Genial Invest

[Dan]

Will this work on US based accounts with all of the regulations? Thanks in advance.

Dan

[rsmereka]

Originally Posted by Dan

Will this work on US based accounts with all of the regulations? Thanks in advance.

Dan

Hi Dan,

If I think about all those silly NFA rules, I think the only one that would cause a problem would be the FIFO rule. Since Genial Invest opens a basket of trades and does not necessarily close them in the same order, this would be a problem with an NFA broker . Now there are some NFA brokers that have gotten around the FIFO rule so you might want to check on that.

The hedge rule is not involved because GI does not hedge . The mandatory 50:1 leverage also might pose a problem especially when GI goes into deep DD.

Bottom line, probably not a good idea to have an NFA broker for Genial Invest. IMHO, there is never a good reason to use an NFA broker .

Rick

[rsmereka]

Hi Dan,

If I think about all those silly NFA rules, I think the only one that would cause a problem would be the FIFO rule. Since Genial Invest opens a basket of trades and does not necessarily close them in the same order, this would be a problem with an NFA broker . Now there are some NFA brokers that have gotten around the FIFO rule so you might want to check on that.

The hedge rule is not involved because GI does not hedge . The mandatory 50:1 leverage also might pose a problem especially when GI goes into deep DD.

Bottom line, probably not a good idea to have an NFA broker for Genial Invest. IMHO, there is never a good reason to use an NFA broker .

Here is a list as at Oct 25, 2010 of non-NFA brokers that will accept US clients.

Rick
Friends don't let friends use NFA brokers

[Dan]

Originally Posted by rsmereka

Hi Dan,

If I think about all those silly NFA rules, I think the only one that would cause a problem would be the FIFO rule. Since Genial Invest opens a basket of trades and does not necessarily close them in the same order, this would be a problem with an NFA broker . Now there are some NFA brokers that have gotten around the FIFO rule so you might want to check on that.

The hedge rule is not involved because GI does not hedge . The mandatory 50:1 leverage also might pose a problem especially when GI goes into deep DD.

Bottom line, probably not a good idea to have an NFA broker for Genial Invest. IMHO, there is never a good reason to use an NFA broker .

Here is a list as at Oct 25, 2010 of non-NFA brokers that will accept US clients.

Rick
Friends don't let friends use NFA brokers

Thanks Rick,

I appreciate your advice, as always. I have been attempting to manually trade lately and I have again come to the conclusion that I am not very good at it. I will do decent for a while then go in the negative. I am too much of an emotional trader.

This EA looks promising so it has sparked new interest in automated trading for me. I will take a look at the list of brokers you provided and hopefully find one that fits. Thanks again and I wish you continued success with this EA.

Dan

[rsmereka]

Originally Posted by Dan

Thanks Rick,

I appreciate your advice, as always. I have been attempting to manually trade lately and I have again come to the conclusion that I am not very good at it. I will do decent for a while then go in the negative. I am too much of an emotional trader.

This EA looks promising so it has sparked new interest in automated trading for me. I will take a look at the list of brokers you provided and hopefully find one that fits. Thanks again and I wish you continued success with this EA.

Dan

You are Very Welcome Dan,

I know the emotional issues with manual trading. I have attempted to trade manually many times myself. I think you will be interested in the manual USDCAD strategy that I have been trading for the past 6 weeks. I am having very good success with it although at 2% risk, it's return is only about 4-5% per month. It trades only once a week. You can take a look at my progress here.

As far as Genial Invest is concerned, I really think it is in your best interest to get a non-NFA broker . I know that there there was some recent discussion about FinFX in conjunction with MegaDroid. Take a look at the recent posts in the MegaDroid thread. pipsbuster is using this broker for MegaDroid.

Rick

[Dan]

Originally Posted by rsmereka

You are Very Welcome Dan,

I know the emotional issues with manual trading. I have attempted to trade manually many times myself. I think you will be interested in the manual USDCAD strategy that I have been trading for the past 6 weeks. I am having very good success with it although at 2% risk, it's return is only about 4-5% per month. It trades only once a week. You can take a look at my progress here.

As far as Genial Invest is concerned, I really think it is in your best interest to get a non-NFA broker . I know that there there was some recent discussion about FinFX in conjunction with MegaDroid. Take a look at the recent posts in the MegaDroid thread. pipsbuster is using this broker for MegaDroid.

Rick

Rick,

It looks like FinFX only offers 200:1 leverage . Do you think this is enough to handle the occasional high dd?

Dan

[rsmereka]

Originally Posted by Dan

Rick,

It looks like FinFX only offers 200:1 leverage . Do you think this is enough to handle the occasional high dd?

Dan

Hi Dan,

Well let's calculate it out. The last Genial Invest basket this week for me consisted of 8 open trades totaling 297,000 units (it was a short so that was 297,000 US dollars). At 500:1 leverage , the margin I paid was $594.00. My balance at the start of the trade was $25,263.00 so the margin represented 2.35% of my equity (594/25263). If my leverage was 200:1 instead of 500:1, the margin would have been $1,485.00 which represents 5.88% of equity.

If the basket DD hit 50% (the worst DD I have yet seen including the margin [at 500:1]), you would be facing an extra 3.53% of DD at 200:1 leverage .

So, in theory, the extra 3.53% of equity being used would not make a difference unless the DD exceeded, let's say 75%.

The above calculations are based on using the GI high risk setting.

If you plan to go with FinFX, start small. The smallest that Genial Invest allows now is 10K although I have seen recent accounts opened with less equity than 10K. According to this page, GI allows you to start a test of 15 days at 1K and 10K after that.

You could also use the GI normal risk setting which will lower the lot size and the margin requirements.

Rick

[Dan]

Originally Posted by rsmereka

Hi Dan,

Well let's calculate it out. The last Genial Invest basket this week for me consisted of 8 open trades totaling 297,000 units (it was a short so that was 297,000 US dollars). At 500:1 leverage , the margin I paid was $594.00. My balance at the start of the trade was $25,263.00 so the margin represented 2.35% of my equity (594/25263). If my leverage was 200:1 instead of 500:1, the margin would have been $1,485.00 which represents 5.88% of equity.

If the basket DD hit 50% (the worst DD I have yet seen including the margin [at 500:1]), you would be facing an extra 3.53% of DD at 200:1 leverage .

So, in theory, the extra 3.53% of equity being used would not make a difference unless the DD exceeded, let's say 75%.

The above calculations are based on using the GI high risk setting.

If you plan to go with FinFX, start small. The smallest that Genial Invest allows now is 10K although I have seen recent accounts opened with less equity than 10K. According to this page, GI allows you to start a test of 15 days at 1K and 10K after that.

You could also use the GI normal risk setting which will lower the lot size and the margin requirements.

Rick

Thanks Rick,

I guess the leverage does not make that much of a difference. I have narrowed it down between FinFX and SmartTradeFX. SmartTradeFX is based out of Canada which makes me feel a little better about my money being closer. I will let you know how everything goes. Thanks again.

Dan

[rsmereka]

Originally Posted by Dan

Thanks Rick,

I guess the leverage does not make that much of a difference. I have narrowed it down between FinFX and SmartTradeFX. SmartTradeFX is based out of Canada which makes me feel a little better about my money being closer. I will let you know how everything goes. Thanks again.

Dan

Hi Dan,

I agree. If it were me, I would go with SmartTradeFX. It's closer and less likely to be a scam although their lack of being registered with any regulators concerns me.

Rick

[Galaxy]

Rick

Can you recommend a VPS? as i'm about to sign up for Genial Invest

Jason