ForexMorningTrade System

[egodspeed]

Money management

Please stop looking at the recent losses and consider proper money management in your path to currency profit greatness. Here are some surprising numbers with money management in place (I'm NOT talking about the built-in MM in FMT):

Assuming...
20 trading days,
a starting balance of $1,000,
5% risked per trade,
FMT set at 40TP/40SL only (no BE and NO changing these numbers throughout the month),
investing 10% of the previous trade's profit into your next trade,
here are the results in various scenarios:

1) If you had an exact 50% win ratio, you would LOSE 17+% over 20 days.

2) HOWEVER, if you had an exact 66% win ratio, you would GAIN 118+%. Heck, if you won all month and ended with six straight losses, you would still be over 118+%.

3) If you had an exact 66% win ratio and instead of -40pip losses, those were all +5pip winners, you would end up with a gain of over 690% ($6,900+ total profit). Highly unlikely, but you never know.

If somebody else can confirm whether or not this math is right, please do. Otherwise, it seems as if money management is the key to success with any trading strategy, including FMT. It is NOT just the strategy itself. Your strategy needs to have a fairly successful win ratio, you need to reinvest a portion of your profits in subsequent trades, and you CAN'T change your trading rules.

Have a nice weekend everyone!

 

[3PO]

Hi,

I have just made an Excel spreadsheet with simple Money Magement ideas found on the Internet:
1. If the business in going well then you should take higher risk in your investment and vice versa for losses.
2. If you win on a certain trade then you take a certain percentage of your profit and increase with it your risk and vice versa for losses.

I think it is very important that even having a los or even a series of losses we have to stick ourselves to the rules and stay in business. (An interesting article to this: http://www.tradeblog.profitscenario.com.au/?p=716)
I filled the fields with the data of Mark's Trading journal of March 2011.
I think it can be interesting and if you like it you can adapt to your own trading style and risk taking level but if you do than you do it on your on risk ;-)

3PO

 

[barebud]

The beauty of FMT is in its simplicity.

Just for setting a trade with such simple rules as 40tp, 40sl, then leaving the trade to run:
Without needing to understand pivot points, support or resistance
Without needing to worry about NFP, Housing starts, chopstick production
Without needing to argue about trading Bank Holidays, April, August, December....
Without needing to worry whether we'll reduce TP this week, or widen SL next....
or set break even at 20 or 24.........

560 pips of profit in the last 6 months
2040 pips of profit in the last 12 months :clap:

Surely the secret is in being disciplined, not back testing until you crash your Windows.

I have a strong conviction that fortunes can be made by this system, it's quadrupled my money since I bought it, and that includes taking lots of hits over Christmas.

I know somebody who has meddled with his settings all the time he has ever owned it, and he's wondering why his account isn't growing. Maybe there is a high % of people who bought the system but don't use it now, and maybe there is a group of people who are doing well from it and prefer not to take any notice of any other influence that shakes their confidence.

Can you share what % Risk you use?

 

[deserteagle]

Hi, here the delayed weekly update

Highlights:

- Sets Desert II y Combo are doing well in April (+167 y +101).
- Set Desert Combo goes 19 profitable trades since the last loss. :clap:

Good luck next week.

 

[podberry]

Hi, here the delayed weekly update

Highlights:

- Sets Desert II y Combo are doing well in April (+167 y +101).
- Set Desert Combo goes 19 profitable trades since the last loss. :clap:

Good luck next week.

Hi deserteagle

Thanks for the stats - I was personally going to add the old 40/40 to my trading next week alongside the new FMT, however, after looking at the stats it had me running for the hills. So I definitely won't be doing that. - Your stats are a great help - Cheers

 

[duncmac]

Hi, here the delayed weekly update

Highlights:

- Sets Desert II y Combo are doing well in April (+167 y +101).
- Set Desert Combo goes 19 profitable trades since the last loss. :clap:

Good luck next week.

could you tell me what Desert Combo is? is it a setting for FMT?
would appreciate it . Thanks

 

[bottomdollar]

HI Desert Eagle

Appreciate your testing with new parameters.. is there an easy way for you to test this with more data going back say 2 years or more to get an idea of how well it performed? That would be interesting to see.

Thanks!

 

[deserteagle]

@Podberry
Thank you, it seems Old FMT is not doing as well as others for 2011.

@duncmac
Yes, Desert Combo is just a setting for FMT, but it uses different sets for long and short.

@bottomdollar
In page 833 I have attached an excel with backtests (not manuals like this sheet) since January 2010 - February 2011.

Cheers

 

[slaredo]

@Podberry
Thank you, it seems Old FMT is not doing as well as others for 2011.

@duncmac
Yes, Desert Combo is just a setting for FMT, but it uses different sets for long and short.

@bottomdollar
In page 833 I have attached an excel with backtests (not manuals like this sheet) since January 2010 - February 2011.

Cheers

Very nice file DESERTEAGLE, very usefull to understand
2 questions:
1) why in the file no trade since 2 weeks in "desert eagle" settings
2) all thos resutls are at 6:30, I suppose ? do you have something at 6h15, 6h45 like hammy, seems also to be a quite interesting variable in the settings
3) what is your experience with other pairs ?

Thanks

 

[deserteagle]

Very nice file DESERTEAGLE, very usefull to understand
2 questions:
1) why in the file no trade since 2 weeks in "desert eagle" settings
2) all thos resutls are at 6:30, I suppose ? do you have something at 6h15, 6h45 like hammy, seems also to be a quite interesting variable in the settings
3) what is your experience with other pairs ?

Thanks

2 o 3 questions?

1- cells with empty values means no Trade, cells with zero value means BE at 0.
2- I just trade 6:30
3- I have seen some nice results 90 minutes before NY opening, but I do not have final conclusions.

 

[RobM.]

Spread Betting with FMT / Smart Live Markets (SLM)

Hi all

Can anyone confirm my findings re the SLM live platform, please, so that I can start trading with SLM?

I understand the SLM-SB DEMO comes set-up ready to use with EAs but one has to enable the use of EAs, from the settings section, for the SLM-SB LIVE platform. This I have done.

It seems to me that on SLM-SB, FMT money management does not work and therefore risk, lot size etc must be calculated manually and is set using the ‘Max Lots’ setting.

This is no big deal; these things are easily calculated and one can compound +/- manually.

It’s just that there has been a reasonable amount of discussion on here about trading with SLM recently and nobody has mentioned these issues. I’m hoping somebody can confirm my observations. The SLM help-desk did suggest that many EAs will work without problems.

Thanks…

 

[kgk]

I have two live accounts with different brokers: IBFX mini and PFG Direct. It appears that they close @ different times on Friday - causing different closing prices - 1.62937 and 1.63235 - with PFG closing roughly 30 pips above IBFX!! Is it possible that this has any sort of effect on the FMT indicators, come market open? Interesting to say the least.

kgk

 

[podberry]

I have two live accounts with different brokers: IBFX mini and PFG Direct. It appears that they close @ different times on Friday - causing different closing prices - 1.62937 and 1.63235 - with PFG closing roughly 30 pips above IBFX!! Is it possible that this has any sort of effect on the FMT indicators, come market open? Interesting to say the least.

kgk

Hi kgk,

You also need to determine when the platform starts on a Sunday as well. As far as I know this will have an impact on both indicators if they are close to the lines (indicators) on a Monday morning, I have the same problem every Monday as Oanda has 5 more hours of data than most platforms gathered on a Sunday.

What I do is watch at least 3 platforms eg. (Alpari UK, SLM UK and Oanda) If all three are showing a buy or sell then alls well, however if I notice Alpari and SLM are showing a buy and Oanda a sell then I don't trade.

This 'skewing' happens to everyone on a Monday, so don't feel out, you need to make the call before your EA triggers or let it trade no matter what, the FMT veterans will tell you that it all evens out over time - You need to make the call

to add - By Tuesday morning all the broker platforms as usually in sync.

 

[tkbieber]

Hi kgk,

You also need to determine when the platform starts on a Sunday as well. As far as I know this will have an impact on both indicators if they are close to the lines (indicators) on a Monday morning, I have the same problem every Monday as Oanda has 5 more hours of data than most platforms gathered on a Sunday.

What I do is watch at least 3 platforms eg. (Alpari UK, SLM UK and Oanda) If all three are showing a buy or sell then alls well, however if I notice Alpari and SLM are showing a buy and Oanda a sell then I don't trade.

This 'skewing' happens to everyone on a Monday, so don't feel out, you need to make the call before your EA triggers or let it trade no matter what, the FMT veterans will tell you that it all evens out over time - You need to make the call

to add - By Tuesday morning all the broker platforms as usually in sync.

What does broker start time have to do with anything? So what if one starts at 5:00 p.m Eastern on Sunday evening and another starts at 7:00 p.m. What matters is London market opening their doors Monday morning at 8:00 a.m UK time. That's 5 or 6 hrs after your broker opens it's doors. Indicators are well in their trends or where ever they are going to be to trigger or not trigger a trade.
I may be wrong but I don't know of a broker waiting till Monday midnight eastern to opening it's doors?

 

[podberry]

What does broker start time have to do with anything? So what if one starts at 5:00 p.m Eastern on Sunday evening and another starts at 7:00 p.m. What matters is London market opening their doors Monday morning at 8:00 a.m UK time. That's 5 or 6 hrs after your broker opens it's doors. Indicators are well in their trends or where ever they are going to be to trigger or not trigger a trade.
I may be wrong but I don't know of a broker waiting till Monday midnight eastern to opening it's doors?

tkbieber, Hi, We had a discussion about this scenario about 3 weeks ago on this forum.

I will clarify again for your benefit and others:

Some brokers like Oanda start their data feeds on a Sunday at least 5 hours before the majority of brokers. If Oanda has traded 5 hours more than the others then the Indicators that we use (can't reveal on this forum) would be 5 hours ahead, this in essence make them either above the line or below the line compared to other brokers. If you have the EA version you will not have the indicators as a visual reference, however if you have the manual trading system with the indicators and compare it to another broker with a different start time you will see the difference.

I cannot make it any more clearer than that. :-0

 

[kgk]

tkbieber, Hi, We had a discussion about this scenario about 3 weeks ago on this forum.

I will clarify again for your benefit and others:

Some brokers like Oanda start their data feeds on a Sunday at least 5 hours before the majority of brokers. If Oanda has traded 5 hours more than the others then the Indicators that we use (can't reveal on this forum) would be 5 hours ahead, this in essence make them either above the line or below the line compared to other brokers. If you have the EA version you will not have the indicators as a visual reference, however if you have the manual trading system with the indicators and compare it to another broker with a different start time you will see the difference.

I cannot make it any more clearer than that. :-0

Well said. thanks for taking the time to explain.

 

[Remraf]

Spread Betting with FMT / Smart Live Markets (SLM)

Hi all

Can anyone confirm my findings re the SLM live platform, please, so that I can start trading with SLM?

I understand the SLM-SB DEMO comes set-up ready to use with EAs but one has to enable the use of EAs, from the settings section, for the SLM-SB LIVE platform. This I have done.

It seems to me that on SLM-SB, FMT money management does not work and therefore risk, lot size etc must be calculated manually and is set using the ‘Max Lots’ setting.

This is no big deal; these things are easily calculated and one can compound +/- manually.

It’s just that there has been a reasonable amount of discussion on here about trading with SLM recently and nobody has mentioned these issues. I’m hoping somebody can confirm my observations. The SLM help-desk did suggest that many EAs will work without problems.

Thanks…

Hi RobM, I've had a SLM demo account for a couple of months now and whilst it took a bit of fiddling with it seems to work ok with MM and FMT EA. In the UK it's a 7.30am start on their platform (6.30 London open), I have Lots set to 1.0, MM is True, Lots Decimals is 2, Maximum Lots is 50.0 and Long Candle is True, i'll probably get it set up for live trading after Easter. Regards.

 

[RobM.]

Hi RobM, I've had a SLM demo account for a couple of months now and whilst it took a bit of fiddling with it seems to work ok with MM and FMT EA. In the UK it's a 7.30am start on their platform (6.30 London open), I have Lots set to 1.0, MM is True, Lots Decimals is 2, Maximum Lots is 50.0 and Long Candle is True, i'll probably get it set up for live trading after Easter. Regards.

Thanks Remraf

I'll have another look.

 

[tkbieber]

tkbieber, Hi, We had a discussion about this scenario about 3 weeks ago on this forum.

I will clarify again for your benefit and others:

Some brokers like Oanda start their data feeds on a Sunday at least 5 hours before the majority of brokers. If Oanda has traded 5 hours more than the others then the Indicators that we use (can't reveal on this forum) would be 5 hours ahead, this in essence make them either above the line or below the line compared to other brokers. If you have the EA version you will not have the indicators as a visual reference, however if you have the manual trading system with the indicators and compare it to another broker with a different start time you will see the difference.

I cannot make it any more clearer than that. :-0

Ok, yes that is correct. I thought we wee talking about when the system actually needs the indicators at 6:30 uk time. I personally never look at the indicators much before then so don't care about Sunday start time as a lot changes by when we trade anyway.

 

[barebud]

Ok, yes that is correct. I thought we wee talking about when the system actually needs the indicators at 6:30 uk time. I personally never look at the indicators much before then so don't care about Sunday start time as a lot changes by when we trade anyway.

So I assume that would give the OANDA indicator signals a little more strength and relativity on a monday morning trade than those with another broker whose indicators are lagging behind a little?