Archives for posts with tag: Forex trading

StarfishFX Daily Outlook

Thursday, September 19, 2013

 

Highlights:

The dollar plummeted against most major currencies on Wednesday after the Federal Reserve said it was making no changes to its USD85 billion monthly bond-buying program.

1.      Many investors were expecting the U.S. central bank to trim the amount of bonds it purchases a month at least by USD10 billion.

2.      In U.S. trading on Wednesday, EUR/USD was up 1.07% at 1.3501.

3.      The Federal Reserve on Wednesday left its key benchmark lending target, the fed funds rate, unchanged at 0.25% and kept its USD85 billion monthly asset-purchasing program in place.

4.      The Fed said the economy was showing signs of improvement though it still faced enough headwinds to prompt monetary authorities to hold off on tapering its asset purchases, which weaken the dollar to spur recovery.

5.      The Fed said in a statement that household spending and business fixed investment have improved, while the housing sector has been strengthening as well.

6.      However, mortgage rates have risen, while U.S. fiscal issues are restraining economic growth.

7.      “Taking into account the extent of federal fiscal retrenchment, the Committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program a year ago as consistent with growing underlying strength in the broader economy,” the Fed said.

8.      “However, the Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Fed said, adding it would continue to buy USD40 billion a month in mortgage-backed securities and USD45 billion in longer-term Treasury securities.

9.      “Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee’s dual mandate.”

10.   Fed Chairman Ben Bernanke told a press conference afterwards that he felt past and present rounds of asset purchases have been effective, though he added government inability to tackle debt and deficits, including calls in Congress to shut down the government due to fiscal and policy disputes, concerned monetary authorities.

11.   Market participants largely ignored Commerce Department data revealed that U.S. building permits fell by 3.8% to 918,000 units in August from 954,000 in July. Analysts were expecting building permits to fall by 0.4% to 950,000 units last month.

12.   The Commerce Department added that U.S. housing starts rose 0.9% to 891,000 units last month from a downwardly revised 883,000 units in July, missing expectations for a 3% increase to 917,000 units.

13.   Elsewhere, the greenback was down against the pound, with GBP/USD up 1.25% at 1.6102.

14.   The dollar was down against the yen, with USD/JPY down 0.99% at 98.14, and down against the Swiss franc, with USD/CHF trading down 1.26% at 0.9144.

15.   The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.78% at 1.0216, AUD/USD up 1.36% at 0.9482 and NZD/USD trading up 1.37% at 0.8351.

16.   The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.12% at 80.39.

Source: Starfishfx.com — Simply sign up for a free Demo account and receive Daily Market Analysis!

After some 9 months of using the Leo EA since Nov 2012, I’m very delighted to share that I have finally got myself out of the Red and in the Black!

Ever since I began my Forex Trading journey with the Leo Automated Trading Software, I must admit that it hasn’t been all smooth sailing. Barely 2 months into trading in January 2013, I lost about 60% of my capital because of Overtrading.

Since then, a few things have changed that have helped me in my Forex Trading journey.

With the newest version of the Leo Forex Robot, my profits have increased and my risks lowered by at least two fold. The Robot is able to achieve about 5-10% monthly returns, with a drawdown of only 10% (about HALF of the industry average!).  This newest version of the Leo Forex Trading Software has been pivotal to my quick recovery, which otherwise would have taken at least 6 more months!

I am sincerely grateful to Edward Khoo, the brains behind the Leo Forex Automated Trading Software, for his efforts to constantly improve the trading software, and of course for this wonderful opportunity! Thank you!

 

Click here to sign up for our FREE Leo EA Introduction Workshop and learn how to trade Forex with NO EFFORT at all!

Now it’s time for some action; let’s take a look at some trades! 

For all three backtest reports, an initial deposit of $10,000 is used.

In this first Strategy Tester Report, we ran the backtest during a Medium Risk market condition, and tested the Leo Forex Robot to the maximum limit. Instead of the recommended 0.05 initial lot settings, we used 0.4. See the results for yourself below!

Super Leo EA v308 Strategy Tester Report - STRESS TEST

Super Leo EA v3.08 Strategy Tester Report – STRESS TEST

With just a $10,000 deposit, the Forex Automated Software yielded a whopping $16,800 in just 2 months!

Initial lot size 0.4
Profit per month 84%
Win trades 77.71%

DISCLAIMER: The above HIGH RISK settings were used purely for TESTING purposes, and should NOT be used for your personal trading! The recommended initial lot size for a US$10,000 account is 0.05.

 

Click here to sign up for our FREE Leo EA Introduction Workshop and SEE it for YOURSELF!

In this second Strategy Tester Report, we’ll be running the Leo EA through a period of High Risk market conditions; the 2008 Financial Crisis. During the worst month of this crisis, GBPUSD slid about 2000pips, the largest swing in its history. We used a conservative setting of 0.02 initial lots.

Super Leo EA v308 Strategy Tester Report - Financial Crisis

Super Leo EA v3.08 Strategy Tester Report – Financial Crisis

Ignoring the huge jump at the end of the period, these settings gave us about $3,000 returns over a period of 17 months, giving us an annual return of about 22%! The Leo EA makes money for you even during times of major crisis!

Initial lot size 0.02
Profit per month 1.8% (5.47%)
Win trades 77.88%

 

In the third and last Strategy Tester Report I will be sharing with you today, we’ll be running the Leo Robot through a period of Medium/Low risk market conditions and using recommended settings of initial lot size 0.05 for $10,000.

Super Leo EA v308 Strategy Tester Report

Super Leo EA v3.08 Strategy Tester Report

As you can see for yourself, the Leo Forex Trading Software managed to give us a Net Profit of $2,584.58 over a short period of 2 months. That’s an average of 12.92% per month, at only a 15.23% drawdown!

Initial lot size 0.05
Profit per month 12.92%
Win trades 68.9%

Click here to sign up for our FREE Leo EA Introduction Workshop and GROW your FORTUNE today!

With that, I’d like to end off this post with…

Oh yeah, I'm IN THE BLACK!

Everything looked so far so good and the bot made about 10% over the first 5 weeks, and I even managed to withdraw the profits into my bank account here in Singapore within 2 days.

Towards the end of December 2012, talks on the Fiscal Cliff were ongoing and made the market much more volatile than usual, but I thought nothing of it. At this point, I started to become complacent and began to monitor my accounts less frequently. I imagined that the robot was a bulletproof product able to withstand any kind of market change, and continue to generate passive income for me indefinitely.

I mean, the bot was said to be able to withstand a drop of 300pips with my settings, and I bet I would be able to do something if I saw aggressive movement in the market. But I was oh so wrong.

On the 4th of January, I received a call from my Aunt saying to reduce the starting lot size (a parameter of the bot) of the bot, because the market was on a downslide and the robot was placing Buy positions at an increasing rate & weight. It does this so that the buy line moving average will drop & all positions can close for a profit if the market turns up just slightly.

So I quickly logged into the VPS hosting my trading accounts, and saw that each of my $10,000 account had a floating P/L of about -$4000, and the positions placed by the bot were of exponentially increasing lot sizes. I had prepared myself for this day, when I would have to intervene with the robot’s decisions and to stop my accounts from going bust! Well guess what, I was dumbfounded. I had no idea what to do! All I knew how to do was to login to my VPS, and to tweak the starting lot size, and to close positions. I had no idea what most of the buttons in my MT4 platform was used for.

I did what I could and reduced my starting lot size from 0.10 to 0.02, but it was too late. By the end of the day, GBP/USD slid 3 points from 1.63 to 1.60, and 3 of my 4 accounts were wiped to about $1000 left (I got lucky because I turned off 1 of the accounts a few days prior and all my funds in there are still intact).

I knew I was risking all the money I deposited, but then again, I thought I could have easily managed any situation that comes up. Barely 2 months into this, and I got myself into a $23,000 hole! What was I thinking?? I was so engulfed with the idea of “free” money and passive income and rushed into this investment without even learning how to operate the robot properly. I realised I had no idea how to manage a crisis if one were to ever appear!

I felt really stupid and to say the least, it must have been one of the most depressing days of my life.

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