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Old 03-18-2008, 05:03 PM
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Muddyguy Muddyguy is offline
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Quote:
Originally Posted by AltosTrader View Post
I don't know what current status is but several of us lost money with GoFX.

Looked great for a couple of months and then just tanked.

Keep looking.
Hi,

Yes, I also lost money. I didn't like that very much. I spent some time going through the strengths and weaknesses of trading and have a couple observations.

First, one must control for risk of loss. Things happen in the market and capital preservation must be an absolute priority.

Second, in most trading there is room for judgment error. For example, my grid trading program is fabulously profitable when the trader correctly anticipates the market and sets up the grid appropriately (long/short/countertrend/whatever). But, if the judgment is poor, the results will be poor. Further, a team tends to have better judgment than an individual - or at least better consistency.

To address these issues I have done three things.

First, I have designed a capital preservation structure that eliminates any exposure to trading losses. Initial capital is preserved no matter what the trading results.

Second, I have identified an experienced trading team which has a long term steady track record and a good success rate.

Third, I have spent five months developing my latest robot to the point where it runs almost completely autonomously with very little user interaction in both trending and ranging markets. There have been a LOT of experiments and testing to get this done. It is not sexy and there is very little for the user to do, but it grinds out the profits at the rate of 1% per day-ish. For example, last night it returned a little over 2% net booked with the account now flat. I am just putting the finishing touches on it this week.

I have combined these three parts with a couple other bits, and created a company which will use both trading systems and the capital preservation strategy. The upside could be very, very good, the downside is eliminated.

Take care,
Bill

Last edited by Muddyguy; 03-18-2008 at 11:55 PM.
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