Forex Expert Advisors Forex Lightning an Unbiased Review ~ forex trading log

8:33 PM in 99, advisors, advsors, an, expert, Forex, lightning, review, unbiased, zone

Ending this week of heavy revieweing of recently released expert advisors I present you the Forex Lightning trading system. A website visitor left me a message on the websites chat a few days ago asking me to review the system and therefore I am writting this post to honour his request. Within the next few paragraphs I will talk about the evidence provided on the experts website as well as whether or not this evidence is able to backup the claims of profitability made by the author. I will also analyze the trading evidence provided and give you my opinon about the trading systems potential for long term profitability and whether or not I consider it worth buying and testing. Is the forex lightning the answer ? Well see within the next few paragraphs.

The Forex Lightning website must be one of the most simple websites I have seen selling a trading system. The website merely has two pages, one for the system and one for support with the first one being just a little bit more than two screens long. The systems page also contains the evidence of profitability provided by the author as well as some testimonials (which we cannot know to be true). The claims made are very simple with the expert showing some profit figures on the top left showing more than 1000% profit for the past three years of trading.

The evidence of profitability provided is not conclusive. There are two statements which are said to be "live" but have absolutely no investor access confirmation. Why wouldnt the author provide investor access or load the statements into myfxbook for investor access confirmation ? In my mind it seems that these statements are more the product of demo testing than live testing, proof of this seem to be the account numbers which have the length of demo and not live accounts for FXCM (however if this is not true Ill be glad to correct it when investor access is provided). The fact that the initial balance for the accounts is large (100K) also points out that the accounts may more likely be demo than live accounts. There is also the possibility that the statements have been made up since there is simply no verification available.

The trading statements are also very limited with only 1 or 2 months of trading results and no live updating ability (that I could tell). The average risk to reward ratio seems to be favorable (about 1:2) but there are some things within the statement that I dont fully understand such as the placement of orders with double lot size somthing which doesnt seem to be a Martingale strategy but the result of some other money management tactic given the fact that the amount of money is not doubled after loses but two limit orders with different lot sizes seem to be placed everytime.

I have to say that there is no evidence at all to backup the figures of profitability for past years given and even more, there is no evidence to say that the EA has been trading on live accounts or that it can achieve those targets in the long term. There are no investor access confirmed live accounts or 10 year backtests so that a full long term profitability analysis with back/live testing consistency analysis can be carried out. For this overwhelming lack of any reliable evidence I have to consider this system NOT worth buying and testing. Once live-update investor-access confirmed live accounts are added and 6 months of results can be compared with a 6 month period backtest with a 10 year backtest also available I will redo this review. In the meantime I think that the forex lightning system has no evidence to be called profitable and running it would be a pure bet with no true idea about the systems potential for long term profitability.

If you would like to learn more about automated trading and how you too can learn to trade with sound trading tactics using automated trading systems please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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Managing Money in Forex Trading A Practical Approach ~ forex trading learning

12:44 PM in a, advisors, an, approach, expert, forex, in, lightning, managing, money, practical, review, trading, unbiased

Yesterday I wrote a post about how successful forex traders develop their ability to make money and how anyone interested in making a living from trading should absolutely consider the managing of other peoples funds as the easiest way to achieve their financial freedom. The reason for this is that simply most people wont have the necessary amount of money to make a living (about 250-350K USD) with the risk levels necessary to preserve capital through the draw down periods which are characteristic of all long term profitable trading strategies. Today I want to write a post about the practical aspects of money management and the technical and legal aspects of this journey.

First of all, I consider that if you want to be a money manager you need to have a track record that shows net profitability through a statistically relevant amount of time. This means that you should have a real live account that can show a verified track record of at least 5 years. This will show that you are able to tackle a wide variety of market conditions and that your systems and abilities are able to both make and preserve capital. The initial balance of this account is actually not that relevant and even a 5 year, 1K account with net profitability will be enough.

What next ? Well, the most popular model for account management is done through a limited power of attorney in which you receive permission from a client to manage their funds but you dont have the ability to withdraw any money. Effectively either the broker or your client have to make the payments for you when they are due. Payments are usually made on new equity highs as a percentage of profit from equity high to equity high. For example, if an account was at 110 and then reached 120 the client made 10 and if you charge a 20% commission then you keep 2.

One of the most important aspects you need to consider here is that the limited power of attorney approach - even if it does not give you power to withdraw your clients funds - is a type of money management practice and it is therefore subject to the pertinent regulations. In the US - for example - you can manage up to 140K USD or 15 clients without becoming a CTA (Commodity Trading Advisor) but anything above that requires registration by law, bear in mind that the waive of registration also requires you NOT to advertise yourself as a money manager so you will be limited to a small crowd of investors (probably friends). This however only applies to US customers and to manage money from investors from other parts of the world you will need to deal with their own countrys regulations as you will be subject to the regulations of the customers home country.

Now, managing 140K from US customers is a very good start (even more if you have customers from other countries) but if you are truly serious about your business then you need to become a Commodity Trading Advisor. Registering requires you to pass a Series 3 exam and to pay almost 1000 USD in annual fees and this is therefore a step you may want to take only after managing your first small customer base for 2-3 years. Once you reach this point you will be able to start a business and manage a limitless pool of investors which effectively makes your income potentially VERY large. Even if you only manage an average yearly return of 10% (a return many new forex traders would laugh at), managing 20 million dollars this will already mean a 400K income for you at a 20% commission.

In conclusion, if you really want to live from trading and if you really want to make a lot of money from it then probably you will have to work hard for the next 8-10 years to perfect your ability to make money and to begin your journey as a successful money manager. This indeed sounds MUCH more realistic that what expert advisor and forex system sellers told you, doesnt it ?

If you would like to learn more about the use of automated trading systems to achieve success in trading and how you too can learn to code, evaluate and use your own systems based on sound trading tactics please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !

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