Forex Profit Monster Results - May 2011

The month of May was another profitable month for Forex Profit Monster. I finished May with a profit of +503 pips across the 8 pairs I trade on the 4 Hour chart (and I also have over 1,000 pips in profit still open from trades opened in May as of the writing of this post).

May's results brings the pip total for the year to more than 3,000 and the average per month to more than 600. Historically the mean return for this system has been around the 600 pips per month mark, so it's nice to see a return to that amount after the slow start I experienced this year.

Here are the details of the May results:

38 total trades

16 wins: +2,140 pips
22 losses: (-1,637) pips

Total pips: +503

Win rate: 42%

Avg win: 133 pips
Avg loss: 74 pips
Avg risk/reward: 1.79 to 1

Results by currency pair:

GBP/USD 2W, 0L +427
EUR/USD 3W, 1L +268
EUR/JPY 2W, 3L +209
USD/CHF 2W, 2L +174
USD/CAD 3W, 2L +5
USD/JPY 2W, 3L (-29)
AUD/USD 1W, 6L (-192)
GBP/JPY 1W, 5L (-359)

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

January (-35)
February (-334)
March +869
April +2,168
May +503

That's a total of 3,171 pips so far in 2011, and an average per month of 634 pips.

I have received some comments this month from people asking about my usage of the system... to which I will respond, that's why this blog is here! The answer to every question that was asked is contained in this blog. I know there are a lot of posts, but if you want to know more about the system and how I use it reading this blog will answer your questions. I don't mean to come across as rude, but I don't have the time to answer the same questions over and over again... when they've already been answered in the posts contained here.

If you have a question that is not covered (or need more details) I will be happy to answer them... just contact me through the email contact at the website (www.forexprofitmonster.com).

Thanks for stopping by my blog and I hope your May was as profitable as mine!

Jim
www.forexprofitmonster.com

http://myworld.ebay.com/jimsgr8stuff4less/

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 - March 2011

The results are in for March and it was a very profitable month with a total win of 869 pips. As you can see from the graph above, that puts my equity AND account balance at a new high. It was nice to have a large win in March after the past couple of months of small losses. Even though I've learned to deal with the small losses that are a given when trading, it's still nice when those losing periods end!

Some have written to me in the past couple of months to ask why I don't post as many charts as I used to. I guess I've just gotten into the habit of providing the "bread and butter" results information that most are looking for regarding my trading with Forex Profit Monster, but for those who would like to see more current charts, here's one of March's best performer, the USD/CHF:


As you can see from the above chart, not only did I experience a nice profit from an extended downtrend on the 4 Hour chart, but I'm also currently in profit on this pair for April with the start of an uptrend (as of this blog post that profit stands at about +110 pips on this pair).

And the USD/CHF isn't the only pair that I currently have profit in open equity towards April's results... all together I have over 1,700 pips of current open profit across 7 of the 8 pairs I trade! Of course it's much too early to tell, but it looks good as far as April being a profitable month for me with FPM.

Here are the details for March's results:

26 trades total

12 wins: 1,672 pips
14 losses: 803 pips

Total pips: +869

46% win rate
Avg win: 139 pips
Avg loss: 57 pips

Avg Risk/Reward ratio: 2.43 to 1

Here are the results by currency pair:

USD/CHF 2W, 2L +337
EUR/JPY 2W, 0L +228
GBP/JPY 1W, 2L +186
EUR/USD 1W, 2L +128
USD/JPY 1W, 1L +70
GBP/USD 3W, 2L +41
USD/CAD 2W, 2L (-24)
AUD/USD 0W, 3L (-97)

Here are the results so far for 2011:

January (-35)
February (-334)
March +869

That's a total of 500 pips so far for 2011, or an average of 166 pips per month.

I hope your March was as profitable as mine, and here's to an even more profitable April and balance of 2011!

For more information regarding Forex Profit Monster (and my day trading system Forex Day Monster), visit my website www.forexprofitmonster.com. To purchase either system (or both) at a discount, visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/.

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

Forex Profit Monster Results - February 2011

So far 2011 has been off to a very slow start, at least on the 4 Hour chart. There's been a lot of ranging, a lot of false breakouts, and a lot of world events that are lending a helping hand to the indecision in the markets. The good thing is that while February was another losing month, the loss was another small loss, this time of (-334) pips.

Many ask how I can continue to trade during times of loss. The answer is, if you're going to be a trader, you have to learn how to cope with losses. Losses in trading are a cost of doing business. The inability to cope with loss in trading is a serious psychological flaw. It's when the losing trader gives up on a profitable system and goes in search of the "Holy Grail". And this usually happens right before the trades that offset the losses and provide the new profits begin.

All trading systems have losses... the most important thing is that the system profits over time. And as you can see from the graph above, I'm well into profit since I started trading FPM live in 2007, and the current "drawdown" of just a few hundred pips can't really even be seen. Why would I give up on it now? This ranging can't go on forever... and the longer it does, the larger the breakouts and the longer the trends will be once they begin!

As of the writing of this post I have a few trades open and in profit, including one on the EUR/USD that has been open since mid February and is currently over 350 pips in profit. This means that even though the cash value of my account is in a drawdown, my equity is actually at a new high.


Here are the totals for February across the 8 currency pairs I trade on the 4 Hour chart:

29 total trades
9 wins: 847 pips
20 losses: 1,181 pips
Total: (-334) pips

Win rate: 31%
Avg win: 94 pips
Avg loss: 59 pips
Avg R/R: 1.59 to 1

Here are the results by currency pair:

GBP/JPY 2 W, 0 L +274
USD/CHF 2 W, 0 L +224
USD/JPY 2 W, 1 L +174
AUD/USD 2 W, 3 L (-69)
GBP/USD 1 W, 3 L (-153)
USD/CAD 0 W, 4 L (-184)
EUR/JPY 0 W, 5 L (-289)
EUR/USD 0 W, 4 L (-311)

Here are the results so far for 2011:

January (-35)
February (-334)

Total: (-369) or an average of (-184) pips per month.

Here's to great trading, and may the pips flow into your account!

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

Forex Profit Monster Results - January 2011

It's off to a slow start for 2011 as January was basically a "break even" month. While technically it was a loss, the loss for the entire month was only (-35) pips which is less than the spread on the trades taken since there were 31 trades in January. Any time I can finish the month in the negative and have that negative be less than the cost of placing the trades I don't really think of it as a losing month :-)

While January was basically a "flat" month, I have already closed out a couple of profitable trades of more than 100 pips each in February, and I also have over 350 pips of open equity as of the writing of this post, which makes February a positive month so far. It's too early at this point to know how the month will play out, but it's always nice to be in the positive!

Here are the results for January:

31 total trades

7 wins: 1,708 pips
24 losses: (-1,743) pips

Win rate of trades: 22.5%
Avg win: 244
Avg loss: 72
Avg risk/reward: 3.38 to 1

The results by currency pair:

EUR/USD 2 W, 0 L +566
EUR/JPY 1 W, 2 L +118
USD/CHF 1 W, 1 L +95
GBP/JPY 1 W, 3 L (-35)
USD/JPY 0 W, 3 L (-120)
USD/CAD 0 W, 5 L (-190)
AUD/USD 1 W, 5 L (-208)
GBP/USD 1 W, 5 L (-261)

For more information about Forex Profit Monster (and my day trading system Forex Day Monster), visit the website at www.forexprofitmonster.com. To purchase, click on "Purchase" on the website, or visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/ where I list one or two systems per week at a discount.

Thanks for checking out the January results, and best of luck in your trading!

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

Forex Profit Monster Results - December 2010 and Yearly Results for 2010

Even though I may be a week late by the time I got around to writing this post, let me wish you a Happy New Year!

The end of a year always provides the opportunity to look back over the past year (and sometimes even further) to evaluate things... and that's what I've been doing recently with my trading with FPM.

First conceived and developed by me in 2006 and first traded live in 2007, this system is now heading into its 5th year as my primary trading system. You can see from the graph above that I've had a lot of success with FPM since the start... and if you'd like you can read about my month to month experience and results by going back to the beginning of this blog which I started in January 2008, just a few months after I began trading with FPM. There are very few trading systems available with this type of transparency... no curve fit back tests... no "look at this one trade" screen shots... just my personal month to month results (winning and losing) for anyone to see and decide if they want to use FPM in their own trading.

The end of a year is also a very telling time for a trading system as yearly results are the industry standard for judging trading systems and money management firms. Monthly results are nice to follow, but with the changes in price cycles and trends anyone can get lucky for a month (or even a few months). There just isn't enough data in the few trades generated in a single month to give you a good idea of overall performance. However in 2010 I passed some milestones with FPM... not only did I surpass the industry benchmark of a full 3 year track record, but also surpassed 1,000 trades with FPM last year. (While 1,000 trades may not be a huge sample, remember this is LIVE FORWARD TRADING... not back testing. There's a world of difference between the two, and live forward trading trumps any kind of back testing... no matter how much data you use or how many trades you back test!) The report card for 2010 is in... and even though it wasn't my best year of trading with FPM... it was still a very profitable year! I'll get to those results for the year just after the December 2010 results:

32 trades
13 wins: 2,076 pips
19 losses: 1,489 pips
Total: +587 pips

40 % win rate
Avg win: 159 pips
Avg loss: 78 pips
Avg Risk/Reward: 2 to 1

Here are the results for December 2010 by currency pair:

USD/CHF 2 W, 0 L +493
AUD/USD 4 W, 1 L +337
GBP/JPY 1 W, 2 L +318
GBP/USD 1 W, 1 L +102
EUR/JPY 2 W, 1 L +97
USD/CAD 1 W, 3 L +57
USD/JPY 1 W, 5 L (-113)
EUR/USD 1 W, 6 L (-698)

Here are the results for the year 2010:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)
July (-185)
August +903
September (-1,737)
October +1,717
November +901
December +587

The win rate of months for the year 2010 was 66%

8 winning months for 10,631 pips
4 losing months for 4,238 pips

Total pips won: +6,393
Average: +532 pips per month

Here's a graph of yearly performance from 2007 to the end of 2010:


These results translated into a 37% increase in my account in 2010.

What will happen in 2011? No one knows... but I'm confident that after the results I've had with Forex Profit Monster over the past 4 years that if I follow the trading plan and manage my money properly (as instructed with the information that comes with FPM), I will continue to add to my profits in 2011 and beyond!

For more information about Forex Profit Monster (or my day trading system Forex Day Monster), visit the website at www.forexprofitmonster.com. To purchase, click on the "Purchase" tab in the menu at the top of the website, or visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/.

Thanks for reading and all the best to you, your family and friends in 2011!

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

Forex Profit Monster Results - November 2010

Another good month of trading with Forex Profit Monster comes to a close in November as I ended the month with a profit of 901 pips. That keeps me near the all-time high of my account balance (and pip total) as you can see in the graph above.

It was a relatively active month with 37 trades and only a couple of long trends coming to an end. A lot of currency pairs were ranging on the 4 Hour chart in November, but luckily the ranges were large enough that many of those trades closed out as small wins instead of small losses (as is usually the norm with ranging months). This also accounts for the 54% win rate of trades for the month... more winning trades, but the wins were for fewer pips than usual.

Here are the details for November:

37 trades

20 winning trades - 2,296 pips
17 losing trades - 1,395 pips
Total: +901 pips

54% win rate

Avg win: 114 pips
Avg loss: 82 pips
Avg R/R: 1.4 to 1

Here are the results by currency pair for the 8 pairs I trade on the 4 Hour chart:

EUR/USD 2W, 2L +502
USD/CHF 2W, 1L +209
AUD/USD 2W, 1L +187
GBP/JPY 4W, 0L +179
GBP/USD 3W, 4L +110
USD/CAD 3W, 2L (-1)
USD/JPY 2W, 3L (-13)
EUR/JPY 2W, 4L (-272)

Here are the results for 2010 so far:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)
July (-185)
August +903
September (-1,737)
October +1,717
November +901

Total: +5,806 pips
Average: +527 pips per month

Next month's results will bring us to the end of another year... and my 4th profitable year in a row trading with FPM!

To contact me or for more information regarding the Forex Profit Monster trading system (and my day trading system Forex Day Monster) visit my website at www.forexprofitmonster.com, or my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/.

I hope your trading was as profitable as mine in November and here's to adding to our pip total in December!

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

Forex Profit Monster Results - October 2010 - New Equity High!

The month of October's +1,717 pip profit was in the top 10 of monthly returns since I've started trading FPM live in the summer of 2007. It was a welcome month after the past few months where I've basically been treading water since May's 4,500+ pip win. While I'm still in a slight drawdown, I now have the chance to be at a new high in my account balance by the end of the year; because if you include 3 profitable trades from October that are still open as of this blog post, and 4 more profitable trades that I've opened in the first few days of November, I am at a new equity high!

Once again the lesson to be learned here is you must be persistent and disciplined in your trading. Even though my pip total for the year has always been positive, it wasn't easy to have a losing month 3 out of the last 4 months before the large winning month of October. If I had given up because of those losing months, I wouldn't have won the pips in October or opened the trades in early November that have me at a new equity high. Trading psychology is extremely important in your development as a trader! That's why information to help you learn about trading psychology is included in the material in the Forex Profit Monster trading system. The other thing to learn is to manage your money properly. Don't do stupid things like doubling down on your trades because you think you're due for a win. Stick to position sizes that are reasonable for your account size and learn to ride out your losing periods. You can't win at trading unless you learn to manage your money properly! Again, this is why I wrote an eBook on money management and include it with Forex Profit Monster (this information is also included with my day trading system Forex Day Monster).

Here are the results for October 2010:

31 trades taken

11 wins: 3,489 pips
20 losses: 1,772 pips

Total: +1,717 pips

35% win rate of trades
Avg win: 317
Avg loss: 88
Avg risk reward: 3.6 to 1

Details of results on the 8 pairs I trade on the 4 Hour chart:

USD/CHF 2 W, 0 L +514
EUR/USD 1 W, 4 L +470
EUR/JPY 1 W, 4 L +434
GBP/JPY 1 W, 1 L +212
USD/JPY 1 W, 2 L +158
AUD/USD 2 W, 4 L +116
USD/CAD 1 W, 2 L +17
GBP/USD 2 W, 3 L (-204)

Here are the results for 2010 so far:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)
July (-185)
August +903
September (-1,737)
October +1,717

Total: +4,905 pips
Average: +490 pips per month

That's it for this month... hope your October (and so far November) has been as profitable as mine!

For more information regarding the Forex Profit Monster trading system (and my day trading system Forex Day Monster) visit my website at www.forexprofitmonster.com, or my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/.

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

Forex Profit Monster September 2010 Results

It was a "good news/bad news" month for trading with Forex Profit Monster. The bad news first... on paper there was a loss for the month of (-1,737) pips across the 8 pairs I trade on the 4 Hour chart. However, once again this loss isn't what it seems and is just a factor of the time frame I use to post the results (each calendar month).

The reason I say this is, the good news is that in the first week of October I've closed trades that were opened in September (and remained open at the end of September) for a total profit of +2,226 pips, and as of writing this blog post I still have several trades open with a total equity profit of about +1,200 pips... and some of these open trades are still from September as well. By adding the extra week into the results I would have a +489 pip profit and the +1,200 pips of open equity instead of the loss I'm posting. This is why it's not always easy to post the results like this... but the only other alternative would be to post them quarterly or yearly... and unfortunately that wouldn't suit the intentions of this blog, which was to provide up to date information regarding my performance trading Forex Profit Monster to those who are considering using it themselves.

I have been very busy this past month answering emails I've received not only about FPM, but about the other things going on in the Forex market the past few weeks... namely the Japanese intervention and the CFTC rule change that will be limiting our leverage use in a few days. I'll comment on those subjects after I post the details for September:

27 trades on the 4 Hour chart

3 wins: 432 pips
24 losses: 2,169 pips
Total: (-1,737 pips)

12.5% win rate
Avg win: 144 pips
Avg loss: 90 pips
Avg R/R: 1.6 to 1

Breakdown by currency pair:

AUD/USD 0 W, 0 L : 0 pips (1 trade initiated, carried into October)
GBP/JPY 1 W, 1 L : (-137 pips)
EUR/USD 0 W, 3 L : (-150 pips)
USD/CHF 1 W, 3 L : (-154 pips)
EUR/JPY 0 W, 2 L : (-159 pips)
USD/JPY 0 W, 3 L : (-196 pips)
USD/CAD 1 W, 6 L : (-295 pips)
GBP/USD 0 W, 6 L : (-646 pips)

Here are the FPM results for 2010 so far:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)
July (-185)
August +903
September (-1,737)

Total: +3,188 pips
Average: +354 pips per month

OK, with the results out of the way for September, I wanted to take a minute to comment on some things that happened during the month and are set to happen in a few days. First up, the Japanese intervention on September 15th.

I received a lot of emails from people asking how I handled the situation as it's not something that comes up often and obviously there is no set rule in the trading system on how to handle it. I was lucky enough to be at my computer on the 15th checking my trades when prices started going crazy on the Yen pairs (this is a benefit of trading the 4 Hour chart over the Daily chart)... and having heard rumors about the Japanese government considering a currency intervention I figured it must have happened. A quick check of Google news and sure enough the Japanese were extremely busy flooding the market with Yen and buying up U.S. Dollars in an attempt to slow the growth of their currency which was at a 15 year high. The reason the Japanese are concerned about the value of their currency is they are extremely dependent upon a weaker currency to support their export based economy. Once the Yen gets too strong it wreaks havoc on their economy and they look for any way to reduce its strength... an "intervention" is usually their final solution, but they may not just do it once... if it doesn't work the first time (which it hasn't as the USD/JPY pair is now lower then it was when they intervened) they can do it again... although sooner or later it becomes counterproductive and the Bank of Japan decides it has already "wasted" enough Yen and bought enough USD.

As far as how I handled the situation... I had trades open on all of my Yen pairs (all shorts of course) and I closed them out immediately upon learning of the intervention. The reason I did this was something I learned after studying Ed Seykota years ago. Ed had some simple rules for his trend following trading, two of which were "Follow your rules without question" and "Know when to break your rules". Now most people would say these two rules contradict each other (as Jack Schwager pointed out to Ed in his "Market Wizards" interview), but they don't if you understand what Seykota means. As a trader you should always have the discipline to follow your rules, but when the conditions change so drastically like they did with the Japanese intervention, it's time to throw the rules out the window and get out of the market (especially if you have a profit and know that the result of the intervention will probably wipe that profit out, even if it's only for a short period of time). You can always re-enter the market later on when things settle down if you want to. I actually did this myself... just a couple of days later I took new trades on the USD/JPY, and the EUR/JPY, but decided to stay away from the GBP/JPY for a little while longer due to it being a pair with a much higher volatility. As the Japanese didn't do much else after the push of the initial intervention I picked up trading the GBP/JPY again at the start of October. I'll still be watching the Bank of Japan closely though as they may decide to intervene again as the price of the Yen is hitting new highs once again.

Now for the other subject that has had traders chattering for the past couple of weeks... the U.S. government's new regulations about leverage in the Forex market. There has been debate for quite some time now (oh, at least since Obama entered office) of lowering the leverage available for retail Forex traders like you and me. It used to be brokerages offered as much as 400:1 leverage, that was reduced to 200:1, 100:1, and now as of next week the most leverage you'll be able to use with a U.S. broker is 50:1. Now some people are happy because everyone thought the reduction might go to 10:1, but I don't think that's really the issue. The issue here is that once again the "nanny state" run by the current administration is deciding what's best for the lowest common denominator in our society. I was able to use my 200:1 leverage quite successfully for a few years... and I wouldn't have been able to build my trading business as fast as I did without it. I'm sorry if Joe Blow from East Bumfuque opens a trading account with high leverage, doesn't manage his money properly and then ends up quickly losing it all... that's his fault, not mine, not the brokers' and certainly not the government's. If Joe Blow doesn't understand how leverage affects his ability to trade then he deserves to lose his money... and then maybe he will learn how to manage it or learn that he has no business trading!

While I'm mad at the government for once again overreacting and making up a bunch of rules and regulations after the fact to make it look like they are responding to the "financial crisis" (btw Mr. Obama, it wasn't the small retail trader who caused any of this mess), the leverage change doesn't really affect me personally very much. It just means I may have to add a little bit of cash to my brokerage account to cover the increase in margin I need to keep on open trades, or I'll just have to reduce my positions slightly to keep my risk in line and to rectify the change in leverage rule. Either way it's easily fixed and won't affect my business model very much. The same should go for you... don't let a stupid rule change by the government stop you from enjoying one of the last frontiers of the business world where a single person can take a small amount of money and build it up into a profitable business in a relatively short period of time!

That's it for this month... if you'd like to contact me for more information on purchasing the Forex Profit Monster system (or my day trading system Forex Day Monster)... visit my website at www.forexprofitmonster.com, or my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/.

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

Forex Profit Monster Results - August 2010

I'm a little late posting the August results... I guess the Labor Day holiday snuck up on me! Well if the summer has to end, at least it ends on a good note... after 2 losing months in a row I finally saw some breakouts and nice trends from late July into August and ended up with a winning month of 903 pips.

Here are the details:

31 trades

11 wins: 2,514 pips
20 losses: 1,611 pips
Total: +903 pips

35% win rate
Avg win: 228 pips
Avg loss: 80 pips
Avg R/R: 2.85 to 1

Results by currency pair:

GBP/USD 2W, 1L +659
EUR/USD 2W, 0L +556
AUD/USD 2W, 2L +150
EUR/JPY 1W, 4L + 97
USD/CAD 2W, 2L + 83
USD/JPY 1W, 3L (- 89)
GBP/JPY 1W, 3L (- 94)
USD/CHF 0W, 5L (-459)

Here are the FPM results for 2010 so far:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)
July (-185)
August +903

Total: +4,925 pips
Average: 615 pips per month

For more information about Forex Profit Monster (or my day trading system Forex Day Monster) visit www.forexprofitmonster.com. To purchase either system, visit the "Purchase" tab in the menu at the top of www.forexprofitmonster.com, or visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/.

I hope your August was as profitable as mine... and here's to even more profit ahead as volume returns now that September is here!

Jim
www.forexprofitmonster.com

Forex Profit Monster Results - July 2010

Ah, the summer doldrums of trading. While I enjoy summertime and the warmer weather where I live, I don't enjoy the lack of volume in the markets. I feel like I'm wishing my life and favorite time of the year away, but as far as business is concerned I just can't wait for September to get here so that trading volumes can get back to "normal"!

I'm reminded of the summer trading doldrums by July's results. Not a bad month, but not a good month... just sort of a "month". Technically a losing month, but when those losses can almost be completely explained by the transaction costs of the trades, it really wasn't much of a loss. Plus, once again there were some significant moves on the 4 Hour chart toward the end of the month of July and I have over 2,000 pips of open equity profit across several trades while writing this post. Even with the volatility caused by the poor jobs numbers during the Non-Farm Payroll here in the U.S. today, most of those trades either remained largely unaffected or actually moved in my direction. Because of this I look forward to closing out these trades in the next couple of weeks to make August a profitable month.

Here are the results for July on the 4 Hour chart across the 8 pairs I trade:

31 trades

10 wins: 1,641 pips
21 losses: 1,826 pips

(-185 pips)

32% win rate
Avg win: 164 pips
Avg loss: 86 pips
Avg r/r: 1.9 to 1

Results by pair:

USD/CHF: 1 W, 3 L +812
USD/JPY: 2 W, 3 L +115
EUR/USD: 2 W, 0 L +69
USD/CAD: 2 W, 1 L +36
AUD/USD: 2 W, 1 L (-12)
EUR/JPY: 1 W, 3 L (-175)
GBP/USD: 0 W, 4 L (-351)
GBP/JPY: 0 W, 6 L (-679)

It seems that during the month of July I've reached another milestone in my trading career. If you look at the equity graph above, you'll notice that this is start of the 4th year of my results of trading with Forex Profit Monster. The funny thing is that during the past month since I've hit the mark of having an established and verifiable 3 year track record, I've been contacted by several entities regarding getting professionally involved with them. Some of these were brokers offering me the opportunity to become an "Introducing Broker" to other traders and handle transactions through them with a branded website, and others were small firms inquiring about my availability to trade other people's money.

While I can appreciate the opportunities that are now open to me after several years of trading, and I know that some traders would be excited to have the chance to expand their business with these opportunities, I really have no interest in getting involved with any of these scenarios. After reading the "horror" stories of other traders losing their freedom to trade as they see fit once they start to trade money for clients, I've decided not to follow this path, at least at this point in my life. I also have no interest in having to sell my current customers on using my services as a broker. I prefer to just keep trading my own account and offering my trading systems to those looking to learn how to trade a profitable method... these two things provide me with a nice living plus I get to keep total control of my business, which is important to me. I spent years looking for a business that I could run by myself without large overhead and having to deal with employees... I've achieved that in the past few years and am not really interested in changing it now. So I guess I'll chalk these experiences up to "it's flattering to be asked, but no thanks".

Speaking of "track records", here are the FPM results for 2010 so far:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)
July (-185)

Total: +4,022 pips
Average: 574 pips per month

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

To purchase either or both trading systems, visit www.forexprofitmonster.com or my eBay page at http://myworld.ebay.com/jimsgr8stuff4less.

Thanks for visiting the Forex Profit Monster results blog, and best of luck in your trading!

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

Forex Profit Monster Results - June 2010

As is expected after a large winning month like I had in May (+4,597 pips), there was a lot of ranging and many false breakouts across the 8 pairs I trade on the 4 Hour chart as price settled down in June. In the past I've considered taking a week or two off from trading after large winning months to avoid some of the losses that are almost guaranteed, but I don't... because part of being successful when trading a trend following method (like I do) is to take EVERY signal. While most times after large moves there is some ranging, sometimes the new trend is established very quickly on the very next signal. History shows this to be more true the higher the time frame you trade... you'll see it many times on the Daily chart (higher time frames = less noise). Missing these new trends because of adding a rule about NOT trading could end up making the system less profitable instead of more profitable! Once again there is a lesson here... to be a successful trader you must learn to accept your losses. As long as you know history shows you that your losses are smaller than your profits, there is no reason to get upset when you have a loss.

Even though the month of June was a losing month for me, there are still a few trades open from June that continued into July that show a profit in equity of almost as much as June's losing trades. As of this writing the USD/CHF is showing an open equity profit of over 1,000 pips alone! Continued moves in these trends means that I could see a new high in my account balance as early as the end of July.

Here are the results from June on the 4 Hour chart:

36 trades
10 wins: 1,087 pips
26 losses: 2,957 pips
Total: (-1,870 pips)

27% win rate
Avg win: 108 pips
Avg loss: 113 pips
Avg R/R: .95 to 1

And the details by currency pair:

EUR/JPY - 2W, 2L - (-4 pips)
USD/JPY - 1W, 2L - (-39 pips)
EUR/USD - 2W, 3L- (-81 pips)
GBP/USD - 1W, 2L - (-146 pips)
USD/CHF - 0W, 3L - (-213 pips)
USD/CAD - 1W, 3L - (-238 pips)
AUD/USD - 1W, 6L - (-563 pips)
GBP/JPY - 2W, 5L - (-586 pips)

Here are the results for the year 2010 so far:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597
June (-1,870)

Total: +4,207
Average: 701 pips per month

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

To purchase, visit the website or my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/

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 - May 2010

As you can see from the sharp rise in the equity graph above, May provided an excellent increase to my account! After what's been a relatively "sleepy" year so far, one of the dramatic price movements that I've been expecting to happen this year happened during May. It's important to understand that when trading this system (or any trend following system) you will go through periods where you have small wins, small losses and break even times. It may test your discipline to stick to trading during these times, but if you can do it you can reap the rewards in months like May.

If you are familiar with the concept of black swans (if not, you should read a copy of Nicolas Taleb's book "The Black Swan - The Impact of the Highly Improbable") then you're already familiar with how FPM generates profits. It basically provides small returns until an unexpected major market move (black swan) occurs. Most traders and investors are caught off guard during black swan events and end up losing a lot of money. FPM is designed to capitalize on these events, and May 2010 was one of those months.

I don't usually make predictions about the market (well, OK, I sometimes do, I just don't allow those predictions to influence my trading) but my personal feeling is that May isn't the only month like this we're going to see in 2010. With all of the economic problems in Europe continuing to grow, and the economic problems we continue to see here in the U.S., I'm reasonably sure there will be more "black swans" not too far away.

The other nice thing about FPM is that it doesn't rely solely on "black swans" for profits... when the day comes that we do see a real recovery and a new "bull" market, I'll be in a position to profit from those sustained trends as well!

OK, let's get to the details of the May 2010 results (from the 8 pairs I trade on the 4 Hour chart):

17 total trades

8 wins: 5,485 pips
9 losses: 888 pips

Total: +4,597 pips

47% win rate

Avg win: 685 pips
Avg loss: 98 pips
Avg R/R: 6.98 to 1

Results by pair:

GBP/JPY - 1 W, 1 L +1001
EUR/JPY - 1 W, 2 L +754
AUD/USD - 1 W, 1 L +695
GBP/USD - 1 W, 1 L +676
USD/CHF - 1 W, 0 L +635
EUR/USD - 1 W, 2 L +390
USD/CAD - 1 W, 1 L +229
USD/JPY - 1 W, 1 L +217

Here are the results for the year 2010 so far:

January: +823
February: +669
March: +434
April: (-446)
May: +4,597

Total: 6,077 pips
Avg: 1,215 pips per month


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

To purchase FPM or FDM visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less/

That's it for May... hope your month was as profitable as mine and here's to more pips in 2010!

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

Forex Profit Monster Results - April 2010

April started off looking great with over 1,700 pips of profit in equity... but quickly turned into one of those ranging months that whipsaws your open profits away. The month's total loss was only (-446 pips), once again a blip on the radar screen according to the big picture (look at the chart above... can you even see the drawdown?) In fact as I write this results post the market has been moving fast and furious again and every pair I trade has an open trade that is well into profit... well over 3,000 total pips right now. While I obviously won't count these pips as profit yet (you only have to look at April to understand why you can't do that), I feel good knowing that these trades are there to help me reach a new high in my account balance before the end of May.

During months like April I inevitably get questions about why I don't close out the trades when they're "overextended" and take the profits before they can retrace. It's simple... you're looking at the trades with hindsight. You know now that they retraced and set up in ranges that cost the open equity... but you didn't know that when it was the present time and you had to make the decision. It's just as likely that the moves could have continued in the same direction and instead of losing 446 pips in April I could have profited 4,000 pips! But if you exited the trades early before getting an exit signal you would have missed out on these pips. A similar situation is setting itself up for May as we speak... if I close out the 3,000+ pips I have now will I be better off than waiting to see if the moves continue? Maybe, maybe not... but I don't have to make this decision... I let my trading plan/system make it for me. This removes my emotional attachment to the "paper" equity money that I don't really have yet and allows me to make intelligent decisions regarding my trend following. When you start second guessing your trading plan is when you invite disaster. FPM has proven itself to be extremely reliable and resilient (again, look at the graph above of my account value in pips since I started tracking my live trading). Have a good plan (including good money management) and stick to it... and forget about your small losses... they don't do any damage to your trading... only your emotions about them do!

Here's a breakdown of my April results trading the 8 pairs I trade on the 4 Hour chart:

42 total trades
14 wins - 1,932 pips
28 losses - 2,378 pips

(-446 pips)

33% win rate

Avg win - 138 pips
Avg loss - 84 pips
Avg risk/reward ratio - 1.64 to 1

Here are the details by currency pair (best to worst):

USD/JPY: 2 W, 2 L +252 pips
GBP/JPY: 2 W, 4 L + 88 pips
USD/CHF: 3 W, 1 L + 34 pips
EUR/USD: 1 W, 3 L (-28 pips)
EUR/JPY: 2 W, 4 L (-160 pips)
AUD/USD: 1 W, 5 L (-199 pips)
USD/CAD: 1 W, 4 L (-214 pips)
GBP/USD: 2 W, 5 L (-219 pips)

That's it for April... if we don't see a repeat of all of this open equity vanishing I'll once again be at a new account high by the end of May!

Here are the results for the year so far:

January: +823
February: +669
March: +434
April: (-446)

Total: 1,480 pips
Avg: 370 pips per month

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

To purchase either system visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less.

Thanks for reading this and best of luck in your trading!

Jim

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

Forex Profit Monster - Results March 2010

March 2010 is officially in the "books", and was another winning month for Forex Profit Monster. As you can see from the total pip equity above, I'm once again at an all-time equity high... with a total of 43,803 pips won since I started tracking the live results in the summer of 2007.

Here are the results for March for the 8 pairs I trade on the 4 Hour chart:

38 total trades
11 wins - 2,485 pips
27 losses - 2,051 pips

Total pips: +434

29% win rate
Avg win: 225 pips
Avg loss: 75 pips
Avg Risk/Reward ratio: 3 to 1

Results by currency pair:

GBP/USD 2 W, 3 L +682
USD/CAD 2 W, 0 L +279
GBP/JPY 1 W, 5 L +210
AUD/USD 1 W, 2 L (-11)
USD/JPY 1 W, 4 L (-51)
EUR/JPY 1 W, 2 L (-76)
EUR/USD 2 W, 4 L (-262)
USD/CHF 1 W, 7 L (-337)

FPM was able to show a profit for the month even though the win/loss ratio for the trades was only 29%! Once again, having the discipline to stick to the trading system is just as important as the trading system itself.

It's also important to note that as I post this entry I'm sitting on about 1,700 pips of open profit on 5 trades. These trades were all opened toward the end of March and are providing a nice head start for April's profits :-)

Here are the results for the year so far as we've reached the end of the first quarter of 2010:

January: +823
February: +669
March: +434

Total: 1,926 pips
Avg: 642 pips per month

While I trade the 4 Hour chart, I want to take a moment to discuss trading the Daily chart with FPM. I get a lot of questions from traders wanting to know if FPM is only profitable on the 4 Hour time frame, and if that is why I concentrate on 4 Hour charts. The answer to this is... NO! FPM can be used on any currency pair and any time frame (although I do recommend using 1 Hour charts and above)... it's not "curve-fitted" for any particular currency pair or any time frame (again, look at the graph of the results above that spans across the past 3 years). I trade the 4 Hour chart because it suits my trading personality. If you need to trade a Daily chart because you work a full-time job and can't commit to trading a lower time frame or because you'd rather only spend a few minutes a day trading, FPM works just as well on a Daily chart. Of course you'll have to be more patient in waiting for trends to develop (you'll get fewer signals) and you'll also have to have the discipline to stay in a profitable trade longer, but the system works just as well on a Daily chart. Here's a Daily chart of the EUR/USD since January 2009:


The ability to profit from the Forex is there... with the proper trading system and the ability to stick to the rules you can be successful even if you only have a few minutes a day to devote to trading.

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

To purchase either of my trading systems please visit my eBay page: http://myworld.ebay.com/jimsgr8stuff4less/

Thanks, and best of luck in your trading!

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

Forex Profit Monster Results January '10

It's another winning month for FPM in January with a total win of 823 pips. The great news is that with the pips won this month (along with almost 900 more pips of profit across 4 trades still open as we've moved into February), I've erased the drawdown entered in November and am once again at a new equity high!

Here are the results for January on the 4 Hour chart across the 8 pairs I trade:

30 trades total

11 wins - 2,395 pips
19 losses - 1,572 pips

Total: +823 pips

37% win rate

Avg win: 217
Avg loss: 82
Avg R/R: 2.64 to 1

Here are the results for January by each currency pair:

EUR/JPY 2 wins, 2 losses: +654 pips
USD/CAD 2 wins, 1 loss: +339 pips
AUD/USD 1 win, 0 losses: +237 pips
EUR/USD 2 wins, 3 losses: +182 pips
USD/JPY 1 win, 4 losses: +128 pips
USD/CHF 1 win, 1 loss: (-50 pips)
GBP/USD 1 win, 4 losses: (-241 pips)
GBP/JPY 1 win, 4 losses: (-426 pips)

That's it for January... and with the winning trades still open it looks like a good start for the month of February.

For more information about Forex Profit Monster (and my day trading system Forex Day Monster) visit my website www.forexprofitmonster.com. To purchase either trading system visit my eBay page: http://myworld.ebay.com/jimsgr8stuff4less/

Best of luck in your trading!

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

FPM Results - December 2009 & Year 2009

Hard to believe it's time to post the FPM December results and the year end results for 2009!

First things first... yes, December was a "winning" month. I'll get to more details on that, but first I'd like to talk about what's been happening since I posted the November results.

Many people have been contacting me over the past couple of weeks asking how FPM is doing after having the "worst monthly results ever" in November. Most of these emails are from people who are genuinely interested in the system performance and how I'm personally doing in my trading because they are considering purchasing FPM, but some of them are from the "detractors" who like to come out of the woodwork every time I have a losing month (which by the way, isn't often). It's amazing to me that there are actually people in this world who get satisfaction out of what they perceive as the downfall of someone who is experiencing success. I guess it's due to their inability to achieve success in the first place and it makes them feel better to think that someone else isn't successful anymore either.

What these "detractors" don't realize is they're missing the point. One month's results doesn't make or break a good trading system. No one wins every month, and if this is what you think is necessary to be a successful trader you'll NEVER be a success. Winning more pips over time than you lose is what makes a successful Forex trader (and system), and a quick look at the equity graph at the top of this post and on the homepage of www.forexprofitmonster.com shows how successful FPM has been over the past two and a half years (actually more than 3 years since I started testing it).

The other point that everyone who refers to November as the "worst month ever" for FPM is missing is that the system has had losses of over 1400 pips in a month before. These types of draw downs are typical in a trend following system... it's just that this time the calendar month ended during one of these draw downs before the trends that supply the winning pips began.

This is evident if you change the time frame that you use in posting the results. By adding a week before and after the month of November into the results, we can reduce the loss by almost 50% to well under 1,000 pips. If we combine the months of September, October and November the results become positive... + 1,175 pips, or +391 pips per month on average. Do you see how the results can be manipulated by changing the time frame used? The only important thing is the end result... is the system profitable over the long haul? Again, look at the historical equity curve posted at the top of this post and the answer is clear.

This lesson also shows how important trading psychology and money management are to a trader. If you're unwilling to continue trading after suffering losses like I did in November, you will miss out on the profits that will negate the losses. And if you're not using proper money management you definitely won't be around to enjoy those profits because the money in your account will be gone by the time the trends start again. That's why it's so important that you read and understand the material supplied with Forex Profit Monster regarding those subjects.

Now on to the December results on the 4 Hour chart across the 8 currency pairs I trade, followed by the year end results for 2009:

December 2009

32 total trades
10 wins: 1,938 pips
22 losses: 1,536 pips
Total: +402 pips

Win rate: 31%

Avg win: 193 pips
Avg loss: 69 pips
Avg Risk/Reward: 2.79 to 1

Results by pair:

EUR/USD - 2 wins, 1 loss +461 pips
GBP/JPY - 2 wins, 4 losses +304 pips
GBP/USD - 2 wins, 2 losses +173 pips
AUD/USD- 1 win, 3 losses + 74 pips
USD/CHF- 1 win, 2 losses + 37 pips
USD/JPY - 0 wins, 2 losses (-197 pips)
USD/CAD - 2 wins, 5 losses (-222 pips)
EUR/JPY - 0 wins, 3 losses (-228 pips)

That's it for December... officially a 402 pip profit for the month, but since January has started I have closed out a couple of winning trades and have opened a few more that have moved well into profit... these trades show a current profit in equity of over 900 pips which is a good sign that January will end up as a profitable month as well.

Now for the final results for the year 2009 by month:

2009

January: 3,795 pips
February: 890 pips
March: 779 pips
April: 151 pips
May: 2,494 pips
June: 253 pips
July: 775 pips
August: (-230 pips)
September: 1,530 pips
October: 1,047 pips
November: (-1,402 pips)
December: 402 pips

10 winning months: 12,116 pips
2 losing months: 1,632 pips
Total profit: 10,484 pips

Win rate: 83%
Avg pips per month: 873 pips

These results translated into a 62% account increase for the year. While it's not the 300% achieved in 2008, it's certainly still an excellent year.

So there are the results... a good December and a good 2009. What will happen in 2010? As those of you who follow this blog know I don't allow any market predictions to influence my trading, but it's only human nature to wonder what will happen and to have an opinion. If I had to make one, I'd say that the U.S. Dollar is in a precarious position. The Fed will not be able to keep interest rates at or near zero through all of 2010... and this alone will cause some longer term trends to break out in the Forex this year as the monetary policy in the U.S. turns from focusing on boosting the economy to controlling inflation. Also, if the U.S. employment doesn't experience some real growth (as opposed to the "fake" growth being propped up and falsely reported by the Obama administration) the U.S. Dollar could be in for even more large moves. Hang onto your hats... it's going to be an interesting year in the U.S. financial markets.

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 (or both) systems, visit my eBay page at http://myworld.ebay.com/jimsgr8stuff4less

Whatever happens in 2010 I wish you and your family a healthy, happy and profitable New Year!

Jim

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

Forex Profit Monster - November Results

November was a tough month for trend trading the Forex. Almost every pair was in a range and there were a lot of false breakouts. It's times like these that test your discipline. Having losses and months like these isn't the problem... it's not taking your losses until they become bigger then they should or getting upset/mad and letting it affect your trading decisions. It took me a long time to learn this... and it's still hard to control after several years of trading. However, time is on my side... there will always be good trends (especially in the currency market) and a quick glance at the equity chart above that spans over two years shows the power of trading this system. If I just showed you the graph you probably wouldn't even notice the drawdown that I entered into at the end of November... that's because in the grand scheme of things it's just a blip on the radar screen.

The other thing to note is that even though November ended up being a losing month, I did close out several trades in the first few days of December that accounted for enough pips to wipe out almost 50% of the draw down already! Plus, I have some good trades that I've opened over the last couple of days that look like they may take care of the rest. I don't know what will happen the rest of December (especially because it will be shortened by the holidays) but I am confident that my equity will be hitting new highs very soon.

Here are the details of my November results trading the 4 Hour chart:

38 trades taken
12 wins - 896 pips
26 losses - 2,298 pips

Total - (-1402 pips)

Win rate - 31%

Avg win - 74 pips
Avg loss - 88 pips

And the results by each pair that I trade:

USD/JPY - 1 win, 1 loss - +176 pips
AUD/USD- 1 win, 3 losses - + 2 pips
EUR/JPY- 2 wins, 2 losses- (-1 pip)
EUR/USD- 1 win, 4 losses- (-180 pips)
USD/CHF- 2 wins, 4 losses- (-218 pips)
GBP/USD- 3 wins, 4 losses- (-290 pips)
GBP/JPY- 0 wins, 4 losses- (-442 pips)
USD/CAD- 2 wins, 4 losses- (-449 pips)

So there goes November... and I can't say I'm sorry to see it go :-)

For those of you having a hard time dealing with your whipsaw losses for November and doubting the effectiveness of this system (or any trend following method), here's a video that sums everything up you need to know and should put a smile on your face. It's by one of the most successful trend followers of all time (and a pretty good banjo player too); Ed Seykota and "The Whipsaw Song":


Here's the overall monthly totals for the year so far:

January - 3,795 pips
February - 890 pips
March - 779 pips
April - 151 pips
May - 2,494 pips
June - 253 pips
July - 775 pips
August - (-230 pips)
September - 1,530 pips
October - 1,047 pips
November - (-1,402 pips)

That's a total of 10,082 pips so far for 2009, an average of 916 pips per month.

For more information about the Forex Profit Monster system (or 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