Thursday, December 4, 2008

Traders Respond #1-- IFCN Wk 52 –Thu- Equity: $1,600.25

I got a plethora of emails from intelligent and brave traders who were willing to share their experiences.

I will share a few in this post and share some more later. These responses are incredibly valuable to others as they delineate the process successful traders must traverse.

---- +182.36% ----

Hi Joel,

In your Blog, you asked about other people's results.

I started following your methods (FS and ONS)on 26th May
2008, but I diverged because I started trailing my stops
from 1st September.

Then I did only the first week of FSPlus (really I should
not have done it, because the minimum risk I could have
with my Broker was far too high (>20% for the 5 trades
combined since I can't risk less than 1GBP per pip).
After that, I reverted to your later version of FS with 100
(G/J 150) for the break and 120 (180 for G/J and E/J) for
the initial StopLoss. Yes, I changed the currencies a
little at this point, dropping U/CHF and adding E/J and
U/CAD still using (bigger) trailing stops after the initial
StopLoss. I suppose that I have developed my own trading
method based upon FS. Anyhow, the results are pretty good
(though I recognise that we are in unusual times and so I
don't expect them to carry on like this):-

26th May to 1st December 2008 + 9,118 pips (including some
doubled positions) which I calculate as + 182.36% (I have
used a single account for all my trading and allocated an
initial 5,000GBP to trade FS and ONS).

Feel free to put this on your blog if you want to.

Thanks for all the pips,

----My account is currently up 134%!

I am fine for anyone to say I am lucky. Luck prevails with those who are persistent. I have followed the rules with some minor discretionary adjustments to trades and some additional ones that have helped improve (and hurt) my trading on the margin. I am lucky that I found this blog and have had a chance to meet and discuss ideas with you and some other traders. Trading has profoundly changed my life and i don't mean financially but philosophically. I am better for it.

When I started trading I was quickly up 30% in a few months and thought I was the next Soros. Visions of grandeur danced in my head. I picked out the G5 I was going to buy. The following several months thereafter I suffered a 60% drawdown from original equity and seriously questioned the wisdom of my decision to trade. The visions of grandeur changed to scenes of Oliver Twist living in a rooming house with ragged clothes. It was quite painful for a while as I am not trading a small account and the dollars were very real. I manually backtested the original FS system and ONS to my satisfaction. This was the source of my confidence to keep trading. Frankly, I am very grateful to have suffered a significant drawdown early on. The first one was hopefully the hardest. Right?

I doggedly stuck with it and kept hammering away on the trades week after week. My account is currently up 134% (on original equity). "Wow" doesn't begin to describe it. I have no expectations of being able to reproduce that record anytime in the near future for all the reasons you state in your blog. I would actually be up higher but I took a risk on some trades to see if i could get them to run longer then the system dictates. I also added a few other system trades along the way (Turtle, DiBS, SY). I will continue to do that from time to time if I feel the market may continue to trend in the right direction. I religiously enter all trades but follow the other parameters about 95% of the time. I might add more size to a trade because I erroneously believe I can pick the direction of the market or I may exit a trade sooner than the system states and watch it promptly reverse profitably right on the pippette I closed the trade. Amazing.

My currency trading career started on May 19th, 2008. I have made some really dumb mistakes along the way. Stupid ones that you would laugh at the idiocy of the decisions (hell you received some of the early morning questions created by a sleep deprived deranged mind). Most of the time the actoins weren't fatal. Go to any book where they discuss the fallacy of new traders and I can place a big fat check mark next to most of them. Dumb mistakes!!! Through it all, I have kept plugging away and working on increasing my knoweldge and determining how i can take it to the next level. And i will.

Jxxx Bxxxxx

Thanks for the kind words and useful material for the readers of this site. The help you've shared is immense.

I got a new trade today. I bought the eur/usd as seen below. Earlier in the week we were stopped out of our long eur/usd from last week. 99% of the time that would mean that a short for that pair would have been executed. It wasn't.

This week's eur/usd FirstStrike Plus long entry (not specified in the FirstStrike Plus email from Monday morning- sorry about that..., didn't imagine we'd need it) is 1.2848.

We are still short the usd/chf, which is working nicely. The week's other profitable trades are backing off somewhat because of softening of the dollar. Will it continue? We just take the trades at this point.

There is so much news, for and against stability that the best thing to do is stick with our methods which do have an edge in these times. At least our risk is defined.

The week's current FirstStrikePlus trades:
  • eur/usd: Long @ 1.2848, stop 1.2644. Trade in progress.
  • gbp/usd: Short @ 1.5149, stop 1.5420. Trade in progress.
  • gbp/jpy: Short @144.02, stop 146.90.Trade in progress.
  • usd/chf: Short @ 1.2062, stop 1.2225. Trade in progress.
  • usd/jpy: Short @ 94.38, stop 95.51. Trade in progress.
FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit)

Trading account equity: $1,560.25

Silver position equity: $40.00
(Current XAG price: $9.60 – 200 unit position average: $9.40)
TOTAL Current Equity: $1,600.25.

I'll include some more of your emails soon. Thanks again for all of the responses.

Joel Rensink

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!

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