Open for holidays

Tomorrow I will go in holiday for two weeks with no access to a computer.
Usually it’s recommended to “close for holidays”, due to low volatility.
But I’m curious, how will the Expert Advisors behave without my control?

I will leave them enabled (except ZuluTrade: I don’t trust that experts) for two weeks, hoping to have a nice surprise when I will come back, eheheh

I try the daily breakout strategy EA

From almost one month I’m trying in demo a free EA fround on the Forexometro forums: the Daily Breakout. (Right now the link doesn’t work as their forum has been infected by a malware that redirects pages on a fake page – if you can’t find the link to download, or don’t understand the settings, just comment and I will upload it somewhere)
It worked very well in demo, from yesterday it’s working in a live account.

Of course my luck let me enter the system at the wrong time… yeah! Let’s see this week what will happen…

Pip vs pip

I closed the previous post saying that a signal provider, to conceal the fact that he was losing a lot in short time, was trading on gold. Why? If you go to see on the 20 pips winers profile, we see that in a few weeks he made over ten thousand pips. WHOA!! A genius?
No, it’s simply a long standing bug in the ZuluTrade interface: pips are not weighted the same.
Let’s clarify:
If I buy 1 lot of EUR/USD, 1 pip is worth $10
If I buy 1 lot of gold, 1 pip is worth $0.10
He made over 10000 pips in a few weeks? I’m happy for him, but it’s worth as 100 pips of EUR/USD…
On the Italian edition of this diary, a “reader” commented with:

I tried in demo boreFXcorporation and it made 3000 pips in those days

Well, If someone like me, is accustomed to think to a small account where and trade microlots, 3000 pips is $300 – not bad, he could think.

The graph is sexy, you see comments on the official forum as “boreFXcorporation has earn 5700 pips in the last 7 days” , you have no experience on gold trading and you don’t know that 5700 gold pips “equates” to 57 pips = big loss!

On the bright side: on forums I told them this problem (in Italian), and they created a new gold-less signal: Tualatin. Right now it’s too early to say if it can work, in september I will evaluate it.

+N pip monthly

As you may know, on ZuluTrade, signal providers only get paid if the month ends with a positive pip result. If theoretically this is a good thing, actually it’s bad. Very bad.
Example 1: Forex Cruise Control.
With so many subscribers and that invested capital (in May: $14 million), every month he made at least $100-200,000 out of commissions.
If his trades are not successful, what’s better:
  • close them for customers’ safety
  • keep them open until they are winning and keep the juicy commission

Who cares if followers will be margin called!

Example 2: 20 pips winers.
As usually he was a crazy bull, closing and opening identical trades. So, his month was going to end with a negative pip result.
“Disaster! I won’t get my juicy commissions!!”, he would have thought, so he started to trade on gold like a crazy.
Why he started to trade on gold? I will talk about this on the next post.

RoboForex gives $15 for free! Or not?

Some time ago I received a message. If I opened an account with RoboForex I would have got $15 for free. The promotion, now over, promised $15 to new customers.
Me? I said “Yay!!! Free money!!!”
I subscribed, I gave id card, proof of residence, mobile phone with sms verification, and I followed the instructions to get the bonus – not extremely easy, you have to install a special expert advisor to do that (weird)
Guess what? According their expert advisor I already got the bonus!
I ask for explanations:

Hello, i just open a new account, want to do the no deposit bonus. Did SMS verification, installed mt4, logged in, i run verify_client on a graph, enter my verification code and I get “fail to get bonus.” Reboot MT4, try again, i get “You have already got welcome bonus”
I did not got any bonus, what I can do?

Their reply:

You’ve got the message “You have already got Welcome bonus”. That means the automatic system, which checks the recurrent bonus transfer and transfers bonuses to our clients’ accounts, has rejected your request to get the bonus.
Maybe it was somebody who used your PC or your IP address to get it
if the system has rejected you, there’s no way to get the bonus from our company

Somebody used my PC??? To steal just $15?? Funny, hahaha
I reply:

I followed every step, verified my phone, and there is no somebody who used your PC or your IP address to get it, because its a dedicated server with a fixed ip address registered to my company for the last 5 years.
If you cheat me on $15, how I can trust you to give real money?
Please close my account immediately and add my email and phone number to your do not contact list
Thanks

And theirs:

The bonus system operates automatically, so there’s no way to interfere somehow on that process.
Your profile has been blocked.

The question that I should have asked to myself is: why they give money for free? Maybe they think that the average customer would do a bigger deposit.
The fact is this: I gave all my personal data, id card, bank statement, phone to an untrusted third party for just the promise of $15.
I’m dumb.

How to get an unlimited ZuluTrade demo account

Updated may 2013: the guide has been updated and it’s available here.

Outdated guide (not working):

Did you find a nice ZuluTrade signal provider? Do you want to follow him, right?

The best action is to open a demo account and try his strategy on long term.
The problem is that the demo accounts lasts just 30 days, so in some cases you can’t really evaluate a signal.
Well, I got a good news for you: there is a way to open unlimited demo accounts.
The method it’s a bit long, but I will try to explain it in the easiest way.
First of all you need a main demo account: open one through this link. This account will be the unlimited one, so choose the desidered equity and leverage.
Activate the account by clicking in the email you received and voilà, we are in our demo account, enabled and operating!
Now, go to “Profile” and then “Public profile”
Enable the public profile by clicking on the button:
Now you have to logout from ZuluTrade, otherwise the next step will fail. I repeat: press “logout” on top right and exit the session.
Logged out? Go to the demo public page, for example http://www.zulutrade.com/Follower.aspx?ref=1&id=605436 and click on Open account
Do the same steps to open another demo account.
If we used the same email to register the two demo accounts, a dropdown menu will appear, to switch between them.
This is the second demo account:
As you see, the second demo account will expire in 29 days.
Shall we see when the first demo account will expire? Here it is:
The first demo account we opened has become unlimited!!!
Great, right?

Brokers and their prizes

Reading a topic on the SteadyOnFX forum, about the FXPRIMUS freeze level problem, someone said:

Fellow traders, be kind to FX Primus, they just received an award: “Best Trade Executions 2012” and “Most Reliable Broker Asia 2012”

So, someone else replied:

No, Best Forex Broker Asia 2012 is Instaforex!

And the final answer:

But, wait!
Exness is “Best Standard Forex Broker Asia 2012”

Who actually won the prize?

The truth is disarming: ALL OF THEM
Yes, this year the Global Banking & Finance Review gave SEVENTY prizes to brokers!
Whoa! That’s really an high-reputation prize!

The funniest part is that AVAFX won four prizes, for example “Most Trusted Forex Broker 2012”
Hahahahahaahahahahahahahaahahahahahahahaahahahahahahahahahahahahahahahahahahahahahahahahaha
Most trusted broker?
If so, I’m scared to meet the less trusted ones!

NumberOne vs NFP – July 2012

Every first friday of the month, at 8.30 am EST, the NonFarm Payroll is published, and it’s a statistic that usually it’s a bomb on EURUSD… and with NumberOne you can do a lot of money.
But this month was troublesome – I had to disable both LMAX and FXPRIMUS because I felt that they were messing with my trades.
The only honest broker left was ILQ, and…:
AWESOME! They also fiddle with the spread against scalpers!

Ps: I read that people on LMAX and FXPRIMUS got a good result, while I didn’t, because I disabled it, great.

A bloodbath also on FXPRIMUS

Yesterday FXPRIMUS suddenly changed the stop level and the freeze level, raising them to 3 pips.

That means it’s not possible to change the take profit or stop loss if differ less than 3 pips from the actual price. With a scalper like NumberOne, this is unacceptable and it leads to a big loss.

After the bloodbath that I suffered on LMAX, yesterday was FXPRIMUS‘ turn…
It’s a pity, because it was working exceptionally well… maybe TOO well…