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.
Friday, October 23, 2009
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.
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.
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