house of forex project 50

The business structure is created using a legal company, commonly known as a joint venture capital company, owned and managed by both parties. Then we open a trading account in the company name. Once trading starts we run it like any other registered company.

The company will be held and fall under the law of the country you're in or will be offshore, depending on your particular situation. This, from our point of view, gives us geographical and political security. You will be the representative of that company in that country and the bank accounts will be held in that country. We will be the silent share holders, unless you really suck at managing it, in which case somebody from your country will be appointed to run the company. That doesn't change the fact that you will still own half the company.

You need to contribute the start-up capital; we will contribute the trading system.

This does not imply ownership of the trading systems. That we sub-contract to our parent company. We will apply the systems to the account, but they will remain our property and will not be disclosed.

The net result is that any portfolio we're involved in will grow something on the magnitude of 10 times anything we don't have direct ownership off.

There are three basic reasons why we will only invest with people. And not for people.

1. It's our money as much as it's yours.

If it's our money we'll do everything we can to protect it and grow it. If it's your money we'll only protect and grow it up to the point where it is profitable to do so. If the cost of doing that becomes too much or the effort too much for the reward, you won't have our attention anymore.

I assure you this will happen if we don't have ownership. Our personal portfolio's, which we own 100%, will eventually become far more important than anything we don't own.

As you know, by having ownership of something you automatically take responsibilty for that asset. So will we.

Because we have ownership you also have access to our full resources, including other investment opportunities.

2. The best laid plans of mice and men.

Remember the Titanic and Long Term Capital - the biggest bankruptcy in US history until Enron? In fact, remember Enron? Things go wrong. We're planning for things to go wrong. We hope they never do, but if they do we don't want to be caught napping.

If we're only administering your forex portfolio we can't plan for failures on your behalf. It would be your responsibility. You'll sign a nice waiver of liability and if shit happens you're on your own. With us having ownership you have full and instant access to our combined knowledge and resources. If we were a simple administrator you'd have access to our forex knowledge, specifically pertaining to the system we're applying to your account only. If it failed even once you'd walk out with nothing.

We haven't forgotten the lessons learned from the past. Although we've come up with one of the best systems in trading we will never presume it's indestructible. If we have a collapse of one of the pairs we trade in for example, we might not be able to save the portfolio. However, with a bit of foresight, the appropriate knowledge required and proper planning one can always restart provided you anticipated a catastrophic event. We are…

3. The Network Factor.

This is the reason we're doing this at all. And it's an extremely compelling one.

Of the fifteen or so of us who are doing this initially, ten are tired. We all come from different backgrounds and are in various stages of our careers and lives. Some have had hard rides and are looking forward to retirement; some can't retire, while others are just fed-up with being slaves. What's the difference between the crack of a whip and lack of cash? So ten of us want to take a break, spend time with the family or just go sit on the beach, free from the money whip.

Five of the fifteen aren't. Those five are young, energetic, and only starting to get into this investment thing. For the most part we all see the investments cruise past, but at most can take small bites here and there because we don't have the resources to participate to the extend that we should. Property specifically comes to mind. Where I live one person just developed a neighbourhood. He made a few billion simply because he had cash on hand at the right time. There's at least one person in the group who has the knowledge and skill to pull a similiar project off, but lack the resources.

Different people in different parts of the world will see opportunities that the rest of us probably will never even hear about. Every person we add to this brings his full knowledge, perspective and eyes and ears to all of us.

With time we will have access to vast amounts of capital. You only need to have so much money in the portfolio to use as margin; the rest is surplus and will have to come out of the portfolio into the separate company bank accounts. This is where the opportunity comes along.

Because we are part owners of the company all decisions have to made in conjunction with you. We cannot access the money without reaching agreement which means you have access to our projects.

Let's say you're one of the five and you spot an investment, but need cash for it. All you need to do is speak to us and we'll use our resources and knowledge to evaluate the opportunity. Remember, we want our money to grow too and will have access to surplus cash that's just sitting around waiting to be invested. Often local knowledge is crucial in spotting an investment.

If you're not an investor and just want to sit on the beach, that's fine. But when we find an investment or it finds us we will give you a call, because we need your permission to utilise the surplus.

So if we hear of something in Australia (because an Australian member needs access to cash) and you're sitting in America you might get into, let's say, a shopping mall development you never even knew was happening. And you don't have to lift a finger! You just have to take the call. And you have full control because all decisions have to be agreed by both parties. You don't want in, nothing we can do. You want to take your share of the surplus an go do your own thing. Fine too. You want in, you're in.

If we were simply your forex portfolio managers you would never get that call. So now you get the call, and we have the resources and knowledge to pull it off. Remember it's our money too. We're not going to take any unnecessary risk, but we will work as hard as you to make it grow, if not harder. And we get to hear of the opportunities, world wide…

Everybody wins…

This is the only way we will ever work in terms of applying our systems to other people's money. Already there's over 15 participants....

Please remember that the value of our trading systems are more than any amount of money you can put on the table. If you think half is too much, we think it's not enough, but we can live with it. We think we'll gain more from your intellectual capital than well lose expending energy on maintaning the portfolio's. And you will have access to everybody's combined intellectual capital. It's a win-win.

| September 14, 2006 |