house of forex

Although we were prepared to trade with the problem in place we had to adjust our risk down to leave space for duplicate trades. That hurt income and left a build up of trades, which was really a waste of margin and added risk for no gain to our portfolio.

We've moved all our trading to managed servers in the US. The whole set-up is now trading flawlessly and safely, so we're pretty much ready to roll except for the legal documentation.

February 25, 2006

I started a new portfolio to test something a little different. New starting balance $10 000 on the 9th of Feb.

Markets have been really slow since then for the last two weeks. As in really slow. We managed a wheezy 3.5% for the two weeks…

This portfolio is trading at about 10 times the size it's safe to trade at and it brings up the TP's much faster than safe. The equity curve should be very volatile but it should print money once the market actually does something for a change.

January 21, 2006

Turns out our EA can work on mini accounts as well, so we can now trade from $1000. We're setting up a local company just to handle that. The portfolio's performance will be the same as the live statement.

That was pretty much the last barrier to entry for anyone. If you've seen this page and die poor, I'm afraid it's your own fault for not taking the risk.

The statement is live again. Starting balance $100 000 on 07 January 2006.

November 6, 2005

The portfolio will stop updating next week. We need the machine to manage one of the live portfolios and that we can't publish those to the web for obvious reasons.

October 8, 2005

We're only running one portfolio for time being. This one is on the correct trade sizes. It's the final dry run and we're testing the broker as much as the system.

We were getting "Trade context busy" errors and were unable to resolve them, neither can the broker or platform provider. An error can block trades for up to two hours and cost thousands in damaging overexposure. We decided to close one portfolio and move brokers to see if it will solve the problem.

Warning:

Just in case you missed it. DO NOT try and duplicate these trades. You will lose money. The mathematics and principles behind the systems are so complex and the workload so vast that only a computer can do this and it's a 24/7 portfolio. Don't try this at home. Consider yourself warned...

About the experts:

We trade per position, not per trade. Positions are built when the market moves. When it doesn't move there's a build-up of trades. This is because there isn't enough range to lock in the parameters of the system. It happens a lot. Don't expect us to make money every day or even every week. When we do make money it happens fast.

Trading like this incurs cost to open trades. When we range into profit and there's a retrace we scalp the trades, but to scalp you need to take the profitable trades off the table. That leaves the losers on the table and the cost of the open trades. Hence there could be a large negative Profit/Loss figure in ranging markets, yet the equity is slightly negative, unchanged, or growing.

The figure to watch is the equity figure. As long as it is growing the portfolio is growing, regardless of what's happening in the Profit/Loss column.

The portfolio value is: Balance (closed trades) + Open trades (profit or losses) = Equity (real account value).

When the market starts moving again the Profit/Loss column changes back to positive, normally in a relatively short time.

If the market ranges in an area it takes approximately 4 days before we scalped so much that we have banked more than the cost of the open trades. The longer we stay in an area the more we bank. If we ranged forever we would also make money, just as surely as when we're trending.

| September 14, 2006 |