I can understand the fear of trusting a broker you may not know much about. But that is where the problem and the solution lies.
If you are un-easy about your choice of broker, then ask yourself why are you. Did you do your research? How long have they been in business? Where are they located? Did you contact them and ask your questions? How did they respond to your questions? Did they address your concerns? How fast did they respond? Was it by phone, e-mail or online chat? How many times did you contact the broker? Are they registered with any agencies? Have you looked at the reviews from known review sites (i.e.: FPA)?
Everyoneâs experience will be different. Every broker is different. You are developing a relationship with this broker and hopefully it will be for a long time. I have had my fears and concerns too. It appears to be part of growing to be a trader.
I would add that if you feel you need to talk to anyone on this thread about their experiences with their Broker, it might be better served to discuss this through a private message with that person.
I personally think a little light conversation about brokers is fine especially when it concerns profit and profitability.
As for trust and willingness to deposit 100k into 1 account the only thing I can suggest is to trade based on the 100k while not actually having it all in the broker account. For example you know you are willing to risk x amount. Lets say for arguments sake 2% lets say you have a max of 5 open orders than your maximum exposure at any one time would be around 10% The tricky part is the leverage thingy. If anyone has a good way to calculate this, that would be great.
Thinking out loudâŚ
100k to trade
100k x 100:1 leverage
10,000,000 in lots
10k max exposure
10k x 100:1 = 1,000,000 in lots
Plus you would have to account for broker minimum margin requirements, for example if you drop below x amount you would be subject to a margin call.
Anyway I would be interested in anyoneâs ideas (maybe by pm) But no matter how you look at it you could deposit around 50% of your intended account size and that would at least reduce your exposure. Food for thoughtâŚ
I agree with your first statement Johnny (especially the last part) but I also agree with Alex!
As for the idea of reducing exposure by investing a % (50%) of the amount you are willing to risk - I like the idea but in reality it is only possible to work out a strategy based on that idea if you have an good understanding of expected return % a month AND the investment strategy you wish to employ. By investment strategy I donât mean trading strategy - choosing SmartFX products, other EAâs or manual trading but whether you wish to withdraw cash at any point and an idea of a âgoalâ over a certain period of time.
For example if I thought I could get an average 10% return a month, and I didnât need to take any cash from the investment, an initial $10,000 would be worth around $280,000k using simple monthly compounding after 3 years.
If I doubled my risk (expecting 20% return monthly) and halved my initial investment, risking $5,000, it would be worth around $2,950,000 after 3 years! If I reduced my initial investment to try to match the $10,000 @ 10%/mth i.e. to gain around $280,000 after 3 years, assuming 20% return, I would only need to invest just under $500!!!
Of course the issue is that this doesnât reflect a lot of peopleâs real-life situation (let alone long term EA sustainability/market stability) and if I needed to cash-in my investment after 12 months:
$10000 @ 10%/mth would be c$28,500
$5000 @ 20%/mth would be c$37,000
$500 @ 20%/mth would be c$3,700
It isnât at all simple and I havenât even mentioned the margin complication that you touched on. There is an argument that halving your initial investment and doubling your risk looks very attractive but you would have to be very, very sure about the EA/trading strategy and I think Robert would probably be a little uncomfortable :58: with the idea.
I bet someone who is a math genius could come up with an all singing all dancing solution but it is beyond me!
There is a good chance I have messed up some calculations above - be gentle if I have :26:
Agree with you there Johnny, when the broker topic/ question concerns profit/ risk/ latency e.t.c.
I perhaps overzealously commented on what I thought was a great thread degenerating into posts about the inner admin workings of individual brokers.
The other concern I had was âexhaustingâ Roberts âbatteriesâ in answering relevant (to the EA) queries as I know we all agree we are lucky to have developer who actively participates in these discussionsâŚ
Anyway, good to see you back Johnny and the EA has started the new year as it left off in 2011
I see your point. Robert has been more than generous with his time and effort! His time shouldnât be wasted with broker related issues and things like that. Real nice return btw.
Iâll give an answer to a few questions some of you left me today. Iâm gaining a lot of experience using the scalping EAs and I found my way over here from the âmillion Dollar pipsâ FORUM which I know some of you have tried. After that turned out to be a big failure I bought the master sculptor. I like the scalping EAs.
As for brokers GOMARKETS is my third attempt at getting the scalpers to work. As you might have discovered that spreads are not the only important factor. Execution time is also important. And so far GOMARKETS has been awesome.
My experience with HOTFOREX [NOT CURRENEX] was that the spread started out tight. But then they started getting worse. They started widening from 1.9 to 2.5 and up. This was making the million-dollar pips EA not trade or trade very poorly.
So then I went to GOMARKETS after doing a lot of research. They have some of the best spreads and they have very reliable servers. Thatâs when I started the master scalper. So far itâs been fantastic. Iâm up about 8%.
Since weâre all here to learn and share information I will tell you my setup. Iâm not running a VPS but I do have a 24 Mb per second DSL Internet connection. I run master scalper V 7.1.8 on a laptop that stays on 24/7. The laptop is wired to my router [do not try these EAâs with wireless connections you create latency].I make sure that my trading platform is connected to the closest server based on my location. So if I happen to go somewhere traveling I make sure that my platform is connected to the closest server. I also donât do any downloading or heavy Internet use during major trading times or when I see any open orders.
As for my settings on master scalper Iâm running all five pairs at the same time with default settings except for one exception. I turned off the data input for no trade day. So far itâs been making really good trades. I seem to be off to a good start for the new year.
All in all is this EA seems to be the real deal. I have about half a dozen EAâs and master scalperâs logic seems to be able to cope with changing markets.
I hope everybody is having good luck and having a great trading start the new year.:47:
Hi, thank you for your answer. I will start to trade again next week and before I was using Fxpro but until now I didnât get good results. Anybody already tyed Fxpro ? They have good spreeds also but I will research more and think about move to Gomarkets.
I donât have a good internet connection but I will try to use the Amazon cloud service for it.
If you know you do not have a good internet connection then changing brokers may not solve anything. The EA is good but it really needs a good âenvironmentâ to deliver the results.
I have tried this on my laptop via a home internet connection (wireless and wired) and now I am using a VPS. If your home connection is not fast and not wired to your router then a good VPS located close to your Brokers server really is the way to go.
The VPS does cost a bit, but once I got it set it up the EA responded gratefully my âpayingâ the monthly VPS subscription fee the following day:)
Very similar Alex! Are you running the combo or just MS?
Below is filtered for MS only (the account runs a couple of EAs). There have been a couple of very short interruptions as well as the holiday break due to VPS issues.
No-one i trying to âbring you downâ mrql itâs just that there are specific forum threads for specific types of queries - this one if for SmartFX EAâs and there are others for brokers etc. If there are lots of posts in a thread unrelated to the purpose of the thread then the thread loses value for everyone using it and as mentioned above Robert is very generous with his help and advice but if his time is diluted by non-SmartFX related questions then again everyone suffers (including Robert!).
Hi Guys,
To get back to our subject, the EAs are back trading today.
The UsdJpy will not trade till Monday because of Non Farm Payrolls, but the rest have their own Friday schedule (short day) in place and we should see some action.
A few brokers who entered the Jan 6th date before the 0:00 GMT time got a few trades yesterday already.
In a next update weâll get everyone to start trading with GMT time after a No Trade day, which will help compare accounts and brokerâs performance better.
Happy Trading everyone!
Yes, I am running the combo on default. The only difference I have made is turning the news filter off for my âfavouriteâ pairs (EUR/AUD and EUR/CAD whcih currently carry around 85% of my overall return).
I am running 50:1 on pepperstones with a CNS VPS.
They account for over 90% of my profits but I have tweaked the percentages to add risk to the better performing pairs and reduced the less well performing ones. I review these every week or so by looking at the previous performance (2 weeksâ, 3 weeksâ and 4 weeksâ). When the euro calms down a bit I will add the BH back in the mix.
The EUR/AUD bot that is part of this package is RIDICULOUS ! Seriously wins 90% of the TRADES! That bot ALONE pays for the package. THe otherâs are good as well (except USD/JPY), but the shining star in my opinion EUR/AUD. With that one bot alone, I can rule the world!!! MUhahahahaha!
I understand your feeling on the BH, since running it has been hunted rather than been hunting. But i still believe that it will come good in the long term and will keep you posted when it comes out of the âredâ.
