (this is an example and
just like in our live account we only use the EUR/USD & USD/CHF pairs
because they have the closest reciprocal relationship, meaning lowest
risk):

Portfolio amount ($10K)

Leverage (400:1)

Lot size (100k)

Decimal points (2)

Margin percentage (10)

EUR/USD (1.3000 - current ASK price for the EUR/USD)

USD/CHF (1.2375 - current ASK price for the USD/CHF)

When you click Allocate Portfolio it will tell you to go buy 1.71
lots ($171,000) of the EUR/USD and 1.79 lots ($179,000) of the
USD/CHF. This is an example of buying all your holdings at once and
is what the Freedom Rocks system says to do. I don't do that and
here's why.

Take a blank piece of paper and draw a straight line in the middle of
the page from top to bottom. Now draw a continuous S shaped line to
the right and left of that straight line. It will look something like
this:



The biggest observation (and insight) I've had studying the Freedom
Rocks system is the account value will fluctuate between positive and
negative, especially when you first get in to the market. And believe
me that fluctuation can be dramatic! and even be as much as 30% of
your account value. The main problem here is you don't know where on
that S line you are when coming in to the market.

While fluctuations are nothing to be overly concerned about as long
as you are using a reasonable margin, like 10% for example, it can
certainly be unsettling, especially if you are new to Freedom Rocks
and are thinking your account value (equity) is going to go straight
up and you happen to buy all your positions while on the right side
of the S line. Ha ha ha. But why is it nothing to be overly concerned
about? Because with the Freedom Rocks system you are buying "hedged"
positions. In other words, while the EUR/USD goes up, the USD/CHF
goes down, and the reverse is true as well. This means the overall
margin remains fairly stable, or at least within acceptable
boundaries as long as you didn't overextend yourself, and with the
currency fluctuations the Pending Order triggers will go off and over
time your account will grow. We also know, just like the S line
shows, the account equity will come around to positive territory.
It's simply a matter of time so relax if that has happened to you.
And also remember part of this equation is the fact you will be
earning interest on your holdings, and this also contributes to
growing your account value.

Having said that, what I have discovered is there is a better way to
get in the market. Instead of buying your whole portfolio all at once
you should dollar cost average your way in to the market. So here is
how that would work in the Portfolio Allocator by splitting your
entry into 5 chunks rather than only one.

Portfolio amount ($10K)

Leverage (400:1)

Lot size (100k)

Decimal points (2)

Margin percentage (2) * Note we changed the margin to 2% rather than
the 10% used in the previous example

EUR/USD (1.3000 - current ASK price for the EUR/USD)

USD/CHF (1.2375 - current ASK price for the USD/CHF)

When you click Allocate Portfolio it will tell you to go buy 0.35
lots ($35,000) of the EUR/USD and 0.37 lots ($37,000) of the USD/CHF.
This is an example of buying 2% of your holdings at a time. As you
can see by the diagram above if you spread these purchases out over
time you will dollar cost average your way in to the market. The net
effect is they will average out closer to the main line which goes
from top to bottom, thereby you will see less of a negative impact on
your account and you will see a positive account value sooner.

Be sure to double check with the Freedom Rocks Portfolio Allocator
each time before making the purchase so you know how many lots of
each currency to buy. Do NOT assume these numbers stay the same
because they don't. The reciprocal relationship changes over time and
the math behind these changes is what the Portfolio Allocator gives
us. This is key to the whole strategy of staying properly "hedged" so
do NOT miss this step.

When do you buy these 2% chunks? Whenever. It doesn't much matter as
long as they are spaced out. Maybe before going to work every day or
after you get home. What you'll notice is you'll start to get
a "feeling" for the market (and your account value) and you'll
quickly see when the best time is.

When do you sell? A couple things to consider are:

Maybe it is best to wait until your account equity has grown by a
certain target percentage, say 10% or 12% for example. Remember, an
account which gains 12% per month will double your money every six
months. This means you can turn only $1250 into over $1 Million in
only 5 years.

Maybe you could look at each transaction pair that you entered at the
same time, i.e. consider both the EUR/USD and USD/CHF and when it is
positive by 1%-2% then close those ones only. If this is what you are
doing all you need to do is remember you always want to be using
around 10% margin so if you close a pairing then you may be able to
open a new one either that day or the next.

Results? Here are some results I've been getting using this strategy:

Jan. 3 - started with $5,000

Feb. 1 - account balance is $6,800 = +36%

Feb. 16 - account balance is $7,765 = +14%
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Mar 01, 2007, 11:58 PM
Bro Mike, I don't quite get the "split to 5 chunks" part. Does it mean it is better to hedge 5 eur/usd long and 5 usd/chf long positions with 2% margin each, all at the same time? di ba times 5 din yung spread na babayaran?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 02, 2007, 12:33 AM
I think what it is saying is enter the market using 2% margin only.  Then if and as the floating loss gets a little bigger, then enter the market with another 2% margin, and so on.  Averaging out is what the technique is.  Tama ba, MikeQC?

Where did you get this article?  Coz I cant see the illustration for the "S" thing?


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Mar 02, 2007, 01:17 AM
I kinda like the idea... Mas evenly spaced out yung pasok ng trades. Great article Mike.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 02, 2007, 01:24 AM
Bro Sam & Ping, yes this is actually averaging out but only 5 intervals.  Dollar Cost Averaging (DCA) is the same old effective and very proven strategy that we use when we invest in mutual funds but this time they applied it on FR methodology which really makes a lot of sense.  Actually I am still in the process of digesting it myself as I just got this a while ago from my friend in Canada but I already saw it posted in our FR yahoogroups.  

Just saw your post lehboy, ang galing ng nakaisip diba. Can't wait to close my current positions and apply this strategy. And I strongly believe this....
Quote
Remember, an account which gains 12% per month will double your money every six
months. This means you can turn only $1250 into over $1 Million in only 5 years.
:thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 02, 2007, 05:44 PM
Another question, if you spaced out the opening of trades, you'll be losing some earning opportunities if and when the market goes straight up, right?

I think "averaging" works best when the market is going down (just like now), and then you get in to "average" it out, just like most people do in stock market.

At any rate, it's a great idea, indeed.


 :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Mar 02, 2007, 06:25 PM
^yeah averaging is very effective in stocks or mutual funds when the market is down.  

guys how did your fr accounts perform in this big drawdowns share nyo naman dito (if it's ok lang naman) at least we can also see how far it can sustain especially if you're with swiss & yen pairs.  the market might not be so easy to correct these days especially the over carry trade that is going on with the yen.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 02, 2007, 06:40 PM
I have compiled all the questions regarding the use of Dollar Cost Averaging Strategy on Freedom Rocks methodology....

1. I don't quite get the "split to 5 chunks" part.  Does this mean it is better to hedge 5 eur/usd long and 5 usd/chf long positions with 2% margin each, all at the same time?

* You wouldn't buy them all at the same time, you'd spread the purchases out over a number of days or a couple weeks or however long it takes to take advantage of the averaging effect.

2. So does this mean we'll have to pay for the spreads 5 times since
we will be splitting our entries into 5?


* You pay the spread every time you buy so yes, but that's not a concern because it adds up to the same amount whether you buy them all at once or spread the purchases out.

3. What is the ideal time difference (or the gap) for each entry?.... say 12 hours apart? 24 hours apart? 2 days apart? or 1 week apart..... or shall we simply wait when the floating loss gets a little bigger?

* The market could be stuck at the same place for period of time so it seems to make the best sense to wait until there is movement, whether that is negative or positive. If the market is trending against us it will be negative but if it is going in our favor then the change will be a positive one.

4. If I only have $5,000 to start, is it ok to split it into five 1% margins? Or what advice can you give?

* You have to decide for yourself what kind of total margin you want to use and I'm not in a position to give financial advice like that. What I'm saying though is once you decide what total margin you want to use then divide it into equal sizes, whether that is 2% at a time,
1% at a time, or even less.

5. Do you set up a different set of Buy Limit and Sell Limit trades for each 1/5 of your portfolio? Once you have all your portfolio allocated, do you consolidate the Buy and Sell Limits to simplify or do you keep having five different sets of limits?

* This is a great question and points out a different way that I diverge from the Freedom Rocks system. After watching my portfolio fluctuate between positive and negative, back and forth many times, I decided my personal strategy would be to NOT use the limit orders at all. Instead I sell whenever it is over the top at a decent profit, otherwise I'm
just waiting for it to get there.

Here is another reason I decided not to use the limit orders. Picture this: you buy $100,000 worth of EUR/USD and $105,000 worth of USD/CHF and the market decides to go on a long term trend against the EUR/USD.

According to the way we set up the limit orders we would buy more EUR/USD and sell USD/CHF through the "trend". I figured the end result would be an imbalance between the two pairings, something I thought would add risk. I don't want added risk. I want less risk.

6. Another question, if you spaced out the opening of trades, you'll be losing some earning opportunities if and when the market goes straight up, right?

* Yes, only while you're in the process.

7. I think "averaging" works best when the market is going down (just like now), and then you get in to "average" it out, just like most people do in stock market.

* If you are trading the 2 most tightly correlated pairs (the eur/usd & usd/chf), when one of the pairs is bearish, the other one is bullish so it would be difficult to decide on the best time to enter the market.  So this is one of the reasons why it's good to dollar average our entries in order to drastically minimize our drawdowns and maximize profits.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Mar 02, 2007, 06:44 PM
^Wynn,

Averaging could also be very useful in forex trading especially when your trades are down. Wynn, I suggest you use the hedging of eu/usd and usd/chf pairs. These pairs are nearly exact opposites in currency.

@MikeQC,

I think it adds up a very, very nice and risk free strategy.. bravo!!!  :clap: I salute this strategy included in the FR. Mike, I think you are on your way to becoming a very intelligent trader in the future. Thank you for sharing this.  :yehey:

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 02, 2007, 07:45 PM
anybody on the call this morning regarding FR?  how are the portfolios doing?  still taking a beating up to now.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Wynn on Mar 02, 2007, 08:26 PM

^Wynn,

Averaging could also be very useful in forex trading especially when your trades are down. Wynn, I suggest you use the hedging of eu/usd and usd/chf pairs. These pairs are nearly exact opposites in currency.



thanks 4x but just want to know how did fr perform especially in this big drawdowns with those who have yen & chf on their portfolios
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 03, 2007, 02:34 AM
Quote from: 4x
I think it adds up a very, very nice and risk free strategy.. bravo!!!   I salute this strategy included in the FR. Mike, I think you are on your way to becoming a very intelligent trader in the future. Thank you for sharing this.

Thanks for the kind words 4x and your expert advices as well. I hope this strategy will indeed be of great benefit to all our FR traders here. And of course thanks to my Canadian friends too.  :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Mar 03, 2007, 08:19 AM
^Wynn,

Quote

thanks 4x but just want to know how did fr perform especially in this big drawdowns with those who have yen & chf on their portfolios


ok, well somebody should have traded the pairs also using fr.. but for me these pairs are not exact opposites therefor if ever there is drawdown, these pairs would be far from each other in terms of hedging and the same goes for positive trades.

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Mar 04, 2007, 06:04 AM
I hate to say this guys, but I think March will be not be a good month for FRers.

Last night, I studied the EUR/USD chart by plotting elliot waves, I found out that it we are at the beginning of wave 1 on the daily chart with a "hanging man" candle formed (3rd candle from the left) and big wave B on the weekly chart, all indicating a big reversal. After the huge steep decline last tuesday, we had a correction, in technical analysis we all know that there will be another big move after every corrections.

From my observation, pagbagsak ang eur/usd specially eur/chf pairs, nasa negative territory tayo. eur/chf pair is also giving a down trend signal. I hope mali ang predictions ko.

This month is the best time to utilize the "average out" technique if still have available margin for it.

UPDATE: I got a margin call last friday night (on my personal live account). 30% margin kasi ginamit ko eh. That trade was opened since 2/21.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 04, 2007, 08:09 AM
hi Sam,
so what you are saying is that you see that there will be further drawdowns?  hope that isnt the case.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 04, 2007, 11:51 AM
@sam_1_els,

Will the downtrend of EURUSD, means an uptrend for USDCHF, since they are the most tightly correlated pairs?

What happens to GBPUSD?  Is it supposed to be following the trend of EURUSD.  Last Friday, we saw USDCHF and GBPUSD take a beating simultenously, while EURUSD just inched up so little, it was negligible.

My portfolio (3pairs, 400:1, 20%, opened last Feb 23) went down from 52% (Friday 5pm, the last I check) to 78% when I check it again Saturday morning.  Is this the time to cut loss and walk?  Or stay a while longer, and see what will happen tomorrow?  

I made some kind of "averaging" before MikeQC's post, and I made an aggressive one, when it was down by 20%.  Now they are also down heavily.  I plan to cut loss and close the 2nd set of portfolio tomorrow, and ride out the original one, to give room for some margin, should it go down further.

@gr8collector, MikeQC, lehboy, et.al., may open trade din ba kayo?  How was it?  Date you opened your trades, 2-, 3- or 4-pairs?

Care to share your personal plans?



 :confused:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Mar 04, 2007, 09:53 PM
@gr8collector, Yes. to those who still have existing open trade since 2/21, possible na may drawdown pa. I also hope and pray that thats not the case, I only interpreting what the chart is saying. Pero sa mga nag-open last friday ng hedge positions will not affect much (I'll explain later).

@ping, yes. I think CHF pair will go up since mirror image sya ng EUR. I don't know much about GBP, hindi ko na nasubaybayan recently, but I think it is also down, since big brother sya ng EUR.

I'm not in a position to give advice whether to cut loss early or not, since wala naman sa FR rules ang cut loss. I'm not also saying that my analysis are 100% right. We should trade with self discretion.

Below is the EUR/CHF chart. According to my observation, whether you hedge 2 pairs or 3 pairs (w/o JPY), if e/c is trending downward, we are also experiencing drawdown.

Notice Feb. 21 on chart below where I  plot my fibonacci 100 level (highest high of this year). Most of us opened our positions around that date, it is bearish since then, and we are also continuing experiencing drawdown.

(http://i84.photobucket.com/albums/k28/krugger21/eurchfana.gif)

The yellow lines are the fibo levels, lavender lines is the channel trendline. In my interpretation, we are still in a bearish trend. Early monday trading hours, I think price will go up to the median of the channel, probably it will bounce or go further up dependes on momentum. Then it will touch the upper trendline. If price penetrate thru the upper trendline, we are safe, if it bounce, we are in big trouble.

Sa mga gustong gumamit ng FR software, it is not that complicated, you don't have to know how to do the charting stuff. I'm using technical analysis to get the right entry lang.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Mar 04, 2007, 10:21 PM
Below is the EUR/USD chart. We noticed in the past that if e/u is bearish, chances are... we will be in the negative territory. The chart shows why I'm saying that euro will still go down in days to come.

Yellow lines are the Fibo levels.
Blue line is the short term trendline.
Orange line is the mid term trendline.
Red line is the long term (major) trendline.
Orange line on the MACD is the deviation.

(http://i84.photobucket.com/albums/k28/krugger21/eurchfana-1.gif)

- 3rd candle from the right is a hanging man candle (the 1 looks like a cross). It signify a reversal of trend.
- Price also penetrated thru and closed below the short and mid term trendlines. Also signify a continues down trend.
- The deviation on MACD also shows downtrend.
- I think price should reach Fibo 50 or the major trendline (red) or coinfluence of both before it bounce back up. It will take days not hours before we reach there. If price pierced below the red line, Euro will continue to fall.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: 4x on Mar 05, 2007, 12:05 AM
^sam_1_els,

Very imminent reversal nga yung graph na yan.. Going down yan.

4x
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 05, 2007, 07:42 AM
if E/u goes down then u/c should go up given it negative correlation.  Cable just hasnt been correlated at all the past few weeks.  my account is still continuing to go down Monday morning.  

cable dropping like a rock!!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 05, 2007, 07:51 AM
nothing seems to be going right?!?   :rant:

EU, GU and UC dropping!


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Mar 05, 2007, 12:30 PM
Kamusta accounts niyo? My account on Jan. 23 already had margin call mid-last week pa... Didn't know cable could go down so fast...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 05, 2007, 04:22 PM
End of the game for me, as of now... MARGIN CALL!


 :cry: :rant: :cry:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 05, 2007, 05:42 PM
Oh my god I'm so sorry to hear that Ping, grabe talaga itong naging impact ng unexpected worldwide financial meltdown (orchestrated by China) last week sa lahat.  Right now I'm still on a huge floating loss of about $5,525.26 so yung dinoble ng pera ko previously ay nasa floating loss lang ngayon.  Good thing my margin is only 10% and I didn't trade usd/jpy kaya malayo-layo pa naman ako para mag margin out. My only choice for now is to hang on and wait out for the market to recover while accumulating the swaps.  

Guys, here's something to read about what really happened last week that started all these huge drawdowns.....    

By George Friedman


China's Shanghai Composite Index tumbled 8.84 percent Feb. 27, its
largest fall in a decade. Its sister index, the Shenzhen Composite
Index, fell 8.54 percent. The size of the drop in China is not
significant in and of itself. On a number of occasions during the
past year, the Shanghai Stock Exchange has experienced 5 percent plus
daily reductions, and it has already boomed and busted once this
decade.

But that hardly means the development is insignificant. The fall is
important both for how it happened and what it triggered.

How it Happened

This was an engineered drop.

The Chinese government has become increasingly concerned about levels
of investment in its economy or, more accurately, the sheer amount of
money that is chasing projects. State firms with limitless access to
subsidized capital from state banks have used that access to launch
thousands of nonprofitable firms. This glut in "investment" money
drives up the cost of commodities and adds industrial capacity
without actually producing anything of much use, making life more
difficult for the average Chinese and unduly harming relations with
foreign powers that face a glut of otherwise noncompetitive Chinese
goods.

This penchant for overinvestment has now spread to the stock market
in two ways. First, the same politically connected government
officials who started dud companies are taking out loans to buy
shares, or are using shares they already hold as collateral for new
loans. Second, ordinary Chinese citizens have started borrowing --
sometimes against their homes -- in order to play the market. In
January, the number of total traders on the Chinese exchanges grew by
1.38 million, an increase of 134 percent from a month earlier, while
stock turnover was up 700 percent from a year earlier.

The net result is an absurd stock surge with no basis in
fundamentals. At present, some Chinese banks now have price-to-
earnings ratios higher than financial behemoths such as Deutsche Bank
and Chase, despite deplorable management and a history of highly
questionable lending policies.

For the past few months, the government has been working to drive
down this speculative investing. On Feb. 26, China's State Council
launched a new "special task force" that accurately could be referred
to as the "get-those-idiots- to-stop-borrowin g-to-gamble- on-the-stock-
exchanges" team. Its express goal is to get the Chinese domestic
security brokers to lay off such speculative decision-making, while
also putting a crimp in the source of the subsidized capital.

Day one started by the script, and Beijing is likely quite pleased
with the way things are going (or at least it was until its actions
unintentionally triggered a global meltdown). Also, since the
Shanghai exchange is actually still up 3 percent for the past week
despite suffering its largest drop in a decade, the State Council
probably hopes for more drops in the days ahead.

What it Triggered

But the rest of the world took a different lesson. Why the Chinese
stock crash occurred was unimportant to the outside world, only that
it did -- and that it affected everyone else.

For the first time, China has become the trendsetter in the global
stock community. Normally, the U.S. exchanges -- especially the S&P
500 index and the Dow Jones Industrial Average -- set the tone for
global trading patterns. Not on Feb. 27. This time, China led Asia to
a wretched day. The wider the contagion spread, the more margin calls
were forced to be called in. (If an account's value falls below a
minimum required level, the broker will issue a margin call for the
account holder to either deposit more cash or sell securities to fix
the problem.)

As the drops snowballed, Europe filed in dutifully behind, mixing the
China malaise with its own nervousness about overextended markets in
Central Europe and the former Soviet Union. By the time markets
opened in the United States -- where investors already were fretting
about the subprime mortgage markets -- the only question remaining
was how far U.S. markets would descend. In the end, the Dow dropped
by the most since the fall triggered by the 9/11 attacks.

So why has this not happened before now? As China's market
capitalization has increased, its links to the global system have
increased apace. These links have developed very quickly, and with
few controls. The Shanghai exchange, for example, more than tripled
in total value in 2006 to more than $900 billion -- and much of the
rapid-fire initial public offerings (IPOs) of Chinese banks on the
Hong Kong and other international exchanges are not included in that
little factoid. Indeed, China's mainland exchanges are only the tip
of the iceberg -- and they certainly do not include foreign firms
that are heavily invested in the mainland.

Two years ago, China's market capitalization was too small for its
problems to impact the global system. Now, between ridiculous foreign
subscriptions to IPOs, irresponsible corporate policies and
irrational valuations all around, that capitalization is to a level --
around $1.3 trillion -- where its integration with the global system
via funds and margins makes China a sizable chunk of the
international financial landscape. The insulation that once protected
international exchanges from Chinese policies is gone, which makes
the international system more vulnerable to Chinese crashes.

Feb. 28 and Beyond

Follow-on crashes can come from one of three places.

First, the Chinese believe their exchanges are massively overvalued
(hence the engineered crash). They will do this again, and are not
(yet) particularly concerned with the international consequences.
China planned to dampen its own stock market, not the world's
markets. Along with the rest of the world, Beijing did not expect the
contagion effect to be so extreme. Yet, for now at least, China's own
exchanges are its primary concern, and it will act according to that
belief.

Second, everyone else now is going to chew on the fact that Beijing
did this intentionally. They will either agree with the Chinese that
the exchanges are overvalued and that additional measures are needed,
or they will be terrified that Beijing did this intentionally and not
care about the reasons. Whether what is sold is a domestic Chinese
firm or a foreign firm invested in China does not matter much.
Neither does it matter if the stock is on an exchange in China or
abroad. Either way, the reaction will be the same: Sell.

Third, trading in 800 of the 1,400 stocks on the Shanghai exchange
was suspended during the sudden drops Feb. 27; they have a lot
farther to fall, even without any engineered drops caused by panicky
selling.

Considering the flaws on which the Chinese system is based, this
certainly will not be the last engineered drop. In theory, the move
will make foreign investors far more cautious before diving into the
Chinese system, but as longtime Stratfor readers know, we have been
wrong on the timing of that particular development before.
 :cry:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Mar 05, 2007, 08:31 PM
Margin call as well on my account on 2/22 - 2/23. 11400 starting equity. with 2 open positions at 10% margin each. total of 20% margin total.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 06, 2007, 10:57 AM
 carry currencies are gaining strength again breaking resistance levels.  This has caused a slight recovery on FR accounts.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Bentong on Mar 06, 2007, 10:59 AM
Good to hear that gr8collector, sana tuloy tuloy na  :clap:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 06, 2007, 12:06 PM
Yes it is slowly gaining ground and my account's floating loss has finally gone down as well.  Markso and I were actually talking about FR last night and the current situation should be look up more on the fundamental side for now as it recovers.  Technical analysis is for the shorter term.  

Take note of this....To measure pair correlations, please look at a chart of the cross pairs. DO NOT TRADE THEM, just look at them. If you are trading the EURUSD vs the USDCHF, take a look at the EURCHF chart. If you are trading the GBPUSD vs the USDCHF, look at the GBPCHF. If you trade the EURUSD vs the USDJPY, look at the EURJPY. If you trade the GBPUSD vs the USDJPY, looke at the GBPJPY.  You will see how these pairs are "corelated". If, for instance, the EURUSD and the USDCHF were perfectly correlated, the chart for the EURCHF would be a horizontal line. Is it? Obviously it is not, but the point is that it goes up and down randomly, just like all the other pairs. And, it is not a nice "S" curve that we can predict. Doesn't matter what the Freedom Rocks execs say. Some pairs are better than others, but the pair correlations simply don't HAVE TO hold up over time. There is no law. This is what we are dealing with. As an example, when the GBPJPY cross pair goes down dramatically (like it has), it means that the GBP is losing value against the JPY.  Lately, carry traders are unwinding, in effect, selling their pound sterling holdings and buying back their yen. When you cross these currencies against the USD (like we do in our accounts), you see the effect. The GBPUSD drops against the dollar (GBPUSD drops), and the JPY rises against the dollar (USDJPY also drops). The USD in our accounts cancel out against each other (numerator in one pair and denominator in the other pair). This applies to all other pair correlations you might have in your account. Please study these scenarios to understand your investment.

Keep in mind that we are small carry traders as well. When we allocate our accounts, we are borrowing yen and buying GBP (or whatever pairs we use). When we all get scared and liquidate our positions, we are all selling our pound sterling and paying back our yen (or whatever pairs we hold). We following market sentiment, and unwinding our carry trades along with the big hedge fund managers.

Now I realized when using the Freedom Rocks system, we have to be conservative, take a
long-term approach, and understand what we're are getting into. It is not simply a "sign up now and have your own ATM". I fear that Freedom Rocks' explosive growth has been mainly due to the "lucky profits/market gifts" that everyone has been experiencing. I remember this popular phrase "The market giveth and the market taketh away". It will be interesting to see Freedom Rocks growth curve while the market "taketh away". I predict that the reps that stick with the system are the ones that really understand the risks (and I am NOT claiming that I am one of those). The others will simply fall away.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 06, 2007, 03:19 PM
what are you suggestions Mike?  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: earn4real on Mar 06, 2007, 03:27 PM
Quote
Now I realized when using the Freedom Rocks system, we have to be conservative, take a
long-term approach, and understand what we're are getting into. It is not simply a "sign up now and have your own ATM". I fear that Freedom Rocks' explosive growth has been mainly due to the "lucky profits/market gifts" that everyone has been experiencing. I remember this popular phrase "The market giveth and the market taketh away". It will be interesting to see Freedom Rocks growth curve while the market "taketh away". I predict that the reps that stick with the system are the ones that really understand the risks (and I am NOT claiming that I am one of those). The others will simply fall away.


Ang laki ng nawala bago natutunan ito?

Ok lang iyan, baka next time makabawi na kayo. mag cheer na lang ulit tayo sa FR strategy...  :thumbsup2 :thumbsup2

I suggest, wait until 2 to 3 weeks or maybe till last week of March before opening another portfolio. February and March is very volatile. Have to wait and see what will happen next..
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 06, 2007, 04:48 PM
Quote from: gr8collector
what are you suggestions Mike?

We all are taking away some new lessons after this week. We all need to be advising everyone in FreedomRocks that there will be drawdowns (expect them) and prepare for them. We don't want to be caught off guard again. From now on and as I've been suggesting even way before, let's go easy on our margins and remember this:

* Low Risk trading consists of less than 10%
* Medium Risk trading is 10%
* And anything over 10% is high risk.

And also we should really highly consider dollar averaging our way in to the market from now on as advised by our Canadian friends.  Once again, Dollar Cost Averaging (DCA) is an old but very effective and proven method that I've been using in mutual funds and I know that it will really make a lot of sense using alongside our hedging strategy.

We also have to take our profits out from time to time so that we are eventually trading with House Money. Rule of thumb in all types of trading has always been, "What goes up must come down"... this market is no different. Let's be happy with a 60% - 100% annual gains and not try to create wealth for ourselves overnight. Time & Consistency is the best way to go.  

Quote from: earn4real
Ang laki ng nawala bago natutunan ito?

Yes malaking tuition fee sa mga may matataas na margin na nag margin call and a very important lesson na din ito sa lahat.  And please wag naman sana yung parang natutuwa pa kung may mga kaibigan tayong na-da-down but I hope that's not really the case and maybe I'm just over-reacting. This is a problem with some filipinos kasi na para bang mas nasisiyahan pag may napapahamak na kapwa pinoy (it's what we call crab mentality) and again I hope this is not the case. And nobody is cheering for Freedom Rocks here because if the correlations would be broken for good we will have to say goodbye to their system. Ang buong financial market ay naapektohan at global meltdown po ang nangyari kaya lahat specially Stocks, Mutual Funds and UITF's ay apektado. Now it's great to see that it's a bit recovering already and let's just pray that it continues to do so.  :)

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 07, 2007, 01:59 AM
Quote from: sam_1_els
I hate to say this guys, but I think March will be not be a
good month for Freedom Rockers.
Last night, I studied the EUR/USD chart by plotting elliot waves, I
found out that if we are at the beginning of wave 1 on the daily chart
with a "hanging man" candle formed (3rd candle from the left) and big
wave B on the weekly chart, all indicating a big reversal. After the
huge steep decline last tuesday, we had a correction, in technical
analysis we all know that there will be another big move after every
corrections.
From my observation, if the eur/usd is down, specially eur/chf pairs,
we're on the negative territory. The eur/chf pair is also giving a
down trend signal. I hope my predictions are wrong.


Hi sam bro, sinubukan ko lang i-bring up yung "Elliott Wave" analysis mo sa Canadian Forex Group  and it's good to hear some advices from them too.  Heto na......

1st Reply: I don't often write here; but I will say that you guys have it right!!
Elliott is the market psyche; have you not noticed that there are a lot of times when the news is good for the pound and the pound still goes down or the news is good for the US but it still goes against the US??? that is what it is about. You will find that Elliott noticed these things and after looking at and using fibo's, saw the correlation. Therefore it has nothing to do with the freedomrocks.

That does not say that either is good or bad, just two different ways to trade the market is all. Having been in the market for over three years; every year this happens and if you go back on the monthly you will see that in the spring the pound and euro fall and the swissy and yen raise. By May they will have hit the bottom or top and bounce around there until the August when they reverse. By Elliott standards this fall was predicted on the pound after it hit 1.9915. It will continue in a down and up fashion of 5 waves plus a abc wave correction until it gets close to the 1.800 area which is the 61.8 fibo area for the total move up. Please remember there will be
waves for every time frame you look at so the best overall picture is the daily or weekly charts. Please remember one year ago the pound dropped clear down from 1.9800 area to 1.7200 area in 2 months.

The big thing you need to think about is if you stay in on the Freedom rocks; do you have enough margin to ride this out with out taking a LOSS and it will depend on where you got in. Every one will have to evaluate thier own accounts and make decisions for themselves. I dont care what method you use you have to look at a bunch of different things to know what is going on and what to do about it.

jim

2nd Reply:Thank you Jim for your knowledgeable contribution, I concur with your observations.

I also have observed that every early spring there is a type of reversal; the Euro drops and the USD appreciates in value. I have always explained this as the Americans increasing their dollars'
worth to buy more, "bang for their buck", as they go vacationing for the summer: They would normally drop the value of their currency in the fall and winter to increase exports of goods and services to the outside world to keep their industrial production robust in the winter months and placate their labour demands.

With reference to FreedomRocks, I think the best suggestion made to date, has been that of Grant Andrews in an earlier post which takes into account the small waves you referred to into account as the EUR-USD go through their reversals over a period of time. By adjusting and dollar cost averaging over time people's margins stay withing norms and adjust over time as the correlations between them change. The main issue I have with FreedomRocks and any established system out there is that they become inflexible and are not open to suggestions and recommendations... flexibility is not apparent. I tried to introduce this new approach at last week's conference call with Mark Vincelette and was totally ignored and silenced. ANY system
whether it be BL, 10 pips, FXTA, GAT or FreedomRocks, that loses flexibility and "rides the high horse" is doomed to fail.

This months' currency movements have convinced me that FreedomRocks is an excellent system provided it is used the way that Grant recommends.. . I will certainly incorporate this in my trading a soon as things quiet down. Mark Vincelette had mentioned of this impasse back in September '06 when he responded to his draw down with the JPY. Had he learned from this experience and had incorporated Grant's recommendation, he and the rest of us would have been making money during this devastating last two months.

We should learn from our experiences and ALWAYS seek to improve on our knowledge... flexibility is the key to our success... sharing as you have done Jim, along side Grant and the others, is our empowerment to call ourselves human.

Regards,
Elias
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 07, 2007, 07:59 AM
great posts Mike.  
Keep the information coming.  Account has kept on recovering since yesterday.  im just hanging on and waiting for the swaps daily to offset whatever pip losses have occured.  
A very valuable and expensive lesson learned.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 07, 2007, 08:10 AM
Nice, MikeQC, gr8collector, market is recovering na.  Sana tuloy-tuloy na ito.   :thumbsup2

Too bad mine was not able to survive the margin call.  :rant:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 07, 2007, 08:12 AM
sorry to hear that Ping.  the pool should be in profit or at least close to breakeven yeah?
Freedom Rocks is a VERY highly leveraged strategy.  Lesson learned for me as i had one of my more aggressive account margined earlier also.  Too much greed will do you in using if you are using FR.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: lehboy on Mar 07, 2007, 11:40 AM
sana tuloy tuloy na nga 'to.... :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 07, 2007, 05:47 PM
Guys, here is a nice link to see the relative currency pair correlations over the past 5, 20 and 100 days. This helps rationalize why our trades have been very unusual lately.

This will also be very useful in deciding when to re-enter positions once the correlations "normalize".  Make sure you bookmark this...

http://www.mataf.net/en/analysis-correlation.htm
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 08, 2007, 08:32 PM
Understanding Correlation info

Just a warning to those new to correlation - the pairs may already be correlating 'normally' again which means it may take a long time to recover the ground they left. Pairs can go way out of whack and then correlate at that new position for some time. Correlation does not refer to a certain fixed price spread between the two currencies, it is the relationship of the pair moving from where they are currently.

This is why you should not be doing FR with high risk and only look for long term gains - not get rich overnight 'bets'. Those who got margined out were most likely over-margined or over- leveraged. As with any trading plan - conservatively follow the rules but don't do it blindly - know and understand the market - a lot of currencies were at record highs - not a good place to get in with FR. Understand the tools and how they work before you risk real money because as good as a system may look - every system fails in some way and you must be aware of those pitfalls and know how to protect your position from them.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Mar 08, 2007, 11:37 PM
Keep it coming Mike bro!  :clap: ....and thanks for the mataf site link.

UPDATE: I was able to bagged a few pips for PMTFC from yesterday and today's eur/chf retracement.

 :offtopic: I did a demo hedging eur/chf against eur/gbp yesterday. I don't know if luck has something to do with it but a gained 1.2% of the equity within 24hrs. :hihi:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: sam_1_els on Mar 11, 2007, 05:02 AM
Here's another great site to check for the correlation between two currency pairs. They update their data only twice a day (6:00GMT and at 18:00GMT).

www.understandmarket.com (http://www.understandmarket.com/index.php?categoryid=55)

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 14, 2007, 05:23 PM
Just an update: Another drawdown week for our Freedom Rocks/IBFX accounts following Wall Street's second-biggest point drop in four years which further jittered the already very nervous financial markets. But so far the swaps have been consistently earning interest each day and limit orders have been executing finely.    
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 15, 2007, 09:53 PM
still hanging in there.  swaps are definitely helping now.  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 15, 2007, 11:46 PM
Thanks for your update gr8collector. You know with these recent back-to-back market crashes,  I have really further learned and realized the real importance of not being greedy.  Now my definite findings are... that this FR strategy is really very effective as long as you don't tinker with it and you follow the system the way it's suppose to work.  Also if we keep our margins down (say below 10%) we should be safe in the long run, even during such unexpected market crash or global meltdown. We need to treat it as a long term opportunity.  FR is a system which requires little work for the average trader or newbie to make some money with the high gain/high risk principle.  And Now we noticed that the swaps that we gain each day are really doing a great deal of a job as it slowly and quietly diminishes our drawdowns. Those small limit sell orders have been executing very nicely as well.  When the market finally corrects and even if it doesn't, we'll still have more gains as those swaps and those limit sell orders will finally catch up with it and we'll definitely be gaining a lot more in the end. Now we see the complete picture of it.  :thumbsup2  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 16, 2007, 08:06 AM
Too bad, nobody was able to anticipate this meltdown, and I have learnt the hard way, that I should only use less than 10% for FR to be safe.   The first time I went 20%, it margin me out!   :rant:

Anyway, I am now enrolled in Mark So's Forex school, and I am enjoying it tremendously.  Makes me more informed.  2 more sessions to go, and I hope to get back what I lost.  This time, with FR and more additional knowledge...!   :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 19, 2007, 10:18 PM
Yes a professional guidance by Mark is indeed a huge advantage.  To all those who really want too SERIOUSLY learn Forex Trading and Freedom Rocks as well, DO yourselves a big favor.....enroll in Mark So's forex courses.  Believe it or not, it is the best option and investment that you will ever undertake as far as forex trading is concerned.  Once again, it's a lot harder to self-study with those ebooks & webinars. Nothing compares to a brick and mortar school.  Way to go Ping!

Ok going back to Freedom Rocks.... I copied this from an email that was sent to me by a good friend of mine who's a veteran member of a large Canadian Forex group.  There is some good information here that I thought you might benefit from. Plan to learn all you can about this wonderful system and how to create a "Defensive Strategy" with your account.

These past few weeks was wild for those of us in this strategy. I am reminded of how important it is to ALWAYS protect yourself from being margined out. Obviously the best time to protect yourself is before you enter a hedge position. I am going to discuss several issues
which seem important today. I hope it is helpful information. Remember it is only my opinion of my experience using this forex investment strategy.

NOTE: If you don't understand the information in this email, please know you are not prepared to use this strategy as an investment vehicle. You need to be using a demo account and continue to learn the fundamentals of the FreedomRocks investment strategy including
Risk-Return management.

PROTECTING YOURSELF BEFORE YOU ENTER THE TRADE:

Before you enter the hedge trade is when you determine your Risk Level. You determine the risk level through setting your Margin Level and selecting the currencies to trade. If you don't know where the market is then PLEASE use a conservative percentage level of margin.(under 10%) During the last four months the pound has been moving up and this is one of the main reasons that many of us have had so many cash grabs. With cash grabs come increased RISK and if you are not prepared to take on those RISKS you shouldn't take cash grabs. I encourage you to join us in our strategy sessions so you can increase your knowledge of risk management and market conditions. Be conservative in your margin selection. Keep it under 10% if you are uncertain because you can always add to a position, however you can't lower your margin unless you add money to your accounts. Many people got into the current situation because they entered the position at the very top of the market on January 23rd.

CURRENCY SELECTION: Trade pairs that you have knowledge about. The JPY yen is the most unpredictable currency in this system. If you include the JPY in any of your positions, be even more conservative with your margin level %. I personally don't trade with the JPY. It has been my experience that one of the best hedges to enter is the Gbp/usd, Eur/Usd vs. Usd/chf. This triple pair hedge is highly correlated and usually has the least drawdown of any pairs that I've traded. However your experience and knowledge should be the
driving factors in the decision of which pairs to trade. Determining market conditions is a difficult process at best. However, there are skills you can learn to help you determine the probabilities of market movements. Many of us who are also directional traders are
or have learned those skills. From the best of my abilities – and our strategy sessions can help to clarify these questions – I think the most critical questions to answer in currency trading are....
1.) Where is the currency AT in relationship to others?
2.) Where is the currency GOING in relationship to others?

Those two questions must be answered individually for anyone to be successful as a currency trader. Without some idea of those questions and probable answers you are simply gambling and trying to jump on a moving bus. The thrill can be fun…. However it is ALWAYS costly.

Given those questions, it looks as though the pound will continue to drop to a fibo level as well as the euro. However, it looks as though the swissy (CHF) and the yen (JPY) have hit bottom and should resume their upward movement. These are not predictions… they are
observations of the market and analysis using the Elliott Wave and Fibonacci tools.

PROTECTING YOURSELF AFTER YOU ARE IN THE TRADE:

What do you do when you are in a position and the currencies move in non-correlated ways where you suffer a large drawdown? The absolute key is to deepen the well so that you can weather the situation. If any of my positions drop below 300% margin level % on the meta trader 4 platform, I will ALWAYS add money to my position to bring that level to over 500%. If you have put all your money into a hedge or you have allocated 100% of your account, you won't have any sort of protection when the market moves in non-correlated ways. ALWAYS have a buffer to protect your investment in the form of emergency cash you can
deposit into your account. Find out beforehand how to get money to your broker to increase the amount of money you have available for protection. Those who have lost the most are those who tinker with the system without knowledge of how they are affecting their hedge. If
you want to directionally trade, do not take directional trades inside the same account as your FreedomRocks hedge account. You will start getting margined out if your margin level % drops below 100%... so don't risk even getting close to 100% margin level%. The market will turn… however you need to cover yourself until that happens.

Please be wise and careful in your financial decisions. I want to create a community of traders who share their learning experience and so we can all profit from each other's experience. We are in the process of putting up a website where much of that sharing can take place.

Let's all win in this financial game…. I'm reminded that money like everything else…. Keeps us looking at our own growth and development. May the learning and growth continue.

Cheers!  :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 21, 2007, 02:28 AM
MY FR UPDATE:  My account has recovered significantly today as both the g/u and c/u recovered impressively. e/u is way up. My daily gains from the swaps have been really nice and steady. My sell limit orders have been executing nicely as expected.  At last! drawdown is almost over for me.   :thumbsup2

"Below is an interesting excerpt from the March issue of Currency Trader:

"The house of cards theory"

A favored topic of after-hours cocktail conversations among traders and analysts on the Street is whether the dollardoom scenario is just speculation or if the greenback really
is imminently vulnerable. The crux of the issue is the current bear market bias in the
U.S. dollar. And in this regard, huge "structural imbalances"— namely, the record-breaking levels of the current account deficit — is the story that just won't go away.

GLOBAL MARKETS continued
10 March 2007 • CURRENCY TRADER
In November 2006 the euro/dollar pair moved from $1.26 to $1.32 amid talk of central bank reserve diversification.
FIGURE 3 — RECENT ACTION
Source: TradeStation
As China's inflows of U.S. dollars have grown dramatically in recent years, they've plowed those proceeds largely into U.S. Treasury securities. The great fear in some circles is the Chinese will abruptly sell their U.S. holdings, sparking a surge in U.S. interest rates and a plunge in the U.S. dollar.  Talk of Asian central banks pulling the plug on the U.S.- denominated investments, primarily in the U.S. Treasury market, has sparked shivers in the forex market from time to time. But most economists will tell you it is simply not in
the best interests of China to sell U.S. Treasuries in large numbers. "That's Y-2K kind of stuff," Buskas says. "It's in nobody's interest to shift direction that quickly." Why? First, no matter how much China trims their dollar exposure, they'll still have dollar assets and they'd only be driving the value of their own portfolio lower. Second, higher U.S. interest rates would negatively impact American consumer spending and ultimately decrease demand for the billions of dollars of Chinese manufactured products that deluge U.S. shores each month.
"This scenario has been hanging over the dollar for many years," says Bank of America's Sinche. "Why would they turn around and dump dollars? It would destabilize their
exchange rate. It doesn't make any sense. It doesn't stand up to the reality of what they are doing and what their objectives are. China's objective is to maintain global stability. They are trying to develop economically and a big part of that is the export market. They need to have a place to sell those products."  However, Sinche offers a scenario in which — at some
point in the future — China's internal domestic demand market has grown enough that they may no longer be concerned about external stability."
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 21, 2007, 08:17 AM
Great to hear that, MikeQC!

I havent been using FR lately, but maybe in a couple of days, I will again.  Major pairs seems to be in an upswing lately?

After your class with MarkSo, have you been trying to trade "traditionally"?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 21, 2007, 12:44 PM
That's good Ping, be conservative this time around.  Btw, Mark So will be coming up with a class that will focus solely on Freedom Rocks (the best timing to enter hedge positions with FR using Bollinger Bands & RSI, etc).  The fee will be reasonable and finally we're just about ready to launch Freedom Rocks here in Philippines.  Mark and I have discussed about FR and according to him, it is still one of the best and safest strategy to use in Forex Trading. All you need to do is be conservative with your margins.  Just imagine I've got open positions (the very day that the market crashed) and has survived these back-to-back market crashes and global meltdowns without being margined out.... at 10% margin with 3 pairs.   If you got an open position and the market suddenly crashed (and you're doing traditional trading), do you really think you'll survive?.....or rather your stop orders won't get hit?

Yes I have been trading traditionally using FXCM and my favorite indicators are of course everything we learned from Mark....specially the Fibo, MAs, MACD, SSD, RSI, BBs and of course the Parabolic SAR and micro trending techniques. Guys stay tuned for the upcoming FR course as this will be great!!!  :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Mar 21, 2007, 09:21 PM
hi Mike. im still at around 27% drawdown.  did you put new funds into your FR account?  what is your current DD?
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 22, 2007, 12:37 PM
hi gr8collector, nope there's no need for me to put additional funds.  My current DD is just about 14% and the swap gains will be overtaking it anytime soon.  This is really a great system as long as people don't tinker with it and not let the greed factor come into play. :)
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Mar 22, 2007, 08:51 PM
Finally, I "graduated" from MarkSo brick and mortar forex class!

Now, let's see if I can trade with better results!

As for FreedomRocks, I am sure, it will help me get better entry signal.  And shall keep me reminded not to go beyond 10% in my portfolio allocation!


@MikeQC, nice meeting you there again at school a while ago.



 :yehey:
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Mar 23, 2007, 02:09 AM
Yes Ping, now with Markso's professional guidance I'm sure you will be trading with better results from now on and more importantly you will be trading a lot safer now.  Great to see you again indeed!

Ok guys, please check on Markso's new Freedom Rocks Forex Hedging course which will guide you on the best time to enter hedge positions using the best appropriate indicators, the "Bollinger Bands" and the "RSI" (Relative Strength Index).  We all know that the Freedom Rocks system is a very safe strategy.  But now with this new course, Freedom Rocks forex hedging will be EVEN lot safer more than ever.  Please see the new Businessmaker Academy thread NOW for further details. Please please take note that this is NOT an MLM type recruiting seminar.  This is a real forex trading course that will purely cover forex trading alone using the Freedom Rocks system. So there will be NO "rah rah rah sis boom bah" mlm-type cheerleading allowed here.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: pingles on Apr 01, 2007, 06:12 PM
Hi, I'm new to Forex. Papano nga palang maka-join sa Freedom Rocks? Gusto ko sanang subukan eh. I've trading in Marketiva for 1 month now, and I am still losing...parang may pagka-unfair pero sige pa rin ako.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: alexfx on Apr 01, 2007, 06:43 PM

Here's another great site to check for the correlation between two currency pairs. They update their data only twice a day (6:00GMT and at 18:00GMT).

www.understandmarket.com (http://www.understandmarket.com/index.php?categoryid=55)




Oh, that's great. Thank you!
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Apr 01, 2007, 11:43 PM
This is just a quick note to let you know I am now up 110% so far in 2007 using the Freedom Rocks system.  This thing is just getting better and better. Even when the markets bounce around like they have been we sleep easily at night knowing we're doing ok.
 
Guys how are your portfolios since after the recent market crash?  If I don't get any reply, its OK and I know what to assume.  Basta for me, the training I got from Mark plus plus the proven strategy of Freedom Rocks (at low margins) is so far the safest and most effective way to earn DECENTLY in forex CONSISTENTLY. Period. :thumbsup2
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: gr8collector on Apr 02, 2007, 10:09 AM
mines still in a double digit drawdown.  playing at around -8 to -12 % the past few days.  hoping that this will make it all the way back into profit real soon.
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Apr 02, 2007, 11:21 AM
That's a good improvement gr8collector.  You'll be out of that situation before you know it.  Also, if your drawdown continues, the swaps should catch up and overtake it sooner or later.  See you at Mark's special Freedom Rocks course that will solely focus on "non-directional" inverse hedge trading using these effective indicators, Bollinger Bands and RSI (Relative Strength Index). I have advised Mark and he already reserved a slot for you. :thumbsup2  
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Ping on Apr 02, 2007, 06:21 PM
Too bad I cant join you guys tomorrow.

Anyway, I am opening a full-scale 4-pair combo on FR at 5% exposure only.  I plan to ride it during this Holy Week, and see where it'll bring me.  As I wont have any access on the PC for the Holy Days!


Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: pingles on Apr 03, 2007, 01:24 PM
Hi, anong probability ho ba na mag-karoon ng scenario na mas mataas ang swing ng isang pair kumpara sa isa pang pair para kumita ng malaki? Nag-try ako ngayon pero after hours, halos walang nagyayari...matagal-tagal din ba bago makaroon ng income? Do you think the FR system is reliable enough? I am thinking kase of opening a live account next week....oopppss....i've edited this post after an hour I post it...mukhang ok ah...I opened 2 accounts na sabi ko eh di pa kumikita after an hour pero ngayon just 1 hour, mukhang duble na yung kinikita ng dalawa...mukhan ok to ah...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Apr 03, 2007, 08:57 PM
Hi pingles,

Yes the Freedom Rocks system is very reliable enough as we have already backtested it over and over. Our current live accounts even survived the recent Chinese engineered crash. Besides, Mark So & I will not be advocating it in the first place if we have not proven it ourselves.  And of course HINDI matagal kumita sa Non-Directional Trading strategy with the Freedom Rocks system and here's why.....  

1. Actually sa interest pa lang (swaps) you will be making nice steady gains per day already with the 2 most tightly correlated pairs (eur/usd & usd/chf).  And if you want to add a bit of volatility, you may opt to trade on 3 pairs (eur/usd ; gbp/usd & usd/chf) that will earn you even more interest per day.  Again I'm just talking of interest income alone here.  

2. Then of course you can keep locking in profits from the Up Swings as often as you can by closing out all your positions at the same time. Plus if you opt to do those grid trading using FR's Portfolio Manager, those calculated buy & sell limit orders are another way to lock in some profits.

And once again, reminder lang po.... keep your margins NICE & LOW and you should be able to ride out even the worst terrorist attack with the magnitude of 9/11 or the recent Chinese engineered worldwide market crash and have a very good night sleep with NO WORRIES.

Lastly, I would highly recommend that you guys attend Mark So's special training course on Freedom Rocks Inverse Hedging in order for you to learn how to trade more effectively using the system and basically almost eliminating your risk and even reducing it close to ZERO..... as oppose to traditional forex trading (or directional trading) which again statistically entails 95% failure rate.  Due the huge success of Mark's first session today, there will be another session on April 25 so you guys can start registering early in order to avail of the "early bird" discount.  Simply pm or email me your full name to reserve your slots.   :thumbsup2  


 

Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: pingles on Apr 07, 2007, 11:23 AM
May risk din pala....starting last thursday(Apr 5 and my 2nd day of trial period), the correlation between USD/CHF and GBP/USD has vanished and  still continues until Friday and I don't know what will happen this Monday or the coming week. Madalas bang mangyari ito? ibig sabihin I may not have an income if this scenarios happen tapos it may take awhile before it subsides...naku I am planning pa naman to invest heavily on this...
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: Mike QC on Apr 07, 2007, 01:06 PM
Hi pingles, first of all, the currency pairs that you're using and hedging (the GBP/USD & USD/CHF) are NOT that tightly correlated. That's why when we do inverse hedging with GBP/USD, we make sure that the EUR/USD (the currency pair which is historically VERY correlated with the USD/CHF) is and will ALWAYS be included, making them 3 currency pairs which we call  "The 3 Amigos" (EUR/CHF, GBP/USD & USD/CHF).  Speaking of risk, NOTHING in the Financial Markets and Investment World is risk free.... investing in Stocks, UITFs, Mutual Munds, etc. etc. entails RISK!  Even starting your own business entails significant risk. Walking on a street or a sidewalk also entails risk.  

Going back to our topic.... Let me share with you my personal experience last February. I myself was on a very huge drawdown with my "3 Amigos" currency pairs during the recent chinese engineered markets crash that started last Feb 27 (which we call "black tuesday").  I opened a live $5K account with IBFX sometime in the 2nd week of February and luckily doubled my money to $10K+ after just a week, everything was doing fine when all of a sudden, there came this chinese engineered financial markets crash.  I was on a huge drawdown of up to $6K+ but it didn't alarm me that much because I knew that I did set my margin nice and low and all I needed to do was wait it out.  As the drawdown continued and gradually recovered, I also saw that I have been gaining nice interest from the swaps each day.  I also diligently kept setting & resetting those buy and sell limit orders that the Portfolio Manager calculates for me, each time they executed which also added cushion to my drawdown effectively. Then in only about a month, my account is finally back and even gained a lot more. So I am proud to say that my live account survived the recent double market crash which was as huge as 9/11 and NEVER experienced a single margin call. So far NO LOSSES for me since I started using Freedom Rocks on both demo and live accounts!

That's the way it is in Forex Trading, always remember that there will always be Upswings and DownSwings. You CANNOT expect to be in the Upswings all the time. These DownSwings are really nothing specially if you know how to play them and you set your margins NICE AND LOW.  Last Friday (yesterday) the markets closed with my account on the negative -$156 but this is NOTHING compared to my $6,000+ drawdown during the market crash week.  Come Monday or perhaps a bit later, I know that this will be on the positive + side again.  Always remember the rule: What goes down MUST come up!  And as what we learned from our physic's class, remember Newton's law of gravity....What goes up MUST come down!

Lastly, Mr. Mark So has taught us a very effective strategy that he's been using on "Inverse Hedging" even way before Freedom Rocks came around. This awesome strategy will greatly help us determine our exact points of entry using those indicators "Bollinger Bands" and RSI (Relative strength Index) from now on.  I have to admit that it's something that's been missing in Freedom Rocks.  Freedom Rocks simply calculates the # of lots that you need to buy but it DOESN'T tell you the best time to buy them and that's our BIG ADVANTAGE now over other Freedom Rocks Users and many thanks to Mark.  That's why I can say now that we have almost reduced our risk close to ZERO%.  If only I am allowed by FR to post my trade screenshots here, I would be glad to do so as what I have been doing before in our first Freedom Rocks thread.   Don't worry pingles, since you signed up using my link, I will be teaching you the Bollinger Bands and RSI to time your entries but I cannot post it here because Mark is offering it for a fee by enrolling in his "Inverse Hedging" class. This nice powerful secret of ours is definitely a BIG EDGE from other Freedom Rocks users hehe.   :thumbsup2


 
Title: Re: Freedom Rocks: Forex Hedging (Part 2)
Post by: nailbiter on Apr 14, 2007, 08:50 AM
Thread locked for reaching 20 pages. New thread here (http://www.pinoymoneytalk.com/forum/index.php?topic=6205.0).