Showing posts with label forex. Show all posts
Showing posts with label forex. Show all posts

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.

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

Friday, November 28, 2008

How To Hedge Forex And Profit

A lot of people have long talked about the concept of hedging forex, or foreign currency trading. Until now, no one's figured out how to do it both profitably and consistently.

Well, after losing a lot of money attempting to succeed at technical trading and spending a lot of money on training, charts, etc...I got it.

The key to hedging forex is the simple understanding of a few bottom line realities. First, you have to calculate Stops and Limits pretty smartly in order to earn back the spread plus a profit. Second, don't get greedy. Just go for a small profit in terms of pips. Third, if you're hedging, you don't need to know ANYTHING about world events, chart movement, trends, or any speculation from the countless experts who believe this weekend or whatever will be great for a particular currency. They're not consistently right. And all you need is one bad day to wipe out your account...I've been there and done that after hearing "the X currency should really be strong this week". Yeah. Right.

The biggest single thing you must simply realize in order to appreciate the profound value of hedging forex is that there is just ONE thing you can predict about international currency values: they change. Period. That's it. All we can predict with 100% confidence and absolute accuracy every minute of every day is that currency values change.

In good economies and in bad ones, currency values go up and down. Best of all, this is all you need to happen in order to profit with the forex hedge system I invented, and that's been proven successful by countless traders around the world over the past two years.

Today, I am offering my FX Power Hedge system for sale to people because I find the current job situation horrible in the U.S., and there's no reason other people shouldn't be able to profit on a consistent basis as I do right in the middle of a major economic depression. Whether you're a veteran forex trader or a novice, you can actually figure out this system.

Visit my website: www.fxpowerhedge.com to find out more. You can order the system for $29.95 US, download it instantly, and start trading as soon as you master the fundamentals. (I urge people to practice for 30 days in a free account, although a guy in Australia sent me an e-mail last month and told me he was a veteran forex trader and started earning profits within an hour of downloading the system. So it depends on your level of knowledge and experience.)

That's it for now. I hope you check out the FX Power Hedge System at www.fxpowerhedge.com.

It works. Profit is assured. It's the wonderful advantage of what I believe may be the ultimate and safest hedge on the planet today: the FX Power Hedge.