Investor digest for Q3 2019
Hello, colleagues currency speculators and investors!
The beginning of the new quarter is the time of publication of the ratings of PAMM accounts of leading Forex brokers: Alpari, Instaforex, Forex4you, AMarkets and Roboforex. As always, the material also focuses on cryptocurrencies, publishes important fundamental news and trend forecasts.
At the end of the review of PAMM accounts, you can read an interview with the manager Daniil Yudin and get acquainted with the history of the search for strategies and observations made "on the other side of the barricades."
PAMM accounts recognize and certify
The trust management service Percent Allocation Management Module, abbreviated PAMM, invented 11 years ago and patented by Alpari, can go into the category of internationally recognized investment products.
Non-profit self-regulatory organization FinaCom PLC LTD (The Financial Commission), a well-known regulator in the Asian Forex market, began in April to certify PAMM-based brokers. This is good news for traders and investors, able to increase the flow of funds, increase competition among managers and lead to the development of some general rules of money management in order to prevent deposits from being drained.
At the moment, the PAMM-account is only a module of the percentage distribution of profits and losses received in the course of financial activities of managers, which are not limited by anything but the desire to show the result in order to attract investors. They can use any strategies, the responsibility for the selection and analysis of the results lies entirely with the Principal.
The task of the digest is to help select accounts of successful PAMM managers, avoid hype and dangerous Martingale. The strategy of averaging and increasing the unprofitable position is still popular with PAMM managers because of a rather long series of successful “drawdown overlaps” on quotes rebounds.
Forex Fundamental Quarterly Forecast
In the first half of the quarter, the outlined growth in the currencies of developed and developing countries will continue, due to a decrease in the Fed rate in July.
Strategies with a bet on the long-term strengthening of the American currency can increase profitability only in the middle of the third quarter of this year. The return of currency speculators and investors to active purchases of the dollar will be caused by the response of the Central Banks to develop incentives to support the national economies, which in itself serves as a signal for anticipating the crisis.
Additional demand for the American currency will be ensured by the "exit to the cache" of stock market traders in August and September due to factors:
- Seasonality (summer, vacation period and lack of news);
- Uncertainty caused by the change in the composition of the European Commission, the elections in the UK and the open Brexit issue (the deadline for the "default exit" is October 31);
- Trade negotiations between the USA and China - the topic dragged on, which raises doubts among investors about the parties' ability to reach consensus;
- Growing tensions in the Middle East.
At the end of September, the yield in dollars and US Treasury bonds will increase due to such events:
- Leaving Mario Draghi as head of the ECB;
- Waiting for a deadlock in the discussion of the US budget (October 1), given the relationship of Donald Trump with Congress, where Democrats have control over the House of Representatives.
July main economic news
- July 15 - China's GDP for the last quarter, a likely economic decline is expected, but investors will look at the industrial output that came out with the gross product, which can show growth. This will weaken the dollar, returning growth to major currencies;
- July 16 - inflation in New Zealand will strengthen the national currency trend, showing growth since the beginning of the year, justifying recent measures to support the economy.
The number of applications for unemployment will show signs of economic growth in the UK, which may lead to active purchases of the pound until the end of the month.
- July 17 - inflation will determine further trends in the Eurozone, Canada and the UK;
- July 18 - employment in Australia may unexpectedly depreciate AUD due to the difficult situation in the mining and manufacturing industries;
- July 30 - Fed rate sets the trend for August.
The President of the United States seriously insists on stimulating the economy, which may indirectly affect Jerome Powell's decision to lower the discount rate. The head of the Fed hinted about this almost openly in June, which will lead to a trend towards a weakening dollar in July.
Having played this event in advance, speculators will “remember” about the slowdown in the global economy and join investors by buying a dollar. In August, a U-turn and a strong strengthening of the US national currency is expected at every sign of weak economic indicators.
August will be held with a small amount of important economic news:
- August 1 - the Bank of England rate is expected to remain unchanged due to the “freezing” of its value until the moment it leaves the EU;
- August 14 - Eurozone GDP will not show changes in growth dynamics, which will further strengthen the US dollar.
The topic of the rate will arise again in September - before the Fed meeting on September 18, 2019, the US dollar will again “yield” to the major currencies, the “longs” of speculators will actively work to strengthen them.
5 signs of professionalism of a PAMM-account manager
Behind each portfolio and account of the PAMM service there is a person whom we will never see or communicate “live” in order to compose a portrait of someone whom we trust money. We are left with only dry numbers of financial reports of the service. Here are some tips on what you should pay attention to first of all in order to make a decision on investing in a PAMM account.
A good manager always draws up a resume, which indicates work experience. Try to choose a professional who has worked for 5-7 years, is familiar with several types of financial instruments and is not fixated on Forex. With this experience, 2-3 years of managing a PAMM account is enough if the results are stable.
2. The average trading result of 30% per annum
Such a profitability figure is the average statistical result of many stable strategies, a larger one indicates an aggressive or risky trading system that can fail. Also pay attention to the number of updates of equity maxima, it should occur at least three times a year.
3. The presence of an adaptive trading system, strict risk control
The trader should not use the purchased robot, otherwise everything will end with the “Chuvashov story”. In each review, we publish interviews with managers, from which it can be understood that adaptation and optimization of strategies is a constant work of a trader. The market is changing, systems are becoming unusable, so the manager must be able to search, test, change tactics, filters, etc.
About risk management, there are many articles on our website. Be sure to apply the tips published there to your portfolio. Control the value of the allowable drawdown and risk for each trade, make sure that the trader systematically puts stop losses and take.
4. Work with investors
Money working on the market through the “wrong hands” is the same emotional burden as independent scalping is the most “exhausting” type of trading. Having no way to influence the course of events, it is important to know that you can ask a question and get an answer. Avoid managers who do not support investor feedback.
5. The coefficient of participation and the volume of the equity fund
The numbers do not lie: the key to the fact that the manager is not going to merge is the size of his own investments in PAMM (especially the unremoved balance). The second parameter of investor confidence is the size of third-party investments in the fund.
Of course, there are exceptions such as Elena’s Gornica PAMM Account from Irkutsk - it especially attracted investors with a high level of manager’s capital, but there it was worth paying 90% of the historical drawdown. We wrote about this above, bearing in mind the obligatory observance by managers of money management.
PAMM Account Rankings for Alpari Managers
In this section, you are presented with three types of Alpari PAMM service account rating, divided into blocks of the five best results in each. The first five are the broker rating version, the second is the selection of a stable result according to the manager selection algorithm described above, and the third version is the popular accounts selected by visitors to the TradeLikeaPro forum.
The best PAMM managers according to Alpari
In July, Alpari PAMM rating was headed by a manager Mik777 with a score of 111. This is the third and most successful test of trust management, a trader has one account in the archive and another strategy that has been working for five months.
An interesting fact is that a trader became a manager three years ago, just by buying an adviser. After successful backtests and optimization, PAMM was opened with a portfolio of five major currencies, where EURUSD and USDJPY are equally divided.
The purchased robot attracted the manager $ 87 thousand of investments, which brought investors 1361.9% of profit for 3 years and 2 months. Maximum Drawdown All Time - 37%profitability over the past year, 17.3%. AT last quarter trader recorded minus 11% but the average annual income is 80%.
According to our observations, investors use a 13% drawdown as a signal to enter, a trader can “sit in the red” for 4 months.
Manager under a nickname Avp555 takes second place in the ranking of Alpari. Considering the "two-humped" equity chart, it is difficult to understand the logic of assigning 5 stars. Perhaps the role in promoting the account in the first places was played by the experience of the trader - almost 9 years of trading, which ensured a total return on investors of 1075.8%.
Despite the rather low leverage used (1 to 10), the trader “managed to catch” maximum drawdown of 70%, from which came out a year and a half. Behind Last year account brought to investors negative return 36%investors who joined in the last quarter are more fortunate received + 3.4%.
The account never got into our digests, like the other three Avp555 portfolios with similar “double-humped” equity. Despite the ambiguous history of management performance, the total amount of attracted investments exceeds $ 90 thousand.
In third place in the broker rating is a relatively young portfolio Arcadian Lombardy’s manager, who runs 6 live PAMM accounts and buried 15 portfolios in the archive. Prior to this review, we did not consider the strategy of the trader - this is the debut summary of its results.
Pay attention to the May jump in equity, around this time many account experiments were busted, judging by the archive. Perhaps the trader found an approach and developed the necessary presets.
Investors who invested in Arcadian 2 years and 7 months ago received a return of 805.4%. During this time maximum drawdown reached 44%. Behind this year managing director Lombardy revealed profit at 188,6%, based on the results of last three months trade brought to investors + 34,4%.
If you paid attention to this portfolio, consider the following statistics: the average drawdown where you can enter or add is 6%, the duration of stay is minus 14 days. A trader trades with activity every two days, uses a leverage of 1 to 34 at maximum risk.
In the fourth place in the list of the best PAMM strategies were long-term investments Auto-tortoise. A trader successfully traded in 2017 and 2018, often falling into our digests.
The long-term approach to multicurrency trading reflected in low income, amounting to 531.7% for 3 years and 10 months of the existence of the account. Unfortunately, the trader was not able to show a conservative approach to risk management, a strategy sagged to the most dangerous 43% with a shoulder used of 1 to 43 at maximum risk.
This year brought investors a loss of 37.3%, the quarter is closed with a minus of 3.3%. It will be useful for traders who choose this account for investment to find out that the average profit is 38% per annum, the drawdown lasts about 1 year, you can invest after the equity drops from the maximums by 35%.
A rating worthy in all respects closes the score Moriartishowing the benefits of trading tactics along the lines of resistance and support. The trader received more than $ 1 million in management due to high performance, which brought investors 102618% for 4 and a half years.
The exceptional results of the manager do not need to be presented; he is a regular participant in our reviews. The average annual investor income is 191%, the last 12 months showed 86.4%, quarterly profit was 18.1%.
The risks of strategy in the past are quite large: the drawdown reached 74%, Moriarti sometimes used a leverage of 1 to 212. Note that these are the maximum indicators for the entire period, as mentioned in previous reviews, the trader significantly reduced these numbers.
Now 3% drawdown is a trigger for entering PAMM. The manager, on average, in three days leaves the drawdown thanks to active, almost daily trading. The maximum drawdown period for all time is 4 months, which is not so much against the background of the statistics published above.
Rating of stable PAMM accounts of broker Alpari
The selection includes accounts that do not violate the principles set forth above in our tips for choosing a manager for investment.
In the first place was the account of Daniil Yudin, an active manager known to users of our forum, trading in four trading systems presented. In this review, we will consider the Banker TS, details of which can be found in the “Bearded PAMMs” section or from an interview in this digest.
Banker It is interesting in that the manager leaves 90% of earnings to the investor, uses top-up in the position (not to be confused with averaging) on the pullback and two independent, simultaneously trading advisers in the “only long” and “only short” modes.
The system brought investors 122.4% in a year and a half with maximum drawdown of 17%. This year trader closed with the result 28,4%, profit indicator for the last quarter + 4.3%. The manager does not go beyond the shoulder 1 to 52, on average, the drawdown period is 1 month, it is recommended to enter with a correction of 3% of equity maxima.
Manager’s PAMM account is in second place Sam managed to earn investors 298.5% for 2 years and 8 months of work. The trader did not get into our reviews before because of the high leverage used 1 to 136 at the maximum with fairly modest profit indicators (on average 50% per annum).
However, a more detailed examination of the trading results shows that the risk increases due to the pyramid of positive transactions, Martingale is not used on the account, but the drawdown is at a maximum of 19%.
Trader closed current year with a result of + 25%, but the last quarter was minus 3.1%. If you pay attention to the PAMM of the manager, focus on the entrance when you roll back 11% of the maximums, the average drawdown time is 2 months.
We offer to pay attention to the results of the account. Ejackal, the trader has so far collected little investment due to the low volume of cu, therefore, is in the “tail” of the Alpari rating and has passed our previous reviews.
Despite the modest amount invested, the strategy has been working steadily for 2 years and 4 months without the use of martingale and averaging, with stops and take. With an activity of two or three transactions per week, the manager brought investors 162.6% of the income maximum drawdown 29% for all the time of bidding.
The current year is closed with a profit of 40.6%last three months passed with minimal profit 0.7%. On average, the manager fulfills 4% of the drawdown in 10 days, using the maximum leverage of 1 to 86.
A stable result with low risks is demonstrated by a manager for 3 years Konvergent giving investors 125% with a maximum drawdown of 16%.
The trader did not get into our reviews because of the high leverage of 1 to 234, but when examining the trading results in detail, it turned out that it was used only at the very beginning, now the risks are more than conservative - 1 to 5.
Unfortunately, this year finished almost to no avail - minus 0.4% as well quarter - minus 6.2%, but this is an ideal situation to enter the strategy. The average rollback level is 7% according to statistics, but the investor needs to be prepared for a drawdown of 4 months.
“Closes” our rating of stable traders PAMM-account of the “long-lived” FelixTheCat, who has been working for Alpari for 7.5 years. I would like to draw attention to one of his accounts Mix stylenever before published in our reviews.
The reason for this is a modest total profit of 61.6% per 5 years, but the trader managed to achieve an almost constant increase in the account in 2018-2019, significantly raising the average profit margin to 7% per annum.
The maximum drawdown for the entire period was 19%, now it does not exceed 2% on average, trade risks - 1 to 14 at the maximum of leverage.
This year trader closed with yield of 8.2%, quarter brought to investors +1%. If you are planning to enter, please note that the trader trades with low intensity (one or two transactions per week).
The most popular Alpari broker accounts on the TradeLikeaPro forum
Strategy comes first Gemmaster the manager of eBaykal (Andrey Shevelev), who revealed the details of the “labor path” in the Forex market in an interview with Alpari broker, as well as in the digest section for the first quarter of this year.
The Gemmaster account is located in the “Bearded PAMMs” section, has experience 5 years and 11 months, for which he brought the first investors a return of 34,224.2%, so he often fell into our reviews. High interest rates are not without drawdowns throughout the history of trading account as much as possible declined up to 72% staying at a loss of 1 year and 7 months.
This year eBaykal finished with a modest result 2,2%, last three months brought to investors 1,7% arrived.
In second place in popularity and attendance is the page of the “bearded PAMM” manager Rever27. The novel is known for the fact that a number of its author's advisers for the Forex market are located on our forum. More information about him can be found in an interview published in the investor's digest for the first quarter of 2019.
User attention is often focused on the account. Eternity which for 5 years and 4 months its existence brought investors 999% per annum. Maximum drawdown of account 58%, Roman allowed the use of leverage of 1 to 116, but this is a “justified” risk for the martingale strategy.
This year closed unsuccessfully minus 6% as well quarter - minus 15.7%, a sharp rebound in the markets affected the grid.
PAMM account took third place in popularity. Perpetuum mobileworking 3 years and 5 monthsgiving investors 609.1%. Manager details and manager plans NPM23 can be found on the forum page of TradeLikeaPro.
Obviously, there will be questions for NPM23, the situation repeats on the end of the fall of 2016, in March 2019 the equity line sank sharply, which led to an annual result minus 25,6%. The last quarter is closed at + 0.7%, which gives hope for the beginning of the restoration of a steadily growing trend.
For reference: maximum historical drawdown 49%, the maximum length of stay in the red is 10 months.
At the end of the review of popular PAMM accounts of Alpari broker, discussed at our forum, I would like to note the conservative portfolio of the manager Farid 84, working 2 years and 8 months on a PAMM account Real Earnings.
The first investors received all-time profit of 272.2% with maximum drawdown 25%. This year trader closed with a profit of 6.3%earning over the last quarter + 1%.
As can be seen from the graph, at the moment the equity curve is adjusted after reaching new highs. Statistically, 6% of the drawdown is the current threshold at which you can enter, waiting for the recovery of a growing trend. The investor must consider the possibility of staying in the red for about 2 months.
Overview of Instaforex PAMM Accounts
Instaforex broker combines two types of accounts in the investment service - PAMM and Forex Copy, the latest version provides for copying signals by subscription without transferring funds to the manager. Our review provides a rating of “mixed” and separate such accounts.
In the first place is the "young account" with the name of the project "HOLLYWOOD"Which recently turned year. During this time, the trader managed to bring investors 417.07% profit, the result of investing in recent three months amounted to 186.70%.
PAMM differs from traditional portfolios, the trader trades exclusively binary options, which is not prohibited by the rules of InstaForex broker.
For investors who are not accustomed to trusting funds to managers, choosing their investment size on their own, you can pay attention to the ForexCopy account Key MM, auto-follow which signals throughout 1 year and 8 months brought investors a profit of 98.03%.
This year trader finishes with result +35%, for the last 3 months total investment 5,11%.
Project8181 - This is a PAMM account, existing throughout 1 year and 8 months which previously did not fall into our reviews due to mixed dynamics until September 2018. Last fall, the trader was able to show exceptional results, having unwound the total portfolio return to 106.87%.
The main share of this earnings for the current year and made up + 84%, last quarter brought to investors + 11,39%.
Summarizes the rating of the broker's PAMM service Instaforex manager's portfolio jaybon visited our quarterly reviews three times. The trader works in copy and investment systems throughout 1 year and 8 monthsshowing a consistently high result, reaching 16279.63%.
Only for the last year investors earned income 871% quarterly closed + 191% profit. When choosing this portfolio for investment or auto-follow, pay attention to the fact that Martingale tactics are present in the manager’s strategy.
Rating of managers of the social trading service of the Forex4You broker
The Forex4You broker provides services only for copying traders' transactions on a separate dedicated Share4you social trading platform.
In the first place in the rating of our review, we chose a long-lived account ProInvest, traded throughout 4 and a half years. During this time, the signal yield was 3939% with a maximum drawdown of 61%.
Last year brought to auto followers 83,61%, behind quarter trader can close 17%. The manager trades medium-term strategies in three pairs: EURUSD, USDCAD, USDJPY. Signal accuracy -71%, average transaction duration - one working week.
ROBOvladelets / RKT8 - the most popular strategy for auto-follow among Forex4You subscribers, despite the relatively "young" account, traded throughout 1 year and two months. The portfolio is fully automated, the Martingale Expert Advisor works, which brought "followers" 581% with a maximum drawdown of 35%.
Expected Return the current quarter is 38.4%. The robot trades three pairs of major currencies, the signal accuracy is 73%.
With the outward appearance of statistics, it is possible that the project is behind the hype described by us in the first quarter digest. This idea is prompted by the similarity of the slogans in the profile of the manager with the project of Chuvashov, although this can be a simple borrowing.
The optimal combination of profitability and risk is offered by the manager’s auto-follow strategy Tir, positioning trading as a hobby. Despite the use of martingale, manual intervention in the automatic strategy and trading of exotic pairs, the trader managed to bring subscribers 899% for 4 years and 1 month.
The maximum drawdown for the entire period was 67%profit margins for the current year 59.38%, alleged quarter closing + 16.18%.
The rating of the Share4you service is completed by the manager of Danial, a member of our forum who gave an interview in this digest. The signals of his Safety strategy were presented in a previous review.
This year passes for the manager and subscribers successfully: fixed profit + 30.6%, the quarter may end with a result of 7.25%. Trader stayed within maximum drawdown of 21% for the whole time of the publication of signals - 1 year and 9 months.
Overview of RAMM-accounts broker Roboforex
A RAMM service is a type of copying signals with the condition of mandatory blocking of funds allocated by a trader for his chosen strategy. Advantages of this management: money remains on a personal account, where you can combine several signals from different managers, quickly change the investment share.
The manager also gets an advantage: unlike subscriptions where payments are fixed, the RAMM service charges interest on the amount of blocked amounts.
In the first five of the rating from the broker Roboforex it is worth highlighting the manager AKTIV_SETshowing 125% return for six months of the existence of the account. Maximum drawdown for all trading time 11,87%, funds management results for the current quarter amounted to + 27.2%.
Given the short duration of trading, this is a new RAMM that has not been previously considered in our reviews, like the next participant - STABLE TRADE. Next month his account will be executed exactly one year. This date the trader approached with a result of + 137% on profit and 12% of maximum drawdown. The current quarter is closed with a result of + 4.58%.
Fans of conservative strategies may be interested in the portfolio Easy Flow X1.7, showed 63% yield for 8 months of trading. Maximum drawdown at the same time amounted 8,4%, last quarter closed at plus 40.45%.
Summarizes the Review RAMM Account Gorelov85celebrating this month year since the start of trading, which brought investors 67% profitability at maximum drawdown of 6.85%. Current quarter closed with result +38,45%.
The best PAMM accounts of broker AMarkets
The AMarkets broker is a member of The Financial Commission, which is going to license PAMM services. Perhaps soon investors will receive exclusive access to PAMM accounts certified according to international rules.
The company is very attentive to its own trust management platform, has an adaptive rating system, which can be trusted 100%.
AMarkets broker takes first place in portfolio Easy Money1, almost worked year with investor funds increasing them on 46,68% with a maximum drawdown of 36.12%. Unfortunately, last quarter was closed at minus 32.99%.
According to the users of our forum, the first place in the AMarkets PAMM service belongs to the night scalping strategy Turboscalper, in the “Bearded PAMMs” section. Behind 4 years trader master_ice brought investors an income of 204.5% with maximum a drawdown of 22.7%. The current quarter is closed by the manager at 4.09%.
Leader in profitability combined with a low percentage of drawdown belongs to the strategy manager inferno earned investors over 2 years 1472.87%. The percentage of maximum losses was 15.5%. The portfolio was described in a previous review, over the past three months there have been positive changes by + 7.1%
Promising strategy Sakura summarizes the review of AMarkets account managers. Despite only six months of work, the trader showed 91.88% yield with a maximum drawdown of 6.86%. The last quarter was “shock” and brought investors 45.06%.
Uncensored: candid interview with managing director Daniil Yudin
Hello, tell us briefly about yourself..
Tell us about your accounts, how and where are they presented at brokers and on the TradeLikeaPro forum?
Currently, my accounts are presented in Alpari and Forex4you, as well as on the MQL5 service. I used to collaborate with other sites such as Alfa Forex, InstaForex, RoboForex, Tikmill, etc. I don’t remember everyone.
My PAMM accounts in Alpari:
· Sunrise Rub - discussed in the thread on the TradeLikeaPro forum in the “Bearded PAMMs” section;
· Banker USD - discussed in the same section of the TradeLikeaPro forum, in a separate thread;
· Lift USD - You can also follow the results and ask questions about the strategy on the TradeLikeaPro forum in this thread;
· Moon USD - PAMM-account is still too young, while there is no thread on the forum.
· Safety No Martin - also presented TradeLikeaPro forum has a separate topic.
· Sunrise rur.
You have created and conduct your own investment portal on the Internet, say a few words about the purpose of creation and plans for the development of this resource.
I created the site FxInvestor.ru in order to collect information about my accounts, to present all my systems on one page, to see real-time monitoring, to ask questions. This is very convenient when all the available information in one place. In the future, I plan to talk about the various strategies that I test, about the foreign exchange market, investing in general, which is why the site is called Forex Investments.
If you have ideas for articles, I am always ready to discuss. In general, it would be nice to write something for the website Tlap.com, if it would be interesting to someone.
Tell us about the reasons that brought you to the Forex market, how did you get an interest in currency speculation?
I learned about Forex when I was in 11th grade. It was an ad for a broker offering free tuition. At that time, I had a strong desire to start earning money on my own without interruption from my studies (I was already a student of law college, was going to go to university). And of course, I attended this free exchange rate for currency traders.
At that time, almost no one knew about Forex; one could learn about the foreign exchange market only from books. Perhaps, due to lack of information, Forex was perceived as an opportunity not only to earn money, but also to become very rich in a short time. Especially during the training course (5 days) I was told about George Soros, who had fallen off the British market, and about other successful traders. The very idea of making a profit on the difference in quotes is mesmerizing and foggy.
After training, I went to a few more seminars, started trading on a demo. Despite the fact that Internet access was very expensive, I ordered several books via the Internet. At this stage, I already planned in the near future to become the owner of my own apartment, which, of course, will earn in the foreign exchange market.
But in order to start real trading, a deposit of $ 1,000 was required, which I did not have. Then I agreed with my friend that we would trade with his computer. I borrowed my first 500 dollars (15 thousand rubles) from my father, the rest $ 500 - my friend invested. So we started a joint currency trading.
I must say that it was a bad idea, on Forex only one person is responsible for all transactions. Therefore, you never need to trade with someone else - it will not lead to anything good. And so it happened with us, we spent all the money within a week. We did not have a strategy, there was no understanding of what money management is, and even more so, we did not know how to cover the resulting losses.
My friend called my Nokia from my home phone when I was studying and offered to open a transaction on EURUSD, and I, without a terminal or Internet access at hand, had to decide whether to trade or not. It was funny time! And this was my first experience in Forex trading, which is supposed to be unsuccessful.
After that, I did not give up attempts of independent trading, but all my efforts were unsuccessful. At the same time, trading on a demo account showed good results. I could not understand what was the matter, and gradually merged deposit after deposit. And one fine moment I decided that I need to stop. I stopped trading, closed all accounts and started living a normal life without trading.
Several years passed, I finished studying, started working by profession and no longer remembered Forex. But at the same time I was always looking for earning opportunities on the Internet. I wrote reviews on products in various online stores, talked about hotels that I was not in, was engaged in copyright and rewriting. But all this was not interesting to me. Fate itself prompted me to return to Forex. But I did not want to return to trading, I did not want to re-experience the stress associated with losing money.
What caused the return to the forex market?
However, when the next period of the rapid fall of the ruble in relation to all currencies came, I decided: “why don’t I play on the sale of the ruble in the long term?” I reopened an account with one of the brokers and began to actively sell the ruble and oil. So I went back to Forex.
From the first days, I began to study more seriously the principles of trading, money management, the psychology of trading, the fundamental factors affecting the market, gradually developing my own trading rules. A more balanced approach to the market allowed me to stay afloat and not lose investment. Now I understand the benefits of a break in trading, otherwise I would not be able to trade in recent years.
The main conclusion that I made from this whole story is that it is impossible to start trading in plus in one day or even a month on an ongoing basis. When you start trading, it is very difficult to stop, you always want to recoup after the next unsuccessful transaction, but this never leads to positive results.
Trading in the foreign exchange market will begin to bear fruit only when the money in the account turns into interest, and the desire to open a deal will cease to be an obsession.
Why is a PAMM manager? What pushed or set you on this path?
I became the manager quite by accident when I saw how my colleague was looking for PAMM accounts for investments in his phone. Of course, I knew what PAMMs were, but I was not confident in my abilities. Around the same time, I met with the TradeLikeaPro website, which received a huge layer of new information.
Paul’s site was different from everything I’ve seen before. There were no paid training courses, promotional articles, or other unnecessary information. The site seemed to me a squeeze of all the useful content that I was trying to find on the Internet. This is truly a treasure amid all the trash posted on the web.
Here I found for myself several ready-made strategies that I began to use in my trading. After that, I opened my first PAMM account. It seemed to me that someone would be interested in my trading, so I decided to create PAMM first, then the signals in Share4you, and later connected my accounts to the MQL5 service.
Forex work or hobby for you? How long does it take?
Forex is a hobby for me that brings pleasure. In connection with the use of advisers, I need very little time for their adjustment and control (up to an hour a day). But at the same time, I am constantly in search of new trading systems. On my servers, 15-20 new strategies are constantly being tested, I read various forums, sites on the Forex theme.
I’m interested in everything new that is happening in this area, for example, I became interested in cryptocurrencies and even tried to buy Bitcoin, but the result was not very successful. You need to understand one simple thought for yourself: sooner or later, each strategy will cease to be profitable, therefore you should always be ready to offer a new trading idea. Only in this case, the market will allow you to earn income on an ongoing basis.
Worst and best manager day?
The worst day is the day when one of my advisers broke down and began to constantly open deals against price movements. It was a software crash. While I figured out what was going on, there was already a loss of 30% in the account and several dozen transactions in the red.
At that time, I already had investors, and it was difficult to explain to them that the matter was in the adviser, and not in me. It is psychologically very difficult to trade with investments, so I try to conduct the most balanced trading on PAMM accounts. But this time I had to close my account at a loss.
The best day is to return the debt to your father from stable earnings on PAMM accounts. As I said, for the first deposit I had to borrow from my father. I set a goal for myself not just to return this money from my salary, but to receive income from Forex.
At first, I did not manage to earn decent amounts, the profit was quite modest. But it was PAMM-account management that allowed me to reach a new level. For several months I managed to get the necessary amount, and I repaid the debt to my father. At that moment, I felt like the happiest person in the world. I managed to prove to myself that the foreign exchange market is a serious business, not a game of chance.
What significant event or book, strategy, other trader did you remember during your trading?
The TradeLikeaPro website was a real discovery for me, thanks to it I started looking at the Forex market without pink glasses. I just regret that I did not find this site before, perhaps I would have made fewer mistakes and lost less time. But the fact remains - the site of Paul really changed my life.
There were also several traders that I met online. They told me that Forex can bring really big money. For example, one of them threw me a screenshot of the withdrawal of funds from Alpari, and also shared the monitoring of the account. A person earns tens of thousands of dollars a month. It motivates!
What advice would you like to share with your readers?
Try to describe your experience in trading, analyze your mistakes as thoroughly as possible so as not to step on the same rake in the future. Moreover, when you express your thoughts on paper (or in a computer), it becomes psychologically easier to overcome your fears and move on. At least it helps me.
I still describe in detail my unsuccessful transactions in the most colorful form, splashing out emotions in this way, but each has its own way, of course.
I would also advise you not to lock up, try to discuss your deals, problems or, conversely, good luck with like-minded people, with friends, not to brag or complain, but to express your thoughts constructively. This helps not to get depressed in the event of a series of failed trades.
And, perhaps, one more thought - never take Forex as an easy way to "raise dough." Even if you manage to earn something, then with such an attitude you will definitely lose everything in the near future. I treat the Forex market as a business, invest my own funds in trading systems and rejoice when they make a profit of 5-10% per month.
I do not know a single trader who would constantly receive income in the amount of 100-200% per month, this simply does not happen. Although I understand that dispersing a deposit is a very accessible and popular idea. Try to achieve stability in trade, and the money will come over time themselves.
You use four beautifully working profitable trading systems - this is a rare occurrence, usually traders “keep” new developments “in reserve”. How stable are they, i.e. how often are strategies optimized?
Every strategy that I use goes through a lengthy verification process. First, testing, then trading on a demo account, on real life, and only then the TS gets into the PAMM. I do not optimize the strategy until the moment when I understand that it is starting to merge.
This is usually seen in history: it is enough to compare previous periods and conclude that the vehicle is broken. In addition, no one bothers me optimizing the TS on other non-public accounts and choosing more favorable settings for myself. But even in this case, I check new sets on real accounts for several weeks.
You did not think to collect strategies on one account, creating a kind of "quantitative trading"?
When I created the first PAMM account, I used only one strategy. Gradually appeared new TS, which I added to an existing account. But over time, investors began to blame me for the fact that trade is different from what it was before.
Most investors choose a system that existed before and do not want any changes. Why break something that already works?
Therefore, I decided in case of the appearance of a new successful TS to create a separate account for trading. And so it happened with the new Moon USD PAMM account, which uses several advisers that do not trade on other accounts.
Why, in your opinion, do you need two separate strategies for long and short, as implemented in the Banker trading system?
The Banker system includes two advisers that trade on several currency pairs with completely different working conditions. It doesn’t matter which way the price goes, Banker finds the moment to enter the market. I do not use systems that trade only in long or short, I believe that this limits the possibilities of the strategy.
Why does the Safety strategy work with the Forex4you broker and the other three are traded at Alpari?
This is a diversification of risks, including non-trading ones. Each broker has its own conditions, and the execution of orders is also different, so transactions in Alpari are different from transactions in Forex4you, although they are trading the same advisers. Both brokers are reliable enough and have been tested for years, so I still work with them.
Signing up for signals or “direct” investment through the PAMM service - which is better, in your opinion?
Each service has its advantages. For example, in PAMM accounts you can invest from $ 50, you do not need to understand the settings for copying transactions here. PAMMs are designed for investment in the long term.
Copying signals is a more modern system, since it is possible to see deals in real time, restrict trading by various pairs, regulate trading volumes, etc. Therefore, in this regard, I like the signal subscription services more. Currently, 28 subscribers follow my signals in Forex4you, and only 12 on the MQL5 service. At the same time, the total number of investors in Alpari is 285 people. Every investor and subscriber is very important to me, so I try to listen to their opinion and answer questions.
How to learn to trade in the Forex market - your advice to a beginner?
First you need to lower expectations from Forex. If we accept for ourselves that the foreign exchange market will not bring a lot of money, then perhaps the desire will disappear by itself. And after this awareness, you need to start gradually gaining experience in trading on cent accounts. However, it is not necessary to follow any specific strategy, it is enough to start “feeling” the market. Later, over time, their own developments and rules of trade will appear.
The main thing in this period is to comply with money management and not to trade large lots with minimal amounts. The most common mistake is the desire to get rich without having your own vehicle and the necessary funds. Believe me, if you learn how to get 5-10% per month on a cent account, then you can successfully trade on large accounts. But for this you need to develop practice for a long time, check the market in different trading sessions, and make mistakes. And then you will see, after some time you yourself will understand that this vehicle suits you. And then - a matter of practice, patience and personal motivation.
What is the best way to deal with emotions?
Emotions are our main enemy in trading! Frankly, I still have not overcome the feelings of anxiety or euphoria. As a child, I rejoice when there are a series of positive transactions in the account, and I am almost depressed if I see a big loss. But it’s easier for me, because I know that the Forex market every day provides opportunities to make money. If today is not lucky, tomorrow will be a new day and new signals for trading.
Personally, full load during the week helps me cope with emotions. I am busy at work, come home, where two children and a wife are waiting for me, and when I go to bed, I disconnect in a couple of minutes. Sports, music, books also help a lot - everything that distracts you from the foreign exchange market.
Ideally, it should be like this: they opened a terminal, did everything that is necessary, closed it, and then no longer think about trading. But in practice, unfortunately, this is not always the case. For example, before bedtime, I always check all my terminals (I have about 20 of them), and when I wake up, the first thing I go into is the MT4 application on the phone. Perhaps this is a deformation, but on social networks I spend less time than in the terminal.
What do you need to change or add to the PAMM service to brokers?
Alpari's PAMM service is lacking in an automatic transaction corrector. For example, if there is a drawdown on the account, and a large investor enters at this time, then the profitability of the account can greatly sink. To eliminate this situation, it is necessary to increase or decrease the volume (lot) of current transactions - this is what the automatic corrector should do. But, unfortunately, in Alpari, such a service was deleted and still has not returned.
An ideal moment for investing in PAMM from your point of view?
There are no perfect moments to invest. Unfortunately, any advice may come across a misunderstanding. But I always advise investing in the drawdown, and it is advisable that the drawdown be no more than the maximum for the entire period of existence of the account or at least for the last year. It is necessary to evaluate any score in terms of cyclicality. If now there is a drawdown, and in previous periods there have already been similar losses, from which the account successfully exited, then we can assume that this time PAMM will also make a profit. The main thing in this case is to develop strict investment rules for yourself and follow them without violation. And you also need to try to trust the manager and not try to trade for him, looking for successful deals on the chart of the currency pair.
Bottom line: I would like to express my gratitude to the entire team of the site for the work done, and especially to Pavel, as the founder of this service. If not for you, then many traders would have already lost their deposits and become disillusioned with the foreign exchange market. Unfortunately, there is too little worth of information on the Internet that would really help ordinary guys like me make a profit on Forex. I wish the site prosperity and further development.
As usual, this section contains interesting news on digital currencies, outstanding events that occurred in the previous quarter, interesting observations and recommendations.
The topic of cryptocurrencies is again at the peak of the popularity of Google trends and goes to the front pages of the media thanks to a six-month rally with constantly growing amplitudes of daily fluctuations. According to analysts, the “cryptozyme”, which was worth the loss of 80% of the capitalization of digital assets, ended and the “cryptoleto” arrived.
Bitcoin is the “winner of everything”!
Over the past quarter, Bitcoin has tripled its value, bypassing the leading foreign exchange market assets, stock indices and gold in terms of investment profitability. Cryptocurrency grew, violating the principles of correlation, technical and fundamental analysis, taking off on positive and negative news.
As a result, investors started talking about Bitcoin as a “safe haven” for capital, the Chinese edition of Xinhua agreed with this point of view, and Chinese leader Xi Jinping devoted part of the report to the G20 summit to digital currencies. Experts consider this a sign of a global shift in the perception of cryptocurrencies, given the fact that China is a consistent critic of any virtual money.
Chinese authorities are forced to capitulate, recognizing the futility of confronting digital currencies amid the release of Libra, the digital currency of Facebook. Mark Zuckerberg promised to issue a coin in a year, the blockchain and issue of which will be controlled by the 100 largest companies that invested $ 100 million each in the development of the network. The project has already been supported by Visa, Mastercard and another 26 companies, which will provide the token with free exchange and circulation around the world.
Stablecoin Libra from Facebook
Each person with a Facebook account, Instagram or WhatsApp application will be able to transfer, receive and exchange Libra in one click, regardless of geographic location.Those who do not use the listed social networks will be offered a Calibra wallet that can be installed on any gadget or computer that works with all known browsers as a plug-in.
Libra is tightly tied to a basket of currencies, bonds and other financial instruments, its composition is selected by the best economists at Stanford. Facebook is striving not only to release another stablecoin, a hired team of 100 people is working on a new economy model.
The project was criticized by the central banks of leading countries, and they are already developing special laws governing stablecoins, Mark Zuckerberg’s plans frightened all world regulators except the People’s Bank of China and the Fed.
Jerome Powell does not see any threat to the US financial system from the cryptocurrency market, but they are interested in the idea of Facebook in the US Congress. The deputies sent Mark Zuckerberg an official letter asking them to freeze the development of the blockchain before the Senate hearings.
Libra has plans to serve the consumer and corporate sectors, including lending and interbank, which will lead to the ruin or collapse of the traditional banking system. In addition, there is almost a 100% chance that Facebook cryptocurrency will squeeze out the national currencies of developing countries.
How has the attitude of Regulators towards cryptocurrencies changed in 2019?
In the second quarter of 2019, the U.S. Futures Market Commission (CFTC) unexpectedly allowed a new type of derivatives - deliverable Bitcoin futures. Until that moment, only BTC settlement contracts on the CME and CBOE exchanges were traded under the CFTC license - the latter refused to sell them. The reasons for this decision are not clear, the Chicago Stock Exchange is recording a rapid increase in trading volume, which reached 1.7 billion in one trading session a week before Independence Day.
At the end of the year, ErisX and LedgerX platforms will offer investors the opportunity to buy futures and receive real Bitcoin on them at the time of expiration legally. EU citizens also got the opportunity to invest legally in cryptocurrency, the UK regulator FCA allowed the operation of crypto hedge funds under AIFMID license, legal throughout the EU.
France went the furthest, granting the right to crypto start-ups to voluntarily register with AMF, and also promising to create a fund to allocate state investments to blockchain projects. In particular, the manufacturer of "cold wallets" Ledger will soon receive funding from the budget.
The only thing the authorities of the countries can’t put up with is the anonymity of cryptocurrencies: the latest FATF initiatives are aimed at applying anti-money laundering and terrorist financing standards to crypto transactions.
Exchanges and wallets will be required to verify customers by attaching their personal data to sent transfers, first domestically and then abroad. The G-20 Summit supported the department’s international initiative, and the crypto industry representatives decided to fight it by creating their own VASP organization. She gathers in one place with the G20, each time inviting financial officials who have arrived at the meeting of the G20 to persuade them to cancel strict verification measures.
The Bundesbank was thinking about the official issue of the euro in digital format, which will replace part of the issue of fiat money. To achieve the popularity of the solution and the wide distribution of the coin, the Central Bank will use the Ethereum public blockchain, allowing it to anonymously own the stablecoin of the euro, using existing crypto-wallets and a specially released application by the bank.
The European Central Bank can support this idea, after the departure of Mario Draghi, Kristin Lagarde will become the head of the organization, which previously called on financial institutions to acquire their own cryptocurrency while being the head of the IMF.
Cryptocurrency Market Recommendations
Pay attention to Bitcoin: cryptocurrency has 98% of trading days closed in plus for a ten-year period. A trader can use a strategy of positive martingale or a pyramid using a trailing stop set at the end of the day, as well as tactics for holding a losing position for a limited time.
The main problem of the market is a high drawdown (up to 80% of the deposit), therefore, fixing losses is required, but the simple use of Fibonacci levels built from zero to the maximum of the market will provide reliable points for predicting the end of correction and reversal, as well as possible rebounds at which you can close part of losses with minimal losses.
Ethereum is again in demand, - cryptocurrency during the “cryptozyme” fell sharply in price amid the emergence of many competing projects, but none of them could offer real decentralization. The only problem of the brainchild of Vitalik Buterin is the speed of transactions and the processing of smart contracts, but it will be solved as early as next year, when the ETH blockchain is converted to version 2.0, becoming multi-dimensional and available for investment mining - Proof of Stake.
It has already received a separate name, “stacking,” which indicates the growing popularity of the algorithm, the essence of which is to extract cryptocurrency using “proof of ownership”. If the miners of Bitcoin and similar digital currencies are forced to increase computing power to receive coins, then in the PoS algorithm it is enough to freeze a certain amount in a special wallet to receive income.
Stacking is an opportunity for passive earnings in cryptocurrency, the popularity of the topic can lead to an increase in the rate of altcoins with attractive conditions of the PoS algorithm and a reliable blockchain. We advise you to pay attention to the coins:
Kimchi premium and african spread
The kimchi premium has returned to the cryptocurrency markets - the difference in the cost of Bitcoin on the exchanges of South Korea compared to the rest of the world ranges from $ 400 to $ 1000. The country accounts for 8% of the global cryptocurrency market turnover, but the sites are isolated due to draconian rules of local regulators, which require an official account at a local bank to participate in crypto trading.
An interesting fact: in 2017 and 2018, the appearance and disappearance of the kimchi premium predicted the rise and collapse of the cryptocurrency market in advance, you should monitor this indicator to determine the beginning of the cryptozyme.
The biggest difference with the rest of the world in Bitcoin is in Zimbabwe, where cryptocurrency trading is officially prohibited. Speculators are ready to sell BTC for real cash at a fantastic rate of $ 50 thousand. There is only one exchange left in the country working through the EcoCash mobile application, despite the Central Bank's cryptotub.
The digest of the III quarter consists of a large number of new accounts, this is due to the fact that many "veterans" reduced their effectiveness. Observation statistics show the similarity of this drawdown phenomenon in many portfolios of PAMM centenarians.
Given the pre-crisis state of the economy, the “trading mode” has changed in the Forex market: frequency of trends, volatility, activity shifts. Perhaps investors should think about a wider diversification of investments, paying attention to newcomers (accounts from three to five years).
You should also pay attention to the upcoming changes in the cryptocurrency market: in a year, with the advent of Facebook's Libra, huge capital flows will begin to change their direction, rushing into a new stability tool. This will create liquidity gaps in traditional instruments, which, in turn, will affect the Forex market.
How far managers can adjust to the global shift is unknown, the PAMM-account service is so young that it actually has no portfolios that have gone from the pre-crisis period of 2006-2008 to the post-crisis period.