Forex Hacked

[educationiskey]

Apologies on the name mistake....

Seem's like no-one can find a system that keeps performing... I was speaking with a friend of mine who is very wealthy through trading... He's said if there is an automated trading system out there that works it would have to be a system that is updated and monitored week to week...

From my research FH was the only system that seemed to consistently perform.

As we know live accounts and demo accounts come back with completely different figures!

I seen an interesting software that profit limit was 4 pips with a tight stop... this seemed interesting as it was trading around 600 trades a month... Cant remember the name of it now! But they all seems to predict u will be a millionaire before the end of the year!

[Merrygoround]

Originally Posted by Merrygoround

According to Myfxbook of the hackedtodeath's setup I see an equity percentage of 65.98.

Equity is now down to 5k. If this were my account, I would be closing postions by now. If you ask me this is a gambler's strategy, not a trader's strategy. The end results could be spectacular, but no one in his right mind would place serious money to such degree of risk on a standard account. I think you did the right thing not to go through with this.

[rsmereka]

Originally Posted by Merrygoround

Equity is now down to 5k. If this were my account, I would be closing postions by now. If you ask me this is a gambler's strategy, not a trader's strategy. The end results could be spectacular, but no one in his right mind would place serious money to such degree of risk on a standard account. I think you did the right thing not to go through with this.

Agreed,

There is no way I will proceed with these FH settings. The amount of floating DD is just way too high. I think you are right calling it a gambler's strategy but then, again, the same could be said of what I am doing now with my live/real money account running my settings with just 2K of equity . It's just asking for trouble.

Unless I change VPS providers, I will let this strategy play out and we will find out when it blows (which I suspect will be soon).

Rick

[Dan]

I really like everything about FH except the occasional large floating DD and potential account meltdown. What if you had two accounts one running FH full time and the other on standby? Once the floating DD on the primary account got to a predetermined limit for floating DD stop trading and hedge until the price retraces. While waiting on the first account to retrace start trading on the secondary account. This should prevent the occasional huge Floating DD turning into a complete account meltdown. I am not trading with FH just giving a suggestion on a possible way to tame this EA. Any thoughts? Would this work?

Thanks,

Dan

[rsmereka]

Originally Posted by Dan

I really like everything about FH except the occasional large floating DD and potential account meltdown. What if you had two accounts one running FH full time and the other on standby? Once the floating DD on the primary account got to a predetermined limit for floating DD stop trading and hedge until the price retraces. While waiting on the first account to retrace start trading on the secondary account. This should prevent the occasional huge Floating DD turning into a complete account meltdown. I am not trading with FH just giving a suggestion on a possible way to tame this EA. Any thoughts? Would this work?

Thanks,

Dan

It may work,

Try it on a demo and see if it works for you.

The big DD in FH happens when a trend in the GBPUSD develops and there is not enough retracement to hit the TP . This is why FH settings with a big TP have so much trouble with floating DD. The key IMHO with FH is to keep the TP low. The FH site recommends 45 pips and some other people like me have a preference for 35. At 35 pip TP , it's unlikely (but possible) that a trend will develop that does not retrace that far.

There are two other strategies worth mentioning:

1. DWRR - which is advocated by ForexFBI, stands for double-up, withdraw, rinse and repeat (this strategy has been discussed here)

2. 50/50 - which I invented and will talk about here for the first time. It's where you take 50% of the profit out each month and leave 50% in to grow. The pros are: at some point , you will have withdrawn all of your initial capital and will be working with house funds and the account is always growing (unlike DWRR) which means that the profit is always getting larger. The cons are: it takes double the time of the DWRR strategy given the same monthly return so the 50/50 strategy is only suitable for very stable FH settings not really risky settings.

Rick

[rsmereka]

Reference

Rick

[Merrygoround]

The title of your last post is misleading. I thought that you had given up on FH alltogether.

Your Alpari demo is really something else. It manages to minimize losses time after time, even in the midst of a strong trend . My demo is still compiling sell-trades.

[rsmereka]

Originally Posted by Merrygoround

The title of your last post is misleading. I thought that you had given up on FH alltogether.

Your Alpari demo is really something else. It manages to minimize losses time after time, even in the midst of a strong trend . My demo is still compiling sell-trades.

Huh,

Am I missing something,

How is the title misleading?

Give up on FH altogether? How could I? I am running a live/real money account.



Rick

[Merrygoround]

It was the caged symbol right next to FH that got me confused for a moment. It should simply be HackedToDeath. It is of no consequence.

[Merrygoround]

Originally Posted by rsmereka

50/50 - which I invented and will talk about here for the first time. It's where you take 50% of the profit out each month and leave 50% in to grow. The pros are: at some point , you will have withdrawn all of your initial capital and will be working with house funds and the account is always growing (unlike DWRR) which means that the profit is always getting larger. The cons are: it takes double the time of the DWRR strategy given the same monthly return so the 50/50 strategy is only suitable for very stable FH settings not really risky settings.

Rick

By very stable FH settings I assume that you are referring to your Alpari demo. It took your demo almost 4 months to double up the original equity. If you plan on withdrawing half of the monthly earnings, it will take you even longer. I do not know how you can be so patient. My biggest fault is still being too impatient: intervening in an EA's trades, and ending up worse than before.