Tuesday, December 8, 2009

Forex Power Hedge EA - The Ultimate Rip Off

It had to happen. Someone finally purchased my FX Power Hedge System (www.FXPowerHedge.com), and they have made an EA (Expert Advisor). But, not only have they made an EA robot to attempt to trade my system, they even set up their website to sell it for a whopping $600 or more!!!! (I sell my MANUAL system for $29.99, and the ONLY way to make my mathematics based system is manual trading. It doesn't work as an EA!)

Here's the other thing about these new EA scammers ripping off my FX Power Hedge System. They are actually using a lot of my own exact language from my blog entries, website and many support e-mails I send to every purchaser who has questions as they work to achieve high profitability trading my FX Power Hedge System.

SO HERE IS THE TRUTH ABOUT THE SCAM EA GUYS...

I have an EA. I actually have two EA's created by different people, but they do NOT work! The reason is that the mathematics required to make consistent profits cannot be handled (at present) by Expert Advisor (EA) program technology. SO THE EA BEING SOLD ON THE MARKET IS VERY SIMILAR TO WHAT I ALREADY HAVE IN MY POSSESSION AND REFUSE TO SELL -- BECAUSE IT DOES NOT WORK!!!!

This is most frustrating to me, cause these guys have not only scammed me by ripping off my system but they are scamming people with MY OWN MATHEMATICAL APPROACH TO FOREX! It's really frustrating and I'm very angry.

My biggest thing is that I just want to warn you. There isn't ONE SINGLE EA that produces consistent results. NONE WORK! The reason is that Expert Advisors function primarily in a predictive manner. They seek to capture profits via predicting (electronically and usually by scalping) -- they predict movement.

The problem with automating my system is that the FX Power Hedge does NOT attempt to predict the future. It uses real time data to make profits, and this requires a human being to execute the system. Yes, there are some mathematical functions that we have automated and that we provide when people purchase my system.

You don't have to manually perform all the calculations I did for years when I first developed the system myself.

It involves principles of statistical probability, causal effect, law of independent events...some quantum physics mathematical principles first pioneered by Albert Einstein and Neils Bohr in their early work. But with the auto calculators I provide you, all data is available after entering buy and sell numbers and a single click of the mouse.

THIS IS STILL A LEVEL OF MATHEMATICS WHICH CANNOT BE BUILT INTO AN EA!

While we have a documented 97% success ratio on all trades with the FX Power Hedge, you still have a 3% risk of failure. What these EA marketers out there scamming people with my system are NOT telling you is that an EA will REDUCE these odds of success. I can actually increase statistical probability of success on every single trade to 100% manually, but those settings do NOT work in an EA.

It is more complex than I can explain myself. I don't build EA's.

I can only tell you that I have FOUR software engineers working now on what "might" be AI software which could run in the background and feed information to a conventional EA -- and that might work according to what they are telling me. The calculations would at least then be built into a software program robust enough to handle what's needed to make this consistently profitable. An EA is a very primitive piece of software, and it's basically a plug and play kind of deal where you put in some fixed variables. It will not accommodate the complex mathematics and "real time" adjustments needed to achieve consistent profitability with my FX Power Hedge System (www.FXPowerHedge.com).

So, I am NOT going to identify these guys. I don't want to get into a lawsuit. I was simply informed by an FX Power Hedge Trader who does forex now for a living thanks to my system...he told me yesterday about these guys, and also expressed his concerns that it might smear my name and the power hedge system. Well, he's right. I have the same concerns. I have worked hard to maintain the credibility of this system.

I AM NOT ASSOCIATED IN ANY WAY WITH ANY EX THAT TRADES THE MATHEMATICS BASED POWER HEDGE SYSTEM I NOW SELL UNDER THE COPYRIGHT PROTECTED "FX POWER HEDGE" NAME.

DO NOT FOR ANY MOMENT BELIEVE PROMISES MADE BY ANYONE SELLING AN EA THAT THESE ARE ASSOCIATED WITH MY SYSTEM. I DO NOT HAVE AN EA THAT WORKS.

IF I EVER DO GET AN EA (LIKELY WITH SOFTWARE LINKED AND RUNNING IN BACKGROUND), I WILL (1) GIVE IT FOR FREE TO EVERYONE WHO HAS ALREADY PURCHASED THE FX POWER HEDGE SYSTEM (WWW.FXPOWERHEDGE.COM), AND (2) I WILL IDENTIFY IT AS AUTHENTIC "FX POWER HEDGE" FROM "SPARKS, IQ141".

Anything else is NOT going to work. I'm sorry to burst the bubble. But if you see an EA out there on the web that promises profits using the mathematics I have developed (and that replace predictive technical and fundamental analysis, which is forever flawed because it seeks to do the impossible -- predict the future) -- do not trust that EA. It's not me. Not unless it has my name attached to it: Sparks, IQ141

Sorry I have to break bad news for people seeing these guys with a scam EA out there associated with my power hedge mathematics. Just had to let you know there's a scammer created every minute. I feel like these guys are the same people who want to sell you a MacBook Pro made in China for just $300 -- and, oh by the way, send only a Western Union payment. LOL -- man. I am disappointed in humanity. So many people believe we are all suckers. But I guess it's sadly too often true. As human beings, we are eternally hopeful creatures.

I will just promise you that I'll always try to be honest about my system. I'll always answer questions to anyone who purchases my system. And I will NEVER sell or allow to be sold under my name any automation or EA that does NOT work to produce CONSISTENT profits.

So beware. All I can do is warn you about this one. If I can find a way to shut down these EA scammers, I will do it. Meanwhile, beware. THERE IS NO FX POWER HEDGE EA IN EXISTENCE. NO EA TO DATE (TO MY KNOWLEDGE) WORKS TO PRODUCE CONSISTENT PROFITS LONG TERM. PERIOD. I HAVE NOT SEEN ONE EA THAT DOES IT.

Sparks
IQ141

Friday, December 4, 2009

Forex Profits With FX Power Hedge - Day One

I will keep this brief, but I was amazed at the comment sent to me by a brand new trader yesterday. He said, "I want to thank you for this amazing system. I have been trading forex and losing money for six months. My cash account was down to $60, and then I discovered your system on the Internet. I bought it and just figured I would give it a try on my account. If I lost $60, so what. I have been losing money for months. But I started WINNING trades and I have now doubled my account! Thanks, Sparks! I thought every system out there was a scam. This works. I will keep trading. Sorry I did not do a demo like you ask...I just didn't see the point in worrying about the $60 left in my account. I had gotten used to losing. It feels SOOOOO good to WIN trades and win them all so far."

This is NOT the usual story. In today's market (which is different from when I started using this system in 2006 - 2007) there is a LOT of consolidation, which means a lot of sideways movement. But, with the settings provided to you with the auto-calculators and other information you get with my system (www.fxpowerhedge.com), you should make profits from the start. I just know that a lot of people who purchase my system are NOT already familiar with forex, so I ask that you trade in demo mode for 30 days.

If you are a veteran forex trader, you can likely use my system on your cash account the first day. It is not that complex, despite the intricate mathematics of statistical probability, causal effect and law of independent events that are the foundation of all calculations. With the auto-calculators, you don't have to do the math I used to do with a complicated formula when I started. Every stop and limit is calculated for you, so you "trap" currencies within a certain price range from which they cannot escape without giving you profits. Even on a bad day (yesterday for some other traders), they reported to me that they were winning 95% of all trades. The normal winning percentage is 97% or higher documented in live testing over three years.

So congratulations on this new trader who "saved" his $60 account and is on the way to multiplying it every few days. I'm impressed he did so much in so little time with such a small account. This is just the power of the FX Power Hedge.

If you are new to this blog, be sure to scroll down and read other posts about the mathematics, etc.

I think there is also a post on the no stop/no limit method of implementing this system as an indicator -- not just the set it/forget it mode that is taught as the basic way to use my FX Power Hedge forex system. So, now with two ways to earn profits using the same system, there is no stopping the traders who learn it, use it, and make make money.

Peace and Prosperity.
Sparks

Wednesday, December 2, 2009

What the FX Power Hedge Is, And Is Not

I had a painful and frustrating exchange via e-mail yesterday with a guy who insisted my system, the FX Power Hedge (www.fxpowerhedge.com) does not work. I'm not going to mention his name, cause there is no need to perpetuate the problem. But I was frustrated myself cause the guy had purchased the system and literally jumped into a demo, screwed something up within a matter of 48 hours after getting the FX Power Hedge, and then adamantly insisted to me that the system does not work. "It's a scam. You're a fraud," he proclaimed. It was the painful frustration of a very impatient, angry person.

Here's the deal as truthfully as I can tell you. The FX Power Hedge is a mathematics based system that earns profits by effectively trapping currencies within a price range documented to be 97% successful in producing profits. Now, this is NOT simple math to calculate. It involves some precision and is based on a formula I developed in 2006...all based on principles of statistical probability, causal effect and the law of independent events.

To work my system, you also need to learn a bit about forex basics (how to enter stops and limits, open trades, work a basic MT4 platform, etc.). But, at the same time, this is NOT rocket science.

With every purchase, I not only provide a host of my own charts documenting success of the system, but I also provide everyone who purchases auto calculators that eliminate the need to do the math calculations yourself. All you do is enter the Buy Open price you paid for the buy, and then enter the Sell Open price you paid for the sell. Then you activate the auto calculator with a single click, and you get the properly calculated stops and limits, which you then enter into the existing trades and this become the power hedge that effectively "traps" the currency so that it does not escape without giving you a profit.

It's that simple. Yet, this guy (and he is the FIRST and ONLY guy in three years to get this hacked off at me)...he was insistent that my system did not work. It was both insulting and frustrating to me cause I kept asking if he would try the system with my assistance. He said he "had already lost in his demo account and refused to try again." He claimed I did not answer a question he asked. In fact, his question had nothing to do about the FX Power Hedge System. It was a question related to how to work an MT4 platform. A forex basic the guy needed to learn from the broker via chat or just search on Google and learn how to enter trades, how a hedge works...that kind of thing. Again, very frustrating to me cause I am not here to teach people how to work broker software or understand forex trading itself. I provide free support and answer all questions that relate to the FX Power Hedge System.

If you need to learn forex, ANY broker will teach you. They WANT your business and they'll help you learn how to properly enter trades, stops and limits, etc.

Not to mention, after a grand total of about two weeks, this fellow was upset cause he had lost money in a DEMO account. For the uninitiated, that's NOT cash. That's play money on a demo platform you can download from any major broker. We recommend One Corp FX (www.onecorpfx.com) in the United States (where you can still hedge despite the NFA), or FX Pro in the UK (www.fxpro.com). Both of these brokers will help you. You can also learn a ton of forex basics from brokers like Forex.com, FXCM.com...there are a ton of them out there who will teach you the basics of working their identical MT4 platforms no charge.

For everyone getting into my system in TODAY'S highly consolidated market (which is a bit more difficult in which to make profits than the market we enjoyed when I developed this system in 2006 and 2007...I recommend that everyone practice in demo mode for a week to 30 days. I simply want people to NEVER lose money because they made a mistake or did not understand how to work my system.

It is documented to work. When you purchase you get charts showing that it works and works consistently to produce exceptional profits on a disgustingly consistent basis. But I cannot come to your home, and enter the data variables for you to assure you're using the MT4 trading platform and tools I've provided you properly. So people CAN screw up. For goodness sake, I was sick with H1N1 last month, and I screwed up a trade by closing out the WRONG side of a hedge. I lost several thousand dollars in about two hours cause I just didn't comprehend what I had screwed up. I also walked away from the computer to lay down while I "thought" profits were adding up.

This gets into another evolution of my system...the no stop/no limit methodology...but that is something you should only attempt after a few weeks of fixed stop/limit trading, or if you have been trading forex already for a couple years.

I guess I'm just writing cause I'm frustrated. I don't like people thinking I'm not for real. I'm an actual human being. I have helped a lot of people. And, to quote a guy who sent me an e-mail two days ago, "I thought every forex system out there was a scam. God led me to your system somehow, and now I'm making money. I've been trading forex for four years, and this is the first system I've ever seen that works."

I get those kind of e-mails several times a week. Sometimes it is the veteran forex trader who's already bought every scam EA that does NOT work. (My system is NOT an EA...it's manual trading where you have to really pay attention to every stop and limit entered and must calculate manually -- at least so far. No one has been able to develop an EA that is sophisticated enough to handle this math.) So it's manual trading, but EVERYONE gets it.

So I guess I reached a milestone yesterday. My first unhappy customer in three years. Dude, if you are reading this, I hope you will just calm down and realize the opportunity of a lifetime that is before you right now. Yes, the FX Power Hedge requires patience. Yes, you can make a LOT of money VERY fast. But, you MUST know what you are doing and execute the system flawlessly. No doubt, there is ZERO margin for error. But the profits? They are immense and based on principles of statistical probability and causal effect, profits are also almost inescapable. All you have to do is execute the system properly.

I will also offer that investing in forex is risky. You can lose all the money you invest. You should never invest money you can't afford to lose. All the legal disclaimers have to be disclosed, but they're on my website: www.fxpowerhedge.com.

If you purchase my system, do it ONLY if you are committed to being emotionally calm, cool, and logic oriented. Forex is NOT a market to get into if you are hot headed, emotional and hoping to make millions without doing any work. You WILL have to learn the system. I contend it is NOT difficult and most people can get it within hours. But, hey, not EVERYONE comprehends things like this at the same level or in the same time period. So, just to ease my own mind, you really need to think about whether or not you are ready for Forex before thinking about buying my FX Power Hedge System. Clearly, based on the ONE guy from yesterday, it is not for everyone.

Friday, November 6, 2009

Free Margin And Time Factors

I have spent so much time in training people to implement this system, and so much discussion on the mathematics of the FX Power Hedge (www.FXPowerHedge.com if you want to purchase), I realize I have not talked about two other very important factors. These are free margin and time.

Free margin is important because it creates plenty of room for price fluctuation between hitting your stop and then hitting your limit as positioned by the mathematics of the FX Power Hedge System. It's important to remember that the math definitely identifies a trend that you can count on to continue with exceptionally rare exception (recommended settings account for just 3% chance the price movement will go against you).

That said, you WILL see small movements against you even within the framework of the power hedge mathematics. So keep NO LESS than half your full account available as free margin. Make as many trades in relatively small lots (or fractions of lots) as you can, and close them out one at a time. This leaves you hedged, and minimizes exposure.

What this achieves is MORE TIME!!! What we see as an additional variable, at least what the software engineers who are trying to automate the system see...we see "time" as a significant variable often overlooked by new FX Power Hedge System traders...thus this post.

If you see sideways movement within a certain range of pips (which we discuss during training of the FX Power Hedge system with each new trader who joins us)...you cannot allow sideways movement beyond a certain point in terms of time. Without even purchasing the system here, I will tell you that sometimes even just 60 seconds of sideways movement can be enough to indicate instability and possible costly movement against you. So you will want to get OUT of the trade.

This depends on the total time period required to achieve the total pip range movement that the power hedge math identifies as your "trend". So there isn't a hard and fast rule that you close out break even or with a small loss after 60 seconds. I've left trades exposed overnight -- more than 12 hours -- because price movement and the mathematics showed me the trend is strong.

The key here is that we are NOT using technical analysis nor fundamental analysis. We are NOT reading candlesticks or candlestick patterns. We are NOT looking at resistance levels or any conventional BS technical analysis techniques. Because they ALL seek to do something that is fundamentally and definitively IMPOSSIBLE...predict the future.

YOU CANNOT PREDICT THE FUTURE!!!

The FX Power Hedge System uses the ONLY two absolute and unquestionably factual variables in forex to determine all trading activity: price movement and time. These are the ONLY true and absolute factual evidences we can use to identify forex trend activity (both short and long trend movement as well as sideways movement, where you can profit as well).

Fortunately, all we need is price movement mathematics and application of the additional variable of time to win consistent profits.

So when you have the FX Power Hedge System math working to your advantage, you are obtaining real time data that is absolutely true -- because it's price movement. It's real. It's factual. It's updated tick by tick and charted back for you by minutes, hours, days, weeks and months.

The FX Power Hedge System is also utilizing the same principles of mathematics documented successful in quantum physics and other fields of study to identify the behavior of other physical systems no different in our universe than the forex market. Forex is, like all things, a system that exists in our universe. And, like all things in heaven and earth, it can be fully understood through mathematics. This is what the FX Power Hedge achieves.

So, in real time, we make decisions based on pure math. Simple. Factual. Real time data. There is no predicting of the future, which is impossible.

The one thing we advise, in addition to application of the FX Power Hedge mathematics, is to please keep reasonable free margin (about half your account depending on total equity -- less is required as accounts grow larger), and watch the time variable as well. We will share more with you in terms of specifics after you purchase the system. But, just as a general advisory for all traders, keep "time" in mind. It is an important variable because it is an absolute factual behavioral factor that you can observe with 100% confidence what you are seeing in real time if true. And it has meaning within the FX Power Hedge System calculations.

Just as we observe and capitalize on total price movement, we also watch the TIME it takes for X pips worth of movement to transpire in order to gage the strength of movement. So it's not just the total number of pips worth of movement. It's also the amount of time involved in the movement. This impacts both closing out of trades as well as decisions as to when you should take advantage of movement to capture profits.

Remember, while we have software engineers "trying" to automate the FX Power Hedge System, we have NOT designed effective software. There is no conventional EA that works. Not one produces profits on a consistent basis. So don't be sucked into the pitches offered by manufacturers of EA's. Based on our calculations, you can't achieve what's needed to win in the simplistic EA. What we're attempting to do today is create software that will run in the background and feed information to a conventional EA, and make the trading decisions for you based on the FX Power Hedge price movement mathematics, principles of statistical probability and causal effect, as well as the essential time variable.

BEFORE I GET ONE MILLION E-MAILS -- WE HAVE NOT AUTOMATED THIS SYSTEM!!! THE FX POWER HEDGE SYSTEM (www.FXPowerHedge.com) IS STILL A MANUAL TRADING SYSTEM. IT WORKS. YOU CAN LEARN IT RELATIVELY EASILY. YOU CAN EARN SIGNIFICANT PROFITS. BUT IT IS A MANUAL TRADING SYSTEM...NOT AN EA. NOT A ROBOT. WE ARE NOT EVEN SURE IT IS POSSIBLE TO AUTOMATE THIS SYSTEM.

But we can TEACH you to implement the system, and we do provide elements of automation (such as calculators to eliminate the need to calculate most of the mathematics). So, you don't have to be a rocket scientist. You do, however, have to manually implement the system. It has NOT been automated yet.

Sorry to ramble. I just wanted to write and emphasize the free margin and time variables because they are important.

Peace and profits to you.

Sparks

Friday, October 23, 2009

Check out One Corp FX

You have likely read about my frustrations with the NFA ban on hedging in the U.S. FEAR NO MORE!!! If you are a trader in the U.S., and you have been worried about the logistics of opening an account overseas (increasingly difficult by the way), you can STILL HEDGE thanks to companies like One Corp FX (www.onecorpfx.com).

They offer great spreads, fast and easy to use MT4 platform exactly like we recommend for the FX Power Hedge system (www.FXPowerHedge.com). Most importantly, a U.S. citizen can open an account and hedge forex with no problem.

So, forget the NFA ban on hedging. The NFA is on some mission to establish socialism in the United States and "protect" consumers from hedging, which (in their opinion doesn't work). Thankfully, there are companies like One Corp FX that still offer the option for American traders to use WHATEVER tactics they choose in order to make money in our FREE capitalist economy.

I promised myself I would not get too political on this blog. But it's painfully frustrating to see how over regulated our nation is becoming since the election of President Obama. Socialism is here to stay for at least the remainder of his term. Then, I expect we'll see just about all of his policies reversed by a new President who actually took the time to read the Constitution.

Meanwhile, if you want to hedge, check out www.onecorpfx.com. They're good people. They're honest from what I can tell. And, they will let you open an account in the United States that lets you hedge. Bravo.

By the way, I am NOT affiliated with One Corp FX. I do not make money off referrals or any side deal of any nature. I just like these guys. I am also not responsible if they screw up down the road LOL. I can't predict the future (which is also made clear in my forex trading system...NO ONE can predict the future). All I'm saying in this post is my OPINION that One Corp FX is a great company and I've got an account there myself now.

So, if you want to hedge forex and you're an American citizen, I would just offer that you should check out One Corp FX. Again, they are NOT affiliated with me or this blog in any way. I have no profit incentive to recommend them. Just want to make it clear for ethical and legal reasons that I'm not associated with them in any way other than having a live trading account with them. And, by my observation, they're great.

Forex Beaten By Mathematics

The simple reality is that the FX Power Hedge beats the forex market by simple application of mathematics. I'm putting up this post, despite the fact that it shares a lot of fundamentals within the system I sell at www.FXPowerHedge.com, because I want to be able to cut out a lot of e-mails I send to new purchasers of the system as they evolve to the point where they want to make larger profits.

The FX Power Hedge is initially taught (just the learning process and an inevitable one) as a system where you "trap" a currency within a certain range that provides high statistical probabilities that both stops and limits on one side or the other WILL be hit and you will earn a profit. This is pretty simple in concept. The development of the exact formula for making it work consistently was more involved. As we've refined the system with programmers trying to automate it (which we have yet to do) we've found statistical advantages to certain ranges. So, when I tell someone who's learning the system (hopefully you) that you need to set stops at a certain and specific range, you need to know it's because we've found this to be 95% to 97% successful/profitable on all trades.

There is a point where you achieve 100% profitability, but the range is excessive for closing out trades on a daily basis...and this is the objective of the system. It's designed and intended to produce profits every 24 hours. That's why we encourage you to earn profits with the 95% range, and manage any possible risks on the 5% losses. That's how you beat forex.

Now, the more advanced part of the mathematics is what we teach new traders who've gotten into this system and practiced for at least a couple weeks in demo, or that I share with veteran traders who can show me that they've been trading for at least a year or two. If you already understand forex, then there's no need for the "set it/forget it" approach we teach novice traders. That works. It's profitable. But you can make a LOT more pips/profits with the advanced technique.

Here is kind of what I wanted to share, and I don't think I'm giving away the total system. If so, then there you go.

The ultimate application of the FX Power Hedge is actually implementation of the system as an INDICATOR! It's not just a trading system. Yes, we provide automated calculators so you don't have to do the math to determine stops and limits manually if you're into set it/forget it FX Power Hedge trading. But, you can earn a LOT more profits by learning how to use this system to identify trends based on the mathematics behind real time price movement alone.

Simple fact: the ONLY true and consistently reliable information we get from the forex market is price movement. Technical analysis and fundamental analysis both seek to do something that is impossible in our universe. They try to encourage you to "predict" the future. It can't be done!!!! So, everyone who tells you they can teach you how to "predict" what will happen based on candlestick patterns or spinning tops or whatever they want to tell you is an indication of what "will" happen in the future with a currency's movement is B.S. Period. You cannot predict the future.

What you CAN do is apply principles of statistical probability and causal effect to price movement. These are mathematical fundamentals I initially discovered in the work of Albert Einstein and Neils Bohr in their early work on quantum physics. The reality is that you need to think of the forex market as a "system" or living "organism" that exists in our universe. Everything in heaven and earth adheres to laws of mathematics. Thus, when quantum physics is explained and behaviors fully understood via mathematics alone (as they did back in the day before you could see anything on the quantum level as we can today), guys like Einstein and Bohr understood how this "system" or "organism" worked because of mathematics.

All I've done to "comprehend" how forex behaves is apply a couple of their same mathematical principles. Statistical probability dictates that motion in a certain direction (price movement that's factual and delivered to you in real time on any platform)...statistical probability dictates that a certain range of movement (the proprietary part of my system you only get via purchase at www.FXPowerHedge.com -- hey, I'm in this to make a buck as well)...the momentum of a currency's movement has a high statistical probability of continuing for a certain range in the same direction after movement of X pips. We have done these calculations, and this is cornerstone to the FX Power Hedge.

And, yes, the statistical probabilities vary depending on the ranges of movement over different periods of time. So we've done enough calculations to make money as traders, but we continue to discover more points of high certainty. I suspect this will ultimately become a new science or methodology for trading forex. For now, we've done just enough work to make hefty sums of money ourselves and share that knowledge to other traders who can also then make some money. That's what it's all about, isn't it? Profits.

CAUSAL EFFECT - WHY DOES IT MATTER?

I reference the principle of causal effect to help people understand the "why" behind this system's success. There is ALWAYS a causal effect if you see X pips worth of movement in a currency. And, conversely, if you do NOT see movement, you can also make money, since there is statistical probability behind this phenomena as well. Bottom line, we may or may not have a CLUE what the causal effect is that's driving a certain movement. Could be release of some data in the U.S. Could be simple supply and demand. Could be some foreign leader's speech. Who knows? We don't, and we don't NEED to know.

Why don't we care what CAUSE has created price movement? It's the same reason Einstein didn't actually know "why" two objects joined together at some point in time still behave as if connected even when separated by the distance of the entire universe. He simply proved that it happened. So the "cause"...who cares? By the way, this was Albert Einstein's only experiment in quantum physics. It spooked him so much, that he ultimately stopped working in the quantum field. But, he documented through mathematics (and it has since been proven through actual quantum experiments) that spooky things happen at a distance. (Google that topic: "spooky things happen at a distance". You'll learn something cool about quantum physics.) You'll also get a little better insight to how we're working here. We don't need to know WHY the math works. We just need high demonstrated confidence that it works. And, that's where we are today. It works.

So, we don't need to know WHY a currency is going up or down. We simply need to observe the REAL TIME price movement data and watch for movement that fits within our models of statistical probability. That's when you get in or out of a hedge as we teach in our system and you make profits.

Stops and limits are NOT necessary. This is the big shocker for most people who get into our system. As long as you have opposing positions (one buy for every sell) it doesn't matter how much up and down movement you see -- your equity is protected. What's important is that you can close out a losing position and capture a LOT more pips worth of profit AFTER you see one of the movements that fit within out models of statistical probability.

I hope this is not too confusing for people who have not purchased the system. If you've purchased and you're just learning the basics, disregard what I'm saying. I want people who are novice traders and initially purchase the system to use stops and limits. It will take you a few days or weeks (depends on the individual) to get comfortable with how the system works before you can handle trading without stops and limits.

But, to answer a LOT of questions that come to me from veteran traders who purchase the FX Power Hedge system...No, you do NOT need to use stops and limits.

And, no. You are NOT limited in a small number of pips you can earn as profit once you hit a point of movement that evidences high statistical probability for continued movement.

I hope this answers the questions of veteran traders who are into the FX Power Hedge system. I just got tired of sending this same e-mail to every veteran trader who also saw the same things but just wanted to confirm with me that it works. It does. If you're an experienced trader, forget the first half of stop/limit trading taught in our FX Power Hedge materials...just go straight to no stop/no limit trading and make your profits. The statistical probabilities work.

Thursday, June 11, 2009

The NFA, Corruption, And A World Of Hedging That Thrives

After the inexplicable ruling by the NFA against hedging, it's taken a while for the dust to settle and for everyone to see the new forex landscape. It's not that bad. Indeed, things look good. Hedge trading has actually gotten more attention than it might otherwise have received if the NFA hadn't taken such a ridiculous position as they did in attempting to regulate against it.

There's also now a long list of brokers in the United States who are not only negotiating with the NFA to get the anti-hedging regulation reversed or eliminated, but also allowing hedge trading seamlessly through offices overseas. So, there has been zero interruption for hedge forex trading, which is especially important for my family of FX Power Hedge traders (www.fxpowerhedge.com).

For a brief moment in time, it looked like we were facing disaster. Thankfully, that was a false alarm over a pointless ruling that will (in my opinion) end up merely disappearing into that long list of profoundly stupid things regulatory bodies like the NFA occasionally attempt to impose on free trade in the United States. So stupid and contrary to free enterprise, indeed, that it leads one to speculate on the real motives of the NFA.

Ironically, this again points out that while the United States is a world leader when it comes to capitalism and free trade, the U.S. is also home to some of the most out of control and potentially corrupt regulatory bodies in the world...many of whom cross legislative boundaries with reckless disregard for our rights on a routine basis. This NFA ruling against hedging is just the latest example.

It has made me proud to be an American, however, as I watched our still robust free economy respond to this senseless regulation. Countless brokers in the U.S. continued to allow hedging, and communicated the fact openly with hedge traders such as myself.

I prefer not to list the many brokers who allow hedging in this post only because it changes almost daily. More and more brokers are either changing policies or opening off shore offices to allow hedge trading. Any list I put here today would be outdated in a week.

I'll just offer that if you're looking for a U.S. based forex broker who allows hedging, just Google the topic. You'll get a list from Forex to FXCM and many other very reputable, solid and strong brokers who have a comprehension of the definition of free trade and have worked hard to get around the NFA to allow hedging. They should be applauded, because their efforts and rapid response are nothing less than the true demonstration of capitalism and free enterprise at its best.

What should also be noted is the list of major brokers NOT allowing hedge trading. What is their motive? What is their objection to free trade? Behind the walls of these brokers, in my opinion, are the likely hidden motivations of the NFA. I don't have facts, so I can't offer anything of substance here. But, I believe it's easy to see who opposed hedging, and if you know a little about differences between dealers and brokers...you can figure out what might really have been going on here. It's sad, and betrays potential evidence of possible corruption just like we've seen in so many other institutions in the U.S. recently. Let me put it this way...it wouldn't be a surprise if there was some other motive besides the stated attempt to "protect the consumer". That always sounded really questionable to me.

This is why it's so important to note another fascinating outcome of the turmoil created by the NFA's poor judgment in seeking to ban the long established, ethical and profitable trading practice of hedging in forex. Many of us have finally taken the bold step to move our money out of the U.S. to join foreign brokers.

I have personally moved over to Alpari in the UK. I love them. It's a great company. Their trading platform is great. They're diverse and large enough that I have zero worries about the safety and security of my funds. The same was true of FX Pro, also based in the UK. They were the close second for me, and (frankly) it was a toss up. Literally, I almost flipped a coin between the two. So if you're looking to move your money to a foreign broker, you should also check out FX Pro. I love everything about them. There are, of course, other very strong, reputable brokers in the UK and beyond those borders. What really impressed me is that I didn't have to search long or hard before I was 100% satisfied with my options.

So, bottom line, the NFA regulation against hedging proved only how irrelevant this regulatory body is and how totally free Americans are to trade anywhere in the world. We engage in commerce via the Internet. The "world" of forex literally encompasses the entire globe. We're dealing in the business of trading global currencies, so why should our personal geography impact what we do in any way?

It's wonderfully liberating and exciting to realize this new global reality...or perhaps just have the fact hit home in a very real way. And, again in the most ironic twist, this widespread liberating enlightenment resulted from the NFA in the United States attempting to regulate free trade to the extent of implementing socialist policy on forex traders in the U.S.

So, I suppose I just want to thank the NFA for being so profoundly foolish and clearly mindless when they passed their regulation to ban hedge trading in forex. You opened my eyes and the eyes of countless other profitable hedge traders to the fact that we do not need you, and we do not need to keep our money based in the United States. Indeed, in today's economy with exponentially growing problems resulting from a government out of control, we've found it may be safer to put our money in accounts with truly global brokers overseas. I can tell you I feel much greater peace of mind with my account safely in the hands of a global broker based in the UK.

Could something bad happen? Of course. Anything's possible. I just don't think President Obama is likely to take over my UK broker and start running it himself through some puppet board of bureaucrats who know less about forex trading than the NFA. In the U.S., all bets are off based on recent events.

Is this good for the American economy? No. But, then again, I don't buy stocks on the NASDAQ or NYSE. I've gotten rid of all my rental real estate. All I do is trade forex. And now I'm free from the regulatory dictatorship of misguided organizations like the NFA. I'm free from the growing threat of government takeover, which (clearly) can happen in any industry at any time in the current administration's never ending quest to redistribute wealth.

So, again, I want to thank the NFA. By overstepping your bounds to such egregious extent, you finally made all of us see how totally irrelevant you are in every way. You woke many of us up to the opportunities for enduring free trade overseas. It's a sad day for America because the real shift of wealth of overseas, but it's liberating for forex hedge traders.

Friday, May 22, 2009

NFA Ban On Hedging Inexplicable And Ineffective

The NFA's recent ban on hedging (effective May 15, 2009) is impossible to explain. The rationale given to me in several discussions (and merely repeating the primary cover story) is: "Hedging doesn't work. So we're banning hedging to protect the consumer." That's actually what the NFA put into press releases, and it's the only explanation offered by any source I've been able to contact.

It's total B.S.

A cornerstone of capitalism is free trade. In America, we've built our great economy on the principle that individuals can invest their money freely and in whatever manner they choose. This has, since the dawn of our democracy, led to innovation, creativity and prosperity. Creative entrepreneurs start businesses or engage in whatever investment strategy they choose...and the result is the world's most free and open capitalist economy. Until now.

America has been built on an economic system more open and more free than any ever seen in history. The NFA has changed this forever with one misguided and inexplicable regulation that seeks to prohibit American forex traders from utilizing the centuries old, proven and universally accepted hedging strategy still available to other forex traders around the globe. This ruling has actually put many American forex traders at a significant disadvantage compared to foreign traders.

Hedging is a common practice widely accepted in every marketplace where trading transpires. It's been around since the dawn of trading itself, and remained a solid strategy in every marketplace where one commodity is traded for another.

Are we now to believe that the NFA made some amazing discovery that hedging never produces profits? Are we left to merely accept the NFA ruling that, by intent, seeks to limit the trading options available to Americans in the forex market while leaving others around the world with open access to hedge tactics?

What kind of disservice has the NFA imposed on us? How more anti-free trade can they get? How can they presume to know, in absolute terms, what does and does not work for individual traders...or will EVER work? Even if hedging doesn't work "most" of the time for "most" traders, how can the NFA seek to prohibit individuals from using this valid and time proven strategy in creative and innovative ways to try and discover new ways to earn profits? This is more socialist than capitalist. The NFA might as well legislate what days you can buy versus sell.

This is the most offensive abuse of regulatory power in our free market economy imaginable. The board of the NFA needs to be replaced and, more significantly, they need to be investigated to determine if ulterior motives were involved in this regulatory decision.

It is a fact that dealers in the forex market lose money to a select group of hedge traders, and a number of popular EA's currently implement hedge tactics to profitably scalp. So, is this truly a consumer protection maneuver, or has the NFA simply worked as a puppet for big dealers in the U.S.?

In the highly leveraged forex market, hedging is an essential strategy when it comes to protecting your account equity. In the FX Power Hedge system I use myself, it's the sole key to making profits every single day. I have charts that document my success, and I stand ready to address the NFA directly with evidence that HEDGING WORKS TO PRODUCE PROFITS CONSISTENTLY. Period. Call me as a witness for hedging. I will testify under oath that hedging works, and this NFA regulation is unfounded, unreasonable and unacceptable...especially in these United States so proudly built on freedom of choice and free trade.

To my great personal fortune, the NFA seems intentionally unaware or openly disregards the nature of the forex market itself. It's global. It exists only on the Internet. There's no central exchange. There's no physical location in the U.S. where trading takes place. You can't pass a regulation in the United States and have any impact on American TRADERS...all you do is liberate those select U.S. based dealers or brokers who don't WANT to allow hedging.

To their credit and earning an immense measure of respect from myself and others who hedge, several major brokers in the U.S. have already informed us (in writing) that they are going to allow hedge trading despite the new NFA regulation. Among the first to respond in this manner were Forex (www.forex.com) and FXCM (www.fxcm.com). Both informed me within days of the NFA announcement that they will continue to allow hedging and simply run these transactions through their UK offices. They promised no interruption in service to U.S. forex traders.

We thank you for endorsing the American way of doing business.

Noteworthy, CMS has stated that they will no longer allow hedging. I have suggested that they should relocate their headquarters from New York City to Moscow.

By my observation, this latest ruling has revealed some unfortunate ulterior motives and potential conflicts of interest at the NFA. I cannot get any of the key players to openly admit what's behind this regulation. I simply have my own opinions based on how dealers work and what I observe happening with several major players. It is revealing if you simply sit back and watch the behavior of each dealer in the U.S. It's actually all pretty easy to figure out.

I don't have any evidence of conspiracy. Let's simply conclude that this anti-hedging NFA regulation is highly suspect, ineffective (except that it frees dealers and brokers in the U.S. from allowing hedge transactions if they choose). But it also leaves the door wide open for those brokers who want to ALLOW hedging, since they can simply run these transactions through their foreign offices. And, to their credit, most brokers have taken action to allow hedge trading for U.S. citizens. It's been wonderful to watch the pursuit of freedom and capitalism undertaken by so many noble institutions in the face of a regulatory organization seemingly corrupt or acting in ways that make no sense. Either explanation is unacceptable.

At the same time, and as reassurance for those of you who have begun earning your living through the power hedge, please know that you also still enjoy the benefit of trading with brokers located overseas. Alpari and FX Pro (both in the UK) are just two of the world leading brokers worthy of consideration.

Meanwhile, I'm an advocate of supporting U.S. brokers like Forex and FXCM who, in the face of unreasonable over-regulation by the NFA, have taken action to navigate around this excessive abuse of power and allow U.S. traders the option of hedging. I encourage you to support brokers such as these as I do today.

Wednesday, April 1, 2009

If Albert Einstein Traded Forex, He'd Use The FX Power Hedge

Ponder for a moment what would happen if you sat Albert Einstein in front of a computer today and told him to find a way to make money trading forex.

Would he attempt to learn all he needs to know in order to master fundamental analysis? No way. It would take years. Would he rely on somewhat elementary technical analysis, which is what most people try to convince novice traders is the way to go? Einstein wouldn't buy it. Technical analysis is B.S.

Einstein would approach forex trading in a different way. It would be the same approach we took in developing the FX Power Hedge System (www.fxpowerhedge.com)...mathematics. The simple fact is that we use principles of statistical probability and causal effect in order to let mathematics identify trends, and then capture profits. It's the same math legends like Albert Einstein and Neils Bohr used to pioneer the study of quantum physics.

I'm not going to explain the entire system here. You have to purchase the FX Power Hedge System at www.fxpowerhedge.com to get the investing system itself. But, bottom line, a number of traders have asked me over the past several months exactly what was the thinking behind the system. I keep hearing, "Why does it work?"

The good thing is that I never hear, "Hey, it doesn't work." Not one person has told me this system fails to produce profits. Indeed, we keep surprising ourselves with new levels of success in this crazy economy. Over just the past couple weeks, I opened an account with just a $500 initial deposit to prove the system works with small accounts (at the request of a couple new traders). Using the FX Power Hedge System, it was doubled to over $1000 within 10 days.

The real answer as to why the FX Power Hedge system works is a bit complex. It all comes down to ignoring world events, chart trends, and all the other things people tell you to trust in "predicting" the market. You cannot predict the future. You cannot predict what direction a currency value is going to move no matter what past history it shows on charts, or what world events you "think" are going to have a certain effect. At least I can't do it, and I don't know anyone who can...I simply speculate there must be experts out there who can do it.

If you got an advanced degree in international studies and foreign currency exchange from Stanford (where I believe they actually do offer such an advanced degree), then cool. Maybe you "can" predict currency movement more often than most. Even then, can you get it right EVERY time? I doubt it.

Well, mathematics get it right. Consistently.

With the FX Power Hedge System (based on principles of statistical probability and causal effect), I can trade and profit consistently. The reality is that our world behaves in a way that conforms to mathematical principles. Math is the language of the universe. Math is what we use to explain and predict everything from the tides of our oceans to the movement of the stars. Not surprisingly, mathematical formulas are also the key to forex trading and currency movements. This is the secret behind the FX Power Hedge System.

So trade forex like Einstein would have done if he was here today trying to earn a profit on his PC at home. Check out the FX Power Hedge System (www.fxpowerhedge.com). It's as solid as the quantum physics now proven in the laboratory to conform to mathematical calculations Einstein made many decades before we could even dream of actually observing the behavior of a quark.

Fortunately, observation of the real thing didn't matter. With chalk and blackboard, Einstein used mathematics to predict exactly how the universe would behave. Now, with the FX Power Hedge System, we're just using the same mathematics to predict how the forex world will behave.

Sparks
IQ141

Sunday, February 22, 2009

General Comments

Welcome and I hope you are earning profits each day with the FX Power Hedge System. We want more successful FX Power Hedge traders to be able to exchange ideas, tips, results, observations and opinions openly here in this peer-to-peer community. That's what this blog is about, so please put your general comments here and share. Hopefully, this blog will serve as a source of support for traders who still have questions after dealing with my painfully long e-mails, or a nice place to post a chart of trades and get comments from others who are also trading the FX power hedge system.

Welcome.

Thanks,
Sparks