Forex Trading - View Single Post - Conservative LR/HR (low risk, high recovery factor) Forex trading concept

Forex LR/HR · #2 (**permalink**) 07-22-2007, 10:19 PM

General remarks

• For keeping spread costs low it’s suggested to either use low spread brokers (usually ECN brokers) or futures currency contracts (CME) for executing the trades.
• It’s recommended to first try this approach on a demo account to get used to the concept and your platform.
• Results will be reported both in pips and percentages. Most of you will be aware of the fact that pip accounting is in many cases wrong. Thus all results will be converted in “eur/usd” equiv. pip units.
• The system will never add new contracts to an already opened position (no average down nor up).
• this offer is for serious traders understanding and estimating the importance of consistency, low drawdowns and high “average loss” turnover or recovery factor and not for those believing providers promising totally unrealistic hundreds of pips by using several tricks like

risking large drawdowns (large S/L)
adding contracts to already loosing positions
multiplying the pip profits by the lot number (pip inflating accounting) instead of referring to profits per lot
not considering spread and other costs
etc.

• The system has been offered since about 3 months now for free to a small number of subscribers and will continue to be free for the next 3-5 weeks. During that time users can get used to the necessary steps and processes on how to follow the concept.
• All trades have been reported (about 200 verifiable trades) with exact entry and exit prices (after spread/net of spread) and P/L results in pip or “eur/usd” equiv. pip units for all closed trades.
• Sound alert is available when a signal is triggered.
• All transcripts from previous trading days are online available.
• The room is running by using the echat software (is free and can be downloaded under the following link http://www.ensignsoftware.com/ftpfiles/setupechat.exe, room #29). Echat is a very easy and technically stable software solution with some very interesting features like sound alerts or online transcripts from all previous trading days, etc.
• You don’t need to be in front of PC all the time, as you can set your own sounds alerts for getting notified when a signal is triggered.

How to apply for the service ?

• For applying to the service you can just send an email to the following address (forumsplatform_chat@yahoo.com) by mentioning the nick name you got during the echat software installation.

Are any plans to apply the concept to further financial instruments?

Yes, the system has been manually tested and forward live traded on stock indices futures with even greater success as on forex. Monthly performance on futures contracts can get as high as 150% on initial overnight margin (interactivebrokers margins used)

For how long has the system been tested ?

• It has been developed towards the end of 2006 and has been forward traded during the last 6 months with excellent results. Unfortunately and because of it’s complexity it’s not possible to run any automated backtests as it’s composed of many different components making it impossible to automate all of them. Further difficulties for back testing are related to news releases. Manual backtests and forward live trading results have fulfilled all requirements for consistent and smooth performing with as low as possible drawdowns and high recovery ratios. There has been only one week with negative performance and that only because of a wrongly managed position

What is the subscription price ?

• The monthly nominal fee is 10'000 $ (reffering to institutional customers) . For keeping quality high and avoiding any other effects affecting the performance, it’s planned to keep the number of subscriptions not higher than about 5-10.
• As the highest priority is to offer quality and subscribers being happy about the service, if for any reason the monthly performance becomes negative you can choose between getting a fee refund or the next month for free.

Administrative

• Subscriptions are not updated automatically. The deadline for updating the subscription for the next month is always the actual month’s last Friday 12:00 GMT. In case of still available spaces there will be an announcement here in the forum on same day at 16:00 GMT. If interested in subscribing please just send an email with your nickname (to get one first you have to setup the software). Thereafter and as long as spaces are available (new email applications will be considered according to their time stamp) you will receive instructions on how to proceed with payment (Paypal) for getting a password.
• During the year I’ll be on vacations for about 4-5 weeks. All absences will be announced to subscribers in advance and there will be no charge for these weeks. During the months I’ll be on vacations, the fee will be reduced according to the time being absent (pro-rata). For example if I’m going to be out in august for two weeks, then the august fee will be only half of the nominal one, etc. If you are going to be in vacations but you prefer to keep a space occupied for you, it’s important to proceed with payment for the month you will be out but once coming back you will receive the upcoming month for free ( this can happen only once during a calendar year). Please understand that for avoiding very complicated administration processes, applications are available only for full monthly subscriptions. If for example you plan to be out for 2 weeks during a particular month, then it’s important to decide whether it’s better to apply for the monthly subscription or to skip that particular month
• Please understand that these performance figures presented here are after considering the best available information. Though this should not be understood as a guarantee that it will be exactly the same every week and month. There will be times with results over performing the above numbers and others under performing them.
• New email applications will be considered according to their time stamp