Forex Profit Monster Results - April 2012

April 2012 was a "ranging" month, to be expected after the nice start to the year.  Some small wins, some small losses... all adding up to a small losing month, the first losing month of the year.  The nice thing is that during the month of May several large trends began on a few of the pairs and I'm currently carrying an equity profit of over 1,500 pips which is almost a guarantee of a very profitable May (as long as the trades close out in the next week or so)!

Here are the results for April:

36 total trades
12 wins for 1,172 pips
24 losses for 1,465 pips

Total for April (-293)

33% win rate
Avg win: 97
Avg loss: 61
Avg risk/reward: 1.59 to 1

And the results by currency pair as traded on the 4 Hour chart:

GBP/JPY  2W, 0L  +259
EUR/JPY  2W, 1L  +143
GBP/USD 1W, 3L   +36
EUR/USD 2W, 2L  (-21)
USD/JPY 1W, 3L  (-98)
USD/CHF 2W, 3L (-143)
AUD/USD 1W, 5L (-188)
USD/CAD 1W, 7L (-282)

The yearly results and total so far:

January: +891
February: +206
March: +1,667
April: (-293)

That's a total of +2,471 pips and an average of +617 pips per month.

For more information regarding purchasing Forex Profit Monster (or my day trading system Forex Day Monster), please visit the website at www.forexprofitmonster.com or my eBay page at http://myworld.ebay.com/jimsgr8stuff4less where I list one or two items per week at a discount.

I got a question this month through the blog about the MT4 platform slowing down and freezing while using FPM and FDM.  Unfortunately the MT4 platform is a "memory hog" and this is almost always a RAM issue with the computer being used.  The lower the time frame you are trading the more of an issue this becomes.  The only remedies are:

1.  Use fewer active charts on your platform.  You can always use one chart and "drag" the new currency pair you'd like to see into the chart from the navigator window instead of running several charts at once.

2. Trade a higher time frame that requires less of your computer's memory resources (combined with fewer charts this is even more effective).

3.  Upgrade to higher RAM for your computer.

Thanks for visiting the results blog and best of luck in your trading!

Jim
www.forexprofitmonster.com
http://myworld.ebay.com/jimsgr8stuff4less

Forex Profit Monster Results - December 2011

Here it is... the new equity curve for Forex Profit Monster. As mentioned in previous posts, the software that I use to plot the equity curve has a limitation of the number of data points you can use, and as of a couple of months ago that limit was reached. I decided to recompute the curve on a quarterly plot instead of monthly so that I can continue to post the curve on the results blog using the same software.

The funny thing is, the difference in the equity curve can teach a lesson as far as trading discipline is concerned. Look at the graph above and compare it to the last monthly graph:

Do you see how the drawdowns are more noticeable in the monthly graph than the quarterly graph? While technically the information is exactly the same, it shows that seen over a longer time frame the same results seem less volatile. While many small drawdowns can be seen in the monthly graph (every time there is a losing month there is a drawdown in the graph)... there are hardly any visible in the quarterly graph. The only one of any relevance at all is in Q3 of 2010... and even that is extremely small and lasts for only that quarter. Want to take it to the "next level"? Here's a graph of the yearly results:

See how there are NO drawdowns in the yearly results at all?

So what lesson is to be learned here as a trader? With a viable trading method that has a positive expectancy, you CAN'T allow the results of single trades (or even single weeks or months worth of trades) to cause you to lose your focus. If you become undisciplined because you have a losing streak or enter a drawdown, you may miss out on the profits that will help you to overcome the losses. You must keep focused on the "big picture"... or making money over time. Days, weeks, or even a couple of months of losses in a row don't mean anything over the long haul.

With that covered, here are the results for December:

29 trades total

11 wins: 1,251 pips

18 losses: 1,158 pips

Total pips: +93

37% win rate

Avg win: 113

Avg loss: 64

Avg risk/reward ratio: 1.76 to 1

Here are the results by currency pair on the 4 Hour chart:

AUD/USD 2W, 1L +268

EUR/USD 2W, 1L +239

EUR/JPY 1W, 0L +195

USD/CAD 2W, 1L +137

USD/CHF 1W, 2L +42

USD/JPY 0W, 5L (-118)

GBP/JPY 2W, 3L (-126)

GBP/USD 1W, 5L (-544)

And the totals for 2011:
January (-35)
February (-334)
March +869
April +2,168
May +503
June (-811)
July +225
August +221
September +2,227
October +2,634

November +1,286

December +93

That's a total of 9,046 pips in 2011, and an average per month of +753 pips. For more information about Forex Profit Monster (and my day trading system Forex Day Monster), visit the website at www.forexprofitmonster.com.

To purchase either system (or both) at a discount, visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less where I list one or two items per week at a discount.

Best of luck in your trading!

Jim

www.forexprofitmonster.com

Forex Profit Monster Results - April 2011

It's been almost a year since I've had a "windfall" month like April. It always feels good to reap the rewards of being a patient trend follower... and when the pips come flowing in like they did last month, you can't help but feel good! After all was said and done, I finished April with a profit of +2,168 pips across the 8 currency pairs I trade on the 4 Hour chart. I'm at a new account balance high, a new equity high, and I have a few trades still open that have carried over into May with a current total of about 1,500 pips of profit!

I'll get into the exact details of the month's performance in a little bit, but first the time seems right to address a question I got about 2 weeks ago from a fellow trader. I'll keep this person's name anonymous because I didn't ask to publish his question, but I think it's important to answer it and discuss the subject matter he brings up in an open forum so that others who may have the same mindset can learn.

The question posed was regarding my year end results with Forex Profit Monster over the past few years and the "sub-par" performance of the first two months of 2011:

"With regards to decreasing ROI year after year (2008: 300%, 2009: 60%, 2010: 30%, 2011: ?% do you consider FPM to be slowly losing its edge?"

I don't mean to be rude, but if this seems like a good question then you have a LOT to learn, young Jedi. :-)

The fact that the ROI has decreased each year for the past 3 years is not because the trading system is becoming less effective... it's actually quite the opposite! This system is very robust, and it adapts to the current market conditions. The reason that I experienced a 300% return in 2008 was because of the global "market meltdown" toward the end of that year. FPM helped me to achieve the incredible results in 2008 (not only a 300% return for the year, but more than a 100% profit in the month of October alone) while many other traders and investors were losing 40-50% of their account values (or more... there were a lot of account "KABOOMS" heard toward the end of 2008!). It was the "black swan" event that drove the profits for 2008... those profits were extraordinary and they can't be expected EVERY year. However sooner or later they will happen again (with things the way they are more likely sooner than later), and if you're trading a sound trend following system like FPM you'll be in the same position I was in 2008 when they do.

As far as 2009 and 2010 are concerned, all veteran traders know that after a huge event like we had in 2008 it will always take some time for markets to "settle down" again while volume and volatility move from one extreme to the other... and because of this profits during these times can be squelched. I don't know if that's what you can call a 60% and 30% return, but I guess you can if you're comparing it to 300%. However, any way you look at it even 30% is a great year. Even suggesting that a 30% return on the year is "poor" performance (as the person who asked the question seems to think) shows someone who is far removed from reality!

Here's some "homework" for you if you think a 30% return on the year is poor performance... go to your local bank and ask them how much of a return they're willing to give you on a savings account; or better yet, tell an investment adviser that you think a 60% or 30% ROI on the year is poor performance and tell them you'd like to invest with them... I'd almost guarantee they won't take you on as a customer... in fact they may call security and have you escorted from the building LOL!

If you are a new trader (or even an experienced trader) who thinks the question asked was valid, then you need to adjust your view of the market(s). Trading systems can only deliver what the market allows them to under the current market conditions. If you think you have any control other than to follow your trading plan and accept the returns available then you should probably give up trading because you're going to lose all of your money in the long run. Find someone who is a good trader/money manager, give them your money to trade and let them make you some money... or just donate the money you were going to use in your account to a worthy charity... at least then it will do some good since you're probably going to lose it all anyway! As an added bonus of doing this you can claim the tax write-off!

And here's some more advice for those of you who might feel better selecting a professional to manage your money... invest it in a trend following fund... and do the opposite of human nature and buy in during a drawdown (when the fund is actually temporarily losing money) so that you can maximize your returns when the new trends kick in! If you buy in during the "good times" (like after a 300% ROI year), you may start out in a drawdown or during a long stagnant period while the market consolidates. If you're going to be successful even placing your money with someone else, this is the way you need to learn to think!

Now with that out of the way, here are the results for April:

19 trades

11 wins: +2,876
8 losses: (-708)

Total: +2,168 pips

Win rate: 57%
Avg win: 261 pips
Avg loss: 88 pips
Avg Risk/Reward ratio: 2.96 to 1

Here are the results by currency pair:

USD/JPY 2W, 0L +472
EUR/JPY 1W, 3L +444
AUD/USD 1W, 0L +421
GBP/JPY 2W, 1L +344
EUR/USD 1W, 1L +213
USD/CHF 2W, 0L +203
USD/CAD 1W, 1L +90
GBP/USD 1W, 2L (-19)

And the up to date yearly results so far for 2011:

January (-35)
February (-334)
March +869
April +2,168

That's +2,668 pips total so far for 2011, or an average of +667 pips per month.

I hope your April was as profitable as mine, here's to a successful May!

If you'd like more information about Forex Profit Monster (and my daytrading system Forex Day Monster), visit my website at www.forexprofitmonster.com. You can purchase both systems there on the "Purchase" page.

You can also buy each system individually on my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/ where I list one or two trading systems per week at a discount.

Jim
www.forexprofitmonster.com
http://myworld.ebay.com/jimsgr8stuff4less/

Forex Profit Monster Results - February 2010

It's official... I'm back to a new total equity high as of the close of business for the month of February (as you can see from the graph above)!

Not only was February a profitable month with a total win of 669 pips, but I also carried 4 profitable trades forward into the month of March. These trades had a current equity value of over 1,500 pips total at the beginning of the month, which means the month of March looks like it will be another profitable month for me with Forex Profit Monster.

Here are the FPM results for the month of February:

26 trades
10 wins: 1,959 pips
16 losses: 1,290 pips

669 pips total profit
38% win rate

Avg win: 196 pips
Avg loss: 80 pips
Avg R/R: 2.45 to 1

Here are the details of the 8 pairs I trade on the 4 hour chart in order of performance (best to worst):

GBP/JPY- 2 wins, 0 losses: 326 pips
GBP/USD- 1 win, 1 loss: 312 pips
AUD/USD- 2 wins, 2 losses: 251 pips
USD/CHF- 2 wins, 3 losses: 148 pips
EUR/JPY- 1 win, 2 losses: 140 pips
USD/CAD-1 win, 3 losses: (-25 pips)
USD/JPY- 1 win, 2 losses: (-43 pips)
EUR/USD- 0 wins, 3 losses: (-340 pips)

I usually try to take some time when I post my monthly results to add some insight about my trading system or trading in general. It's important to understand that trading is much more than the trading system itself... and once again I'd like to cover this topic.

Each month when I post my results I inevitably get at least several emails from people also trading the system asking why their results differ from mine. These questions range from having a different number of wins and losses on a pair to a "discrepancy" in the number of pips won or lost. Sometimes the person contacting me has fared worse than I have, sometimes the person has actually fared better than I have... but they still want to know why their results don't match mine. Either way, the answer for the difference(s) is simple... you're trading your account, not me, so of course your results are going to be different than mine!

I know that may sound like a sarcastic thing to say, but there's no other way to put it. There are many reasons why no two traders will have the same results from trade to trade (or even from month to month or year to year) even though they are using the same trading system on the same time frame. Some of these include your broker's price feed, the time your broker closes the candle/day (therefore changing your entry/exit time and price), and a broker's spread and slippage. However the most important difference isn't found because brokers are different, but that each TRADER is different. While FPM is a mechanical system, there can be some discretion involved... especially regarding exits. There are three types of exit methods for the trader to choose from; which one a trader chooses is going to cause results to be different... and not every trader is going to exit at the exact same time even using the same strategy.

For instance, I personally trade FPM as a trend following system. I never use support/resistance as an exit strategy anymore, although I did early on in my development of the system. Now I mainly use the Fast Trend cross as my exit signal, but even then I don't always exit right away on the cross (this doesn't happen on every trade, most times the exit signal is clear and mechanical). However occasionally depending upon the current state of the trend (how established it is) and my analysis of the current price action (by reading candlesticks and monitoring price divergence from the indicators) I may tighten my stop (to avoid larger than necessary losses if I'm incorrect) and stay in the trade for a little bit longer before exiting. I especially do this to try and maximize my wins on an established trend. Sometimes this strategy keeps me in a trend for a longer period of time for more profit... sometimes it causes me to accept a slightly smaller win on a single trade then I would have had by exiting right away at the Fast Trend cross, but overall I find it has a positive effect on my profitability.

This is just one example of why my results may differ from yours. Another question that I'm asked about often that can have an effect on results is whether or not I take re-entry trades as defined in the User Guide. The answer to that once again involves discretion. If I can justify a reason for re-entering a trade I recently exited (again, reading candlesticks and using price divergence) I will enter the trade. If not, I wait for another large Entry Arrow (and for the Slow and Fast Trends to agree) before I enter another trade. I don't take re-entry trades often as many times the white arrows used as part of the signal for a re-entry trade can also signal that a currency pair has entered into a range. One rule I do have regarding re-entry trades is that if the first one I enter ends up in a loss I don't enter a second one (again because the pair could be entering a tight range). My advice to most beginning traders is to avoid re-entry trades until you have enough experience to use some of your own discretion... it's better to miss a move or two than to experience more losses than necessary due to extra whipsaws.

The last important item to cover regarding this topic is this... Forex Profit Monster CAN be traded as a completely mechanical system as explained in the User Guide and still show a profit over time. However, as you become more adept at using FPM and develop or increase your knowledge and experience as a trader you can occasionally add some of your own discretion to an exit strategy to increase your profits in the long run. But it doesn't matter if you're trading the system as a "black and white" mechanical system, or sometimes using a "shade of gray" exit strategy, you must understand that your results are YOUR results. Comparing your results to my results (or anyone else's results) on a pip by pip or even trade by trade basis has no real value. To become a successful trader for the long run you must focus on your own trading plan and become disciplined and consistent so that you may become consistently profitable... that is the real key to long term success in the trading profession!

That's it for February... here are the yearly results for 2010 so far:

January: +823 pips
February: +669 pips

Total for 2010: + 1,492 pips

For more information about Forex Profit Monster (and my day trading system Forex Day Monster), visit www.forexprofitmonster.com.

To purchase either Forex Profit Monster or Forex Day Monster visit my eBay page at:
http://myworld.ebay.com/jimsgr8stuff4less

Best of luck in your trading!

Jim
www.forexprofitmonster.com
http://myworld.ebay.com/jimsgr8stuff4less