Investor digest for the II quarter of 2019
Hello, colleagues Forex traders and investors!
In early spring, we traditionally summarize the quarterly results of trust management on brokers' PAMM accounts: Alpari, Amarkets, Forex4You, Instaforex, Roboforex. The material will highlight the most popular investment projects by the level of injections, the most profitable strategies of managers and the most interesting management results for February / March this year.
According to tradition, a successful PAMM-trader in an published interview will reveal the features of the strategy, share plans and tell a little about the “labor path” in the Forex market.
A separate block contains material on the newly gaining popularity and capitalization of cryptocurrencies, which reflects the latest ICO trends, changes in the rating of digital assets, news and trends on which you can earn. The results and prospects of the cryptocurrency market for the next quarter are summarized at the end of the section.
What are PAMM accounts?
PAMM accounts are an opportunity for any trader to shift the burdens of trading onto the shoulders of managers, the trading results of which can be analyzed based on the data presented by the broker:
- Risk management (leverage used and the level of drawdown).
The stability level of the manager’s trading system can be determined using a graphical analysis of the equity curve, combining its sections and historical changes in quotes. This will allow us to understand how scalable earnings are in the future, to determine the most optimal points for investing in a strategy.
Concluding the introduction to the new review, I would like to draw the attention of readers that many portfolios of PAMM-managers use algorithmic trading using the Advisers considered on the pages of the site.
The leaders of the rating do not always turn out to be the inventors of some unique approaches in trading. Most often used trading during the night flat, martingale, repeatedly described combinations of moving averages with oscillators in various combinations, indicator filters. This indicates that such a result is available to anyone who can find the strength not to exceed risks and not give in to emotions.
What has changed over the past quarter in the cryptocurrency market?
As we expected in the previous review, the cryptocurrency market managed to recover in the first three months of 2019. It should be noted separately that the capitalization rate is “untied” from the trends of gold and the dollar. Bitcoin and altcoins have gained resistance to negativity, the value of digital assets has been rising despite the fall of the stock market and major currencies.
Apparently, this provided cryptocurrencies with an influx of funds in the second half of February, which accounted for strong downtrends of stock indices, gold and the growth of the dollar - investors were thus trying to diversify risks.
At the time of writing the digest, capitalization reached new highs and was able to set historical records for trading volumes, which indicates the possible arrival of a strong institutional player on the market. Traders who want to join the growth should wait for the “spring correction” or look for “firing” projects, which will be discussed below.
Top 10 cryptocurrencies rating according to CoinmarketCap
Over the past quarter of 2019, in the list of cryptocurrencies compiled by the CoinmarketCap website based on the capitalization of digital assets, the Ethereum and EOS altcoins returned to second and fourth places. This is due to the growing popularity of blockchains with smart contracts in anticipation of the “second wind of ICO”.
Despite a 58-fold decrease in crowdsales in the first quarter of 2019 compared to the winter of 2018, smart-contract platforms will again be in demand due to the soon transition of stocks, bonds, goods and other traditional exchange instruments, except for Forex currencies, to digital format tokens.
The American Regulator is already issuing permission to conduct STO - the placement of digital receipts, the so-called security tokens, which provide for the delivery in the future of tokens (after the release of the finished product by the startup) or company shares.
A number of banks issue and redeem bonds on the blockchain, offshore states sell tokens on the stock exchanges, a similar solution is tested in the sandbox by Thailand, the Philippines, and Hong Kong. The Australian stock exchange is preparing a platform that can replace the issue of futures with tokens on the blockchain; the Jamaican stock exchange trades Bitcoin and Ethereum along with shares of local companies.
Litecoin coin moved to fifth place from the 7th. Traders remembered digital silver after the promise of developer Charlie Lee to master anonymous transactions and instant payments. The Beam cryptocurrency team will help to realize these plans, its work is based on the Mimblewimble protocol (named after the spell from books about Harry Potter). Technically, it can be implemented in Litecoin, which will hide information on the recipient and sender of the transaction on the blockchain.
Bitcoin SV fork could not resist the top 10, whose miners recently extracted the largest blockchain block in history - 128 MB, and Tron, despite the launch of the analogue of Snapchat based on the BitTorrent torrent client acquired last year. They were replaced by Cardano and the internal token of the largest cryptocurrency exchange Binance Coin (BNB).
IEO Services - New ICO Format
Binance Coin in the first three months of 2019 increased by 4 times, the trend started at the end of December, after the announcement of the site to restart the Initial Exchange Offerings (IEO) service. On a specially open platform, Binance Launchpad, the exchange carries out the initial placement of specially selected projects, selling their tokens for its own cryptocurrency BNB.
At the first ICO, BitTorrent Token (BTT) was offered, the placement of which caused an unprecedented stir for the reasons:
- Promises to distribute cryptocurrency in the future to 100 million users of the torrent client by airdrop;
- Opportunities to profitably sell BTT at its first exchange trading, - Binance pledged to hold them immediately after the ICO.
The first crowdsales allowed speculators guaranteed to earn 300-600%. Tokens for sale “flew” in a few minutes. The hype surrounding IEO led to the formation of a constantly growing trend in Binance Coin.
The success of the IEO service is now wanted to be shared by other cryptocurrency exchanges: information about plans or a finished product of their own has a positive effect on the trend of branded tokens on Huobi, KuCoin, OKEx, Bibox platforms.
Investments in cryptocurrency exchanges will become mainstream for investors in the next quarter, so we advise you to pay attention to them in the short and medium term speculative perspective.
New era of stablecoins theme - SWIFT replacement
At the end of 2018, the cryptocurrency market began booming stablecoins - this topic was present in our digests in the form of a proposal to pay attention to the possibility of arbitration. The exchange rate of stablecoins traded on various exchanges was different from unity, which made it possible to buy these tokens at a discount, presenting them to the issuer, which undertook to adhere to the cost of exchanging coins 1 to 1 with the US dollar.
If earlier startups were engaged in the issue of such cryptanalogs of the dollar or other national currencies, then in the next quarter banks will take over this process. Obviously, the IBM blockchain - Blockchain World Wire, which will allow using bank stablecoins to make international payments with a much lower commission and speed than SWIFT, will act as a common platform for them.
The system is already working in test mode in 76 countries, 6 banks announced their desire to issue their own token. The platform runs on the Stellar protocol, which may favorably affect the cryptocurrency rate, which has not yet responded to this news.
Tokens Facebook, VKontakte, Telegram
The use of cryptocurrency analogues has proven attractive not only for banks, but also for social networks. According to an insider, Facebook is busy developing its own stablecoin, a similar idea is being considered, but so far only at the “working level” in Vkontakte. Pavel Durov, who will introduce the TON blockchain platform by the end of autumn, also does not exclude the use of dollar crypto-analogs in its payment system along with the project token.
Tron's Justin Sun revealed that he can implement global projects by promoting the BitTorrent network. The team is actively recruiting smart contract developers from Ethereum and EOS, promising funding or assistance with a second ICO. Any transition of significant projects to the Tron blockchain will lead to the growth of TRX, reinforced by the technical exit of the course from a multi-month flat.
The competition is spurring Block.one developers, who have promised to completely transform the EOSIO network by June. The news feed, promoted by the omissions in social networks from messages of Daniel Larimer, who promised the grandiose events that will occur with the EOS blockchain in June, has already caused a steady growth in the cryptocurrency.Other promising cryptocurrencies that can skyrocket in the next quarter include:
- Tokens of large exchanges included in the top 30 of the CoinmarketCap rating, having or implementing IEO platforms;
- NEM cryptocurrency, underestimated due to financial problems that the team was able to solve;
- DASH in case of a successful test of the new version of the client program 0.14.0, which has unique protection against the “51% attack”;
- Tezos, which showed in action a blockchain model without a hard fork.
Best PAMMs of the month
The portfolios of Alpari managers were included in the rating of the best PAMM accounts of the month - the company was the first to create a platform that satisfies the demand for safe investment in Forex. The broker guarantees the safety of funds and the fulfillment by the manager of the offer for the separation of profits. The risks of investing, the choice of strategy and a specific PAMM account remain at the discretion of the investor.
We hope that our review will help you choose the most promising trading systems that showed noteworthy results in the 1st quarter of 2019.
Ets - first hit the site’s digest, the age of the account is 1 year and 3 months. Pay attention to the "classic" growing trend of equity, the almost "textbook" rebound of the March correction.
The total profitability of the account 583.7%, annual + 347.4% with a maximum loss of 21.53%. Investor deposits are decentralized, 7.88 people account for 77.88% of investments, the share of investments among large investors does not exceed 4.75%.
The manager practices algorithmic trading, a similar robot works on another account TSG with a similar trading history but worse profit.
The disadvantages of the strategy include the aggressiveness of money management, the trader uses a leverage of 1 to 50, sometimes extremely overestimating the risks to 1 to 150. The manager explains that such entries belong to the pyramid of transactions based on the trend, in which the first positions are protected by a stop loss that has been transferred to breakeven .
The use of martingale strategies was not detected.
Moriarti - The account, known to regular readers of the digest since 2015, continues to please with a stable result.
The strategy of trading along the lines of resistance and support brought investors 78,814% of profit for 4 years and 3 months, annual yield + 226.8%, maximum drawdown 73.51%. The manager was entrusted with more than $ 1 million of funds by 2,500 investors, in February-March alone, Moriarti received more than 800 new investments.
This PAMM-manager is the only one who annually gets the first places in the Alpari rating. In February, he took first place, for which he received the right to be the best score of the month.
The last portfolio to fall in the ranking of the best accounts in February is PAMM Mik777 with a total return of 1439.2%, annual result + 140.2% with a drawdown of 36.64%.
The manager’s style is aggressive trading, on the equity drawdown chart they look frightening, but they have a short-term nature and an understandable reason. Note the change in shoulder size in the image below:
Over and over again, the trader greatly overestimates the shoulder (risks) that turn into a drawdown on the account. The only plus of such leverage growth is a signal for investors about an imminent drawdown as the best time to enter.
In February, the account received 530 unique investments at once, the manager holds $ 4,000 of his own funds in the account and promises to increase the profit of the strategy in the future.
Rating of PAMM-manager strategies of Alpari broker
In this section, Alpari PAMM accounts are divided into three main categories - popular managers with maximum investment; strategies worthy of attention, according to the TradeLikeaPro forum; top five PAMMs according to the broker.
Over the 20 years of operation, the company has developed its own five-star rating formula, weighted by seven components. Observing the change of leaders in the Alpari rating table, it can be assumed that accounts with high income and an open offer receive more weight, i.e. always ready to accept investor funds. We publish this list of 5 top accounts unchanged, below offering our own choice of 10 PAMM managers.
Top 5 PAMM accounts according to Alpari
The first two places in the April ranking of Alpari were taken by the managing director Iterawho was interviewed in the August 2017 digest. Trading on the news brought 532.2% of profit to 586 investors over 4 years and 9 months, annual income made up 107% with a maximum drawdown of 43.67%.
Separate and special attention should be paid to the stability of risk management - the leverage of transactions is constantly within 1 to 25 and lower, and the practice of averaging and Martingale are not applied on the account.
An interesting fact: the trader then and now immediately led 4 accounts and was skeptical about the chances of this particular strategy, which has repeatedly been in the top ranking of Alpari. The manager placed most of his hopes on the news trading algorithm operating under the nickname IteraD. Now the second version of this account has taken the second place in the Alpari rating.
Strategy IteraD_v2 there are 2 and a half years and brought investors 189.2% of the total return, annual profit - 64.9% with a maximum drawdown of 24.63%.
In third place in the rating, according to Alpari, is the account of the GAIN 5O trader, working under the motto “Monthly Profit”. The account was not previously considered in our reviews due to modest results: for two years and 4 months, investors received a return of 145.9%, annual profit was 45% with a maximum drawdown of 15.23%.
The percentage of loss is explained by Martingale - the trader increases the leverage in drawdowns, which indicates the accumulation of a grid of orders. Risk management avoids the gross accumulation of loss, but the “mandatory” large drawdowns at the end and beginning of the year became the hallmark of the PAMM portfolio. Investors who choose a GAIN 5O account should consider this management feature so as not to spoil their New Year holidays.
In fourth place in the Alpari rating is PAMM-manager Aperi oculos RUR, which first appeared in our 2017 digests. A trader conducts fully automatic trading, the algorithm of which has mixed results, and equity seeks to draw a parabola instead of a trend.
What made Alpari give this account 4th place? Probably life expectancy of 4 years and 1 month, as well as small the maximum loss is 12.64%. Because, despite 143% of the total profit, the trader leaked 5.6% over the year, but 185 investors are ready to wait for this long downtrend to end.
An additional disadvantage of choosing such an account for an investor can be the use of Martingale's strategy in the Advisor, only in its partial form: by increasing the leverage, the algorithm subsequently reduces the risk of further drawdown of the account.
In fifth place was the score, first reflected in the November 2016 review. The manager of Auto-Tortoise uses a conservative (according to him) approach, trading EURUSD and gold. In fact, the strategy is aggressive, has maximum drawdown of 46.18%.
Investors are attracted to this account. 540.1% return for 3 years and 7 months, as well as the absence of Martingale, but the robot’s attempts to increase profit, maximizing the risks, periodically end up with big losses, although they are designed to beat them off faster, since oversized orders appear after fixing the stop loss.
The last segment of equity showed that the algorithm did not overestimate the risks in the area of a prolonged fall. In the current situation, an ideal entry point to the PAMM account has developed.
Top 5 most popular Alpari PAMM accounts with investors
Manager Lucky pound raised funds from 1974 investors, who in return received 2573.8% of the profit from the strategy of impulse breakouts for 4 years 11 months. The maximum drawdown of the portfolio was 24.75%, which is very small for such an aggressive British pound trading strategy, given the high volatility of the currency due to the Brexit events. The current annual result was a modest 6.3%. This is a little alarming - a robot with problems rejects a continuous decline in the pound.
Manager Portfolio Lucky pound a regular participant in the ratings of 2017-2019, but at the moment it is better to wait for a decision on the UK exit from the EU, so do not rush to invest. After that, the favorable moment will come, the pound will grow, and as analysis of the account shows, the upward trend brings more profit.
PAMM account Expensivebuyer they entrusted funds to 1,566 investors, who withdrew more than $ 1 million in profit over 9 years and 5 months. Profitability at the moment amounted to minus 10.9% per annum, therefore, the score “flew” out of the ratings, dropping to 99th place.
Maximum drawdown for all the time the manager - 62.56%. Given such statistics, it cannot be said that some extraordinary events occurred, but, apparently, there is a need to optimize the algorithm. Therefore, do not rush to “enter at the lows”, it is better to wait for the equity to return to the growth stage and go to restore the profitability result.
The new face of our reviews PAMM account A0-HEDGE, got into the most popular accounts for reasons:
- Confidence from 1144 investors who received a 2049% return in 3 years and 7 months, current result + 134.8% per annum;
- Risk management indicators: despite the overall maximum drawdown 44.57%, the trader significantly reduced leverage, while increasing the profitability of the account;
Manager popularity Fox among investors, its profitability, expressed in five figures, is explainable - for 1 year and 8 months, investors received 13572.3%. Despite the short management period, 1,118 people entrusted the manager with investments.
In fact, the account is a normal hype in which the manager “caught the wave” with a robot based on the Martingale strategy. This is evidenced by the "murderous" maximum drawdown 79% and the loss of 50% of investors a year ago.
However, despite all the obviousness of the risks, the indicator at 2737.4% per annum attracts many, besides a PAMM account Fox actively PR in social networks.
Top 5 most discussed at the forum TradeLikeaPro PAMM accounts of broker Alpari
PAMM Account Eternity justifies its name, the strategy accumulates a constant profit for 5 years and one month, reaching a total profitability of 1196.5%. The current profit of investors amounted to 25.3% per annum while keeping the maximum drawdown at 58.34% for the entire life of the account.
Account manager Rever27 he talks in detail about his strategy in the corresponding forum thread, and he also gave an interview, which can be found in the review of PAMM accounts for the first quarter of this year.
Another manager’s account Gemmaster scored the largest number of likes and views of visitors to the TradeLikeaPro forum. Using a night scalping strategy, a trader managed to bring investors a five-digit return of + 33010.9% for five years and 8 months. At the moment she is 20.4% per annum with a maximum historical drawdown of 86.51%.
The reasons for the occurrence of this level of loss, the features of the strategy and plans for the future manager - all this can be read in an interview published in the review of PAMM accounts for the I quarter of this year.
Scalper Smply_The_Best is a newcomer to the review, but a fairly well-known personality for visitors to the TradeLikeaPro forum. Despite the intraday strategy of active trading, the Alpari broker classifies this account as a conservative TS. Over the two years of trading history, the manager brought investors 135.9% of the total return with a maximum historical drawdown of 6.58%. Current profit margins - minus 2.1% per annum, which provides an ideal opportunity to enter the “support”, from which equity has grown several times in a row.
PARAPAMM PAMM Account Managed Sbonch - Newcomer to the review due to the small history of trading - a year from the date of opening. During this time, the “trade against the crowd” strategy has brought investors 474% per annum with a drawdown of 53.66%. More details about the trading algorithm and the features of the PARAPAMM strategy can be found on the TradeLikeaPro forum. Also, the trader gave an interview - it is placed at the end of this review.
Overview of investment results of the best PAMM accounts and trading signals of Instaforex broker
Instaforex broker provides an opportunity for customers to scale earnings by connecting a service of trading signals, which are automatically copied to the accounts of traders. PAMM managers can receive funds for management or for subscribing to broadcast signals.
Manager Jaybon - the best trader according to the Instaforex rating version, works in two categories at once - accepts investment and is registered in the Forex Copy service. An interesting fact is that the demand for signals exceeds 200 times the number of people who want to entrust the manager with funds.
A PAMM account exists 1 year and 7 months, it was hardly included in the rating of our site in 2018, the manager uses Martingale robots, trading the main currency pairs, their crosses and gold.
The demand for the strategy is explained by the five-digit value of interest on the return; during the lifetime of the account, investors received 16,207.19% of the total return. The current result is +182% per annum.
Viktor dogTrader - the most popular manager on the TradeLikeaPro forum and the newcomer to our review, which he could not get into due to the removal of PAMM account statistics by Instaforex broker. You can monitor the dynamics of the account by the widget or follow the publications of the forum member viktogTrader, - this is the owner of PAMM.
A trader trades on the news, the overall profitability of the account is not subject to verification, but the annual result is minus 7%. The advantages of the account include low risk (no more than 5% per trade) and the absence of Martingale, grids, averaging, the possibility of feedback, an understandable trading strategy.
Another regular at TradeLikeaPro forum is Divanov, also a newbie to our review and PAMM account manager 70137020called the Trend System. The strategy has been publicly working for a year and three months, for which investors were able to earn + 52.39%. Its effectiveness is simultaneously recorded in myfxbook, this helps to understand why we see the following picture:
According to Divanov, the largest investor left the account, which had a negative impact on the balance of funds, transactions were closed by stop out. Perhaps the best solution to follow this strategy would be to choose a Forex-Copy service.
For the first time in the ranking we publish the manager’s trading system Claster-delta pro, The PAMM portfolio operates automatically, transactions are made based on a cluster analysis of the volumes of the main currency pairs and their crosses, 9 instruments are used in trade.
PAMM's advantages include “quick-closing” drawdowns, the absence of Martingale, and constantly growing profit with the result + 58.79% for six months. A short trading history time is a minus, but the trader “entrusted” the account with an equity of $ 89,948.27.
Forex4You broker social trading platform overview
The Forex4You broker opened the Share4You social trading platform, where instead of transferring funds to PAMM accounts, copying the signals of traders is used.
Manager Rick lucky broadcasts trading signals for a year and a half, which brought investors a total profit of 134%. The current yield was 65.11% per annum with a maximum drawdown of 12.9%.
The Advisor works on the account, trading mainly in gold and a pair of EURUSD. A distinctive feature of the account is the monthly closing in plus.
Manager SWT It also trades and delivers signals for a year and a half, but the strategy is more in demand among Share4You subscribers because of the high profitability: + 589% for the entire time of work. The current profitability is + 220.18% per annum with a maximum drawdown of 84%.
Signal Provider Safety practices medium-term automatic trading, bringing a stable profit during the year and 7 months: + 147% of total profit. The current result is + 66.97% per annum, the maximum drawdown is 21%.
Despite the results achieved, it should be noted that the robot cannot exit the flat: pay attention to the equity curve. Forum TradeLikeaPro branch copy signals Safety leads a Danial forum member.
The only justification for the lack of a trend in the account balance is the situation on the main pairs in the Forex market, which also looks like currency fluctuations in the same wide range.
results Farfor8888 - this is an intraday short-term trading that showed 44% return for 4 months of algorithmic trading with a maximum drawdown of 11%.
The girl trades with short stops on three volatile currency pairs: USDJPY, GBPUSD and USDCAD.
Overview of RAMM-accounts broker Roboforex
Roboforex offers investors a platform other than PAMM-investing, which provides for automatic blocking of a share of funds or a full deposit allocated for the auto-follow-up of the strategy managed by the investor himself. For more details, see What are RAMM Accounts.
“Frozen” funds are credited to the manager, unconditionally repeating his transactions, and are reflected in the statistics, making it possible to evaluate the popularity of the strategy with its help. Broker Roboforex maintains its own rating, where more weight and significance is attached to accounts with high profitability.
At the moment, the manager’s account is in first place MEDVEZHONOK. A trader has not previously appeared in our reviews due to the small trading history - 8 months. During this period, the strategy showed a three-digit profitability + 710.18%, becoming one of the leaders in attracted funds of depositors - $ 41810.
The rating system of Roboforex and investors-followers was not embarrassed by the instability of equity and its "diving" in the negative zones. Following the strategy requires the trader to consider that the maximum risk per trade is up to 80 points, and the maximum series of losing orders is 10.
Manager Golden ratio, trading in a basket of oil and the EURUSD against the hedge of gold, showed yield 82% for 9 months trading with stable growth, except for the site in January, when all assets grew, which completely excluded the possibility of arbitration.
The Christmas rally led to a drawdown of 30% - this is a fixed maximum, but traders should be prepared for 500 points of relative discrepancy in the total positions of oil, gold and currency collected by the trader.
Trader Oldman For the first time I got into the Roboforex RAMM account overview as a participant in the CopyFX broker signaling system. The manager did an excellent job with the “martial execution” robot martingale until manual intervention in the portfolio occurred. As a result, a year and a half of work "went to zero."
After the break, the manager again shows a stable result: total profit was 13% per annum, maximum drawdown after “working on the bugs” 37.95%. Oldman trader is open to questions and communication, as he is a member of the TradeLikeaPro forum.
The most popular manager on the forum TradeLikeaPro under the nickname tatiana This month celebrates the three-year anniversary of the strategy by which you can copy signals in the Roboforex broker service called CopyFX.
Portfolio presented on this platform TVI86 - This is the implementation of the Va-Bank strategy with weekly transactions opened after hours of analysis with an impressive amount of technical tools. You can learn more about transactions from Tatyana herself in the TradeLikeaPro forum thread.
She spent three years with a decent result + 118.43% with a maximum recorded drawdown of 43.87%, the current yield, unfortunately, has gone to minus 40% since the beginning of the year.
Tatiana’s situation is much better TVI86, where trading is conducted using the Trio Dancer Advisor (modified version). The algorithm and logic of the robot are described in detail on our website, specific questions on the operation of the account can always be asked directly to the manager in the TradeLikeaPro forum thread.
The trading system has an almost three-year history of trading, and during this time it brought investors a return of + 151.13%. Current profit is 71% per annum with a maximum drawdown of 66.14%.
PAMM rating of broker AMarkets
This is the second appearance in our digest of PAMM accounts broker AMarkets.
Easy Money1 - The manager, taking first place according to the AMarkets rating with the results: current yield of 88.79% per annum, the maximum drawdown is 36.12%.
Obviously, the internal calculation of the rating is focused on high dynamics of profit for a certain period. An analysis of the equity and risk of the account shows the inept use by the trader of Martingale, it is possible that in combination with manual trading.
Forex finance is more “eye-pleasing” Martingale, as can be seen from the equity chart, the duration of using the strategy and the results: current profit 297.7% per annum, maximum drawdown - 49.18%, total return for 3 years and 3 months 15303.81%.
Inferno - This is a more conservative account than the one considered above: current yield 115.32% per annum, maximum drawdown 15.15% for two and a half years of trading history.
Turboscalper - “night robot” managed by many visitors to the TradeLikeaPro forum master_ice, the results of which are still in the current drawdown of 7.66% per annum, which is within the normal range - the maximum loss received for almost 4 years of trading is 22.7%.
Trader master_ice describes the strategy, provides reports and is ready for communication in the PAMM account branch Turboscalperon our forum.
Honest Interview with PAMM Manager sbonch
Trader sbonch - Manager of the PARAPAMM PAMM Account, opened on the investment platform of the Alpari broker.
Hello, tell us briefly about yourself.
Forum participants and readers of TradeLikeaPro know me as sbonch.
On the forums of other Forex brokers, I publish posts under the same pseudonym, my real name is Sergey. I am 46 years old, I am married and have two children - sons of 12 and 16 years old.
How did you choose the path of the trader, which prompted you to start speculating in currencies?
It's simple, I, like many, wanted to buy an island in the Atlantic Ocean)))
A friend spoke about binary options ... and it started - first options, then investing in PAMMs, then self-trading on Forex, which looks like the path of any trader.
Do you work in markets or exchanges other than Forex?
Not at the moment, only Forex.
How was your trading training process, how much time did it take?
Long and expensive, referring to merged accounts, and not paid courses.
Forex trading training began around September 2013, it is an endless process, new horizons are constantly opening up.
The main source of knowledge, ideas and information for me has been and remains TradeLikeaProbut don’t think it’s flattery! I visit a lot of thematic resources, but I have not met such a “gathering”, in a good sense, of smart and thinking people, like here. The created “working atmosphere” displaces trolling, only those who wish to exchange experiences and gain new knowledge remain.
Is trading “against the crowd” a counter-trending strategy with the help of pending orders “by the glass”?
In my opinion, the trend is a subjective concept, the direction of the market is visible only on the left half of the chart. Everything that happens on the right side of the chart depends only on the behavior of the “crowd”. Remember this joke - “There is nothing easier than to expand the global trend - it is enough to open a minimum position in its direction”?
In general, the strategy can be called counter-trending, although I take into account global sentiment, the economy and geopolitics.
Trading is carried out by pending orders, the glass is mainly used to search for exit and entry points, while the closing level of the transaction is determined earlier than the entry point. Those. first I’m trying to understand what direction the market makers want to “offer the crowd”, and where they “offer” traders to place their stops - this is the place of my take profit.
How many “knees” does the grid of orders have at a loss-making position?
This is an unanswered question since strategy cannot be tested on history.
Regarding exit tactics: as a rule, I quickly determine the choice of the wrong direction of the transaction, so I immediately try to close at breakeven using the first correction and averaging or orders of increased volume. There are no continuous recoilless movements, quotes move in the price channel, from the borders of which orders are placed in anticipation of a correction.
Here is a recent example of working against the trend and closing unprofitable longs on a rollback, which eventually turned into earnings:
In general, I try to avoid such situations, but you cannot be “smarter than the market”, nor can you find a grail strategy that sells 100% without loss.
There are no stop-losses, how then is risk management built?
Risk management is not always the presence of stops; it is built at the entrance with a minimum lot, adequate to increase the position and the distance between orders.
Trading without stops with a neat approach is quite viable, as you can see by looking at the accounts of our forum member Rever27.
Instead of profit, do you use a position reversal?
Not always. I look at the current situation, sometimes I turn over, sometimes I take profits, waiting for further developments.
The picture of the further development of events is not always clear, and the desire to be in the non-stop market is in the past.
Is trading carried out manually or are there any “semi-automatic machines” that perform auxiliary functions?
At the moment - only manually, several scripts are used to speed up.
Previously, I used an accompanying robot, but due to an unscheduled restart of the IPN, the settings flew out of it and he “chopped” the orders so that I just miraculously got out of that situation.
Why Alpari and the career of a PAMM manager?
Alpari - because, in my opinion, this is the best broker.
PAMM manager - in order to trade with low risks and get tangible financial besides moral satisfaction, you need a large deposit, and if you attract the funds of investors, this task becomes more feasible.
The main thing is to observe the risks and reduce them as the deposit grows, because a drawdown of, say, 50% on deposits of $ 300 and $ 100 thousand is perceived differently.
Why do we need a barrage offer, why is it dangerous to receive funds at the wrong time from investors?
The barrage offer allows observing the principle of equality of earnings for investors, corresponding to the overall outcome of the transaction. If you allow to replenish the PAMM-account at any time, the manager and active "investors-scalpers" will benefit more from this.
The inflow of funds at the time of the current loss leads to an imbalance in the shares of investors - investments “at the bottom” bring great returns. A situation arises when short-term investors are in profit with a loss of the main pool of long-term investors.
Scalping investments begin to pour in on the manager during a drawdown, when completely random people earn in a few hours on PAMM using the leverage of other investors.
Accounts in the archive - "pen test"? Aren't you afraid that they will somehow affect the reputation of the manager?
No, these are completely independent “applications for success,” they just made various mistakes that were not taken into account in advance.
This does not take into account the psychology of investors, excessive trust in history tests and much more, conclusions were drawn and hacked on the nose.
I used to be afraid, and this was also a mistake, which led to another failure.
The archive can be treated differently. As an investor, I view archives as follows:
If there is no archive at all, then this is an occasion to think. I’ll give an analogy: the lack of an accident in a driver does not mean that he is a good driver, especially when we don’t know his real driving experience, and we only know the date of issuance of his driver’s license; years of right lay on a shelf.
There are a lot of such examples of draining the first successful accounts, take at least the first PAMM of Drummer.
If in the archive all accounts are merged, like a carbon copy, then either the trader is stupid and continues to step on the same rake, or he is smart and cunning.
If the accounts have different schedules, it means that some work is being done to find errors, and perhaps the next account will be successful.
Future plans - other accounts, new algorithms?
Perhaps the search is ongoing, something on the demo, something on personal real accounts, I will not guess. Grail not found yet.
How to learn to trade Forex?
Studying, studying, studying again and reading TradeLikeaPro every day!
But seriously, I do not know the exact plan of action, the main thing in trading is the brain, perseverance, endurance and steel nerves.
How to invest in PAMM from the point of view of the manager?
Most likely, there is no exact recipe, but I will give a couple of tips.
- Be sure to, in addition to indicators, study the PAMM branch on the forum, read what and how the manager writes.
As a rule, after reading his posts, it becomes clear whether the person is adequate, whether he understands the essence of what is happening, what he has with the psyche, etc. If he’s insane, then run away from him, even if the score is good.
- Examine the archive of accounts, how to interpret it, described a couple of questions above;
- Decide on your own risks and do not expect returns for tomorrow, invest with horizons from six months.
In general, creating a good portfolio is a very difficult task, I have not yet managed to create my own good portfolio.
How to survive a drawdown with a minimum of emotional loss?
Why is there a drawdown, you sit and wait.
It’s much more difficult to sit in profit and wait for your take profit, this is a problem, so a problem!
For myself, I decided it this way: I imagine that the account is in the red, perceiving take profit as a breakeven line. If I leave earlier, there will be a “negative” result. I don’t open the “trade” tab, I look only at the charts.
How do you feel about cryptocurrencies - is it money or assets, such as stocks, goods?
Honestly, there was no desire to study cryptocurrencies, it is not entirely clear what it is. It may be a kind of Forex for the new "digital" generation, but I definitely do not perceive them as money and assets.
In the first three months of 2019, the volatility of Forex trading increased sharply, which negatively affected the accounts using Martingale and the “old leaders” - managers with long experience.
Given the age of the PAMM portfolios included in the review, we can state that the market is entering the phase of 2013-2014, only with a flatter curve of the dollar index strengthening against major currencies.
A change of leaders and a large number of “new faces” in ratings are a signal to managers to reconsider approaches or closely monitor the current profitability of trading systems. The "rhythm of the market" has changed, and perhaps optimization of parameters will soon be required in order to "adapt" to new periods of cycles of changes in currency quotes.