Forexoma’s August 2009 Performance Report

by Vahid | Forex Market Analysis and Signals | Tuesday, September 8th, 2009

I know that many of you have been waiting for our August performance. Usually my performance report comes with some advice and tips. There are a lot of things that I want to talk about them now but I forget about many of them for now and I will just focus on the performance of two of our members and the way they use our forex market analysis and buy-sell signals to grow their capital. One of them is Asri who sent me his statement and explained about his forex trading style. I am not allowed to disclose his identity but I will have his trading statement here on the page and if you have any question, you can ask him using the comment form at the bottom of this page. Thanks to “Asri” for his support and I wish him more success in his forex trading and also his life.

Lets see what Asri has told me about his trading style and the way that he follows Forexoma analysis and signals.

Asri says:

“I have been enjoying reading your analysis and I have learned a lot from them. On August, I made more than 2000 pips based on your guidance. I hope I can maintain this performance. I try to understand every word in your analysis. Then I try to do on my own. I think that’s way I learn a lot. So when a trade hits a stop loss, it hits my stop loss not yours. So I learn to take it. I think this is the only way I can learn. I am by no mean an advanced trader. I am just beginning to learn and I find it very exciting. I am learning in the background and I knock your door only when I have a problem.”

Here is Asri’s statement for August. This statement includes the trades that we have sent to the members and also the positions that Asri has taken himself based on our analysis and the directions we have shown on the charts. There are many cases that we have more trade setups while the position that we have already taken is still open. We show all the forming trade setups on our analysis report, but we send only one of them, because we do not want beginner traders take all of the positions at the same time. However, it is up to the members to take more positions or trade based on the directions we show on the reports but are not sent to the members.

Our other client is Roberto. He has not sent me his statement, but he started a thread on Forexoma Forums on Aug 18, 2009 and explained how he started with a $5000 account and made $1225 in two weeks. Currently, his account is $7671.79 starting from $5000 on July 15. Click Here to visit his page on Forexoma Forums and become familiar with his method and recommendations.

Congratulations Roberto and Asri and we wish you more success in your personal life and business

I am delighted to announce that vTrades has decided to send them a prize. A Forexoma T-shirt, pen and keychain:

Before I list the August trades, I have to remind something which is already mentioned on the site, in several different places. Forexoma Live Market Analysis is not a mere buy-sell signal service. It is mainly an educational program. However, as I analyze the live market to educate the members, I find and share the forex signals. Therefore, members not only learn to analyze the market, but take the advantage of the signals we find. It means “they earn while they learn”. So I am not fully focused on finding and sharing the signals. I am mainly focused on writing the daily analysis. On the other hand, as members trade using the signals I share and as there are different traders with different trading skill levels among the members, I have to be careful not to do something to make any problem for them. For example if I email several trade setups at the same time, they may take all of them and then they get margin call during the normal fluctuation of the market. There are also many cases that I take a position, but before I share it with the members, it moves toward the target for several pips. Then I don’t share it with the members because they can not enter with a proper price.

Therefore, the below list that only covers the trade setups sent to members, is not a suitable criteria for our performance. It doesn’t cover all the trade setups and directions I analyze and report.

I explained this because most people always ask about the our pip result and they don’t ask if we also teach them something or not. The number of the pips that we make every month can not reflect the quality of the training that our members receive, however it can be judged and rated by our members. If you are a member of Forexoma Live Market Analysis program, please rate the educational aspect of the program. Please do not consider the pip result for now. You will rate the pip result too. Just please rate the education and information you receive through the program:

Loading …

The number of pips we make and the number of positions we take per month are the most popular questions I am always asked.

Here is the list of the trades we emailed our members during last August. Please take a look and then I tell you how much profit members could have made using different methods of taking the positions.

1- August 03
GBP-USD Long
Stop loss: 45 pips
Target: 45 pips - Triggered (+45 pips)

2- August 04
GBP-USD Long
Stop loss: 60 pips
Target 1: 30 pips - Triggered (+30 pips)
Target 2: 60 pips - Triggered (+60 pips)

3- August 05
CAD-JPY Short
Stop loss: 60 pips
Target 1: 30 pips - Triggered (+30 pips)
Target 2: 60 pips - Triggered the stop at breakeven (0 pips)

4- August 05
GBP-USD Short
Stop loss: 60 pips
Target 1: 30 pips - Triggered (+30 pips)
Target 2: 60 pips - Triggered (+60 pips)

5- August 10
EUR-JPY Short
Stop loss: 180 pips
Target 1: 90 pips - Triggered (+90 pips)
Target 2: 180 pips - Triggered (+180 pips)

6- August 13
GBP-USD Short
Stop loss: 72 pips
Target 1: 36 pips - Triggered (+36 pips)
Target 2: 72 pips - Triggered (+72 pips)

7- August 18
USD-CAD Short
Stop loss: 132 pips
Target 1: 66 pips
Target 2: 133 pips
Closed Manually: -93 pips

8- August 19
GBP-USD Long
Stop loss: 60 pips
Target 1: 30 pips - Triggered (+30 pips)
Target 2: 60 pips - Triggered (+60 pips)

9- August 19
EUR-JPY Long
Stop loss: 90 pips
Target 1: 45 pips - Triggered (+45 pips)
Target 2: 90 pips - Triggered the stop loss at breakeven (0 pips)

10- August 21
GBP-USD Short
Stop loss: 86 pips - Triggered (-86)
Target 1: 43 pips
Target 2: 86 pips

11- August 24
EUR-JPY Short
Stop loss: 105 pips
Target 1: 52 pips - Triggered (+52 pips)
Target 2: 105 pips - Triggered (+105 pips)

12- August 25
EUR-JPY Short
Stop loss: 120 pips
Target 1: 60 pips - Triggered (+60 pips)
Target 2: 120 pips - Triggered at breakeven (0 pips)

13- August 27
GBP-USD Long
Stop loss: 65 pips
Target 1: 32 pips - Triggered (+32 pips)
Target 2: 65 pips - Triggered (+65 pips)

How do we interpret the results?

Number of pips can not reflect the amount of the profit that the traders should have made, because any trader can have a different risk level and also the pip value of the currency pairs we trade is different. While a trader makes 10% profit through the above positions, the other one may have made 50%. The amount of the risk that a trader takes is something personal and depends on many different things. That’s why we have a position size calculator on all of our reports that members can use to calculate the size of the positions they take based on their account size, risk level and also the stop loss value that each position has.

As you saw, most of the above positions have two targets and one stop loss. The second target size is almost the same as the stop loss size and the first target is half of the second target. Our members have different options in taking these positions:

1. They can take one position with two targets. They close 50% of the position at the first target, move the stop loss to breakeven for the second 50% and let it hit the second target or stop loss. By taking 2% risk in each trade, if a trade hits the stop loss, we lose 2%. If it hits the first target and then goes against us and hits the stop loss at breakeven, we make 0.5%. If it also hits the second target, we make 1.5%.

So how much profit a trader could make using this method and by taking 2% risk only?

This is the percentage of the profit/loss that each of the above trades could have made: +2%, +1.5%, +0.5%, +1.5%, +1.5%, +1.5%, -1.4%, +1.5%, +0.5%, -2%, +1.5%, +0.5%, +1.5%

So in total you might have made 8.6% profit if you had taken a 2% risk in each trade. 2% risk is something that the money management rules recommend. However as I said, it depends on the traders. I personally take 6% risk in my trades. But please do not consider this as my recommendation to you. I recommend you to take a 2-3% risk in your trades maximum. By taking a 6% risk, I should have made 31.8% profit on August.

2. Some traders do not close 50% at T1. They just move the stop loss to breakeven when the price reaches T1 and then wait until it hits either the second target or the stop loss. So by taking 2% risk, if a trade hits the initial stop loss, they lose 2%. If it hits the stop loss when it is moved to breakeven, the lose/make 0%. If it hits the T2, they make 2%.

How much profit you would have made through the above positions if you had used this method?

This is the percentage of profit/loss that each of the above trades could have made: +2%, +%2, +%0, +%2, +%2, +%2, -%1.4, +%2, +%0, -%2, +%2, +%0, +%2.

So in total you might have made 12.6% profit if you had taken 2% risk in each trade only. By taking 6% risk, I could have made 37.8%.

As you see there is no big difference between the two methods on the trades we had on August, but the result can be different from month to month.

3. Some traders do not move their stop loss to breakeven. They take one position with no T1 and only one target at T2 (and of course the stop loss).

How much profit you would have made through the above positions if you had used this method?

This is the percentage of profit/loss that each of the above trades could have made: +2%, +2%, +2%, +2%, +2%, +%2, -%1.4, +%2, +%0, -%2, +%2, +%2, +%2.

So in total you might have made 16.6% profit if you had taken 2% risk in each trade only. By taking 6% risk, I could have made 49.80%.

4. Some traders take three positions with the same stop loss. The first position will be closed at T1. Then the stop loss will be moved to breakeven for the second and third positions. The second position will be closed at T2 while the third position has no hard target. The third position will be closed after forming the first strong reversal signal. For example when we are short, the third position will be closed after a downtrend resistance breakout. Using this method, one can maximize his/her profit with the third position. When you move the stop loss to breakeven, you will have no risk.

It is not possible to calculate the profit we could have made trading the above positions using the 4th method, because I didn’t use this method on all of the above positions. However, this method can be so profitable even if you can maximize your profit with one position in a month. For example, on August 10, we took a short position with EUR-JPY. If we had a third position in the way that I explained, it could go to profit for over 600 pips and it was still open.

Now it is time to ask the members to rate the signals they received on August. If you are a member of Forexoma Live Market Analysis, please rate the quality of the buy-sell signals you received on August:

Loading …

How do you rate the Forexoma Live Market Analysis program in general? Please consider everything from training, market analysis, buy-sell signals, support, price and… .

Loading …

Thanks for your patience with me.

Best regards,
Vahid

Further Reading:

20 Comments:
post a comment

Comment by Paul

2009-09-08 09:17:10

Vahid,
This is the most accurate interpretation of actual and verifiable results I have ever seen reported on any Forex site.
As you mentioned, any profit realized depends on risk % and the win/loss ratio of the trades and cannot be calculated by just counting pips.
This is another example of the integrity of this program and I am proud to be a member.

Paul

PS. What investor wouldn’t be happy with a 10%+ monthly return on equity for a 2% risk!!!