Has any of you ever heard about this "strategy" before? Is it real?

It is not too good to be true.
It’s a long term strategy. I know that I cannot become rich in 6 months/1 year
But I use it as an investment; a long term investment, that is easy to manage, based on my needs and risk attitude.

I know that there are many other valid trading strategies that in the short-period yield much more money,
but I prefer the saying: “slow and steady wins the race” :wink:

what does it mean “due to its charateristics” ?

-No stop loss,
-0 trades in loss
-rigid money management

For traditional traders DD is:
The amount of money that has been lost in one or more trade
+
the floating of the open orders in negative

For us DD is not the amount of money has been lost, but only the floating of the negative orders.
In the case of the chart of MyFxBook with 68% does not mean being unlucky.
it is planned for and anticipated from the beginning.

Exactly! lol :slight_smile:

0 trades in loss and no SL?
it’s the famous “long term strategy” that brings your money to hell? :58:

No it isn’t.

The reason we don’t use SL is because … it is a mathematically controlled hedging strategy, where the account is managed so that you can fully use the maximum leverage you have in your trading account

From what was stated earlier you only trade fiber. It’s impossible to hedge a risk with only one instrument. No stop loss is strange not even a catastrophic one I know even type B arbitrage strategies still employ them which is about as risk-less as one can get in the real world. If someone ever found type A it would be gone in nano seconds. Also in some previous post you mentioned something about 68% DD being planned and accounted for. So you knew before you walked into this that there’s a chance the account could get so small you need greater than triple digit returns to get back to break even???

Could you please clarify the above statement so that I can respond to you?

Why do you think the account gets so small?
If you read my previous posts better I explained that the DrawDown is not losses, but negative orders that soon or later came back to profit.
So my account never becomes small. I have zero pips losses since I began trading with this strategy.

You can do some research on the vocabulary if you don’t understand it, Google will be a good place to start. But lets get to the nitty gritty, i am saying that in general, arb is one of the most risk less trading strategies that are in existence. Your strategy can not replicate that risk profile, so therefore you will take a loss at some point as even those strategies can have losers. If you don’t actually use a stop loss and wait for the “sooner or later” it comes back to profit, you will just take an MC and blow up.

Now regarding draw down, its the peak to trough measurement of your equity curve, where the max value can only be measured after a new high is reached. This is a presumed daily mark to market which is standard practice, you have in fact taken that loss on your equity curve and therefore have taken a draw down %. Now if your measuring closed position draw down which is a very specific kind of draw down then no, but in general open equity is counted against you. So theoretically you have already lost that money, as you are not guaranteed to receive it back and can not with draw it on demand.

My equity balance is in profit from the day I started, 2 years ago, I don’t mind if there are some positions in loss, the Smalfi strategy always keeps the account integrity safe. The account integrity is the first rule of the smalfi method. We don’t mind about the single positions, but the account integrity on its own. To be scared for a single position or cluster is insane.

Exactly, It’s a new way of trading, a new approach.
And it is also the safest I know.

soon or later? i hope for you before the margin call…

Unlike most others here, I do not think that not using a stop loss is strange as I hedge myself. Having said that, at some point you will have to break the hedge in order to actually earn profits and on some trades you will have to accept a loss unless you keep hedging with bigger lots which can be very dangerous if the currency will keep moving against you. At some point you will accept an equity loss, but if you only count closed positions, assuming your account does not blow up in your face, you are right that you will never close a position for a loss.

Good! So we speak the same language :slight_smile:

No, I never break the hedge because the strategy works according to historical highs and lows of the price.

The size of the trades are all the same and are proportional to the margin. I use micro-lots.

Smalfi is mathematically configured as a trading program for use with the EURUSD; the first target is not to earn money but protect the capital. By protect, I mean that the account doesn’t “blow up” under the two extreme situations where the currencies suffer the worst.
When does a cross suffer the worst? When price hits its historical highs and lows.
Using Smalfi means having a tool that allows you to go far beyond the highs and lows.
But as we all know, markets most often stay fairly level (sideways).
So, with Smalfi, I make a profit each time the price changes, day after day, month after month.

imho, no stop loss == margin call

In the end if you are happy with your strategy, nobody can say anything against it. When it comes down to it each traders needs to find a strategy they like which delivers the results they seek.

how can you gain if you don’t break your hedge?
i mean, with an hedge you can open a long and short position in the same time and compensate…and when you are sure of your trade you close the loss and run the other in profit…

if you never break it you are not able to gain!

We get the gain by closing only positive trades. So we break the hedge without losses

With Smalfi Method you’ll never face trends against you because you will profit whether the market rises, whether the market falls, whether the market is sideways.

We make profits thanks to the EURUSD’s volatility.

With pure strategy 21/1 (but I’m pushing it a little bit more) in 2011 we took home 25k pips while in the chaotic 2012 we took home 12k pips.
Not bad I would say, if we consider that all of this was possible without the use of stop loss.

In these first two months of 2013 have already collected about 2500 pips … so it seems that the volatility be back on our side :slight_smile:

Lol… Some random guy starts a thread “asking” about some course you have to pay for that he just stumbled upon magically… And Jenny, who happened to create her account the same day the thread is created happens to know all about this super duper hedging method, comes in and makes a nice little advertisement for the fee based course… Nice

Haha… Someone is doing some “detective” work around here…lol.

Don’t mess it up because I want to know more about this new way of trading and a new approach.
And it is also said that it is the “safest”…:wink: