Recently, we have been noticing very interesting facts about the executions of trades in different broker accounts and how they manipulate the trades when an account starts making profit consistently. It happens almost in all brokers less or more.
For example, after this Forex4you account made profit for few weeks, now the broker is delaying the trades up to 4 to 5 minutes before execution. But our system is still able to make profit with it mainly because we are not using the system directly with this broker. Rather we are using a trade copier to copy trades from one of our master account to multiple live accounts and hence, broker can't do anything in this case.
We want to update that apart from this account, we are already running live accounts with different brokers. But since these accounts belong to our clients and these are using low risks and hence, we have not published any such accounts in myfxbook.
So those traders who are interested in our systems we highly recommend to join our fund management instead of using our EA directly in live accounts. Because directly running the EA live account is always risky and of no use since the EA doesn't have any control over what the broker does in the backend.
But very soon we might publish our own live account with another good broker to show the actual high profit of this trading system.
As we promised in our previous threads and posts we have added few more live accounts with different risk set ups. So we have received a lot of emails regarding the difference between the accounts and their trading results. This is very difficult and very long to explain to a normal trader and so we will explain it in multiple posts.
First of all, all the accounts which use the first name 'Final Holy Grail' use the same trading system and in fact, we directly copy the same trades to all the accounts from one of our master account where our algo is running. But in each account we have used a different risk set up and different maximum Drawdown % or equity protection % based on thorough understanding, discussion and agreement with the investor to whom the account belongs to.
So we have divided all our accounts into 3 categories: 1.Medium Risk or M series like M1,M2,M3,.....titled for each account under this category 2.Low Risk or L series like L1,L2,L3,...titled for each account under this category 3.High Risk or H series like H1,H2,H3..titled for each account under this category
For now we have added only 1 account for medium risk and 1 account with low risk and we have not added any account for high risk. We might add more accounts under these categories and also, under high risk categories.
We want to repeat that each account is protected by a specific equity protection % which is the maximum floating drawdown % allowed in that account and in case, that drawdown will reach, then all trades will be force closed at loss. So for that particular day the net loss will be same as maximum drawdown % as agreed with the investor from the beginning of trading.
Now, the main difference between Medium risk and Low risk is that for the same maximum drawdown % or equity protection % what is the probability of hitting the equity protection?
1. In medium risk set up, the probability of NOT hitting the equity protection is around 70% to 80%. But still there is a 20% to 30% chance is there that the equity protection might be hit at sometime in future and in case, if it happens, then it will take at least 1 month to recover that loss. So all accounts with ending name 'M' like M1,M2 belongs to this category.
2.In low risk set up, the probability of NOT hitting the equity protection is around 99% and so there is almost no probability or very very low chance of the equity protection to be hit. In this case, we just reduce the risk to half as compared to medium risk and hence, it is absolutely safe, but the % return will be also half. But still if it hits the equity protection, then it can take around 2 to 3 months to recover that loss.
But it is absolutely up to the investor to choose what will be the maximum DD % or equity protection % based on his risk tolerance. So an account can be run with 50% equity protection either in low risk or medium risk mode.
This particular live account is running with medium risk mode with 50% equity protection.
3.Next, the high risk mode is almost same as medium risk, but we use a very very high level of risk with a minimum equity protection of around 30% which means at anytime 70% of the account balance might be wiped out. But the advantage of this set up is that it can generate profits of around 8% to 10% everyday and hence, it is suitable for small account balances to make aggressive profits and continuous withdrawals.Because if it will continue for a couple of months before the equity protection hit, still the remaining 30% will be very high after loosing the 70% balance after protection hit.
Finally, we can trade with any risk set up and any maximum DD % as high as 70% and as low as 1%. That means we can maintain the maximum DD below 1%,2%,3%,...etc if your account balance is very high above 10K or more.
For example, under medium risk mode we can make around 10% per month with a maximum DD less than 5% and under low risk mode, we can make 5% per month with a maximum DD less than 5%.
So finally this account has crossed 100% profit and it is important for the medium risk set up to get a confirmation. As we mentioned before this account uses a 50% equity protection and hence, for a 50% equity protection hit, it requires a profit of 100% for recovery.
So we have finally crossed 100% and now even if the equity protection will be hit in future still it can't loose the main capital. So in the past 3 weeks of trading the worst kind of drawdown what it gave was around 20% to 25% during Brexit vote. But the account survived during that time and after that we never faced the drawdown even close to 10%.
So most probably we will use this set up to set up an account with much higher risk and we may publish the results soon.
Though there is no 100% guarantee on the future results and equity protection might be hit at anytime. But we are not going to stop trading permanently in case if it happen, so far we found this medium risk set up to be the safest and fastest growing account set up so far.
Most importantly, our account 'Final Holy Grail L1' will continue to run for long time since it uses very low risk and probability of hitting the equity protection is very low.
As we mentioned in our previous posts we might publish a high risk account next week. However, since we have some pending open trades in our master account and hence, we need to wait till all trades are closed before we start the new account.
Also, we noticed an important thing in good brokers like IC markets and Axitrader is that the results are extremely good on daily basis as compared to this Forex4you account. So in a small or medium risk account with smaller equity protection of 10% or 20%, even if the equity protection will be hit still it can be recovered in less than 1 to 2 weeks and it will not even take a month.
Though equity protection has never been hit so far, but still it is possible to happen in medium risk accounts at anytime in future. But now for lower maximum DD % accounts, that is not a problem at all since even if it will be hit still it can be recovered in less than 2 weeks of time.
So if you are trading in a account anything more than 1000 USD in a good broker, then it can make very easily and very safely around 20% per month or more with 10% maximum drawdown. So monthly return % is almost double the maximum DD %.
It is possible because our algo uses high frequency trading and number of trades per day is around 40 to 50 and hence, if your broker offers good spread, then the final results can be much better. Or if you are using an institutional level broker or direct bank, then the results can be almost double in monthly % return.
So these high risk accounts are useful only for smaller accounts below 1000 USD with very high leverage. As the account balance will increase naturally the leverage decreases in most of the brokers and hence, we have to use low risk or medium risk in accounts.
incomeasset posted: hi let me know why you not updated monitorings? thanks
As we have mentioned in our other system threads, right now we are doing some settings adjustment with the current system after the recent loss occurred in order to reduce the frequency of such scenarios to occur in future and to bring a perfect balance between average daily profit compared to the average daily loss and to continue the performance exactly the way it has been from the beginning of this account.
Hence, we have manually stopped updating the trading results of this accounts and all accounts related to this system since whatever results achieved during the testing period doesn't carry any meaning for us and we don't have time to answer any questions related to the performance during this testing period.
So once normal trading will be resumed in the system, all the accounts associated with this system will start updating and also, we may add few more accounts for this system.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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